Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-10
FINANCIAL-LOCAL AND OTHERWISE.
BY I. A. FLEMING.

While it is a year before the Clayton
act. passed october Is. 1914. will be-
come effective, the elections Of all ma
tional banks and many state banks
and trust companies are but three
months Off
One Of the chief provisions Of this
act designed to stop interlocking d.
rectories in financial institutions, pro-
vides that on and after October To-
1916, no official or ernploye connected
with a banking institution. national or
trust company, organized under the
laws of the United States, having CAPT.
tai, surplus. undivided profits and de-
posits to the aggregate or $5,ooo'ooo
or more, shall be connected ofhcfally
or as an employee with any other bank.
Irrespective of its size and Importance.
1t is further provided that nj deter
| mining the total resources of a bank
the statement of condition previous to
election of officers shall be considered,
and then follows this paragraph:
when a director has been elected in
accordance with the provisions OF this
act it shall be lawful for him to con-
tinue for one year thereafter under
such election or employment"
Many bank directors have considered
that this paragraph gives sanction Tor
the reelection of full boards at the
coming annual elections. regardless OF
connections with other banks.
1t is a matter of directors rather
than officers, although there are num-
Der of banks where non-active vice
presidents holding the same honorary
position on other boards are chosen
each recurring year. very rev en-
ployes hold dual positions.
Very many boards Of directors are
largely interlocking, national banks
and affiliating trust companies showing
the largest number of dual directors.
Bankers have, as stated before, De.
the annual election would permit OF
their serving out their term. one year.
1t seems. however, that this Is not
the case and that the general eltmina-
ton OF dual ONCE holdings s VIII nave
to start with the next election
Counsel for the federal reserve board
holds that the paragraph relating to
officials serving out their term has TO
do with banks and other fiscal instl,
buttons that have not the required
SIS, O0O, 900 resources to call for en-
forcement of the law at the annual
election, but which, during the interim
between election time and October 10,
may pass into the observation-disclosures
In such an event the officers and d.
rectors may serve out their term OF
ONCE.
In the original draft: Of the act Rep
limit at s25Oo,000 for total resources
and provided that no omcer OF q bank
with such resources could be an OF
fcer of another bank.
State banks joining the federal re-
serve system must fall in line with the
edjct
In Washington the changes at the
next annual election will be decidedly
numerous. All of the trust companies
but one come under the provisions OF
the act and several Of the national
banks are also affected One savings
bank also has the required resources.
Most of the changes VIII be IN the
trust companies and two national bank
directorates It will be decidedly in
teresting to see the choice some very
prominent directors will make when
the choice must be made.
Local Stocks and Bonds.
While there have been signs of bet
ter times in the local security market.
the Indications do not point to any
thing like real activity until the utili-
ties board completes its work OF
varuing the various corporations under
its charge.
Lower prices have been reached on
Washington Railway and Electric
though for the present "a seems to be
about the bottom for the. common.
while the preferred finds buyers at
soy Capital Traction responded as
good as could have been expected to
President Hamilton's statement that
the dividend had been earned for the
third quarter of the year.
Washington. along with other in
vestment centers. has suffered through
the wonderful era Of speculation on
Wall street.
Scores of Westinghouse crowd the
brokers' offices every day and many
have made good money off their opera
tions.
Investors usually. and conservatives
at that, they cannot refrain from TAX
ing flyers these days, and whether
they trade or not their attention is d.
yerted from the excellent investment
opportunities offered by the Washing
tor market.
The activity in New York stocks is
slowing down the trade in bonds for
the same reason, and bond houses are