Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-14

son. ir., vice president of the Securit.
savings & Commercial; Charles F
Jacobson, cashier of the Nationa
Metropolitan; Frank P. Hartman, jr.
vice president Merchants Bank &
Trust Co.; H. T. BiSselle, aSsiStan
cashier Riggs National: j. Damn Faber
auditor American Security q Trust Co.
and Arthur j. Linn, auditor Federal
American National.
Chairman Hoskinson acted as vic'
chairman of the committee during it
lonr and careful consideration of the
credit bureau problem and Is eXcep'
tionally familiar with every phase OF 1t
He has been an active member OF the
--;ankers' Association for years and ha:
:,rved on several other important COM
;-littees. Mr. Bisselle wrote paper or
he subject last year, which won the
Institutes essay contest. and numoel
e the working plans for the new bureau
-e to be based on his outline and study
AS already announced the nureat
-'-aduuarters will be in the bankers
Tices in the Becker Building on +
rect The information to be kept or
Tle will be of a highly confidential
-,ature, aimed to put check on dupli-
ate borrowing and available to the
l,7nks only. In other cities such bu-
I.-aus have proved of tremendous value
-7nkers look for just as good results
acre.
Bank Decision Defers Action.
The United States Supreme Court has
= 1nanded back to a Massachusetts
court for further action the Worcester
',llnty Bank case, which involves con =
nationality of section Of the NC
alden act and which Federal Reserve
o-1cials and controller of currency re-
corded as a serious threat to the Fed
al Reserve system. The effect OF the
.',eision is to postpone final action in
-, case until steps which the court
ems proper have been taken.
The Supreme Court of Massachusetts
i held unconstitutional the section
the MeFadden act authorizing con-
'idations made up of national banks
=. State banks and trust companies 70
Re over trustee and other flduc1ary
J, siness of a State bank. The Mas
chusetts court held that this consa-
:,''ted a change OF trustees.
Supreme Court held that the conSon-
Ted bank should have applied tc
T--obate Court for power to act a
-1,stees, and the case was remanded tol
> ,tion to be taken in accordance witt
sat opinion Chief Justice Taft, who
7dered the opinion. said it was not
--cessarily intended by Congress thai
>cutorships should pass by the merger
* banks and that an executor should be
7ooointed by the Massachusetts, court
When application is made by con-
--idated bank to the Massachusetts,
-..obate Court it would be possible to
ling both the Massachusetts, banking
~ and the McFadden act into
',~rmony.
Chairman McFadden, author of the
- tional banking act, has expressed
i--ret that the case has been prolonged
- feels that State courts, where con-
.7'idated banks must apply for appoint
rent to carry on various fduciary bust
r-ss, are likely to favor the State banks
"As I interpret it, the decision de-
lives national banks of part of the
INT intended to be conveyed to them
'--lder the consolidation and conversion
2tion Of the McFadden act" Mr.. Nc
dden said.
There remains hope, however, he said
- the fact that the case has been re.
7nded to lower court for further
ldingS. The whole proceeding may in
me come back to the Supreme Court
Trading Quiet on Exchange.
Trading was very moderate on the
aShington Stock Exchange today, the
al Street situation perhaps having
tendency to slow up business here
capital Traction figured in a 37-share
rrnover, rs shares selling at 96% and
- rest at 96Ia.
Forty shares of Liberty National
;, nix stock changed hands at 255 and
F"e shares of American Security &
ust Co. appeared on the board al
Y. Federal-American Co. common
ID at so and the preferred at 101 "a
3 shares of National Mortgage &
?vestment preferred came out at So
"a nf Of fn
T.; Guaranty preferred at 7la.
After call, Merchants Transfer &
orage preferred sold at 109 In the
h1nd division Capital Traction SIS led
t"1ding, five sales being made at 97al
'aShington Gas IS, series A, sold al
f02H and Barber & Ross 6I2s changed
:. nds at 95H.
Price Index Lower.
The wholesale price index of com.
oddities declined IL of l per cent
.lring the week ended May II. accord.
g to the index of the National Ferti.
;er Association. Since March thu
'cline has amounted TO "a per cent
Id the index is now 3.6 per cent love-
an for the like date year ago. The
lief. declines occurred in the follow
.lg groups: Grains, feeds, and live
ock, fats. textiles and miscellaneous
ight advances occurred in the fol
wing groups: Fuel (gasoline), foods
I'D metals.
Financial District GIeanings.
At a meeting of the directors of tn
ashington Better Business Bureau yes
rday it was voted that Louis Roths
lid, the director, represent the asSo
alton again this year at the annus
Getting of the District Bankers As
citation at Montauk Point in Junt
r. RothSchild made an address at on
the recent conventions.
President George L. Starkey OF tn
'-ational Bank Of Washington an
RS. Starkey will leave here tomorro
r Today vacation in Virginia. The
i'll motor to Richmond, and later max
leir headquarters at the Chamberlir
vanderbilt at Old Point.
Gov. Roy A. Young of the FEEDER;
>eserve Board returned to Washingto
esterday after about a months trip
ne Pacific Coast. He conferred wit
r'any Reserve Bank officials in tt
Vest
Craig B. Hazlewood, president of tt
.lmerican Bankers Association, M
vritten President Fleming a letter
CONGRATULATIONS on the fact that Il
')cal association is to devote one COZ
,ention session to bank management
re considers this the most vital prof.
en- now facing banking institutions.
The final meeting of the board
Governors for the closing fiscal year
Washington Chapter, American Inst
tute of Banking, will be held tomorrc
evening at chapter headquarters.
The Washington Bond Club has
speciaI luncheon this noon to hear ;
address by Lothrop Stoddard OF Be
ton on England, America and Q
Money"
=