Evening star., 1927-10-29
DC. BANKERS KNOW
NEW A. B. A. CHIEF
Preston Started Career as
Bank Runner-McCrOry
Profits Increase.
BY EDWARD G. STONE.

BY EDWARD G. STONE.
Several Washington bankers already
know Thomas r. Preston of Chat
tanooga, who has just been elected
president of the American Bankers
Association. He has been attending
the annual conventions faithfully for
years, was vice president last year
and had previously served as president
of the national bank division.
Mr.. Preston began his banking
career at Tullahoma, Tenn, as a run
ner. Later he went to Chattanooga
and joined the Hamilton Trust & Saw
ings Bank as n runner, becoming in
turn, bookkeeper. caSAier and finally,
in 1902. president. In 1905 Mr.. Pres
ton. with his brother and associates,
organized the Hamilton National Bank
in Chattanooga, becoming president of
this institution also. The success of
this bank is evidenced by the fact that
it has increased it's capital several
times since its foundation.
Mr.. Preston is active in number of
important enterprises in Chattanooga
In politics he is an independent Demo-
crat, and he has twice served as dele
gate at large from Tennessee to the
national convention of his party. He
is n member of the Mountain City
Club, Chattanooga Golf and Country
Club and the Bankers Club of New
York, and is a thirty-second degree
Mason. He is married and has two
children. His home Is Missionary
Ridge, Chattanooga
Lower Insurance Costs Urged.
Tn making a plea for a reduction in
gomery, head of the Acacia Mutual
Life Association, said at the Dallas
convention:
I'm the early days of life insurance
when the business was small and little
understood, when the country was
new and was subject to epidemics,
such as smallpox. yellow fever and
others, when property values and in
terest earnings were not stabilized
when experience had not tested the
mortality tables to prove their suffi-
cheney, it was fitting and proper that
the companies should charge a premi
um large enough to provide against
unforeseen contingencies.
But in this day and genera ton,
with the mortality tables having been
proved more than sufficient, and that
notwithstanding the greatest war of
all time and the flu simultaneously;
with property values stabilized, and
the possibility of epidemic removed,
there would seem to be no good rea-
son for the system of continuing to
collect from the public larger pre-
MUM than is necessary to guarantee
safety, stability and perpetuity, yet
this is just the system being pursued
by the mutual companies today"
Mr. Montgomery declared that it is
through dividends to return this over
charge at future date, but, he asked,
why collect 1t in order to return it?
CAS- Il matter of fact" the Wash
ington life insurance man asserted,
''it is impossible for any company to
return ali of it. The agent gets his
share in commissions, the State gets
it's share of taxes, and there is the
home office cost attendant upon col
Letting it, accounting for it and re-
turning it to the policyholders."
McCrory Stores Profits Up.
McCrory Stores Corporation reports
for nine months ended September 80,
1927, net profit of S1,396,610 after ex-
penses, Federal taxes, ETC., equivalent,
after dividend requirements on pre-.
ferred stock, to $500 a share earned
on 455,S shares of combined no par
class b and common stocks. This
compares with $1,203,S59 or $3.50 a
share, on combined stocks in first nine
months of 1926.
Net profit for the September quar-
ter was $452. .492 after above charges.
equal to 81 cents a share on combined
stocks, as compared with $627,577, or
S1.19 share, in preceding quarter
and $436,684. or SO cents a share, in
September quarter of previous year.
Virginian's Earnings Unchanged.
The Virginian Railway reports for
the nine months ended September 80,
l927, surplus of $5,087,550 after taxes
and charges, equivalent after allow
ing for dividend requirements on 6
per cent preferred stock to $12.24 a
share earned on outstanding 312,715
shares of common stock. This COM
pares with $5,079, ,403 or $12.22 a share
in same period of previous year.
Norfolk SOMhern's Earnings.
The Norfolk Southern's latest re-
port to the Interstate Commerce
Commission gives the following COM
PARSONS:
Sept. gross..... $749,5S6 $S25,619
Net op. inc...... 1929 139,603
8 months gross. 7,194,S17 7,441,715
Net op. inc...... 1,334,361 1868, 745
Bankers Council Has Meeting.
The District Bankers Association
Council Of Administration held a meet
ing yesterday afternoon at headquar-
ters. President w. W. Spaid repol ted
that only routine matters were dis
cussed although wide interest is being
manifested in the various activities OF
the organization which ere now un.
der way.
Porto Rico Bond Issue Awarded.
Crane, Paris & Co., local investment
bankers, and several other associated
firms are awarded a 81 900 900 issue
of Portion Rican bonds, bids for which
were opened yesterday at The office
Of The Bureau of Insular Affairs in the
War Department, The successful bid
was $108.35. The other firms partici.
pating are White, Weld d Co, Esta-
brook & Co, w. Fl. Newbold's Sons
Co. Stein Bros. & Boyce, and the
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