Evening Star Newspaper, December 9, 1926, Page 13

TRENDISTOWARD GREATER BANKS Expansions and Mergers Are - Necessary to Keep Pace % With the Nation. BY J. C. ROYLE. Spectal Dispatch to The Star. NEW YORK, Decciaber 9.—The as- sets of ‘the United States have in- creased $10,000,000,000 in the last year. That fact has been a prime factor in the trend toward capital ex- pansion and consolidations which has become apparent in _the banking busi- s. As a result of the «xpansion of not only is more capital re- ce the commercial and industrial activities of the Nation, but this money 1s required in larger sums. The two methods employed in the expansion of modern banking activi- tles have been strikingly exemplified 1n the increase of the capital stock of the National City Bank and the move to consolidate the Irving Bank and Columbia Trust Co., W can Exchange-Pacific Nationel Bank. These two moves were preceded by another large merger, along similar lines and for similar reasons, which brought together the Chase National and Mechanics and Metals Banks. Large Operation Trend. The whole trend of American busi- ness in recent years has been toward operations on a larger scale. Mass produc.ion, with consequeinc oW .ug of costs, has heen its feature. It was inevitable und this policy that the financing of industrial and commer- clal obligations should require large sums, The banks have had to follow this trend or lose p: with the pro- cesssion. For example, one New York bank 1s permitted under existing laws to loan to one individual or corporation only one-tenth of its capitalization, surpius 1d undivided profits. To- day it can loan to one concern ap- proximately $10,000,000. ‘When the proposed addition to its capital is made, it will be enabled to make a single loan of approximately $14,000,000. America and the world. A ingland are financing world requirements have necessitated the providing of additional banking capital. England, although a small nation, and as one business man put it, “always about steps from the poorhouse, has one s<he has only about four which =" innumerable . This is not possible under pxisting laws here The bankers are as deeply inter- ested In cutting costs as are makers of automobiles or other products, and economy 1s another factor which has produced the present policy. Addi- tiona! capital means the oportunity to acquire additional business, which led without correspond- in cost. This trend works right through the business, since, as one banker expressed it, the bank will get more deposits, and thus be able to loan more money to its customers and make more profits to acquire more customers and deposits. Cost Grows Great! st of donig business for banks an extraordinary extent, owing to the effort of bankers to give serv tb customers. Customers now not only ask but get service which never would have been thought of 10 years ago. “What we ren can be ing advance of Iy do,” said one Na- tional City official today, “is to run & department store of banking. We can and do take care of our customers from the National City has become the bigges bank in the world, yet on January it will start a cam! savi accounts. The some 00,000 on deposit repres ing such Some of the fce departments we operate may no: s s produce a profit, bu we believe they induce thrift anc the habit of doing a banking business which eventually will return profite It is one of our polic to take the bars out of the windows of the bank and put flowers in.” s closely associated with one rgers emphasized the faet the trend had been in ¢ s parallel to that of rve system, in that it e entire huge assets of the con lated concerns behind the opera s of each of the branches main- tained. PRICEé ON PARIS BOURSEQ. PARIS, December 9 (#).—Prices were irregular on the Bourse today. n' rentes, 49 francs 90 exchange on London, 122 times; 5 per cent loan, centimes. The dollar 5 francs 50 centimes, The | | ISSUE OVERSUBSCRIBED. Virginia Electric and Power Pre- ferred Taken Quickly. RICHMONI® Va., December 9 (#).— The 6 per cent cumulative preferred stock of the Virginia Electric and Power Co., put on the market yester- day in a biock of $1,500,000, was oven- subscribed within a few hours after being placed on sale, an announce- ment from the offices of the company here said, Orders of a number of the larger subscribers throughout Virginia and North Carolina will be pared down, said officials of the company because of the oversubscription. Company officials said it was impos- sible to estimate how much of the stock was oversubscribed. More than half the employes of the company purchased stock, approxi- mately $200,000 worth of the certifi- cates being taken by them. = Py OCTOBER RAIL PROFIT IS ABOVE LAST YEAR Annual Rate of Return Placed at 5.45 Per Cent. Against 5.26 in 1925. By the Associated Press. October earnings of class one rail- roads increased over the same month last year, the Bureau of Railway Economics, maintained here by the carriers, reporting a net operating in- come of $146,099,828 as compared with | $137,999,971. The annual rate of in- come was placed at 5.45 per cent as against 5.26 per cent in October, 1925. Gross opernting revenues for Octo- ber were $608,798.659 compared with $391,268,471, an increase of 3 per cent. Operating expenses totaled $414,708,- 774 compared with $410,240,992, an in- crease’ of 1.1 per cent. Eleven roads operated at a loss in October, seven in the eastern, one in the southern and three in the western district. Net operating income for roads in the eastern district during the first 10 months this vear totaled $522,677,- 625, which was at the annual rate of return of 5.47 per cent, as compared with $468,631,655 or 5.25 per cent for the same period last year. The southern district showed $136,- 405,938 and 5.76 per cent, as compared with $137,641471 and 6.08 per cent, and the western, except for the Kan- s, Oklahoma and_Gulf Railroad $376,392,067 and 4.57 per cent, as against $330,687,478 and 4.08 per cent. CHRISTMAS DIVIDENDS. CHICAGO, December 9 (#).—Christ- mas dividend news included a 40 per cent stock distribution recommended by directors of the Drovers' Trust and Savings Bank. In addition, the direc- tors yesterday declared an extra cash dividend of $4 a share, alpng with the regular quarterly dividend of $3 a share. Directors of the Drovers’ Na- tional Bank declared an extra divi dend of $2 a share along with the regular quarterly dividend of $2 & ROOF & GARAGE PAINTS, WALL TINTS, VAR- NISHES, FLOOR FINISHES, WINDOW GLASS, WIND- SHIELD GLASS MEMTER Ur GLASS. be used scratches, beauty. Floor Wax i i i R R R R R R R I Lt 1334 N. Y. Ave. q Such protection adds but little to the cost—enables your gift to GLASS TOPS —CUT TO FIT TABLES, BUFFETS, DESKS AND DRESSERS. will prove PRICES REASONABLE. Brushes to Keep Holiday Dance Floors “At Their Best” HUGH REILLY CO. PAINTS & GLASS THE CHURCHES URGED TOASSSTPEAGE “Enthronement of Christ in' All International Relations” Is Held Ideal. By the Associated Press. MINNEAPOLIS, December 9.— Abolition ot “all war by the enthrone- ment of Christ in international rela- tions” is held as the ‘“great ideal” of all churches in a report of the Com- mission on nternational Justice and Good Will to the executive committee of the Federal Council of Churches today. “The churches of America,” the statement says, “can, if they will, enthrone Christ in the international policies of the United States and by so doing they can do much toward removing the world menace of war and toward establishing world justice and world peace. “If the churches are really in earn- est with their ideals and their pro- grams for world peace, they will surely put men and money into this enterprise, just as they do into every undertaking which they regard as important.” Urging every communion té form a committee on international justice and good will, the commission de- clared that “should the churches of the United States make this goal one of their interests and concrete ob- jectives, within a decade its achieve- ment would be well on the way.” “This statement might have seem:d extravagant 25 years ago.” the report continues. “Now, however, because of the extraordinary position and power of the United States in world affairs, great progress toward a war- less world could be made certain.” MEN AND MONEY By M. S. Rukeyser. (Covyright. 1926.) Page boys at the New York Stock Exchange, who are important cogs in the speculative machinery, frequent- ly dream great dreams. The more alert catch a vision of the oppor- tunities implicit in their contacts with financiers whose operations are heard 'round the world. Sometimes the dreams of the boys in their teens come true. The latess ex-page and ex-telephone clerk to be admitted to the select 1,100 which constitutes the membership of the New York Stock Exchange is Mar- shall W. Pask, who paid the record price of $170,000 for his seat. He en- tered the employ of the Stock EX- change in May, 1903, and resigned in October, 1905. He has since been in the unlisted securities business. Of the present membership of the Stock Exchange the following bro- If You Want —YOUR GIFT TABLE or DESK to retain its good looks longer, take the precaution to have us equip it with a TOP OF PLATE ) without danger of nicks, etc., marring its Inquiry and Weighted Polishing Phone Main 1703 N RN R A S SIS SISO N e TTTTHITHT i i Mother's Been Fed Up - On Handkerchiefs Seventh Street EVERY year nearly every mother gets a whole lot of handkerchiefs or other small articles forlChrist- mas. Of course they come in handy, but why not give her the surprise of her life this Christmas and give her that much-wanted tea wagon? There’s an unusually attrac- tive display of tea wagons here now—all specially priced for the Christmas shopper. MAYER & CO. Between D and E TS F | kers orfginally wore tne uniforms of | pages and telephone clerks: John J. Ahern, Vincent W. Amy, Henry A. Anderson, Oswald Anderson, Frank Bliss, Willlam Br.ndriss, George F. Brennan, George. H. Bull, John A. Coleman, Cyril de Cordova, Roland L. de Haan, C. A. Durand, James F. Du- rand, Hurlburt C. Elmore, William C. Finucane, John C. Giles, Neville Gordon Hart, Benjamin_ Jacobson, George M. L. la Branche, H. D. Lewis, Henry A. McGoldrick, James Mc- Kenna, J. H. McMannus, Joseph A. Mahoney, Ralph Melson, Philip Mil- ler, Jeremiah R. Morris, John J. Moy- lan, August Neddermeyer, Luke Rose, J. A. Salter, Arthur W. Seselberg, James E. Sheridan, Arthur G. Somers, Willlam F. Stafford, Andrew J. Tier- ney, W. E. Tobias, F. A. Vochio and Joseph V. Vesce. Picks Boys of Promise. Recently the Stock Exchange has attempted to pick boys who show promise of marked development. Al- though only relativelv few can become members of the exchange, many oth- ers graduate into better positions in the offices of member firms. The turn- over of junior clerks at the great whiripoof of speculation is rapid, and the management of the exchange only aims to keep boys as junior clerks for two years. Cameron Beck, personal director of the Stock Exchange, keeps in per- sonal touch with 1,000 employes of the Stock Exchange. He laughs at current jibes against the present vounger generation of flaming youth. Despite the ‘criticism of youth in this jazz age, he believes the present crop of youngsters compares favorably with those of the past. “We are gradually tearing up our books of rules in the discipline and management of youngsters, and are tryving instead to use common sense and friendliness in the handling of individual problems as they arise. If a boy is wrong-minded, there is usual- ly a cause for it. “We think that too much attention is given by the average employer to the small minority of troublemakers and too little to the great majority of faithful employes. Misfits are un- happy in work and disagreeable to their employes. We attempt to weed them out as soon as we discover them. We don’t want boys who are not in- terested in this work. We try, how- ever, through our various connections, to_place such youngsters in jobs out- side which will be mcre to their lik- ing. High School Graduates. “We are now limiting new em- ployes to high school graduates. Most of our younger employes are also taking night courses of collegiate rank and are thus building the founda- tion for their promotion. Boys who thus make an effort to continue to grow mentally are the ones most frequently picked by our floor mem- bers for better jobs in their brokeragae offices. “Most employers make the mistake of trying to think for boys, and gov- ern them in accordance with formulae. We try to get the boys to think for themselves. When they are tardy, we explain to them that failing to report at the agreed time means stealing time from the employer; taking money without rendering the service agreed. We not only comment on abuses, but call attention to good work. Those who are not tardy for three months get an extra day off. Those who are not late for a year get an extra week off. . “We take boys directly from the schools, and find that in general their school record as to proficlency and character is a reliable index of their prospective worth in business. ‘Would Mold Boys. “We don’t want boys who have been spoiled with experience. We prefer to mold them ourselves, offerinc them an opportunity for economic study at the Stock Exchange Insti- tute. “The Stock Exchange feels that the chief task is to train the boys who come to work for it in their teens to be good citizens. If they are that, they will perform their work satis- factorily. “The most dangerous time in the business history of a youngster, our records show, is when he is first pro- moted. Those without strength of character suffer a letdown, and then never progress further. Able boys, however, see in a promotion an in- centive for greater study of the prob- lems involved and of effort.” The Stock Exchange took great pride recently when two of the pages found a pocketbook with $500 and returned it to its owner on Park avenue, who offered the boys a sub- stantial reward. They courteously re- fused any money, saying: “You can- not pay for our honesty.” The pages and telephone clerks have foot ball, base ball and hockey teams, but are not allowed to play unless their records show a high de- gree of proficiency at their work. THE BUSINESS OF GETTING AHEAD. Starting at the Top. Willlam Feather, business philoso- pher of Cleveland, who has a rare talent for stating old truths in a fresh manner, says: “I am convinced that most people are halted in their progress by a vain desire to start each new venture in a grand manner. If they cannot make the start grandly, thev make no start at all This observation is particularly true when applied to the ordinary in- alvidual who does not save at all be- cause he cannot save much. He over- looks that even a dollar saved is| capital, and is the beginning of a competence, which will multiply end- through the working of the compound interest table. If you are vears old and will save $44.33 monthly and invest it at 5 per cent | interest, compounded seml-annualy, vou will have an estate of $50,000 when you are 60. If you save as little as $1 $5,000 when you Young Man! Don’t Spend Your DROOP’S 1300 G EVENING STAR, WASHINGTON, D. 0., THURSDAY, DECEMBER 9, 1926 are 60. All too many individuals feel that their present salaries are too small to - permit significant saving, which they postpone until their in- come is increased. Such deferment is unwise, because when salary is in- creased wants usually grow also. Men sometimes stay in blind alley jobs merely because they don’t wish to start modestly in more promising flelds. Thus they drift for decades, waiting for an opportunity that never comes, to start at or near the top. They would be much wiser if they STANDARD, NEW YORK, NOW IS ON BIG BOARD NEW YORK, December 9 (®).— Shares of the Standard Oil Co. of New York, of which there -are 16,760,931 outstanding, with a total par value of $419,023,275, have been admitted to the trading list of the New York Stock Exchange for the first time. Heretofore the stock, despite the prominence of the company. and its thorized the listing of an additional $2,727,126 whenever issued. 2 Securities of two other Standatd Ofl companies—New Jersey and {afi- fornja—now are traded in on thes ek- change, and it is reported that Sth¥a- ard Oil of Indiana soon will join the group. PIG IRON LOWER. NEW YORK, December 9 (#).—Pig fron prices are down 50 cents a ton in the Pittsburgh district, basic being were willing to start modestly in a quoted at $18.50 a ton and Bessewer new vocation, sacrificing current in- come for better future possibilities. Chances at Top Fewer. The opportunities to start at the top are diminishing, as management is coming more and more to realize the £ood effect on employe. morale of pro- moting leaders from the ranks. Though this is unquestionably a de- sirable trend, it is sometimes over- done. Occasionally an enterprise suf- fers from inbreeding, and can be re- juvenated by an “outside viewpoint. But the outsider should be an indi- vidual who has demonstrated his su- periority. Too many individuals postpone the Joys of travel and culture until late in life, when they expect to be more af- fluent. The effect of such postpone- ment is likely to be the loss of a taste for such recreation. Charles Darwin concentrated for so long on his ecientific researches that later in life he lost his taste for music and other leisure pursuits. Many business men make the same mistake. Other individuals perpetually deprive them- selves of such opportunities because they do not feel they can afford the best. They insist on the best or nothing, and usually get nothing. Others during vacations enjoy eco- nomical travel in their flivvers, and find real happiness in expressing themselves without the gestures of the “grand manner.” VICTOR STATEMENT. NEW YORK, December 9 (#).—A statement sent to stockholders of Vic- tor Talking Machine C; which is passing to a New York banking group in a $40,000,000 cash transaction, shows net profit of $5,648,446 for the first nine months this year. It is es- timated the full year’s net will reach $7,000,000, equal to about $20 a share on the outstanding stock. Gross profit for the nine months was $10,235,949. This pecial Sale Women's Walking Oxfords 3.95 IGHT at the height of the Christ- mas shopping season comes a chance for a nice saving! And how eagerly Women and Junior Women are buying these smart, sturdy welt walking oxfords—at only $3.95 pair! enormous _capitalization, has been available only on the New York Curb[$20. Sales of No. 2 foundry grade Market. In addition to the outstand- | recently have been made at $20, but ing shares, the Stock Exchange au- some sellers have quoted as low as §19. St b Sttt 2 Harry C. Grove, Inc. Columbia “Viva Tonal” Phonograph Special 90 " $10 Delivers It Please the family on Christmas day with one of these popular Phonographs. The style il- lustrated is a special value at $90. Buy now— pay the balance starting in January in small monthly sums. - Harry C. Grove, Inc. (bt offers a welcome ° 'saving of nearly One-Half Tan or black calf, lizard or alligator calf trim. Wine calf, copper patent trim. Patent leather, lizard trim. And all-tan or black calf. Al sizes. How Much Have You Saved This Year? Are You Satisfied With Financial Progress? Would a Savings Account Here Help You Save More? Lincoln National Bank 7th & D Sts. 17th & H Sts. DROOP’S .Player Pianos— That are expected to give satisfaction beyond the time that is given you to pay for them— cannot be bought “style for style and point for point”—for LESS than the reasonable prices asked here. oA Player-Piano MUST BE of the soundest construction to last. equipped with the ACTION"—the most Those we sell are “STANDARD PLAYER durable that we know of. —_——————— “STEINWAY”—THE WORLD’S STANDARD IS OUR STANDARD IN EVERYTHING WE OFFER FOR SALE And, It An Article Hasn't Quality—We Will Not Sell It. $475 Is Our Lowest Price for a Reliable Player Plano And We Offer You Convenient Terms of Payment DROOP’S—1300 G St. 7th St., 9th St., “Arcade” & Pa. Ave. Stores. And a fine chance to Save on Girls’ extra quality **Gro-Nups” OUNG folks need new shoes for Christmas. Here's a chance to buy some of our high-grade “Gro-Nups” at special reduced prices. Good looking, well made tan calf or patent leather laced booths. Black or tan calf sports ox- fords. Some loop-laced, with light tan grain trim. Another style with new embossed quarter. Sizes 11% to 2... 33'35 Sizes 2% to 7. At 5 of our stores, as Hsted below. Out of Old Santa's Pack! Scores of delightful 95c gifts, specially priced Special sale of women’s per- fect full fashioned, silk, garter top Stockings, in dozen popu- lar colors. Special value, 950 Men’s green, blue or brown ‘elt Moccasin Slippers, with faid trim. . . 95¢ Two Pairs Men’s 65¢ novelty wool, silk and lisle, or silk Socks, in box.....e.cee.. 95¢ _Women’s charming rayon, ribbon-trimmed Moccasin sole Boudoir Slippers, in several pretty colors Adjustable useful 95¢ Pair _of Men’s Shoe Trees. A handy, i Two pairs boys’ ribl mixtures, Pair pairs boys’ ribbed wool Sports Hose, with novelty plaid tops. Regular $1 quality. 2 pairs Men’s extra fine $1.50 qual- 5¢ ity novelty striped or checked Hs;li-Hose, in silk-and-wool mixtures; Pair......oco.o 95¢ Children’s Felt Bootees, in orchid or royal blue, with ecru color turn-down collar.. 950 Attractive gift box contain- ing pair of women's silk and ribbon trimmed Slipper Trees, with silk garters to match. 950 Children’s “Zoo Pet” novelty Felt Slippers, with animal face, movable eyes and tiny bells ..... 95¢ Children’s “Bunny Head” Slippers, made of sheep skin, warm wool lining, soft mocca- sin soles.. 95¢ Women’s rhinestone and metal Slipper Buckles and Ornaments, attractively boxed. Pair ..ceeaenes . 95¢ %K 4149th 1914-16 Pa. 3212 14th 233 Pa. Av. eedesienenn..