Evening star., 1926-06-12
NEW HOTEL BOND
ISSUE ANNOUNCED
Bank Organizes Finance
Concern-CIearings Gain
During Week-Notes.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
j. A. w. Iglehart & Co. and the
Trust Company of Norfolk, Va, will
offer early next week a new issue
of $650,000 first closed mortgage 10
year 612 per cent gold bonds, secured
by direct first mortgage on all the
fixed assets, valued at S1,734,013. of
the Cavalier Hotel Corporation Vir-
ginia Beach, Va.
The erection of the Cavalier Hotel.
which is now nearing completion, is
the result of community enterprise
sponsored by the leading banks, cor
porations and business men of Nor
folk and Portsmouth. There are
1,G00 stockholders. among the larg-
est being the Pennsylvania Railroad
the Chesapeake & Ohio Railway, the
Norfolk & Western Railway. the Old
Dominion Steamship Co, the Ralti-
more Steam Packet Co. (Old Bay
Line) and the Norfolk & Washing
ton Steamship Co. The bonds are
the direct obligation of the hotel
corporation, of which S. L. Glover
of Norfolk is president.
The property embraces so acres Of
land, fronting 800 feet on the At
lantic Ocean, the new 200-room hotel
and a new l8-hole hotel golf course.
The hotel will be managed by the
American Hotels Corporation. which.
with its affiliated interest, the United
Hotels Corporation, operates more
than 40 other hotels in the country,
including Hotel Roosevelt in New
York and the Benjamin Franklin in
Philadelphia.
The bonds are dated July /. 1926.
and are offered in 81 900. $500 and
500 denominations. to yield 6.5 per
cent, with the Maryland, Virginia and
District of Columbia tax refunded.
The Century Trust Co. of Baltimore
is trustee of the issue. There is al
ready much interest in Washington in
this new hotel. Several members oil
the District Bankers Association said
today that it was more than probable
that in looking for a new place to go
for next years meeting the Cavalier
would be the hotel selected.
New Finance Concern Formed.
1t is announced at the Merchants
Bank and Trust Co. that new
finance organization to be known as
the Federal City Securities Co. has
been organized by the officers and
directors of the bank with an author
lied capital of 81 900 900. This action
is similar to that taken by several
other local banks recently who have
formed securities companies. The
company has $3.50 900 par value stock,
which is held by the Merchants Bank.
There will be an additional issue OF
$50 900 of the SIS par value. which
the officers of the hank will hold.
This means that when the new stock
is sold the officers and directors ot
the bank will have S250,000 in the
new concern The officers are Peter
A. Drury. president: Rolfe +. Boiling,
Frank p Harmon, jr.: Frank f..
GhiselIi. L. f. Schreiner and j. i.
Sherwood. vice presidents; William
Henry White. secretary; f. jackson
Enrich, treasurer; Ralph NJ. Wolfe
auditor. who, with the following, com
prise the board of directors. Harry
f.. Allen Ray II. Arnold. Nobel J..
Barnes, J. w. Biddle, Harry X. car
roll. Peter NJ Dorsch, Mark a. Finley.
Ernest Gerstonberg. Holland w
Jonkes, r. L. Lamb. r. {. Marshatl
ir.: ]. Ernest Mitchell. c. c. Murray
Frank O'Hara. Joseph A. Rafert>.
Roland $. Robbins, Lewis NJ. Thayef.
A G. Waller, NJ. A. Waller and Jonh
Zanier.
Bank CIearings Increase.
In view of the lower coInInoul'S
prices prevailing. the gain or o.3 per
cent in bank clearihss this week Is
distinctlv encoura ging. Leading cities
of the limited States report an aggre-
gate of sS.6OS .293 600 TO Duns Re-
view against SS,176.6S8,0 900 for the
corresponding week of last year.
With a total of S5,092 100000. New
York City shows an increase OF 20 per
cent. while the outside centers. with
cIearings of S3.516.2 .293 900. disclose
gain of 90 per cent. Increases large
ly predominate at individual cities
the most marked expansion being AT
Boston. Baltimore, Richmond. Dallas
and Los Angeles.
For June to date. average daily Dank
clearings are IL per cent in excess ol
the average for a similar period of
| 1925.
Federal Reserves Gain.
! The consolidated statement OF con
| dition of the Federal Reserve banks
| on June 9. made public by the Fed
| eral Reserve Board, shows decline
| of s57. 500 900 in holding of bills and
| securities and of $11 100000 in Fed
| eral Reserve note circulation, while
| total reserves increased $4,000 900.
| Holdings of discounted bills were S76,-
| 500 900 less than week ago, while
| holdings of acceptanceS purchased in
open market and of Government Sc
| ct,rities were s5,70O.000 and $4,000
| 900, respectively, above last weeks
figures.
Great Excitement i'm Georgetown.
There was great excitement in
Georgetown yesterday, the din eN-
tending way across the Potomac and
finally becoming lost among the Vir-
ginia hills. The thrilling event was
tbe annual game between the base
bail teams representing the Farmers
& Mechanics National Bank and the
Potomac Savings Bank. The strug-
gle took place on the diamond in
.'Georeetown Hollow" When the
smoke of battle had lifted after nine
eruelling innings it was discovered
that the Farmers & Mechanics team
had won by the close score of II to 10.
Local and Other Notes.
Final reports of all committees in
charge of the coming convention OF
local bankers at Hot Springs. made
Yesterday afternoon, showed that all
arrangements had been completed
down to the smallest detail. The
biggest and best yet" was :ae com
ment of all when the committee meet
ing ended.
Baltimore and Ohio common stock
was one of the most prominent is
sues on the New York Stock Tx
change yesterday, selling at 96h,
the highest price recorded since 1914.
The preferred stock and bond issues
were also in brisk demand.
A banking group headed by the
Guaranty Co. of New York received
the award of the $4.O0O,000 State of
Virginia highway certificates of in
debtedness. the bids for which were
opcned late Thursday.