Evening star., 1933-12-06
DEPOS|TORS TOPAy
NEW SERVICE FEES|
Code Provides for Charges
to Offset Losses After
January |.
BY EDWARD c. STONE.

0ldtSS are BOlIlS W NC CdACd uPoA w
pay new service charges for services
now rendered at loss by banks when
the permanent bankers code of fair
practices goes into effect on January /.
The temporary N. R. A. code, which
has been in effect in the banks in
Washington and everywhere else since
October 16, covers working hours, wages
and host of other matters, but does
not include uniform regulations on serv-
ice charges. The new rules will differ
somewhat in different sections of the
country and in each locality will be ad-
ministered by local clearing house asso-
Citations.
So far as the Capital is concerned.
the new code will be administered by
the Washington Clearing House Asso-
citation, of which H. H. Mckee, presi-
dent of the National Capital Bank, is
chairman. All banks will, of course.
have to abide by the same rules. What
the new charges will be are now being
worked out and will be announced
shortly.
The service charge when balances get
below certain required amount will be
continued. In connection with small
accounts, where an extra large number
Of checks are drawn, some ADDED charge
will probably be made. These accounts
have been operated at loss for years,
which is obviously unfair as well as un-
businesslike.
Banks which have made no charges
Tor collections, overdrafts and many
Hther services, which have been finan-
oial drain en- the institutions, expect to
urn these losses into a profit, or at
n O 70
The N. R. A. bank code has boosted the
cost of operating banks and this is one
~eason why bankers are checking up an
he improbable side of the business at
his time.
Checking Accounts Analyzed.
Bankers say the public has little idea
what it costs to operate a bank sue
'eSSfully. The average depositor thinks
his account brings in about 10 times
IS much money in year as it really
does. For example, perhaps he deposits
5000 month or S2,400 year At
Der cent that would mean S144. But
banks don't get over per cent these
lays. That would be S96 on the So, 400.
Statistics show, however, that a de-
oositor usually draws out most of his
money a few days after he deposits it
lside for reserves and has no earning
lower.
The average depositor of 5000 a month
;arries an average balance of a little
)ver Sl00 month to avoid the service
;harge. Interest on S100 for one year
It per cent is 81. For one month it
slightly over 33 cents, not such a very
arge return when it is analyzed.
The American Bankers Association
nd special bankers committees have
given every detail of the bankers code
# fair practices most careful study.
The new code will be fair to the banks
nd equally fair to the public. 1t is
xpected to go into effect at the same
ime that the new deposit insurance
Ian starts.
Southern Railways Revenues Up.
After brief lapse recently. during
7hich period Southern Railway systems
evenueS fell below a year ago, latest
cures show resumption of the up
rend, with revenues again ahead of
932. Many consider this a significant
evelopment, says the Wall Street
ournal, for Southern Railway was one
t the first roads to emerge from the
lw point of the business depression in
932
Southern roads generally have been
laking comparatively good showing.
n fact. the South and West have been
onsiderably ahead of the rest of the
ountry for some time, as an analysis
I retail trade figures will show
The improved purchasing power of
he farmers has been greatly in evil
,ence in that part of the country.
Bank Matters Before Congress.
According to information obtained
)day, it is quite probable that the So
allied Mapes bills will come before
congress again this Winter. These
ills, so far as they relate to bank tax
ton, are of special interest to the Dis
.1ct of Columbia Bankers Association
I they do come up again at the next
ession, they will be followed very close
' by the Taxation Committee of the
5sociation, of which Francis G. Addi-
On, jr., president of the Security Saw
lgs g. Commercial Bank, has long
cen chairman.
Up to the present time it has not
cen indicated that very much legisla-
ION will be proposed which will have
pecial bearing or interest to the local
anks. However. in general way the
anks here and the District Bankers
association will be keenly interested
n any national financial legislation
which may be proposed
1t Is generally understood that
rhanges will be urged in the banking
act of 1888. So far as the bankers are
oncerned, their interests in this law
will be looked after by the Law and
legislation Committee of the American
Bankers Association. Robert v. Flem-
ing, president of the Riggs National
Bank and second vice president of the
A. B. A, is the chairman of this i'm
oortant committee.
Trading on d. C. Exchange.
Trading on the Washington Stock
transactions in bonds Washington Gas
IS. 1860, started off with 81 900. selling
at 103, followed by four more $1,000
sales at 1895.
The rest of the days business was
IN stocks. Potomac Electric 512 per
cent preferred moved at 10412. A single
share of Lanston Monotype came out
at IS
Mergenthaler Linotype opened with
; small lot moving at 22l2. 1t then
iropped to %, but closed at 221a. The
days sales totaled 43 shares. There
vas no trading today in Capital Trac-
ION, the STOCK closing with 1874 DID and
Is asked.
Considerable interest is manifested
lere in recent dividends voted by New
York banks. Central Hanover Bank g.
Trust Co. declared usual extra divi-
dend of ST and regular quarterly divi-
dend of Sl.50, both payable January 2
TO stock of record December 90
Manufacturers Trust Co. has re-
sumed dividends on its capital stock
by the declaration of a quarterly pay
gent of 25 cents. payable on January
to stock of record December 15 The
last payment by the company was so
cents on January /. 1888.
Continental Bank & Trust Co. has
declared the regular quarterly dividend
of 20 cents, payable January to stock
Of record December Is.
Other Financial Notes.
J. G. Penney Co. has declared the
regular quarterly dividends of 80 cents