Evening star., 1926-03-09
RIGGS ON DIVIDEND
BASIS 0E Is PCT.
Healthy Growth In Earnings
Brings Higher Return,
Fleming Says.
BY CHAS p. SHAEFFER.

placed on a definite annual dividend
oasis or Is per cent. directors OF the
institution yesterday approving this
suggestion made by Robert v. Elem.
ing, head Of the bank The disburse-
ments VIII be made in April and Oc-
tober.
The suggestion was actuated. Mr..
Fleming said. by consistent and
healthy growth in earnings, suficfent
10 justify the higher return.
Prior to recapitalization in October,
1873, annual dividend disbursements
amounted to 26 per cent on a capital
ization Of $1,O0O,0O0. The following
year a regular disbursement Of 13 per
cent, together with an extra dividend
or ] per cent, was paid on the ca pital-
ization of $500. 900, while in the IL
months Of 1925 regular dividend of
l3 per cent and two extras OF l per
cent were declared
A feature of the report to directors
dealt with the remarkable growth Of
the four branch Offices, whose deposits
which in 1922 amounted TO only $3.50
900. now total in excess Of S.. .000. 900.
Karl w. Corby, son Of the late
.harles i. Corby, a member of Riggs
board Tor many years, was named
10 the directorate To succeed his
father.
PepcO Preferred Weaker.
Issues were lethargic on tn. Wash
lngton Stock Exchange today. with
the so-called popular list, with the
exception Of Potomac Electric Power
preferred, selling off to weaker
levels.
This statement is particularly ap-
plicable to stock of the Merganthalsr
Linotype Co. which was weakly sup
ported AT 208. and Capital Traction
stock. which had two transactions
aggregating 10 shares At 113. Ian
ston Monotype was quiet at s1f.
Washington Railway and Electric
As. the long-term bond issue ~
the carrier. strengthened to ST.. on
relatively heavy selling aggregating
$4,000. face value. Gas IS sold AZ
ranges from 1902 TO 1881. depending
upon the denominations of the sales
Southern Diaries Sales.
Southern Diaries. Inc, reports gross
sales for February last OF S666. .766.
against $444,219 FOR the same month of
last year. or an increase of so per cent
over February. 1925. January and
February combined sales show an in
crease of S430, 900 over last year.
The new Miami plant at Miami Fla,
was opened the first of this month.
The local financial fraternity ex-
presses Itself as we'll pleased with the
terms of the Treasury's Spring
financing. announced yesterday, freely
Voicing the opinion little difficulty
would be encountered In floating the
issue.
One Of the attractive features Of the
offering. it was pointed out, is the fact
that the bonds will not be callable for
~ years. thus affording investors an
opportunity to stock themselves with
Federal securities which they know
can be held indefinitely. Too great q
portion Of the national debt. II ts felt,
viewed from the sta andpoint of invest
'''s. Is either of short-term naturt-
ties or is subject TO call within q few
Years
BY placing a premium Of |, to 1
per cent on the new loan. Secretary
Mellon Is thought to have made a
very close adjustment TO current con.
litions. He is offering the new bonds
on Weld basis Of about 3.73 per
cent, as against similar securities now
selling on 3.6s to $40 basis.
Schedules Suspended.
The Interstate Commerce Commits.
sion has suspended until July s, pend.
'ns an investigation. new schedules
her and other forest products from,
Montgomery. Ala. TO south Atlantic
ports. and from Covington Madison
and Washington. Ga. to Jacksonville
Fla. and other points taking the
same rates
The new schedules also would es.
tabllsh reduced rates on the same
commodities. which are not subiert IN
The combination rule. from Louisville
and Nashville Railroad stations South
of Montgomery TO Jacksonville.
How a violent stock marker boom
started in Germany on January
and resulted in many issues rising
further I'm four weeks than stocks
rose in four wears in the Wall stree,
bun movement is described in tho
current issue of the American Rank
ers' Association Journal.
AFTER year of hopelessness. Ger
many's Wall Street is in the throes
of securities boom" the article
saws. stocks have risen 50 even
100 per cent in month. Not ONLY
Germans. hut Americans. English
men. Hollanders are buying. Quite
respectable South Sea bubble Is
blowing itself out.
The boom began like fash.
without any visible reason. stocks
shot up all around. The recovery
was due only to technical and psy
cnoioSlcal factors. but. once II had
been given the impulse. material rea
sons for it We're found or invented
A real factor was that interest rates
continued to decline. The successful
foundation OF great Western steel
trust had powerful psycholocical
effect. With that the public took
heart.
Untrue hear yarns were replaced
BY brilliant crop of untrue hn1I
yarns. The public rushed in. as al
ways bit late. after the cream had
been skinned by professionals.
No Standard to Judge.
Uncertainty lies in the fact tha,
for most German stocks there is no
sta andard to judge whether a quota.
tion is intrinsically high or low.
Value cannot he judged from divi-
dend yield because, with certain ex.
ceptions. no dividends have been paid
since the currency stabilization Very
little Is known about earnings The
last published balance sheets are no
guide. The -stabiization balance
sheets, running into billions and
trillions of marks. had no mea ming
whatever. and the new gold mark
balance sheets are admittedly guess
work compiled merely to meet q legal
Values were arbitrarily
assessed In order to produce an
arithmetical balance, with capital
refixed on no known basis and with
debt whose amount. in view Of pend
ing valoriZation claims. often un-
known. 1t is therefore impossible To
prove that stock quoted at so i'm
1925 and at 140 today was cheap then