Evening star., 1928-01-30
NKSSTRENGTHEN|
THEIR CREDIT F|LES|
Local Merchants to Comply
With Request for 0perat-
ing Statements.
BY EDWARD c. STONE.

the resolution passed by the DlStric
Bankers Association asking that al
bank borrowers file an operating state
ment. in addition to the usual financia
statements. in order to give the bani
more definite information relative Il
! credits The action of the association
has aroused exceptional interest and tht
general policy now being adopted is con-
sidered both as sound banking anc
sound business.
| Adoption of the resolution came as
! the climax Of a campaign which mas
been carried on quietly since 1929, ano
Ia Robert Y. Fleming. president OF the
RIGGS National Bank. is due credlt loi
its passage. Mr.. Fleming was CHAIR.
man of the committee on commercial
and trade activities in 1925. lnvestlga-
ton at that time showed great need OF
STRENGTHENING the credit departments
and credit files of the banks by asking
for operating statements in ADDITION "a
the information then being furnished
It was felt that preparation OF more
FREQUENT statements would also prove
most beneficial to merchant borrowers
as such reports would give them much
better grip on their own business. In
speaking Of the situation. Mr.. Fleming
said today:
Certified Statement Urged.
In the last four or five years great
progress has been made i'll having oul
borrowers file correct financial state
ments and along these lines / desire tc
call 10 the attention Of the association
the oeSirability. particularly III the case
of the larger lines Of credit that are ex-
tended. of having statements rendered
as 10 assets and liabilities and profit ano
loss by certified public accountants.
do not believe that this all can be ac-
complished at one time. but certainly
every effort should be made in these
directions. I believe that movement
along this line will be most helpful tc
the borrower. as he is as much in need
Of true picture of his business as is the
banker who extends the credit"
In the light of the associations re-
cent action statements bearing on the
situation which. were contained IN Mr.
Flening's committee report in 1925 are
now of special concern. Among other
things Mr.. Fleming said at the conven-
ton that year:
1t is the general practice. where
RdAAAo AlNAab ~
chants TO require them TO file a state
ment OF their assets and liabilities al
least once a year, but in order that
closer contact can be effected between
the banker and the merchant your COM
mittee recommends that in addition To
the statement of assets and liabilities
monthly or quarterly operating state
ments Of income and expense also be
filed.
This recommendation at the out
set might incur some slight hardship
and changes in accounting methods
but. in the end. would prove, undoubt-
edly, of great benefit TO the banker as
well as the merchant"
Bankers Delay Resort Visit.
The FIVE members of the District
Bankers Association who were going tc
Montauk Point. Long Island. over the
week end 70 survey the advantages ol
that resort as a place for holding the
next annual convention. delayed theiI
trip on account of the weather.
Deep interest is being shown in the
place to be selected. The resort under
consideration is on the extreme end OF
Long Island and is declared to be an
excellent spot. The hotel is capable OF
accommodating $50 guests. 1t opens for
the Summer season about the middle
OF June. but would be thrown open ear
lier this year should the local bankers
decide 20 meet there about the second
week in June
1t may be an unusually difficult mat
ter for the committee TO decide this
year where TO go. The Homestead al
Hot Springs always makes a powerful
1y1Fap1f thu tiy HC-af q White Ci1tylftflr
w. Va. is available at the time the
convention will be held and the Cham
berlin-Vanderbilt at Old Point Comfort
viii be completed in April and be ready
for occupancy By the time the WASH
ington bankers are ready for their an
nual trip. The Virginia Bankers AsSo-
citation has held more Of ite conventions
AZ Old Point than al any other place,
il being their opinion that there Is no
other place quite its equal.
No doubt other places viii come In
for serious consideration before the
committee makes its final decision.
Local Securities Strong Today.
Securities on the Washington Stock
Exchange opened the week at high
prices. Peoples Drug Stores preferred
again sold at l23i2. Norfolk IL Wash
305, Potomac Power per cent pre-
ferred sold at ll2l.. and the 5i2 per
cent stock at i02ia.
Thirty-three shares OF Washington
Gas sold al 3sis, and Is Of Mergen-
thaler at i09 Federal Storage sold a.
I07, National Mortgage 4, Investment
preferred at 5as. and 50 shares Of Bar
Der &, Ross at "a.
Only one bank stock appeared on the
board, Fecerai-Amcrican National SELL
ing al 3si. Bond trading was confined
10 the Washington Gas issues, the series
A bonds bringing 1862 and the r bonds
changing hands at i09.
Heard In Financial District.
The Corcoran Ftre Insurance Co. has
declared an extra dividend Of S per cent
payable On February To stockholders oi
recorc On January 10.
An extra dividend of 2 per cent has
been declared on Peoples Drug Stores
preferred stock, payable on February II
Oh stock u record February /.
The Washington Loan IL Trust Co
pays 3 per cent regular dividend and
per cert extra tomorrow.
Eugene r. Thompson. head VI the As.
ISOLATED GUyck Exchanges mas gone u
New Orleans 10 attend meeting Of tht
lizard of governors and make an ad'
dress
Leroy A. Mershon. for the past II
years secretary of the trust company di.
vision u the American Bankers Assn
CATION. has been made vice president o
ne tnIted States Mortgage IL Trust Co.
New YORK.
JheAter Merger Completed.
THE merger of the T. r. Keith Cor
tr)Fatiop and other Keith cofnpanie
H!th the Crp!eun Circuit has isefi
cpnplcd aHd includes public offer
ing II $1,000. 900 VI convertible pre
teffed stDck
Capitalization of the new corporation
IN ADDITION ~ LIE preferred stock
%hRh VII! bs convertible at the rat
! of osIs share for three III common, WI
/ comprise 1888 900 of per cent deben
! lures and 1000 900 authorized share
! ri cDtnH3Dn suJck, 100, ,i04 of Wnlcl
: VIII EyYfss@GIIIg fIs outstanding