Evening Star Newspaper, October 10, 1931, Page 13

FI CAPITAL TRACTION | NET RETURN OFF Monthly Report Indicates Less Severe Competition } by Cut-Rate Taxes. BY EDWARD C. STONE. According to the monthly report of : the Capital Traction Co. for Septem- ber, the road's total net income amounted | to $9,452.49, in comparison with $30.- | 250.63 In September, 1930, or & de- | crease of $20,807.14. i Taxicab competition was again keenly | felt, the report prepared for the Public | Utllities Commission indicates, total op- | erating revenues for September being | $276.418.72, against $327,713.48 in the | corresponding month a year ago, a de- | cline of $51,204.76. - Total operating expenses were $217.- | 339.82, compared with $243,059.06 in | the like month in 1930, showing a re- duction in operating costs of $25.719.24. Deduction of operating °xpenses and taxes left Capital Traction with an op- erating income of $39.466.69. against $59,646.80, a decrease of $20,628.98. Revenue passengers in September showed a decrease of 530,333, while there has been a decrease for the first nine months of the present year of 5,131,402, Net income for the first nine months of the present year has made a much better comparative showing than the September record alone. Net earnings for the nmine months were $275481.51, compared with $320,390.29 a year ago, or a decrease so far this year of $44.908.78. The September report is very much better than the August record and in- dicates mcre riding on the street car lines. It is evident that narrowing of the 20-cent zones by some of the taxi- eab drivers has swung some passenger traffic back to the Capital Traction Co. Industries More Active. Whatever the developments of the ! past month have lacked in evidence of | seasonal expansion of manufacturing and trade have been made up by the | sensational readjustments in wage scales, currency troubles abroad and further recuperation in the domestic industries, no less than 10 of which are now operating at higher levels than a | year ago, the American Bankers' Asso- ciation Journal says in its current busi- ness rteview. The course of general liquidation that first affected security | quotations and bank credit, then car- | ried down wholesale prices of com- modities, is finally passing to Tetail prices, rents, cost of living and wages, | it says, adding: “Suspension of the gold standard has | both helped and hurt England. It is| now apparent that, while the crisis was | precipitated by currency and financial conditions, the underlying causes were industrial, and arose from the inability of England to bring its manufacturing and distributing costs into line with the lower level of prices prevailing in world markets. Depreciation of the pound | sterling will mean that the same money | ‘wage will represent a lower real wage, ' — and this will enable English goods to better compete in world markets. “Meanwhile, the industries in this eountry are continuing to readjust their operations to the new level of prices and, as distress stocks of merchandise | are’ disposed of and the inevitable | replacement demand on the part of the public broadens, the producers are grad- | ually increasing output. To date no| less than 10 of the major industries | have apparently touched bottom and | are running at better rates than a| year ago.” A. B. A, Convention Echoes. | J. Stewart Baker, president of the! Bank of Manhattan Trust Co. of New | York, in an address before the trust company division, traced the origin of | the modern idea of the trust business to Capt. Robert Richard Randall, founder of Sailors’ Snug Harbor in New York, who, with his attorney, Alexander Hamilton, first Secretary of the Treas- ury, and Daniel D. Tompkins, who became Vice President of the United | States, made provision for the future administration of his own property. The ! business, he said, represents a natural | development of & public demand and | not a new avenue of profit for financial | institutions. i He pointed out that so thoroughly | segregated have been the assets of the | trusts, so careful has been their admin- | istration, so complete their safe-guard- | ing by law that the thousands of financial institutions rendering this service have preserved their trusts inviolate during the present troubled period. Even where the affairs of the institution itself have become involved, he noted, its trusts have remained secure. Gilbert T. Stephenson, president of the trust company division, said he had recently returned from a study of fiduciary laws and practices of France | with new appreciation of American trust institutions as a national asset. He declared that trust institutions were steadily improving the quality as well as increasing the quantity of their service, Bank Women Re-elect President. Miss Grace 8. Stoermer, assistant vice president of the Bank of America, N. T. and S. A, Los Angeles, was re- elected president of the Association of Bank Women at Atlantic City. Miss Emma Z. Lange. tfust officer of the Bank of Montclair, Montclair, N. J., was elected vice president, and Miss Minnie Q. MacCulley, assistant secre- tary of the Williamsburg Savings Bank, | Brooklyn, was chosen treasurer. Miss Mary M. Stetson. manager of the ‘women’s department of Chase National Bank, New York, was elected regional vice . president for the Midatlantic division. i ‘The president, Miss Stoermer, is widely known among the members of the Washington Bank Women's Club. BUCKNER ACTS QUICKLY | T0 FORM BANKER POOL! | | Bpecial Dispaich to The Star. NEW YORK, October 10.—One of the | busiest bankers in this city is Mortimer | Buckner, chairman of the Organi-| zation Committze cf the National Credit Corporation, which is the name of the! concern for the relief of banks with frozen assets proposed by President Hoover. Mr. Buckner, who is president of the NewYork Clearing House Association and_chairman of the board of trustess of the New York Trust Co., has worked constantly in the last two days on the details of formation of the poo! In, the last 24 hours Mr. Buckner has telephoned to virtually every large cen- ter in the United States, talking to one ©r more members of the respective clearing houses in those cities and get- ting their assistance in putting over the National Credit Corporation, It ‘was the hearty response of a'l of the| non-New York clearing centers that | gmade it possible to organizs the pool so speedily. S e BUSINESS ruuini:s. week as their trend was measured by the Commerce Department. In the | index that follows the total is given for comparable periods, based on represent- ing the weekly average for 1923-25 to 100: Week ended October 3. Previous week ... Same week last year. 10415 87 1131 145 81 25'% 461 157% 24% TI85% 93 Kastman Kodak (18) 36% 9% 45'3 401 20 27 56! 66's 63 ANCIAL. NEW YORK STOCK EXCHANGE THE FEVENING STAR, WASHINGTO Received by Private Wire Direct to The Star Office. these desigmated by I.fl..;.‘)‘ ot. Close. Chg:s %+ % + W +1% — % + % +114) +3% + % +1% —% Low. DI 5 Abitibl Pwr&Pap pf. 7 Adams Express (1)., 52 Alr Reduction(t414), 7 Alaska Juneau (40c) 3% Allegany Corp... 8 Alleg Cp pf $30 ww.., 8% Alleg Cppf w340 w., Alleg Cp pf x 320 Allied Ch&Dye (n Allis-Chalmers (1) Amal Leather 6 Amal Leather pf. 13 Amerada Corp (2). 211 Am Brake Shoe(2.40. 71% Am Can Co (15). 13415 Am Can Co of (1) 9 Am Car & Fdry (1) 5 Am Colortvpe....... 3% Am Encaustic Tiling 10% Am & For Powe: 413 Am Haw St’ship 27 Am Ilome Prod 4.20 10% Am Tce (2). AR 6 Am Internat 8 Am Locomotive (1), 16 Am Mch & Fdy 1.40 5 Am Metal Co. 25 Am Natural Gas pf 145 Am Pwr & Lt (£1)... 7 Am Radiator (80c).. Am Reoublies. . Am Rolling Mills. ... Am Safety Razor (5) i Am Ship & Com..... Am Smitg&Ref (115) Am Sm & Ref of (7). Am Snuff of (6). % Am Solv & Chemi Am Steel Found (1 Am Sugar Ref (5). Am Sugar Ref of (7 Am Sumatra Tob Am Tel & Telex (9 Am Tobacco (+6) Am Tobacco B (16).. Am Water Wks (3) Arh Wat Wks cfs(3). Am Woolen Co. . Am Woolen Co pf. Am Zinc & Lead. Anaconda Copper. ... Archer Danfel Mid. Armour of Del of () Armour of 111 (A). Armourof 11 pf..... 4 Associated Dry G(1). Atch To&S Fe (10).. At) Coast Line (7)... At1 GuIf&W Ipf (5). Atlantic Refining (1) 4 Auburn Auto (f4). Austin Nich pf A (3) 614 Baldwin Locomotive 36 Baldwin Loco pf (7). 28 Balto&Ohiod)...... 90 Bang & Aroos pf (7). 4% Barnsdall Corp'n.... 37 Beatrice Cream (4).. 12% Bendix Aviation (1). 24% Best & Co (2). . 241, Bethlehem Steel (2). 8 Blaw-Knox (1)...... Rohn Alumn (1%)... Borden Co (k3) % Borg Warner ( Boston & Maine R Mtz (11%) Stratton (2 208 Bruns Term & Rwys. Bucyrus-Erfe....... 7% Bucyrus-Triecv pf.. 2 Budd (EG) Mfg 414 Budd Wheel (1)... Bullard Co. ... . Burrough A M(1113) Bush Term deb (7). Byers (A M) Co. 137 Callf Packing (2). 313 Calumet & Hecla 14 CanadaDry G A (3 11 Canadian Pacific1%. 17% Cannon Mills (1.60). 33% Case (1 1) Co 1113 Caterpillar Trac(3). 121, Celotex pf. 215 Century Rib Mill 97, Cerro de Pasco (1) 2313 Ches & Ohlo (2%4). 141 Chesapeake Corp(3), 313 Chi Great Western. . 12 Chi Great Westn pf. 2 Chi Mil StP & Pac... 3% Chi M1l StP & Pac Chi & Northwest (4) 1 Pneu Tool. Chi Pneu Too! pf... 20 Chicago R 1&Pacific. 40 ChiRI& Pacpf (6). 81§ Chickasha Cotton Oil 8 Childs Company. 11% Chrysler Corp (1)... 1 City Stores. ... . 9715 Coca-Cola (17%) 49% Coca-Cola (A) (3)... 28 Colzate-Pal-P (235). 7% Collins & Alkman. ... 201 Colo & Southern (3). 16% Columb G & E (1%3).. 76 Col Gas&EI pf A (6). 33 Columb Carbon (4).. 8 Comm Credit (1.60).. 20 Comcl Credit A (8).. 5515 Comel Cred 1sL(6% 1513 Comel Inv Trust (2) 99 Comel Inv Tr pf 6% 914 Comel Solvents (1).. 4's Comwlth&Sou (40¢c). 68 Comwlth&Sou vt (6) 20 Consol Clgars (5)... 46 Consol Cgror pf 6% . 3% Consol Film........ 61 Consol GasN Y (4).. 93 Consol Gas NY pf(5) 915 Consol Lanndries(1) 20 ConsolRwys pf (6).. 5% Contl Baking (A). % Contl Baking (B). Contl Baking pt (3 Contl Can (2%). “ont Insur (2.40). s 10 40 364 Corn Produ 34 Coty Inc Crown Co! Crucible Steel. § Crucible Steel pf (7) 13 Cuba Cane Products. 29 Cudahy Packing (4). 35 Curtis Publish (4)... 1% Curtiss W Deere & Co pf (1.40). Delaware & Hud (3). 112 Detroit Edison (8).. 121 Diamond Match (1).. 221, Diamond Mtch pf 1% 6% Dome Mines (1) 11 Domn Stores (1.20).. 10 Doug Afrcraft(t1%) 42% Drug Corp (4).. 53% Dupont de Nem ¢ 109 Du Pontd 93 74 Eaton Axle & Spr(1). citington-Schild pf., Eng Pub Svc (1.60).., 18' Equit Otfice Bidg 2% ie RR Fed Dept Strs (25¢). Fid Ph Fire In(2.60). 501% Firestone T&R pf(6) Fox Film (A) (2% Franklin Smn pf(7 21 Game 3815 Gen Am 24% Gen Electric (1.60).. 11's Gen Elec spec (60c).. 3014 Gen Food Corp (3).. 2'y Gen Gas&El A(e30c) 211y Gen Gas&E cv pf(6) 82 Gen Mills (3).. 2214 Gen Motors (3). 85 Gen Motors pf (5)... 31 Gen Outdoor Adv... 10' Gen Prig Ink (2%).. 4% Gen Public Service 221 Gen Ry Signal (5)... 1t Gen Realty & Util. 17 Gen Realty & Util 1% Gen Theatre Equip. 91, Gillette Saf Razor. 4514 Gillatte Saf Bpf (5). 4% Glidden Co pepf (7). 3% Gobel (Adolf).euera, 215 Aviation Corp (Del). Add op. High, Lo, 30 2 208 10015 86 6 608 3 w. ™ b 651y 184 4% 1% % 66 Lhbd Lkl » + Lk b+ + EREHPESL 2 & |+ o+ b e IS FEEFE F VPNV E - ERFES ¥ l BT Sales— Add 00. PR 10 Stock ané High. Low. Dividend Rate. 421% 18 Gold Dust (2%). 20% 68 - 1% Graham-Paige. . 4% Grand 7 Grand ('nion. . - e PNU NN BRANBNE LR AR RN A 26 Hackensack W (1%) 14 Hawalian Pineap (2) 1% Hay 60 Helme (GW) (17) 9% Hercules Mot (80c).. 81 Homestake M (7.80). 3 Houdaille Hershey.. 19 Houston Of 4 Houston Ol 124 Howe Sound (3) 27 Hudson & Man ( 7% Hudson Motor (1) 3% Hupp Motors 231 [linols Central (4).. 45 Ingersoll Rand (4).. 3% I S 4 InsurShr( 7% Interboro Rap T 92 Int Bus Machine( 17 IntCement (4). 13 Int Combustion..... 2213 Int Harvester (2%). 112 Int Harvester pf (7). 10 Int Hydro E1 A (2). 19 Int Match pf (4).... 7% Int Nick of Can(40¢). 1% Int Paper & Pwr (A) % Int Paper & Pwr (B) 14 Int Paper & Pwr C... 915 Int Paper & Pwr pf.. 25% Int Salt (3). 18 IntSilver. s 13% Int Tel & Tel (1) 10 Iat Dept Stores (2).. 814 Intertype Corp (1).. TB74 24 Jewel T = 80t 31 Johns-Manville (3).. Laugh pf(7) « sas City Southn. 9 3% Kan City Sou pf (). unn Dept Stra(1) er (J) & Co (1). ly-Spring Tire... " o SeoBuamSan 19 Kresge (S 8) (1.60).. 5 Kreuger & Toll 1.61). 18 _Kroger Gro Lehigh Valley R R. ., Lehman Corp (3). Lehn & Fink (3).... Liggett & Myers(15) Ligg & Myers B (15) Lima Locomot (m2). % Loew's Inc (3). . Loew's Inc pf (6%) Loft Inc...... Lorriilard (P) Co. Lou Gas&El A (1%). Louisfana Oil. ... Louis&Nashville( Ludlum Steel. McCall Corp (2%). McGraw Hill (1).... McKeesport T P (4). McKes&Rob pf(314) McLellan St pf A(6). MackTrucks (2).... Macy (RH)& Co(n3). 4 ManhatElev mod gtd Maracaibo Oll Exp. . Marine Midld (1.20). Marlin-Rockwell (2) Marshall Fleld (2%) Mathieson Alk1ll (2) May Dept Strs (2%) Maytag Co Maytag Co p g Maytag Co 1st pt Mengel CO.......... Met-Gold Pic pf 1.39. Mid Continent Petm. Midland Steel (3) i Midland Steel pf (8 Minn Moline Pow. M StP &S S Mar! i Mo Kan & Texas Mo Kan & Tex pf (7) Missourt Pacific. .. .. Missour! Pac pf (5) % Montgomery Ward.. Morrell (J) & Co (3). Mother Lode. Motor Meter G Motor Wheel (1). 8% Mullins Mfg. .. 11's Munsingwear Inc(2). M o T T T T T - - [<J L 8 B 108, 838, 39% 15 20% 198 Nat Dist I'rod Nat Pwr & Lt (1) Nat Dary (2.60). 1813 Nat Steel (2). 42 Nat Supply pf (7) 18 Nat Surety (2). 8 NatTea (1).. 5 Nev Copper (80c) 49% N Y Central (4)..... 10% N Y Chicago & St L. 120 N Y & Harlem (5) 2 N Y Insvestors.. 30% NY N H & Hart (4) 6l N Y Ont & Western 213 N Y Shipbuilding. 31 X Shipbldg pf(7) 9 Y Steam pf (6 9914 N Y Steam 1st pi 10 Noranda Mines...... 112 Norf & Westn (112) . 80 Norf & Westn pf (4). 313 North Am Aviation. i 26 Nor Amer(bl0%stk) 19% Northern Pacific 3) 19's 63 Ohlo OIl. b 1 Oliver Farm Equip. 26 4 OlivFarm Eq prpf. 61 1% Omnibus Corp. 581s 201 Otis Elevator 16% Otis Steel. 5474 29% Pacific Gas & El (2). 69}; 35 Pacific Lighting (3). 131% 100% Pacific Tel&Teleg(7) 133 114 Pacific T & T pf (6). 11% 4 Packard Motor (40c) 9% Panhandle P & R pf. 10% Paramt-P(m1.62%Dp) Park & Tilford Peerless Motor Car. Penick & Ford (1). Penney (J C) (2.40). % Penn Railroad (3)... Peoples D S pf (614) Peoples Gas(Chi)(8) Pere Marquette pr pt 4 Petm Corp of Am(1) Phelps Dodge Co. ... Phila Co 6% pf (3).. Phila&Reading C& I Prillips Petroleum. . Phoenix Hoslery. Plerce Oil. . Plerce Petroleum Pillsbury Flour ( Pirelll (A) (m3.13) Pitts United pf (7). Port Ric Am Tob(A)., Postal Tel&Cable pf. P o =3 " P TS OIS TR ressed Steel Car pf. Proct & Gamt ¢2.40). Proc &Gamb p1 (5).. Public Sve NJ(3.40). Pullman Corp (4) Pure Oi1 Purity Bake: 10% Radio Corp. 3% Radio Corp pf A 3. 2515 Radlo Corp (B) (5).. 6% Radio-Keith-Orph A, 20 RRSeclCstk C(4). 913 Raybestos Man (1.60) 45 Reading Rwy (4)... 3% Real Silk Hoslery. 4 Remington-Kand 3 Reo Motor Car(40c). % ynolds Tob B (3) Grande Ofl. ettt il AR Rl #Sig (Continued on Page 14.) 108 1047 14% 4+ 414+ 1 1 & 1414 441 - |+ 1+ + F ER P IF FIE RIFEEE » RPN H444+ 4 D. C, SATURDAY, OCTOBER 10 STOCKS GO HIGHER | INSTEADYARKE Early Irregularity Gives Way to Upswing When Buy- ing Appears. BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, October 10.—In quiet and on small volume, today's week end stock market made further advances, still stimulated by the Wash- ington plan for credit relief and busi- ness improvement. The market aas irregular at the start, absorbed realiz- ing at slight concessions and then worked slowly upward. Rails and industrials were favored in In the early ing moderate offerings, but they hardened with the rest of the list in the second hour. Among the stronger stocks were Baltimore & Ohlo, Great Northern preferred, Northern Pacific and Norfolk & Western. Railway equipment issues were strong on the theory that anything that bene- fited the rallroads must eventually help companies selling rallroad supplies. Pullman made a new high on the re- covery, up over 2 points. and General Railway Signal by a substantial gain reflected the local award of a large contract fcr the new subway system. Short covering was in evidence in stocks such as J. I. Case and Allled Chemical, particulazly the former. It looked as though the advance was being helped by judiclous operations on the 3 |part of professicnals who have aban- HERFS FIEFEER & FEOREEE X ¥ FES | Company 12| Ciampion Hdwe doned short selling and taken the other side. Case was up neasly 4 points and Allled Chemical about half as much Eastman Kodak, whichl was lower at the opening, more tharr made up the loss on the same sort <f buying. A noticeable feature wns the greater interest taken in low-priced stocks. Collins & Aikman, which reported larger profits for the six months end- ing August 29 than for the same period in 1930, ran up easily. Similar demand came into the low-priced rajilroad stocks. Brokers are more lenient nowadays in the way of margin requirements on stocks selling at $10 or lower and that helps, too. Pending publication of the unfilled tonnage statement after ghe close, United States Steel fluctuated uncer- tainly. It dipped under 70 in the first hour, but then recovered. General Motors, General Electric, Consolidated Gas and other pivotal issues were not importantly changed. ‘The market was not disturbed by the continued outflow of gold and the er- ratic fluctuations in the exchanges. It was content to belicve that the United States could lose more of the yellow metal without any serious results. ‘Swiss francs reacted today, but the Holland exchanges continued their advance. French francs were slightly highar. RAILROAD LIST SHOWS REVIVAL OF STRENGTH | pecial Dispatch to The star NEW YORK, October 10.—Sentiment or. rallroad stocks has turned abruptly in the last few days, due to the declara= tion of the regular Atchison dividend and intimation that measures of relief, aside from rate increases, are being de- veloped in Washington and in New York. It has been apparent that the raflroad stock market could not improve until liquidation of railroad bonds was checked. This has now happened. A | majority of the rail stocks are seiling on a yleld basis that compels attention from those who have for years studied railroad investments and still belleve in | them. DIVIDENDS DECLARED NEW YORK, October 10 (#).— Reduced. Pe- Rate. riod. .se . mitted. nvestors pf..s1.5 Eiec Piib Ser pf 2 General Parts pf’ 1 1n Am Euro (H:ll;‘kwlhls . ‘A at 6 pf.§ Cent Til Sec 3150 P ... 37%¢ Gities ‘Ber Bic 511 i Crandall McKenzie s & Henderson .. 1 Dunlop’s (John) Sons c 18t PL...... 3151 Farmers & ‘Merch Bk (Sharpsburg) . 12.50 {ilfl (W P) Printing 30c daho Pow 7% pf.31.75 Do. $6 Invest 8 Sec b Falls Do, 2nd £173 Mer Tr (Waterbury) $3 Municip Ser Co pf $1.50 Nat Short Ter Sec A Do. of .. 8t Paul _Fire & Marine Insur.. . San Joaquin L% Secur Corp Gen Cm Do. 37 b Do 36 Dpi Selfridee Provinciai er Dep Rec for Ord.32 Do. Ord ... | Signature 13 nc_ 3350 | U_8 Natl Bk San o Diego) .. 5 Sep. Oct. NATIONAL BANK 14th and G Streets Banking in All of Its Phases Money to Loan red by first deed of trust on real estate. Prevailing interest col jon. Joseph 1. Weller &wse )TBPOR'E_&; ox IDITION United States Savings Bank Of Washington. in the District of Columbia, 2t the close of business on September 20, URCES. 2,062,280.34 12002 061 1,081.19 $73.679.15 87,936.56 6.680.09 324.426.64 554.49 ..$3,057.283.88 . Reai ‘estate owned other than banking house Cash and due froj Other assets .. $100.000.00 150.900.00 151,264.34 21,544.96 [UTT, cashler of 4 abo s G0, solemany swear that the va’ld' WN“ l‘::f true to the best of G le LASHMUTT, Casher. Subscribed and ‘swora (o before me tis h_day of " 9 OMAS_E. PETTY, — THOMAS Staty Public. Correct—Attest. WADE H. COOPER. ‘D._BARR: Tt | stateryent, ! ber 138 banks with about $55,000,000 | Of Washington. in tme District of Columh sirices *FINANCL Trade Reports at a Glance. By the A-soclated Pr JIEW YORK. tober 10.—Tablold review of wholesale and retail reported to B busir-ss_con this week from the following centers, fons and the state of crops, as radstreet's , on the basis of comparisons with conditions in the same areas in the corresponding week last year: ‘Wholesale and job trade. Pittsburgh Quiet : Qu Retail trade. Qui Manufacturing and industry. Collections. Quiet Slow Slow Crops. et Good et Quiet Des Moines Kansas City. Baltimore .. Quiet Qui et Comment. Pittsburgh—Glass slow, about 45 per cent below last year; coal orders up, but production low; steel still at 30 per cent. Louisville—Merchants buying only for immediate needs; manufac- turing an part-tim e; tobacco crop completed. Cleveland—Retail trade and coal business injured by warm weather; manufacturing on 30 per cent basis. mnen-on—seplember auto output un! estimated not more than 150,000 Milwaukee—Strikes in hoslery mills; light frost caused small dam- age; farm implement makers recalling workers to short time. Chicago—Rain neécded over Winter wheat country; steel buying increased; warm weather restricting sales. St. Louls—Slight decrease in volume dry goods; demand for moderate- priced articles growing; drugs and chemicals show slight increase. St. Paul—Wholesale trade generally on par with last year; crockery “and glass quiet; groceries steady. Minneapolis—Oil sales satisfactory; wheat remains at 60-65 cents; flour market quiet. Duluth—Wholesale and jobber trade below last year: industry slow. Omaha—Dry goods worse fallures; building at standstill. Kansas City—Wholesale metals, own; building slow: labor conditions Baltimore—Business again hurt and wearing apparel slow; unemployment no Des Moines—Retail sales up; factories on Teduced time; many bank groceries, dry goods holding their by warm weather; manufacturing slightly more active; men's clothing poor. LIQUID POSITION OF U. S. BANKS SHOWN BY CONTROLLER'S CALL Have Greatly Increased Cash Assets in Recent Months. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, October 10.—If the de- positor in a National or State bank or trust company will take the trouble | to look at the figures published by these institutions under the call of Septem- ber 30 he will at once realize the un- usually liquid position of the banks generally and their ability to meet any crisis that may face them. For weeks they have been fortifying themselves against untoward circumstances and. while from the nature of their liquid | assets their earnings may not be sat- | isfactory to stockholders, their position is most reassuring to depositors. ‘The lquid position of a bank is ex- pressed in the item of its cash on hand, the amount due from other banks and its holdings of Government securities. These figures are usually set out as leading the list of the bank’s | resources. There are other items less | visible in the statement, but also of a | liquid character. Analyzing these re- ports, one finds that among the New | York institutions the ratio of "liquid assets to deposits runs from 40 to 60 per cent. In one instance the total of | cash and Government securities exactly balanced deposits. Normal Condition. Under normal conditions & bank thet had liquid assets, say, of 20 to 25 per | cent, would be considered in an un- usually sound condition. What has | been &hown New York ‘banks is | duplicated in the statements already published by institutions in other large centers of the country, as well as by | many so-called “country banks.” Before the September 30 statement ppeared it was not possible for the| average bank depositor to determine just how liquid his bank had been | made, for the last previous report was that of June 30. In the intervening, three months had occurred the glrelun i shrinkage in securities in world history. | Now that up-to-date figures are avail- | able, however, there is no longer justifi- | cation for that “foolish alarm” de- | scribad by President Hoover in his| which had been “accom- panied® by wholly unjustifiable with-| drawal of currency from the banks” and haid led to hoarding estimated as high as' $1,000,000,000. Another phase of this is reflected in the taking of money from the banks and depositing | it in the postal savings system to such | an extent: that the deposits of this sys- | tem at the end of September approxi- mated $450,000,000, of which nearly 10 per cent had been added during that month. During 1930 there were in the United States 1,326 bank suspensions, involving deposits of $864,000.000. Of this num- deposits reopened. In the eight months to August 3L this year there were 932 suspensions, affecting deposits of about $699,000,000. Of the banks that had failed no less than 195, with deposits of $117,000,000, have reopened. The Sep-| tember record of failures was a serious one; laso that in the first week of Oc- tober. It was the steady increase in the number of suspensions this month e 7!&!0RT£,;C;%ND‘KT;)N Bank of Commerce & Savings the close of b September 29, 1931. .$1,200.464 .50 -~ . 2230 Tment . B 336,739.78 | curities owned .. . Other bonds. stocks curities owned . . Banking house, ' $263 033, furniture and Axtures, 328,375.57 . % 20130945 a) AnKInE house - . s . Cash and due from Banis... hecki ash 45.191.05 236,261.34 10. Outside c LIABILITTES, . Capital stock paid in- 16. Surplus | Undivided ' Drofits— et 18. Reserves for dividend: tingencies. ete. leserves for inte; and other expenses accrued and unpaid ... : t te: my knowledge and M‘:V“‘UROOI‘I o s Subscribed_and sworn to before This llhSc )o( October, 1931 (Seal. HARRY 8. woLe Notary Pul 3 Correct—Attest: o emERG, . D s ROSENBERG, ELIE TZ, JOHN M. RIORDON. , Directorsa National v e Organization desires to sublease its "spa- cious quarters in modern, cen- trally located office building. Greatly reduced rental. Address Box 210-H . Star Office and in the alarm of the deposifor that had much to do with bringing about ‘Tuesday's conference and the subse- quent formation of the banking pool. One of the unfortunate results of oank suspensions is the indefinite tying up of the funds of the depositors. This works great hardship on individuals and on their communities. Receivers of banks have been extremely slow in liqui- dating their institutions and in return- ing to_ depositors that portion of the proceeds of marketable assets due them. This delay was carried to an aggravat- ing degree in the case of the Bank of | the United States. Normally there is no reason why & bank that may event- | ually liquidate at 60 to 75 cents on the dollar cannot pay out to its depositors, within & few weeks of is suspension, at least a third of their claims. This has been recognized by-the con- | troller of the currency who will recom- | mend a plan to Congress under which the creditors of insolvent banks may ob- tain a portion of their deposits within a few days of the suspension. This scheme provides for the formation of a “revolv- ing fund,” out of which these early pay- ments may be made and the liquidation of assets facilitated. There are numer- ous cases at present where local and State funds are represented in the de- posits of closed institutions. The in- availability of these funds has immedi- ately checked all public improvements in the neighborhood and added to the number of unemployed. (Copy:ight. 1931.) AT - - BANKRUPICY LAWS DECLARED FAILURE 'Easy Method : .of Escaping Obligatiens Is Provided for Unscrupulous Persons. BY DEAN DINWOODEY. ‘The national bankruptcy act, the medium most often invoked by in- solvents to discharge their debts, i a complete failure, the Departments of Justice and Commerce have found after amr {nvestigation into bankruptcy law and practice authorized by Presi- dent Hoover in July, 1930. This end other -conclusions ~have just been reached on a Federal law that has been in operation for more than 30 years. The bankruptcy courts are the refuge of some business establishments which recklessly, extravagantly, and often with deliberate intent, incur heavy lia- bilitles far greater than their -assets, | according to Solicitor General Thomas D. Thacher, who was placed in charge of ‘the investigation. =~ Upon its in- solvency such en establishment seeks | the aid of the Bankruptcy Court, which distributes its almost negligible assets among creditors and then grants a clean bill of health, permitting persons ope;ilhn( the business to scek further credit. the bankruptcy law and practice” after being appraised of the fact that losses through bankru, are averaging $750,000,000 each year. A committee composed of Tepresentatives of the United States Chamber of Commerce, National Retail Oredit Assoclation, American Bankers' Association, National Assocfation of Retail Credit Men and ‘the National Assoclation of Manufac- Figures Prove That Institutions of U. S turers has been assisting in the inves- tigation. Solicitor General Thacher has em- phasized in the report being prepared of the study that “the bankruptcy court kes increasingly become a dumping ground for the refuse of commercial wreckage and a sanctuary where debtors obtain cancellation of their debts re- gardless of how they may have wasted their property.” B | Measures proposed for the amend- | ment of the bankruptcy act were dis= cussed by Mr. Thacher and his assist- ants ‘with the ‘judges of the United States Circuit Court of Appeals, who have just ‘completed their annual meet- ing here. This conference of judges agreed that the law had falled to achieve its purpose. Recommendations to Congress for drastic revision of the |law along the lines suggested by the | investigators were adopted. Thus Con- gress will have thrust upon it another | problem for consideration when it con= venes in December. It is presumed that the report will be made the subject of recommencations in the presidential message. (Copyright. 1831.) i First Mortgage Loans ! !awut Rates of Interest and Commission | Thomas' J. Fisher & Company, Inc. E e Sl - e — 1 SINCE 1899 MONEY TO LOAN at 5Y%% and 6% Interest Before Placin, Renewing Your st 2d Trust | Consult WELCH Realtor Loan Specialist | 5th and N. Y. Ave. (National Savin, Trust Co. Blds.) 5 Blds Charter No. T446. REPORT OF CONDITION OF THE Reserve District No. 5, Commercial National Bank 9( ‘Washington, in the District of Cclzum});;.llt the cicse of business on Septe 1. Loans and discounts . 2. Overdrafts .. 3. United States Gove: . Other . Banking house, $1,683,377. 8. Reserve with Federal Reserve Bank . Cash and due from banks 10. Outside checks and other cash ite: surer . Capital stock paid in lus . 3 . Circulating notes outstanding 22] Demand deposits . 23. Time deposits ... 24. United States deposits Y 26. Bills payable and rediscounts 30. Securities borrowed 31. Other liabilities ‘Total above ‘statement Subscribed and sworn to before me Seal.) FIRST NO CU 6% FIRST MORTGAGES Over a Third ; of a Century Without a Loss RESOURCES. ent securities owned. , stocks and securities .owned. . furniture and . Real estate owned other than banking house . Redemption fund with U. S. Treasurer and due from U. S. rofits—net . . Reserves for dividends, contingencies, etc . Reserves for- interest, taxes and other expens: need worry, for his selection of them was wise, principal is improved \'Vashington real estate which our conservative judgment has appraised—and in ad- dition they pay this liberal interest. . $5,860,280.74 e 430,88 2,754,553.15 4,243,041 64 1,750,039.668 508,349.38 5 z . 830.875.66 1,147.440.01 40,286.00 0,000.00 000.00 ................ ve..-$18,752,33: LIABILITIES. $1,000,000.00 400,000.00 30741286 43,539.64 Due to banks, including certified and cashiers’ checks outstanding | District of Columbia, City of Washington, ss. 2 I, F. H. COX, cashier of the above-named bank, do solemnly swear that the is irue to the best of my knowledge and belief. F. H. COX, this 9th day of October, 1931 WM. L. THOMAS, Notary Public, D, C. hier. E. C. DAVISON, GEORGE TULLY VAUGHAN, NATHAN B. SCOTT, 2d, Directors. MORTGAGES STOMER OF OUR because - securing the May be purchased in -amounts . from $250 up. - ;