Evening star., 1923-02-01
MEMBERS WARNED
OF TAX EXEMPTION
Building and Loan Associa'
ton Provision Sent to 50,-
600 Local People.

Special notices have been sent TO
the $4,000 members of the oulfdlns
and loan associations of the Distr1ct
Of Columbia by c. Clinton James,
nresident of the Building and Loan
Association Council. calling attention
TO the following provisions in the IN
come tax law:
Section 213. paragraph 10, which
reads: so much of the amount re-
ceived by an individual, after Decem-
ber 81, 1921, and before January /.
1927, as dividends or interest from
domestic building and loan associa-
tions. operated exclusively for the
purpose of making loans to members
as does not exceed $500"
Mr.. James STATES that this has been
made necessary because the individ-
ual inc1ne tax blanks issued by the
internal revenue bureau for 1s22
make no reference to the exception.
He advises that in making the return
the taxpayer give the name and loca-
lion of the association that is paying
the dividend or interest, as the in
ternal revenue bureau will want this
information.
Meaning of Ruling.
This exception means that 5000 of
dividend or interest paid by build
ang and loan association to an invest
3ng member is deducted from his
gross income for each year during
the years 1922 to 1926, both inclusive.
The only associations to which this
exception may not apply are those
associations which make loans 10
members. MIR. James, IN his no.
tice. states that there are no s9ch
associations in the District of Co
lumbia: that the investors in all local
associations are entitled to the ex-
Ception
As the internal revenue bureau sent
out questionnaires TO all the asso-
Citations III the country during 1921
and has the information in its Of
fees, whether associations are max
ing loans TO members or non-mem-
bers, it will facilitate matters. ac-
cording to Mr.. James, if the tax
payer claiming exemption gives the
name Of the association from which
he receives interest or dividend.
Local Bank C1earings.
new high peak was reached in
Washington bank clearings during
the month of January, when the total
amount passing through local asso-
J4,GS o,
cordinG to announcement made last
night by Clearing House Manager
Bright of the National Metropolitan
Bank. The previous high mark was
recorded last December, when clear
ing amounted to s91 .550330.
This gain In clearings OF approx
mately s3,000,Go0 during the month is
construed by local financial men as a
fitting portrayal of the betterment in
District money circles. 1t shows. ac-
i
tions are costing less, with a slight
increase in wages. 1t is all the more
striking, they claim, on account of
the fact that December. the previous
high water mark, is normally the
period when heaviest expenditures
fall on account of Christmas
clearings in January "a year ago
amounted to s57,27s.3s2, while in
November of last year they totaled
SS5,S96,042.
Washington People Lose.
About thirty-fve washingtonfans
were included in the lis: - tTnsn to
hold stock in the Community Finance
Company, which filed voluntary pc
tition in bankruptcy, at Baltimore
yesterday.
This is the second largest Of the
Baltimore blind ponIs' 10 20 into
bankruptcy. Washington people, the
Better Business Bureau here esti-
mates, spend more than s3.OOO.0o0 a
year in blind pools and wildcat
stocks. A recent failure in Baltimore
cost local investors more than S75.-
600, while the total amount placed in
the company that went under yes
terday is estimated to he about $4,000
Nothing will be known as to what
creditors will realize until a referee is
named and inventory made of the assets
OF the concern.
According to the annual report of the
Capital Traction Company sent to
Congress yesterday the company paid
IS stockholders dividends amounting to
$4,000 and placed S264,991.39 in its
surplus fund.
Total receipts from operation were
f5.028.950,33 of which amount s4.-
?p7.905.21 was for passengers carried
On the District of Columbia and $oS,-
S5o.9! for passengers carried in
Maryland. Total operating expenses
were reported as sS,923.95S.94. maxi
tnE the net. income $1.1O4,991.39.
The number of revenue passengers
carried by the company during the
scar was 70.S86,927; pay transfer pas
Scngers, 2,637,145, and free transfer
passengers. 1S,1S2,507. Free rides to
employees numbered SS3.S35 and to po-
licemen and firemen 82,4S6. The to-
tal number of passengers of all
classes was 92,672.91e.
The report stated that during the
2ear I63 persons were injured on
1nes or in the employ of the COM
1ioyes. Ninety-two persons fell while
boarding standing cars and eighty
1'Ve fell inside of cars Thirty were
hurt in collisions between cars
twenty were cut by broken glass and
fwenty-one fell from loading plat
forms while awaiting cars.
Dictaphone Corporation.
Following the purchase by a group
hf New York bankers of the dicta-
phone department Of the Columbia
Graphophone Company, it has been
decided to name the new organization
ihe Dictaphone Corporation, accord
ing to announcement made today
The new corporation will manufac-
ture and sell dictaphones, dictaphone
supplies and render service in all the
principal cities of the country, while
3llans for same are to be arranged in
tanada and European countries The
local office is in the Munsey building.
snd is in charge of Miss G.. Ravens
croft.
Development of this new corpora
1ion has come about through the en-
ergies Of Richard N, swartout of
Swartout & Appenzeilar Of New
York. In addition to assumino ~ a