Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-21


receive dividends if they exchange their
stock. This is most important. as
| neither class of Southern Diaries is now
paying any dividend return. The letter
says, in part:
The trust indenture entered into by
| directors and officers of Southern
| Diaries at the time the S2.500,000 of
| dehentureS were sold precludes any
| possibility of dividend being paid on
| class A stock for a number of years
and the possibility of ever paying diVl-
| dends on class B stock under the pres
| ent corporate structure Of Southern
! Diaries seems to us almost negligible, )"
| MIR. Kraft states.
The trust indenture provides that
| unless Southern Diaries make net
1 profit of 81 .2O0.O00 per year no divi-
! dend can be paid on the class A stock
| and such dividends as may be declared
| must be made over and above the
! 81. 200, 600 per year Such an earning
| under present conditions is very I'M
| probable, to say the least.
Insurance Convention in Session.
The annual convention of the Ma
, tional Life Insurance Co. is being held
, in this city at the Mayfiower Hotel
! The business sessions opened Monday
! and will be concluded tomorrow About
/ 200 delegates, representing the COM
pany's leading agencies all over the
/ country. are in attendance.
Kenneth Mullins of Chicago, preSi-
dent of National Life. is. presiding at
the main meetings Many important
group conferences are being held, insur--
/ ance problems of national scope, as wen
as matters of particular interest TO TINS
particular company, being Thoroughly
| discussed.
Many delegates are from points on
/ the Pacific Coast, Portland, Greg, being
| especially well represented. The west
ern representatives came from chicago
on a special Pullman train. 1t Is the
| first time the company has ever neld an
annual convention outside OF chicago.
The officials report steadily expanding
business during the past year.
Gov. Seay Comes Into Limelight.
Through his recent warning against
i further expansion of credit. Gov George
]. Seay of the Richmond Federal Re-
| serve Bank has come into the llmelignt
| all over the country. The substance OF
! the letter sent to members OF the FED
eral Reserve banks in this district Is
being printed far beyond the Doun-
daries of the fifth district area. In
Increases in bank loans have been
caused BY loans on securities and real
estate. The situation has forced many
banks to borrow heavily from the Fed
eral Reserve Bank on eligible paper In
order to avoid sudden and severe
contraction OF credit, which was ex-
banded by loans of a character which
are not eligible for rediscount. If the
present expanded condition had been
brought about by orderly conduct of
commercial business 1t would be a dif-
[ ferent matter. but such is not the case.
| "A very marked degree of credit ex-
| pansion exists and that is still going
on concurrently with decrease in the
! gold base. The credit structure, there
| fore is not as strong as it was and 1t
cannot continue TO be weakened by
! further expansion of credit without
penalty One of the penalties is rise
| in interest and discount rates. 1t is
not an artificial situation by any meaGs;
| it is the natural result of acts which
| have preceded It and led up to IT, The
purpose of legal reserve requirements
! is to limit expansion within the bounds
Of safety"
| Washington Gas Stronger Today.
Washington Gas Light Stock showed
more strength on the local Stock Ex-
| change in today's trading The stock
| opened at 937s for a l0-share lot. The
next sale Of 10 shares registered 81,
while another 10 shares closed the mar
ket at 94i2, up y OF point from yes
| terdays close.
Capital Traction came out today at
| I04, the same as yesterday. the turn
over being very light. A single share
Of Railway g. Electric preferred register
ed 80, and 90 more shares OF the same
| issue sold at 99as
In the miscellaneous list Mergenthaler
Linotype sold at 100as, Sanitary Gro
Gerry preferred at 100 and woodward 81
Lothrop preferred at 10. The bond
division was neglected. Capital Traction
S. moving at 10l n and Washington
Gas 6s, Series b, at lO5.
Cleaned in Financial District
President E. J. Stellwagen of the
| Union Trust Co will be back at the
bank the first of next week. The al
/ :erationE are now 50 nearly completed
that he will hardly know the surround
ings.
Eugene f. Thompson senior partner
0f Crane. Paris g. Co. has returned
from a trip TO the Pacific. 1t was the
longest vacation he has taken In years
JOHN p Rd4Eti vi ~. MT Mhi pay
Il Co Is taking his vacation and IL
motoring 10 New England To visit rela-
tives.
George E. Fleming, vice president Of
the Union Trust Co. is planning TRIP
10 Europe, starting early IN September.
Robert r Jones. floor manager oi
Murphy IL Co.'S downtown office, is the
happiest broker IN the city. It's glfl
Treasury Bond Purchases Slow.
Purchase Of third Liberty bonds under
Treasury offer have been rather slow
| These purchases we're at par and l-3.
until August IS and al par and accrued
| interest until September /, buying be
| ing done through Federal Reserve
/ banks The Treasury believes that thu
| small holders Of the bonds remain un
| aware Of opportunity 10 sell their hold
| | inQs The amount Of the bonds puf
chased before the expiration OF tn
/ offer VIII play considerable part in de
| termining the amount OF Treasur.
/ financing on September ID.
Il Commodity Prices Gain.
III Prices Of commodities during tb
i week ended August l8 advanced seven
/ tenths Of ! per cent, according 10 TN
/ wholesale price index Of the Nationh
i Fertilizer Association This Is reVef
| sal Of form from the decline OF IN
i previous FIVE weeks. OF the IA groups
IIS showed advances. ] decline ana
i remained unchanged. The largest ad
II yances we're 8 per cent In cereals
II feeds and livestock. i3 per cent IN tn
Il fuel group, II per cent In fats, I'VE