Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-06
D. c. AREA OUTLOOK
LESS FAVORABLE
Richmond Reserve Bank Says
Trade Is SIoWer-Some
Lines Are Better.
RY EDWA ARD C. STONE.

BY EDWARD C. STONE.
Elements Of strength and weakness
| are both present in the current bust
ness situation in the local fifth district
hut on the whole the general outlook
| anpears to be somewhat less favorable
than at the same time a year ago. ac-
cording to the Federal Reserve Bank
of Richmond.
The strike in union bituminous fields
has increased the demand for West
Virginia COAL the bank said, and the
textile situation in the district is much
better.
| But at the same time, it was stated,
business failures are running ahead
of 1926 in both number of defaults and
| in liabilities involved. Building per-
mits have been lower in each of the
past eight months. Labor also is not
| so we'll employed as it was a year ago,
| and this is being reflected by lower
volume of retail trade. Wholesale
trade is not better than fair.
| Agricultural prospects are highly un-
certain, due to unfavorable weather,
the bank declared. Conditions up to
| the present have been favorable for
the cotton crop in this district, how
ever, and on the whole the small-grain
crops are good.
Bank President Is GO Today.
| Peter A. Drury, president of the
Merchants Bank & Trust Co.. was re-
ceiving scores of congratulations to.
day, his SD birthday. Mr.. Drury is
one of the most active bank presi-
dents IN Washington and his friends
expect to see him remain one of the
leaders in the financial district for
many years to come.
Mr.. Drury was president Of the old
Merchants Bank, which started in
business on + street more than a dec
ade ago and later moved to G street.
| The Merchants Bank eventually be-
came the Merchants Bank & Trust
Co., absorbed the Citizens Savings
Bank, and, while it is only about five
years old, has enjoyed remarkable
growth. That Mr.. Drury believes in
steady expansion in shown by the fact
that his institution has three prosper
Gus branches, one at Dupont Circle, an
other at Twenty-first street and Penn
sylvania avenue and the third in
Brookland.
| His most recent financial move was
| the purchase some months ago of the
| Southern Building, at Fifteenth and
| H streets, where the Merchants Bank
& Trust Co. is. He bought this office
| building in his own name, neither the
bank officers nor any other group of
business associates having any part
in the deal.
The veteran banker had a surprise
| today when local caterer sent to his
Office a very large birthday cake. 1t
was a perfect facsimile Of a bank
check, being about three feet long,
two feet wide and nearly three inches
| thick. 1t was covered with a light
| colored frosting and upon this was
written with chocolate the name of
| the bank, PAY to the order of" the
date, lines for indicating the amount
| of the check and signatures of the Of
ficers of the catering firm. So pleased
was Mr.. Drury with the gift that he
| is going to have it photographed be-
fore he shares it with his friends.
Today's Local Market Steady.
| Washington Railway & Electric pre-
| ferred was in strong demand today, 80
shares selling at 91% and 10 at 915s.
Potomac Electric Power 6 per cent
stock came out at 1O8A, while the
corporations 51a per cent preferred
sold at 1919.
Capital Traction appeared on the
board today, selling at los. Ten
shares Of Lanston Monotype changed
hands at 99A and 40 at 80. Only one
bank stock was traded in. that being
| two shares of American Security &
! Trust Co. at 1893.
In the bond division Washington
| Gas SIS sold at 101 q, while a baby Gas
6, Series A, changed hands at 1903.
The ex-dividend list has been greatly
reduced by the July l payments of
many local dividends.
1 H.
The Equitable Securities Co., Inc,
affiliated with the Equitable Trust
Co. Of New York, announces the APP
pointment Of Stanley Carr as its
Washington representative. Mr.. Carr,
connected for the past Az years with
the Guaranty Co. of New York, will
have his office in the Edmonds Build
| ing, 9l7 Fifteenth street northwest.
Miss Anne E. Henderson, also for
merly with the Guaranty organiza-
ton, will be associated with Mr.. Carr.
Stockholders Enter Protest.
The stockholders protective com.
mittee, headed by George S. Kemp
Of Richmond, has sent circular let
ter to the common and preferred
stockholders of the Chesapeake &
Ohio Railway, scoring the testimony
given by President Harahan at the
recent Interstate Commerce Commits
sion merger hearing. They declare
that his forecast of decreased earn
ings for the road was unjustified.
/ The circular, signed by George S.
Kemp, Granville G. Valentine, Lind
sey Hopkins, J. Luther Moon and
Berkeley Williams, concludes:
''In our judgment, any estimate OF
the earnings of any railroad made at
this time is pure guess-work, certain
| ly for q period of five years, in view
of the uncertainties now facing us;
and it is difficult to understand why
Mr.. Harahan should make state
ment that tends to depress the value
Of the securities of his own road and
| at the same time attempt to boost the
earning power of the Erie road, which,
for the period of six years ended De-
cember 81, 1926, showed a deficit of
| $4,917,473 from the operation OF its
| railroad proper.
Upon cross-eXamination before the
T. c. c., Mr.. Harahan admitted he
had not made a correct prophecy in
regard to the earnings of the Chesa-
peake & Ohio since 1924. So, why
should any one attach any importance
to a five-year estimate of earnings
made by him at this time, especially
in view of his record as a railroad
prophet? And it is believed that the
Chesapeake & Ohio, despite the OBJ.
yious efforts of its operating officials
to depreciate it's potential earning pow
err, will, as an Independent property.
continue to enjoy substantial increases
in both gross ard net revenues
Heard i'm Financial District.
Robert V. Fleming, president Of
Riggs National Bank, returned to his
desk today after brief outing at Vir-
ginia Beach. A. M. Nevius, one Of the
vice presidents, has also returned from
a vacation.
Farm Loan Commissioner Eugene