Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-29


the Nation because of very bad
and Anticipated tax laws.
2. Under conservative bank
procedures. District banks now
paying per cent for savings
accounts will gross only about
SIP a year for each $1,000 of
savings, and from this must
deduct all costs and find a re-
manning profit. if any.
8. Banks here are giving pref
erence to old customers in max
ing loans. They are in a good
position to make small loans or
consume loans of good quality.
They favor self liquidating bust
ness loans but shun capital loans
as too risky.
4. Bankers feel that service
charges should require no apol-
ogies. When bank performas
a service, it should be paid like
any other business.
S. Bank trust departments are
serving many more small ac-
counts than large ones and are
finding the common trust fund a
valuable instrument to diversity
investments, reduce costs and
even out the flow of funds.
s. District banks are extremely
short of young men willing to
train for careers and future ex-
ecutive positions. Opportunities
are said to be exceptional and
will remain so until the 196Os.
Bowersock is Chairman,
Gets in Officer Line
The panel discussion followed
an announcement that Justin D.
Bowersock, executive vice pres
ident of Union Trust Co. has
been appointed general chairman
for the associations annual con-
vention in June and thus goes
in line to become president in
1959-196O.
The announcement was made
by Daniel j. Callahan. jr., senior
vice president of Riggs National
Bank, association president this
year.
Traditionally, Mr.. Bowersock
will be elected second vice pres
ident at the convention at the
Greenbrier. White Sulphur
Springs, w. Va. and will go on
to the first vice presidency the
following year.
A native Of Kansas City and a
graduate of Harvard University,
Mr.. Bowerstock was a banker in
Missouri for 20 years before join
ing Union Trust Co. in 1949. He
has been active in community
affairs as we'll as banking.
He is president or the Hos
pital Council of the National
Capital Area.
Baird is Moderator
For Panel Discussion
Bruce Baird. president of Ma
tional Savings & Trust Co. was
moderator and introduced other
members of the panel.
Clarence F. Burton, president
of City Bank and chairman Of
the associations taxation COM
mittee. characterized the COM
bined load of Federal and Dis
trict taxation as terrific and al
most conf1scatory."
District bank earnings are
around the lowest in the Nation
as a result of taxes, he said.
Maryland banks pay 80 per cent
less taxes and Virginia banks
pay "a per cent less. The District
is the only remaining jurisdic-
ton that still has a gross earn
iEgs tax.
Asked about the tax on secur-
tiles profits, he said that if a
bank had 100000 of securities
profits in a year and also $780,
900 Of losses, it would still have
to pay $4,000. He favored the
taxation of net income from all
sources. as is done in 10 States.
This is purely personal OBJ
servation, but I believe our pres
ent District bank taxes are based
on very bad and Anticipated laws
which have been on the statute
books for 81 years." he said.
Warren r. Forster, president
Of Munsey Trust Co.. furnished
the basic arithmetic on savings
interest.
AS reserve requirements for
District banks are 10 per cent on
demand deposits and 5 per cent