Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-13
|STOCK DIVIDENDS
POLICY CLARIFIED
Exchange Also Goes on Rec,
ord Against Listing Non
Voting Shares.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

NEW YORK, September 13.-Ever
since Prof. William z. Ripley of Har-
ward, published his blast against the
issuing of non-voting common STOCK
the subject has been much discussed.
The New York Stock Exchange
adopted a policy of not listing nom
voting common stock. Since that time
the popularity of non-voting common
stock has decreased.
Now another question presents itself
should stock dividends be included in
the income account of receiving corpor-
atoms? special committee was ap-
pointed some time age by E. H. H. Sim
mons, president of the New York Stock
Exchange, TO determine what the policy
of the exchange should be with regard
to it.
That committee has just reported. 1t
says:
That uniform accounting practice
seems to favor as sound procedure the
ignoring of stock dividends in income
receiving companies"
Nevertheless, the New York Stock Ex-
change committee suggests that no OBJ
lection can be raised to the method by
which Investment trusts, holding com
panies and others account for stock
dividends received by them and not
realized upon, providing there is the
fullest disclosure of the procedure
adopted and also providing these are
not included in the income accounts of
the receiving companies at a greater
dollar value per share than that at
which they have been charged to in
come account or earned surplus account
by the paying companies.
Such policy by the New York Stock
TYnh0nnn NI,{1 hnlVN nlax
fusing situation.
When Secretary Mellon announced
that the $500,000,000 Treasury certifi-
Gates OF Indebtedness. to be dated Mon
day, September Is, and to run for nine
months, were almost three times over
subscribed, 1t showed again that there
is still plenty of money and credit in
the country.
Think of subscriptions totaling ST.
486,000,000! Without any blast of
trumpets or high-presSure publicity,
this was the total sent in to the IL
Federal Reserve Banks.
In 23-line announcement from the
Treasury on Wednesday last, the Sec
rotary announced that all subscriptions
in amounts not exceeding 81 900 from
any subscriber will be allotted in full,
and that the other allottments will be
as follows: Seventy per cent to SUBJ
scribers for over $1,000 to $4,000; 40
per cent to those who asked for over
$4,000 to 100000, 80 per cent to those
who wanted over 100000 to 81 ,000,-
900 and IS per cent to those who sub
scribed for more than 81 600, 900.
In other words, If bank with S.
600 900 to invest. sent in a subscription
for that amount to the Federal Re
serve Bank in its district, it has been
informed by this time, that it will be
able to get only $750,000 Of the certi-
Gates.
And the certificates draw interest at
the rate of only 47s per cent annually.
Banks were the big buyers.
When Premier Ramsay Macdonald
of Great Britain arrives to confer with
President Hoover, 1t will center the at
tention cf the whole world on the ques-
ton of ,:rval reduction.
It's an axiom that If all the nations
of the world reduce ornaments In the
same proportion each would be rela-
lively as strong as before. But the
rub is in getting a yardstick which will
apply to all cases. 1t is said that
there are only score of men in the
United States who can intelligently dis
cuss the relative strength of the Brit
ish and American navies.
Nevertheless, the meeting between
the political leaders OF the TWO greatest
nations of the world Is a powerful in
centive in the right direction.
1t is understood that the President is
anxious to make a greater cut in ma
val armament than the British have
so far suggested.
The fact that the Scotch Labor lead
er, who heads the British government
today, has decided to come to America
is basis for the belief that some definite
plan will be worked out.
1 heard Winston Churchill in Toronto
lately make the statement that 1t was
impossible to find a basis for determin-
ing the naval parity of the two coun--
tries. Each one should build to meet
its own particular needs, said he.
It was evident then that the naval
conference now in process of forming
would never have been called had the
fiery Churchill been in power.
Still, if an arrangement can be