New Britain Herald Newspaper, October 21, 1922, Page 13

BABSON PREDICTS ES BRANCH BANKS Wellesley Hills, Mass, Oct, 21, — There has been much discussion re- garding branch banks at the annual convention of the American Bankers' assoclation which was held last week in New York. - Owing the the contro- versy which this discussing has de- veloped, Rpger W. Babson was today interviewed regarding the probable outcome, ‘Ot course the discussion {5 the natural outgrowth of tho establish- ment of the Federal Reserve banks. Before the days of the Federal Re- serve system,” sald Mr. Babson, ‘a bran¢h bank organization practically existed, although it was an uncon- selous and invisible organization. For instance, the small bank in Indiana took orders from {ts correspondent bank in Indianapolis; and the Indian- apolis bank took {ts orders from % still bigger bank in New York. The heads of a few of the New York banks would hold a conférence at the home of the late J. Plerpont Morgan or at the home of Mr. Baker of the First National bank, and decide upon a pol- fey. This policy they would pass along to the large banks of Boston, Chicago, Philadelphia, Indianapolis, 8t. Louis, New Orleans and other large cities. The banks in these large cities would in turn pass the same polity on to the small banks in their districts. There wera no contracts or stock control existing between the banks, but there was an invisible con- trol which, was very powerful. With the organization of the Federal Re- serveé banks, the clearance of checks at par, and the legislation against in- terlocking directorates, this control was given a tremeéndous jolt. No long- er is it much of an object for a coun- 1iry bank to keep a deposit with the large city bank. Thus there has been a gradual drifting away on the part ©f the country banks from the city banks. The large cities have become more independent of New York and country banks have become more in- dependent of the large cities. Aslong as the money rates wer2 high, this did net worry the city banks, but dur- ing the past year, when money rates have been declining, the large city banks have distinctly felt the loss of their former power. Hence, they are looking around for some plan to get their country following back again. “There i8 no hope of breaking up the Federal Reserve system which is functioning very satisfactorily. The men connected with the Federal Re- serve banks are active and ambitious. They are building permanent and sub- stantial banking houses, and are ac- cumulating great resource: They are issuing reports and other publications ‘which appeal greatly to the country banks. The larger city banks are dis- tinetly worried about this and are looking for some other means for re- couping their prestige. They first turned their attention to foreign trade organizations. ‘Foreign trade' was the key note at the American Bankers' convention two years ago. The foreign trade business, however, has not panned out as well as the banks had hoped it would, and our recent tariff has given almost a death blow to what little new foreign trade we bad, Thus, the banks, hopes in this regard are not very sanguine at the moment. Another attempt has shown itseif in the organization of separate ‘investment’ companies and separate ‘acceptance’ companies. These have been organized by many of the larger banks and most of them are operating successfully. Banks are finding these {nvestment companies more profitable at the moment than their foreign trade adventure. “The banks are gradually coming to the opinion, however, that they can recover their influence with the éoun- try districts only with orghnization of branch banks. Hence, there is a drive at present to have the national bank laws amended g0 that a,city bank can own a system of branch banks in the surrounding cities and towns. Wheth- er or not this is in line with demo- cracy, is a very debatable question; but the drive is on and my guess ig that such branch banks are as inevit. able as the chain store. “Al| the banking systems of Europe are developed on the ‘branch bank’ {dea. The big banks of England, France and Germany have their branches in hundreds of cities and towns. One of the finest branch sys.’ tems in the world gxists in Canada, just over the United States line. In/ Montreal therc are several hig banks, | and each of these have from one hun- dred to three huhdred branches in different Canadian cities and towns. As already stated, T doubt seriously whether the branch bank system is as good for the country as the present e Savings Bank of New Britain Organized 1862 RESOURCES OVER $13,000,000 % 178 Main Street Deposits in this bank are receiving 41/2% Interest. Interest begins the first of each month. Open 9 a. m. to 4 p. m. Saturdays 9a . m tol2m, Monday Evenings 7:30 to 9 5 ’ - NEW BRITAIN DAILY HERALD, SATURDAY, OCTOB'ERIZI, 1922, TABLISHMENT OF THROUGHOUT U. §. system, On the other hl'd. we know that the present tendency of eliminat- Ing the small farmer and substituting | the renter in place of the owner is not for the good of the country, The development of chain store systems which are slowly crowding out the in- dividual retaller {8 not good for the countty. # “One Christmas Mr, Henry Ifora sent me an autographed photograph on which he wrote these words; ‘Elim- inate absentee ownership and indus. trial problems will solve themselves.' He is correct in that absentee owner- whip 18 a present difficulty with our Industrial organizations. As the chain atore grows, a similar difficulty will develop which we do not now have with our Individual retail system ana us a system of branch banks grows, there will be that same diffichity with our banking system, Yet I believe these changes are inevitable. Branch banks will be established throughout the country, and congress will enact such legislation as i3 needed to make this possible,” Mr. Babson was then asked what the effect of this would be on bank stocks and he replied that it should be a benefit to bank stocks. There are enough banks in the country districts at the present time. Hence, the city banks will be wise enough not to start new ones “to serve as their branches. Instead the city banks will buy control of the better country banks. This will develop a new and active market for country bank stocks. 8mall banks in growing communities will be in speclal demand. Their stocks will surely sell higher. At the present time most bank stocks sell on ‘hook value’ without any considera- tion of the value of ‘good will.’ As soon as city banks bid against one anotheér for the country banks, the ‘good will’ feature will at once be of value. With banks of small capital stock, this will at once become a val- uable asf®. Banks which have a small capital stock and banks which have a virtual monopoly of the banking in- terests in a community, will be in spe- cial demand. A community which hfs four banks will have tifese four banks purchased by four big city banks so that each of the four big city banks will have a branch in the smaller city. When, however, there is only one bank in the community the four big city banks will compete and bid against one another for'the stock of this one bank. The stock of many of these small banks, which today can be bought around par, may later be purchased by some city bank at $200 to $250 a share. All the country banks need to do to bring about these con- ditions is to buy good securities, avoid risks, and to keep themselves in a strong position. The city banks will be’” willilng to pay a good price for good will and will not especially care about Immediate earning capaeity; but they will want to be sure that the as- sets are sound and that the bank has not many lame ducks.” General business as reflected in the Babsonchart continues to improve Its present position-—but 3 ger cent kelow normal. The highest point in two years. BOLLES S AGAIH LEGION ADJBTANT American Veterans Also Vote to Mest at "Frisco in '28 New Orleans, Oct. 21.—Trains de- partipg today were loaded with home- going delegates and visitors to the| fourth annual®convention of the Am-| erican pegion which closed its five day convention here yesterday with the election of Alvin .M. Owsley of Texas as commander in chief tq suc- ceed Hanford MacNider, and other ‘officers. Gen. John J. Pershing departed yesterday for San gntonio, Texas. Upon the recommendation of Com- mander Owsley the national legislative LEMUEL BOLLE committee reappointed Lemuel Bolles as ‘national adjutant. Mr. Bolles an- nounced that he had retained Russell G. Creviston of Marion, Ind, as his | assistant. Five Vice-Commandgprs Five national vice-commanders were elected, as follov Edward J. Isarrett, Sheboygan, W Robert S Blood, Concord, N. H Chiles P, Plumer, Casper, Wyo.; Earl Cooke, Macon, Ga.; Watson B. Miller, Wash- ington, D. C. Father William R. O'Connor of Ohio was elected national chaplain by a vote of 714 to 374 over the Rev. Ezra Clemmons, of Minnesota, who at once moved that the vote be made unanimous. Chose San Francisco In stormy sions the Legion re- affirmed its position on the so-called soldiers bonus -— adjusted compensa- tion, the term Legionnaires prefer— criticized Brig. Gen. Sawyer, personal physician to the presldent, and coor- dipator of the federal hospitalization board, and tabled resolutions dealing with the Volstead act, the Ku Klux Klan and various minor issues, It was averred in that its first intent | was proper care for the disabled "'1 “Twins” Were Do Hammond, Ind, Oct. 21.—Mrs. McNally, accused by her husband of murdering twin*babies he says were born to her last December, was d s- | charged at the close of a preliminary hearing late yesterday. She contended that the babies were | not born, but that she paraded dolls| before the neighbors to satisfy her | husband’s ambition to be known as a | father. The above pictures show Mrs, Mc- Nally and her husband and the small fnset 1s that of Mrs. Mary Griffith, neighbor and practical nurse, who testified that she attended Mrs. Me- | Nally at the “birth” of the “twins.” | The court however, placed but little | credence on her testimony. Tt was the belief that the husband was| actuated, in his charge, by a feeling | of revenge against his young wife, who had left him. | McNally and his young wife were | married in April, 1921, through an| advertisement. “He wanted children,” says thej wife. I told him it was impossible | for me to have children. The doll | scheme was then adopted.” I lls, Court Decides ° |« ( |1 1 E 10 the war.’ Next year's convention will he held in 8an Francisco. Auxiliary Election Election of national officers and epeeches by Gen. Pershing and Kene- saw M. Landis featured the closing session of the American Legion auxil- fary convention. Dr. Kate Waller Barrett of Alex- andria, Va., was elected national president on the first ballot, with 239 of the possible 450 votes. Dr. Barrett, who is 69 years old, s a national figure in woman activities. | 8he had four sons and three grand- sons in military service and was ac- tive in war camp work during the war. She has been abroad 22 times as representatives of various women's organizations and government com- mittees. She was sent to Europe in 1903 by President'heodore Roosevelt as a member of the immigration com- mission. She was sent again to Eur- ope and the Near East to make a sur- vey of conditions«of alien women in the war stricken areas. In 1019 she was sent abroad by the iar depart- ment to invegtigate hospital conditions for wounded soldiers. She was a dele- gation to the national peace confer. ence in Zurich in 1919, TRIAL DATES ASSIGNED. Short Calendar Session Cleans Waiting List. Dateg for trials were assigned at the short calendar session of the city court yesterday afternoon, as follows: | Monday, Oct. 23, at 2 p. m., Mike Christ, et al.,, by ¥. B. Hungerford, vs. James Paretta, by I. I. Rachlin; Wed- \nesday, Oct. 28, at 10 a. m., [red C. |Ensworth, by Henry Nowicki, v |Cowles Electrical Co., by Stanley Traceski; Wednesday, Oct. 28, at 2 p. | m., Bdward Lipski, by J. G. Woods, | vs. Joseph Kalatka, by M. A. Sexton.; K. Leonard Johnson, by Kirkham, | Cooper, Hungerford & Camp, vs. Louis Edelson, by Alfred LeWitt; | Thursday, Oct. 26, at 10 a. m, Civic Improvement, G. Woods, vs. G. | | Palmieri, et al,, D. 1. Nair for Carub- | ba, and M. A. Sexton for Budde; A. W. Smith Shoe, hy H. P. Roche, vs.| | Prospero Franklin, et al, by W. F.| Mangan and M. 1. Saxe, 2 p. m.; \; G. Waiton Shoe, by H. P. Roche, vs. Prospero Franklin, by W. F. Man- gan. Up | Jo ) 2 CITY Decisions Are. Handed Down By | Judges in Several Litigations. The presiding judges in court have handed down a number | of decisions as follows: Judgment for | the plaintiff to recover damages - of $191.63 and costs of $35.03 in the case of John Mieczkowski against Adam Dastych, Lawyen Henry Nowicki, rep- resenting the plaintiff; for the plain- tiff to recover damages of $153.21 and costs of $48.76, in the sult of the La alle Extension university of Chicago, against Harold Kenney, Lawyer A. W. Upson, counsel for the plaintiff. In the suit of Rozalia Lemauska against Joseph Zemajduk, judgment was for the plaintiff to recover damages of $2,202.60 and costs of $65.27, Lawyer | Henry Nowicki comnsel for the plain- | tiff. | The time for redemption was set| for the second Monday of November. Judgment for the plaintiff was award- | ed in the sult of the New Britain Lumber company against Teofil Woj- | dyl for $451.85 In damages and costs | of $28.04. fawyer I. I. Rachliy rep- the city MANY NATIVES ARE | America and | whom 966 LEAVING-GERMANY | Germans Depart From Fatherland in Increasing Numbers During First Half of This Year. Hamburg, Oct. 21.—"Wanderlust"” is again stirring noticeably in the German breast. During the first half of 1922 there was an increase of 48 per cent over the same year in the number of nationals set. ting out for new residences in foreign lands. But where they have gone the | records disclose in part only. Germans to the number of 11,287 safled from German and Dutch ports| than first or kecond class. The out- ward trek in the first semester of 1021 {otalled 7,592, During the sec- ond half of last year there was an ex- | odus of 15,662, Of this year's emi-| grants nearly 5,000 were women. Hamburg continues the most favor- ed point of exit, with Bremen second Of 140 who salled from Amsterdam up to July, 93 were bound for South 47 for New Orleans, Last year the first | six monthssaw 2,785 bid the conti-| nent good-bye from this port, thej| unusual decrease being regarded as| i..ndicative of the lessening need for| using Dutch harbors following the growing revival of German shipping. Most of the emigrants chose April, May and June to start on their trav- els. Prussia led the individual contrib- uting sources with a total of 5,666, of from Hanover, 913 from the Rhineland, U'pper Silesia. The | loser amonf the states | Bavaria, whence Mexico and Cuba. were from Berlin, & and 112 from next heaviest and provinces was 1,625 went ahroad FILMING SAHARA DANGEROUS STUNT | | | Nine White Men Have Already Lost Their Lives in Trying to Make Pictures of Great Value. Londonr, Oct. 21.-—Within the next few weeks an Englishman, N. A. Gre- ville, will make his fourth attempt to | complete a film of the Sahara desert. | Nine white men already have lost their lives in previous attempts to reach Lagos, DBritish. West Africa, from Algiers. | Greville and his brother are famous| | for thetr film explorations, and they {have already taken many Afrocan | travel pictures. More than two years | ago the brothers begAn a compre-| | hensive film of the Sahara They have already spent about $60,000, and have taken about 30,000 feet of film, but they still have 400 miles of the desert to cover Tt planned this time to start from Lagos and mane for Zinder, 600 miles away. After they have left Zinder they will be entirely cut off from civilization, and it is then that the work of filming wlll be started. is MELONS ARE EXPENSIVE, Pawloggrad, Oct. ~This south- ern Russial city grow large quanti- ties of watermelons and cantaloupe. Locally they cost 100,000 to 200,000 paper rubles cach. In Moscow, 325 miles away, they sell for about 60 rescuted the plaintiff, What was probably the first pub- | lMe library in the United States wes ' started iu 1749 in Charlestop, S times as much, bringing from 5,000, 000 to 8,000,000 rubles, equal to from $1.25 to $2.00 each. ‘The reason for this heavy increase is lack of proper ¥ )asportation. WALL STREET STOCK & A | Am Am Anaconda Cop Baldwin Loco Balti & Ohlo Beth Steel Can Pacific Cen Leather [§ Chl Mil-& 8 P, 32% Consol Gas Corn Prod Ref 1348 Crucible Steel Cuba Cane | Endicott-John Erle | Gen Godrick BF Gt North pfd Inspir Cepper | Inter Con ..., Inter Con pfd .. { Int Mer Marine. Int Mer Mar pd | Allis-Chal | Pacific Oil Yy Spg Tire . Ken Copepr . Lack Steel f Lehigh Valley .. Mex Pet . Midvale tSeel Missourt Pac NYCen.... NYNH&H ., Norfolk & West 1227% North Pacific Pure Oil o Pan Am P & T . |Penn R R ., |Plerce Arrow Ray Con Cop |Royal D, N Y Sinclair Oil Ref . South Pacific South Rail . Studebaker Co Texas Co Tob Products Trans Oil Union Pacific United Re 8t . U 8 Indus Alco . U v t | Willys Overland. Mid Westinghouse | National Lead a‘lnlngs & Spencer pfd .' Conn Lt & Pow pfd .. Eagle Lock i Fafnir Bearing Co .. Hart & Cooley Hfd Elec L i period last |y o ient v N B Gas N B Machine N B. Machine pfd Niles-Be- during this period on bookings other | yoteie ;’l‘,’;‘: QoM. | Peck Stow & Wil . Scovill'Mfg Co . Southern N E Tel Standard Screw . | Stanley Works .. | Btanjey Works pfd . Torirngton Co com .. Traut & Hine Travelers Ins Co | Union Mtg Co .. |hydro-electric enterprises. EXCHANGE REPORTS Quotations furnished bv Putnam Company. m Can Cotton O1l, Loco . Bmit & Rf Bumatra Th Tel & Tel. Toh Wool 76 26% 183 614 Ig% 183 % 1001 51% 141 i 75 148 401 7614 T4 26 132 8114 87% 12314 1623 1001 51 130% 5414 T4y 1471 4014 758 321 4“1y 26 % 2814 144 1308 85 18 6% | 38 | 132% 611 371% 123 % 188 % 1004 51% 140 % B ‘hes & Ohlo *hi Rek Is & P, 45% “hile Copper .. 25% Chino Coppar .. 281 L1483 85% 1814 R84 16 1% RETEA . 95 .38y R 1 141 581y 491 51 Sug Motors nt Nickel ..., nt Paper 32 80y .30y 94 . 487 .18 148 . 843 . 873 34 95 26% 3% 502 8614 . 14 128 14% 32 % 383 957 261 1207% 49% 85% 13% L1407 149% 85 84 67% * 65 J 8 Rub Co ... 56% 56 56 B Bteel ......100% 1083 10814 T S Steel ptd L1223 = — ‘tah Copper AT 6% 18y . 83% L 118% Reading o | 634 12% 63y 110% 614 12% 634 1133 States Of1 (Putnam & Co.) Big . 643 200 118 23 25 -17 25 133 67 55 1 170 59 93 105 33 34 38 L1} 54 32 85 365 127% 288 58 28 44 17 . 680 46 Asked Aetna Life Ins. Co. . 660 Am Hardware . Am Hoslery .. 2 Bige-Hfd Cpt. Co com liings & Spencer Com Bristol Brass . Colt's Arms Landers F J. R. Montgomery com .., R. Montgomery pfd Russell Mfg Co . U. 8. Treasury—~Balance, $354,986,511. GROWTH IN POWER Hydro-Electric Plants In Japan Show Steady Improvement Over Pre. ceding Year Tokio, Oct. 21.-~Power produced by hydro-electric plant in Japan con- | tinues to show steady growth. The generating power recorded an in- crease of 40,000 kilowatts during the first half of last year over the cor- responding period of the preceding vear, and an increase of 81,000 Kkilo- watts during the first half of the cur- rent year over the corresponding per- | iod of the preceding year. This growth of generating power is chiefty due to the development of The offic- cial returns recently published put the increase of the capital last year at 94,000,000 yen and this year at 144,- 000,000 yen. The number of c¢om- panies, however, records quite a limited growth. This fact is due to the amalgamation of minor concerns. The Tokio Electric * Light company has reglstered an increase of its capi- tal in consequence of amalgamation by something like 54,000,000 yen dur- the first half of the current year. Boardman Takes Position With L.F. & C. Co. | Ronald P. Boardman, of 19 Murray street, who has been doing the ad- vertising for The Hart & @ooley Co., has recently accepted the position of advertising manager of Landers, | ¥rary and Clark. Mr. Boardman came to New Britain early in the year direct from Dayton, Wyoming, | where he spent the winter working| on a cattle ranch as a cow-hand. He has spent over two years on so\llh‘rni Montana and northern Wyoming cat- tle ranches. Mr. Boardman schooled at Phillips Exeter Academy, Union]| college, and is a graduate of Yale university. He is the son of Henry Bradford Boardman, president of THe Bchenectady Trust company, Schenec- tady, N. ¥., and formerly of New Brit-| ain, \\heq Ronald Boardman " was | Ros _ PUTNAM & CO. Members New York Stock Exchange Members Hartford Stock Exchange (Successors to Richter & Co.) Stanley I. Fddy, Manager §1 West Matn St., Tel, 2040 40 Shares S. N. E. Telephone to Yield 6 1-4 9, UDD & CO.| e Members New York Stock Exchange MEMBERS HARTFORD STOCK EXCHANGE HARTFORD: Hartford-Conn. Trust Blig., Tel. 3-6329 NEW BRITAIN: 23 West Main St.. Telephone 1818. We Offer: Sinclair Consolidated Oil Corp. 8% Preferr ed Stock to Net 8% Earning Five Times t he Preferred Dividend Thomson, e & Co. NEW BRITAIN New Britain Natioial Bank Bldg. 10 Central Row Telephone 2580 Telephone 2-4141 Members Members Hartford Stock Exchange New York BStock Exzchange Donald R. Hart, Mgr. e S——— 4 L We Offer— 25 Shares BRISTOL & PLAINVILLE ELECTRIC CO. To Yield About 7% JOHN P. KEQGH Member Consolidated stock Exchange of New York Waterbury STOCKS Danb Middletywn BONDS Springteld’ Direct Private Wire to New York and Boston G. F. GROFF, Mgr.—Room 509, N. B. Nagd Bank Bldg.—Tel. 1013 The Hartford-Connecticut Trust Company Corner Main and Pearl Streets, Hartford, Conn. Capital $2,000,000.00. Surplus Funds'$2,000,000.00 Safe Deposit Boxes, $5.00 and upwards. Settlement of Estates. Foreign Exchange to all parts of the world. LETTERS OF CREDIT — GENERAL BANKING Bank by mail. It is safe and saves time. A Trust Company, where you will have every confidence in the advice and in the counsel, which will be given to your family. We believe that this in- stitution, through its familiarity with matters of finance and in- heritance, is able to act as your executor with great economy, and with greater safety. Make Us Your Executor.