Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-09-19
DAWES WILL MOVE
TO CLOSE BRANCH.
Mount Rainier Bank Lacks
Permit to Operate Here.
Only Agency, Say Officers.
BY CHAs. p. sHAEFFER.

Controller of the Currency Dawes
will take action late today lending to
the closing of the local branch OF the
First National Bank of Mount Rainier.
Md, discovered" to be doing bust
ness in the Investment Building, Fiji
teenth and X streets northwest, this
morning.
This action was promised by an Of
hcial of Mr.. Dawes Office this morn
ing when apprised of the discovery.
Bank Called an Agency.
Despite the pointed provisions of
the Millspaugh act, which regulates
banking in the District of Columbia,
and the requirements of the National
banking act, the rural institution has
invaded the confines of the District
| without the slightest regard for re-
quirements No request for permits
| sion to open what is termed IAN
agency" was made to Mr.. Dawes
office here, nor were the state bank
! ing authorities of Maryland COMMIT
nicated with, according to a repre-
sentative of the bank.
The banks position here is that Of an
| agency, the representative said, because
| the president of the bank, who is also
| contractor. established his Office in the
| Investment Building. and the cashing Of
| checks, acceptance of deposits, etc, has
| been merely subsidiary. The funds so
| accepted have been subsequently trans
| ferred to the parent institution each
! night. thus erasing its standing as a
branch of the First National Bank Of
Mount Rainier. it was explained
Controllers Views Differ.
| The Office of the controller. however,
| entertains different views on the sub
| ject. They term it a branch under
even the most liberal Interpretation OF
/ the law, and declare its maintenance is
! utterly illegal, and hostile to various
banking acts.
| Offenders of the Millspaugh act are
| subject to a fine of not more than
$1,000 or Imprisonment not exceed
| ing one year or by both fine and i'm
prisonment in the discretion of the
| court. Aside from the closing of the
| agency" no indica tons were given
at the controllers office as to subse-
Quent action.
| The Millspaugh act follows. APP
proved April 26, 1922, as follows:
Text of Millspaugh Act.
BE it enacted by the Senate and
| House of Representatives of the
| United States of. America in Congress
assembled. That no corporation that
| is not now engaged in the business of
| banking in the District of Columbia
shall, after the passage of this act, be
permitted to enter upon said business
| in the said District. nor shall any
corporation now or hereafter engaged
| in the business of banking be per
mitted to establish branch banks in
| said District, until after it shall have
secured the approval and consent of
| the controller of the currency. and
| each one of the offenders of such cor
poration so offending shall be punish
| ed by a fine not exceeding $1,000 or
| Imprisonment not exceeding one year,
or by both fine and Imprisonment, In
| the discretion of the court"
| r. Z. Milor is president of the in
stitution. 1t was organized about a
| year ago, but statistics s to Its
| resources are lacking
Traction Shares Active.
Trading on the Washington Stock
Exchange today was centered about
Capital Traction and Washington
Railway preferred stock.
The former was uneasy at 91A to
9l12. a total of 100 shares changing
hands. while Railway preferred was
| firm at 20, 1873 shares being sold
Fifteen shares of Liberty National
| Bank sold at 155 and 156 and ten
| shares of Departmental Bank brought
! 10. National Mortgage and Invest
ment preferred eased off to 8 on i
sale of but 10 shares.
| Bonds were again listless.
Returns from Vacation.
| William j. Boothe of Crane, Par
ris & Co. has returned from Blue
| Ridge Summit, with renewed
strength and vigor."