Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-05
T. H. SMITH CO. BOND
HOLDERS UNITING.
Protective Body Is Named by
I 0ut-of- Town Owners of
Concerns Securities.
BY EDWARD c. STONE.


streets northwest, has been designated
aS q Sub-depository for these securitie!
IN Washington.
In the circular the members Of thu
committee state that large number o.
holders of the bonds have asked then
to act for the protection of the inter
eSts of such bond holders and goes or
to state that the members of the COM
mittee have agreed to act due to the
following reasons:
81. Bondholders are widely located
throughout the United States and there.
fore can not effectively protect theil
interests except by acting in concert
with each other, through a committee
duly appointed for that purpose.
''2. Legal proceedings have been in
stituted against the company and its
principal officers and directors in Wash
ington, D. c.; Wilmington, Del, and
New York, in which charges of waste
and other acts of Encouragement are
made, and for the appointment of re-
ceivers.
So A suit has been instituted against
the company by the attorney general
Of the State of Delaware, to forfeit the
company's charter.
"a. The F. H. Smith Co., Inc, has
been temporarily enjoined from the sale
Of bonds secured by certain properties
in Buffalo, New York, on an applica-
ton made by the attorney general OF
the State, under the Martin act.
"5. Other legal proceedings have been
instituted against the company and
several of its principal officers and di-
rectorS"
Protective Committees Personnel.
The circular further states that the
members of the bondholders' protec-
AN1I
BoSkey, Schiller, Marvin & Serling,
IL West Forty-second street, New York,
N. Y; Representative T. Allan Colds
borough of Maryland; Robert H. Nc
Neill, Washington, D. c.; Charles D.
Newton, chairman, GeneSco, N. Y;
Eric Fisher Wood, Pittsburgh, Pa;
james l., Malcomb, Catskill, N. Y; A.
NJ. Fromberg, New York, N. Y; John
j. McDevitt, jr., Philadelphia, and
Herbert L. Davis, Washington, D. Q.
Urge Prompt Deposits.
The members of the committee urge
prompt depositing of the bonds and an
nounce that the principal depository is
the Broadway National Bank & Trust
Co., 26I Fifth avenue, New York City,
but the bonds may also be deposited with
the Fidelity Trust Co. of Pittsburgh,
the Aldine Trust Co. of Philadelphia
or the washington bank already mem
toned.
The banks will issue negotiable re-
ceipts to depositing bondholderS and
the committee says that depositing
bondholders will be kept informed of
matters affecting their interests. In all
such cases a certain percentage of the
bonds have to be deposited before the
committee can take any definite action.
While the majority of these bonds
are held outside of Washington, many
local investors were consulting bank
ofncials today regarding the best course
to take in the matter Some were adj
vised to deposit them, while other bank
ers expressed the belief that it would
be wiser to hold them until maturity.
Insurance Men View Business.
An attempt to get fair view of the
outlook in the life insurance field dur
ing 1880, made by the editor of Dia-
mond Life Bulletins, shows an interest,"
ing diversity of views. Questionnaires
were answered by $50 insurance leaders
While the answers bear largely on life
insurance, yet they reflect their views
on general business.
In spite Of the stock break a major
1ty of the agents expressed the opinion
that it will be easier to sell insurance
this year than last. The belief was ex-
pressed in go replies that the market
break would have no effect on the in
surance business, 120 others said it would
slow 1t up, while 296 look for an in
crease.
Some officials said they felt confident
over 1890, but at the same time showed
a 'whistling = to : keep-up-your courage
attitude" Those who were depressed
said this depression was caused largely
by local conditions, poor crops, lack of
work in factories and mines in sections
usually dependent on single industry.
Some agents think they will have to
work harder to sell the same amount
Of insurance as last year, while others
propose to put more study into the
methods used, expecting more business
IN large policies and less in those of
$1,000 and under.
January results already have been an
nounced, showing a gain in life in
surance OF 5 per cent for the whole
country, compared with January, 1929.
New Firm Opens ONCE Here.
Announcement is made today Of the
formation Of the firm of Lydon, Diem &
Co. TO transact a general investment
banking business in high-grade listed
and unlisted securities.
Ofhcers Of the new firm are: Frank
c. Diem, president. formerly assistant
vice president of the Liberty National
Bank of Buffalo; Joseph M. Lydon. well
known in Boston investment circles fol
q number of years, vice president, and
Alfred G. Nelson of Boston, assistant
treasurer and cashier.
The firm has opened offices in the
Washington Building in this city, Buff
falo and at so Congress street, Boston
z. Joseph Aronoff, for IL years secre.
tary and chief clerk Of the Fedora
Board for Vocational Education, viii
manage the Washington office.
Bankers Publicity Committee Meets.
The District Bankers Association
publicity and press committee held it
first meeting yesterday afternoon a
headquarters in connection with tn
coming annual convention, to be hell
this year at Asheville, N. G. Chairman
Charles H. Doing presided. The bfs
methods OF calling the attention OF tn
banking fraternity to the wonderful
scenic attractions of Asheville. as vel
as to the program, sports, entertain
ment and other special features, wer
discussed at length.
In addition to the chairman, the 9th
er members of the committee nclud
Eliot H. Thomson, Washington Loan
Trust Co.; Robert L. Father, Ameri
can Security g. Trust Co.; A. o. Dooley
FederaI-American National Bank; Rich
ard A. Hatton, Thomas M. Cahill an
z. G. Stone. George o. VaSs, chairman
Of the general convention committee
vas present and spoke most enthusiasts
tically Of the outlook for the June gath
ering.
1t is announced that the specia
train will be divided into two section
this year as lighter Pullman trains ca
be handled with so much more comfol
to the passengers. Each train will hav
dining and club cars and will leave her
around instead of 8 o'clock in tn
evening.
Today's d. C. Exchange Trading.