Evening star., 1924-04-29
INVESTMENT BUREAU
PLANS UNDER WAY
Committee of Fifteen, Including
Bankers, Named to Cooperate
In Perfecting System.
FINANCIERs HOLD MEETING
Representative McFadden Explains
His Proposed Banking Law.
BY CHAs. r. SCHAEFFER

announcement was made The
morning Of the appointment Of :,
committee of fifteen bankers and
business men of this city to WORK
with the better business bureau To-
ward the organization of an invest
| hleht department of the bureau Tho
I committee consists of H l. Rust
harry B. Doyle and William E. Shan
non, representing real estate dealers
with Mr.. Rust as chairman of the sub
committee; John L Edwards. Frank
morse and II. D. X. Peachy, invest
ment bankers, with Mr. Edwards as
chairman; Howard Moran, Boyd Tay-
lor and c. H. Pope, representing the
| Irust company committee, with the
| nrst-named chairman; Victor b Dew
! Der, Robert V. Fleming and John J.
Cochran, representing national banks
| with MIR. Deyber as chairman and
Francis G. Addison, jr.; Maurice OF
terback and Theodore Michael, rep
| resenting the savings banks, wiz
! Mr.. Addison chairman.
Duty of Committees.
| These committees have been named
! to familiariZe themselves with the
| manner in which the bureau has been
! operated, and with details of how i
! Will operate under the enlargement
| as planned with the investment de
| over with Howard M Cool. director
| of the bureau, the details of plans
| and determine the amount of money
| required to put the enlarged plan
| into operation.
The subcommittee will meet as a
committee of one and discuss the
plans with a view OF determining
whether or not they will recommend
it to their respective groups. They
also will discuss in general assembly
! the total appropriation required ana
| the proportion that will be contrib
uted by each group.
Proposed Banking Law Topic.
| Representative Louis T. McFaddeu.
| chairman of the House committc"
! on banking and currency, and author
| of the proposed national bank legiS
| lation which bears his name, was the
principal speaker at the annual spring
meeting of the District Bankers As
sociation at the Willard Hotel last
night. Mr.. McFadden declared the
! national banking system is facing
an emergency which affects its very
existence and ultimately the exist
! ence of the federal reserve syS-
| tenn This situation, he said, is due
| to the fact that the national banks,
operating under the law of 1854 with
anne endmentS, lack the necessary char
| ter powers to give the most complete
modern banking service. They are
| dependent solely upon Congress for
these grants of power
! Two kinds of legislation are Ur-
| gently needed at this time, the
speaker averred-one to permit ma
| tional banks effectively to carry on
! the banking business, and the other
| to protect them in so far as Congress
| can do so from the inroads of com
! petition from state member banks OF
| the federal reserve system, which are
! operating under charter powers
granted by the state legislatures.
Object OF Pending Measure.
The pending measure, prepared b.
Mr.. McFadden, is designed to NEE
| this emergency by amending the ma
| portant particulars for the purpose
of meeting the outstanding need OF
the national banks for more modern
charter powers and by putting Ger
tain restraints on branch banking bN
state members in the federal reserve
| system.
Changes Outlined.
The most important changes, as
outlined by Mr. McFadden, follow:
A state bank would be permitted
| to consolidate with a national bank
| under the national charter upon
| practically the same conditions as
national bank consolidating with an
other national institution.
The succession of charter powers Of
national bands would be changed from
ninety-nine years to 1ndetermlnate
/ succession.
National banks would be permitted
| to organize in outlying districts or
| cities having population in excess or
| $4,000. with capital not less than
100000. upon approval by the con-
| troller of the currency.
National banks would be permitted
to pay dividends in stock.
State banks coming into the ma
| tional system could retain only the
| branches which ii has in operation
| within the corporate limits OF the
municipality in which 1t is located.
The restriction of branches to city
National banks would be permitted
to own stock in safe deposit compa-
| MES.
The time limit on real estate secur-
| ity would be extended from one TO
| five years on improved city property.
1t also provides that a national bank
may engage in the business of buying
and selling without recourse bonds,
notes. debentureS, and the like, com
| monty known as investment securi-
| ties.
Mr.. McFadden also promised the
District fraternity that banking
| trict of Columbia and clarifying
| points on which the law is now more
or less vague, would be pushed i'm
| mediately after the summer recess.
Semi-tinal reports incident to the
current years convention were pre-
sented by the various committee
chairmen, and the report of standing
| committees read and adopted.
Harry V. Haynes, president of the
association, presided at the meeting,
which was followed by buffet sup
per-.
Listed on Stock Exchange.
The Washington Stock Exchange
has listed the recent issue of South
ern Building Company $2,100,000 of
l6k per cent sinking fund notes.
which were offered the public a few
tirely sold. The notes are dated
April /. 1924. and mature April I.
1899. Interest is payable semi-an-
nally. with the Guaranty Trust Com
pany of New York as trustees.
An offering of S12000,o0 of Hearst
gage and collateral trust 61h per cent
serial gold bonds at par and interest.
yielding 619 per cent, is being made
locally today.
Electric Company's Output.
Preliminary figures of the North
American Company and subsidiaries
for the twelve months ended March
2,21S,191,136 K. w. H, being an in
crease of 21.SS per cent over the pre-
ceding year. On March 81, 1924. cleo
trio customers numbered 609,040,
which was an increase of 116.161, or
1886 per cent during the year.
During the past year over $60,000.00o
has been added to property and plant
accounts of North American subsidi-
aries About half of this expenditure
was in adding to the facilities of COM