The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1926-12-02
D. c. FIRM AIDS
BOND SURVEY
By RICHARD HATTON

considerable interest and taVof
able comment was manifest today
in financial circles over the an
nounasment that G. Bryan Pitts
chairman of the board of the r. Fl
Smith Company, had been named as
member of the committee of eight
of which Franklin d. Roosevelt u
chairman. organized for the purpose
of making q thorough survey Of the
first mortgage real estate bond bust
ness of the United States. This
business now aggregates about 81
100000. 900 a year and the survey is
to be made as the result of a meet
ing Of the American Construction
Council held recently in New York.
The present action is taken large
ly because a number OF leading
figures in the business believed it
had become necessary to stabilize
and standardize the industry espe-
cially with relation to appraisals
upon which bond issues are ordi-
narily based,
In connection with the announce
nlent of the naming Of the Roose-
welt committee It has been known
for some time in local financial
circles that there was need of some
such survey to project the Investing
public and the real estate bond bust
ness from INSCRIPTIONS houses.
While the matter of q survey has
been discussed for some time it was
not until q recent spectacular failure
occurred in this field that the matter
crystalized into the present action.
It is the contention of those in
terested that the whole business is
at least as sound as any 0tner large
interest in the country and that sucn
criticism as may be made could be
made as well of any other industry.
The existing situation is not, they
contend, dangerous in any way. but
may be made to aiopear~so. here and
there, through the operations Of
small groups within the industry,
who may not. under existing eondi-
lions, be disciplined in any way no
matter what their practices may bs.
1t is particularly fitting and up
pfopriate that the Capital should
be represented upon this important
committee Ia the person of Mr..
Pitts and that the II. III. Smith
Company SHOULD lend its weight to
the undertaking through the chair
man of its board.
It is considered probable that as
o result of the activities of the
committee TO which Mr.. Pitts mas
been named, which is to make its
report, possibly in January, that
a distinct change will be made in
methods OF doing business, and it
may be that national organiza-
ton of those interested I'm the is
suance and selling Of first mortgage
real estate bonds viii be formed;
Tat a code OF ethics may be
adopted; that a uniforms and stand
ardized practice In appraising may
be determined upon. and that some
win be inaugHrated to
bring the various blue sky laws in
different States into q measure OF
uniformity.
The main object Of the survey,
according to those interested in
forwarding the present action, is to
among a small minority from in
turing the investing public and the
honorable members of the bust.
ness, the great majority of the
houses dealing in first mortgage
real estate bonds, which are 100
per cent sound and reliable.
Officials of the Central Savings
Bank are extending congratulations
10 Cashier Roberts upon the arrival
of q girl at his home. Following
its usual custom, the Central Saw
ings Bank opened an account for
Miss Grace Clagett Roberts as soon
as the young lady's arrival vas
announced.
John NJ. Riordan, cashier Of the
Bank Of Commerce and Savings, has
returned from visit to the Sesqui-
centennial at Philadelphia where he
spent four days comparing the archi-
lecture OF the fair buildings with the
new improvements now being COM
pleted at his bank.
Clarence r. Nermant, chairman of
the board OF the National Bank OF
washington, has returned from an
extended visit to Atlantic City.
Norman e. Towson, manager of
the foreign exchange department of
the. Washington Loan and Trust
Company. and one OF the best posted
men IN Washington on the subject
OF foreign exchanges. will speak be.
fore the class in banking funda-
mentals Of the local A.. l. B. Chapter
this, evening. This is the largest
class enrolled in the institute in
Washington and is conducted by
y ~.