Evening Star Newspaper, July 4, 1935, Page 9

e————————————— === ASK_YOUR DRUGGIST —xu= Keeps Hair in Place> MEN!/ TCASH for GOLD tehes—diamonds—gold teeth and discarded jewelry. For over 50 vears we have been buying old gold and paying SPOT CASH. é’raver: and Fine Printers 611 TweLFTH STREET Producers of Distinctive Business STAT:ouE?' e/ Business CARDS Let us add power to your Business Correspondence Phone for our Representative without obligation 4860 PHONES DI 48 100 TO ANYONE WHO CAN FIND ANY WATER IN FAIRFAX PAINTS Martin’s Trim and Body Green Will not fade. Nine beautiful shades of green to select from. Ideal for shutters, fences, etc. BUTLER-FLYNN 609 C St. N.W. Metro. OISI Established in 1845 J. FRANK KELLY, Inc. ek ko ke - Attractive White Pine Kitchen Cabinets $16.50 < ° 3-Piece Breakfast Nook Made of white pine. 4 feet wide. Consists of Table an Yooy artiiic oo $13.50 NEED MATERIALS FOR REPAIRING. Brin your list i us for & FREE estimate. You can buy Lumber. . Miliwork. . Hardware. Paints, Sand, Gravel. Cement. Roofing in any quantity. Come in NOW. 3. FRANK m ',: >, Lumber & Millwork X | » * 2121 GA.AVE. NOrth 1341 AARARRARRARAARRARRARARAR | TALK 70 <\ OCEAN EITY MD FOR AFTER 7 PM. INSTEAD OF WAITING FOR B8:30 STATION-TO-STATION CALL RESORTS ATLANTIC CITY shore Vacation Choice section of beach... center of boardwalk attrections... spacious sun decks overlooking ocean...complete health baths, Dennis luxuries and traditional cuisine. Reasonable rates, both Plans, upon reque: [ FRARRARRRRRRRKIERKRKRRARK | FEAELRRRRRERRRRRRRRRRE R R DA AR RARARAA KA AR AR AR AR ASSEMBLY MEETS ATLONG'S BIDDING Louisiana Observes July 4 Under Bayonets of Na- tional Guard. By the Associated Press. BATON ROUGE, La., July 4— Louisiana celebrated Independence day by preparing for another of Huey Long's special legislative sessions in militia-guarded Baton Rouge. at Senator Long's bidding to meet at 11 pm. (Eastern standard time) to pass more laws aimed at the antago- nistic city government of New Or- leans. Long hopped aboard an airplane yesterday and sped to New Orleans to take direct charge of State affairs. He was asked if he would lexislate Mayor T. Semmes Walmsley of New Orleans out of office. “I don’t know,” he answered. haven't decided yet.” Long said the Assembly, tie third this year under martial law, provide funds to pay salaries of New Orleans police and firemen and would furnish money for street construction and maintenance in the city. The matter of pay for the two city departments has been embarrassing to Long since he took control of them recently. Workers in other city de- partments, still under Walmsley’s control, are being paid by the Fed- eral Emergency Relief Administration National Guardsmen were still here | today enforcing the martial law nro- | claimed last January when citizens | took up arms against Long's “dic- | tatorship.” Long said the session would be concluded in the usual five days and that he would return to Washington | Monday. He stepped from the a: plane at Shusan Airport last night | | with five bodyguards and was met by | otner followers. “I 'HEAVY FINES GIVEN ‘REPEATER’ DRUNKS Judge Ralph Given Imposes Pen- alties of $50, or 60 Days in Jail. Today was no holiday Court, Judge Ralph Given having in- augurated a campaign to cut down the number of arrests for intoxica- tion by sentencing ‘repeaters” to pay | fines of $50 or serve 60 days in 10 of the large number of cases which he handled during the morning In commenting upon the heavy fines, in most of which cases the de- fendants were unable to pay went to jail. Judge Given declared that Washington's record of arrests is misleading, in that most of those taken into custody are persons who have been arrested time after time. The record:= would indicate. he de- clared, a much greater number of persons arrested for intoxication than are actually arrested. In one case today, George Chandler had been released on his personal bond just promised the court to keep out of trouble. When returned today by Policeman C. G. Darnell, Judge Given said: ago and your story that you were waiting for a street car does not go this time. You are always waiting for something, so I'm going to let you wait for 60 days before you have an- other opportunity to appear in this court.” Those sentenced to pay fines of $50 or serve 60 days were: Frank Alfred M. Cole, Thomas Whitestone, John P. Murphy. Matthew Fahey, Philip C. Lack nnd Max Ech. FUNERAL RITES TODAY Widow of will Buried in Greenmount Ceme- Minister | tery at Baltimore. Funeral services for Mrs. Annie Wright Ball, who died Tuesday at Emergency Hospital, were to be held at the home, 2440 Thirty-ninth street, at 2 pm. today. Burial will be at Greenmount Cemetery, Baltimore. Mrs. Ball, widow of Rev. W. D. Ball, formerly of Baltimore, was secretary- treasurer of the Realty Appraisal & | Title Co., of which her brother, M. J. Wright of Washington, is president. | She was also a charter member of the Soroptimist Club here. Surviving are a sister, Mrs. Carrie Wright of Worthington, Ohio, and a s e - » CITED FOR HEROISM Commendation for heroism was given to Luther C. Crowley, hospital attendant at the Veterans' Admin- istration Home near Hampton, Va. | Gen. Prank T. Hines, administrator of veterans’ affairs, praised Crowley as “an inspiring example for all em- ployes of the Veterans' Administra- tion.” In a letter to Crowley, Hines de- clared: “Your presence of mind, | loyalty to duty, and the meeting of the emergency with personal risk to yourself, are commended and I as- sure you are appreclated.” S, Dancer Sues Ex-Husband. LOS ANGELES, July 4 (#)—Helen Lee Worthing, former New York stage | dancer, filed suit yesterday in a Su- | perior Court against Dr. Eugene C. | Nelson, wealthy colored physician, her under a property settlement ex- pected when their marriage was an- nulled two years ago. RESORTS. ATLANTIC CITY, N. J. Lawmakers hurried to the capital| would | in Police | two days ago, when he | “I was kind to you two days| Robinson, Webb King, Leslie D. Elder, | FOR MRS. ANNIE BALL | Be | brother, M. J. Wright of Washington. | who rescued a patient of the home | from drowning in a canal May 26.| seeking $11,125 she claimed was due | THE EVENING STAR, WASHINGTON, D. C., THURSDAY, JULY 4, 1935. DAILY SHORT STORY. MIND OVER MA TTER BY STANLEY CORDELL. 'HE mind,” said Sam Wil- “is always the victor over matter. The men- 1al condition of a man determines, unconsiously, what | his physical condi- | tion shall be. A | versor unknowing- iy abused his phy- sical structure be- cause he won't { think right.” “That's ar old chestnut, Sam,” I grinned. “Can't you think of something new to tell us?” Sam smiled good naturedly. “May%e,” he said, “I can. You recall that salesman who was in the other day Lrving to sell you & new line of goods? He misrepre- sented the merchandise, told vou it was a far better grade than he knew it to be. And it was plain that the chap himself belicved everything he told you. That was hecause re'd re- peated the same story so many times. “Now, the chap I'm going to tell you about wasn's so different from that salesman. He went by tne name !of Brown; owned a small clething store over in Buiton. Brown was a bright youth, good locking and popu- | 1ar among the younger set. He had a big following at first, and cleaned up a tidy profit. But after a while the number of nis customers began to fall off. You tee, Brown utcame known as a man who would p.umise ! most anything in orcer to make a sale. If his stock lacked a required |article, he'd promise to have it on hand the next da o the next, know- | ing full well thut to do so was im- possible. “Brown was & past master at mak- ing apologies and smoothing things over, but apologies anc excuses won't provide a pair of pents for a man who is planning to wear them on a certain night at a certein party. And at the end of tae second year the youth's profits nad diminished 50 per cent. Brown knew the answer, and | knew aiso that it was too late to! remedy & condition which he him- self had created in a too eager de-| sire to maintain a lerge trade. “Things went frcm bad to worse and Brown soured on business. the writing on *he wa!l: he knew that failure stared nim in the face. “Thoughts Jf bankruptcy madz him weak with humiliation. It occurred liams. | to him that there was a bare possi- | bility that he might sell the busi- ness. With this in mind he journeyed | to a neighboring town and inserted | an advertisemeut in the local news- paper. “As fate would have it, a prospect showed up with.n the next three days. Brown, with keen foresight, had arranged matters sc that condi- tions in the stcre would appear prosperous. During tbe brief 1eriod that the prospec:, Wiison, bv name, was in the store, at least a half dozen customers entered and made purchases. “Wilson was impressed. The ap- pearance of the :tore attracte¢ him. Mr. Brown's manner was open and frank. The town secmed to ke alive to its opportunities. And ao one, because Brown was really a likable chap, was prone to apprise Mr Wil- | son of the true ccnaition of aTairs at Brown's clothing store. “There was ‘ust cne thinz that rankled in the buyer's mind. He couldn't understand why Brown should ing so well. And, in open ness, he asked tne reasons. “Brown smiled sacly, lowered his | voice and explained cuietly that his wife’s health demandeo a chanze of irank- proprietor for | Brown was @ past master at making apologies and smoothing things over. the ciHthing | It was not difficult to read | wish to sell a business that was pay- | climate. A light touch of tubercu- iosis. It was abso- lutely imperative that he gzet her iato a drier atmos- phere. “Wilson was touched. The grief on Mr. Brown's d face made him want to burst into tears. He ex- pressed his sym- pathy, and brought the conversation " back to the busi- ness at hand. It seemed a pity that Mr. Brown had to zell, but in view of the fact toat a change of climate was imperative for Mrs. Brown, would Mr. Brown con- sider a cash offzr for a figure sughtly lower than the original?” “Mr. Brown considered, sighed deeply and finally esieed. Inwardly he was elated. The “figure” was far greater than he had hoped for. “Wilson returned to his own town where he owned considerable [.roperty on which he plannea to raise the necessary funds, witn a promise to write within a few days as to the success of his activities. Brown spent the next week in planning for a hurried departur>. He knew that after the deal was consummated it would be wise o leave town for a month or two, just w make his story about a drier climate for nis wife seem plausible. “A letter arrived from Mr. Wilson, stating that Le was having some difficulty in raising the money, but expected to nhave the cash within the next few duys. Brown tecame anxious, and replied thet Mrs. Brc wn's condition was sieadilv growing worse, and urged Wilson to put through the deal as soon as possibie. “Another week passed. Brown be- gan to lose hope. He wrote 3 second letter, stating that he has made | reservations to leave for the West | with Mrs. Brown within the next | week. Couldn't Mr. Wilson horrow Hhe money somewnere else? “Wilson was apparently impressed by the urgent tne of Brown's re- | quest, and by pity for poor Mrs. | Brown, who, in reality, was a obust | person of some 130-odd pounds, and who had never beer ul a day in her life. “Fearful that Wilson might get discouraged at his failure to negoti- ate a loan, and vack down on the deal, worried over the financial con- | dition of his business which was get- ting perilously close to the ead of its rope, Brown made a hurried trip to Wilson’'s home tcwn. He con- | sulted with the buyer, desp-rately described his wife's condition as dan- | gerous. and asamn urged Wilson to hasten matters. | “wilson, now teeling obligated to aged, by offering & bcnus and o tre. mendous rate of interest, to raise the cash. The deal was consum- mated “Elated beyond words Brown swuffed | the money into his packet and rushed home to tell th: joyfu news ‘c his wife—" Sam paused and knccked the ashes from his pipe. ‘[he ending of the tale, I thought, was rether essy to apprehend. “And I suppose,” I said, “when | Brown arrived Lome Le foundi that his wife really had coutracted ubercu- | losis—as a result of Brown's copcen- tration on the subject?” “No,” said Sam, “she didn’t” looked at me and smiled. | Brown who contractec it. He “Tt was He had | worked himself up .o over the deal, | worried so much about the cordition of his business, and talked tunercu- losis to such in extert that he had ‘u)“go West after al'—to cwrs him- (Copyright. 1935.) CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. is today’s summary of corporation news prepared by Standard Statistics Co., Inc, New York: larger car sales in first six months were 25 per cent above like 1934 pe- riod. It was stated production sched- | ules called for 6,400 cars in July, 1935. Kelly-Springfield Tire Co.—Hearing of company’s reorganization plan was continued in Federal Court, Baltimore, with more than two-thirds of stock- holders assenting to the amended plan. Denver & Rio Grande Western Rail- road—Company is expected to file a reorganization petition under section | 77 of the amended bankruptcy act. Western Pacific Railroad Corp.— Subsidiary, Western Pacific Railroad Co., is expected to file reorganization | petition under section 77 of the amended bankruptcy act. National Department Stores, Inc.— Judge Nields, in Federal Court, Wil- mington, Del, reduced company's bankruptcy expense account to $284,- | 900 from $1,086,750. | United States Steel Corp.—Company is dismantling several additional plants of subsidiary companies. This action was said to be in line with the decision of the corporation to get rid of obsolete or poorly located mills and concentrate activities, wherever pos- sible, at the more economical mills in locations near the sources of con- sumption. i Associated Gas & Electric Co.—Con- solidated statement of sysfem for 12 months ended May 31, 1935, showed net, before interest, preferred divi- | dends of underlying companies, etc., of | RESORTS. TLANTIC_CITY N. .—Brighter Aliraetive than ‘ev tions, cotta; Hotel accommoda. (furnished le_cost. OCEAN Cl'l‘Y MD. éoloN‘]‘AL On Boardwalk. £3.00 up daily Mi E -" FACING THE OCEAN. From $3.25 Daily, Free Parking and Bathins. c hrn Weekly, Meals Incl Sreel unt Parkine Spres. rn"AE TUBLAN WERNERSVILLE, PA. ;WERNE”VII.I.E. PA." A—u-vl-,um. 28 Wily. STEAMSHIPS. ;& at R. R Tlclet Offices about. "H 'WER TOURS” to popular !lew ngla g ) Via'the protected ‘WATER ROUTE. inl'u. | JOHNNY AN dancing and entertainment HAMP and HIS ORCHESTRA ATTRACTIVE AMERICAN NEW YORK, July 4—The following | Packard Motor Car Co.—Company's | \ | 827,421,112, vs. $28,176,670 | months ended May 31, 1934. | Southern Railway Co.—President of company was quoted as follows: “Southern Railway has just met its | ixed charges due July 1, in 12 | difficulty.” United Aircraft Corp.—It was said United Aircraft Manufacturing Corp., subsidiary, has unfilled orders amount- ing to more than $13,000,000, com- | pared with $7,500,000 on December | 31, 1934. Chrysler Corp.—Retail deliveries of Chrysler cars by Chrysler dealers totaled 1,173 1n week ended June 29, a gain of 4.6 per cent over deliveries in ‘previous week; Chrysler deliveries in 26 weeks ended June 29 were 23510 units, 91.2 per cent above like 1934 period. Graham-Paige Motors Corp.—Com- pany shipped 1,750 cars in June, high- est for any June since 1930, when 13,067 cars were shipped, and compar- | ing with shipments of 1,738 cars in May, 1935; shipments in first six months amounted to 14,124, against | 11,489 in first half of 1934. | Foundation Co. of Canada, Ltd.— Deficit, year ended April 30, was $9,066, vs. net income $216,962. General Foods Corp.—Federal Judge Goddard, New York, granted Dunlop Milling Co., Igleheart Bros., Inc., and Postum Co., Inc., subsidiaries of com- pany, temporary orders restraining collection of A. A. A. processing taxes due July 1, 1935. General Mills, Inc.—Dispatches re- ported the filing by seven subsidiaries of this company of suits in Federal courts at several centers seeking in- junctions against collection of process- ing taxes under A. A. A. Gold Dust Corp.—Subsidiary, Stand- ard Milling Co., obtained a temporary restraining order against collection of processing taxes. Addressograph-Multigraph Corp.—A six-week strike at corporation’s Oleve- land plant, involving 1,200 employes, ended when officlals of company and union leaders arrived at an amicable agreement. Shell Union Oil Corp.—~Tenders have been asked of 5% per cent convertible preferred stock of company in an amount sufficient to absorb $1,000,000; price is not to exceed $105. Socony-Vacuum Oil Co., Inc.—Sub- sidiary, Magnolia Petroleum Co., posted price of 75 cents a barrel for Mirando fleld of Southwest Texas. —_— Takes Hospital Post. ‘WARRENTON, Va., July 4 (Spe- cial).—Mrs. R. Carter Beverley accept- ed the position of ess of D EUROPEAN PLAN RATES en Beach Restaurant ¢ Sidewalk Cafe WILLIAM HAMILTON, Genera! Manager Washinston Office—Phone Nathaal 5387 manager the Faugquier County Hospital and be- gan her work July 1. Mrs. Beverley is the widow of Rev. R. Carter Beverley jr., of Richmond, and daughter of the late C. E. Tiffany, president of the nuqmu National nuk‘md Mrs. take over Mr. Brown’s business. man- | 1935, and | does not face any immediate financial | WEAK 1927 MOV FORST. PAUL CITED Depression and Series of Bad Harvests Bring Early Return of Troubles. BY CHARLES F. SPEARE. Spectal Dispatch to The Star. NEW YORK, July 4—It is an old story that the Interstate Commerce Commission in 1927 agreed grudgingly to the reorganization plan of the Chi- cago, Milwaukee & St. Paul Railway and let it go through as a matter of policy, while convinced it was unsound. What it feared has come to pass soon- er than expected, having been forced by the depression and a series of bad harvests in the territory of the system. Probably the weakest feature of the 1927 reorganization was the creation of $106,000,000 of mortgage bonds and about $183,000,000 of convertible ad- justments. The old Chicago, Mil- waukee & St. Paul general mortgage issues, of which there are six series, were not disturbed in the reorganiza- tion. It is these bonds which, in the tentative scheme of adjustment of the capital of the present Chicago, Mil- waukee, St. Paul & Pacific Railroad, are to have their interest scaled down to two-thirds of the contract amount, the other third to be contingent on earnings for a 10-year period. Depends on Recovery. If it happens that recovery comes quickly and the full interest is earned for any three years or for the last two uary 1, 1936, or is earned in any three consecutive years after the first five years, all of the interest becomes a fixed charge. The convertible adjustment 5 per cent bonds were given to holders of Junior issues of the old system, and particularly to the investors in the Puget Sound Division of the St. Paul. They became cumulative January 1, 1930. In 1929 the full 5 per cent had been paid and the bonds had sold up in the 70s. In April, 1930, semi-annual interest of 2!: per cent was distrib- uted, but the following October the road had to squeeze its cash resources to pay 1% per cent. This was the last ments, which enter the present era of reorganization with an accumulation of 26 per cent, or, roughly, $47,000,000. These bonds were essentially specu- lative. No one with his eyes open would have bought them with any other motive. In a little less degree the general mortgage 5s were specu- lative. They had an equity position which entitled them to a fair status | with those who believed that, in a | normal period, the St. Paul could pull through even though it had reorgan- ized in 1927 on a basis that compelled constant and liberal additions to sur- plus over fixed charges in order to| permit it to go through the ine\mble cycles of traffic shrinkage. Differs From C. & N. Unlike the Chicago and North- western, the St. Paul permanently weakened its position by fastening on to the old and well integrated system in 1913, a 2,000-mile extension from the Missouri River to the Pacific Coast. This was an adventure in raflroad building that should never have been made, for there was no need of a third line paralleling the Great Northern and the Northern Pacific. The existence of it becomes a matter of deep reality now that the St. Paul has, for the second time in less than 15 years, found itself unable to meet its interest payments. most in the minds of railroad creditors heavily involved in railroad securities —as, for instance, the life insurance companies—whether they shall pro- ceed along the former lines of reor- ganization or accept the changes ap- parent in the transportation industry and make their plans for a new capital set-up accordingly. As stated above, the tentative plan of reorganization does not disturb general mortgage bonds. It provides for payment of the equipment trust to be extended and paid off annually in the amount of 20 per cent of the principal figure. The $106,395,000 of exchanged for 5 per cent income bonds, thereby becoming a contingent rather than a fixed charge and re- lieving the company of a $5,300,000 annual lability in the event that earnings do nof} improve. The $182,- 873,000 of adjustment 5 per cent bonds, with their 26 per cent cumula- tive interest, are to be converted into 5 per cent non-cumulative pre- ferred stock, with $25 par value, and the existing preferred and common ON YOUR Read It you have a definite trip planned for your Summer vacation you will want to be posted on Washington happenings through The Star. Mail or leave your address or itinerary at The Star Business Office, and The Star will be mailed to you with the same dispatch as if you were in your own home in Washington. The Sat, years in the five years beginning Jan- | disbursement made on the ntuun-l It raises a question that is upper- | today, and especially those who are | notes and certificates. The latter are | 5 per cent mortgage bonds will be | The Star stocks, which have only a nominal market worth today, will get new preferred and common. Vital Facf A realistic approach to Lhu reor- ganization is seen in the admission, by at least some of the largest credi- tors, that, in setting up the 1927 plan, the bankers and their railroad experts were more optimistic over the future than any conditions, even eliminating a depression, warranted, for nearly $290,000,000 of previously fixed and contingent interest securities are to e wiped out and replaced in part by issues that are dependent for income on satisfactory earnings. ‘This is a long step in the direction of taking account of the two factors in the railroad situation that were not apparent 10 years ago, namely, competition with the motor bus and truck, which has seriously affected the St. Paul’s earnings, and the increasing proportion of gross earnings that each year goes for wages and taxes and probably will make an impression on operating costs as fuel and materials have to be purchased in the future. In this particular instance the new plan at least tacitly recognizes the mistake made in building the Puget Sound extension. An attempt is made to rectify this by cutting down a capital structure that previously had accepted at a considerable value the permanent worth of this 2,000-mile arm of the system into a territory already adequately supplied with transportation facilities. It is quite likely that the main con- test in the St. Paul plan will come from the junior bond holders, or those owning the general mortgage and con- vertible adjustments. These are widely held. It will only be, however, as these groups recognize the perma- nent changes in transportation and | make concessions to it that the St |given a credit at which it can meet the demand of a public depending | upon it in the 12 States in which it DEPOSITS EXCEED Total at End of May Is Lower Than in April, but Well Ahead of Year Ago. Bpecial Dispatch to The Star. BALTIMORE, July 4—Time depos- its in 28 regularly reporting member mutual savings banks in Baltimore totaled $338,335,063 at the end of May. This was a lower figure than $338,- but higher than the $326,631,808, at | the end of May a year ago. Reporting member banks showed a decline in time deposits during the past month, but gained during the |last year, while the mutual savings | banks here gained in deposits during | the last month and last year. INCREASE IS EXPECTED IN FREIGHT LOADINGS By the Associated Press. NEW YORK, July 4.—Loadings of revenue freight during last week, to to be in the neighborhood of 605,000 cars. This would compare with 567,- 847 in the preceding week and 645,- 000 in the same week last year. CAPITAL BUSSES ORDERED. NEW YORK, July 4 (#).—American Car & Founcry Motors Co. has re- ceived an order for 30 motor coaches from the Capital Transit Co., Wash- ington, and one for three coaches from the Worcester Street Railway | Co., Worcester, Mass. . WASHER SALES INCREASE. | CHICAGO, July 4 (#).—Household } washer sales from January 1 to May 31 totaled 601,959, an increase of 10,943 over the first five months of 1934, J. R. Bohnen, secretary of the | American Washing Machine Manu- facturers’ Association, reported. PLANT TO BE DISMANTLED. NEW YORK, July 4 (#).—Reports were heard in the financial district that Carnegie Steel Co., subsidiary of U. S. Steel, will soon ask bids on dis- mantling its New Castle, Pa. steel works, Program Announced. BADEN, Md, July 4 (Special).—A dinner at 5 o'clock followed by bingo and a play make up the program for the annual Fourth of July celebration under auspices of and for the benefit of St. Paul's Church. VACATION RATES by MAIL Postage Paid Payable in Advance Maryland and Virginia Evening & Sunday Evening Sunday One Month, 85¢ 50 40c One Week. 25c 18¢ 10¢ Other States and Canada &'5undsy Eventns Sundsy OneMonth. $1.00 73 50e One Week, 30c 25e 1B Paul will be properly organized and | 1934 AT BALTIMORE | banks and aggregate deposits in 11 | 825410 reported at the end of April, | be announced tomorrow, are expected | BANKS HAIL PLANS TOLIFTU. S. BAN Financiers Believe Re-entry Into Underwriting May Spur “New Money.” BY FRANK MacMILLEN, Associated Press Pinancial Writer. NEW YORK, July 4—A vigorous injection of “new money” into the arteries of industry may be the event- ual result if Congress authorizes the re-entry of commercial banks into se- curity underwriting, many Wall Street banking authorities believe. ‘Banking officials generally are main- taining anonymity in their comments, while the banking bill is before Con- gress, but privately a number of them have not hesitated to hail the pro- posed change in regard to security underwriting as a forward step in the funds. the country isn't big enough to swing a real recovery when it gets under way,” said one banking expert. Favor Limitations. “By permitting commercial banks to participate in financing activity in- | vestment bankers can turn to equity financing, and such financing should form the backbone of any sound re- covery in the capital markets.” This observer and a number of | othery in the financial communny support the proposed limitations placed by the Senate Banking Com- mittee version of the new bill on the kind, amount and diversification of deposit bank underwriting. They feel that such banks should properly be limited to the underwriting of bonds, their flotations to customers or cor- respondent banks, but only to dis- tributors or through a recognized ex- change. The restrictions provided by the new bill are recognized in most bank- ing quarters as a wholesome attempt to eliminate pas: abuses which in many cases existed in commercial banks’ distribution of securities dur- Depositors Protected. The limitation of underwriting risks to prescribed proportions of the in- dividual institution’s capital and sur- 'pluz. one expert noted, appeared to him to place the hazard where it be- | |longed, on the stockholder, and to | protect the depositor. A further source of safety was seen |in tbe provision of the bill which | subjected deposit bank underwriting | to rules and regulations prescribed by the controller of the currency. In generally well informed banking quar- ters this was believed to assure that banks would not be permitted to un- derwrite bonds of a character which | they could not now properly buy in | the open market as an investment. Crude Oil Output In May Averages Above April Mark By the Associated Press Crude oil production in May was reported by the Bureau of Mines at 82,454,000 barrels, a daily average of 2,659,000. This was an increase of | and a gain of 84,000 over a year ago. | The bureau attributed the increase tion rising almost to 500000 barrels. 000 barrels to 1,067.200, all the gain fields. Crude runs to stills averaged 2,- 594,000 barrels daily, and stocks of | crude declined to 338.559,000 barrels. | Demand for motor fuel totaled 39.- a daily average of 1089,000 barrels, 11,261,000 and a 3 per cent increase over a year ago. Exports rose from | 1,467,000 barrels in April to 2,141,000. 114,000. Refineries reporting operated at 70 per cent of capacity compared with 68 per cent in April. MORTGAG INVEST JULY beneficial unblocking of investment | “The investment banking capital of | ing the latter part of the boom years. | 45,600 barrels over the April average ' chiefly to a higher quota and to sea- | sonal factors, with California produc- | The Texas daily average increased 11.- | being registered in the East Texas | Fuel oil demand was reported to! have declined. demand for kerosene | decreasing from 125,000 in April to | * A9 TALMADGE AGAIN RAPS ROOSEVELT Georgia Governor Raises State’s Rights Issue at Bridge Dedication. By the Associated Press. CANTON, Ga., July 4—Gov. Eugene Talmadge raised the issue of State's rights today in a bitter speech against the Roosevelt administration. Here for an Independence day dedi- | cation of a new highway bridge, the | Governor made what many observers believe to be a bid for rgia’s vote against Mr. Roosevelt's renomination in 1936. “State’s rights is the bulwark of protection for the people of Georgia,” | he said in a prepared address. “It is also the bulwark of protection for the people in New York, Maine, California, Oregon and all of the other States of the Union. “When the time ever comes for the sovereignties of the several States of this Union to be ignored and forgot- ten, then this Union is ready for dis- solution.” Gov. Talmadge said experimental legislation of President Roosevelt had | been a failure, had retarded progress and called for immediate abandon- ment of the entire program “as the lon!y road to recovery.” JUDGE EASY ON MARINE WHO DIRECTED TRAFFIC Kesterson Sent to Hospital for Treatment of Shoulder After and should not be permitted to sell | Drunkenness Charge. Judge Ralph Given took the personal bond today of Pvt. Samuel Kesterson, 27. United States Marine Corps, ar- rested late yesterday for drunkenness when he became a self-appointed traffic director at Fifteenth street and Constitution avenue on his “first trip ashore” since breaking his shoulder. Following his conviction on the charge, Judge Given arranged for Kesterson to be returned to Naval Hospital, where he had been confined for treatment of the injury. “Yesterday they took the cast off. and its the first time I've been ashore Kesterson told the court. “I just had to celebrate.” Kesterson appeared in court with his arm in a sling. He objected to be- ing bothered while directing the traffiz yesterday, but the objection was speedily overruled by Park Policeman Robert Howell. who arrested him on the drunkenness charge. Motorists de- rived amusement from Kesterson's efforts in directing them. DIRECTORY COMMODITY BROKERS COTTON N _Y Cottor & Oo o o0 GRAIN embers Cmtllc Board o! ‘l'!ldl & Keecd Member Exchange Laiciaw DI 2256 Westheimer & Co o o o 'UBBER—HIDES TALS—SILK Members Commodity hcnuxxvmw | Harri arriman & B 5500 el 8 %o Westheimer & Co. Assets Over One Million Dollars % SAVINGSl BUILDIN ASSOCIATION Beeand Nat'l Bask Bldz. 1331 G St. N Dls. 6270 E LOANS DIVIDENDS IN our FIRST MORTGAGES that offer liberal interest— fixed throughout the term of the loan—and secured by im- proved real estate. May be purchased amounts from $250 up. B. F. SAUL CO. Fiest Mortgage REAL ESTATE Inevstments National 2100 925 15th St. N.W. PROPERTY MANAGEMENT in Forty Years of Experience 1776—1935 We celebrate today the birth of principles laid down 159 years ago. These, with the help of God and the patrio- tic support of the American people, shall never perish. OF THE DISTRICT OF COLUMB Under United States The changes in Government which have taken place since the World War have increased for us the worth of the principles laid down in our mnw Declaration of Southwest Corner Fifteenth and H- Streets Northwest DEPOYTS UP TO $500! N THIS BANK NSURED BY TH E COR ON EDERAL DEPOSIT INSU