Evening Star Newspaper, February 22, 1927, Page 11

N FINANCIAL, U RAIL “BULL" MOVE ALMOST BREAKS List Snaps Back After Break- Ing Wide Open on Report From Capital. By the Aseociated Precs. NEW YORK, February 22.—The “bull” movement in the raiiroad shares on the New York Stock which carried them to the highest gen- eral level since 1910 last week, ap- peared for a time on the verge of collapse yesterday when a sudden sell- ing attack, based on erroneous conclu- slons drawn from a news ticket bulle- tin on a decision in the United States Supreme Court in a railroad valuation case, sent quoted values tumbling 2 to nearly 12 points within half an hour. When an abstract of the text of the decision was published, however, and it became apparent that the rail- roads still had recourse to the courts if the valuation fixed by the Interstate Commerce Commission was used for a seemingly improper purpose, a swift recovery set in, which wiped out a substantial part of the earlier losses. The average of 20 leading issues showed a net decline of less than 2 points on the day. A striking illustration of the rapidity of the decline was furnished by Read- ing. This stock, which had touched % 1113 in the early trading, dropped so fast that it was selling at 99 on the floor when the tape had carried the de- cline only down to around 106. By the time the tape had printed the low quo- tation, the stock was quoted around 104 on the floor. Traders and custom ers in commission houses were bewil- dered by the lightning-like reversal of trend. The following table shows the width of the swings in several of the popu- lar rails: 4 Net High. w. Last. loss. tlantic Const, Line. 105 180% 181 8% ansas Cits S'thern. 53% 43 40 2l s York "Contral™ § tchi Industrials recelved excellent sup- port when the rails were on ‘the toboggan. The average of 20 leading industrial shares closed at the highest level ever recorded, due largely to the spectacular gain in Baldwin, one of the stocks used in the compila- tlon, which closed 61 points higher at 196% after touching a new peak * price for all time at 197%. ALEXANDRIA. ALEXANDRIA, Va, February 22 (Bpecial).—The Alexandria Wash- ington Lodge of Masons, No. 22, will brate George Washington's birth- day tonight with a banquet which will be given in the Elks' Home audi- torium. Arrangements have been made for the accomodation of 250, and many delegates attending the George Washington Masonic Nation- al Memorial Association convention, being held in this city, are expected to_attend. Dr. J. T. Ashton, worshipful master of the local lodge, will preside and act as toastmaster and will call upon many noted speakers. Among_those who will make addresses are Repre- sentative Gordon Browning of Ten- nessee; Rev. Homer J. Counseller, assistant tor of C-Jvn?' Baptist Church of Washington; James F. Bowman of Roanoke, Grand Master of Masons in Virginia, and H. O. Childs of the Liberty Lodge of Bev- trh{. Mass. Aexm:—:la I;_ l&dny 'pag‘ln its (nr'- spects to the Father of his Country: All municipal offices as well as banks and Government offices will be closed. The post office will be closed all day, although mail will be dis- ched until 6:60 p.m., and one c nwre from the street a hundred Boy Scouts made the annual trip ot this ecit: ‘ernon today, joining sev- to Mount eral thousand scouts from nearby Ucities to visit the mansion and tomb of Washington. In the absence of Henry P, Thomas, scout master, the local delegation” was in charge Thomas E. Franklin of Troep 186. Barbour Beach, sentenced to 30 days in jail on a charge of drunkenness in Police Court yesterday morning, is in the Alexandria Hospital today, fol- lowing an attempted suicide at 8:15 Jast night. Beach cut his throat with a part of broken bottie. Fellow prisoners called the jailer and Beach ‘was rushed to the hospital. 4 Alexandria may be represented in the industrial exposition of the Wash- ington Chamber of Commerce, it was learned here, M. A. Leese, president of Washington Chamber of Commerce and chairman of the general arrange- ments committee, having extended the city the invitation. Should plans go through, they would call for the set- ting aside of a section of the exposi- tion for a display that would cover Alexandria business in a thoroughly Fepresentative manner. A meeting has been called by Mr. Leese for Fri- day :t } p.m. (:1 uonsi?:r the arrange- ment of several special features for mio cnod;l:n. bert South Barrett of this cit has been unanimously selected ni chajrman of the executive committee in charge of the raising of the sum of $2,000,000 by public subscription for Sewanee, the University of the South, at Bewanes, Tenn. Headquarters for the drive will be located in Chatta- nooga, Tenn., and the campaign will continue over a period of 18 months. Daniel 8. Glover of this city has pboen awarded $2.000 for personal in- uries received while working at the ‘ashington Navy Yard in 1913 in a bill passed in both houses of Congress. gnl:“d bmA wg- sponsored by Senator | e A. Swanson and Representa- tive R. Walton Moore. 2 e ‘Three robberies were reported to | the police here this morning, and local | , suthorities are of the belief that all | * were committed by the same man. | . D, Dewar, 56 East Walnut street, | reported that his wife awoke shortly after 4 o'clock this morning and found & man in her bedroom, but the man ran out the back door before any Exchange, | MEN. AND MONEY By M. S. Rukeyser. (Covyright. 1927.) France {s breaking through the in- ternational capital blockade. In spite of the unwillingness of British and American bankers, in def- erence to the wishes of their re- spective governments, to float new French government bonds until such time as the French Parliament ratifies the pending agreements to fund out- standing debts to the London and Washington governments, France has been getting outeide capital. The infiltration Is coming directly from Holland and Switzerland, whose bankers are eager to take advantage of the present opportunities to step in where the London and New York ankers fear to tread, and, indirectly, also from British and American sources. The situation fllustrates in classic manner the difficulty of damming up economic streams by the erection of purely political barriers. Just as water seeks its own level, capital flows to .the places where it can command the best return With the two chief money markets of the world—New York and London— | temporarily closed to her, France has nevertheless in striking manner heen putting its financial house in order since last July. The improvement in the position of the franc in interna- tional exchange is largely the result of hetter management in Paris of the business of government. The outside capital has been a minor factor. Rising confidence induced wealthy French capitalists, whose funds earlier had engaged in a flight from the frane, to bring home their wandering funds to France. Big Stick Has Failed. Some of the leading international bankers in Wall Street have indicated in conversation that the effort of New York and London to use their lend- ing power as a big stick over France has failed. They hold that, if France now ratifies the deht agreements. it will be because the French authorities are convinced it is good business and good politics, rather than hecause of capital starvation. One partner in an international banking firm was in- {clined to believe that France felt it- self now in a position to demand more favorable terms. Of the loans which have recently been floated in Holland and Switzer- land, blocks have heen hought and imported by New York interests. Besides there have been larger pur- chases in New York of stocks of French companies. The effort of such purchases is the same as an export or loan of eapital to France. There have alto heen some advances to France from Canadian sources. It is an open secret that some of the big Wall Street investment houses are anxious to see the political atmos- phere cleared so that they will be free to lend to France. Several large houses—apart from J. P. Morgan & Co., which has acted as fiseal agent for France and which has headed the syndicate which brought out the various French gov- ernment dollar bond issues—are tak- ing a more optimistic view of French credit and will make a drive for French business when it becomes po- liticallv possible to do so. Little Hope of Modified View. There is little hope in the finan- cial district that Washington will mod- ify its attitude toward French financ- ing until the French Parliament acts on the debt funding proposal. Shortly after the armistice, the State Department inaugurated the extra-legal policy of expecting Amer- jcan banking houses to consult it concerning loans to foreign govern- ments. The successive Secretaries of State made it clear that they would not feFmally -approve .any proposed issue, but would indicate disapproval 1f there were any. Former Secretary Hughes clearly outlined the new technique. When proposed issues were submitted, the State Department consulved the Department of Com- merce, and would cxpress oé:gponmnu if any issues came into cohflict with the major diplomatic policies of the government. Mr. Hughes interpreted this primarily as a ban against loans to forelgn governments for milita- ristic purposes. - The ideal of the State Department has been high-minded, no doubt, but has been somewhat difficult of en- forcement. There have been cases where foreign governments borrowed for purely constructive purposes, such as hydro-electric developments or the building of highways and canals. Although the borrowed capital was used for the commendable purposes stated, the loans had the effect of freeing other resources of the borrow- er, including domestic taxation, for purely militaristic purposes. Hard to Keep Tabs. In practice, in personal finance, as in Government operations, it is diffi- cult for the lender to keep tabs on the use of borrowed funds. Most commer- cial bankers believe that is the task of the borrowers. The lenders are primarily concerned with assurances that funds will be repaid. France improved its technical bank- ing position also by inducing its own nationals to sell gold hoards to the government. In connection with France's attempt to put its financial house in order it is well to recail that it was more than two years behind Germany and nearly two years behind England in starting post-war deflation. - However, being so largely agricultural, France should be able to shorten the process. Mean- time, however, it is still stimulating its exports at the expense of low wages to its own population. Thus far in the international as- pects of the attempt of the present coalition government to set France's finances aright, it has been Raymond Poincares’ round. ‘When he was called to save the franc last Summer he was roundly criticized, in Germany particularly, as one who no grasp of economics. Poincare, however, had the wisdom to rely on expert advice. THE BUSINESS OF GETTING AHEAD. ‘Workingmen's Investments. By and large the efficient American theft was committed. 8. Reynolds reported the loss of a | pair of trousers with $35 in mone; and a gold Burlington 21-jewel watch; Willam H. Robinzon, 330 North Payne street, reported the entrance of a colored man in his store and the | theft of a ham, which was dropped when Robinson and his son gave chase. Frank Robinson, colored, is being held for investigation following his ar. rest near Henry and Wythe streets following the robbery of Dewar home. The prints of the rubber boots he wore at the time are said to ha fitted with the tracks left in the snow , around the home of Dewar. A EXPORTS DECLINE. | BALTIMORE, Februa —FExports through the port of Balti-| more last week showed a decline of 31,561,313, compared with the pre- vious week, while imports increased $70,615 during the same period, accord- ing to the weekly report of the col- lector of customs. Imports for the week amounted to $2, .921, of which $1.802,482 was admitted duty free, while ‘exports totaled $968,602. 23 (Spectal). | workingman recefves a larger pur- chasing power than the toller in other countries. This fact explains the un- rivaled consumptive power of the do- mestic market, which sabsorbs more miscellaneous goods per capita than any other country in the world. The prudent worker will use favor- able economic circumstances not only as a means of increasing his pur- chases, but also of augmenting his saving. The worker should allocate a por- tlon of the contents of the weekly pay envelope to the thrift account. He should take out his savings first, and spend the rest, rather than save only what is left over, which is likely be nothing. The workingman's thrift fund represents part of the fruits of past labor saved up for future en- joyment-—or use. The thrift fund is the safety valve which would save him and his family from being dispossessed of their home in case of periods of prolonged un- employment, caused either by general depression or by illness or other per- sonal misfortune, It is the means which would assure competent medi- cal attention for the children in case of illness. It is, in short, the small stake of the ordinary individual in the THE EVENING STAR, WASHINGTON, D. C, W— 1 PRICES UNCHANGED IN CENTER MARKET, Farmers Absent and Most Dealers Plan Early Closing Today. Half-holiday Market today closing of Center induced retailers to get out early in the morning’ for supplies. Because of the holiday, however, the number of buyers wae not great. There also was an absence of the usual number of haulers from Mary- land and Virginia with supplies of eggs, chickens and such produce a farmers have for market at this | season. | Practically all wholesalers ar-| ranged for early closing today, al- | though some few will keep open untif | late afternoon to supply hotels and restaurants. No material changes in prices were reported, this morning's prices | being substantially the same as those | reported yesterday. Today’s Wholesale Prices. ' 1 Butter—Fresh, 1-pound print, 55a 56; tub, 53a54; store packed, 30. Fggs—Fresh, selected, 32 ;_current receipts, 28. alive—Turkeys, 40a42; 5; white Leghorns, 24a rooster: i ung, 65; old, 30a35. K 46a48; old toms, , 28a30; capons, fancy smaller, 30a32 ls, 28a ang, '80a70; old, 23a30; chickens, 32a35, 15a17; veal, 23a26; a28; shoul- ; Hennery, | 20, Live stock—Calves, choice, 18; me- dium, 11a13; thin, 7a8; lambs, 13. el LOUISIANA BERRIES ARE DUE NEXT WEEK ATLANTA, Ga., February 22 (#).— Florida’s corner on the early straw- berry market wil be crowded this week end by Lousiana, the local Fed- eral Bureau of Agriculture predicts in its weekly market report yester- day. The berries will begin moving in carlots from the Bayou State by March 1, the report states, but heavy shipments will not start until later in the month. Louisiana is expected to roll about 3,000 cars of berries this season, it was said. Unfavorable weather of the past week was reflected in both fruit and vegetable markets, the report said, produce markets being unsettied with prices of mpst lnes either steady or tending downward. FINANCING PLAN 0. K.'D. NEW - YORK, February 22 (P)— Stockholders of the Consolidated Gas Co., of New York- at:the annual meet- ing yesterday approved a plan for| new financing of nearly $150,000,000. The common stock will be increased from 3,600,000 shares fto 4,820,000 shares. A new . issue of 3,000,000 ! shares of no par $5 voting preferred | stock will be created and 300,000 | aha;es'o! the old preferred will be re- red. | CARRIES MORE FARES. CHICAGO, February 22 (Special), - ‘The Chicago Rapid Transit R erating elevated ratlways, 228,812,766 customers in the last year, an increase of 5.96 per gent over the year previous. It was the most suc- cessful year in the company’s history. CURRENT SALES GAIN. ST. LOUIS, February 22 (Special).— Sales of electric current for industrial purposes have been one of the im- pressive features of business in this territory. In 1914 industries pur- chased 1,900,000 kilowatt hours. In the last year purchases were in ex- cess of 200,000,000 kilowatt hours. The improvement is continuing. wage earner, who is likely to be un- trained in the ways of finance, should set out to attain first of all safety of principal and assured regularity of in- come, The amateur can get impartial ad- vice from such agencies as a conscien- tious local banker, from an official of the Better Business Bureau, or from a competent fiiancial editor. The death rate of new ventures is exceedingly high, High ylelds and extravagant promises are signposts indicating the road to danger. Any securities yielding more than the cur- rent return on United States Gov- ernment bonds entail degrees of addj- tional risk. As a practical matter, some of the better grade non-Govern- ment securities, however, are safe and are entirely suitable for individuals In quest of genuine security. Since the war, with the rise of the small investor, it has become rela- tively simple for the working man to get sound advice as to what securities he should buy. Some enlightened cor- porations, such as the Western Elec- tric Co., have employed officials to advise employes expertly about their personal financial problems. A more difficult problem is that of control- ing dangerous impulses, extravagant tedencles and slovenly habits in his own household. Thrift is seldom likely to be effective unless it becomes automatic. It is better to save a dollar a week, for example, than two or three dollars one week and nothing the next. Man is ascreature of habit, and goad habits can become a part of the individual's automatic equipment. Insurance First Necessity., consideration. Unless the individual can afford the luxury of frills, the ordinary life policy is always the most attractive. A savings bank account, which represents a share in a diversi- fied collection of high-grade invest. ments, should come next. Though the ield is only 4 per cent. The element of safety 13 high and the fund can ordinarily be immediately drawn upon in case of emergency. Building and loan shares, which offer a means of saving a definite amount each month from $1 up, and also facilitate the ownership of a home, are convenient vehicles of thrift for the individual of small means, who in this way oan accumu- late systematically in amounts from a dollar a_month upward. Except for shares of the company for which he works, the workingman, as a general rule, should avold ali stocks and bonds which are even moderately speculative. He should shun promotions and untried schemes. He should select primarily sound honds and perhaps a few preferred stocks and should buy them through his savings bank, commercial bank, or through a broker recommended either by a banker or some other im- to pass upon the ethics and financial standing of the broker “Some vault!” they say, when they see the i Life insurance should he the flmi‘ partial individual equally competent | [u] a a a o o 8] o s} (] o o a a : AMERICAN BOND Betablished 1904 goooooooooooo HOME FURNITURE LOANS HOME OWNERS Up to $200. within one day if you buyibe o home. 63, intetest and Drok- erage. No red . We take 2nd. 3rd or % Bringln what paperyou bave o e oas wp 83 3115, on howsehol me. furniture. 4 small semi- urniture. Al money repald small scm. iy ayment. Real Eatate Small Loan Co. Farniture Loan Procurement Ce. 1406 G St. N. W. Room 702 oooooooooooooo Ooooooooooooo We will gladly receive and give prompt attention to applications for Loans on Washington Real Estate Current rates of inter- est. Should you have Money to Invest —we can also take care of you. Our experience, ex- tending over a period of Thirty-five Years —insures your protection, Percy H. Russell Co. 926 15th St. N.W. Provision made for payment of District of Columbia . Five Mill Tax MATURITIES: 2 TO 12 YRARS MORTGAGE (0. Incorporated N GAPITAL & SURPLUS OVER 89,000,000 N . 17th and H Streets, N. W, Washington, D. C. = |~ AN OLD RESPONSIBLE NOUSE New York * Clevsland | St Lowie N Please send me, without obligation. ) complete_information rding the T Bonds you are offering. Name. Address Mortgage Money Loaned at 5% to 6% Tyle;: & Rutherford Toan Correspondgnt Mutual Benefit Lite . Co. 1520 K Street = Main 475 svesesoses 6% First CONSULT US olor safe investment of Jour, surplus funde; Leok o NOW. l\"m‘.‘ll‘ Saunders Co. Morlgnes 1887 1433 K Notes R athington. D. €. A A s Continental Trust Co. 14th and H Streets Capital $1,000,000.00 Checking Accounts Savings Accounts Time Deposits Foreign Exchange Commercial Credits Travelers’ Credits Travelers’ Cheques Acceptance Credits Collections Real Estate Loans Collateral Loans Investment Securities Corporate Trusts Individual Trusts \ Administrator, Executor Safe Deposit Boxes Continental Trust Co. 14th and H Streets Capital $1,000,000.00 the futurs by invest- TUESDAY, FEBRUARY 22, 1927. | First Deed of Trust LOANS Il Reasonable Interest and Commision Prompt Replies to Applications JAMES F. SHEA 643 Louisiana Ave. N.W. The Great ROXY THEATER of - NEW YORK CITY Will Open Soont 9%—10% Conservatively estimated turns on Class A Stock re- Invest Now Bennett, Bolster & Coghill Incorporated ‘Washington Office 824 Invest. Bldg. Frank. 281 Send Me Illustrated Booklet Name Address A Third of a Century's Main 2100 Apartments —are they earning the full,, regutar profit that they should? Perhaps un- necessary costs and im- perfect systems are cut- ting down your income from them. Let us ana- lyze them for you; man- age them for you; make them pay you. B. F. SAUL CO. 925°15th"St. N.W. el il # il apartments ol Life In = M urance Company No Appraisal Charges No Fees for Settlement Prompt action on houses, and business properties in the D. C. and nearby-Maryland. LOAN DEPARTMENT W. L. King, Manager 1417 K Street—Main ELPS 9300 5,000 Shares THE DISTRICT NATIONAL SECURITIES CORPORATION 7% Cumulative Preferred Stock (Par Value $100 a Share) Dividends Payable Quarterly January 1, April 1, July 1 and October 1 Are offered to the public at par, redeemable at the option ot the Corporation on any Dividend Period, after three years from. date of issue, at $110.00 and accrued dividend. e CAPITALIZATION e oy 7% Cumulative Preferred Stock (Proferred as to Assets and Dividends) futt, Ir. dents Rogers rer Authorized .... e To be issued at this time. .. Unissued Common Stock, 10,000 shares, without rqr value, held holders of the District National Bank of Washington. for the benefit of the stock- ‘-Iv=" rneys o 5 1. Gofton Secretary DIRECTORS BUSINESS—This corporation s by ds of Trust on real est: mate trict of organised for the purpose of purchasing nnga secured o, builders loans, underwritinge and 81100 6ther 1 < ncing as is authorised by the charter. This stock will be tax free as to. Dis-: el ETDIS ey ias Bl ot ML P e vy stosphasry ore an 'ty per cen the 2l 0 o e o A PR ok e useid poron’ 1o, wow efored 1o the publle, subjeot to allotment. - At i Stock allotted may be paf@l for in full or 35% upon request and 36% each month there-: after until fully patd. . 6 Al tion will be made to 1l Exol ge. Soehia, Evana, Ir. oshus 3 twood M. Flsher 07, Gockster . Harper s, Hotmaller (Interest at 1% to be allowed on.ull payments from date of peyment FINANCIAL. RY CLEANIN ity 2 o G 007 m‘,:gi ." "'5:110 ':a:m Nw. Par Remeite Moty fleg. tior, 1018 16 costs 1010 Vermont Ave., Rm. 508. Maln 2008} The New York Life Insurance Com Offers to Make o First Mortgage Loans On Improved Real Estate in the District of Columbia and Nearby Suburbs in Montgomery County, Md, for 3, 5 or 10 year terms on your 51/3% A RAaxDArXY. H. HAGNER & UOMPANY MORTUAGE LoAN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 Home Apartment Office Building Business Property Harriman & Company TRINITY BUILDING, 111 Broadway, NEW YORK MEMBERS NEW YORK STOCK EXCHANGE TRANBACT A GENERAL BROKERAGE AND STOCK EXCHANGFE BUSIN®SS WASHINGTON OFFICE 729 16th Street NW. Telephone: Main 1603 FIRST MORTGAGE MONEY We are interested in placing Mort- gages in any amount on desirable property. Construction loan applica- tions invited. Low rate of interest and commission B. F. SAUL CO. Main 2100 925 15th St. N.W. Capital & Surplus, $3,000,000.00 Getting On In the World {The more dollars you keep in bank, the farther up the ladder of success you'll get. {{We're paying interest to over 47,000 patrons and will be glad to have you become a customer. §S Deposits welcome in any amount—same rate of interst paid on small and large accounts. National Savings & Trust Co. Oldest Savings Institution in District of Columbia Year Cor. 15th and New York Ave. George Washington Advocated Thrift He eaid, “Thrift makes happy homes and sound nations ; instill its principles deep. Thrift is the major element of success today just as it was 150 years ago. However, it is in- finitely easier to safely invest your savings to- day than it was in Washington's time. Our First Mortgage Securities are a me- dium of Investment that have always proven absolutely satisfactory to clients. Of course the stability of the medium secur- ing our investments is almost entirely responsi- ble for this. Washington Real Estate enjoys the protec- tive benefits' of Governmental inetitutions and activities. The Improved Real Estate securing our First Mortgage Notes is located in the na- tion's capital. First Mortgage Securities ;. | far flung wealth of the United States. WILKES-BARRE —The anthracite | It is a fund to be nurtured carefully oparators ate joyful whenever they at the outset and protected for the see a holiday in the offing. Dem:ind lel'flr'nnuil uses of the workingman and has been weak and stocks have been | his family. piling up. Some mines werc c'osed In selecting particular bricks to put ‘from Saturday to Wednesday. into his Investment ‘Mtructure, the Super-safe Safe At The “Federal-American” We Have a Box for You