Evening star., 1925-11-15
REDISCOUNT RATES ARE NOT
INFLUENCE in STOCK MARKET
Overextended Speculation Brought Recent Reaction.
Banks Burdened With Cash-Money Panic
DAYS COne-Financial Comment.

TO say nothing Of the chance OF extra
declarations.
Our old friend Railway common,
foot ball of the market for many
years, non-dividend payer for a time,
and in itself not big cash Garner, Is
now associating with the aristocrats
of the local list.
Just why per cent dividend pay
er. that the utility commission will
never allow to pay much of anything
more, should be sporting up above
S225 share is causing wide comment.
Time was when we'll known local
broker engaged in a campaign to
boost it to par. following which it
took a grand and lofty tumble only to
be resuscitated again by the sale of
27,o0o shares of the stock in block
to interests identified with the North
American Co"
This corporation makes no bones of
its ownership of larger block of the
stock today with its paper gain of
millions, that would be mighty hard
to bank.
The company, however does not
claim to have control and it's local
representative has not been on the
buying end of the Railway common
upward movement, which has really
been for the credit of Boston and
some New York interests.
Opinion is advanced by some Stock
Exchange members that the latter in
terests are determined to obtain a
large enough block of the stock of
the corporation to force recognition
from the North American interests in
future plans.
This at once suggests what might
be a wise move on the part of BoS-
|
shares which have equal voting power
with the common, pays the same divi-
dend and are still selling under par.
The preferred cannot earn more than
per cent dividends; the common
might, il it could get by the utility
commission, but there is always the
threat of a scent fare, reQuescent
right now. before the eyes Of street
railway managers. Past due dividends
might be paid up.
Service and Merit.
The introduction of civil service
into business life might result disas-
trously to the enterprise using It,.
Likewise the ancient rule of senior
ity in office advancing to the choic-
est committee appointments in Con-
gress. strictest civil service is liable
to place incompetents in positions
for which they are not fitted.
Where service is based on merit,
then continuity of service may be
recognized with safety even in busi-
ness.
Comment is made anent the ad-
vancement of Robert V. Fleming TO
the presidency of the Riggs National
Bank. d position for which he Is
eminently fitted through years of
training under the ableSt of tutors.
Likewise, George o. Vass. advanced
to the position Of cashier. while re-
naming a vice president. shows
recognizition of service of years and
outstanding merit.
1t is also easy TO recognize the
realization of the wishes of the la
mented Milton +. Allies in these ap-
pointments by the Riggs National
directorate.
Beg Pardon, Please.
In a recent article on this page,
reference was made to the banks gen
orally represented at the weekly
luncheons of bank officials. The Dis
trict National was omitted from
that list inadvertently.
These weekly gatherings, admitted
| ~ of great benefit In checking frauds
| and check-kiters, had its origin with
Joshua Evans. jr., executive vice
president of the District National.
He is at every meeting.
AS an evidence Of the manner in
which information given in conf
dence at the luncheons works. atten-
ton Is called to a check -kiter who
was in the habit of using several
hundred dollars of banks money from
day to day. Called and requested to
close his account. he found his habits
so well understood that he was un-
able to open a new bank account in
the neighborhood of his place of
trade. Eventually he will be driven
out entirely or forced to do business
thu In,