Evening star., 1933-12-29
SERVICE CHARGES
OF BANKS STUDIED
N. R. A. Administrator Terms
Proposed Checking Account
levies "Suicide."
BY the Associated Press.

BY the Associated Press.
Discussing plans of New York banks
to impose heavy service charges on
| checking accounts under the new
bankers code. Hugh S. johnson today
indicated to newspaper men he would
give these proposals careful scrutiny
before approving them.
II the banks want to commit suicide"
Johnson replied to a suggestion that
the New York proposals appeared ex-
cessive, mo one is going to worry very
, much about it."
he said, however, his chief interest
was Tor the protection of the public
Black Welcomes Discussion.
| Shortly after johnson EXPRESSED
himself on bank code regulations, the
Recovery Administration made public
a statement from Gov. Eugene Black
| OF the Federal Reserve Board repeat
ing the N. r. A. Endorsement of uni
form banking practice rules in each
local area.
Il am glad" said Blacks statement.
that due publicity is being given to
! the real attitude of both the banks
and the N. r. A. in connection with
proposed uniform fair trade practices
| O1lOCl Lie DdukeTS cOCe.
/ The banks voluntarily entered into
| that code agreement. The N. r. A. ap-
| proved the agreement and purposes.
All parties have in mind and included
in the code the desire to aid in the
| matter of employment wages and serv-
| Ice, all as contemplated in the pur-
| poses of the N. R. A
The rules Of banking based on that
| code required certain service charges
in the interest Of sound banking. These
service charges were not new in the
banking world and were necessary for
the success of the banks and the sue
| cessful operation OF the code agree
ment Of those banks"
At the same time, the N R A. chief
said w. H. Davis, national compliance
| director, had informed him that charges
| lodged by William Green against Henry
| Ford alleging code violation. we're not
| wholly supported by the affidavitS pre-
| sented and required more original proof
! before the Government could 90 ahead
with any prosecution.
Johnson said the additional proof
would be sought
The administrator also said he was
rather shocked" by new charge made
| by Green, president Of the American
| Federation of Labor that unemploy-
] III NONcIlDtI 1lCTedSGQ Oul OF
| seasonal proportion and that the
| responsibility lay with employers who
have been back-sliding on their pledges
OF supporting Unemployment.
Several Codes Delayed
Other N. r. A developments included:
| The construction code, on the PreSi-
dents desk since before Christmas, Will
not be signed until after the first Of the
| year because of labor requests for op-
portunity 10 present new data.
The newspaper and printing codes
also may be delayed some time because
the Chief Executive is showed under by
Congress business.
George L. Berry, president of the
| Pressmen's Union has definitely accept
| ed Johnson's offer of place as division
! administrator, one OF the six highest
in the N. R. A, taking on duties which
so far have not been entrusted to any
labor man
johnson said. however. Berry would
have to give up membership on the
National Labor Board.
johnson announced he would try to
stick to a policy of only one Govern
ment representative on each code au-
thority and pointed out that he had re-
| ceived demands from six separate
groups for Government places supervls-
ing industry. He did not believe any
special interest, whether labor. farmer,
consumer or reform organization
should have posts backed by Govern
ment authority in relation TO any il
dustrial group
The N R. A head also told news men
he regarded the situation on the alu-
| minum code materially changed by a re-
cent court decision in Connecticut. IN
| which a jury found the Aluminium Co.
OF America was not a monopoly.
Demands OF Minority.
A small minority of the industry had
been demanding that the code specifi-
cally recognize the existence of a mo-
nopoly for the purpose of guaranteeing
an equal price to independent manufac-
turers and the subsidiaries Of the Mel
lon dominated concern.
| The bank situation discussed turns
upon the code which, although ap
proved many weeks ago, goes into ef-
feet January 2.
Yesterday the N. R. A. gave its con-
sent to broad proposals for uniform
regulation of banking practices recon-
mended by the American Bankers As
| sociation.
However. under the code each local
clearing house association has author-
ity to fix service charges, banking
hours and interest rates on uniform
basis. subject to approval of the code
authority and the administrator.
The New York banks decided upon
a scale of service charges considerably
higher than those generally prevailing.
| They have not yet obtained approval
either from the code authority or from
| the