The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-06-21
+ FINANCE FIRMS
EHPL AIMED
BY EXPERT
81 RICHARD HATT0N

The finance company. develop
hnent 81 ultramodern times Ia.
eaused 4 great deal Of discussion
pro and con. Some rather interest
ing remarks upon this modern IN
stitufion were recently made bs
Ptsilip w. Habernar. vice presi
dent and general counsel OF thu
Gonna ercfals Investment Trust Cor
porakion OF New York, before tbs
forum pf the Pl1ila delphia Chapter
American Institute Of Banking
This discussion isnow published ia
pamphlet form and Is Of very gen
erai interest to members OF the
This creation Of the finance com.
pany, according to Mr.. Haberrnan,
grew out Or the fact that field
apparently existed for service n
which the Open account receivable
could Is made the basis Of credit
BY fgnment without having the
fact Of the assignment proclaimed
70 the ultimate debtor. permitting
the merchant who created the ac-
count to act as agent or trustee
Tor the lender ia the collection Of
the proceeds and their due remit
lance
Auto Impetus
Altheagh the greatest impetus in
the elopnlent of instalmens
financing was received from the
larger distribution Of automobiles
through this means Of credit. tais
tEpe nf banking had however.
grown 20 very respectable proper
TORS = IA earlier date
mcbiIs industry III the past 15 years
81 common knowledge. ri 1913 the
number Of cars registered Ii the
United states was slightly over
1000 900: III 1927 the figure has
risen above 10000, 900 When the
industry oiltgrew It's cash sales
market It met the problem Of dis.
posing of Its production by adopt
ing instalnaent selling The finance
company serEiced the paper that
was created
No student Of the industry doubts
that the tremendous volume Of
motor sales ii recent years has
been made possible by this method
or selling and Financing Figures
indicate that about SO per cent Of
the cars now sold ii this country
are sold this way. The install
than Ia the selling Of automobiles,
hut he aufomObiia industry Is
rightly taken as "a example Of the
full effect which consumer credit
car have ard actually has had II
widening the market Tor an article
OF compare lively large initial cost.
~ Affords the best example Of how
mass production made possible by
instrument selling can effect naffL-
factur1n9 economics which result
in lower prices hereby benefiting
the cash buyer As ven aa the time
buyer.
Handle Big Business
a survey was made last year
Al which data was obtained on
SIS finance companies. These COM
paries III 1926 handled volume
pf paper totaIling three ana one.
third billions OF dollars
There are one or two observa-I
tions that might be made regarding
the cost OF finance service. IT IS
OF course horne BY the purchaser
who seeks the facilities Of time
payment Since the time price
"a usually higher than the cash
price the buyer knows exactly
what ns will have to pay for the
privilege Of making deferred pay-
arlenE No pressure compels him
to buy on time. Nor il he driven
BY necessity to make the pur-
chase. Instalment credit Is sought
BY persons who are free agents,
"a position to weigh the cost
81 this credit iii the light Of their
personal situations and to arrive
at decisions in accordance with their
own interests.
The board Of directors OF the
District National Bank has voted
fhs quarterly dividend OF 2 per
cent due at this time. It Is pay.
able on June 80 to stockholders
pf record on June Is.
The directors OF the American
Security and Trust Company have
declared the regular quarterly divi-
dend OF per cent and an extra
dividend OF per cent. Both are
ySsyaiIe on July 10 to stockholders
Of record on June 80.
The directors Of the National
Savings and Trust Company have
declared the quarterly dividend OF
3 per cent payabls August 1.
Declares Dividend
The Federal-American Company
directors have declared the quar-.
Heriv dividends on both classes of
stock. $3.50 on the preferred and
30 cents on the common. Both
are payable July to stockholders
OF record on June u.
w. w. Spaid, OF William p. Hibbs
Ind Company, is In New York to
attend the meeting OF the board Of
governors OF the association OF New
York Stock Exchange firms, Of
which he is a member.
Westheimer and Company will
open brokerage offices on the first
floor Of the Woodward Building next
Monday. The offices are now being
fitted for a complete brokerage ser.
vice and will be in charge OF Har.
Tner Reeside. who is member Of
the Washington Stock Exchange
and has been prominent in the brok-
erage business here for the past
five years.
Westheipner and Company are
members of the New York Stock
Exchange. Baltimore Exchange, Salt
Lake Mining Exchange. Chicago
Bo1rd of Trade. Cincinnati Stock
Exchange and associate members
OF the New York Curb. They are
correspondents of j. s. Bache and
Harris Winthrop