Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-09
TREND IS UPWARD
ON EXCHANGE HERE
American Security Shares
Reach Peak for Year at
406 IL Today.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
American Security & Trust Co.
| stock reached a new peak for the
year on the Washington Stock EX-
| change today when, after Is shares
sold at 405. 10 more sold at 40G12.
The previous high point for the year
was 400 and the last sale 1896. The
| final bid on the exchange today was
401 with 420 asked.
Capital Traction sold at 106, Poto-
mac Electric preferred at 10SA. the
| SIC per cent preferred at 1919, Wash
| ington Railway & Electric preferred
at SO and Lanston at 99A and 997s.
| Mergenthaler again registered 1877
| Barber & Ross u per cent bonds
were active. opening 95A and closing
at 95B. Gas bonds, series B, came
out at 103A while the series a issue
changed hands at 1882.
Clearing House Probe Progresses.
| Special information was being
mailed today to Secretary Victor b.
Deyber of the Washington Clearing
House Association by local and nearby
banks regarding the proposal to form
an auxiliary clearing house association
! to include large number of banks in
| the vicinity of Washington that now
| clear through Baltimore and Rich
mond The QUESTIONABLE recently
sent out asked that the replies be for
warded early this week.
| The information intended to show
| how many items the local banks han
die in their dealings with suburban
banks, how much direct business these
institutions are doing with Washing
| ton, in short all fact that will give
the local clearing house committee
| necessary information in considering
| the PROPOSAL The questiOnnaireS call
| for suggestions of lettering the pres
ent service and also ask the nearby
banks if they are interested in joining
some auxiliary association mere.
Chairman Harry V. Haynes and his
committee hope to take the matter up
early in September
Stockholders Meet Tomorrow.
| Stockholders of the National Mort
gage & Investment Corporation Will
! NEE: tomorrow afternoon at 2 O'CLOCK
at 1904 Vermont avenue to act on the
| pIan approved by the directors ana
officers calling for the cancellation OF
64.6O4 shares of preferred stock and
also on the second part of the plan,
| which calls for the giving of one share
of no.par common for each 10 shares
Of the $10par common now held.
President Frank J. Hughes reports
that some shareholders sold stock at
n discount, despite official statements
| that the earning did not warrant such
| action. The company bought this
stock in open market and now pro-
| poses to cancel 1t.
Bank Changes Auditing System.
The Potomac Savings Bank has
changed its auditing system. which
| has been in use for about 20 years,
and is now having this work done by
| public accountants rather than by
some person directly connected with
| the bank. The work has been turned
over to William Clabaugh & Co. These
accountants follow the plan of the
Treasury examiners and descend on
! the bank without notice. Several &C.
| countants enter the bank at once, and
the thorough check-up which results
is proving highly satisfactory to the
Potomac Savings officials.
Southern Building Bonds Called.
The S2,100,00O issue of first sinking
fund bonds of the Southern Building
| Co.. Inc. have been called for redemp-
ton on October /, 1927, at 104A.
The bonds are dated April /. 1924, and
were offered at that time at 99h.
| About $780, 900 of the bonds have al
ready been called. and it is understood
that the calling of the rest of the
issue at this time is in anticipation OF
new financing on the enterprise. The
Southern Building was purchased sew
eral months ago by Peter A. Drury,
president of the Merchants Bank &
Trust Co, as private investment.
The bonds are listed on the Wash
| ThoSy
6h per cent interest. The last sale
was at 1912. The bid price on the
exchange today was 1922 with 104h
| asked.
Notices Make Taxpayers Happy.
Local bankers are greatly pleased
over the report that the Bureau of
Internal Revenue hereafter will notify
by mail all taxpayers regarding the
correctness of their income tax re-
turns. Heretofore taxpayers have
been kept in the dark as to their re-
turns unless more money was re-
quired or in the rare instances where
refunds were made.
The new order does not go back of
1926. Many bankers file large personal
returns and give advice to host of
other people as to how their state
ments should be made out. Reports
that these returns have been 20. X. ID"
will be welcome. The new system is
already in effect and thousands of
letters have been sent out by the
bureau.
1t will require more than $500, 900
of these notices to cover the 1926 re-
turns alone, so it can readily be seen
what task the Government has as
sumed in undertaking to tell every
t1YnoUpr how hn stands
In and Out of the Local Banks.
President Robert V. Fleming of the
Riggs National Bank left the city to-
day for q months vacation at Ocean
City, N. j.
President Henry w. Offutt of the
Potomac Savings Bank is confined to
his home with illness. having con-
tracted a severe cold.
President Harry V. Haynes of the
Farmers & Mechanics Bank is pass
ing the week with his family at At
lantic City.
President julius /. Peyser of the Sc
curity Savings & Commercial Bank
has returned from a week end trip to
Virginia Beach.
Harry w. Finney of Y. z. Booker
& Co. has returned from d vacation
which he spent at The Orchards. Va.
+. H. p. 6iddons, secretary of the
American Security & Trust Co, has
been passing his vacation at a New
Jersey resort.
r. Jesse CLANCY of the Commercial
National Bank is back at his desk aft
er passing several days vacation in