Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-10

Sons of the American Revolution and
the American Institute of Mechanical
Engineers. Incidentally, he holds the
rank of lieutenant colonel in the Ord
nance Officers Reserve Corps and has
contributed articles to the journal of the
Ordnance Association.
D. P. Gaillard, the other director
elected yesterday, was a former partner
in the investment and brokerage firm of
John L. Edwards & Co. He is a gradu-
ate Of the Massachusetts Institute of
Technology. class of 1911, and is a mem
Der Of the Chevy Chase Club, Army and
Navy, Riding and Hunt and Metro
politan Clubs. Other directors in the
storage company are E. K. Morris, Rob-
ert B. Hall, James M. Johnston, Harald
N. Marsh, Charles p Stone, Homer L.
Kilt and H. Randolph Barbee.
President Morris announced that the
addition to the company's plant at 1907
Florida avenue is rapidly nearing COM
pletion and will be ready for use in
the early Spring.
The regular quarterly dividend of So
per share on the preferred stock of the
company was declared yesterday, pay
able January Is to shareholders Of
record on December 81.
Board Rules on Loans.
In answer to an inquiry as to whether
1t would be illegal or unethical for a
national bank to borrow Government
securities from its trust department for
the purpose of obtaining loans thereon
at Federal Reserve bank, the Federal
Reserve Board has ruled that such prac-
tice would violate not only the provisions
OF the Federal Reserve act but also we'll
established rules of equity Jurisprudence
The Federal Reserve Board makes the
following statement: I'm the opinion
OF the Federal Reserve Board such
practice would be both illegal and I'M
ethical. 1t would be illegal because it
would violate that provision of section
1l(k Of the Federal Reserve act re-
quiring national banks to Segregate all
assets held in any fiduciary capacity
from the general assets of the bank, and
because 1t would violate the we'll eStab-
lished rules of equity Jurisprudence for
bidding trustee to use trust funds or
assets for his own benefit"
Mergenthaler at New High.
Mergenthaler Linotype scored another
new high mark on the present move
when it sold on the local exchange to-
DAY at lot, ex-dividend. 1t opened at
that figure and closed at 1865.
Potomac Electric Power per cent
preferred stock was the most active
issue on the board. 1t opened at 108
and closed at 1924, the days turnover
being los shares.
Washington Railway & Electric pre-
ferred sold at IS. District National Sc
curttieS preferred at 95 and Lanston
Monotype at los. Other prices were
little changed. There was more activity
in the bond list, recent levels prevailing.
American Stores Report.
The American Stores Co, which has
20 stores in Washington, reports No.
vember sales at $ll ,522l39, in COMPARE
son with Sl0,990,60l a year ago, q gain
of 1881 ,538, or 483 per cent.
Sales for the first eleven months Of
this year amounted TO $l3O,208, 297,
compared with S125,297129 in the COR
responding period last year. This is an
increase in sales of S5,O8O,297, or 406
per cent.
Directors of D. Fender Grocery Co.
which has many stores in Virginia, have
declared an extra dividend of 25 cents
per share on the class B stock in addi-
ton to the regular quarterly dividend
OF Is cents per share Dividends will
be- paid January l. 1880 TO stockholders
Of record December 16, 1929.
Cleaned in Financial District.
President Hoover, Secretary Mellon
and Gov. Young of the Reserve Board
sent special messages OF sympathy to
MRS. William Peter Hamilton, wife of
the editor of the Wall Street Journal
VINO died yesterday
The Federal Reserve Board an
nOunceS that the Atlanta Reserve Bank
F2s established the rediscount rate at
-. per cent.
Local bankers continue to report in
crcases in new members in the Christ
mas Savings Club and in the amounts
being subscribed.
T. Hunton Leith and James A. Soper
will attend a forum meeting of the
Philadelphia Chapter. American Insti-
tute of Banking, tomorrow evening.
Plans are being laid for two important
forum meetings for Washington Chap
Ger early next year
The Associated Gas e. Electric Co
Ga> extended 10 January Is rights to
subscribe for So Understanding allot-
mont certificates.
A. W. Miller, division passenger agent
Of the Baltimore g. Ohio at Toledo. has
Hsen appointed general Eastern passen-
SeS agent at New York City.