Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-17

in the country. His
subject was Investment Trusts, a
Steadying Factor in the Market"
"At least one-f1fth to one-quarter OF
the genuine American investment trust
capital of approximately $l,100, 000, 600,
said Mr.. Robinson, sis today probably
in the form of cash and call loans. OF
the capital actually invested at the
present time by investment trusts of
the United States, it is certain that
substantially more than 5000, 100000 is
in bonds, and in foreign securities. Elk
Guiding holding and finance companies,
1t is very unlikely that at the most
more than S700,000,00 900 of American in
vestment trust capital is in American
common stocks at this time. The New
York Stock Exchange figures for March
/ showed a total market value of ap-
proximately ST. 1872, 100000.
How absurd it would be to charge
investment trusts with prime respon-
sibility for present price levels is shown
in the fact that the capital they have
invested in stocks in this market is per-
haps l per cent of the total current
valuation of such stocks on the New
York Stock Exchange alone. Moreover.
in what purchases they have made in
Vestment trusts have used comparative
Nv HUE UdIlh quill
loans as they have incurred have been
for the most part only temporary, and
their investments have been largely
paid for out of their own permanent
capital funds.
THE steadying force of these dis
eliminating institutional investors" the
speaker continued, will be more and
more felt if severe price reactions are
experienced in American stocks. To the
large sums now held in the form OF
cash and cash items will in this event.
uality be added the proceeds from liqui-
dation of foreign holdings on the part
of many investment trusts which have
made a practice of buying bonds as
we'll as stocks. and have taken advan-
tage of investment opportunities
throughout the world. Substantial
amounts of capital, not drawn from
the banks or from industry. will be in
vested on major price says in this mar
ket, and in this way investment trusts
will assist materially in smoothing out
extreme fluctuations in security prices.
THE companies best equipped to do
this will be those which look most care
fully to their cash position at this time.
This applies especially to those invest
ment trusts which follow the tradi-
tional policy of diversifying their hold
ings widely and buying internationally
in order to avoid dependence upon the
ups and downs of one market and to
take advantage of the almost infinite
variations from country to country at
the same time''
Manages Riggs Dupont Branch.
Washington has many thriving banks
and the managers of such Offices hold
%enflnlIry ivoY, Mt YoncifinYAc nf
these managers is Ralph r. DePreZ,
who guides the destinieS of the Dupont
Circle branch of the Riggs National
Born in Washington and educated in
the public schools here, Mr.. DePreZ
left George Washington University Law
School in May 1917. in his junior year,
to enter one of the naval aviation units,
serving oversees in ground work both
in England and France. Receiving his
discharge in 1919, he joined the staff of
Riggs. From that time until May, 1922,
he was in the note department of the
main Office.
When the Dupont Circle branch was
established in 1922 Mr.. DePreZ was
transferred and made assistant man
ager. Three years ago he was advanced
to manager, and at the beginning of the
present year the directors elected him
an assistant cashier. To show the re-
Sponsibility resting upon his shoulders
it is only necessary to mention the fact
that deposits in this branch consistently
average over 81 $50, 900, with the volume
increasing.
Manager DePrez is connected with
Chapter, American Insti-
tute of Banking. and incidentally be-
longs to the Phi Sigma Kappa Fra
ternity.
First Convention Speaker.
One of the first big guns in connec-
ton with the coming annual convention
of the District Bankers Association at
Point, Long Island, was fired
today, when the securing of the first
speaker for that occasion was an
nounced by F. P. H. Siddons, chairman
of the program committee. Chairman
Siddons received word from Frederic w.
DEMO of Boston accepting an invita-
ton to address the convention on
June 20.
Mr.. DEMO is vice president of the
Old Colony Trust Co. of Boston, presi-
dent of the Massachusetts Fiduciaries'
Association, and considered one of the
ablest bankers in the New England
He will speak on Present
Methods. of Handling Banks Securi-
tlGo ACCOQlI. j Ills 10 a Pol ~
timely topic right now. as it is so close
ly tied up with the money situation.
And money and credit will no doubt
be among the big things most talked
about at the convention.
The program committee Is particular
" pleased in securing Mr.. DEMO. as he
has national reputation and incident
ally has several personal friends among
local bankers. He was guest at a
recent bankers dinner, making very
brief talk at that time. If the rest of
the speakers are up to his standard
the success Of the convention win be
assured.
Washington Market Quiet.
Trading was unusually dull today on
The Washington Stock Exchange, with
ilninportant price changes. Potomac
Electric Power 5 u per cent preferred
moved at 1914. Federal-American Co.
common at So, Mergenthaler Linotype
at IO7ss and Security Storage at 121.
After call Peoples Drug Stores pre-
ferred came out at 1T. The remainder
Of the trading was in bonds. Washing
ton Gas IS, series A, registered 1929;
Potomac Electric Power IS sold at l07H4
and Potomac Electric Power consolidated
IS changed hands at 1912.
In the unlisted securities department
Chaplin Sacks per cent preferred
stock sold at 1085s. Only two stocks on
The list are now being quoted ex-divi-
dend. Washington Gas and washington
Title preferred.
Heard in Financial District.
Chairman I. j. Roberts reports un-
usual interest in the coming Institute
Forum dinner, at which Undersecretary
Of the Treasury Ogden L. Mills viii
be the guest speaker. Special notices
were sent to all Institute members to-
day.
Security g. Trust Co., will present The
whole Towns Talking" three-act
farce, by John Emerson and Anita Loos,
at the new Mckinley High School to-
night. The play is under the Rirection
of j. j. Hoffman.