Evening star. [volume] (Washington, D.C.) 1854-1972, 1952-01-14

luCOue Oh COT
Mr.. Fleming. porations L
very severe" said Robert v. Elem
ing. president and chairman Of
the board For instance, for the
year 1850 the Federal income taz
then in effect for normal tax and
srtax averaged a. per cent plus
excess profits tax Gas of July l.
1850 Of 80 per cent of adjusted
excess profits net income. The
Revenue Act of 1851 increased cor
porate taxes, effective as of April
l, so that for the year 1851 normal
tax and surtax averaged 50.75 per
cent plus excess profits tax Of 80
per cent of adjusted excess profits
net income.
Generally speaking, banks that
have income subject to excess
profits tax must use invested cap
ital as a base for excess profits
tax credit rather than average
earnings, making the impact upon
1851 income very heavy: in fact.
our Federal income and excess
profits tax amounted to 67.7 per
cent more than in 1850.
'On the other hand" he added,
"our gross income increased IS
per cent and expenses. other than
taxes. increased 8.8 per cent. Were
it not for higher taxes our net
earnings would have been sub
stantially greater"
q. 8. Holdings Increase.
In pursuance of its long-stand-
ing conservative policy in respect
to investments, Riggs National
Bank had $751; ,551 800 in Govern
ment holdings at the close of 1851.
compared with $155. 1853 900 at the
end Of 1850. The banks owner i.
ship Of State or municipal securi-
ties increased only moderately and
for the purpose of increasing yield
after taxes.
MIR. Fleming is also vice chair
man Of the Federal Advisory
Council to the Board Of Cover
nors, Federal Reserve Bank, for
the Fifth District. In this capaci-
ty it is interesting to note that the
report commented: "As we enter
the year 1852, so far as We can
now foresee, there should not be
too great inflationary pressures
during the first half of the year"
Due to the increased rate Of tax
alton and the plan of accelerated
payment of corporate taxes, the
report indicated, the Treasury will
have q substantial surplus over
expenditures" particularly in the
first quarter. Also. on a cash
basis. it said, the deficit for the
fiscal year ending June 80. 1852.
may not be of "too large or serious
moment" It Is quite possible. the
report added, that deflationary
factors may outweigh inflationary
pressures during this period.
Offutt Reports Gain.
President A. Scott Offutt of
Anacostia National Bank of Wash
ington. in the annual report made
public today. reported net profit
Of $30,670 after taxes, for 1851.
Net profit after contingency re-
serves amounted to $19,549.
The banks gross operating in
come of $502.605 left a gross OPP
Grating profit of $139.862, "un-
usually high" it stated. Deposits
increased during 1851 by $780,
$50; demand deposits increased
$1,036,338. and time deposits in
creased $1.744,012. OF that amount
the time deposits of the Treasury
increased $1,675,000 and regular
savings deposits increased $69,012.
Mr.. Offutt said the Anacostia
National Bank anticipates gross
earnings of nearly 100000 for
1852. an increase of about 20 per
cent. based on present balance
sheet.
Name to Be Changed.
In line with recent growth, the
establishment Of branches in vari-