Evening star., 1922-11-16
GET CASH0NN0TES;
SAVINGS BANKS WIN
Metropolitan Trust Dis
tributes Railway Pur-
chase Money.
BY L A. FLEMING.

w aSnlnGtOn railway anu EIeCeAAS
common stock from the noteholders
protective committee. paid for it. and
q large amount of the good cash In
American dollars reached Washing
ton by the second mail this morn
ing.
The Commercial National Bank de.
posted with the Metropolitan Trust
Company of New York $S5,000 in dis
honored notes. and paid 2 per cent
assessment for expenses In connec-
ton with foreclosures. etc.
This morning they received a New
York draft for $101.2O6.41.
II you care to figure S per cent In
terest for three years eight months
and three days 1t will disclose the
price paid for the stock. $61.50 q
share. including the assessment for
expense account.
Some other banks received their
drafts and others will probably arrive
during the day.
There Is more speculation and ru-
NOR on the street as to ownership
of the 1850 shares now than ever,
and one may suit himself in select
local interests with the equal chances
of being right or wrong.
Persistent rumors of local buyers
are met with just as persistent de-
mails and assertions of outside in
terests as the purchasing syndicate.
One rumor coming from Baltimore
was to the effect that an agent of
the Fidelity Trust. representing Penn
Power Company of Philadelphia, will
hereafter vote the stock, and brought
the admission that this company's rep
resentative was too late. as stated be-
fore. and wanted to bid in case OF
failure to consummate the trade that
has now been closed.
1t is a great thing for the banks Of
Washington and for Washingtonians
900 to 100000 of these dishonored
notes to be able to recover the loss
sustained to the last cent.
What will the buyers do? This is
another question that is answered.
with the assurance that the stock will
soon be paying a dividend. and If the
Potomac suit Is won there will be a
large distribution.
What jolt it would be to aspira-
tions if the Supreme Court would or
who have paid the ten-cent rate for
current. 1t would be surprising and
jolting. but then surprises have been
sprung before. also jolts.
The directors Of the Washington
meeting in Philadelphia yesterday.
This company is believed to be in
bad" on par with the Washington
Utilities Company.
The directors considered a bid Of
mon stock of the Washington Railway
Company. the said stock being up as
collateral. on proposition that did
not require immediate sale. and the
directors turned down the bid. They
hope to do better.
Savings Banks Win Contention.
The following letter to one Of the
leading savings banks Is self-ex-
planatory.
1t is a backdown from the proposed
taxing plans of Mr. Richards, by which
savings banks would be taxed per
cent on gross earnings instead of 4
per cent. with the amount of interest
paid to depositors deducted before
computing. gross earnings:
The board Of personal tax ap-
praisers, after having considered all
the facts adduced at a hearing grant,
ed the committee from the incoTporat-
ed savings banks OF the District Of
Columbia on Saturday. November II,
1922. are of the opinion that no change
should be made under existing law in
the rate under which the above men,
toned class of banks have been taxed
and it was. therefore. decided that in
corporated savings banks within the
District of Columbia shall be taxed
for the fiscal year 1923 on their gross
earnings, less interest paid to depoS-
itors, at the rate of per cent per an
mum, according to existing law"
Suggest New Tax Plan.
Commissioner Rudolph recommended
that the tax rates on banks be adjust
ed as follows:
National banks-six per cent on
earnings from commercial business
and per cent on earnings from saw
ings accounts. after deducting inter-
a q mi RI - oNvt
Savings Bank Rate.
Savings banks-Five per cent on
earnings from commercial business
ings accounts. after deducting inter-
est paid savings depositors.
Under existing law the national
banks pay per cent on their gross
| the savings banks pay 4 per cent
after allowing for interest paid saw
inss depositors.
Hearing Week Ago.
A belief among the assessors Of the
District that these rates should be
more eQuitably balanced led to a
hearing before the board of apprais-
tions submitted to the Commissioner
are q result OF that hearing.
Any change In these rates Of inter-
est requires action by Congress. The
Commissioners plan to study the
question carefully before sending
their views to Congress.
Commissioner Suggests Compromise.
The action of the assessors in ap-
plying the law as it stands on the
statutes for taxation is given credit
for fairness, and will lead to the ac-
ceptance of the compromise measure
more gracefully in the event that 1t
is recommended to Congress:
National banks would welcome the
compromise. as they now pay per
cent on gross incomes without deduc-
ton; trust companies likewise. while
both pay large interest annually to
savings depositors, which they have
not been able to deduct from gross
earnings.
The assessors. having sustained
the law, will probably not reverse
themselves in the future.
Personal Mention.
Col. Wade H. Cooper. president Of
the Continental Trust Company, and
the United States Savings Company.
has returned from Tennessee, where he
and numerous other republicans took
part in the defeat of Gov. Taylor
through failure to pay their poll taxes
sixty days before election. Democrats
did not forget. They voted.
Local Securities.
Perhaps after all the facts in con-
nection with the sale of the 27.50e
shares Of Railway common are re-
leased there may be q return to nor
NAL activity on the local exchange.
Pending these disclosures stocks are
the next thing to neglected.
Small sales were reported at 63A
for Railway common, 56 for Washing
ton Gas and 79A for Lanston.
GAS PLANT AUCTI0NED OFF.