Evening star., 1925-07-07
SERVICE CHARGES
TO Be DISCUSSED
UnprofitabIe Bank Accounts
Will Receive Airing at Next
Business Meeting.
BY CHAs. p. SHAEFFER.


The moot question of unprofita bic
bank accounts and satisfactory
method of combating their canCerous
growth is scheduled for thorough
airing at the next business meeting
of the District of Columbia Bankers
Association, this Autumn.
II is hardly TO be expected the bank
ers of the CITY will be asked to enter
into any concerted action in remedy
ing the situation. Francis G.. Addison
jr., new president of the associa tion,
and, incidentally. one of the best men
ever named to the office, is expected
to plan an educational campaign
among the banks of the city. support
ed by hard, cold statistics, ending with
the suggestion that every bank act in
dividually in the interests of both par
ties concerned.
The question of service cha rges in
the District has never reached a stag
of uniformity or unanimity. Some
maintain them, while others do not
The amounts exacted, moreover, vary
from so cents to 81 month.
AT the 1924 convention of the Dis
trict Bankers Association, ANALYSIS
of bank deposits was submitted by W
j. Waller, which proved conclusively
| that some remedial measure was nee
esSary to compensate the banks which
act only in the capacity of bookkesper
In this analysis p reporting institu-
tions show that so per cent of Their
accounts averaged but slightly more
! than S29. These accounts were NOT
only carried without profit. but actu-
| ally It a loss.
Separate Action Urged.
Mr.. Addison. after giving much con
siderat1on 10 the matter. behaves that
| individual action Is the only satisfa
| tory solution. He does not propose To
! lay his association open to charges
| that the ma iority is ruling the mi
! norltN. or vice versa. or that the
! powerful institutions are debating the
policies to be followed by the wea ker
Instead, he simply proposes to sketch
| the advantages Of one. outline the
evils OF the other and let the banks
decide for themselves
| Banks and trust companies Of ST.
! Louis, on July l. established service
charge of 81 per month on all check
! ing accounts which average below
5000, There are 60 banks and trust
companies in the agreement, emlnac-
/ ing members and associate members
| in the st. Louis Clearing House As
sociation. and 80 other banking insti-
tutions in the city. The action fol
lows careful cost surveys made by
! individual banks and trust companies
which disclose that in many ca ses
more than so per cent Of small active
accounts have been carried at loss.
! In establishing the new rule the
customers whose accounts are affected
will be advised Of the reasons and
! justification for a service charge. The
! general feeling is that the new rule
/ will be enforced with little If any loss
/ IF deposits.
/ Trading on local Exchange.
! Stock of the Washington Loan and
/ Trust Company rose TO now level on
the local board this morning. scoring
. a net gain Of IL points 70 I'll on sales
of so shares
/ Aside from this conspicuous move
1 ment. the session was dull. although
; prices maintained Il firm tone. Ian
ston was traded in at s.. and Mergen.
! thaler rose fractionsllv TO Fs1. on
the DAYS sales. Capital Traction
stock. after opening at 1o0ss. eased off
! tc par on sales of 56 shares. National
/ Mortgage and Investment preferred
/ brought 91e
The bond list was neglected. 81. .OOO
District Paper 6s AT So, Traction 5s at
! 80 and Potomac Electric consolidated
! IS at par and an eighth, representing
the only activity.
Bank Votes Dividend.
The Washington Savings Bank has
| declared its initial dividend at the rata
! of 2 per cent for the half year endea
June 80.
Organized in 1917. its resources on
June so amounted TO SS40, ,679 "A.
! Thomas E. FARRELL heads the institu.
| ton, with ]. d. Leonard. vice presi-
I dent and cashier.
Branch Office Opened Here.
f
| the New York, Philadelphia and Pitts.
1 burSh Stock EXcha nges, today opened
/ a branch office here in the Transpor-
| tation Building. A general inveSt
| ment business viii he conducted.
Leon Shore, well known in Wash
! ington bond offices. has charge of the
| branch.