Evening star., 1933-12-30
JOHNSON CANCELS
SERVICE CHARGES
IN BANKERS CODE
Deputy Administration 0uSted
After False Announcement
of Pact Approval.
CLEARING HOUSES GIVEN
EXTENSION OF TIME
Proposals Suspended Increased
Levies on Accounts and Put
Checks on Meter System.
BY the Associated Press.

By the Associated Press.
Banks in every corner of the Nation
were under sudden N r. A orders to-
day to withhold projected schedules de-
signed to sharply increase bank charges
to customers.
While the Capital speculated upon the
final outcome of the swift move by
Hugh S. johnson in canceling the in
creased levies. the recovery admins
traitor himself added only silence to his
order that the charges be suspended
indefinitely and Immediately" or at
least until he had approved them.
The first action came last night as
the result OF what was Officially de-
scribed as a most unusual 'misurIder-
standing" johnson lost little time after
learning that proposed uniform higher
schedule under the N. r. A BANKERS
code had been circulated by the code
authority among all clearing house as
sociations with the notation that John
son had approved them.
The N. r. A. chief declared inme-
oiately to newspaper men that he had
not approved the schedules; In fact. had
not even seen them.
simultaneously he summarily dis
missed Cary N. WeiSiger. jr., deputy
administrator in charge Of the banking
code, who was said to have been in
strumental in a public announcement
that Johnson had approved the bank
ing code authority plans.
Higher Levies Inclusive.
Although the proposed higher sched-
ule circulated among the clearing
house associations was not made public,
it was understood to approximate
method" system by which customers
would pay more for virtually all bank
services.
In addition to uniform service
charges on all small checking accounts,
it was said to include levies Of so much
per check above a certain number OF
checks, charges for each deposit slip
and each item on the slip and mini
mum charge Of 10 cents for cashng
checks presented by non-depositors;
johnson said in a brief public state
ment accompanying his order last night
that he intended to give "a careful
scrutiny In the public interest" to every
schedule of charges submitted by loca
or regional clearing house associations.
The associations were given an eXten-
sion until February to submit them.
Apparently because of delays among
the various associations, which pre-
yiously had been given until January
l to submit schedules, the banking
code authority had compiled a stand
ard set of charges.
Under the original plan, each clear
ing house association was to have
arranged its own fair practice" rules,
with adequate charges to prevent ac-
counts being carried at loss. These
rules were to have been submitted to
johnson for approval before going into
effect. Under JohnsonS order last
night, all schedules thus far submitted
will be held up.
Suspended Indefinitely"
Weisiger, formerly with Goldman
Sachs, New York and Chicago invest
ment house, was informed of his dis
missal as soon as johnson realized what
had occurred and had dispatched tele-
grams to the secretary Of the code
authority, and to Ronald Ransom of
Atlanta, executive vice president OF
the American Bankers Association, or
dering that every one who had re-
ceived the standard rules be imme-
diately requested to prevent their going
into effect and stating:
"These (the rules) will be suspended
Indefinitely and Immediately until spe-
cifically approved by myself in person"
In his separate public statement.
johnson pledged careful scrutiny in
the public interest for every schedule
of charges submitted by local or re-
gional clearing house association. Un-
til February /, at least, he said, the
public will not have to pay any higher
service charges than are now in force.
Just how the misunderstanding to
which officials aScribed the incident
had come about no one would explain.
The code, as approved october 3, pro-
vided that local clearing house asso-
Citations should establish uniform rules
of fair practice for their territory. these
@ t aeeo qpet befne eard 10 at feis
The rules were to be reported Within
50 days and could not 80 into enec'
without Johnsons approval
The time for submitting the schedules
was extended to January l and ap
parently because of inconsistencies or
delays among the various associations,
the code authority complied a standard
set of charges. They were not given to
the press, but distributed, under a
caption stating administration approval
of them, to the clearing house units,
approximately $50 of them. Text of the
SO.called standard rules" has not been
made public, but roughly it corresponds
to the high charges announced Thurs
day by New York banks.
Little Leeway Allowed.
Provisions in the circular purported
to make the standard rules effective the
first of the year unless other schedules
had been approved in the meantime
and little leeway was allowed in fixing