The Washington herald., 1922-12-06
FRANK P. Hartman, JR.
TO NOTIFY D. c. BANK
OF HIS RETIREMENT
Today to Tender Resignation,
Effective January Trust
Companies to Fight.
BY CHAs. r. sHAEFFER.

Frank p. Harman, 1r., popular
young treasurer of the Merchants
Bank and Trust Company, will to-
day tender his resignation. effective
on January 1. at the regular meet
ing OF the board Of directors OF that
institution, It became known last
night.
Mr.. Harman has been affiliated
with the Merchants for the past
three years, filling the position OF
cashier while the bank functioned
solely an n savings Institution. Since
Incorporation Of the trust company
about q year ago, he has filled his
present capacity. He is recognized
as one Of the ablest Of the younser
banking generation here. and his
wide acouaintance and capable ad-
ministration Of his office has won
for the bank much of the prestige
1t enjoys.
While Mr.. Harman is reticent IN
discussing his future connections, u
10 understood he would be welcomed
with open arms by several WASH
inEton banking institutions. He ao-
nnits that he will undoubtedly re-
main in the city's banking field
A successor to Mr.. Harman has
not as vet been discussed, but 1t Is
believed that Mr.. Popkins. a thor
oughly capable young official, Will
act in his stead. at least Temporarily.
PLANS FIGHT.
Immediate steps will be taken by
the Trust Company Division OF the
American Bankers ASSOCIATION TO
institute suit IN a test case with u
view of obtaining an amendment 10
Section 226 (cJ of the Revenue ACT
of 1921, John b. Larner. president
Of the Washington Loan and Trust
Company, and member of the COM
mittee on legislation of the Trust
Company Division of the American
Bankers Association, announced
yesterday.
The issue under fire is the recent
action of the Treasury Department
In refusing to reverse its formal
ruling requiring estates OF dece-
dents to compute taxes on income
OF a decedent for the period prior
TO death and of the estate for the
period after death on an annual
basis This matter is held OF very
serious concern to all institutions
acting in a fiduciary capacity.
At a joint meeting. attended by
officers of the Trust Company
Division of the American Bankers
Association. and of the Corporate
Fiduciaries Association of New York
city, il was decided that a test
suit should be instituted. Careful
consideration is now being given
looking toward the starting of pro-
ceedings in these directions. 1t
was the consensus of opinion of
those attending this meeting that
few returns for the year 1921 have
been made in accordance with the
Treasury Department interpreta-
ton.
CAUTION is GIVEN.
Members Of the division have been
cautioned to give careful considers-
tion to steps which they should take
in the protection of clients and
themselves. Certain trust -compan-
les which have not flied returns on
the annual basis are preparing
amended returns TO be filed, paying
the tax in full on or before Decem-
Der Is, 1922, the last quarterly pay
ment date. II returns are being
made on an annual basis under the
Treasury Department ruling and
the full amount of taxes paid. the
division is urging all members to ac-
company the payment by a protest.
II returns are not filed on the basis
of the Interpretation members are
urged to protect themselves agains,
claims for additional payments after
the final settlement of estates.
While the Trust Company Division
has been actively engaged in endeav-
orinz to obtain a reversal of this
ruling. II now seems that there Is
very little. II any. hope of obtaining
relief by action of the Treasury De-
partment. according to high trust