Evening star., 1926-10-28
INSTALLMENT PLAN IS DEFENDED
BY HEAD OF AUTOMOBILE C.. OFC.
Alfred Reeves Sees Little Danger and an
Education in Thrift in Expanding
Deferred Payments System.


homes built and the amount of life
insurance in force.
"a survey shows that losses on
| $500 ,000, 900 of automobile paper have
been less than onesfifth of 1 per
cent. This is less than the national
banks suffered in bond losses. which
in 1925 was in excess Of one-half Of
1 per cent
Mr.. Reeves pointed out some of the
advantages Of the method which he
said were sometimes lost sight of
because of the many attacks on the
system. He continued:
"InStallment buying encourages
thrift, as people must economic to
meet payments; it enables people to
get at once things of value and
utility: the buyer may use and enjoy
an article while paying for it: it leads
people to put money into things Of
real value; time buyers get an article
at a lower cost because Of larger pro-
duction; the responsibility placed on
Il person insures his doing more and
better work, and it keeps an industry
prosperous, which reaches out and
helps almost every other industry"
Advantage to Other Industries.
Among industries profiting by the
automobile trade, Mr.. Reeves men
toned producers of gasoline, road ma
terials, rubber, automotive freight,
iron. steel, plate glass, upholstery
leather, lumber, aluminium, copper. tin.
lead, nickel, upholstery cloth, inita-
ton leather, paint, varnish, hair and
padding. Any slump in instaument
buying, which the New York man
says is nowhere in sight, would have
serious effect on these other lines.
He added that September production
was 23 per cent ahead of last year,
and the toal output for the year will
probably reach 100000 cars.
1nstalment buying In the past six
years has not been at either the ex-
pense or thrift of the people, he con-
cluded. In reply to questions. he said
he is opposed to forced automobile in
surance, believing that If every driv-
er Is insured many will shift the re-
spOnsibility, take more risks and
cause more accidents. The fact that
10000 people We're killed in auto mis-
hapS last year shows the importance
OF this problem.
Financing Difficult for Banks.
The days of insuring motor cars
so heavily that some owners are glad
to see them burn up or be stolen
GA . ONCAJ Uc dSSSIlGu. ASKED
Blue Book values on used cars, he
agreed that they are low, but said
there was nothing to prevent an
owner getting more for his car If
the dealer would give it to him.
Answering another question. Mr.
Reeves said that on account of the
many details involved he felt that
1t was better for finance companies
than the banks to handle this con-
sumer credit.
H. w. Burnside, chairman of the
forum committee, presided; r. Hun
ton Leith, president of the chapter,
welcomed the guests; W. w. Spaid
represented the District Bankers AS
sociation, and Victor B. Deyber had
a word to say for the Clearing House
Association. The attendance was very
large, much credit belonging to l. ].
Roberts, F. II. Cox and Oscar A.
ThOrup.
Washington Stocks Strong.
Four shares of Riggs National Bank
stock sold on the local exchange to-
day at 446, an advance of points
over the last sale made last week. Ma
tlonal Metropolitan Bank stock sold
at 4O3. the recent prevailing price.
Lanston Monotype recorded two sales
at 92A and Peoples Drug Stores. pre-
ferred. came out at 108 Merchants
Transfer & Storage, common. sold at
lib and the same company's preferred
at 1OO12. Thirty shares of Washing
ton Railway and Electric, preferred,
changed hands at 90A and Potomac
Electric Power, preferred, registered
one transfer at 1882. Not q bond
was out.
Insurance Mem ViSif Ciix
i. Norie-NTiller of Perth. Scotland,
managing director of the General Ac-
c1dent Assurance Corporation, with
Frederick Richardson, United States
manager for the same company, are
In Washington attending the monthly
meeting Of the board of directors of
the Potomac Insurance Co, in which
the General Accident holds a sub
stantial stock interest. The directorate
OF the Potomac. with Mr. Norie- Miller
and Mr.. Richardson, are guests of
Charles f.. Hood at the Blue Ridge
Rod and Gun Club for today
Phone Stocks Advanced.
The steady appreciation of shares of
the American Telephone and Tele-
graph Co. is reflected in the fixing
OF new price for the stock to EN-
k'ANS 20 w NAAC NO1ILlJttIiS III lou. IIQI
10 November the stock may be bought
by employees at 125. while. early in the
year 1t had been offered at 121. With
Telephone and Telegraph holding con-
s1stently around 145 the spread be-
tween the market price and subscrip-
ton price to employees became too
wide. The company announced recent
ly that there are now more than 17O,-
600 workers paying for the stock un-
der the plan.
In and Out of the Banks
James A. Soper. cashier of the Lin.
coin National Bank. has gone to At
lantic City to pass a two-weell va
cation.
Vtce-president G.. W. Warden of the
Continental Trust Co. has returned
from a vacation passed at his estate
in Virginia.
There has been fine response for
the annual Halloween party Of the
women's committee of the local Insti-
tute of Banking to be held at the
Wardman Park Saddle Club Satur-
day evening, Miss Catherine Kreig,
chairman OF the committee, reports.
The New York Curb Exchange has
removed LoeW's, Inc, SO debentures
Of 1941 from its unlisted trading priv
ileges.