Evening star., 1927-05-11
PETIT LOCAL HEAD
OF MORTGAGE FIRM
Four Directors of D. c. Con-
Germ Elected to Board in
Mortgage Security Merger.
RY EDWARD C. STONE.


BY EDWARD C. STONE.
-four members of the board of di-
rectors of the old Mortgage Bond &
Guaranty Corporation of this city
were elected directors in the new
Mortgage Security Corporation of
America at a meeting recently held in
are Harry A. Kite, Frank j. Hughes,
Appleton p. Clark and Hugh A.
Thrift.
At the same time the directors in
the new company elected Fernand
Petit vice president and resident
manager of the Washington Office, To-
Gated at 1905 Vermont avenue north
west. Mr.. Petit was identified with
the Mortgage Bond & Guaranty Cor
horation, which was recently merged
into the above mentioned mortgage
firm. Mr.. Petit is a vice president of
the Merchants Bank & Trust Co. and
has long been active in financial Cir
cleS here.
The Mortgage Security Corporation
states that it's capital and surplus are
over $4,000,0 900, and that it has $40,-
600 900 in resources. The consolidated
company is conducting a real estate
mortgage and investment business,
Joseph E. Hecht of Norfolk being
president of the firm. At the Balti-
more meeting Albert Rathbone, vice
chairman of the National Security Co.,
was guest of honor at a luncheon and
spoke on the development of insured
mortgage bonds.
Trading Quiet on Exchange.
Spring fever or Summer heat hit
the Washington Stock Exchange to-
day and reduced the total of trading
severely. Twenty-Five shares of Wash
ington Gas Light stock changed hands
at "a. Potomac Electric Power pre-
ferred came out at 109 and 10 more
shares of Norfolk & Washington
Steamboat Co. stock appeared on the
board at the high price of 290. Forty
shares of National Mortgage & Invest
ment preferred came out at 8. There
was one small transaction in the bond
division, Washington Gas 6s, Series B,
selling at 104h.
Action of the securities Of the
Washington, Baltimore & Annapolis
Railroad on the Baltimore Exchange
has aroused interest here. The bid
price on these bonds was quoted on
the Washington Exchange Monday at
~. 1SSlGTQdy IL duNdHCeus IO 90 dIIu
today to SO. But with the bonds show
ing so much strength nobody cared
to part with them, and not sale was
recorded. The last sale on the local
board was long time ago at Sc.
These bonds sold on the Baltimore
Stock Exchange yesterday at 90A, a
gain of 5A over night.
$4O,OO0,0OO Loaned to War Vets.
Loans amounting to more than
$40 100000 have been made by more
than 1000 banks on the security Of
the adjusted service certificates issued
to the veterans of the World War, and
Gen. Frank T. Hines. director of the
Veterans Bureap. estimates that the
total during the year will reach
S60,000,000, 1t is stated by Reuben A.
Lewis, jr., in the current issue Of
the American Bankers Association
Journal. He says:
''The first clamor for loans came
at the height of the New Year rush
and found the banks haZy as to the
right policy. The average certificate
had an immediate loan value Of only
$88. There were two practical diff
culties. The bank had to be certain
that the veteran who applied for the
loan was the identical person whose
name appeared on the certificate, and
that he was mentally capacitated to
make the loan.
'"The loan value of these adjusted
service certificates increases about so
per cent every year and with the
passing of years what is now a small
loan will grow to sizeable proportions,
the repayment of which Is guaranteed
by the United States Government.
1.-THE bureau has the impression that
banks can handle this business at a
profit, but banks think this debatable.
One national bank made careful esti-
mates Of the costs Of handling the
average loan and concluded that it
could clear one-quarter of l per cent
on the original loan. AS expenses of
renewing the loan will be consider
ably less, this business should show a
fair profit in future years. What is
now an undesirably smah loan will.
within a few years. constitute desir-
able business, especially as the repay
ment of principal and interest are
guaranteed by the United States Gov
ernment. The average policy has a
in 1947. This year only $SS can be
loaned on the certificate"
Financial District Notes.
President Charles A. Bell Of the
American Security & Trust Co. leaves
Washington late today for a short trip
to Cincinnati.
President Francis M. Savage of the
Central Savings Bank has returned
to his desk after spending ten days
with relatives in Eastern Maryland.
The publicity committee of the Dis
trict Bankers Association held an
important meeting yesterday after
noon.
The program committee planning
for the Hot Springs bankers conven-
tion will hold another meeting next
Friday.
The bankers association essay con-
test closed yesterday and the judges,
George w. While, Frank Stetson and
Robert S. Stuntz, will begin their
duties very soon.
Another issue of Dollars and Sense
will appear late this afternoon. Ad-
vance proofs indicated this will be
one Of the best numbers published