Evening star., 1925-11-24
.ELECT|NG OFFICIAL
MAY Be DEFERRED
w. R. & E. Chairman Will
Probably Be Named at
Annual Meeting.
BY CHAS. =. SHAEFFER.

BY CHAS. +. SHAEFFER.
There is no indication on the loCa.
financial horizon that new Chairman
Of the board Of the Washington Raj
way & Electric Co. will be named 20
succeed the late Milton l.. Allies ~
the regular meeting of the director
of the carrier tomorrow. Rather, Il
is felt by those interested that III"
matter will be deferred until the An
nual meeting early in January.
1t is within the prerogatiYe OF an.
director TO insist that a new chairman
be named at any time, which would
culminate in such action being taken,
but, 50 far as is known, no steps
along this line are under consideration
until the annual meeting.
The identity of the new chairman.
when named, is a favorite topic for
speculation. If he be considered from
the standpoint of volume of stock rep
resented il could be none other than
Eugene l.. Thompson, an able execu-
tive and one thoroughly conversant
with every phase Of local street trans
portation facilities and who has the
vast North American co. holdings at
heart. But, on the other hand, if the
~
policy of obscuring itself in the back
ground, then the election might faii
on the capable shoulders OF one Of the
oldest members of the board-a man,
for instance, like Charles j. Bell OF the
American Security & Trust Co.
Certain it is, though, that an able
man will be selected, particularly II
any Of the present board be chosen
and it is not within the realm Of rea-
- 10 n ont =Tf "a
this efficient group.
Institute Does Well.
The local chapter, American Instl-
tute of Banking, gained conslderaoLe
financial aid at a theater party given
under the auspices of the chapter last
night. While final figures are not
available at this time, so splendld was
the response that a good balance was
reported on the right side OF the
ledger, according to +. Jesse Chaney'
president of the BODY.
The party, a replica of previous al
fairs, witnessed the years largest
turnout of the financial fraternity.
Trading Oh Local Board.
Today's local market witnessed .
slump to 1905 in Mergenthaler ana
continued weakness in Capital Trac-
ton and Railway preferred. Inc
typesetter opened at ls0 on an odd
lot sale, recovering fractionally on
subsequent sale. Traction was rela-
tivelv active at 1929, and Railway
preferred, selling eXdividend, brought
9O3s on sales OF 20 shares.
Riggs National Bank held the com
manding level of 414, and Merchants
Transfer and Storage brought 156 on
sale of 20 shares. Real Estate
Title Insurance sold at IT'S. Potomac
Electric Power preferred was un-
changed at lO4.
McFadden Bill Comment.
The McFadden bill-backed by the
Federal Reserve Board and the comp
troller of the currenCy-amending the
national bank and Federal Reserve
acts almost got through the last ses-
sion of Congress. 1t was said then
by its supporters that 1925 was the
fatal moment, and that if action was
not taken in that year, the Fedora!
Reserve System was doomed to fan
prey to the growing power of the
State banks which are the parents OF
branch banking. However, ii is ad-
mitted, says the Magazine of Wall
Street, that even 1926 will not be TOO
late. And so there will be porten-
I So
issues represented by the bill.
Contrary to the public impression,
the McFadden bill is not pro-branch
banking bill, and is, as a matter OF
fact. an anti-blanch banking bill. Its
general purpose is to strengthen the
Federal reserve system by barrlcad-
ing the national banks against the
steady advance of the State banks
and trust companies, an advance that
| forebodeS the elimination OF national
banks Curbing branch banking Is
only one of a number of ways In
which the McFadden bill seeks to
guard and foster the national banks
and save them from their natural
enemies. 1t proposes to fight fire
with fire in this regard; to permit ma
tional banks to use one OF the most
effective devices of the enemy in fight
| ing back, that is the establishment OF
branches themselves wherever nee
essary as a defensive measure. And
| that is how it has come to be handl-
| capped by the appellation of branch
| banking bill.
Federal Reserve Policy.
1t is the policy of the Federal
! Reserve Board and the controller OF
| the currency to discourage branch
! banking. 1t is considered un-AmerI-
! can, opposed to the indtvfduallsuC
| genius of the American people, crea-
| tive of the obnoxious banking monop-
| DIV and now imperiling the Federal
| reserve system. Largely through
| the lure of branch banking national
! banks are increasingly taking out
! State charters and giving up their
| national charters. Within six years
almost 200 national banks have be
/ come State banks. At this rate 1t Is
easy to calculate how long 1t will be
before there will be no national banks.
! Now these banks are the foundation
of the Federal reserve system, be
| cause they are compelled TO be mem
bers of it. There are only 1900 out
| of 10000 State banking institutions
that have voluntarily joined the sys-
| TEN. They may withdraw at any
| time If the national banks continue
! TO disappear there will come a time
when the only members of the reserve
! will be banks that may withdraw
from 1t of their own motion.
| OF all the factors that tend to make
! national banks become State banks,
! the branch bank opportunity afforded
/ the latter in many States is the most
| powerful. During the six years, 1919
| 1925, At California banks gave up
their national charters and went over
to the State system, "a in New York,
| 10 in Ohio and 10 in Pennsylvania.
Recently the largest New York bank
outside of the city went over TO the
enemy" and the largest bank in Bos-
ton has done likewise.