Evening star., 1923-12-07
BANKERS AROUSED
BY TAXATION PLAN
proposal of District Heads
to Change Present Rules"
Causes WIDE Comment. -,

The local banking world was all
abuzz this morning over the recon,.
mendation Of the District Commits
siohers OF Dill to equalize the taxa
! ton on banks in Washington. which
was submitted TO Senator Ball yes
terday. Sentiment was equally di-
Vided, with each class of institution
quite naturally. supporting the meas
ure by which 1t would best benefit
Under existing law savings banks
are taxed only per cent on gross
earnings. less interest paid to depos-
itors, while other institutions pay a
per cent assessment on gross earn
ings. without exemption clauses. Tne
new recommendation provides that on
and after July l. 1924. all national
oanks and all other incorporated
banks and all savings banks and trust
companies sfall pay per cent on
thelr gross earnings, less the interest
paid TO depoSitOrs
National banks are unanimously in
favor OF the new bill. They, repre-
sentative banker said this morning.
ieeL that the term Savings bank"
a mlsnomer, as there is not q bona
noe savings institution where nothin11
put a savings business is carried Oh
O.. y.
are an actual competitor of the naf
t!onal bank, doing practically every
class OF business the national insti-
tttion Is permitted, and for this rea-
son, If for no other, should be placed
In the same tax class.
Savings banks are gradually en-
croaching upon the commercial bust
ness of national banks and are now
DOING business. according TO fguresI
IN possession OF the tax assessor. oN
hfty-hfty savings-commercia busiSs
ness one national banker conciseljs
summed UP the situation.
The savings banks, of which thern
are twenty-seven. contend that
alarmingly large losses would be SUI
fered by them If the proposed legisa
lation goes through. A spokesnaI&
Tor these institutions, in outlining the
history of the i per cent taxation in
cepted in 1904, declared that al that
time the attitude of the District Com
missioners was that savings institu-'
lions were handling small accounts
from the poorer classes Of people and
as such deserved consideration. He
then proceeded to point out that the
situation had not changed since that
time. and to change the legislation
now existing would be TO change the
position OF the tax assessors Office as
we'll
If the proposed change in legislation
proves foreruner to fight between
the various classes of banks here in
the District 1t will provide nothing
new in District annals. In November
a year ago series nf hitter en-
counters were waged at the District
building, when II was proposed to
equalize bank taxation by an increas-
ed assessment to per cent on saw
tngs banks. with the elimination of
all exemption clauses. The issue was
finally decided in favor OF the saw
ings institution. resulting in an un-
changed rate when their representa-
tives convinced the tax assessors Of
fee that such change would result
in irreparable losses.
While believing that they were
being subjected to unjust taxation.
the national banking institutions, in
the meantime. did not agitate the
question. holding that such agitation
would probably react in the nature
of an additional levy
Well versed banking authorities
predict a concerted action by both
classes involved when the proposed
bill is presented to Congress.
Will Name Officers.
The Credit Class of Washington
Chapter. American Institute of Bank
ing, will nominate class officers at
its meeting tonight. This is the first
year that the local chapter has con
Quoted such a course, which has
naturally delayed the organization
Of the class. Elections will probably
follow the nominations.
Exchange Trading Dull.
Listiess trading again held sway on
the Washington Stock Exchange today.
Capital Traction stock was off
slightly TO 9s. twenty shares selling al
| this figure. and Washington Gas was
unchanged at 4S1a, as was Mergen-
thaler at 1874 and 1927. One share
| OF Riggs National Bank sold at 29i.
The bond department was compara-
lively active, with trading confined
to utilities. Pepco consolidated 5s
brought S714 and Capital Traction 5s
sold at 81 II. their prevailing level.
Gas 6S brought l00A, with the IS of
the company unchanged at 93A.