Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-16

! changing hands at 95. Ten shares of
Railway g. Electric preferred moved at
99is. same as last weeks close. Mergen-
thaler registered light sales at I00Is.
National Mortgage & Investment pre-
ferred was active today, two 50-share
lots selling at 5ss and 100 shares
changing hands at 5i4 Only one bank
! stock appeared on the board. 10 shares
OF Merchants Bank & Trust going at
l55, point above the last sale.
BONDS were neglected. Two $500 sales
| IN washington Gas IS. Series A. were
recorded at l04, as the days session
closed.
Patience Urged by Broker Firm.
F. B. Keech &, Co., the New York
Stock Exchange firm of which George
A. Garrett is the Washington resident
partner, sounds note of caution in Its
latest financial letter. Under the title.
The New School," the latter SAYS:
The new school, which breaches
equities as represented by common
| stocks, and maintains that investing in
bonds and putting ones money I'M saw
| lngs banks is out of date. may be right
but when the income return on the
stocks OF standard industrial companies
is below the current loaning rate, of
money and less than the yield on high
grade industrial bonds. and when mar
ket valuations show from Is to 30 times
! net earnings. we believe 1t is a good time
to leave such stocks alone.
During the war and Immediately
thereafter, when business was generally
artiilcially controlled many maintained
| tnat the law of supply and demand had
neen superseded, but in 1920 and 1921
old Supply and Demand came back
with vengeance
We believe that business is on a
sound basis and that fundamental con-
oitions are generally good, but we further
believe that loans on securities will have
to be considerably reduced and that the
still too high.
Our old-fashioned idea that stocks
should sell at prices In relation to pres
ent and prospective earnings, we feel
VIII some day reassert itself and con-
found the apostles of the new school.
More than ever we believe that this
Is the time TO watch earnings and pros
poets, the trend of money and wall
Street loans and possess your soul in
/ patience"
American Tel. & Tells Net Increases.
| American Telephone 81 Telegraph
Co. reports for six months ended June
80. 1923, net income of $6s,65o, 23s after
charges and taxes. equivalent to S6.I7 4
share earned on 11,Il7.545 average
number OF shares outstanding during
the period. This compares with S63,-
| 1921 or $3.50 a share on i0.S541I
| average number of shares outstanding
| during first half of 1927.
Net income for June quarter was
| $35.164.4l4 after above charges. equal
| to S3.16 share on. ll,il7,545 average
number Of shares outstanding during
the quarter, comparing with S33, ATS
825, or S3.01 share on IL .090,i5 aver
age number OF shares outstanding dur
ing preceding quarter. and S32 ,094 SOS,
or $3.50 share on average of i0963,-
254 shares outstanding during second
quarter Of previous year.
Enthusiastic Bond Club Booster.
Organizer and first president OF the
| Washington Bond Club in 1925. Charles
Carroll Morgan Is still one of the clubs
most enthusiastic boosters. At the re-
cent annual meeting he entertained the
members at his home In Chevy Chase
and shortly before that played an ac.
tive part In the clubs first annual
outing.
The young man entered the invest
ment business in 1919 even before he
was graduated from Georgetown Uni
Versity. During the World War he
served as cadet In the Naval Ayia-
'lon Corps and In 1921, became asso-
ciated with John L. Edwards IL Co. as
manager OF the bond department. When
Lne EDWARDS firm was dissolved. and the
business taken over by G.. NJ. p. Murphy
d. Co, Mr.. Morgan retained the same
position. later being appointed assistant
resident manager
In connection with the organization
mere several months ago Of an invest
ment trust company Mr. Morgan was
eaecIeo wee president, treasurer and 4
u o he Is member OF the
metropolitan and Chevy Chase r,,rhs
and was born In this city in 1900
Pennsy to Redeem Bond Issue.
IL was announced by the PennsyI.
Vaf1ia Railroad Co. today that the cow
pany viii redeem the OUTSTANDING hal.
ance OF the equipment trust iss,,e ~
lSzV az io5 and interest. beginning to-
Gay. NO more interest viii be uaid
AFTER TINS date. The issue paid f,er
-. ana was put out TO cover the pir-
Federal control 's
The face amount of these certinca,.s
Is S27,260,000. They are redeemahle .,
IV3s representing premium of sa17 .
bSO. In addition. the semi-anntal in
terest coupon, payable July IS 1924
which Is attached. represented a III.
/ sum, so that the total cash payment IN,
the company TO meet will be SEA. ao5 ,efo
Gas Light Dividend Declared.
/ The Washington Gas Light Co ha,
declared the regular quarterly dividenS
of 90 cents per share, according 10 an.
nouncement by George w. WhitwelI
the secretary. The dividend is payable
on Saturday, August !, 10 stockhoIder,
Of record July a.
Gas Light stock has recently d,s.
played considerable activity on III,
local stock exchange. and last weeI
made new high on the present move
1t wound up the week well above 9s
The Utilities Commission Is still a
work on the valuation OF the company,
property. and wide interest awaits thil
report.
Heard In Financial District.
The recently voted quarterly diyiden,
OF . per cent by the Washington LOAF
~ Trust Co. is payable on August i /,
shareholders Of record on July %.
Walter j. Harrison, vice president o
the Commercial National Bank, has re
turned from his vacation which b
spent on a motor trip To New England
Newport and Harragansett Pier bein
among the places visited.
E. r. Rurdette, assistant cashier q
the Potomac Savings Bank is Dassin
his vacation at Virginia Beach and
visit 10 several resorts along the Me-
Jersey coast
Since the controllers last bank ca