Evening Star Newspaper, June 6, 1926, Page 39

4 FURTHER DETAILS ABOUT CONVENTION Golf Cups Offered—Bankers Back Press Club—Other Financial Notes. BY EDWARD C. STONE. It is announced that the Hibbs Cup golf tournament at the bankers' con- vention at Hot Springs will take place on Friday, June 18. This contest is open to otficers, employes and direct- ors of member banks. The winner of | the tournament will have his name engraved on the silver cup donated by Willlam B. Hibbs and retain posses- slon of it for one vear. The cup must be contested for annually until won by the same person three times in succession, when it will be awarded | Convention Speaker | permanentiy to the lucky golfer. This cup was won by Ralph P. Bar» nard in 2 at Hot Springs, by Clyde B. Asher: in 1923 at Hot Springs, by H. T. Shannon in 1924 at White Sul- phur Springs, and by Clyde B. Asher 4 again last ) There will be other prizes offerec ain this vear for the at the convention are to have their own golf contest. They ned a putting contest for morning, June 19, which will be in charge of Mrs. W. W. Spaid, . H. G. Hoskinson, Mrs. Lanier P. MeLachlen and Mrs. L. A. Slaughter. John Poole has donated the: trophy for this event which is open: to any wife or daughter of any member con nected with the banks in the associa- tion. Mrs. Francis G. Addison, jr. and Mrs. Howard Moran have arranged for a_luncheon at the Casc Club for 1 p.an. on Frid the luncheon there will ie party in charge of Mrs. B Fleming, Mrs. Victor B. Deyber, Mrs. E. J. McQuade and Mrs. F. H: P. Sid- dons. The prizes for this event are to be announced later. It is stated that Merle Thorpe, edi tor of the Nation's Business, in addi tion to disc ing business conditions and installment buying, will also talk on stocks with non-voting rights. Gov. Seay plans to make his address Just as interesting to laymen us to members of the Federal system. The annual committee reports are sure to grip attention, as it has been a for- ward moving year. Bankers Backing Press Club, | Three prominent Washington bank ers are =erving on the of the National I’ W holding company Lress Club, which is erecting a léstory home and oflice building on I° street. It is estimated that the project will cost $i1.000,000. . The banker directors are Kobert \. Fleming, president, Riggs Bank: Itoborc N. Harper, president, Diswrict Nat and Joan Joy Edson. chia e bourd of dt rectors Lo Co.: pres squitabie C Building Association, and Columbia Nutional Bank. 18 also treasurer of the corporation. The other officers are John Hays Hammond, internationally pron engineer, president; Henry hart, Hava New dent, and Jum Washington publi ager. The other ciudes, amoi; Hoover, Secretar. of Comrm m J. Don altl, sistant t Att General of the nited States: kiliot H. Goodwin, vice president, Chamber of Commerce of the United Sta ; Ulric Bell, W - ington correspondent, Louisviile rier-Journal and president of the Na- tional 1 s Club; Alfred il. Kirch- hofer, jington correspondent, Buffalo ‘Evening News, and Vice pres- ident of - club; David Lawrence, publisher, United States Daily, presiden Consolidated Press tion; Gr: information, Department, and Edwa M E publisher, shington Post and i cinnati Enquire Exchange Governors to Meet. =5 Jckeler, secretary of the Washington Stock Exchange, has re- ceived word from Deiroit stating that of the boards of governors of 14 locak stock exchanges—that is, | exchanges that handle local securitie: i independently of the New York Stock xchange—will have a c nvention in Detroit trom June 21 to 23. This will be the first convention of the kind, and a new organization Is to be com- pleted. Governors of the local ex- Thanges all over the country have many problems which differ from | those common to Wall Street. Ior this reason they have been attempt- ing through correspondence to form an organization. Success of the move 4 to Washington yes- Wickey, secretary of It is under- stood that luugene Thompson, chairman of the board of governors of the local exchange, wiii be the representative from the National Cap- ftal. g New Treasurer Is Elected. At a recent meeting of the directors of the Washington Market Co. G. W. Forsberg was elected treasurer of the on to succeed Kalph W. Lee. Forsberg is a well known Washington business man, a bank di- rector, and is deepiy inte: ested in the ‘Washington Market C The other officers at present are Charles J. Bell, ) ' chalrman of the board of directors Wesley Brown, president and general coynsel; Simeon T. Price, vice presi- dept: Fobert D. Marshall, controller; ¥.'J. Becker, secretary, and Morris Wi Bennett, auditor. Life Underwriters to Dine. The District of Columbia Life Un- depwriters’ Association will have a& dinner at the Raleigh next Thursday; at 6 paw, the gathering having two special objectives. Special honor will be paid to the faculty and students of the Rockwell School of Life Insur- anee, which opened a Summer séssion here last week. The $50 prize will alsp be awarded to the member of the Federation of Women's Clubs of ‘Washington who has submitted the best essay on life insurance in the recent contest. The judges are Flor- ence P. Kahn, Dr. Charles J. Rock- well and Dr. J. A. Bell, director of education at the Y. M. C. A. N. E. Bllsworth, who is entering ‘upon his sedond term as head of the local as- sogiation, will preside. cal stockholders in the American Telephone and Tclegraph Co. are re- cefving notices, signed by President Walter . Gifford, announcing the re- , cently authorized new stock issue. Tiis issuo is offered to stockholders of record on June § for subscription at/par (§100 per share) in the propor- tion of one share for each six shares then held. Payments for the new stock will be spread over a period of elght months, from August 2 to April 1, 1927, As already announced, the purpose of this new issue, amounting to ap- preximately $154,000,000, is to pro- vide the Bell System with funds for construction needed to care for adgitiobal business resulting from the cofistantly growing use of telephone rice. .The communication received & the terms of the new stock offer ! in fgreat detail. Buving in this stock has continued ¥ unabated since the announcement of | GEORGE J. SEAY, Governor of the Federal Reserve Bank at Richmond, who will address the District Bankers' Association at Hot Springs, Va., taking the Federal re- erve system as his subject. for May totaled $534,885, a gain of more than $100,000 over the same month a year ago, or 23.0 per cent. Sales for the first five months of the year were §: . an increase of 214,000 over the same period ast vear. Bond circles are awaiting with keen interest the Treasury's announcement of its June financing plans. A belief exists that the Government, in ad- dition to offering short-term certifi- cates, may invite holders of Third Liberty 413s to exchange thelr securi- tles for an additional issue of the Treasury 3 The national debt of the United States which will ultimately have to be paid off by American taxpavers stands today below $13,000,000,000, provided all foreign _governments, which have reached debt agreements with Washington fulfill the terms of | their agreements. According to the June bulletin of the New York Re- serve Bank. skt = STEEL IRREGULAR INWEEK'S TRADING Bars and Pioe Are in De- mand, While Other Descrip- tions Are Inactive. By the Associated Press. NEW YORK, June 5.—The steel market during the past week present- in regard to the demand and to val- ues. Steel bars were firmer and fai active, while pipe also soid in con: orable volume, but other products were in only tair demand. On the who'e business was better than a month ago and the monthly Joss in orders was expected to be smaller, with turther reductions in production. Plg iron production wus also curtailed d some fairiy good sized orders were placed at concessions. Copper remained quiet. but buyers for domestic consumption are holding off, probably in anticipation of lower prices as a result of unsatisfactory trade conditions and a broad and a continued full production. No selling pressure of consequence has devel- oped and some of the producing in- | torests are still asking 13% for elec- trolytic delivered. This figure was entirely nominal, however, with small sales reported at about 13.80, while comparatively few buyers were in evi- dence above the % per cent level. Tin has declined to a new low for the year in response to larger arrivals and continuance of the English coal strike. Consumers bought liberally on the decline, some of the demand coming from plate manufacturers, who opened their books for the third quarter at unchanged prices. Lead remained firm. Large pro- ducers are well booked up for June in consequence of recent well distributed buying of both June and July. Zinc was firmer, in sympathy with the steadier London market, with a better inquiry. reported. Antimony advanced, due to the strength in China, with a better con- suming demand. EVERYMAN’S INVESTMENTS BY GEORGE T. HUGHES. ‘TWO IMPORTANT POINTS. Continuing the discussion of railway bonds the two mest important points to be considered before making an investment in this class are the po- sition of the mortgage with regard to other liens and the value of the par- ticular plece of railroad property on which the bond is secured. In the case of first mortgage issues these matters of security are of greater moment than earnings. 1t is perfectly possible—and it has repeatedly happened—for a road to go into the hands of a recelver and yet continue to pay interest on its first mortgage bonds. The St. Paul road is doing that just now. In’fact, there are very few instances in the history of Amevican railroads for a first mort. gage bond of the larger systems to de- fault, no matter what happened to the junior securities. Some bonds are strong enoough to go through re- ceiverships undisturbed. The second consideration, that of the value of the property mortgaged, is mot so easy to weigh. In general gocurity is better when founded upon the main line than when upon a branch. There are plenty of excep- tions to this rule but the fact that statistics covering trafic on the various branches of a road are not ordinarily available makes it difficult to discover them. The average in- vestor will come out better if he con- fines himself to main line mortgages. Besides bonds that are mortgages on main lines and branch mileage there is a large class secured by ter- minal properties. Formerly these were not rated high as a group but in recent years they have come to be regarded ' with greater favor. Whenever these terminals are loc: in the larger cities it is reasonable -to expect n in the value of the real estate thus increasing the security back of the bonds. This rise in land. value is often great enough to offset the chance of a change in the location of the terminal. Often two or more railroads occupy jointly & terminal and are jointly re- sponsible for the payment of prin- the new offer. The stock w sell- ing on the New York Stock Exchange within about & point of its high for all cipal and_interest on the terminal bouds. This of course raises the rating and some bonds in_this growp | THE SUNDAY STAR, WASHINGTO YOUNG INVESTORS SHOULD AVOID ALL CANVASSERS AND TIPSTERS Bonds Are Safest Securities and Before Putting Money Into These the Banker Ought to Be Con- sulted—Many “‘Pretty”” Certificates Worthless. BY 1. A. FLEMING. “Investigate before investing.” This should be the rule, not the ex- ception. If the presses are busy turn- ing out bonds all day they are like- | wise busy nights, days and Sundays in preparing beautifully “engrayed” stock certificates, all ilkewise “full paid and non-assessable. i 1 | | | | | existence peddling tips, in the hope that they may hit it right occasionally |and recelve some small recompense. There is yet another class of tip- sters, well ‘meaning, who pass along the say-go of this or that one who has predicted a sharp rise in this or that specialty, adding a little more assur- ance to their prediction. Stick to Bonds. 1t is usually through one of these tips that the uninitiated takes the first fiyer in stocks. Needless to say that the result is usually disastrous, perhaps less so than If it should prove tainly inspires an earnest desire for more of the same kind, and starts the reciplent on the speculative road. It is probably a good thing for the first.grade investors to stick to bonds, fuk in this they become eredit- ors and in stocks partners. While there is not the same chance | of makin= the profits that stocks | sometimes offer, the fixed income is practically certain, fluctuations are | severe and in the event of trouble hitting the general market, the loss Wil be much more restricted. This of course presumes that the | bond investment has been made on the advice of some banker or other | high-grade authority, and ~bought from some reputable house jealous of its reputation. Your banker will give you the names of such firms if | you ask for them, and they are worth | having. Avoid All Canvassers. Avold house-to-house canvassers |and also be decidedly chary with the | thousand and one users of the matl offering stocks and bonds that are attractive on paper only, with highly |tinted prospectuses of probable s in the next few years, more or The rellable broker or banker will | give you the record of the years| that have gone of the corporation issuing the bonds. { “Bond sellers, legitimate or other. wise, are a knowing class of | people. They know your income, they have access or have had access to the revenue books and know from what securitles you obtain vour in- come and many other things that should be a matter of importance to_you alone. so make a practice of offer-* ing some slight profit to you to shift investments, that they may make sales of their offerings. It is, therefore, doubly essential that the investor not posted on the trade should be in touch with a successful, for easily made money cer- |’ any time they are being “let in on the ground floor,” or offered a chance for a speedy clean up. Better be suspicious all the time. themselves, not admit it, Bankers and while they may banker. All investors should be suspicious | ed a rather irregular appearance both | ‘SMIALL DECLINES ON COTTON CHANGE Market Closes Steady at Drop of 6 to 10 Points on Good Weather News. | By the Associated Press. ! 'NEW YORK, June 5.—More faver- able weather news from the South was reflected by moderate declines in the cotton market today. October contracts sold off to 17.48, or 8 points net lower, and closed at that figure, with the general market closing steady at net declines of 6 to 10 points. The opening was steady at a de- cline of 2 to 6 points in response to lower Liverpool cables, but offerings increased after the call owing to con- firmation of yesterday's private re- ports of rains in the Eastern’ belt. These rains were considered bene- ficial following recent drought com- plaints, and the prospect of further showers in_the Eastern belt, with clearing and warmer weather in the Southwest, made a favorable mpres- sion on sentiment. July sold off to 18.18 and December to 17.40, while March declined to 17.52, making net declines of about 8 to 11 points. The selling was by no means gen- eral or aggressive, however, and the decline was checked by covering, with the market ruling steady in the late trading, although the close was ‘within a point or two of the lowest. There was considerable price fixing during the earlier tradi with spot house broker buyers of July on the decline, but otherwise the bulk of the busi- ness was attributed chiefly to the evening up of old accounts, and the @emand for July was supplied by sell- ing supposed to represent liquidation of Wall Street long interests. DAIRY PRODUCTS. BALTIMORE, June § (Special).— The market for native and nearby eggs continues steady to firm under 2 good demand prevailing on the local exchange for strictly fresh stock. Re- ceipts the past week have been fair, but not in excess of trade wants, and all offeringa of desirable quality have found ready outlet for the past few days among the trade on the street. closed today at 30% cents rictly fresh firsts in free dosen for strictly fresh Death T8, 508 , 8 bu: l-:gl;‘r{\nwd all held stock has to be sold at & discount to packers. The general live poultry market rules easier under more liberal re- ceipts, but & good demand prevails, especially for Spring chickens of de sirable size, 1% and over, and all re- ceipts of this sort meet ‘with prompt sale, but smaller chickens are hard to stock not lon, old 3 Receipts of young ducks, 3 pound and dver, have been light and have rnet with ready sale at 30 to 32, but old ducks are slow sale, unless fat, at 17 to 28. Guinea fowl and pigeons are in light receipt and fair demand 75 to 85 each for 'young of the former, and 40 to 50 for old and stags, while pigeons sell mostly 30 to 40 a pair as to quality and condition. - —— The use of candles for decorative this country bhas st | N - ) V&P - brokers are suspicious, but it is their business to be suspicious of every one whose reputation is not known, of every bit of paper offered to them, documents, certificates, ‘notes, etc. They take nothing for granted. It is second nature to them to be careful and suspicious, and the investor—in every- thing—ought to exereise the same care. It wilk pay A Wrong Idea. It is not a wise move for the young investor to make to purchase low- priced stocks just because they are cheap, on the theory that the chances are that they will advance more than other shares, or for the other reason frequently advanced by the embryo trader, “one can buy more.” A stock that is selling at a ver) low price is selling for all ‘that it ! changes in other D. C, JUNE 6, 1926—PART 1. T e eSS eSS worth. If it was worth more it would be_selling for more. Much better to buy one share of high-grade stock at a high price, be- cause it has the intrinsic worth, it is progressing, and the chances are much better for further thun that of the cheapling. One has but to follow the record of high-grade bunk stocks and other worthy shares on the home mirket and on the e onters. “Then too, in periods of stress, of the unexpected which happens between days, as a rule, the high-grade stocks will stand up to the racket where the low grades will melt away. There is probably no question with the great majority of speculators over the advantage of buying outright, when possible, rather than of buying on margln. There are probably some, advances | however, who will agree the advant- age really should he with the margin trader and both sides are backed with strong arguments, Frien of the former theo claim that there ix safety and satix taction in the purchase of stock for cash: that a slump in prices will not bring any cause for worry, s for mo margin that trades on margins may be attend avolded account is avoided entirely-—all tr If one buys on margin, he squirm at the first call for more mar gin, but he will have to put it u; sell; on the second call he spond, but the chanc stock will be sold and the pocketed, there is nothing else to do with it. With vour stock in the sirong box and that the item of interest in the | — your wife will love the luxurious quality of this Studebaker Sedan This Standard Six Sedan, Unit-Built ~the most powerful Sedan of its size and weight —at a One-Profit price OU may not often want all the power that is stored away in this smart Stude- baker Standard Six Sedan. But just get your foot.on the accelerator when you want a genuine thrill. It shoots through traffic with all the snap and vigor of a thoroughbred, and carries a reserve of smooth, eager power that makes hills and level stretches look alike. According to the rating of the Society of Auto- motive Engineers, the Standard Six is the world’s car's most powerful car of its size and weight. Twenty- eight sedans have less rated horsepower and they sell for $100 to $5355 more. Its design, body finish, upholstery and equipment present a richness appropriate to its surpassing per- formante. Fastidious women—the keenest judges of quality—are its greatest admirers. That's be- cause the industry knows no higher standards than those maintained where Studebaker cars are built |3 fifth of an One-Profit value The quality-car power and luxury in this fine Sedan at $1295 are due to the savings made possible by One-Profit manufacture. But for the enormous Studebaleer facilities that make these savings possi- ble, its price would be as nigh as its quality. Few motorcar “manufactrrers” bave foundries, Wu&.bmh&drmwfl sutomobile’s coet s in the engine. Even JOSEPH McREYNOLDS Ind. Potomac 1631 MARYLAND (West) e ey Motor CATONSVILLE—Coten S AL AN D risieh Mator & Tive Co- PREDERICK—Frederick City Gerage mfl—-hw. Sales Ou. House Garage DI ATARD ettt Garace PARETON—. ). Hoshall & Sen le,m-' Themas J. Casey [ k. Palet O, Ine. W. Kleo VIRGINTA (East) HAGERSTOWN—Fleigh Moter & Tire Oo. B HANCOCK—Central HAVRE DE GBACE—Pitceck Bres. d-Carlis Moter Co. BEDFORD—Auto Service & Elec. Corp. fewer build their own bodies—yet one-third of a cost is in the body. Studebaker builds all its own bodies, ol engines, all clutches, gear sets, springs, differentials, steering gears, brakes, axles, gray-iron castings and drop forgings. Only Studebaker in the finecar field enjoys such complete manufacturing facilities. These facilities enable Studebaker to manufactnre quality cars on a One-Profit basis—eliminating out- side profits. The savings thus effected are passed on to Studebaker owners in the form of higher quality and lower prices. Unit-Built construction Studebaker facilities result, too, in cars designed, engineered and built as units. The hundreds of parts in 3 Studebaker function as a smooth-working unit, resulting in scores of thousands of miles of I excess transportation, greater riding comfort and higher resale values. Always kept up-to-date Direct manufacturing control enables Stndebaker to keep cars constantly up-to-date We add im- provements regardless of the calendar—we do not save them up for spectacular annual announcements which make cars artificially obsolete. For a com- plete illustrated story of One-Profit manufacture and for a beautiful colored catalog of Standard Six Studebakers drop a postal or a letter to The Studebaker Corporation of America, South Bend, Ask for Combination F-165. HAMPTON—] HARRISONBURG—E. R. Rodes. KILMARNOCK—Pruett Moter Co, LEXINGTON—W. §. M¢Cown f. 0. b. factory v will | that the | you have no desire to sell, you “will walt till it comes back." Lower and lower the price drops and you h: then you get scared at the very low- est point, as 4 run on the ex austion of the first or second margin call would have left you better off. Your banker or the Better Business 1 will probably advise you as to a safe stock to put away for the rainy da If you save Vour money, dollar hy dollar, if it has taken you years to accumulate yofi will not want to taka any risks, but will stick to your bank- er's advice and probably to invest- ments in high-grade bonds, in whiech thete are no serious fluctuations and where advances, small of course, but more or less certain, may he leoked for pett LU AL VAR L L AR R il R S L A SRR ol S bl o) st it AL Aot SR . sl LR AR A e 2 ©One of the most expensive things [} [ é® in market operations is the “tip | | There are down-and-outers around nearly every broker's office, victims of . inability to guess the market right themselves, who try to eke out an fine Studebaker Standard Six Sedan illastrated is a luxurious four-door enclosed car. It is upholstered in genuine wool cloth. Carpets are wool. Windows are real plate glase. The spark is automatically advanced and re- tarded by the speed of the engine. The spark lever is thus made obsolete and is replaced by the safety lighting coatrol on the steering wheel. The equipment inclndes: gasoline gauge, air cleaner and gas and oil filters, rear-vision mirror, stop light, dome light, automatic windshield cleaner, coincidental lock to steering gear and ignition, controlled by same key operating doer and spare-tire locks. But the most important supericrities of this Sedan cannot be seen. They are concealed within the framework of the body and im the chassis. Body pillars are of northern white ash, cross- members of hard maple. We pay a premium for steels of extra toughness. Run the quiet L-head engine—the most power- ful in any car of its size and weight, according to the rating of the Society of Automotive Ea- gineers. Test this car's performance on the road. Note the power, the splendid riding com- fort; then realize that you can buy it out of in- come for the lowest price Studebaker ever placed on a Sedan, at time-payment rates as low world: as any known to the motor world. These fine One-Profit Studebakers may be purchased out of income at time-payment rates as low as any known to the motor STANDARD SIX—Duplex-Roadster, $1125; Duplex-Phaeton, $1145; Coach, $1195; Sport- Roadster, $1295; Comntry Club Coupe, $1295; Sedan (wool trim), $1295; Sedan (mohair trim), $1395. Pass.), $2145; $2225 SPECIAL SIX — Duplex-Roadster, $1395; Duplex-Phaeton, $1445; Coach, $1445; Sport- Roadster (4-Pass.),$1595; Brougham, $1795; Victoria, $1750; BIG SIX—Duplex-Roadster, $1495; Spart- Roadster (4-Pass.), $1645; S:on—flncm, $1575; Duplex-Phaeton, $1775; Club Coupe, $1650; Sedan (S5-Pass.), $1895; Sedan (7- Sedar, $1895. Brougham, $2095; Berline, Fourteenth at R PULA PURCELLVILLE--Little Motor Sales Co. QUAATICO—~Parie Aute Serviee Co. RICHMOND—Haselburst Motor Ce., Inc. Studebaker sales and service at 3000 points throughout the United States BOANO! STA! ROMNEY—New