Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-25
BY 7. A. FLEMING.


the banks of the city are aiding the
home builders OF the National Capt.
tai in the same manner as are the
building and loan associations.
They are making loans as request
ed, with monthly payments. when de.
sired. and applying part Of the same
to the account of interest and credit
ing the balance to principal.
While engaged in the preparation
of the revenue bill, which will be
acted upon at the present session of
Congress. the ways and means com
mittee heard with considerable inter
est a plea from Rome G.. Stephenson.
official spokesman OF the A. Il. A.. in
an effort to have the $500 exemption
extended I'm the income tax law to
beneficiaries Of building and loan asso-
Citations also extended SO as to be
applicable to savings of bank de.
poSitOrS.
This exemption was granted to
building and loan associations in the
tax measure OF 1921, at which time
there was a shortage in housing facili.
ties and 1t was expected that this
exemption might aid in the general
work OF relief, particularly in the
construction Of small homes.
At that time the exemption was
considered only temporary, but 1t
was continued in the acts Of 1923 and
1924.
Building and Loan.
Mr.. Stephenson enlightened the
members of the committee on present
methods Of doing business by build.
ing and loan societies. calling atten-
ton to the fact that they. too. We're
conducted for profit. in part. paying
5 or per cent and the surplus going
into a fund for those who have money
in the associations. These surplus
funds accumulate Just as surplus
funds in mutual savings banks do and
they belong to the depositors and
stockholders.
1t was asserted that the rates
charged by the banks for the loan
accommodations were less than by
building and loan societies, being esti-
mated at 6 to per cent as against
S TO 10 per cent.
G. Clinton James. chairman Federal
legislative committee OF the United
States League of Building and Loan
Societies. stated that they were per-
feCtly willing that the savings deposit
tors should have like exemption. but
opposed any taking away of their ex.
emption. we think 1t Is serving the
purpose Congress intended that II
should: 92.4 per cent of all money Is
loaned on homes" Mr.. James admit.
ted that the associations were accept
ing money, just as are banks, for de.
post. and their funds are likewise
used in similar way as banks de-
posits. in investments as made by
banks and trust companies.
AS 1t stands the exemption relates
that the first $500 interest or dividends
from building and loan associations
shall he exempt from income tax.
alton.
Howard Moran. vice president OF the
American Security & Trust Co. is vice
president of the committee that pre-.
scented the matter TO the attention OF
the ways and means committee. In
their anxiety to retain the exemption
the building and loan people confer nd.
ed that there should be no discrimi.
nation between depositors in hanks
and trust companies in favor OF build.
ing and loan associations"
Installment Business O. X.
Investigation has developed the fact.
which most OF us believed anyway.
that there Is no threat OF disaster in
the installment plan OF doing business
now so general throughout the United
States.
Installment facilities raise the level
OF living conditions greatly. Thay they
do so is appreciated by the beneficial.
ries OF this method of acquisition.
Payments are generally we'll main.
tanned save where the desire to sell
has strained the credit OF the buyer.
and where the same desire has caused
Abandonment Of tho usual care con.
nected with merchandising.
Building and loan associations are
making II nightly interesting for
banks in the high rate OF interest they
are paying for deposits. and the banks
also have the competition OF so-cailed
Morris plan banks. which charge much
more than average bank rates on &C.
commodations. repayable weekly and
monthly.
Title II Simplifed.
The Continental National Bank 4
Trust co. OF Chicago Is now the
full title OF the former consolidated
company. including az 1t does the Con.
tinental National Bank. Commercial
National Bank. the Bankers Trust
Co. the American Trust 4 Saw
inIs Bank and one or two other
minor institutions. The present CAPT.
tai or the company Is $3a 900. 900. sur
plus $40. 900 900 with undivided profits
Of more than $3.o00.00o. Resources
are $500 900. 900.
1t would seem an II the dream OF
John Black. who was succeeded by the
elder Reynolds az president Of the
bank, a friend OF =. ID. Armour and
other financiers OF olden days In
Chicago. has been realized. Mr..
Black dreamed and worked for that
end and Mr.. Reynolds completed the
dream and made II come true.
Local Securities.
II has been great year for local
securities and for the local Stock Elk.
change. with prices steadily advancing
but with none OF the rush that has at.
tended the security movement on Wall
Street. There can be no such thing as
speculation on tho local market; II Is
too narrow. A short seller would he
brought up with II quick halt unable
i HOW is I