Evening star., 1925-08-28
SEEK LOWER RATE
ON FARM LOANS
Joint Stock Land Bankers ito
Discuss Pairing Charges
at Annual Meeting.
BY CHAS. p. SHAEFFER.

Delegates from 55 Joint Stock Land
Banks will attend the seventh annual
convention of the Joint Stock Land
Bank Association, to be held in Col
orado Springs, September l to 3, in
elusive. The local delegation will leave
Washington tom3rrow.
The most important subject to be
discussed will be the consideration Of
ways and means to reduce the interest
rate on loans to farmers This rate
has been reduced to per cent in re
cent years and the Joint Stock Land
Bank Association now aims to bring
about a further reduction to 5l2 per
cent and eventually to 8.
Under Federal laws the Joint Stock
Land Banks ara given a ] per cent
margin on which to operate They
have been borrowing money from in
vestors at . per rent and lending it 10
farmers at 6. This year. for the first
time, some OF the larger banks were
able to obtain new money at Az per
cent and consequently were able -
make loans in their territory al ) -
per cent. In order TO make the average
loan rate to farmers 5i2 per cent. il
will be necessary for them to float
loans Of their own at AZ per cent
average coupon rate. This they Will
try TO do this year.
SIS 5,000,0 600 Issue Coming.
More than $4,000. 900 of joint stock
land bank bonds will be sold in the
remaining four months of 1925. There
is also a possibility that the joint
stock land banks will float an ad
ditional S30.000,000 of bonds for re
funding purposes. AS of August !.
the latest date for which official
figures are available. the banks had
outstanding net mortgage loans Of
s50S, 900. 600, secured by farm proper
ties. This represented an increase Of
S62,000,000 since December 81 last
Guy Huston, president of the Joint
Stock Land Bank Association, who Is
one of the leaders of the movement TO
reduce interest rates on loans, will
comprise one of the local delegation
departing tomorrow. Others are
George A. Harris, president of the
Potomac Joint Stock Land Bank and
a director of the national association,
and Mrs. Harris; w. w. Powell. sec
retary of the association, Mrs. Powell
and several members of the Federal
Farm Loan Board.
Railway Common Quiet.
The Washington Stock Exchange
today was devoid of unusual trad
ing. Railway common which has
for weeks. was inactive. although the
holding price was boosted 10 1S5, with
offerings of 179. Railway preferred
lost fraction when eight shares
sold at Ss2s
Riggs National Bank was strong At
$50, as was Mergenthaler Linotype at
1s1. Capital Traction brought par and
a half and 100%, while Merchants
Bank and Trust Co. was unchanged at
13s. Continental Trust sold at s6.
Offer Expires Next Tuesday.
Southern Diaries, Inc, announces
the offer made to Chapin-Sacks, Inc,
stockholders 10 exchange their stock
for the Southern Diaries, Inc, class a
| stock on share-for-share basis, and
| the right to subscribe for Southern
| Diaries, Inc, class b stock at $50 a
share, at the rate of three-tenths of
a share for such class B stock, expires
| September l at noon.
! Stockholders who do not deposit
their stock by that date will not be
| entitled to the subscription warrants
| on the B stock. The 81 has been a
| feature of New York Curb Elk
change trading recently, where 1t is
listed, selling to the extent OF several
thousand shares daily, its latest level
being between "a and 35.
| Southern's July Net
Rejecting continued gains in traffic
earnings of the Southern Railway for
July showed substantial Improvement.
Net operating income of $2,73s,926
compared with $2,105,215 for the same
month last year, while a correspond
ing gain was reported in gross rev
lenues. Net income for the first seven
months of 1925 totaled S17,331.SS9. an
increase Of s2.473,01S over the like
Iperiod last year.