Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-29
MARGINS REDUCED
IN BROKER OFFICES
Requirements Cut From 90 to
rs Per Cent Today Because
of Improved Conditions.
BY EDWARD C. STONE.

Il
houses by spectators and investors 10
see the opening of the New York Ex-
change today was greater than it was
during the $4,000, 000-share day last
week
Long before the quotations began to
flicker across the transluX and the roor,
attendants started to post the prices on
the boards the seats were all taken.
every inch of standing room was in use
and people we're standing at the en-
trance waiting for enough traders to
come out to let some more get inside.
No such interest has ever been dis
played in the broker offices in this city.
On the $4,000, 000-share day many peo-
pie did not know what was going on
until the close of the market or near
that time. But yesterdays open break
and weak closing indicated another SELL
ing wave at the opening today, and
everybody holding stock. or being sold
out on lost margins, was present to see
what might happen.
One local brokerage house got a mes
sage shortly after 10 o'clock, saying:
This was probably the worst opening
in the history of the New York Stock
Exchange, especially after such vicious
declines. Rally seems imperative
The quotations showed both state
mentS to be true. Just before the open
ing I'D received here said there were
nothing but selling orders on the floor
in New York. An hour later tremen-
dous buying orders were being poured
into the market. 1t was also stated
that call money would open and remain
at per cent during the entire session.
Margin Requirements Reduced.
Early in the day George A. Garrett,
resident partner of F.. B. Keech g. Co.,
with Offices in the Metropolitan Club
Building, announced that his firm had
reduced margin requirements from 40 to
IS per cent because of the improved
market conditions"
This, Of course, was an extremely i'm
portant move and one which will be
taken by brokerage houses all over the
country-in fact, already has been taken
by several other firms. Margin require
ments have been 40 and so per cent
for many months, bei.-g steadily ad-
vanced as the stock market climbed
higher and higher. The fact that ex-
pert brokers now believe stocks are
down where Is per cent margin is
ample will mean that hosts of stock
buyers who are temporarily out Of the
market will go back in.
Most everybody in the boardroom
today had buying or selling order II
his hand. It was evident that great
many people were anxious to take ad-
vantage Of the bargains" in gooo
stocks as soon as they believed prices
were at or near the bottom. The cola
versation il the broker Offices and OH
the street indicated many severe STOCK
losses locally.
Brokers looked tired and worn today.
There has been no such thing as
regular hours for them for more than
q week. Local bankers also have been
working exceptionally hard keeping the
usual close check on their loans ana
giving an extra amount of financial
advice. In the broker houses here
perhaps the most striking feature OF
the deadly sessions is the Eumber OF
women who frequent the boardrooms
eager to get the latest quotations ana
market gossip. In the old days one
was shocked to see a woman IN
broker office. Today they are constant
attendants, ever having their own quo
tations boards in some ofhces.
- Local Securities Selling OF.
The New York market break got to
the local stock exchange today for the
FIRST time.
Capital Traction opened at go,
dropped to n and closed at 1872. The
days trading in this issue totaled $50.
Mergenthaler Linotype sold at 101
and Lanston Monotype changed hands
at 1914. Several other issues on the
Riggs National opened at $40 and
closed at $50 on very small turnover.
Several other bank stocks were dealt In,
some revealing lower quotations.
Bonds were active, with only slight
changes in recent quotations. The low
er prices in the stock division were said
to be due to selling to protect securi-
ties on the New York Exchange which
are held locally.
Transactions were unusually heavy.
Bankers OF to Convention.
Bertram Chesterman, president of the
Morris Plan Bank, in this city, will at
tend the convention of the Financial
Advertisers Association, which opens
four-day session in Atlanta tomorrow.
Robert L. Father, assistant secretary
of the American Security g. Trust Co.,
is also to attend from Washington, as
will Miss Frances M Pearce of the new
business department of the Federal
American National Bank.
AS already noted, Eliot H. Thomson
of the Washington Loan & Trust Co.,
is on his way by motor to the same
convention. John Poole, president OF
the Federal-American National, hopes
to get away for the closing sessions.
Financial advertising experts from all
over the country will be present and
a most instructive program has been
arranged.
Heard in Financial District.
T. Hunton Leith, assistant cashier,
Security Savings g. Commercial Bank,
and national executive councilman OF
the American Institute OF Banking, at-
tended a recent banquet given TO m
stitute group study classes at Fred
erick, Md, by the Maryland BANKERS
Association.
Net income of Southern Railway Co.
for nine months ended September 3d.
1929, is estimated at $13,891 900 after
taxes and charges, equivalent after al
lowing for dividend requirements on
5 per cent preferred stock to $8.96 a
share earned on 100000 shares OF
common stock This compares with
$l2,342,000 or $7.76 share in same
period of 1928.
Estimated net income for September
was 81, 729 900 after taxes and charges
against 81 $3.50, 900 in September, 1928.
THE opportunity to buy stocks at
bargain prices does not come very
often-about once every five years--ac-
cordins to one economist. Last Thurs
day was the big bargain day." says the
Wall Street Journal, but few were able
to take advantage of 1t, as the dips ana
rallies were too fast to enable one to
buy at much lower prices than now
prevail. But there are many stocks
that are still selling at bargain prices.
They may go a little lower, but in the
long run they will sell higher. They
are cheap from the viewpoint OF earn
ings as well as yield. The problem is 70
ea1na NI4o .trNAf ctn