Evening Star Newspaper, November 1, 1929, Page 15

2 > FINANCIAL. THE EVENING STAR, WASHINGTON, OULD SAVE TINE IN BANKING MOVE McFadden Writes Controller on Proposed Study .Into Areas for Branches. BY EDWARD C. STONE. Chairman McFadden has written a fetter to John W. Pole in which he takes tssue with th governmental pro- cedure outlined in fhe controller of the eurrency’s propos- ed investigation of the area into which branch banking may be extended. The proposal has been made that Congress adopt a resolution instruct- ing the controller ! of ths currency, 3 ' the Federal Re- f serve Board and the Secretary of the Treasury. to investigate and re- port to Congress ¢ | the geographic # boundaries circum- acribing the eco- nomic areas into which branch banking by national banks should be extended. There are two practical objections to this course, Chairman McFadden stat- ed. First, the resolution would have to be referred to both House and Senate banking and currency committees and be considered there before being favor- ably reported. The resolution itself would bring up in Congress the issue of branch banking in rural districts | before full consideration was given (ke question by Congress. Secondly, the delay involved in the consideration of the resolution might cause a conse- quent delay in receipt by Congress through normal channels of proper in- formation on the banking situation. The banking committee chairman | suggested that Mr. Pole recommend. in his forthcoming annual report to Con- gress, any proposals for amendments to the national banking laws. Con- gress will take up, in turn. the matters he suggested, through ifs authorized eommittees. | Mr. McFadden believes that what Mr. | Pole suggests might be done by a de- partmental commmittee and much time | saved by direct action. | Louis T. McFadden. Lineoln National Reviews Trade. | In its monthly outline of business, the Lincoln Natlonal Bank says in part: “Public utilities this year are leep- fng pace in both output and earnings with the general business activity of the country. | “More electricity is being generated and more gas produced, sales of power and light are greater, and profits are larger than in any previous period. “These are conclusions drawn from a study of newest data of the United States Commerce Department and the | American Gas Association. i “Production of electrical energy byb eentral power stations this year is ap- proximately 12 per cent greater than | in 1928. Gas companies are shown to be handling over 10 per cent more gas than in the corresponding months of | B ast year. “Aggregate profits of 95 prineipal utility systems of the country, accord- | ing o the official records, average some 881,438,000 monthly as compared with $60,304,000 a year ago, an increase of 17 per cent. These are net revenues. Gross revenues for 1929 are averaging $1.890.400,000 monthly. | “Approximately 20.000.000 homes in || the United States, the latest compila- tion shows, are now electrically wired. | Gas companies are serving nearly 10, 000,000 customers. “Householders pay the electric utility | eompanies about $1,000.000,000 annually for light and power, according to the Cogmerce Department, while industry consumes current to & value of $2,000,- 000,000 each year.” American Tce Net Higher. September earnings of American Ice Co. after interest, but before Federal taxes and depreciation, were $769,882, which compares with $744,107 for Sep- | tember last year. Net earnings for nine months after interest, but before Fed- eral taxes and depreciation, were $4- 879,368, which compares with $4,616,106 for this period in 1928. The Washington Rapid Transit Co. showed a deficit of $5,639.74 for Sep- tember, but this was a reduction from & $7,082.72 deficit in the month a year 0. The nine months’ net income for 1929, while continuing to show a deficit of $4.567.82, improves last year’s deficit for the same months by $23,107.69. Changes in By-Laws Planned. A meeting of the fiduciaries section | of the District Bankers' Association will | be held in the near future to consider | and adopt certain changes in its b | 0 as to bring about uniformity among | the different sections of the associa- | tion. This meeting will be presided | over by David Houston, trust officer of | the American Security & Trust Co., the | newly elected chairman of the section. | The initial meeting will mark the be- | ginning of the year's work for this se tion and a large attendance is especially urged. Members will be notified when a definite date has been selected, | Insurance Committee Meets. | The insurance committee of the D. | C. Bankers’ Association recently had | W. L. Bates, assistant supcrintendent of the bonding depaftment of the Fidelity & Casualty Co. of New York, at a luncheon, with Edgar Legg, resi- dent manager of the same company. ‘The commitiee discussed generally the methods by which the bonding com- panies and the banks check thelr risks. Much valuable information was secured and the insurance committee will work upon a program which, it is hoped, will aid the members of the association in having even greater proteciion, accord- ing to the latest assoclation bulietin. Gleaned in Financial Distriet. Lanier P. McLachlen, president of the McLachlen Bank, and Karl W. Corby one of the partners in W. B. Hibbs & | Co.. have been elected to the board of | governors of the Columbia Country ' Club. / Mamber banks of the fifth Federal| R rve district have received notier ol #1 election to be held on November 30 1929, to choose successors to Class “A" Director L. E. Johnson, president First National Bank. Alderson, W. Va. and Ciass “B" Director D. R. Coker. mer- chant, Hartsville, 8. C.. of the Fedcral Reserve Bank of Richmond, whose terms expire December 31, 1929. The Washington Stock Exchange was elosed today and will be closed tomor- The members will also get a third y next Tuesday when the local exchange will observe the New York election or perhaps to put it more ac- curately, suspend operations because the New York Stock Exchange will be < E A public hearing for review of the rates and accounting methods used by the Washington Gas Light Co. and the Georgetown Gas Light Co. for Novem- ‘ber 13, at 10 am., has been ordered by the Public Utilities Commission. Par- ticular emphasis will be directed at the methods of th: two gas companies in estimating accruals, maintenance and expenses. Banks Asked to Aid Drive, ‘The local banks have been asked to: co-operate in the coming annual Red! Cross membership campaign. _Presi- | dent W. J. Waller of the District | Bankers' Association has requested the various institutions to call the atten- tion of their patrons to the roll call and also arrange for a member of the Red Oross to have a place in the bank lobbiex for enrolling members and tak- ¢ ing subseriptions. Tn case of a shortage B8 volunteer workers, the are i iminary report. ! stock was split five for one. Stockhold- | portant corporation ne ! nounced a reduction in price | week and comparable periods, and also | London. peund. are now included in chain and group banking systems, numbering 273 organi- 7ations and comprising 1,858 banks, ac- cording to a statement, issued here today by the economic policy commission of the American Bankers' Association. Net earnings of Loew's, Inc. and subsidiaries for the year ended August 31, after all charges’ including depreci- ation and Federal taxes, were approxi- mately $12,000.000, according to a pre- | Packard Motor Car Co.'s stockholders have more than doubled since capital ers now total about 24,000. comparcd with 10,507 on June 12, this year. NEW YORK. November 1.- lowing is tod ‘The fol- summary of all im- prepared by Inc., New York, d payment of special and increased dividends con- tinued yesterday, Consolidated Gas Co. of New York, Standard Oil of Indiana and Warren Brothers being the more ¥mmment corporations taking this step. nitial dividend declarations also were announced by Bulova Watch, National Public Service and United Carbon. Buick shipments, the first to appear for October, aggregated 20,596, about 8000 below same month of 1928 November schedule called for | than 12,000 cars, or a little more t half of the October total. It is belie this schedule is indicative of t of the entire industry for rem the year. Ford Motor Co. has j models, ranging from $15 to unit, suggesting that perhaps this com- pany also is finding it desirable to offer an incentive to stimulate sale of present models. 00 per COMMODITY PRICES. By the Associated Press. Commodity prices last week. as eal- | culated by the Census Bureau, were lower than the previous week, and markedly lower than during the period | last year. The figures which follow give the index. prepared by considering .926 | average wholesale prices as 100, for the the price for same periods of a com- | posite ton of steel products: All com- modities. Week ending October 26. 94.1 Preceding week. ... . 946 ° Same week last year.... 98.4 FOREIGN EXCHANGE (Quotations 'H"flf'?'fi 5y W. B Hiobs & Co.) jominal gold Selling checks value (or par) SBteel. today Paris. franc Brussels. bel Berlin, mark Rome.’ lira Zurich, Athens, Stockholm. d | Stock !of the average for a normal five-nour | v requested to_designate an empioye to act for the Red Cross. The board of governors of Washington Chapter, A, 1. B., will hold a meeting this evening at banking headquarters, beginning at 7 o'clock. A. E. Henze, chapter president, is taking a few days’ rest from his regular duties. Employes of local broker offices were hustling today to clear up the enormous amount of work which has accumu- lated in the past few days. It was sald that it would take until Monday to com- plete trading records. Over $13,000,000,000 in bank resources York from $6,634,000,000 to $5.538,000,- 000 reflected the slash in security prices during the past week. The recuction brought the loan total to the lowest figure since June 19 last. The reduction of the rediscount rate put the figure at which member banks may borrow from the j'ederal Reserve Bank back to where it was before Inst August 8, when the rate was advanced in an effort to discourage the excessive flow of credit into speculative channels. The Stock Exchange and the Curb Market will be closed until Monday to give brokers’ forces a respite after the ordeal of the biggest wecek in security trading history and to afford an op- portunity for clerical staffs to bring their books up to date. BROKERAGE HOUSES CHECK ON BUSINESS (Wall Street Catches Up With Accounts as Market Is Closed. Bs the Associated Press ! GERMAN BONDS AND STOCKS. NEW YORK. November 1.—The | S Stock Market was closed today while Ger Govt Red Loan with draw- brokers stiove to catch up with the _ Ing cifs atiacned per 100 R M 50.00 61.00 greatest volume of business ever trans- | O%, Govt Red Loap without acted in four days in the history of er Wall Street. The Stock Exchange and the Curb Market ended their week yesterday after a three-hour session in which a flood of buying, stimulated by con- structive financial news, recouped much of the loss in quoted values suffered | X! in the record-breaking collapse ¢f Mcn- day and Tuesday. Prices on the Stock Exchange showed net gains ranging from 2 to 30 points for the day and the maximum gain on the curb was 55%. Buying orders flooded into the market attracted by relatively low piices for high grade investment stocks resulting from the deflation during the fore part of the week. Noreh” cerman ' Liop Confidence which had reassorted it- | Austrian A B G (Gen ‘Elet! self Wednesday was further fortified by announcement of the 1eduction ¢f the New York Federal Reserve 1ediscount rate from 6 to 5 per cent and of the rate of the Bank of England irom €'3 to 6 per cent. Another feature of the day was the reduction of brokers' loans for the week of $1906,000,000, the greaiest arop in history. Bank clearings for the day sct a record with $3.853,000,000. During the three-hour s-ssion on the Exchange 7,149,390 shares | changed hands, & figure far in excess Pre-war... ... bur 3125 & 4s Dre. Hamburg American Line 472 North Gerntan Liovd 4% war. Al n doliars ‘per share. ) A E G (German Gen Elec) .. 44.00 A E G (Ger Gen Elec) pfd B.. 9. Commerz and Privat Bank arl isconto Beriiner AGGRESSIVE BUSINESS MAN —broad-minded. ander 35, seeks an Tained at ' a _university, seasoned ex< traveling public accountant and compiroller. enables him to _direct and obtain proper results. He likes the joy of work and far competition: is especially equipped by travel. training and temperament fo se- cure co-operation of personnel and co- ordination of depariments. He is a man that is trusted and respected: possesses & %0od personality and sound business umen. ~ He is thoroughly conversant | matiers of finance and accounts and An expert on income tax: knows mod- ce _management and economic supervision the best references and will treat all inquiries confiden- 5. He is emplosed at present and n retain his position indefinitely, but he seeks greater opportunities. Address Box 141-B, Star Office T — | Equitable Co-operative Bldg. Ass'n JOHN JOY EDSON, President - ‘The ticker was an hour and 48 day. i behind the market at the | minutes close. When the market opened at noon, | two hours later than us & large volume of buying power had accumu- lated, Purchase of stocks in blocks up to 50,000 shares featured the early part of the session. The rush to buy created a state of confusion comparable with the disorder ! which attended the frantic citorts to sell during the slump Tuesday when 16.140,030 shares were thrown over- board. | The cut in brokers’ loans announced | by the Federal Reserve Bank of New ' an s can’ furnish WALTER S. PRATT, Jr., Secretary Organized 1879 49th YEAR COMPLETED Assets .. .$5,675, Surplus & Profits. $1,695.894,08 HE Equitable’s plan ef sys tematic savings encourages thrift in a manner that if con- sistently followed will even- In Nearby Virginia Prudential 5 1/2 % Inml:::: Co. ‘ Commonwealth Investment Co. | {| 917 15th St N.W Phene N 1 2628 Real Estate Investments JAMES Y, PENNEBAKER Nat.5201 1520K St. N.W. gAuwsAmmg M OTED®L HEALTH CLUB Modern business execu- tives watch health as carefully as investments. 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Come in and let us explain : SAVE AS $2.50 PER SHARE about our systematic plan. YOU EARN 915 F St. N.W. LOANS For Fifteen Years Th just one of the excellent fea- tures of the Metropolitan Life Insur- ance Company Real Estate Loan Plan. They Offer: —Lowest Interest Rates —No Renewal Charges —Reasonable Rates Consult WEAVEB__BBO REALTORS 809 15th St. N.W. District 9486 Mortgage Loan Correspondent Metropolitan Life Insurance Company SEANESE FRES °T MORTGAGES WHY THEY ARE DESIRABLE FOR INVESTMENT Your money invested in our 6% FIRST MORTGAGES is secured by definite value, represented by conservatively appraised real estate. They pay 6% interest with unfailing regularity. And your investment is for a period of three years which saves you the worry of fre- quent reinvestment. May be purchased in amounts from $250 up. B. F. SAUL CO. National 2100 925 15th St. N.W. Ower a Third of a Century Without a Loss THERE 1IS- NO SUBSTITUTE FOR.» SAFETY D. €., FRIDAY, NOVEMBER 1, 1926, FINANCIAL. INVESTMENT TRUSTS | LARGE STOCK BUYERS Secial Dispatch to The Star. NEW YORK, November 1-—Louis H. Seagrave, president of United Founders’ Corporation and American Founders’ Corporation, stated yesterday that the group had cash in excess of $48,000,000, and in the last two days had been buy- ing carefully selected American stocks. In addition, he said, other affiliated companies have mnearly $40,000,000 in cash. He added the n | Founders’ group has more than $61,- 000,000 invested in bonds. bz pinali | Mill girls in Japan now receive an verage of $15 a_month wage: Remember; TheTortoise Wonthe Race 5 In the memorable race hetween the Tortoise L and the Hare, the jack rabbit had considerable fun - in bounding by his slower adversary, and his feel- | ings, as he whizzed past, were not without a little scorn and pity. But, the legend tells us, the Tor- toise won the race, and if we could read the mind of that plodder, we would probably have found it in a tranquil and pleasant state. Nb Tsnors March 15 | —if you know Income Tax Law and Procedure. Special 24-lesson course for Busy Business Men— taught by a Tax Specialist. Class Begins 5:30 P.M. Tuesday, November 12 | STRAYER | COLLEGE OF ACCOUNTANCY 721 13th St. Nat'l 1748 The investment jack rabbits have had consider- able pleasure out of their more conservative friends, as they have been riding on the crest of increasing prices of speculative investments, but after the last fortnight, the minds of the holders of First Mortgages and conservative bonds, are in a mood approaching that of the plodding Tor- toise. They feel sorry, but they feel vindicated. In the long run, over a period of years, the speculator does not average much over a 6% re- turn counting his losses against his profits, and he uses up a good deal of energy in doing it which might have been directed to earning more money. And he is always faced with the prospect of losing it all. Continental Trust Co. 14th and H Streets Capital, $1,000,000.00 Checking Accounts Savings Accounts Acceptance Credits Time Deposits Foreign Exchanges Commercial Credits Travelers’ Credits Travelers’ Cheques Collections Real Estate Loans Collateral Loans Investment Securities Corporate Trusts Individual Trusts Administrator, Executor Safe Deposit Boxes Continental Trust Co. 14th and H Streets WADE H. COOPER. President Conservative First Mortgages are always worth 100 cents on the dollar! Capital, $1,000,000.00 - : : 1f you have been a jack rabbit, will you find the lesson in all this, and turn to First Mortgages, or will you go back again, disregarding the trite but true saying: There’s more money lost trying to get even than in any other way? SWARTZELL, RHEEM & HENSEY CO. MORTGAGE BANKERS 727 15 STREET N.w./ WASHINGTON D.C. PARK SAVINGS BANK 14th and Kenyon Streets N.W. TODAY IS OUR BIRTHDAY 1909 1929 20 Years of Service to the Community The growth of this bank since its foundation in 1909 is reflected by a comparison of the following figures, a growth indicating satisfaction ren dered its customers and the community. COMPARATIVE STATEMENT OF DEPOSITS 1909 Nov. 1 (Opening Dsy) 82,278 L L1 S | I - 1916 Dec. 31-------------475,116 1919 Dec. 31------------1,618,334 1922 Dec. 31-------2,325,096 1925 Dec. 312,762,699 1928 Dec. 31-—3,306,985 1929 Oct. 4---3,634,828 (As Reportef)to Comptroller of Currency) CAPITAL, $100,000 ($50,000 Paid in—$50,000 Stock Dividend) SURPLUS (earned), $150,000 UNDIVIDED PROFITS, $75,780.17 Commercial Accounts Savings Accounts UNDER SUPERVISION OF THE UNITED STATES TREASURY DEPARTMENT - e}