Evening star., 1932-01-30
CREDIT UNION BILL
DELAYED IN SENATE:
AS BANKS OBJECT.
Condemnation and Claims
Measures Approved by
District Committee.
COOPERATIVE SOCIETIES
DEFENDED BY CAPPER
F. G. Addison, Jr., Declares Plan
Would Set Up Unfair Competi-
ton in Finance.

The Senate District Committee de-
ferred action on the Capper credit un-
ion bill until next week, after spokes
men for the District of Columbia Bank
erS' Association laid before the COM
mittee yesterday a number of objec-
tions they have to the bill in its pres
ent form.
The committee ordered favorable re-
ports on several other bills. including:
A measure to give the District Govern
ment the same power now enjoyed by
the Federal Government to obtain I'M
mediate possession OF property penang
condemnation proceedings, by deposit
ing in court the estimated fair value
and settling any difference at the end
of the proceedings. bill authorizing
Federal and District officials to enter
into mutual agreements for the trans
fer of property from one to the other,
subject to the approval Of the Park and
Planning Commission. and a bill to al
low the Commissioners to settle small
claims up to $500.
Before Group for Year.
The credit union bill, which went over
until next week. would authorize the in
corporation of cooperative societies for
making small loans to members, and
has been before the committee from
time to time for more than a year.
Speaking for the bankers association.
F G. Addison. jr.. told the committee
the bill in its present form would allow
the credit unions to compete with the
savings departments of the banks,
which should not be done unless the
present banks be given the same tax eX-
empt.OnS and other privileges that the
new competing institutions would be
given
Chairman Capper disagreed with the
witness as to the effect Of establishing
credit unions, and said he had always
felt it would encourage the habit of
SAVING Senator Gore of Oklahoma
said he had understood the credit un-
ions would be utilized by persons who
90 not ordinarily bank their money
and these organizations would tend to
"attraCt money out of hiding The
measure also was defended by Assistant
Corporation Counsel Roberts. who sug-
geStcd several notifications that had
been discussed at a previous meeting.
The bill also was Endorsed BY Evan H,
Tucker president of the Northeast Citi-
zenS' Association.
Raps Blue Sky Artists
While defending the credit union
idea, Senator Cappcr declared it has
been his observation that this town
has been full of blue sky artists who
prey on the class of people who would
benefit from the formation of credit
unions.
Mr.. Addison brought out that the
system Of taxing banks in Washington
results in a burden far heavier than is
paid by banks generally throughout the
country and cited the taX-eXempt fea-
lures of the credit union bill as one of
the principal features of the plan that
would be unfair to the banks.
MI Addison also said IF credit
unions are to be organized, some re-
StIictionS should be put upon them, so
they could accept payments on the
stock Of the union, but not be per-
mItted to accept deposits from their
members
No corporation Mr. Addison con-
tinued. should hereafter be permitted
to enter into the business of receiving
deposits except as now permitted un-
der the MillSpaugh act. which gives
sole discretion of determining whether
permission should be given, to the con-
troller Of the currency"
In StrcsSIng the unusual tax burden
which is imposed on banks in Wash
iuCtOn. Nh Addison gave figures for
1929 showing that for the country gen.
eraly bank taxes averaged $50 per
$50 or gross earnings, while the aver
E~2 n Washington that year was $3.50.
n. Addison said no State has a bank
"a" @E5tem similar to that in Wash
ngtCn.