Evening star., 1940-08-07
Opposition Develops
To Bill Curbing Loans
To u. 5. Employees
Sheridan Measure Held
Unfair to Both Worker
And Money Lender

| oppoSltlOu is brewing 10 Dill
pending in Congress which would
prohibit making or collecting loans
to Government employees on Govern
ment property"
Known as the Sheridan bill, the
measure is before a subcommittee of
the House Judiciary Committee,
which recently postponed a hearing
scheduled for this week.
Representatives of lending institu-
tions of the city are understood to
be opposed to the bill.
Francis G. Addison, president of
the Security Savings & Commercial
Bank, who is chairman of the Com
mittee on Law and Legislation of
the District Bankers Association,
feels that such legislation would be
unfair" to Government employees
themselves, placing them in a special
class.
Hits Money Lender. Too.
Such a bill also would place an
unfair burden" on the money
lender, Mr.. Addison believes, because
it would put him in a position of
lending money in good faith at a
legal rate of interest only to find
that he is guilty of a crime if he
sends a notice of maturing note
to an address which he may not
know to be Government building.
The bill provides penalty Of
81 900 fine or imprisonment, or both,
| for violations.
The number of Government build
ings in Washington has been in
creasing the past several years.
Many new buildings have been
erected by and are owned by
the Government. But in addition.
there are many more leased by the
Government. According to latest
reports, such buildings leased in their
entirety here in Washington are 68
in number, and have floor space
totaling 2,725,943 square feet. Be-
sides this there are II buildings
leased in part, with a total rented
space of 1,2l5,143 square feet. This
makes total of las rented buildings
where loans could not be made to
Government employees, nor collec-
tions attempted.
Other Measures Pending.
Many other measures of vital con-
Germ to the financial district are
pending in Congress. Among the
most important of these are the pro-
posed excess profits tax, still the
subject of controversy and con-
sideration, and the proposal to re-
duce the assessment on banks in
sured by the Federal Deposit In
surance Corp.
In the opinion of experts. the new
excess profits tax in all likelihood
will fall also on banks, in addition
to the provisions of the recent new
revenue act. Under previous un-
distributed profits tax, banks were
accorded special treatment, but
when this tax was repealed banks
were put back in the same class
as corporations. So it is anticipated
by close students of pending legisla-
ton that banks will be faced with
new excess profits taxes, into what
ever form the new legislation final
ly may be whipped.
Already banks are sharing the
heavier burden of the new 1910
revenue bill, which recently be-
came law. Corporation income
taxes under that act were increased
l per cent, but the relative differ
ence in rates between corporations
having net incomes over $3.50 and
those having incomes of s25.OOO
or less was retained. Also under
the new defense tax, banks for the
next five years will have to add to
thelr normal income tax an addi-
tional 10 per cent of the amount
OF such tax. Similarly they will
have to add 10 per cent 10 the
amount of their capital stock and
excess profits taxes The 10 Der
cent increase in the capital stock
lax was applicable to the tax which
became due June 80 and was paw
able during July.
Trust Departments Affected.
Banks with trust departments
also are affected by the change in
the requirements with respect to
income tax returns of estates and
trusts. The basis both for individual
and fiduciary returns was changed
from net income to gross income
The proposal to reduce the as
sessment rate for insurance in the
F. D. I. c. was recently put forward
by Chairman Crowley of the F. d,
l. G. without reference to specific
legislation. There still is pending
bid introduced by Representative
Steagall, Democrat of Alabama
chairman of the House Committee
on Banking and Currency, which
would accomplish such a reduction
The current rate of 1/12 of l per
cent would be cut to IVA of l per
cent. Furthermore the Steagall bill
would increase the insurance cover
age OF deposits of trust funds from
! n00