Evening star., 1942-11-10
Higher Surfax Rate
For Banks; Offset
By Other Changes
ToxubIe Income Cut,
Loss Deductions
Are Revised
BY EDWARD c. STONE.


realized, also as a result of the in
crease in excess profits tax rates.
according to digest Of the new law
just issued by the Washington Of
flee of the American Bankers Asso-
citation.
Offsetting these higher rates Of
tax, however, banks will find that
certain recoveries heretofore treated
as taxable income are no longer
subject to tax and also that deduc-
tions are permitted of certain losses
from ordinary income which. here
tofore have been treated as capital
losses subject to the restrictions and
limitations applicable to losses Of
that character. the digest says.
A number of technical amend
ments in the act bring bank tax
accounting more closely into con-
formity with bank accounting prac-
tices required or recommended by
Federal and State supervisory
agencies, which will reduce the
amount of paper work and record
keeping of banks with resultant
saving in time and expense, the
bulletin adds.
Trust Department Aided.
Other amendments correct con-
ditions existing under various pro-
visions Of earlier revenue acts. as q
result of court decisions which
tended to place banks at disad-
vantage in developing new business,
particularly with potential CUSTOM
ers for trust services.
Substantially all amendments which
benefit banks directly or indirectly
represent proposals which have
been urged for several years by the
ABA Subcommittee on Taxation.
Charles H. Mylarder, chairman. To
the qualification of the banking
fraternity, there is no provision in
the Revenue Act of 1912 for tax on
bank checks. -..
The digest, one of the most COM
plete ever put out by the ABA, was
prepared in the Office of D. j. Need
ham, general counsel.
ID. C. Men Rail Directors.
At recent meeting of the Board
of Directors of the Rutland Railroad
Co.. held in Washington, the follow
ing were elected directors:
Joseph c. Colquitt, Washington;
Warren r. Austin. jr.. Burlington,
VT; Harold D. Read, Princeton, N.
j.; 1t. Comdr. Henry A. Willard and
Col. Henry p Erwin, Washington,
and Frances w. Diehl, New York.
The present officers of the COM
pany are: John D. Bammage, presi-
dent; Frances w. Diehl and John r.
Waller, vice presidents; Robert c.
Arnoll, secretary treasurer: Francis
A. Grogan and Harry I. Clark, as
SiStant secretaries; Orris C.. Ballcu
controller, and Warren A. Austin
jr., counsel.
Victory Note Sales Mount.
Winslow B. Van Devanter. chair
man of the Treasurys Victory Fund
Committee for the District of CO.
lumbia, reported today that October
sales OF tax savings notes in the
Capital totaled $5,181, $50, of which
$499,150 was in series A notes and
$4,682, 900 in series c.
For September sales OF these notes
amounted to $l,451, ,425. of which
$255, ,425 was in series A and S1.196,-
600 series c, the figures showing
great increases in purchases in Oc-
tober.
For the fifth district applications
totaled s43,473.975, compared with a
total in September of Just over
s34 100000. In September the fifth
district stood eighth among u dis
tricts and in October sixth.
The fifth district was one of only
three districts to show an increase
in October sales over September,
Mr.. Van Devanter said.
Bean Joins Fisher. Co.
c. Nelson Bean, stamp clerk and
connected with the Underwriters
Association of the District of Co.
lumbia, has resigned and on De-
cember l will become manager OF
the insurance department of
Thomas j. Fisher Co., it was an
nounced today. Mr.. Bean is a grad =
uate of National University, a law
yer, member of the District Bar and
resides at 202 North Irving street,
Arlington, Va. Recently he was ten
dered complimentary dinner by go
associates at 2400 Sixteenth Street.
Auditors to Discuss Taxes.
The auditors section of the Die
trict of Columbia Bankers Associa.
ton will meet Thursday at the Lee
Sheraton Hotel at $50 o'clock. =.
Julius Sinker, certified public ac-
countant; T. Delox Paxman, men,
Der of the firm of Wayne Kendrick
& Co., and Vernon Dorman, acting
auditor of the American Security q
Trust Co.. will conduct a forum
meeting discussing income taxes
under the Revenue Act og 1912.
Harrison's Death Is Shock. q
The financial district was shocked
by the death of Walter j. Harrison
who had been associated with Au.
chincloss. Parker & Redpath fol
many years in the brokerage bust.
ness. A native of Leesburg, Va, hi
came to Washington 20 years age
and was vice president of the Com.
mercial National Bank and activel,
interested in the Mount Vernon Saw,
ings Bank. =
Mr.. Harrison had been at his Of.
flee so recently that very few pecplt
knew he was i'll. He was So.
Potomac Power Bonds Listed. -
The recent issue OF IS, ,0OO. 900 Pc.
tomac Electric Power 3A per cen,
bonds was listed on the Washingtor
Stock Exchange today, l09h beinl
bid with none offered.
Capital Transit figured In a 100.
share sale at 247s. q new high foa
the year. Riggs National Bank com,
mon sold at 247. ~
The exchange will be closed to,
morrow. Armistice Day. along witt
the banks and building and loan as.
sociations.