Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-23
CHIEF FEATURES OF McFADDEN
BANKING ACT ARE EXPLAINED
Effect on Branches, Mortgages, Investment
Securities and Other Activities Of Bust
ness Is Analysed by Capital Firm.

by Capital Firm.
bonds, the analysis points out that
some of them may be able to qualify
before the controller as proper invest
ment securities for national banks and
thereby improve their marketability.
Heretofore they have been regarded
not as investments, but as real estate
loans limited to one year and. there
fore. practically excluded as invest
mentS.
first mortgage loans on improved
city real estate for terms up to five
years. with limit of so per cent of
the value Of the property.
Other Striking Changes.
Section $500, 1.-The heart of the ma
tional banking act" has been COM
pletely rewritten. The 10 per cent
limitation of capital and surplus loan
able to a single customer remains the
same as in the old law. but this limit
now applies to the indorser of paper
who obtains a loan from the bank,
whereas under the old law the limit
ran only against the maker of q note.
1t is stated that under this and other
provisions of the new act many lines
of credit in national banks must be
reorganiZed. The status of loans upon
cotton. grain and other readily mar
ketable non-perishable staple COM
modities also is modified materially by
the new act.
Regarding branch banking, it now
develops that the act as finally
passed limited future branches of
both national banks and State bank
members of the Federal Reserve Sys-
tenn to limits of the city," not cor
porate limits of the city" Thus it
will devolve upon the Federal Re-
serve Board and controller of the cur
rency to determine by Interpretation
whether this means the natural
limits or metropolitan area, or the
legal corporate limits. This may re-
open the whole controversy over
whether branh banking should be per-
mitted in contiguous territory"
Branch Banking Limited.
| The act limits future extension of
branch banking to cities of q, 900 pop
ulation or more, with a sliding scale
of the number of branches permitted,
and this applies only to States which
by law permit State bank branches
1t is made easier for a State bank
to consolidate with a national bank
under national charter: national
banks have perpetual charters, thus
strengthening their trust powers; ma
tional banks may purchase and hold
real estate for future bank sites; or
ganization of small national banks in
Of Iuy. ,,% to
facilitated by reduction of the capital
required; stock dividends may be de-
clared by national banks, and Federal
Reserve charters are also given per.
petual charters.
Traction Notes Offered Today.
Public offering of a new issue of
S2,500,000 three-year per cent gold
notes of the United Railways & Elec-
trio Co. of Baltimore, dated March l,
1927, and due $780, is being made by
Alex. Blown & Sons. Proceeds from
the safe of these notes, which are
priced at 99A and interest to yield
about 6.2S per cent, together with
cash supplied by the company, will be
used to redeem the company's per
cent notes maturing August l, 1927,
according to G. d. Emmons. president
Seaboard Offers S5,OOO,OOO Bonds.
The Seaboard Air Line today offered
10000 900 Seaboard Air Line Railway
Co. first and consolidated mortgage
. per cent gold bonds, series A. They
are priced at 9S& and interest from
March /. 1927, to yield over Go per
cent.
The Seaboard-All Florida Railway
is also offering 50 100000 first mort
gage per cent gold bonds, series B,
which are guaranteed as to principal
and interest by Endorsement by the
Seahoard Air Line Railway. They
are priced at 972i and interest from
February /, 1927, to yield over $50
per cent. Dillon, Read & Co. is one
of the firms handling the issue.
Gas Light Stock Leads Trading.
Stock of the Washington Gas Light
Co. led quiet trading on the Washing
ton Stock Exchange today. opening at
G97s on a 32-Share turnover and adj
vancing to 20 on a sale of 100 shares.
Railway & Electric, preferred, sold at
80, ten shares of American Security &
Trust stock changed hands at 375, and
20 shares of National Mortgage &
Investment, preferred. at SIS.
IHGIe were Dul Two pOIlu tIdIlSdC-
| tons, Washington Gas 6s, series r,
selling at 1047s. and Washington Rail
way & Electric general 6s at 104.
Stanley Theaters Show Gains.
Net income of the Stanley Co., with
which the Crandall Theater interests
are associated, during 1926 before
charging off for depreciation, reached
the total of s3.148,S09. gain of
81 ,393,775, compared with 1925. The
greater number of the consultations
effected by the company became opera
tive only in the last quarter Of the year,
so that the 1926 income account re-
fleets receipts from acquired theaters
for only a short period. says the COM
pany's annual report.
The issuance of additional stock to
finance acquisitions increased the num-
Der of the company's shares from APP
proXimately 1874, 900 shares at the be-
ginning of the year to GIG 900 at the
close.
The company announces that 1926
was the best year in it's history, the
number of it's theater holdings being
expanded from SO to 210.
Heard i'm Financial District.
The listing committee of the Lon.
don Stock Exchange has granted per-
mission for transactions in common
stock of the North American Co.
a delegation of local bankers is
planning to attend the annual dinner
of New York Chapter, American Insti.
tute of Banking, Saturday evening.
The chairmen of the committees for
the coming savings bank regional con.
vention here in April are to meet this
afternoon at o'clock.
Representative Frank Fl. Reid re.
ports that the newly organized Great
National Insurance Co. is getting an
excellent start on this years business.
Work on the addition to the Wash
ingtOn Loan & Trust RIilding is pro.