Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-28

Old B. F. Keith
Corporation for % Roland s. Robbins.
years, working I'M
der the direction of E. F. Albee. Com
ing here in 1918, he had charge of the
local Keith Theater until a year ago,
when the Keith interests were sold to
another amusement company
While managing the local playhouse
MI. Robbins had an active part in many
civic and charitable campaigns. Some
very large sums of money were raised
in Liberty bond. war savings stamp
and Red Cross drives, which we're car
ried on in Keiths and other local the
atcrs. Mr.. Robbins was chairman Of
several of these campaigns.
The newcomer into the brokerage
business is q former president of the
Washington Rotary Club and is prom
inent in Masonic circles. He enters the
financial district with an unusually
large number of acquaintance. and
also Just after one of the most feverish
periods ever experienced by brokerage
houses all over the country.
Personnel Is Merger Problem.
"Not the least interesting of the
MANY problems arising from bank mer-
gers Is the one relating to the effect on
the personnel of the merged bank" says
the Current Bankers Magazine. Where
the consolidation takes place on equal
terns-Where there is a union OF banks
each substantially strong, instead OF
the taking over Of weaker bank by one
larger and stronger-thiS question may
not be of much Importance. But when
a small or weak bank is absorbed by
one that is big and powerful, the mat
ter is one of supreme concern to the
officers and employees of the merged
bank Their status can never remain
quite the same. officers will have, 'as
a rule, less authority, and employees are
liable to be denoted. And as one OF
the objects of consolidation or merger
is to reduce operating costs, the least
useful portions of the staff taken over
will be dropped in the course of time
This will be true more especially II the
consolidated bank fails to maintain the
volume of business of the combined IN
situations or to increase 1t.
There does not appear to be avail
able sufficient information on this sub
ject to warrant the expression of an
opinion on what will be the outcome
OF the consolidation movement in this
respect. But one may safely hazard
the guess that, as a rule, the officers
ami employees of merged bank may
expect to sustain loss of prestige and
possibly of income as well.
MAIN Reasons lot McfBCTS.
sAnother phase of the matter pre-
serits a more favorable aspect. Grant
| ing that the absorbing bank is the
stronger and better managed, the per-
! SorlneI taken over will function in an
atmosphere better calculated to develop
! expert banking than that to which they
hare been accustomed
'ManifeStly, the main considerations
relating to bank consultations are those
ha{ing to do with profits to the share
holders and service to the public. The
expectations are that profits viii be in
creAsed Such expectations would seem
to rest upon reasonable ground, though
here also the actual result awaits
further experience. 1t has been well
said that the big bank must continue
to give the required public service, for
this is the main source OF profits.
1.-The two considerations named out
weigh the mere personal status OF OH
GERS and employees of an absorbed bank,
but it will be interesting to note the
effects of the consolidation movement
upon the personnel Of the latter never
theaeSs A mans Job is something in
which he rightly has a deep concern"
The Bankers Magazine views are OF
particular interest to Washington, where
II is commonly believed that proposed
mergers might have. gone through had
it not been for the problem of taking
care of the official personnel. If the
merged bank takes over all the officers
of both banks on the same footing the
expected ECONOMICS are lost in the pay
ment of higher salaries than the new
institution can stand.
Fair Trading on Exchange.
Trading was fairly active on the
Washington Stock Exchange when the
weeks business opened today. Bonds
we're again in quite good demand, al
though there was less buying than on
Friday and Saturday.
Bank stocks appeared on the board
in several small lot orders and at re-
cent price levels, or a bit lower.
Twenty-Five shares of Professionalism
National sold at 800. A five-share lot
of American Security & Trust came
out at ago and six shares of Merchants
Bank & Trust Co. stock changed hands
atr150
Eve shares of Union Trust Co. regis
tered 800 and a single share of Riggs
National came out on the board at 581
Capital Traction opened lower. SELL
ing at 80 and closing at 81. The days
sales in this issue amounted to 10
shares, all in small lotS.
Heard in Financial District.
william C. Johnson assistant to the
president of the Federal-American Ma
tional Bank, was back at his desk
today after a three-week vacation
passed in the Blue Ridge and ex-
tensive motor trips both in Maryland
and Virginia.
Edison B. Olds, treasurer of the Union
Trust Co., has returned from his an
nUal vacation. which included visit:
to Atlantic City and New York
Eliot H. Thomson of the Washington
Loan g. Trust Co is on a motor trip
to Atlanta TO attend the annual con-
vention of bank advertisers.
Southern Railway net operating In
come, $2,729,489. against $2,650,79l IL
September, 1928; nine months, $22,
S9i.062, against $21 ,026524.
September net operating income o
first 81 railroads reporting was $50,
100000. decrease, 2.8 per cent from
September, 1923.
Senator Norbeck, chairman Of tn,
Senate banking and currency commit
tee, doubts if the King resolution call
ing for an investigation Of the Fedora
Reserve Board and of brokers loan
will be taken UP before the next reg
ular session of Congress.
Views on Market Divided.
Opinion is much divided in the loca
financial district as to the immediat
future of the stock market Investor
ard spectators believe that there ar
some fine bargains. At the same tim
they fear further distress selling in In
readjustment of accounts.
Louis Guenther, publisher OF tn
Financial World, said in New York 10
day that he has perfect confidence tina
the general business situation is SCUM
and that the national credit situatio
is also secure ,"Buy good stocks wit
.iri.an e. r.,,,irrc r,i,f,.irlat and IalaA thni