The Washington herald., 1914-10-04
BRANCH AT CANAL
FOR COMMERCIAL
Local Bank Is Authorized by
Reserve Board to Establish
Connection at Balboa.
A NEW FINANCIAL FIELD
Special Master Appointed in New
York to Determine Rights of
Gist Blair.
A NEW FINANCIAL FIELD

oA
The Commercial National Bank Of this
city yesterday was given authority by
the Federal Reserve Board to establish
branch bank in the Panama Canal
zone
The Commercial made application some
time ago, but owing to the delay in
starting the new currency system the
Reserve Board did not have the oppor-
tu1ity Of taking the matter up until now.
For some time the Commercial as a
depositary for canal funds. has been in
close connection with canal matters and
its officers realized the Importance of es-
tablishing a branch bank The branch
will handle government funds. foreign
exchange and savings. There are esti-
mated to be about 5000 employees of the
government in the canal zone, whicn
encourages the Commercial officials to
believe that their venture will be a most
profitable one in the matter of savings
alone
The bank will be located at Balboa, on
the Pacific side. where the government's
canal officials have headquarters. The
bank has set aside 800 900 for the con-
duct Of the business of its branch. At
present business in the zone is conducted
by three private banks.
The Commercial has not yet decided
the zone, 1T probably viii be six weeks
before the Fifth District Reserve Bank
is organized and the establishment Of
the Balboa branch may be effected short
ly thereafter.
The order of the Federal Reserve
Board is as follows:
The Commercial National Bank Of
Washington d. c.. having filed an appIi-
cation with this board for the purpose
OF securing authority TO establish a
branch at Balboa. Canal Zone, and hav-
ing furnished evidepee that its directors
have authorized and directed that the
sum Of One Hundred Thousand Dollars,
Gl0o.OO0l he set aside for the conduct
OF the business Of the said branch; and |
the said application having been con-
sidered and it appearing TO the board |
that II IL properly made under the laws |
Of the United States of America and |
should be granted, Now. therefore, i'll
is hereby
Ordered: That the said application be,
and il hereby is. approved and the said /
bank be, and IL hereby is, authorized to /
establish the said branch at Balboa in
the Canal Zone. 4
BY the Federal Reserve Board.
Csigne0 C. S. HAMLN,
- Governor.
BesuBtptIon of Exchanges.
An early reopening Of the Lo-don Stock
Exchange is indicated by the action
taken in. London repostponing the next
general settlement to November IS and
empowering the committee to suspend
the rules relating to defaults. The com
mittee issued instructions to its members
to the action to be taken in case of
defaults, notice of the necessary Hquida-
ton to oe posted in the exchange. Ap-
parently the New York Exchange is
working toward the same end; that is,
the resumption Of business. 1t is not
believed the New York board will re-
sumo until London has opened and a
line can be obtained upon the course of
American securities. II exports continue
favorable, requiring the export of less
gold, liquidation of securities may be
avoided. When that time comes the
opening of the exchange will be avoided.
August earnings reported by railroads
continue to show the rigid economizing
which has been undertaken Economy Is
sometimes a virtue, but in this case it is
dire necessity and not virtuousness that
has forced the railroads into eliminating
the outgo in every possible direction. The
Missouri Pacific showed an increase of
Sis,172 in net, although its gross receipts {
decreased ,Sls056l. This brings its net
increase for two months to Sls4, $751; The
Seaboard Air Line showed decreases in ,
both gross and net. I
The crop movement of course is help {
ing the Western roads in their incomes, | '
but il will not be possible to keep on
moving crops indefinitely. The end Of J
the crop shipping will come soon enough
and the effect Of decreases in CONNER {
cial freight and passenger traffic will be s
felt more keenly. The Union Pacific, for l
instance, shows gains for the first three
weeks of September as -contrasted with
August, due entirely TO the greater ton
mage of crops en- route to market, this
item more than offsetting the drop in
other trafic.
Z. S. Steeps Dividend.
In quarters IN whish there has usually
been good Information regarding United
States Steel affairs, II is intimated that
there is no improbability in the talk of
R reduction Of the dividend on the stock
at the meeting Of directors on October
2, but IT is asserted confidently that
nothing worse than a reduction need be
apprehended. Steel is permanently in the I
dividend class, although the rate may
vary with varying conditions IN the L
business: and as the industry is now
passing through a period OF depression, z
Il is to be expected that, unless a change
FOR the better comes speedily, the stock
holders viii have TO submit to a reduction
Of their dividends
Those who know most about the in
trinsic value OF United States Steel say =
hat even II the dividend were reduced TO 7,
the lowest rate that is now considered &
the stock would be worth some
hing like the prices at present quoted. 2
They say they are not averse to some
iecline in the price OF the stock prior 10 u
he resumption OF business on the stock ~
exchange, and they evidently think that d
he time has come when leading issues
lhould, be allowed sell on a natural. ID
md not merely artificial basis, for ID
yhen the former Is once established, the -!
anger OF heavy flood Of liquidation on "a,
he stock exchange, after business is
Ictively resumed. will have been passed. do
BInir-Pen Case in New York.
Upon application of counsel for Gist Pc
Blair, OF this city. for the restitution of ?.
7,UJO paf value Of hve-year per cent =,
ollateral trust notes Of the Chevy Chase "a
treat Falls Land Corporation, alleged to b
e his property, and now in the hands Of no
theodore H. Price, Arthur r. Marsh and pc
oseph NJ. Hartfield, as receivers for S. y
I. p Bell & Co. Judge Mayer, in the -
,nited States District CourI of New II
'ork, has appointed George w. Morgan ne
s special master 70 rthe purpose OF de-
.rmining the rights Of Mr.. Blair and the ar
rceivers TO title. interest. equities. claims ~ y
& AND Coz MONEY n