Evening star., 1921-07-18
TEARING HOUSE
ASKS FOR REPORTS
Wants Copy of Last Exami-
nation Return-SettIe a Suit.
Financing Plan.
BY I. A. FLEMING.

BY l. A. FLEMING.
The Washington Clearing House AS
snciation, acting under resolution
rassed last January, Is calling on all
member and associate banks to FUR
ltsh to the committee on bank ex-
aminations, of which Harry w.
HAYNES Is chairman. copy or the
institution, made by the examiner
from the office OF the controller OF
ghe currency.
Most of the larger institutions have
~rade response and many or the saw
'ngS banks as well.
No sentiment received greater ap-
clause at the last convention of the
District Bankers Association than the
suggestion by Examiner Coates OF
cleveland. that the District OF CO.
lumbia should have private bank
examiner.
The action taken by the clearisg
house gives to it's committee the most
recent examination data of each in
stitution. and is practically placing
at it's disposal important informa-
ton by the examiner and gives the
net results of an examination with
out the added cost.
With the pledge of confidence given
by the Clearing House Association
there is no real reason why there
should be any objections to furnish
ing the information desired.
The bylaws of the organization
gives the association the right of a
private examination. but in this in
stance duplicate of the national
bank examiners net results is asked.
Settle n Suit.
II is understood that the Metro
rolitan Trust Company of New York
haS compromised the suit brought in
the interest of the note holders OF
the Washington Utilities Company for
the unpaid balance of the $l.4Sp.0on
defaulted notes. 1t will be recalled
that the collateral back of the notes.
27.5oO shares of Washington Railway
and Electric Company common stock.
was bought in by r. y. Harper rep
resentinS the protective committee.
for $4,000, and the suit was for the
The compromise was effected by the
turning over of $4,000 Washington
and Virginia notes. a matter of quas-
ttonabie value, but in accepting the
notes il was case OF HobSonS
choice for the complainants.
The big block Of common stock in
the Washington Railway and Electric
Company is still held intact by the
noteholders' committee. Some of the
committee express the belief that the
common stock will be very valuable
If the Court of Appeals decides in ia
ror of the Potomac Electric Company
in the matter of the rate per kilowat
Iie S-.'oV.VoU
held in escrow to the company.
This large sum Is earning interest,
being invested in Treasury certiti-
Gates, liberty bonds and certificates
of deposit, and is being added to
daily. A decision should be handed
down soon. with the chances for the
Supreme Court being the final arbiter
in the case.
Suggest Financial Plan.
An alternative to the plan for fund
ing the governments expenditures
on railroad additions and betterment
and advancing the railroads the cash
on account of compensation-$500.
O00.000-by an arrangement with the
War Finance Corporation, has been
suggested to the railway executives
and government officials by New York
1t is proposed that a securities cor
poration be formed for the purpose of
issuing debentures which may be sold.
thus furnishing the cash to settle
with the railroads without an addi-
tional appropriation.
The government. under the proposed
plan. would turn over to the new
corporation the railroad and other
securities now held against advances
to railroads by the Treasury and
would also turn over the funded obli-
cations it Is proposed the railroads
should make over to the government
for the latter's expenditures on addi-
tions and betterments during federal
control
The new corporation would then
Issue its obligations to the government
against this collateral. The govern
ment would then dispose of these
debentures.
Local bankers. commenting on the
proposed plan. declared that federal
financing was the easiest possible
financing; that there was any amount
of money at the command of the gov
eminent and therefore no need for
Financing" of the character indicated.
The plan proposes nothing but gov
ernmeIt sale and the Treasury certifi-
Gates have standard market always
ready waiting the pleasure of the
Secretary of the Treasury.
Local Securities.
On today's session of the local stock
exchange Washington Gas IS were
firm at 61A and Potomac Consolidated
5s steady at IS.
There was nothing doing in the
stock list, prices being entirely NOM
inal and without change in quota
tions.
Six per cent was bid for call money
and Z per cent asked.
Financing Cotton Crop.
Five governors of federal reserve
districts. where banks are accustomed
to aid in cotton financing, have been
notified to appear before the Federal
conference to consider a uniform
policy for making loans in facilitat-
ing the harvesting of the cotton crop
Member banks in the federal reserve
system have received three forms
which they are asked to use exclu-
sively in obtaining credit information
from borrowers in sums Of $4,000 and
over.
The forms are sent to member
banks free of charge.
The forms are rather long and COM
plicated. but the possession of the In
formation, based thereon. could not
hut be valuable to banks credit in