Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-06-16
BANK INQUIRIES
I ON TAX NUMEROUS
Local Institutions Are Re-
ceiving Queries From Many
Sections of u. S.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Banks all over the country are show
ing intense interest in the best methods
Of collecting the new 2-cent revenue
tax on all checks and drafts, which
gees INTO effect next Tuesday. Tele-
grams asking how the tax is to be col
lected have been received by the Riggs
National Bank from banks as far away
as Portland, Greg. and San Antonio.
Tex. Other local banks have received
many inquiries from institutions out
side of Washington, with which they
have dealings.
Phe impression prevails that banks in
the Capital ere so close to the Treasury
that they have a lot of inside inforn1a-
ton on any new move taken by the
Government But the mechanical
handling of the new tax on bank
checks had been left by the Treasury
to- the individual banks. No instruc-
lions relative to the vast amount OF
bookkeeping involved have been issued
by the Government. although the forms
for the payment Of the new revenue
tax on checks have been issued by the
Bureau of Internal Revenue and for
warded TO collectors throughout the
country for their use in gathering in
this far-reaching levy. Further regula-
lions as to how the law will be adj
nlinistered are expected soon.
Tax to Be Paid by DepOsitOrs.
The revenue departments forms,
however, state that the tax is to be
paid by the maker or drawer of the
check. draft or money order. The tax
will be collected by the person or bank
or institution paying any of the in
struments taxable, and the person or
bank shall collect the amount of the
tax imposed under such subsection by
charging such amount against any de-
posts to the credit of the maker or
drawer of such instrument, and shall
on or before the last day of each month
make return, under oath. for the
preceding month, and pay such taxes to
the collector of the district In which
his principal place of business Is located,
or. if he has no principal place Of bust
ness in the United States, to the COL
lector at Baltimore. Md"
So far as the bookkeeping end of the
check tax is concerned, the District
Bankers Association has an opportunity
to gain national reputation. The an
nual convention came just at the right
time for very thorough discussion of
the best ways Of recording the tax. as
well IS the most economical. The mat
ter was discussed pro and con. The
leading bank auditors gave their views.
Bank presidents and other officials had
a word or two to say. 1t was then
decided that a special meeting should
be called in Washington which could
be attended by all the members Of the
association, in addition to those at the
convention.
That meeting is tomorrow afternoon.
It is expected that a uniform plan for
handling the tax on checks and also on
vii No oI tnd at
that time. Such a plan will then be
available to banks in other parts OF
the country if they wish to adopt it.
It is not expected here that the num-
Der of checks drawn by depositors will be
materially reduced. 1t is far more con-
venient to pay two-cent tax and pay
gas bill with a check. than to take
the cash to the Office The time saved
is worth far more than the tax. Any
quantity Of other bills will be paid in
the same way, just as they have been
for years
All the depositor has to remember Is
to keep proper tax rotations in his
check book stubs so his accounts will
balance with the bank statements. He
has to pay the tax on every check, the
only exceptions being counter blanks
which use the wording receipt" instead
VI pay W llIC o4uS4 OA
- Advertising Aids Lofts Sales.
Loft. Inc. increased its investment in
Newspaper advertising during the month
Of May by II per cent compared with
1881, resulting in an increase in
customers Of 296,635. 10 per cent.
Loft served 1.314.975 more customers
during the first five months of 1882
than for the same period Of l93l-an
increase Of SO per cent.
Lott sales for May 1882 totaled
1890 844 76-an increase Of 3 per cent.
Loft sales for the first five months
OF 1882 totaled s5,894 ,46047-an in
crease of 8 per cent.
Today's Trading on Exchange.
Washington Gas IS. series A. sold in
$500, $1,000 denomination on the local
stock exchange today at 99l4 Wash
ington Gas Light IS, series B, led the
days trading, five $1,000 bonds chang
ing hands at par.
Capital Traction again sold. eX divi
dend, at 10. on turnover Of only 10
shares, Washington Railway & Electric
came ont at II on sales of five 10
share lots.
The stocks on the local board are
now being quoted eX-dividend, Emer-
sons Bromo Settler, Mergenthaler Lin
OIS pe Gllu SdJItdI lIdGIlOlI. DtNtl d.
local banks are expected to declare the
usual quarterly dividends in few DAYS.
"A delegation from the exchange at
tended the funeral of l.. I. Thompson,
held this forenoon. Mr. Thompson had
been member Of the local exchange
Tor many years, his death causing deep
regret among his associates.
Other Financial District Notes.
niroptprc nf In;O ~
have declared the regular 2 per cent
quarterly dividend. payable July Is, to
stockholders of record June 30.
Maj. julius I. Peyser chairman of the
board OF directors of the Security Saw
lngs e. Commercial Bank, took part in
the Flag day parade, marching with
about $50 of his former comrades.
Among them were II ex-soldiers who
We're given Congressional Medals during
the war for conspicuous service
II. H. Mckee, president of the Ma
tional Capital Bank, was paid a bril-
liant tribute by the District Bankers
Association at Hot Springs for his most
able service as chairman of the Wash
ington Clearing House Association.
Francis G.. Addison, jr, head of the as
islation. was also among those specially
commended for extra hard work.
Wilmer J. Waller, vice president of
the Federal-American National Bank &
Trust Co.. attained distinction not at
tanned by any other banker at the Hot
Springs convention The special train
stepped to take him aboard at Alex
andr and paused to let him off on
the return trip. His friendship with
Passenger Agent James B. Edmunds
may have had something to do with
the engineers kindness.
Frank S. Hight, manager of the Will
lard Hotel. attended the bankers con-
vention again this year. He has not
missed one of these gatherings for a
long time, attending as director in one
of the local banks rather than as hotel
man.