Evening star., 1927-05-02
HOLDING CONCERNS
IN BANK STOCKS HIT
McFadden Calls Practice
''vicious Form of Chain
Banking"-Gas Report.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Declaring that a tendency exists
among certain promoters in the United
States to organize holding companies
to buy bank stocks, Chairman Louis
r, McFadden Of the House banking
committee called on Controller j. w.
Mcintosh today and asked him to use
the powers Of his office to stop such
practices.
The purpose of the stock purchases,
Chairman McFadden asserted, is to
centralize control of several, or pos.
sibly a larger number of unit banks.
He termed this "a vicious form of
chain banking" and declared that if
supervisory forces Of the Government
could not remedy the situation pro-
hibitive legislation would be necessary.
This is considered the most impor-
tant move made in the banking world
since the passage Of the McFadden
banking law.
Gas Revenues Show Slump.
According to the March report of
the Washington Gas Light Co., filed
with the Public Utilities Commission,
operating revenues during the month
reached $443,586, operating expenses
were $330,472, leaving an operating in
come of S74,666, and a net income,
after the deduction of taxes and all
other expenditures of $23,574.
In March, 1926, total operating reve-
nues amounted to $479,443, operating
expenses to $333,285, leaving a net
operating income after taxes of $115,.
294, and net corporate income for
the month of $68,S49.
In February of the present year the
total operating income after the de.
ductions of the usual operating ex.
penses totaled $145,181, while the
company's net income for February
reached the sum Of $93,S39. Operat-
ing expenses were heavier in March
than in February, while seasonal con.
ditionS at the same time were cutting
down the company's revenues.
Local Market Is Quiet.
The Summer weather hit the Wash.
ington Stock Exchange blow today
trading being the 1ightest for many
weeks. Ten shares of Second Nation.
al Bank stock sold at 237, s shares
of Washington Railway and Electric
preferred came out at 92A and 2
shares OF Merchants Transfer and
Storage preferred registered 1001s.
On the bond side, Railway and Elec.
trio As sold at S512, $500 transfer in
Washington Gas 6s, series B, took
place at 104A, and 1000 Gas So came
out at 101a.
Bankers Council In Session.
A special dispatch to The Star from
Hot Springs, Ark, states that the
executive council of the American
Bankers Association opened its
Spring session this forenoon. The
first reports indicated that business
conditions are irregular all over the
country.
George o. Watson, president Of the
Liberty National Bank of this city,
when asked for his views on business
conditions in the Capital, said:
General business conditions in the
District Of Columbia are satisfactory.
Labor is well employed and the only
surplus noted is the clerical class.
Building construction Is about 10 per
cent below last year at this time.
Banks are still reporting gains in de-
posits and a great volume of outside
funds have poured in toWashington
for investment, lower interest rates
causing many large real estate loans
heretofore carried by local institutions
and investors to be paid off, thus re-
leasing large sums which must be re-
invested. Retail trade is reported sat
isfactory. the dealers finding ready
sale for the higher-priced lines"
w. r. Morehouse, president of the
Savings Bank Division of the A. B. A,
who presiding at the Savings Bank
Conference in this city recently, re-
ported that business in Los Angeles
Is now better than during the last
quarter of 1925. He looks for better
year than last, although competition
is keen and profits lower.
President NJ. A. Taylor of the A. B.
A. said the business situation is
rather spotty. He considers agricul-
tural prospects, on the whole, as sat
isfactory. He believes that low in
terest rates will prevent anything like
a serious business depression, and ex-
poets the employment situation to re-
main favorable throughout the rest
Of the year.
George l.. Woodward, vice president
of the Savings Bank Division, said
that conditions in Connecticut are al
most exactly the same as q year ago.
Georgetown Gas Earnings.
The Georgetown Gas CO.. March re-
port filed with the Public Utilities
Commission shows net operating rev.
enues for the month of SOL 1888, and
operating expenses of $47,746.20, leav-
ing an operating income of $11,384.46.
Net income after the deduction of
taxes and all other expenses amount
to $7,74S.24.
Total operating revenues were ahead
of March, 1926, when they amounted
to $50 ,344.49, while expenses were
lower, being SAT ,08S.54 in 1926, leaving
a net income of $7,01S.42. Net income
in February of this year was $9,351.74.
Heard I'm Financial District.
It was reported in the financial dis.
trict today that subscriptions are COM
ing in rapidly to the banks and in
vestment houses associated with the
sale of the Potomac Electric Power
Co.'s $2,500,000 5h per cent preferred
stock, par value 500 per share, and
priced at 90. This was the opening
day of the sale.
The District Bankers Association
will settle the earlier closing issue at
a special meeting to be held tomor-
row afternoon at Ais at headquarters.
William J. Flather, vice president of
the Riggs National Bank. was back
at his desk today after being confined
to his home about q week with bron-
chitis. The veteran banker still has
a heavy cold.
1t was announced on the Washing
ton Stock Exchange that the Barber
& Ross permanent certificates on the
common stock are now ready for dis
tribution.
l.. A Slaughter, vice president of
the Commercial National Bank, took
a week end motor trim to Winchester,
Staunton, Charlottesville, and several
other points in the Shenandoah
Valley.