The Washington times., 1926-07-01
To SEEK
NE W TAX PLAN
q RlCMARD HATTON

BY RICHARD HATT0N
That banks have for some con-
eiderabIe time believed there was
anlorS just plan Of, taxation than
that under which they have been
PLACID is no new story in financial
circles.
10 tho present time. however,
there seems to have been no con-
certsd move to overcome the ex-
isfinx evil. Now. according to
Thornton Cooke, chairman of The
committee. on State taxation sof The
American Bankers ASSOCIATE ton, there
appears to be movement uT1tier
way which may widen to the point
where q new ordaL of taxation may
be brought about.
when Massachusetts, in 1925.
and New York, this year, passes
laws to put the taxation of their
banks on an income basis says
Mr.. Cooke, they began a move
f5ent that is likely to spread over
most of the country Many bankers
association. IN States wEers b4ntSs
are now taxed dispFopoT tionatelg'
have set about gathering ntornaa-
ton with a view to prpeuEing II.
come tax legislation in their Owl
States.
aThe revenue of great majority
nf the States is still raised by the
general property tax, under which
most intangible personal property
such as stocks and bonds, is I'M
disclosed and escapes taxation al
fSkefher For wears there has also
been complaint of Discrimination
aeaiflst banks in the further l'ar.
ffonlar that. while the tax rates
In most States have been the same
on all classes OF property, bank
capital has been assessed on mucn
higher basis than real estate. mere
Is, therefore, widespread sense OF
injustice that Is not good for the
banks or the people.
The general property tax, penal.
Ting as lit does. the provision OF
barge capital. and the accumulation
OF surplus, has kept bank capitaIlza-
ton down. and so cannot have falled
TO have been one cause OF the multi.
ftde of bank failure,
Locking for an escape from sucn
chaos. bankers, and other business
men are considering the income tax,
or course. state income taxation -
new only in that until last year
no State had applied It to both State
and national banks. /"
; - a
President Peter A.. Drury. Of the
Merchants Bank and Trust E.oElas-
bany. has returned from st1urf
vacation spent at his country place.
Elnenaont. -
PRESIDENT George o. watson, Of
the Liberty National Bank, has re-
turned to his desk after q few
dsys spent at his country home.
~. ~ a.
Mpnsey Trust Company. plans 70
Be- away on vacation most Oh
July. -.ess =
o. the Central savings Bank: has
Isff for a months visit to henne-
hunkport, Ne
II Vas stated. by prominent
washington banker today that the
gvffhdrawals OF deposits in no way
sesacts fbe moral obligation OF an
I1diyiduaf declaring the; amount OF
rsaisl1 on hand In figuring an income
-. Nothing is gained by the
iySdiyfduai In lowering his bank de-
nosit before making out an income
ssatemert. The Government must
6enend upon individual honesty
SShefher the cash be in "a bank
s. hidden away somewhere else.
nohert n. Harper. president of
Vrashinxtoh Auditorium corpora
zion has sent out notices to the
ktockhoiders, giving them the first
or,nortIuity to subscribe for the
NV $3.50 900 second mortgage per
esnt bond issue recently voted.
VsiiI be recalled that the lssue
Il TO meet the increased cost OF
tfis building and to provide neces-
sary Improvements.
Following the withdrawa1 O
szsorge Hewitt Myers and z. =.
ssn al e. from the firm of Crane.
Paris and Co.. announcement mas
been made OF the formatlon ol
new general partnership TO conoucl
trsra business under the name or
E. Booker & Co. The. partners
rs the new organization, which VIII
hr,en,.for business July 1b, at 1903 n
81. n. w, are Mr.. Myers and Mr.:
Booker. both longtime residents OF
Washington. Associated with them
a office manager and cashier VIII
besHarry W. Finney, formerly man.
frer Of the bond department OF
crane. Paris & Co.
The Seventh Street Savings Bank
Is sending out its dividend checks
PAYABLE today. The dividend Is a
teIni-annual distribution of per
cent making the banks YEARLY dig
bursen1ents on IL per cent basis.
The board of directors Of the.
Mortgage Bond and Guaranty
CORPORATION. of which Fernand Petit
Is general manager. has declared its
fifth. seni-annual divident OF per
cent on preferred stock payable to
stockholders of record June 20 and
payabae July 10. This is on 4, the
basis OF 8 >sper cent per annuTn.
Arrangements for the issuance OF
guaranteed first mortgage collateral
trust bonds have now been fully
consumated. with the Riggs Ma,
tfonal Bank to act AS trustee, the
bonds TO be guaranteed as to
a. a