Evening star., 1915-04-04


securities III the corporation. generally
by officers and favored insiders. aGtlhs
on their intimate knowledge OF conditions
In the RI Irrad word his unSaNory con-
dition has been made pract cally m
possihic hy the Voluntary weekly reports
now being submitted ~ the pubic ana
by the monthly reports demanded ny the
Interstate commerce commission, Ea'H
lays business OF traction company IS
Gndwn hy noon he next day. weekly re-
ports are prepared and monthly state
luents for officials and directors.
The action of the Capital Traction COM
rtanV n pr0miS M 10 make statements oi
conditions 10 its shareholders from time
y time is q movement IN the rlGht dlEee-
in No definite information was gwen
the preliminary announcement; but the
pledge 10 take its stockholders into ITS
confidence is being generally commended
Interlocking Directories.
The clayton antitrust act was ar
proved october Il, 1914 one of the
most interesting provisions Of the
measure ana one that has greatly in
terested bankers and corporation Of
EcIaIs generally has been the section
teiating to interloclinS directors.
Very many banking companies and
manufacturing corporations have d.
rectors who will be barred from con-
tinuing on their boards by this law
In Washington nearly every bank has
one or more directors who are aISo al
rectors of other institutions. The close
alliance between several groups has
resulted in more or less interchange
of directors
The general impression in financial
circles is that these separations, one
drectorship for each director, so far
as cities of over 100000 population are
concerned. would have to be made al
the next annual elections or banks
that hold their annual elections In the
.irst half of the year, as an election
with the advent of 1916 would carry
u one-year term of office beyond the
two-year limit.
The final paragraph of section of
the Clayton act specifically says:
When any person elected or chosen
AS director officer or selected as am
employe of any bank or other corpora
ton subject to the provision of this
act, is eligible at the time of his cleo
tion or selection. to act in such capac-
ity for any bank or corporation. ms
eligibility to act in such capacity shail
not be affected and he shall not be-
come or be deemed to be amenable to
any other provisions hereof by reason
of any change in the affairs of such
bank or other corporation from what
ever cause whether specifically eX-
cepted by any of the provisions here
nf or not, until the expiration of one
year from the date of his election or
employment.
The attorney for the American Bank
ers' Association holds that this para
graph gives officials and directors the
right TO hold dual offices over October
IA, 1916, to the expiration of their
terms of election.
The act also gives permission to any
bank or trust company owning all the
stock of another bank or trust COM
pany to have mutual directors.
Credit Where Credit Is Due.
The federal reserve act was recently
given credit, not in this column, for
preventing panic. following the
breaking out of war in Europe, about
August 1, 1914. 1t was after the middle
of November-the 10th, to be exact
that the federal reserve banks opened
for business.
Fortunately, the Aldrich-Vreeland
emergency currency law was on the
statutes of the United States when
the emergency developed and S5o0,000,-
900 of currency of various denomina-
tions for the national banks of the
country had been printed and was
stored in vaults, apparently ready for
the instant which came. About S3s5,-
10000 of this emergency currency was
given out for circulation, amply Sc
cured by "other securities" and this
law saved the day and prevented the
resultant panic which might have been
expected but for the s5oo,00o.o0o ready
cash waiting.
The April letter of the National City
Bank of New York says:
When the federal reserve law went
into effect 1t released at one stroke
bank reserves, amounting in the aggre-
gate to five times the greatest net i'm
ports of gold in any one year of our
history"
II released bank reserves by lessen
ing the requirements of reserves to be
carried
Credit for the Aldrich- -vreeland meas
ure, has been generally accorded to the
head of local national bank.
Financial Notes.
Regular dividends were declared on
United States Rubber. y per cent on
common. per cent on preferred and 2
per cent on second preferred all pay
able April 30.
Vague and indefinite reports were IN
circulation on the street yesterday of
$4,000, 900 war contract for the Aneri-
can Locomotive Company.
New Haven Railroad Company reports
net increase in earnings for February
Of $7ss,590. The deficit in operating in
come decreased s71s.355. Atlantic Coast
line for February showed an operating
decrease of s1s7.42o.
England Liquidates Slowly.
Despite the general activity and the
sharp advances that have been noted
On the New York Stock Exchange, the
Liquidation for account of British in
vestors continues to be of the drib-
bling order. Commenting on the mat
-er the monthly letter of the National
ifv Bank of New York has this to
say:
1t would simplify the situation IL
Europe would sell securities just
FAST enough to relieve the situation
ON fortably, and no faster. but they
10 not sell freely. This does not Sig
uify that they prefer our securities TO
their own for yet they have taken
ali the war loans promptly. and AT
surprisingly low rates. How they have
been able 10 do II without selling on a
more liberal scale is not quits clear.
but the fact Is that yet they have
rad no occasion TO borrow In this mar
ket except to enable them to make
purchases and payments here All the
belligerents can borrow more cheaply
AZ home and the chief obstacle TO ne
gotiations for loans here has been
the fact that rates which are neces
sary to make foreign loan go in this
market will look high in comparison
with the rates AZ home
Ear Marking" Gold.
The same authority gives a rather In
.erestfng statement OF the manner in
which the Bank of England is paying
out gold TO creditor nations and at the
same time keeping the yellow metal in
las own vaults. as follows: