Evening star., 1962-05-25

e requirements.
n a panel discussion of current
Sociation, expressed doubt that
any dividends will be reduced
in coming months despite a
slight Softening in interest rates
on prime real estate loans.
1T will be necessary for us
to watch our expenses and ef-
feet economies where possible, ~
he said. Il feel that we should
pay the highest dividend posi-
BILE, commensurate with safety
of our savers funds, after put
ting aside the necessary re-
serves"
Perpetual Praised
In a lively exchange on the
dividend problem, Mr.. Gibson
said his hat was off to Perpetu-
al Building Association for
holding its dividend rate to 4
per cent instead of following
the advance to 4H per cent.
Mr.. Raymond pointed out
that Perpetual was faring ex-
tremely well in savings receipts
even if it didn't raise the rate.
Il don't see why so many of
us in the savings and loan bus
iness have to act like sheep in
the matter of dividends" he
said. Asked whether he thought
dividends would have to be cut
back to more realistic levels,
he said, Its got to come"
Most of the panel members
deplored the widespread adop-
ton of paying dividends on
money on the first of the
month if received up to the
Goth of the month.
Stephen G. Slipher, staff vice
president Of the United Savings
& Loan League, moderated the
panel discussion.
Major Factors Listed
Major factors raising oper-
ating costs of the savings and
loans were outlined earlier in
the same session by Edgar F.
Peterson, jr., president of WASH
ington Chapter, Society of Saw
ingS and Loan Controllers.
Mr.. Peterson. who is control
Ter OF National Permanent Saw
ings and Loan Association, said
his chapter has been studying
cost problems resulting from
five decisions made in the last
two years or expected this year.
First decision was that of the
Bureau of Internal Revenue
setting up an electronic system
using social security numbers,
which associations must obtain
and include on information re-
turns of savers beginning in
1868. he said.
Early this year, the asSocia-
tions extended the grace period
for payment of dividends to the
goth of the month for most as
sociations, and in April they
increased dividends to 414 per
cent. an overall increase of GA
per cent in dividend costs, he
reported.
Congress now is considering
tax legislation which would re-
suit in association taxes equal
to 20 per cent of net earnings,
he continued. Finally a with
holding tax program on inter-
est and dividends is being con-
sidered.
Cites Downtown Needs
An investment of more than
$500 million in construction of
new buildings will be required
for development of downtown
Washington, Knox Banner,
executive director of the Ma
tional Capital Downtown Com
mittee, told the savings and
loan executives.
This compares with an esti-
mate of $33 million for new
streets, underpasSeS and other
public improvements in down.
town, he declared. The latter
figure does not include cost of
the subwayS and freeways
which are metropolitan area
systems and would be paid for
on an area-wide basis, he added.
Many new downtown projects
have materialized in the last
/ two years since the committee
was formed, but it does not
claim credit for all of them, he
! emphasized. We do claim credit
for recognizing the tremendous
development potential and de-
veloping an action plan," he
I declared.
BY 1880, the Washington area
. will have IA million more per-
sons than in 1860, $4,000 more
: jobs. 100000 more households
5 and 100000 more automobiles
2 he predicted.
: ASH Chapter Grows
Henry E. johnson, president
: of Washington Chapter, Ameri.
4 can Savings and Loan Institute
, reported continued growth
: which increased membership
3 from 275 in 1854 to 452 at tht