Evening Star Newspaper, June 2, 1929, Page 79

FINANCIAL BANKERS REVEAL GONTEST WINNERS ~ Misses Krieg and Lau and J. R. Keener Submit Prize BY EDWARD W. W. Spaid, past president of the District of Columbia Bankers' Associa- tion and chairman of the committee of judges, yesterday announced the win-, ners of the anrual essay contest for ! 1929 as follows First prize—Miss Catherine M. Krieg of the Riggs National Bank Second prize—Miss Esther R. Lau of the Riggs National Bank. Third_prize—John R. Keener of the Riggs National Bank: | The subject chosen by the District of Columbia Bankers' Association for the essay_contest this year was “Methods by Which a Bank May Best Protect It- self Against Fraud,” and the members of the Washington Chapter of the American Institute of Banknig who were eligible to enter the contest were in- structed to develop in the essay, first, the methods which a bank may devise to protect itself against fraud in its dealings with the public only, and sec- ond. how employes may co-operate in | making such safeguards effective. | The contest was open to all members | of Washington Chapter who are em- ployes of banks which are members of the District of Columbia Bankers' As- | sociation, and the papers were limited to 3.000 words. Papers Read at Convention. Under the rules of the contest, the essays bore fictitious names which con- cealed the identity of the authors, and in a sealed envelope sent to the secre- tary of the association, each author gave his real name and address and the fictitious name signed to the essay. In | this manner there was no way of know- ing the names of the winners until aft- er the award had been made. Only seven essays were turned in this year, :\nr\mlls\ml!y small number for the con- est. Serving with Mr. Spaid of Hibbs & Co., as judges of the contest, were two other past presidents of the District Bankers' Association, Howard Moran, vice presi- dent of the American Security & Trust Co., and Joshua Evans, jr. executive vice president of the District National Bank. It is understood the judges were unanimous in the awarding of the prizes. As it is a part of the regular program at the annual convention of the Dis- trict of Columbia Bankers' Association, which will be held this year at Montauk Point, Long Island, June 20 to 23, the three winners will have the honor of reading their papers at the forthcoming convention. Miss Krieg, winner of first honors this year, won the second prize a year ago, but it is the first time that young women have won two of the three awards. Stephenson Announces Topic. “Watch Your Step” is the title of the address to be delivered by Rome C. Stephenson, second vice president of the American Bankers' Association and vice president of the St. Joseph County Savings Bank of South Bend, Ind., at the coming convention. This address will be of particalar interest this year in view of the fact that it covers the subject of crimes against banks, and is in line with the essay contest of Washington Chapter, results of which are announced above. Mr. Stephenson has stated that there have been many ingenious schemes and methods of defrauding banks that are of sueh character that in most every instance many are successful. He has been investigating a number of very dangerous schemes that have been successfully worked and he will explain to the banks the methods and steps that should be taken to prevent their successful operation. In his communication to Mr. Siddons, chairman of the program committee, he states: “I believe if officers, employes and tellers were thoroughly familiar ‘with these plans and schemes and they adopted means to prevent the culmina- tion thereof, a great deal of money could be saved to the banks.” ‘The association feels that it has been very fortunate in securing Mr. Stephen- son as one of its speakers. As Pole Sees Future Banks. John W. Pole, controller of the cur- rency, in_discussing the future of the national banking system, said recently in Trust Companies Magazine: “Banking in ‘the future will be in the hands of prefessional management. This applies to banks of all classes, whether city or small town, because banking in its essence is the same whether the population served be large or small. The very nature of our eco- nomic life, which expresses itself through corporate organizations and in mass production will naturally de- mand of the smaller banks the same standards and type of banking s=rvices which have been demonstrated as sound and efficient by the larger city banks. “While the need for a higher train- ing is increasingly demanded for mak- ing commercial loans upon the proper credit basis it is in the newer fields of banking—the trust business and the securities business—where _technical training and specialized experience are emphatically the essential requirements for. success. It is in these two flelds that there is likely to be the greatest future expansion in banking and those banks will maintain the largest growth which equip themselves technically to meet this opportunity. It would be worse than useless for & bank to em- bark ppan them with an amateur man- agemen Insurance Reservations Already In. Members of the District of Columbia Life Underwriters’ Association are look- ing forward with great anticipation to the national convention which con- venes here next September. Quite a number of hotel reservations have al- Teady been made for the event even at this carly date. John F. Cremen is general chairman of the association's | general convention committee. At least 2000 of the leading life in- surance men of the country are ex- pected to attend. Last year the meet- ing was held in Detroit, there being between 1,200 and 1500 present. It| is hoped fo make this year's gather- ing the largest in the history of the national asscciation, the National Capi- tal being expected to prove a great drawing card than have any of the other entertaining cities. L. Baldwin, who recently con- d his term as president of the al Life Underwriters’ Association, is chairman of the hotel committee for the convention. Members of the other committees, published recently, are already hustling to make the Fall mzeting a complete success. Heard in Financial District. Bank clearings in Washington dur- ing the week ending May 30, a holi- day week, totaled $21,223,000. against $27,354,000 a year ago, a decline of 1.9 per cent. Baltimore reported a drop of 11 _per cent for the week Peoples’ Drug Stores 6! per cent preferred stock sold ex-dividend during ihe week, the dividend of 15 per cent payable on June 15, Haynes McFadden, who attended the Bankers' convention last year at Mon- tauk, has been re-elected secretary of the Georgia Bankers' Association. ~Mr, McFadden is a magazine editor. ‘The Washington Stock Exchange will Tesume operations tomorrow after a quadruple holiday. Accumulated crders should make it a lively session. . Made Vice President. Hambleton & Co. announce that Robert L. Randolph has been elected & vice president of the company. Essay Victors Upper: CATHERINE M. KRIEG. Center: ESTHER R. LAU. Lower: JOHN R. KEENER. REDISCOUNT RATE RAISE IS DOUBTED Big Cut in Brokers’ Loans Alters Situation on Credit. Special Dispatch to The Star. NEW YORK, June 1.—The_record decrease in brokers’ loans, so much larger than had been expected, again throws into doubt the question of an advance in the bank rates. If the motive for raising the redis- count rates was to bring about liquida- tion in the stock market the events of the week have gone a long way toward that end. If it was to reduce the amount of credit absorbed in specu- lation, the loan figures released after the close Friday would indicate that, ;;oc.lhad been accomplished, in part at east. Reserve Ratio. Study of the condition statement of the reserve system makes it more plain than ever that there is no reason for a higher rate in the situation of the reserve banks themselves. The New York bank’s reserve ratio is at the highest of the year and 13!; points higher than a year ago. For the sys- tem as a whole the reserve ratio is down a point and a half from where it was last week, which, however, was the high point of the year, and yet it is more than 5 points higher than it was at the corresponding date of 1928. Gold reserves are slightly lower than they were a week ago, when they were at the highest of the year. ‘There been an increase in re- discounts for the 12 banks which amounts to $83,786,000 on the week, bringing the total to $998,194,000, com- pared with $943,791,000 on May 29, 1928. The increase has been partially offset by selling of acceptance holdings, the total for which is at the lowest in many years, and by disposal of Gov- ernment securities so that total hold- ings of bills and securities are only about $55,000,000 up on the week, and this at the month end. Commercial Paper. Advocates of an increase in the dis- count rate from 5 to 6 per cent base their case on the rates for commercial paper, which are a full 1 per cent above the bank rate. This, they say, is an illogical situation. Some light will be thrown on the situation by the course of money rates next week. If the first of the month requirements are met without any more strain than has already been experienced, it would seem that any change in the bank rate could be postponed still further. POLAND WOULD IMPORT U. S. COTTON DIRECT By the Associated Press. LODZ, Poland, June 1.—The Polish import of American cotton to the cot- ton mills of Lodz, which use million of dollars’ worth of the white staple. Heretofore all cotton shipments des- tined for Poland have come through the German port of Bremen, and Ameri- can dealers have seldom realized that they were really selling to Poland. From the shipping lines, Polish au- thorities learned that freight rates for cotton would be the same to Danzig to Bremen. Catches FiVSh Long as Self. Seeing a salmon lying between two a Glasgow, Scotland, boy, grasped it by the tail, but it slipped out of his grasp Rubbing his hands in sand Patrick tried again and landed the slippery prize. The salmon was nearly three feet in length, about as long as the boy. It was the biggest fish caught in the vi- cinity of Glasgow in years. Carolina Students Will Come to Hear Congressmen Argue The lifelong ambition of 19 students of a little schoolhouse in Hendersonville, 8. C., will be realized when the party arrives on a visit to the National Cap- ital Thursday after completing the trip in a bus. The trip is the result of a student expressing a desire to “hear Congressmen argue.” The sightseeing party will make several stops en route to Wash- ington and will provide them- selves with camping equipment and camp along the road. The trip was made possible by the activities of the students in selling ice cream, candy and giv- ing entertainments to raise money to finance the project. government is encouraging the direct | and Gdynia, the Polish ports, as it is | stones in the River Clyde, Patrick Ryan, | THE SUNDAY STAR, WASHINGTON, D. C, JUNE 2 1 929—PART 5. HAS STORMY WEEK Many Stocks Now at Novem- ber Levels After Heavy Liquidation. BY CHARLES F. SPEARE. Special Dispatch to The Star . NEW YORK, June 1.—The public| that had been maneuvered into the | stock market at a very high average of prices since the end of last November ! discovers that it has had many thrills and days when large paper profits had accrued, but it has failed to make the promised fortune. g If, during the period, it had pur- | chased various _industrial ~common | stocks and held them until the middle | of this week it would find their average | price was exactly the same as six | months ago. If it had brought a diversi- |fled list of “rails” these at present | Prices would show a loss. The public { utilities, however, would have made money, for most of the active members of this group are well above the quota- tions of a half year ago. This is an astonishing climax to one of the greatest eras of speculation in history, in which more people were concerned, more stocks dealt in, larger market sessions developed and more record prices established for individual shares and groups of securities than ever before. It may be called “the froth period” of the 1924-1929 bull market, 34-Point Drop in May. On Tuesday the average of indus- trials was at a parity with the price ruling at the end of November, or just before the first of the three subsequent major declines. From the record high industrial average of May 4 there was a drop of 34 points. This compared with the average loss in the same group in March of 24 points. Neither of this year's reactions was so severe as that of last December, which was 38 points. However, the slump in December and March was followed by an abrupt rally and successive “new tops” for the pop- ular “equities.” As 2 group the motors are now ma- terially lower than they were six months ago. The coppers are higher than in_ November, but much lower than in March. Iron and steel shares were this week cheaper than in March, but dearer than in November. The rails, with few exceptions, are below the quotations of last Autumn, but their upturn which began on Wednes- day might easily bring them back soon to the late March level. Stocks affected by farm conditions in the West. and the Northwest have latterly lost nearly all of the ground gained during the Winter's campaign. There has been a drastic revaluation of the stocks of airplane companies, of chain stores and various other distributors, of trade mark concerns and of those manufacturing radios and their ac- cessories. On the other hand the vitality of the public utilities is astonishing con- sidering the ratio of price to earnings, while there are selected securities like those of the electrical and chemical industries and certain of the oil pro- ducing and refining companies whose values aparently have not yet been fully discovered by an investigating public. Money Market Calm. The peace that has prevailed this week in the money market, with a 6 per cent call rate day after day, con- trasted with one of the stormiest periods of the year in stocks. So far as the month of May is concerned it will be remembered for the havoc that it wrought to margins and for a de- preciation in stock market values esti- mated at several billions’ of dollars larger than in any other month be- cause of the comparatively slight ral- lies from its low levels in contrast with the immediate recoveries after the December and March declines. And to this figure might be tacked an- other impressive one of depreciated dollars invested in high-grade domestic and foreign bonds, whose average is the lowest since tie era of high money began to affect ity The study of some of the important changes that have occurred in the past six months in the credit and specu- lative markets and their effects com- bined with a study of present condi- tions may assist in forming an opin- jon of what is immediately ahead with respect to rates for money, prices for securities and the volume of trade. When the average of industrial stocks jat the end of November was 293.38, or exactly the same as Tuesday's low av- erage, rates for time money were 7 per cent, for commercial paper 515 per cent and for acceptances 43 per cent, com- paring with current rates of 9 per cent, | 6 per cent and 53 per cent, respective- {ly. Brokers’ loans werc $5,289,900,000, having increased in the year from $3,- 510,849,000. This week they were $5,288,000,000. The significant fact in the trend of these loans during the six months is not the total but its source. In Novem- ber the New York and interior banks were carrying 57 per cent of all of the loans. Those of “other” lenders were 43 per cent. Today, after having cut down their loans by about $550,000,000 —New York institutions alone having reduced 50 per cent—the loans of banks aggregate only 45 per cent of all loans. Those of “others” are 55 per cent. This is the nub of the credit controversy. So far there has been no practical solution of it suggested. Banks Improve Peosition. Between November 28, 1928, and May 22, 1929, the bills discounted by all the Federal Reserve banks decreased $86,- 000,000. The combined holdings of ac- ceptances and Government securities fell off $420,000,000. Gold reserve in- creased $242,000,000. The ratio of total | reserves to deposits and note laibilities advanced from 65.2 per cent to 75.9 per cent. Obviously, the position of the | Federal Reserve banks has materially | improved within the half year. It is a | fair statement that on the basis of the | current Federal Reserve status alone | high money rates are not justided. | Now let us take the additional securi- ties that have been created since the stoek market reached its high level last November. The complete figures for May are not yet available. Those for the five months to April 30 are suf- ciently illuminating. They reach & to- tal for new capital alone, excluding re- | fundings, of $4,593,000,000, or about 50 per_cent more than in the same period of 1929. An analysis of them reveals the fact that of this total $2,750,000,000 were stocks and that between 65 and 70 per cent of all new stocks were com- mon stocks. This compares with only a 25 per cent addition to_common stocks in the 1927-28 period. It is esti- mated that so far this year nearly $750,000,000 or investment trust stocks alone have been either publicly or pri- vately placed. ‘The weight of this great mass of new | stocks has finally made its impression on the general market, so we are today nearer to the condition described by the late J. P. Morgan a quarter of a century ago, of “undigested securmes"‘ than we have been since in so far as| common stocks are concerned. The cure | for such a condition is similar to that in all ailments of the digestive tract, merely, a period of rest and abstention from more new stocks. Farm Products Slump. A marked change has also occurred within the six months in the country’s agricultural situation. This week cash wheat sold at the lowest price since 1915. Around 93 cents & bushel it com- pared with $1.22 a bushel a few weeks after the election. In ¢h: same period | corn has declined from around 91 cents ito about 78 cents and oats from 48 cents to about 38 cents. Compared with Spectal Dispatch to The Star. NEW YORK, June 1, 1829. Stocks (average of 50 issues).. Bonds (average of 40 issues) Foreign bonds (average of 10 issues). Federal Reserve ratio Money rates in New York: Call . Time Unfilled steel, orders Pig fron production. .. Building permits: Number of cities. Amount Commercial faflures (R. G. Dun & Co. Number .. Liabilities venue car loadings: All commodities.. Grain and grain pi Coal and coke. Forest products. Miscellaneous prod Ore .... Live stock. ucts . 5580 . $538,446,781 WILD BULL MARKH Week’s Financial Highlights Last Week. High. Low. | 247.90 24233 Week. | 87.39 ‘This Week. High. Low. 238.67 233.18 This Week. Last 86.71 . v 104.36 ‘This Week. Last .- 185 Veck. Year Ago. 75.9 68.9 This week. Last week. /6 6 .82 t09 Month of Mar., 1929. 4,410,718 119,822 Month of April, 1928. | 3,872,133 | 106,183 | Month of April, 1929, 4,427,763 122,087 582 590 | $407,365,423 $347,949,526 | reports) : 2,021 1,9 87 i $36,355,691 1,818 $37,985,145 Week of May 18, 1929. Previous weck. Year ago. 1,046,179 26,305 25,231 EASE IN CREDIT CONDITIONS HELD TEMPORARY BY BANKERS Drastic Liquidation lieved Strain in of Stocks Has Re- Money Market. Further Stringency Feared. BY 1. A. FLEMING. Unquestionably the drastic liquida- tion in the New York stock market has brought about easier credit conditions, but the general impression among bankers is that the relief at this time, while welcome, is but temporary and that within the next 30 days there will be another period of stringency. It remains to be seen whether stocks are to centinue slow during the rest of the Summer, but, in the face of conditions that are understood by the trading element, it would be noth- ing more than natural if the present dull see-saw market should remain. July 1 is the danger point for tight money from the viewpoint of the Street. Hundreds of millions must be gathered together for the payment of dividends and interest due at that time. ‘The maturities are a factor of im- portance, but probably more important than anything else will be the financ- ing of “rights” to subscribe to new stock, Pennsylvania being the most important, with Chesapeake & Ohio second in line. It is estimated that over a billion of dollars will be needed for “rights” which must be exercised by July 1, and with other disbursements some- thing like two billlons will be needed. In view of these facts it is not likely that the bankers will permit the bulls to run away with the market, but rather that a stiff control will be maintained over rates in preparation for the disbursements and it has been finally demonstrated that rates are ef- fective in reducing loans. Distribution Will Ease Raf Immediately following the distribu- tion of the July 1 funds money should again_find its normal level. Investors will be seeking security investments and it is likely that many of the less important will seek to place their funds elsewhere than in New York. It would seem as if funds might be used to some advantage in home mar- kets that have not enjoyed the great boom that Wall Street has—investments regarding which they might have a personal knowledge and be possessed of more intimate facts concerning the operation and earnings of corporations that they can never hope to intimately know on Wall Street. Take the local market, as an example. There have been few advances during the past year and yet with the money stringency in New York reflected everywhere, some local securities shaded into new lows for the year. While it may not be the right time to buy just now, a recovery in prices before the close of the year seems| assured. As certain dividend payers | as the preferred stock and bonds of the Potomac Electric Co. have declined with others less firmly fixed as to meet- ing payments. -Railway preferred, a sure 5 per cent payer has gone off several points. Probably the worst that can happen to the Capital Traction stock would probably be a cut in the| dividend from a 7 to a 6 per cent basis—and that, too, in the event of the ultimate fallure of the proposed merger, while the actual success of the plan would start the stock on the up- grade and probably result in a saving | that would permit of continuation of the 7 per cent payment. Capital Traction shares are selling| down in the middle 80s, and give an | excellent return even for these days| of tight money. It is admitted that the | company is not earning its 7 per cent dividend, but it still has a large sur-| plus in cash and seems willing to go along with its shareholders as long as possible. In the meantime the powers that be will move strongly for action for the merger. Mergenthaler seems to have settled on a basis of 6 per cent regular dividends with i per cent extra quarterly, but some of the directors are known to favor the establishment on a permanent 6 per cent basis and to continue the extras that have been featured this year. The technical position of Mer- genthaler, with a large cash balance in the bank, said to be nearly if not quite $1,500,000, investments valued at nearly as much, not a dollar of funded debt, not a bank loan and with its new building completed and paid for, is unquestionably strong. All this may look like publicity, but it is a simple statement of fact. Lanston is in excel- lent physical condition also, but its price is_considerably higher than for Mergenthaler and the stock is held closer. Bank“stocks have attracted less at- tention of late and are perhaps slightly lower on the average. There. is no especial cause for this other than that the fact that they have been selling for some time on a low dividend return basis. Judging by the first four months of the year and anticipating a con- tinuation of the demand for credits, 1929 should be one of the best years of many from the standpoint of profits earned. Under the greatest co-operation ever undertaken between banks losses through fraud and ill-advised credit are being kept down to minimum proportions. ; Bankers are asking their clientele to exercise caution in phoning that so and so, a friend of this firm or similar messages, wishes a check cashed, as a number of recent attempts have been made, some successfully, to cash worth- less paper, and the customer when advised of the matter simply cannot recall such an instance. Net Results of Conventions. Evel ing that has happened in the local rg;gkinfl situation has been di- rectly the result of the 10 conventions of the District Bankers’ Association that have been held annually, ably aided and abetted by the weekly gather- ings of the younger bankers and the ofl?flinls of the association at luncheons. Every movement contemplated is mulled over and over again in all phases and all features until when action is taken it is presented to the association with the fullest particulars and with knowledge that it is workable and right. ‘The first convention had its inception and was put over by the younger bank- ers, now fast assuming their positions as important financial men of the city. As the only press representative of the present day covering that first con- vention at Deer Park, Md., it is inter- esting to recall the difficulties sur- rounding the troubles attending report- ing that convention and one of the present day gatherings. In the first place, there was not an item of advance publicity, save on the time and location of the meetings. Delays in train serv- ice at Cumberland permitted sending back a program, the list of guests. After the convention had been calle to order the first day, it was found that'| there was no wire communication other than telephone with Washington. Earnest efforts for a working hook-up developed the fact that it was almost impossible, but an obliging operator at Cumberland agreed to relay messages direct to the editorial rooms, and in that way stay-at-homes read of the first and probably the most important convention. ‘Three entire days and two evenings were devoted to business and part of one evening to amusement. Today the 50-50 basis is more evenly followed to the satisfaction of the many guests and the social intercourse is of the most enjoyable character. Eugene Thompson, secretary at that time, had charge of the arrangements, and It required all his ability to carry through successfully. Brought Credit Bureau. A credit bureau in Washington, where every banker was suspicious of his neighbor, where secrecy as to a bank's business was considered essential, where unanimity of action on any problem was harder to put over than like action in any other business. Other associa- tions of business men met and took action—established their own bureaus an deut don lowsses, but still some men held aloof from every proposition in_the banking business. ‘Ten years of the close personal asso- ciation found in the association at the annual conventions, at the luncheons and working on committees has worked | wonders. Aloofness is not noticeable today. Where men have come to ad- dress each other as “Bob,” “George, “John,” “Luther,” “Victor.” “E. J. “Howard,” and other familiar names, suspicion really has no place. They get together on any fair proposition, and get there quickly. Prejudice is broken down, jealousy does not exist. If a borrower or a crank or a crook is successful at one bank, every bank in town knows all about it right away. tl’lI;he check kiter is stopped standing still. a year ago, when farm values were moderate, quotations are off 20 to 30 per cent. While the value of farrn( products has been falling, average wages have been rising and the cost of credit, as measured in time money and com- mercial paper in the New York market, | has advanced from about 10 to over 25 per cent. This also affects the farmers’ purchasing power, Overproduction has not been con- fined to securities. It is at the basis 6f the decline in grain. It is responsi- ble for the weakness in automobile stocks, it caused the break in copper metal and that it is threatened in the | iron and steel industry is evident from the emphasis recently directed against | overexpansion there in a speech by Charles M. Schwab. Some of the above factors have ready had a pronounced effect on se- curity prices and have steadily been creating a new speculative viewpoint or psychology. The influence of the others is likely to be felt more as the year goes on. It is possible that we may be nearing the end of the acute money stringency and that with the recent liguidation and the June 15 and July 1 requirements covered, rates may as- sume a permanently lower average after July 15. It is not probable, however, that we will again see for some time so many elements favoring common stocks, particularly industrial common stocks, as those of the past year and a half. Tea Store Sales Gain. NEW YORK, June 1 ().—Store sales of the Grand Union Tea Co. for the four weeks ending May 25 were $2,599,- 077, compared with $2,061442 in the corresponding period of 1928, N\ 'ELECTRICITY DEMAND | IN AMAZING GROWTH| Survey Shows Net Revenues Ad- vanced to $900,000,000 in 46-Year Period. Special Dispatch to The Star. NEW YORK, June 1.—Forty-six years ago, the first commercial electric light- ing company in New York—the Edison Electric Illuminating Co. of New York— was struggling along trying to convince citizens of Manhattan that electricity was a better illuminant than gas. Dur- ing February of that year, 1883, some 83 customers in the vicinity of the old generating plant at 257 Pearl street, New York, were on the company's books. By December, the number had risen to 483, but the company’s balance at the end of the year was in the red $4,457.50. The next year, however, the corner was turned and the industry, starting in this humble way, began growing in a stead- ily rising crescendo and is reaching new peaks year after year. Most striking contrast of the many that can be made over this 46-year period is to cite the $900,000,000 net revenues of the elec- tric light and power business for 1928, compared with $4,457.50 deficit in 1883. ‘This comparison is made by Pynchon & Co., which takes the pending Golden jubllee of Thomas A. Edisons per- fection of the incandescent lamp as oc- casion for an extensive illustrated sur-| m of the electric light and power in- EXNICIOS STARTED CHARACTER LOANS Washington Banker Was One of First to Try Out New Plan. Joseph T. Exnicios, president of the Departmental Bank, has the distinc- tion of being one of the pioneers of the country in establishing so-called character loans and placing such loans on a reputable banking basis. Many years ago, before most. bankers thought of the idea, to say nothing of giving | serious consideration to making such | loans, the Washington banker visualized | the need among people of limited means | of obtaining small sums of money, | using their past records for honesty and integrity instead of high-class stocks | and bonds as collateral. Came Here in 1890, Born in New Orleans and educated in the public schools there, Mr. Exnicios came to the National Capital in 1890. His first position was in the Adjutant General's Office, in the War Department, *| where he was employed until 1907, when he resigned and organized the Society of Savings and Loans. It was a trying experience that turned his attention to the problem of personal loans. Shortly after he reached Washington, and be- fore he had enjoyed more than one of two Government pay days, he received word that his mother was very ill in New Orleans. He had insufficient funds with which to make the trip although he felt he must go at once. The difficulty he had in securing money for the trip brought the small loan problem to his mind so vividly that he never could forget it. He realized that hundreds of other Government clerks were in the same position and could get little aid from their banks without co-signers or good collateral. It is the man of ordinary means and not the millionaire who most needs help, he kept saying to himself, and as soon as he got firmly established as a banker, character loans became numerous in his bank. Long before Charles E. Mitchell and the National City Bank entered the small loan field, Mr. Exnicios was ac- commodating his depositors in that way. He has continued to make such loans for years and many other Wash- ington banks are now doing likewise. Inquiry From New Zealand. Several months ago a copy of The Washington Star containing a small loan advertisement of the Departmental Bank reached New Zealand. The other day President Exnicios got a letter from a New Zealand banker asking him for all the detalls on such loans, adding that they wished to put the system into effect at once. Mr. Exnicios is a member of the Monday Evening Club, Congressional Country Club, Masonic Fraternity and lives in Chevy Chase. He is an en- thusiastic member of the local bankers’ association and rarely misses the weekly gatherings of the luncheon group at the Willard. FRANGE AGITATED Writers Discussing Possibil- ities of Their Nation’s Americahization. By the Associated Press. PARIS, June 1.—Is France becoming Americanized? is the question which Frenchmen are asking themselves rather often recently in press articles and in conversation. Some “view it with alarm” o}.h’em welcome it with varying degrees of joy. Plerre Denoyer, a young editorial writer in the Liberte, who spent sev- eral yeass in America, is the latest to make the query. He replies “yes” and rather .pgxr-oves it, saying: ‘“The +‘Trial of Mary Dugan’ and ‘Showhoat,’ are two of the most suc- cessful plays at present on the Paris stage. Only a short time ago ‘Broadway’ was with us. We cannot enter a music hall without recognizing several skits that have come direct from the United States. Every movie proprietor assures us that without the American reels they might as well close their houses.” ‘Then reverting to other phases of American life, Denoyer says: “The Academy of Medicine proclaims the poisonous nature of cocktails, de- ploring the elegant habit that is spread- | ing in our society of absorbing the ful- minating American mixtures. “Our grocers sell by the basketful the grapefruits that traditionally go with American breakfasts. “Wide brimmed men's hats, straight from the American West, and the square toes shoes, the jazz tunes and the phonographs with their records; loaded with the melancholy tunes of the black belt, all of these things that make the charm of the United States are to be found in France.”« He concludes: “Are we becoming Americanized? We are acquiring tastes | and habits that we think are only mod- ern, but which are, as a matter of fact essentially American. Whatever one may say, the United States now is at the front of our civilization, the one which in the past has assured the dom- inance of Europe over the rest of the world. Albejt we may not have the wish to Americanize ourselves, we are inevi- tably on the way to modernize ourselves in the American manner.” NEW JERSEY FIGHTS EUROPEAN CORN PEST! Plan to Combat Borer Consists of Creating Thick-Stalked, Short- Season Variety. NEW BRUNSWICK, N. J. (®.— Hundreds of miles from the great corn belt, New Jersey is perfecting a plan to defeat the European corn borer. It consists simply of creating a thick-stalked short-season variety of corn. An extensive test of more than 70 strains of standard corn varieties was begun at the New Jersey Agri- cultural Experiment Station in 1928. The strains under test are from all parts of the corn-growing sections of the country. By the time the corn borer invasion is -serious in New Jersey officials be- lieve their tests will be far enough along 'to make definite recommenda- tions of varieties resistant to the pest or else of 50 short a season as to make attacks_unlikely. Dr. H. B. Sprague, agronomist at the experiment station, believes late plant- ing, too, will prevent injury. Adult borers Will be forced to lay their eggs before corn comes up. In that, short- season strains will be beneficial, Corn is one of the New Jersey farmers' most important fleld crops. It has an annual value of about $8,- 000,000. . A new fad amongst feminire Paris is tiny black helmet hat with transpar- ent black eye-veil to which is attached two large crystal rings so that they hang just below the ears. 4 OVERLL . NROALS FINANCIAL 1 | I Loan Pioneer | 1 | { | ! \ | /| I | | JOSEPH T. EXNICIOS, President of the Departmental Bank of | this city, who was one of the first bank- | ers in the United States to institute “character loans.” SUEAR ANDCEMENT INDUSTRIES ADED New Tariff Bill Also Affects| Foodstuffs—Farming Proposals Fail. By the Associated Pre: Easily first in the list of National Government actions touching the world of commerce this week was the enact- ment by the House of the Hawley tariff bill and its consignment to the Senate for completion. Aside from political controversy, the measure, as drawn, set forth a policy of higher tariff against imports for adoption by the country, exemplified in sugar, cement, shoe leather and food- stuffs schedules, though failing to set up new principles, demanded by the farming interest, by which higher rates would have been levied on by-products of agriculture now coming in at low rates or entirely free to be treated as industrial raw material. Only assent by the Senate, and by President Hoover, will confirm the trends which the House approved for tariff Igeislation. Return to Normal Seen. A cessation, probably complete, in concern about Federal Reserve influence on credits for speculation and other purposes, was noted during the week, chcmmg with & price collapse in the stotk and grain markets that wiped out supposed demands for increased bor- rowings. The Washington view was that a return to normal had been ob- tained, and this was confirmed by the board report that brokers’ loans in New York had dropped $232,000,000 for the week. “Commercial _transactions _for the week ending May 25 as yeflected by check payments were higher than either | the preceding week or the correspond- ing week of 1928, said the Commerce | Department summary of the business situstion at home and abroad. “Steel planfs showed a decline in ac- tivity from the previous week, but were much more nctlved than during theé Codre' respondiny riod a year ago. Cru pem?g!elxmgoupt;ub for the latest reported week showed an increase from both prior periods; the output of bituminous coal declined from the previous week but was larger than for the same week of 1928. The primary distribution of goods, as reflected by loading of freight cars covering the latest reported week, was substantially’ higher than a year 0. ‘g"The general index of wholesale prices was unchanged from' the preceding week, but was about 4 per cent lower than a year ago. Iron and steel prices were also the same as during the pre- ceding week, but were higher than for the same period last year. Cotton prices receded both from the previous week and from a year ago. Wheat prices were also considerably lower than last year. Loans and discounts of Federal Reserve member banks show- ed a fractional recession from the pre- ceding week, but were higher than a j year ago. Interest rates on call loans averaged much lower than in the pre- vious week, but were higher than a year ‘ago. Time-money rates averaged higher than in either period. Prices| for stocks averaged lower than in the previous week, but were higher than a | year ago. Bond prices were lower than in either period. Business failures were | less than for either the previous week or a year ago. Depression in Argentina. “Receipts of wheat, cotton, cattle and hogs during the week ended May 18| were lower than a year ago. Receipts| of cattle and cotton were also less than | for the previous week.” | In South America, low grain prices were said to have contributed to a seasonal depression in Argentine busi- | ness, though Chilean conditions were | asserted to be good. Eastern Canada was found to be better than Western, from a commercial viewpoint, on re- ports available during = the period. Europe and Asia for the week furnished | little material for dealing with in the official trade observatiohs. U. S. CONSTRUCTION WORK SHOWS GAIN IN WEEK | Special Dispatch to The Star. NEW YORK, June 1—Last week's total for all classes of heavy construc- | tion jobs contemplated throughout the | country is valued at'$65,250.000, agairst | $64,350,000 in the corresponding period | last year, Construction Daily reports. Dock improvements to be made by the | Hocking Valley Railroad at Toledo, Ohio, to cost about $6,000,000, was one of the largest projects reported during the week. = - Pender Votes Extra. NEW YORK, June 1. (Special).—The. board of directors of the D. Pender Grocery Co. has declared an extra divi- dend of 25 cents per share on the| class B. stock, as well as the regular quarterly dividend of 25 cents per share, payable July 1 to stockholders of rec- ord June 15. Gainers and Losers PACKING INDUSTRY INPRIGE STRUGGLE |“Big Four” Faces Stiff Com- Cra REY petiticn Frocm Growing Chair Stores. Special Dispatch to The Star. NEW YORK, June 1.—The big four in the packing industry—Swift, Armour, Cudahy and Wilson—are in a quandry. Probably never has “big business” voluntarily hobbled itself more effec~ tively than the big five did on Feb- ruary 27, 1920, when Swift & Co., Ar- mour & Co., Wilson & Co., Morris & Co. and the Cudahy Packing Co. agreed to_the now famous consent decree. By this the big five then (big four now, as Morris since has been taken over by Swift) hog-tied themselves in three particulars. First they were pro- hibited from ever establishing retail markets. Second, they were debarred from handling so-called unrelated lines. Third, they were prohibited from owning stock yards. At the time of the signing of the decree by the “big five” and the United States Government there was much agitation against the packers. Live stock shipping associations and farmers complained bitterly that through the ownership of stock yards and terminal markets the large packers were able to control the price of live stock and to depress these prices when- ever they so desired. Grocery Interests Complained. Wholesale grocery associations like- wise entered compiaints to show that their interests were threatened because the meat packers were able to give better service by their ownership of refrigerator cars. Little did the big five packers realize what was in store for them. At the time they signed the decree a new force in the retail field had just begun—the chain store. There were then com- paratively few of them—about 27,000— and they were widely scattered, doing a gross annual business of $725,000.000. Now there are three times that number, doing nearly $7,000,000,000 worth of business. The sales of the largest sin- gle chain ekceed several hundred million dollars. Another thing. Where 10 years ago the live stock shipping associations were demanding that the meat packer be limited in his actlvity, the last 12 months have seen surprising changes in this regard. One live stock shipping association after another has passed resolutions urging the large packers to enter the retail business. Twenty of thé largest in the country have already passed such resolutions, on the ground that they might further reduce the number of profits taken between the producer of live stock and the con- sumer of meat. In 1924, the American National Live Stock Association, one of the largest in the United States, passed a Tesolu- tion in favor of the consent decree, to limit the packers. In its meting this year it passed a resolution ask- ing a modification of the consent decree, for the reasons above stated. But resolutions will do no good. The i packers have signed the decree and their hands are tied. The United States Supreme Court has ruled that they cannot undo what they have voluntarily agreed to. What is the situation today? The largest chain of grocery stores now has about 2,500 meat departments. It has already announced it will double that number within five years. Another chain has 3,000 meat markets. Chain Business Is Large. Chain groceries do about 35 to 50 { per cent total grocery business of the United States. That figure is mount- ing. every month. New retall meat selling chains are being developed in all parts of the. country. One chain owns and operate two very large meat packing plants. Another has just install- ed one of the largest and best sausage factories in the world, and the business has only started. But the meat packer must sit idly by and watch this development in his fleld—he can take' no acive interest it. Chain stores at present are doing about 15 per cent of the retail meat business in the United States. The | chain stores, as they expand, inevitably operate their own wholesale houses. Many operate bakeries. As a result many of the wholesalers have been forced to “door to door” selling to dispose oOf their goods. With the big packers thus limited the little packers have been moving rapidly ahead. There are 50 meat packers in the United States who do a gross annual business exceeding $25,- 000,000 each; there are more than 25 meat packers each doing a business of more than $50,000,000 annually. Yet the big four have their hands tied. ‘The sales of the big four are not in- creasing. Swift leads the field wita a gross of $950,000,000 annually, fol- lowed by Armour with $900.000,000. ‘Wilson and Cudahy do about $300,000,- 000 each, Enters Packing Business. ‘What is likely to happen? The chain store with its fast-increasing buying power can enter and is entering the meat packing business. It can refuse to buy from the present packers. If knows the packers cannot enter the retail field, and the smaller packe! under the consent decree, can ente: the retail field if they find they cannof do_business with the chain or individs ual store. In fact, this is just exactly what is happenin One packer in Seattle hasg already opsned a number of retail stores and has announced that he ex« pects to estaolish at least 50 retail stores on tne coast. The consent decree was entered be- fore the passage of the packers and stockyards’ act. This legislation was put on the books to give the GoOversm.. ment power to control the big packers should they show a tendency to go be- yond the provisions of the existing law, but today this act merely is added to the consent decree to make the situa- tion for the “big four” even more dif- ficult. ‘The big four have not asked a modi- fication of the consent decree, yet. They fully realize the difficult conditions under which they are operating at pres- ent. Should the decree be modified— and it can only be modified with the consent of the Government—to enable the packers to enter the retail meat business in line with modern develop- ment, there are many who question whether the big four could compete with the existing chains unless they were allowed to handle groceries in addition to meats. But here again the big four are barred. under the consent decree, from entering any unrelated line of activity. And the grocery busi- ness happens to be one of these lines. ‘The big four have always been noted for their resourcefulness and energy. In Week’s Dealings On Stock Exchange By the Associdted Press. NEW, YORK, .June 1.—More than 200 stocks fell to new lows on the New York Stock Exchange this week. The six most prom- inent to reach new low ground were General Motors, Chrysler, Wright Aeronautical, Case ‘Threshing, Montgomery Ward and Anaconda. Six stocks to establish new highs contrary to the general market trend were Atchisol Topeka & Santa Fe, Ameri Water Works, North American Co., American & Foreign Power, Commonwealth Power and Lud- lum Steel preferred. It will be mteresting to see how they extricate themselves from this situa- tion. For their prestige has not been established by standing idly by and seeing their business taken away from them. (Copyright. 1929. by the North American Newspaper Alfiance.) Celotex Sales Gain. CHICAGO, Jue 1 (Special).—Net sales | of the Celotex Co. for the first six months ending April 30, after deduc- tion of freight, allowances and dis- counts, amounted to $4,534,084.52, as compared with $3826987.21 for the corresponding period a year ego. Neg profits, after all operating expenses and general charges, were $370,338.18, as against $358,400.11 a yehr ago, Twelve monkeys and a baby bear were recently taken by air from Ams- terdam to London.