Evening Star Newspaper, June 30, 1929, Page 71

L3 l FINANCIAL I D. C. GAINS SHOWN INBANK CLEARINGS Business Improves in First Half Year—Stowell Retires. | C. & P. Net. BY EDWARD C. STONE. - Bank clearings for the first half of the present year in Washington in- dicate that business in the Capital is substantially ahead of the correspond- | ing period last year, there being a gain of some $50,000.000 in the checks canceled by the Washington clearing use. Clearings for the month of June were | available yesterday and made a splen- | did addition to the figures for the first five months of 1920, June clearings amounted to $124,028,347.42, against une stightly higher figure of $126,930,689.33 4dn June a year ago. January was the best single month | for busincss during the first half year with April running a very close second. | Banker Retires | M. McK. STOWELL, Vice president of the Lincoln National| Bank and manager of the uptown branch, plans te devote himself to private interests. He has been ‘active in the local banking ficld since 1890, January’s topnoteh clearings amount- ed to £129.438.291, while in April, can- celed checks totaled $120,300,052. Lo- cal clearings in May were ahead of | June, since they totaled $126,836,188. Clearings for the first six months of the present year figure up to $751,047,- 847.18, against $710936,32601 in ihe corresponding period in 1928, rccording to the figures kept by Charles E. Bright, clearing house manager. Business in June, however, has been falling off slightly ™1 recent years, at least a glance at the bank clearings in- dicates that. Clearings in June of last year were higher, as stated above. In June, 1927, they amounted to $127.- 516,336.66, while In June, back in 1926, they were still higher, being $128,361, 071.78. Comparisons by months of the clear- ing for the first half of 1929 and the same period in 1928 are as follows: 1929 1928 ..$129,438,291 §$114,408,832 100,649,040 1034 109,795028 122,284.900 120,019,880 129,300,052 ... 126,836,188 122,796,402 ,3: 126,930,689 124,028,347 Totals .....8751,047.847 $710,936,326 Many bankers and business men will hold that these figures reveal a definite , mercantile expansion in ths eity and that with such a good start in the first of the year, the full 12 months are pretty sure to hang up new records. Stowell Retires From Banking. W. McK. Stowell, vice president of the Lincoln National Bank and man- | ager of the branch office at Seventeenth and H streets northwest, has retired from banking to attend to his private business affairs, according to announce- ment made yesterday by Floyd G. Davis, the bank’s president. Mr. Stewell is a veteran in the service of the Lincoin National, having been with the institution almost since it was founded. He is now 62 years old, hav- been born on January 25, 1867. He red the employe of the Lincoin Na- tional on January 25, 1890, when he was 23 years of age. Rapid was the progress he made in all departments of the bank, an assistant cashier in 1907. Mr. Stowell was placed in charge of the branch office in June, 1924, and was clecled a vice president on Janu- ary 14, 1926. For several years he has been onz of the best known bankers in ‘the city. Recently he was elected a member of the board .of directors and will continue to serve the Lincoin Bank in that capacity. Smbers. 'of Washingion CRapicE mem| o pter, American Institute of Banking, Mr. is also a member of the Elks. On ac- count of his health, Mr. Stowell plans to take quite an extended rest. Under his guidance the Lincoln's uptown branch has made splendid progress. C. & P. May Income Lower. ‘The net operating income of the Chesapeake & Potomac Telephone Co. in May decreased $12,306 from the month of April, the report of opera of the company just filed with the Public Utilities Commission of the Dis- trict of Columbia shows, Telephone operating ‘revenues for the month were $711,732. Operating expenses were $536,987, making net operating income $174.745. Operating revenues for the five months endéd May 31 were $3,513,953. Operating expenses for this period were $2.526,566, making net operating income $986,387, which was a decrease of $88,- 062 over the first five months of last year. Taxes assignable to operations in Mey were $45.952. Taxes for the five lmx\uu‘ period ended May 31 were $244,320. Capital expenditures for outside plant facilities and central office equipment added to the telephone company's sys+ tem in Washington during the first five months of the year amounted to $1,- 541,479, Retirements were $504,912, making net additions $046,567. Net additions to plant for the 12 months ended May 31 were §1,704,141. On May 31 Washingten was served by 153,983 telephones, which was an increase of 3.623 since January 1. Dur- ing May Washington telephcone users made 17,689,300 local and 520,100 out- of-town calls. This was an increase of 6.3 per cent in local and 9.2 per cent in toll calls over the same months| last year. | Earnings for May, 1929, and 1928, compare as follows: 3 Wy, 1928 Total operating revenues.. 3680616 Total operating — expenses and uncollectible ....... 4747 Mev. 1929 526,987 $174,745 | 45,952 Net operating income ... $205,015 Taxes, assigneble to o tions ek Qperating income ... Non-operating income .. .. 160,710 T 3am 37608 3 @ross income * Rents and miscelianeo: S=ductions ......... Interest deductions .. Net income . §135464 §99,995 Election by Business Bureau. At the annual election of the ‘Wash- ington Better Business Bureau the fol- lowing trustees were chosen .Jr the coming year: F. G. Addison, jr., Edward C. Baltz, Isaac Behrend, Thomas W. Brahany, B. B. Burgunder, A. B. Case, Joshua. Evans, jr., James W. Hardey, Willlam G. Galliher, M. G. Gibbs, Ralph Gold- smith, E. C. Graham, Harry W. Hahn, | H. G. Hoskinson, Ernest Johnson, Syl-{ van King, M. A. Leese, John D. Leon- ard, Louis Levay, H. H. Levi, R. B. H. Lyon, Howard Moran, S. H. Reizenstein, Herbert J. Rich, L. E. Rubel, H. L. Rust, Herman M. Shapiro, Abraham Sig- | mund, W. W. Spaid, Anton Stephan, Arthur Sundiun, W. J. Waller, Ben T. ‘Webster, Claude H. Woodward. At the mecting Director Rothschild #aid: “An evil existing in Washington, and apparently on the increase, is the appearance of brokerage offices which, to the uninitiated, are apparently Tepu- table stock and bond dealers. These men are not members of any recog- nized exchange, despite their well fur- nished board rooms and their new tickers.” Karr Division Passenger Agent. boen appointed. diviion passenger appointe ion _ passenger sgent of the Pennsylvania Rallroad here, effective July 1. ‘Mr. Karr is a member of the Lions Club, Elks Club and many other or- e tions, He has been with the vania Railrond 26 years, hav- ing started as a clerk in the cab serv- jee at the old West Twenty-third street , New York, when he was 15 years % He sold the first Pennsylvania Railroad ticket the ing of lvania Station, {in preparation for the termination on | REVENUES OF 0.5, SHOW BROAD GAIN Evidence of National Pros- | perity Seen in Advanc- ing Totals. By the Associated Press. All branches of Government revenue, as figures were shaped up this week June 30 of the official fiscal year, dis- closed advancing totals, and gave fairly representative evidence of _active national business conditions. Partic- ularly, the June collections of miscel- laneous internal revenue, which registers the imposts upon tobacco sales, playing cards, amusement admissions, and the like, all items of general dis- tribution, ran up nearly to $50,000,000, against about $40,000,000 for the same month Jast year. Raflroad traffic volume, reported out of Washihgton for the week, was still engeged in setting new high records. Congressional action, by reason of an adjournment. of that body, was not a factor in affairs, and the Federal Re- serve Board maintained its recent status of witholding action as to bank rates and credit matters. Commercial Transactions. “Commercial transactions during the period ended Jun» 22, as reflected by check payments, were larger than in either the preceding week or the cor- responding week of 1928," said .the Commerce Depariment weekly review o{’ the business situation at home and road. “Activity in steel plants, while un- changed from the previous week, showed a considerably higher rate of operation than for the same week of last year. The production of crude petroleum and bituminous coal for the latest reported week showed gains over both prior periods. The distributjon of commodities, as indicated by the load- ings of freight cars covering the latest reported . week, Was substantially greater than at this time last- year. “The general level of wholesale prices showed a further gain over the preczed- ing week and was only slightly lower than a year ago. Iron and steel prices advanced over both prior periods, while cotton prices were lower than for either he previous week or the corresponding | week of 1928. Loans and discounts of | the Federal Reserve Banks were larger than during either the previous week er this time last year, Interest rates on both call end time loans were easier than during the preceding week, but substantially greater than a year ago. Bond prices showed no change from the previous week, but, reflecting the higher interest rates, were lower than last year. Stock prices thowed a considerable gain over the previous weck and were sub- stantially higher than a year ago. Busi- ness failures were also fractionally greater than during the preceding week, but were fewer than during the cor- responding period of 1928. Cotton Receipts. “Receipts of cotton were greater than for either the previous week or the cor- responding period of last year. Receipts of cattle and hogs at the principal pri- mary markets during the latest reported week also showed declines from the previous week. Receipts of cattle were smaller and those of hogs greater than a year ago. Wheat receipts showed a, substantial gain from both .prior| periods.” In Camada, the review said that merchandise movement through dis- tribution channecls had been speeding up. In Cuba, in spite of continued low | prices for sugar, it was estimated that general conditions were better than in the same month last year. South Amer- ican countries, aside from Argentina, were represented as experiencing con- | siderable business depression. COTTON PRICES DROP ON BEARISH NEWS Favorable Weather Indications In- duce Considerable Selling. Close Is Lower. By the Associated Press. NEW YORK, June 29.—Week end liquidation together with some local and commission house selling, pro- moted by a favorable view of the weather news, seemed responsible for declines in the cotton market here to- day. Two more private crop reports were published, one of them placing the increase in ac) e at 3.5 per cent and the end-June condition at 70, while the other made the condition 72.5, and the increase in acresge 2.2 per cent, were considered without much effect on the market. October sold off to 1853 and closed at 18.57, with the general market closing steady at net declines of 9 to 18 points. Cotton futures closed: Low. Close. Prev. January 1877 1878 March May : By Qctober, old Qctober, ne! mber .. Openine: May. 10.07: Jy October, ne and was the first r-nenwer repre- sentative appointed for duty at the Union Station, Washington. Heard in Finaneial District. ‘The Richmond Reserve Bank's state- ment shows debits for the fifth district for the week, reported by 24 centers in the district, at $342,645,000, compared with $305,483,000 for the preceding week and $347,080,000 for the corre- -pmflfin"week of 1928. ‘The North American Co. declared jregular quarterly dividends of 1-40 share in common on common and 75 cents on preferred, both yable Oc- tober 1 to stock of record tember 5. Thl:r P!nm!ih'l;nld.l filll‘rlol“ gledl.red re, quarterly dividens pay- nbfi‘ August 31 to Jof ‘ecord August L | efforts to check speculative excesses, is- jery against the THE SUNDAY STAR, WASH NEW YORK CURB - SETS NEW RECORD Total Number of Shares Al- most Double Carrespondingf Six Months of 1928. BY HARRY H. BECKER. Special Dispatch to The Star. NEW YORK, June 29.—The half year just closing wgs one of unparal- leled progress in the history of the New York Curb Exchange. A new high re ord in the volume of transactions Wi established, with the total number of shares dealt in almost double that of the corresponding six months of 1928 and equal to more than 80 per cent of the entire turnover in that year. This was accompanied by a corresponding increase in ters to meet | pand: 5 facil- | ities in various ways and extended its ticker service to citics not hereiofore included in the system. The remark is commonly heard now- adays that with the single exception of the New York Stock Exchange the Curb now serves the largest speculative clien- tele in the world. One of the most notable functions of the institution during the past six months was in providing what might be termed a testing ground for certain issues of mew enterprises which have since become popular. among both speculaters and investors. The develop- ment of the airplane industry brought about the destrability of maintaining a | free market for its securitiesd. The Curb | was the first exchange to realize the importance of this, and within the pe- riod covered actively traded in 28 issues of Icading airplane and accessory manu- | facturing enterprises, compared with | only eight at the close of 1928, i Nearly Two Thousand Stocks Listed. Another important activity of the ex- | change was the creation of a market | for investment trust securities, 10 of | which are now being dealt in. Alte- gether the organization at present pro- Vides a public market for 1.969 different stocks of domestic and international corporations not listed on any other similar local institution. This contrasts with 1,741 stocks six months ago. There are 300 domestic bonds listed and ap- proximately 100 coupon-bearing _issues of foreign governments, municipaiities and business enferprises. The number of these has shown little change during the period because of the declining pub- lic interest in that type of investment, In consequence the bond business of the exchange has been reduced to about half the total of the first six months of 1928. At present about 700 separate issues, both stocks and bonds, are traded in daily on the average. This is also in excess of the average for the same time a year ago, the increase being accountea for largely by the almost daily admis- slon of new securities, Price Inflation Readjusted. The prolonged campaign for the rise, which dates back several years, contin- ued more or less, without major inter- ruption, through the early part of 1929. The first important setback ceme only after the Federal Reserve Board, in its sued its now famous warning against | the use of bank credits in such cam- paigns. It was just before this threat of drastic action to curtail borrowing that many securities reached the high- es; prices at which they ever sold, the edvances in some cases amounting to 100 per cent over the closing levels of 1928. In the series of subsequent reac- tions, some especially severe, the gen- eral price level has returned almost to the point from which-the rige started early in January. This readjusiment appears to be making further progress and has tended to sober speculative en- thusiasm to a material extent. Among the interesting episodes which stand out in the individual perform- ances of the past half year probably none attracted such widespread atten- tion as the violent fluctuations in the Ford of Canada shares before and after the old stock was split 20 for 1. The readjustment plan created 19 shares of non-voting “A” stock and 1 share of voting certificates, class “B.” Unfortu- nately, many tradors were in ignorance of the fact that the listing rules of the exchange banned trad ng in non-voting issues. As a result of this misappre- hension many made open commitments in Ford “A,” believing it a good deliv- " Then the ex- change restated its policy toward non- voting stocks and dealings in the “A” were temporarily discontinued. Ban Lifted on Seasoned Stocks. Despite its long-standing dislike of non-voting stock, the exchange later gavé official sanction to the listing of Ford of Canada “A,” but it never be- came much of a markei favorite. The “B” from the time of is admittance had a spectacular career, rising about 100 per cent in less than a week and then declining with equal violence. The sensational character of its movements is best illustrated by the high price of 172, reached soon after the capital changes were authorized in March, and the low of 562, whieh was established three weeks later. The “A" shares have moved within a radius of fewer than 25 points, That the ban en non-voting stock was somewhat clastic was shown also by the subsequent admission of several securities of that type, an example being Great Atlantic & Pacific com- mon which, in the short time since it was listed has had a spectacular rec- ord. It rose from the introductory price of 332 to within a few points of 500 and recently has sold about 100 points below the extrcme high. Having established a precedent in the matter of non-voting shares, the au- thoritles of the exchange have stated publicly that in the future they will recognize seasoned securities of that class for trading on the belief that the voting power of a stock is of little im- portance when the management of the company is established and its policy well known. P e Stringent Margin Requirements. The corrective process which has pro- ceeded under the fears of Federal re- serve credit restriction and the highest rates for money since 1920 started late in February and brought a series of price declines, amounting to as much as 50 points and even more in some highly volatile issues, from the high levels of the early boom. ‘There is no doubt that the public's faith in the speculative structure has been weakened. The fact that notwith- standing the heavy liquidetion not a single member of the exchange was financially affected is largely due to.the stringent margin requirements imposed on those carrying speculative accounts. ‘The only active class of stocks which as a group has been able to recover from the effects of the collapse is the utilities. Only a few weeks ago these were in the midst of a boom which re- couped losses suffered in less fortunate market ventures by those who still had the courage and resources to buy them lower down. Their buoyancy has been the result of carefully laid plan: for amalgamations and the formation of holding companiés under the sponsor- ship of some of the most powerful bank- ing interests in the country. SOUTHERN'S NET UP; $4.22 SEEN ON COMMON Net income of Southern Railway Co. for five months ended May 31, 1929, is estimated at $6,737,000 after taxes and charges, equivalent after allowing for 5 per cent preferred dividend require- ments, to $4.22 a share earned on 1,- 300,000 shares of common stock. -This compares with $6,266,000 or $3.86 a n{-lr;z:n common in first five months o 5 May net income is estimated at $1,- 391,000 after taxes and charges, com- pared with $1,288,000 in May, 1928, Week’s Financial Highlight By the Assoclated Press. ‘This week. $5,542,000 Brokers' loans, Federal Reser (sysiem) . Holdings Un: Gold reserve. Rediscounts . Bank clearings. A & (Final three ciphers omitted in ‘2bo Car loading, week ending June 15 Crude ofl production (barreis) . Stock sales (N. Y. Stock Bxchange) Bond sales (N. Y. Stock Exchange) New financing. Call money rate.. Time money rate Commercial pape: $2,805,514 $1,016,747 $11,416,200 ve.) 2,764,500 19,256,310 $74,690.000 “29493.000 T3 10 8 6 Last week. $5,420,000 75.8 $139,458 $2,880, $959.104 $12,174,744 Same week 1928. $4,159,000 68.7 $211,937 $2,583,310 31,874 71,548 $1,016,47 2 I'lt(hfi 56,000 93.000 75.3 149,527 51 599 1,069,080 18,611,600 $60,145,000 $154,150,000 $53, $706.,6: 7 3 7% to 3le 6 to 10 CITY BENEFITS BY ADVERTISING OF BANKS AND BUSINESS MEN Growth of Stores and Other Financial Institutions Brought About by Con- stant Use of Publicity. BY I. A. FLEMING. ‘Washington is one of the best adver- tised and advertising cities in th: world. Its position as the world's greatest Capital has assured the for- mer, and the merchants of the city, recognizing newspapers as the greatest aid to merchandi.ng, have given it the latter reputation. Practically unimportant retail stores have evoluted into big commercial es- tablishments through the very gener- ous use of the columns of the press, while the growth of the more important mercantile concerns, via the advertis- | ing way, has been sufficiently remark- able to ca much comment and to warrant larger advertisng appropria- ‘tions, year after year, than might be expected in cities in the half-million population class. Bankers have not been slow to rec- ognize the benefits of publicity ex- pressed through proper mediums and have been amply rewarded. ‘There is something very. interesting in one feature of bankers’ advertising, in that one of their largsst appropri- ations, on the specialty order, is more helpful to others in the net resuits therefrom than to the banks them- selves, and, furthermore, through it the general public is taught a most valu- able lesson and is given the greatest possible opportunity to indulge its taste for shopping as a re= ', of this pub- licity. {Refer to Christmas Savings Publicity. Naturally, one may recognize in these things the great advertising cam- paign of the banks of the city under~ {taken each year in the interest of Christmas savings—one of the most successful. 1t is not difficult to recall the fact that a few years ago efforts to'stim- ulate th's particular kind of thrift were greatly restricted and a very few banks would accept the labor and in- convenlence attendant on handling savings clubs for the small resultant returns. Some few. that advertised for the business were nearly swamped on the days scheduled for the weekly pay- ments, so much so that regular and jmportant patrons were inconvenienced in the transaction of business. The re- sult was that some banks abandoned the idea entirely and others made no effort to increase this feature of their business. Important Merchandising Factor. Since then there has been a great re- vival in the Christmas savings clubs— e e ety T0r a coriain savings di regularly perlodk.’ p:?:bh just before the holiday trading reaches its zenith, thus giving the final grand impetus to push over the happy season’s business each year to record marks of success. Last year the total of these savings reached the stupendous amount of §7,- 046,497 This year the amount available at the close of the period will be, based on official statistics of the District of Columbia Bankers' Association, $7,- 462,097 Last year 83,178 persons, & very large percentage of them employed in the city, participated in the savings move- ment. This year 87,701 regular savers wily be responsible for the gain of $415500 over the aggregate for the previous year. Returns fo Banks. Bankers estimate that not more than 10 per cent of the total savings will re- turn to the banks to be placed to_the credit of the original depositors. This means that the banks will add to their savings again $746,200, leaving more {han $6,500,000 for a perfect orgy of spending and giving in the holiday sca- son. Some of this may go to pay bills, may be sent home by Government workers and used for other purposes, but in any event encugh will be expended with local merchants to round up the’ holl- day trade to the great satisfaction of the retailers and manufacturers. ‘The holiday ‘savings campaign makes possible a_very large part of the giving that would not otherwise have been made. Many workers on small salaries are enabled to participate and, through the success of this operation, to know the real value of thrift. With the Liberty Loan bond cam- paign, they have inculcated more thrift than all other lessons since the dis- covery of America. Cost of Advertising Campaign. In the advertising campalgn that ‘initiated the 1928 Christmas savings the banks of the city to'the number of 20 united in meeting the cost, which was but $1,780, a maximum of $165 to the largest banks and from that to $35 for the smallest assessment. ‘There was no other advertising but the co-operative ads in furtherance of the savings plan. So well was this service handled by the committee in charge that banks are now_ depending entirely on the reports of the former on all advertising medi- ums. Very wisely, the recommendeations of the committee have raised the bars against anything but newspaper pub- licity and occasional radio publicity. Solicitors of other mediums must stand on their attual merits, and if they have none, then they are passed up. Plan Big for 1930. Co-operative advertising of all banks in a series of advertisements running through all daily papers of the city dur- ing a period of sik months, intensified by newspaper and radio, with collateral features that will interest the public, are planned for this year. Every feature of banking would be touched upon and the spread empha- sized on Thrift week and Christmas savings. At the recent convention at Montauk Point Ellot N. Thomson, chairman of the committee on advertising, outlined these plans and reported on last year's results. He was given a great hand by the convention, indicating that his com- mittee might be able to get whatever appropriation it may ask for, An Able Analysis. Harry H. McKee, president of the National Capital Bank of this city, a veteran banker, although not a veteran himself, and a tutor of some of our leading financiers, was an outstanding speaker at the recent bank convention at Montauk Point. When Mr. McKee talks bankers do not want to miss a word of his address. “The Value of a Secondary Reserve” was the subject of his convention-ad- Iress. Every word of it should be avail- able for the reading of the less than the banker himsel forbids full publication. s following extract, however, is a fine sample of the work: “If the working funds of a bank are {usad to purchase short-time, self-liqui- ating cbligations of merchants of un- doubted worth, obligations created by the production end sale of the neces- ife, otherwise called stapl a bank will nced very little liquid fund in addition to its pri- mary reserve. 1t will have in its port- folio prime commercial paper that can be sold or a5 collateral to get funds to restore its primary reserve and as such paper is paid in full at maturity its earning assets will be turn- cd into liquid funds rapidly. Wi deposits begin to decline it can mec that condition by refusing to purchase any moge paper uniil its reserve is re- stored and its deposits begin to increase. The Other Kind. “If the working funds of a bank are used to make capital loans end. un- secured personal loans that have to be carried and renewed for an i time, or renewed upon the emall curtails, thus malin; a silent and unwilling par business enterprises, the worl are_frozen, nent of the bank in several is really engaged in reveral other lines of business by reason of its capital loans. If depesits drop and the primary reserve becomes depleted the officess and dircctors have many anxicus mo- ments unless their worth and raputa- tion enables them to get assistance from the outside to help them to meet their obligations, “The two cases cited are cxireme exe amples of banking pra The first one is the true bank of circulation and dis- count, so-called because it helps pro- ducers and merchants to circulate their oods among' the people by discount- %fll bills of exchange arising from the sale and transfer of necessit thus bringing into present and immediate use the future or potential value of goods producerl. We call such banks ‘commercial banks’ becauss they are the reliancz of industry and commerce and their operation accclerates the process of production and distribution. Why Ceuntry Banks Fail. “The second type of bank referred to is found in many small towns and vil- lages, particularly in agricultural com- munities, although cities and towns in industrial sections have some of them struggling to meet the competition of their stronger and better managed neighbors. The reason for t 3 ence appears to be twosfold. First, desirg of a strong and seif-reliant group engaged in the production of staple products who make & living from the soil, and those engaged in small indi- vidual business enterprises to create and manage for themselves the finan- cial jnstitutions on which they rely for credit. The chief difficulty that con- fronts such banks is the lack of oppor- tunity for diversifying their ‘loans. Their funds are tied up in loans to men who are engaged in one line of industry which may be seriously affected by mar- ket conditions. Secord, the desire of some successful business men to pose as a financial genius and end his success ful business career as a banker. The devositors in such banks believe that becous> they have furnished the de- posits they should have preference in getting loans. Resent Outside Loans, “They resent having their money sent outside of the community through its investment in bonds and securlties or the purchase of commercial paper, and believe that the funds in 2 community | should be used for the improvement of that community, especially for the im- provement of the individuals who sup- rt the bank. They proceed to tiz the ank's funds up in long-time capital loans and unsecured personal loans and expect the bank to carry them until the business for which the money is bor rowed is brought to a successful an profitable conclusion. If deposits drop the absence of a liquid secondary re- serve is a serious matter.” 4 Wholesale Market Yesterday's dally merket report on fruits and vegetables (compiled by the Market News Service Burcau of Agri- cultural Economics) said: Cantaloupes—Supplies moderate; de- mand moderate, market steady; fornia Imperial Valley salmon tints, 4.50a5.00 45, 5.0025.50; standards, . ; standards, 45 jumbo flats, 9s, 370 X meats, standards, and 45, trading slow account mostly green, 2.0022.25. Lettuce—Supplies moderate; demand moderate, market slightly weaker: Washington, crates, Icebetg type, 5 dozen, 4.50. Onions—Supplies moderate; demand | & moderate, market steady; Wi crates, Iceberg types Colorado, crates, Icel fair quality, 4.0024.50; dozen crates, Big Boston type, 1.50a1.75. Peaches — Supplies light; demand moderate, market about steady; Ceorgia, bushel baskets Hileys, U. S. No. 1, 1%« inch minimum, badly decayed, 1.50a 2.50; Gs, Hileys, U. S. No. 1, small size, 3.25; medium size, 3.50a3.75: South Carolina, bushel baskets, C: S. No. 1, small size, 3.00a3.25; North Carol kets, Carmans, U. S. No. 1, Red Birds, medium’ to large size, 3.00a3.25; South Carolina, 6s, Hileys, medium size, very slack pack in bottom layers, 2.00a2.50. ‘Watermelons-—Supplics moderate; de- mand light, market slightly “ weaker; Florida Tom Watsons, 30-32-pound average, 50a60; 26-pound average, 25a 30 each. String beans—Supplies moderate; de- mand moderate, market steady; North Carolina, bushel hampers, green, 2.00a 2.25; Eastern Shore Maryland, bushel gnsx“npen, green, 2.00a2.25; few high as Cucumbers—Supplies moderate; mand slow, market slightly weaker; North Carolina, bushel hampers, fancy, 2.00a2.25. Apples—Supplies light; demand light, market dull; Virginia and Delaware, bushel baskets, Transparents, No. 1, 2- 2¥, inches up, mcstly around 2.00; small mie, ordinary quality not wanted, no sales. Lima beans—Supplies light: demand moderate, market about steady; North Carolina, bushel hampers, mostly 3.50: poorly filled, 2.7523.25. Peas—Supplies light; demand mod- grate, market about steady; Colorado, 45-pound cratss, Telephones, 8.0085.25; New York, bushel baskets, Laxtons, 2.50 n, 23.00 0 0 definite | s | solidated bar INGTON, D. €., JUNE 30, 1929—PART 5. NEW RULINGS MADE [N BANKING CASES | | | i Vital Decisions by Supreme Court Are Reviewed by Research Expert. BY GREGORY HANKIN, The_constitutionaity of the McFad- | den banking act and the Georgia | law were {he outstanding banking ques- | tions before the Supreme Court during the last term. There were also a col siderable number of cases involving tax- ation of national banks, the civil and criminal liability of officers and direc- tors and the double liability of stock= holders of Joint Land Banks. National Banks Must Qualify. Jnder section 3 of tho McPadden | nsolidates with a State bank or trust | company all the rights, powers and | *| privileges enjoyed by the State bank | may be exercised by the consolidated | bank. Among these powers is the right | to act as executor of an estate. The question arose in Massachusetts whether this provision meant that the national bank becomes an executor by virtue of | the -consolidation or whether the con- | solidated bank must also qualify as an ‘c:;N'utor under the State laws. The problem came up when the Fitch- burg Bank & Trust Co., a State bank, and the Merchants' National Bank of Worcester, . national bank, consoli- | dated and’formed the Worcester County | National Bank. The tr company, at | the time of the consolidation, acted as |executor of an estate. After tho con- | solidation the report of the executor | was filed by the consolidated bank. T te Court refused to accept the re- {port, for the reason that the consoli- ted bank had never been appointed ccutor. 1t held that, under the ihe consolidated bank is ed to act as executor unles ifies under the State law; further- more, that if the McFadden act permits the bank to act as execuior without ap- pointment 1y the Probate Court, the s it also reserved to the Siate, decist s upheld by the higher courts of Massechusetts, The Supreme Court of the United their dec but remanded the case for further proceedings to the con- an opportunity to qual- ify as executor. National Bank Retains Licn. . The consolidation of national and State banks gave rise to another con- troversy, in which it was held that the rights of th> State bank had been taken over by the national bank. In Okla- homa, if a stockholder of a State bank is indebted to the bank, the laiter has a lien on the stock to the amount of the indebtedn The question arose witether the lien is retained if the Siate bank 1s converted into, or is consolidat- jed with, a national bank. The Su- preme Court of the State held that the national bank retains the lien and the Supreme Court of the United States denied the stockholder's petition to re- view the cas2. Taxation of National Banks. It has long been established that na- tional banks are instrumentalities of the Federal Government, there- fore may not bz taxed by the States, except. as permitted by Congress. The national banking act specifically pro- vides that, in imposing taxes on the shares of stock of the national banks, on dividends derived from e or on the income of the bank- clations, the States may not impose a greater burden of taxation than is imposed on other moneys or credits competing with national banks. Since the passage of the act numer- ous cases have come to the Supreme Court in which the banks complained of discrimination by the States. During the past term an appeal came from the decision of the Supreme Court of South Dakota, in which the national bank attacked the State statutes as putting the national banks at a disad- articular complaint was that the rate of taxat'on on national bank shares was greater than the rate on money, credits, real estate, mortgages and contracts for deeds in the State, a substantial amount of which was used in. ccmpetition with donal banks. The banks paid the tax under protest and then applied for a refund, which was denied. The State courts dismissed the complaint because in applying for the refund the bank did not specify its reasons in the manner provided by the Spate statute. The bank appealed to the Supreme Court, but the eppeal was dismissed for lack of jurisdiction, since the decision of the State court was based on a non-Federal ground. Since, strictly speaking, the taxes im. posed on national bank shares are im- posed on the shareholders, and not on the bank itself, it was mantained by the taxing authorities In Kansas that a national bank has no standing in a suit brought to recover such taxes paid under duress; that the action should b2 brought by the shareholders them- selves, The Circuit Court of Appeals held . that the national bank was the proper plaintiff in the case, and the suml-ame Court erefused to go into the matter, ‘riminal Liability of Directors. The provision in the banking law of Georgia that whenever a State bank becomes insolvent the president and directors shall be presumed to have fravdulently caused the insolvency was held to be violative of the due process clause of the Federal Constitution. Under this law, W. D. Manley of At- lanta was convicted and sentenced to .| penal service for 10 years, because the bank of which he was president be- came insolvent. The Supreme Court of the United States held that, in view of the other provisions of the law, and in view of economic facts, there is no reasonable connection between the pre- sumption.of fraud and the fact of in- solvency. One of the _provisions by the court is that in Geor- g nks are permitted to make loans up to 85 per cent of the deposits. Un- forescen demands on'a bank may cause its insolvency, though the president and directors may have exercised ut. most good faith. Under such circum- stances, the court held, “inference of erime and guilt may not reasonably be drawn from mere inability to pay de- mand deposits and other debts as they mature.” . The decision in this case goes far .| beyond its application to banking cases. Within the past number of years stat- utes were enacted by the Federal Gov- ernment and by the States, in which the burden of proof is chifted on the defendants. The rule laid down by the Supreme Court in this Georgia Banking case s, that “mere legislative fiat may not take the place of fact in the determination of issues invelving life, liberty or property.” Civil Liabllity of Directors. Officers and directors of bahks were 2lso held liable in damages for insolv- ency or financial embarrassment caused through negligencs or mismanagement. Where directors failed to require an indemnity bond from the bank cashier, and the latter absconded with funds, the directors were held liable, and that, irrespective of whether any attempt had been made by the receiver to col- lect the double liability of the stock- holders. In this connection, it was also held that the mere acceptance of the directorship of a bank makes one liable; the fact that during the time the diractor had been physically or mentally unable to attend to his dutics as direc- tor, was held to be no-excuse. These decisions, rendered by the Circuit Court of Appeals, wera not reviswed by the Supreme Court. Stockholders’ Liability. assessment of double liability on stockholders of Joint Stock Land States aftirmed | ' FINANCIATL Bankers Move Up i RADID SEEN S AID T0 WORLD PEACE Company Visions Closer Contact of Peoples. BY JOHN F, SINCLAIR. Special Dispatch ta The Star. NEW YORK, June 20.—M. H. Ayles | worth, president of th National Broad- casting Co., Inc.—now the largest sys- {tem in the world—has always been | called “Deac” by his intimates He was born in Cedar Rapids, Iowa, spent most of childhood in Des Mofnes and moved with his parents o Colorado, where his father, Dr. B. O. Aylesworth, was elected president of the Colorado Agricultural College. Young Aylesworh had lots of school ing. He attended Colorado Universi; Colorado_Agricultural College, the Uni- versity of Wisconsin and the University of Denver. Then he finished up at Co- lumbia University. Educated as a Jawyer, he set out his shingle to practice in Colorado. Before he really got swarted he was appointed chairman of the Colorado Public Serv- ice Commission. He was then barely 28. As a result of certain railroads fail- ing to comply with the regulations of the commission, when a bad wreck oe- curred cne newspaper called the mem- bers of the commission “murderers.” not em- | titutional as usurping the | Upper—Lanler P. MecLachlen, presi- | dent of the McLachlen Banking Corp. the D. C. DBankers’ Ass recent convention. Lower—Edward J. ciation at the McQuade, _vice who was made second vice president of | the association, Inst year, an esnecially busy one. CALIFORMIA'S O1L Operation of New Statute Will -Give Key to | Conservation. Special Dispatch to The Ster. NEW YORK, June 29.—With over- | productien stiil loominz as the | mount danger to the oil indust: tention is clocely focused on Califemia, the Nation’s largest petroleum pro- ducing territory. California holds the solution to the problem of excess out- put, #t is generally conceded: Two months hence, on August 31, California’s new natural gas conserva- tign law goes into effect. The dead- line for cutting off the unrestricted flow of hundreds of millions of cubic feet of gas into the air will not be extended ond that date. This ulti- matum has been given the oil com- panies by Fred Q. Stevenot, director. of the State Dcpartment of Natural Re- sources. \ Attempt 2t Conservation. The natural gas conservation law in California follows en abortive attempt | by the oil operators of the Golden State to restrict output and conserve gas and crude through a voluntary co-operative agreement. This pian broke down because of recalcitrants among the in- dependent producers who declined to conform the State oil umpire's orders. ‘The fallure of voluntary restriction plans in California was considered a serfous blow to the oil industry. How- ever, R. A. Broomfield, president of the California Oil & Gas Association, in a letter to E. B. Reeser, president of the American Petroleum Institute, yester- day, declared: “It was found superfiuous to attempt to carry on voluntary restriction in view of the pending enforcement of the State gas conservation regulations.” Meanwhile the situation west of the Rockies is apparently that all pro- ducers are getting out the last possible quart of ofl from their wells to build storage reserves to the highest possible point before the State conservation law is efiected. California’s consumptive requirements for the territory which it is geo- | graphically fitted to serve would not be more than 550,000 to 600,000 barrels of crude il State's present rate of production in each 24-hour period, according to the last report of the American Petroleum Institute, is 835,500 barrpls. This is approximately 200,000 barrels daily more than at the same time last year. This flush production in excess of territorial needs and increasing oil and gasoline shipments from California con- stitute a grave danger to the price structure in the oil industry of the United States generally. Shipments Increased. In addition, increased oil output west of the Rockies has resulted naturally in greatly increased refining on the Pa- cific slope. This has been at the ex- pens2 of Eastern refiners. California’s shipments of gasoline to | the Atlantic seaboard are approximate- |1y double in the present year compared with 1928, and Eastern oil marketing orgenizations have suffered. The situ- ation to date has been saved by a very material increase in the domestic and foreign demand for gasoline. was considered this term. It was main- tained that the Farm Loan Board has no power to assess the stockholders’ lia- bility and that the receiver of such bank may not bring action to recover on the assessment. The receiver argued in opposition_that the powers of the Farm Loan Board were analogous to those of the controller of the currency over national banks. The Circuit Court of Appeals upheld the action brought by the receiver, but the Supreme Court granted a writ of certiorarl. This case will be argued next term. Liabilty of Banks. ‘The liability of banks for unauthor- ized acts of its officers was brought into question in several important contro- versies. It was maintained that the contracts entered into or loans made were in excess of the authority con- ferred on the banks or their agents, for whith the banks were liable. It was held, however, that where & esmppllf:“:‘mm’dm v G &e::'nl; s enying his auth to issue ‘certificates ;? d and the bank was held liable on the certificate in question. The Supeme Cout declined to review this case. (Copyright, 1929, Legal Rescarch Service.) { who was elected first vice president of | | president of the Liberty Nztional Bank, | He served as secretary | LAY FAGES TEST One of his aunts saw this and said: “T {always knew jhat Aylesworth boy would jdo_something horrible like that. His {father was a minister.” | Joins Power Company. I But after four years with the com- i&nnhe resigned to, assocate him- E n _executive of the Utah Power {& Light Co, which ai that time had | spread, throughout Utah and Idaho. | A little Jater R. B. Ballard of Los | Angeles, chairman of the National | Electric Light Association, who had met | the foung man and had been impressed { With him. induced Aylesworih to take th» managing directorship of that asso- | cation and help build it up, | _So before “Deac” Aylesworth knew what actually had happened he found | himself in New York as the head of | this new and what has since become {® yery powerful instituon. remarkable success in meetin; the important problem of public rl‘m‘z | tions in connection with public utility ];ie\;zg‘pr;xsen; K:s ;'l-‘s};;xmsiblv for his se- oc cad of the Nati - ytaiimg Co., Inc. S Wwas Owen Young, now famot |an_international negotiator and a'xfm:f ¢ler and chairmen of the General Electric Co., then interested in radio sales, who coneeived the idea of link- aa:pmt‘he indi\{idua} broadcasting sta- o a national chain. i but N!our yre:m 2g0. g “None of the men who helped in fermation of the Nat'onal Brlf’)ldcssltlg; Co., Inc., ever thought for a moment of making any money out of it. But there was a need for it. Men of the Young type saw what was coming in radla"um decided to organize the com- Pany,” is the way Aylesworth put it to me2. So what has developsd into a na- tional institution of education and en- tertainment was organzed along these lines, Has Graclous Manner. Ayleswerth is far from the tyj fiction-bred executive who sits a;nnk:é by numerous secretaries, transfixes his visitors with his eagle eye and drips lom as he talks. Easy and gracious, with-a warm grip and a friendly smile, | b2 greets you when you step into his cfice. He discusses any subject frankly {and is frank to admit that he doesn't | know everything. 1 In appearance. he is straight, has a somewhat thin-lipped mouth, with & prominent nose, long in line from the bridge. His black eyes are set in firm, healthy flesh. ‘He has a high fore- {Iheilnd and flattened black hair, a little i His youthful face, with its beaming Smile, makes the visitor feel vight at :l::: ]fl'fll’;l nl,he s:?ll’t. He is a good iple of the “well proportioned of medium stature.” e ik No one dreamed that the National Broadeasting Co., Inc., would expand as it has. Least of all Mr. Aylesworth when he took over the work, green, in~ exverienced. unprejudicsd. Three things seemed to him impor- tant. He expressed them then: “The first thing, it seems to me, is to find what programs will give the fullest measure of service to the public. Second, to establish the best facilities for such service. Third, to make the ent'te structure sustaining. If broad- casting is to survive, it must stand on its own legs.” At the beginning he had to move easy, for it was g “ticklish business.’” To accomplish results he had these resolutions fixed in'the back of his head: Finer programs for stations; no Jong speeches, and no competition with the newspapers; developing the com- pany nationally. Four years later I met him in his New York offices. He had just ree turned from Europe and was all-ene thuslastic over the possibilities of inters communication between the peoples of the world, especially between those of the United States and Europe. Pecp Into Future. “What is in store for the future? Perhaps a universal language will be gradually evolved, whereby the pec= ples of the earth will be able to un- | derstand cach other,on even terms. It may be English or some other lan guage; but radio furnishes the best way of spreading that:language, what- ever it may be, over the face of the globe. I have visions of an evening's program, the numhbers of which are made up from all parts of the world,” sald this radio leader. And then he went on: | _“Say, the first number, Fritz Kreisler playing his matchless violin, in Vienna: second, Galli-Curci singing from Albert Hall, London; the third number, the Symphony Orchestra in Rio de Janeiro; fourth number, ul Whiteman and his band in Carnegie Hall in New Yor “I believe this will help us in & taining a more tolerant and friendly attitude toward the peoples of the world. We will get accustomed to hear- ing a Frenchman discussing the dif- ference of policy between France and another nation. We will hear the point of view of the German and the Rus- sian and the Turk. A more tolerant attitude toward other peoples is bound to develop. Mission of Radio. “Radio_will do much to bring about a state of world peace. Ii will be dif- ficult to hate a nation after one hour of its lovely symphonic .music, or to denounce a&s cruel or barbarous a foreign state that has presented us over the radio some of its philosophers and leaders in culture and edycation. Tie these factors up with the astund- ing new development, now almost hawe. like television in natural colors, and the other will become the messenger through which representatives of every nation, creed and school of thought . can set forth their bellefs in their own way “That is why I'm Interested in broad- casting. It enters the home, the sick room, the prison. If we live up to our o] the radio, with the world to draw from, should be the mightiest 58 3 pen than the sword,’ will ‘then be c! 'spoken word and singing note is greater than the bullet, for these can be sent into every home in all the world.' ‘The future of broadcasting! Who is wise enough to say? (Copyright. 1920, by North American News- Drper Alliance.) Fifty new automoblle freight lines are to be established in Austria this year, £ ~—