Evening star., 1926-02-26
URGES PROTECTION
FOR j. S. SAVINGS
Bank Official Pleads for
RedoubIed Efforts on Part
OF Nations Bankers.
BY CHAS. p. SHAEFFER.

with super-schemes Of fraud being
developed in all directions by high
powered statesmen who are becoming
more and more crafty every day." the
time is at hand for the country's bank
ers to put forth redoubled efforts To
protect their savings depositors from
the Wiles Of crooks. This was the urge
put before the Western regional say
uiss conference of the savings bank
alVlsion of the American Bankers As
soclatlon today by w. r. Morehouse.
vice president of the Security Trust
ana savings Bank of Los Angeles.
Mr. Morehouse, using actual in
stances of these modern schemes. de-
scribed how chain-selling plans, con-
Quoted on lines that would insure
thelr breaking down to the benefit of
the promoters, are employed to cheat
WORKING girls out of their savings. He
also told how recent campaign for
distributing stock in an unsound cor.
poration brought to the promoters
over sl,0O0,0O0 in commissions in
three months and took the savings OF
| thousands Of small investors. and of
sun another case where meetings
staged in tent on a fake oil
held equipped with make believe wells
ana pumps were used in big stock
selling drive that Impoverished large
group Of elderly men and women.
Bankers Help Needed.
The speakers declared the Nations
| bankers are doing great work in
teaching thrift, but said they have
1allen short in one particular, that OF
failing to help the saver at a point
when they should be most helpful to
| him. Bankers spend millions of dol
W
and the fact that over 43 900 900 per
| sons in the United States have savings
accounts is evidence that they have
! been very successful. These savers
are at the utter mercy of fraudulent
statesmen. with the bankers of the Ma
| ton doing nothing to warn their de-
| posttors to beware of fake schemes
and ill-adviSed promotions with only
| an exception here and there.
In presenting a plea for greater CO.
! operation to offset the evil, the speak
| er suggested as a remedial measure
| banks union in movement designed
| TO protect the depositor against the
| schemes Of the wild cat promoter-in
! a movement that will save savings
| deposttors from despair and from pow
| erty as a result of having lost all-in
movement that will turn into legi-
| innate investment channels the mil
| lions OF dollars which are now wasted
| on fraudulent schemes of one kind or
| another.
The best service a bank can render
| a novice investor is to keep him from
| making poor investments by helping
him to make good ones.
New Stock Oversubscribed.
| Subscriptions to the new stock of
! the District National Bank, which
offer valuable rights to present stock
| holders, have been heavily oversub-
| Scribed, according to recapitulation at
a special meeting yesterday. The
bank will. however, adhere to its
original plan and keep the books
! open until March 8, it was said.
| Under the plan, the institution Of
fers to present stockholders the right
present holdings at SITS, with non
| stockholders being offered the right
| to subscribe at 5000 a share, all ex-
cess above the $100 par value being
placed in surplus.
| A total of 40. 900 new shares will
be offered. giving a capitalization.
| after financing Is complete, Of
100000 capital and more than
100000 surplus.
| Trading on Local Board.
! Todays session on the local ex-
| change was one of the dullest of the
year, with the price level unchanged.
| Capital Traction flrmed up from III
to 117A on selling of q shares, and
10 shares Of Riggs National Bank re-
suited in an upturn to 47614. Railway
preferred and Gas were both un-
changed. the former selling at 81 and
the latter at 1884. National Mortgage
and Investment preferred was strong
er, at s.
| Guests at Chapter Dinner.
| r Jesse CLANCY and T. Hunton
Leith. respectively president and vice
president of Washington Chapter
American Institute of Banking. will be
+, honor guests at the annual dinner Of
the New York chapter to be held at
| the Hotel Astor tomorrow night.
| &c. c. Grants Permit.
The st. Louis-San Francisco Rail-
way Co. received authority from the
Interstate Commerce Commission to-
day to issue s7.S000o0 of equipment
| trust certificates.
LIVE POULTRY STEADY.
Il n