Evening Star Newspaper, September 3, 1935, Page 5

BOND ENTERPRISE BLOCKEDBY ... School Teachers’ Savings Held Periled by New $750,00 Proposal. By the Associated Press. Blocking a proposed Nation-wide tssue of bonds by the “National Edu- cators’ Mutual Association of Nash- ville, Tenn.,” the Securities Commis- gion sharply attacked what it called “an enterprise to deal in an irrespon- sible fashion with the small savings of school teachers.” The issue of bonds proposed by the organization would have totaled $750,000. The nature of the case, said a com- mission statement, made it “not only desirable but imperative to file these findings and this opinion.” ‘The commission expressed the hope that “no future prospect will be left unaware of the danger of intrusting the small savings derived from school teaching in the hands of men who upon this record and by their own admissions have demonstrated un- truthfulness and misfeasance in posi- tions of trust and confidence.” Other Case “Less Scandalous.” Lashing cut at the contracts at- tached to “this so-called bond,” the commission said: “The Supreme Court has upheld the action of a State Se- curities Commission in debarring a contract as fraudulent whose terms were less scandalous.” The commission found that, although the bonds, sold for $750 in fine an- nual installments, were supposed to| , be redeemable in 10 years for $1,000, | \a parenthetical statement in “much smaller type” specified payment was | to consist of “$750 cash and $250 | stock.” This stock, described as having a | “stated value of $50 a share,” was | issued to organizers of the association for 10 cents a share, the commission said, adding that the association has | *now stipulated that the stated value | of these shares is 10 cents.” Instead | of getting stock valued at $250, the commission said, the bondholder | would get five shares which cost pro- moters “a mere 50 cents.” Get Use of Big Fund. Examination of the scheme indi- cates, the commission continued, “that Charles G. Pfab and his asso- ciates are to obtain the use of in- | vestors’ money for 10 years, at the end of which time they agree to repay the principal.” But the commission concluded that | profits, if any, would go to promoters and advisers “in the ratio of approxi~ mately 60 per cent and to the in- . Vesting ‘bondholders’ in the ratio of approximately 40 per cent.” In addition to listing Tennessee school superintendents as major offi- cers, the prospectus listed 31 “ad- wvisory directors,” most having des- ignations such as “dean, principal | and superintendent.” “Obviously, this array of names was intended to give an air of re- spectability and educational ‘mu- | tuality’ to an enterprise that fortu- | nately * * * sought to register under | the securities act,” commented the commission. REGIONAL POWER ° OFFICES PLANNED New Districts to Be Created to Co-operate With State Util- ity Board. | Funeral Services Tomorrow for | | years. When he retired in July, 1933, By the Associated Press. The Federal Power Commission took its first step yesterday under the new utilities holding company law by pro- | posing to establish five regional dls-" tricts to co-operate with State utility commissions. | Basil Manly, vice chairman, sald that while details concerning the/ regional offices have not been com- | pleted, they are intended to enable| the commission to function with State | + groups “with greater efficiency and| less cause for delay.” 2 | Both Power and Securitles Commis- | Fion members are studying the new Jegislation. Organizational and pro- gram work were under discussion. First court test of the act may come around October 1, when the Securities :ommission seeks the temporary reg- ' tration of holding companies. While this registration will be simple, it will | furnish an opportunity to companies | to refuse to register, in which case | court action will be necessary. | The Securities Commission’s job @eals almost entirely with the finan- | * cial operations and set-up of holding | companies, whereas the Power Com- | mission is charged with overseeing | wholesale rates charged for power in | interstate transmission, the actual | merging of physical properties, and | studies to plan for the future of power | production. | Licensed to Marry. UPPER MARLBORO, Md., Septem- ber 3 (Special).— Marriage licenses | were issued here to Floyd Lankford, jr., B7, of Baltimore, and Corrie Mullikin Clagett, 21, of Mitchelsville; Ben Milton Kreger, 37, and Edna Diamond, 89, both of Portsmouth, Va.; Charles Leo McAlvey, 24, of 2305 Eighteenth street, and Helen Claire Joyce, 24, of 1758 Park road, Washington. For a Thicker, the Year 'Round, Sow Scott’s Weedless Lawn Seed Authorities urge Fall seeding. The U. S. Dept. of Agriculture says: “Re- grettable that home own- ers don’t take much inter- est in starting a lawn in the Fall.” Sow Scott’s seed NOW, for greater drouth resistance, thicker grass, fewer weeds and more uniform gro 1 pound . .. 60c 3 pounds, $1.75 At All Four Stores Gude Bros. Co. Main Store, 1212 F St. NW. Phone NAt, 4276 Still Missing GEOLOGIST DISAPPEARED YESTERDAY. JOSEPH W. ADY, JR,, Colorado geologist, who disappear- ed from his Colorado Springs, Colo.,, home after talking to his wife through the closed door of his bed room. —Copyright, A. P. Wirephoto. J. HARRY JONES DIES; RETIRED U. S. EMPLOYE | Former Assistant Division Chief in Weather Bureau. J. Harry Jones, 74, of 1133 Euclid street, died yesterday’at his home. He had been in ill health for 2 years. Funeral services will be held at 1 p.m. tomorrow from the residence. Burial will be in Arlington National Cemetery. Mr. Jones was an employe of the Weather Bureau for more than 40 he was assistant chief of the Instru- ment Division. As a young man he had served for 6 years in the Signal Corps, United States Army. Surviving are his widow, Mrs. Mar- garet Jones; a son, Roland K. Jones: two daughters Mrs. Ethel Anderson and Miss Helen C. Jones, and & step- | daughter, Mrs. Paul G. Russell. Mattresses Remade s3 The Stein Bedding Co. || 1004 Eye St. N.W. ME. 9490 || - ¥ } ’E | APAINTS Figore on riving your_home a first coat of Moorwhite Primer, Then you will get a better job. 922 N. Y. Ave. N.W. _ NA. 8610 WILL YOU LET US EXPLAIN WHY WILLIAMS Are today the lea sales just as th ten and fifteen years ago? Ralph J. Moore Coal Co. PAhonu Potomac 0970 LOG CABIN INN 4 Miles Beyond Silver Spring on Georgia Ave. Extended OPEN AIR BEER GARDEN rainy . . int, rugsed ... oor i e sit and sip in the interior of the Inn. REFINED ATMOSPHERE Dance If You Like > Orchestra M Tuesdays and Minimum Ci Tues., i5¢ S No Cover Charge at Any Time SIXTEEN-DAY VACATION | EXCURSIONS $1 6.%° ROUND-TRIP Sept. 6 & 20 Leave 5.00 p.m. Sept. 7 & 21 Leave 800 am. Return amytime within 16 f§ days. Stopovers permitted. i} Greener Lawn T HE EVENING STAR, WASHINGTON, D. C, TUESDAY, SEPTEMBER 3, 1935 Ly = JULIUS LANSBURGH FURNITURE C0.—909 F ST. N.W. BEDROOM SUITE DAY Help Us Clear the Floors for Painters and Decorators In order to make room for the painters and decorators, we are forced to close out a great number of fine suites. We've slashed prices to effect immedi- ate clearaway. In some cases reductions are as much as one-half. NEO-CLASSIC BEDROOM SUITE IN GENUINE WALNUT OR MAHOGANY VENEERS Here’s your opportunity to buy one of the finest bed room suites in the store at a genuine saving. Neo-Classic design, built of rich genuine walnut or mahogany veneers. Four large, lovely pieces as pictured—consisting of a panel bed, full vanity, dresser and chest of drawers. Note carefully the beautiful hanging mirrors on dresser and l\)‘aniety. Fine cabinet woods, and attractive hardware adds to its eauty. 188 Buy on J. L. Budget Plan—Nothing Added for Credit Burl Walnut Veneer 4-pc. Bedroom Suite The popular Neo-Classic bedroom suite is earefully constructed of burl walnut veneers, nicely finished. Four large pieces, consisting of a panel bed, full vanity, dresser and chest of draw- ers. Dustproof construction and center drawer guides. Beautiful hardware. A rich looking suite that will be a source of pride to the home. Buy on ]. L. Budget Account— Nothing Added for Credit Gold Decorated Karelian Burl Walnut Bedroom Suite This very attractive suite is constructed of the best materials known to the furniture manu- facturers, The dresser is 46 in. wide, 21 in. deep, with hanging mirror 22x30. Other pieces are larger and well proportioned. Includes vanity, chest, full-sized bed and dresser, Open a J. L. Budget Account Nothing Added for Credit 225 119 lius Lansburgh gfurniture (Jo. 909 F St. N.W.