Evening star., 1934-05-12
SERVICE CHARGES
TO Be REVIEWED
D. c. Banks Much Interested
in Coming Hearings
of N. r. A.
BY EDWARD c. STONE.

charges on checking accounts are to
be given hearing by the N R. A. in
the near future, in order to establish
policy with reference to such
charges for all banks of the country
Following presentation of an unofficial
scale of suggested charges by the At
lanta Clearing House Association and
the Georgia Bankers Association,
N. R. A. officials plan to hold hearings
in Atlanta before the end of this
month.
While Washington banks have had
their own service charges on check
ing accounts for some years, both
bankers and depositors here are deeply
interested in the hearings at Atlanta.
Should any marked changes in service
charges be ordered for the whole
country. present payments here might
be revamped by the Washington
Clearing House Association. The
service charges have been among the
most vital points considered by code
leaders.
N. r. A. officials contend that no
set of charges will be approved that
does not embody sound banking
practices" already in effect in various
regions. The Georgia proposals were
selected by N. r. A. as a fair sample
on which to base the first hearing
1t Is anticipated that fewer than
dozen hearings will be held. Under
present plans, the remainder of the
some $50 sets of charges that are to
be approved under the banking code
will be brought into line with the key
proposals approved. Each will be
passed on only after Waiting period
during which objections will be re-
ceived.
Proposed Service Charges.
The proposed Atlanta schedule calls
for a monthly service charge OF 81 on
each account with a balance of less
than S1O0 On such accounts, Is free
checks would be allowed charge of
3 cents each being made on all
checks written over that number.
On account of from S1OO to $199,
no base charge would be made, but
3 cents would be charged on each
check, unless the total for any month
amounted to less than IS cents, in
which case the charge would be
waived.
On balances of from 5000 to s299,
eight free checks would be allowed,
with 3 cents charged on each over
that total, and total charges OF is
cents or less waived.
For accounts of $500 or more,
formula is outlined for determining
carrying costs. Accounts of sl00 or
more would fall in this classification
in the case of banks not belonging to
the Clearing House Association.
The schedule also carries section
exempting from charges the accounts
of the United States, the State OF
Georgia, municipalities, churches,
charitable organizations and court
funds.
The schedule for the State, submit
ted by the Georgia Bankers Associa-
ton, according to the Wall Street
Journal, would place a base charge OF
SO cents a month on accounts of $50
or less. On accounts of from $50 to
$500, one free check would be allowed
for each $40 balance in excess OF $50.
Additional checks written would I"
charged for at a rate of 3 cents each,
with a minimum of so cents monthly.
Loan Insurance Planned.
Federal insurance of building and
loan association deposits. similar to
the present bank deposit guarantee
law, has been proposed in Washington
during the past week by admlnlStra-
ton officials. 1t is reported that a
bill may be presented in Congress
shortly.
Along this line a statement in the
last issue of Rand McNally Bankers
Magazine is of interest. After calling
attention to the fact that building
and loan associations are not members
of the Federal Deposit Insurance Cor
poration, the magazine says that tine
obligations of building and loan asso-
Citations to their customers are not de-
posit liabilities. They are stock, or
shareholder liabilities; hence, they are
not eligible for bank deposit insur-
ance"
It Is held doubtful if there is time
to work out bill and get it passed
during the present session OF Congress.
Clifford Sees Business Gains.
While in the city yesterday, Walter
s. Clifford, president of the American
Telephone g. Telegraph Co., SAID tnat
new telephones are now being mStalleo
at the rate of 100000 year. ABOUT
a per cent gain. He considers TINS
fact a definite sign OF business I'M
provement.
The s32. 100000 Federal 1nterme-
diate Credit Banks per cent SIX ana
nine months offering has been over
subscribed four times and the DOCKS
have been closed, according to Charles
r. Dunn, fiscal agent.
The Baltimore Stock Exchange has
admitted to listing S250,000 Mary
land Casualty Co. junior conVertlole
preferred series B stock, par value,
81 a share. Merchantile Trust, Baltl-
more, was named transfer agent.
Boston dispatches state that Presi-
dent Roosevelt's eldest son, James,
and his two associates in the in;sr-
ance business, John A. Sargent and
Douglas Lawson, have dissolved part
nership, 1t is understood that young
Roosevelt will remain in the lnsur-
ance business.
Heard in Financial District.
The report in a New York news
paper that the Federal Reserve Board
intends to stop banks from buying
securities for their customers Is not
taken seriously in the banking dis
trict here. This is service that has
been granted for years, is greatly ap-
preciated by customers and there ap-
pears to be no reason whatever why
it should be discontinued.
James Berry, president of the Per-
petual Building Association, is being
Congratulated by friends over the
completion of a 50-year connection
with the association. He was first
share subscriber, then member OF
the Loan Committee and later elected
president. He's been an official 80
years; has seen the organizations
assets grow to $50 2.500000.
Potomac Electric Power per cent
and 5R per cent preferred stocks are
being quoted ex-dividend on the
Washington Exchange, following the
recent regular payment declarations.