Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-01


and sale of bonds ~
and acccptances, Samuel NJ. Thrift.
he said. The price
index of bonds has moved in a most
interesting manner in relation to the
Federal Reserve buying of bonds and
acceptances." To make this more clear.
he traced the Federal Reserve Boards
policy back to 1920 and presented with
this review the curve in bond prices.
Among other factors to be considered
in connection with bond prices, is the
present business recession. DR.. Friday
expressed the opinion that this will be
severe but brief, much the same as 1t
was in 1924. January output was higher
than DEFENDERS, indicating that the
worst may already be behind us, he
said. The reason he believes the bust
ness recession viii be shortlived is be-
cause there is nothing fundamentally
wrong. In amplif1catton Of this asSer-
ton he added:
FIRST, commodity prices did not go
up during the business boom. In fact,
they were actually lower in 1929 than
In 1920 or 1921.
Secondly, there was no ineficiency
in the management and labor in the
matter of cost production.
Thirdly, there was no Tightening of
the fundamental credit situation as re-
fiected by the Federal Reserve Boards
ration"
The meeting was one of the most in
teresting yet held by the Bond Club.
The attendance-S1, to be exact-was
close to the record.
Thrift Unusually Young Cashier.
Samuel M. Thrift, who was recently
elected cashier of the Franklin National
Bank, becomes one ofthe youngest bank
cashiers in Washington. Mr.. Thrift
was born and reared in the National
Capital and has never worked anywhere
else; in fact, has never worked outside
the four walls of bank.
He started his banking career with
the old Merchants & Mechanics Saw
ingS Bank, an institution which several
years ago passed into history. Later
Mr.. Thrift became connected with the
United States Trust Co., afterward
joining the staff of the United States
Savings Bank.
His FIRST position with the Franklin
National was as a teller. Some six
years ago he was advanced to assistant
cashier and promoted to cashier when
the directors organized for 1880. He is
a graduate Of Technical High School.
has a very pleasant personality and
enjoys many contacts in the financial
district. Mr.. Thrift succeeds Vice
President Thomas p. Hickman. who
asked to be relieved of part Of his
duties.
Tax Cut will Help Stocks.
Business profits in 1929 for the sum
total of industrial and merchandising
corporations. railroads and utilities,
should be 10 per cent over 1928 and
the highest ever achieved, even allow
ing for the slowing down in the last
quarter, says the. American Bankers
Association Journal. In 1880 these
profits might very likely recede by 10
to IS per cent.
The cut in the tax rate will allow
corporations to retain 80 instead Of SO
per cent of their profits for dividends
or surplus and thus automatically in
crease the net profits as reported by
over / per cent.
This will increase the earning power
of stocks and the security behind bonds,
both of which should enjoy octter mar
kets this year in view of the lquidated
credit structure and normal interest
rates.
Bankers Hear Routine Reports.
At the meeting of the council of ad-
ministration Of the District Bankers
Association late yesterday, many rou-
tine matters were discussed and some
suggestions made regarding the work
Of the new sections. The committees
for the next annual convention at Ash
vile are nearly completed and will be
announced shortly.
The associations insurance commit
tee will have a meeting next Friday.
Frederick P. H. Siddons of the Ameri-
can Security & Trust Co. is chairman
Of this group.
Many bankers attended the meeting
Of the Operative Building Association,
at 2400 Sixteenth street, last night and
heard an interesting summary of the
present building situation in Washing
ton.
The associations monthly bulletin,
which appeared this week, contained a
summary of the activities in the hnan-
cial district and several recent court
decisions Of importance to the banking
fraternity.
Leaves Banking for Advertising.
Col. z. j. W. Prohitt, for many years
active in the investment banking bust
ness in New York, Baltimore and Wash
ington, is returning to the advertising
field on February l as vice president
Of Dorrance, Sullivan & Co., Inc, New
York advertising agency, and has re-
signed as president of the Investing
Corporation of New York, which Office
he has held since 1925.
Col Proffitt remained in Govern
ment service after the war with the
United States Treasury Department as
executive assistant to Gen. Charles G.
Dawes. director of the budget.
Returning to civil life in 1928 he be-
came manager of the Baltimore district
ONCE of S. w. Straus g. Co, New York
and Chicago investment bankers.
On invitation Of Admiral Leigh c.
Palmer, then president of the United
States Shipping Board Emergency
Fleet Corporation, Col. Proffitt again
returned to public service as Admiral
Palmer's executive assistant at Wash
tngton, with the title Of assistant to
the President.
Mentally Joins Advertising Firm.
Associate Advertisers, Inc, with offices
In the Tower Building, announced to-
day that the firm has enlarged its bust
ness and made James J. Mentally man
ager of a department which will fea-
ture the advertising of public utilities
and allied industries. Mr. Mentally has
recently been connected with the Wash
ington Railway g. Electric and Potomac
Electric Power companies and is well
known in the local financial district.
December profit of American Ice Co.
and subsidiaries was $89, 1896 after in
terest, but before depreciation and Fed
eral taxes, comparing with $15l,022 in
December, 1928.
Net railway operating income of the
Pennsylvania Railroad Co. established
an all-time record in 1929 at $133, 1884,
b26, which compares with Silt, 297 $50 in
1928, with sos, 977, 1903 In 1927 and with
e1o6,423,757 in 1925.
Childs 1929 earnings $2.56 a common
share, against 81 80 q share (including
profit from sale Of Sayoy-Plaza hold
= tngs) in 1923.
seaboard Air Line. which last week
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