Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-16

InArIeS II. HlueS, IT,. s<223&# 2 1tt<z
81 Nassau street, $ 8, 5
New York City, and
Messrs Root, Clark, rr.,. u,.,.os
Buckner e. Ballan- erAs D. hAhie"o0o'
tine, New York, are acting as counsel
for the committee. It Is announced
that the Irving Trust Co. will act as
depository for the bonds, but the COM
mittee does not wish any bonds to be
deposited until some request is made
for them.
1t was stated today that this second
protective committee Is busily engaged
In an investigation Of the 43 outstand-
ing bond issues sold through the Smith
company. The committee states that
each issue will be considered and the
value Of the properties back of 1t be
very carefully studied.
It Is expected that in about ten days
the secretary of this committee will
have complete information on the vari-
Gus issues. In the meantime holders
are advised by the committee members
10 hold their bonds. Naturally the
bonds vary considerably in value and
the committee expects that 1t will be
advisable for the holders of some issues
70 hold them permanently. In short,
they caution holders not to throw over
their securities at any unnecessary sacri-
dce.
This Is the same view as taken by
Washington bankers when the first
protective committee was organized.
Each bond should be judged on its
merits, they said. Recently street
brokers have been offering very low
prices for some OF these issues and ask
ing tenders on others. One of the aims
Of the new committee is to prevent
holders from giving away" their Sc
curities when not acquainted with their
real worth.
Hazlewood Talks on Banking.
"Why Operate q Poor Bank?" was
the subject of an address by Craig B.
Lakewood, former president OF the
American Bankers Association, before
the New Jersey Bankers Association at
Atlantic City today. He declared that
the major problems of bank manage
ment are three: .e4z.
Managing the banks operations.
Managing the investment Of the
banks funds.
Managing the banks new business
activities.
ITO figure costs and manage efficiency
10 merely arithmetic" he said, but to
reduce costs, increase efficiency and
build profits-that is management"
In listing the principles which a
banker must observe If his loan ad-
ministration program is to be sound,
he included the following rules:
/. No excess loans to customers, oft1-
GERS, or directors.
2. No capital loans which enable the
borrower to use the banks demand de-
posits in the permanent capital struc-
ture of business.
8. No loans on second mortgages,
accounts receivable, contracts for serv-
anne 10 ~ mr.
fly upon which actual realization would
be problematical.
e. A refusal to let competition or
the borrower dictate the credit terms.
5. No unsecured loan over $500
without financial statement.
6. Diversihcation Of loans both as to
security and types of business.
Z. Adopt q general policy Of requir-
ing annual liquidation.
.. Review large loans with a dis
count committee.
10. Maintain q consistent follow-up
10 check the position Of all loans from
time to time.
Hamilton ON Bethesda Board.
George z. Hamilton, chairman of the
board Of directors Of the Capital Trac-
ton Co. and vice president and general
counsel of the Union Trust Co., has
been elected o member Of the board
Of directors Of the Bank of Bethesda.
according to announcement today by
the president, George p. Sacks. The
prominent Washington attorney and
business leader lives on the Rockville
pike and the Bethesda Bank directors
were particularly pleased to have him
Join the directorate.
Mergenthaler Market Leader.
Mergenthaler Linotype stock led
trading on the Washington Stock Ex-
change today, 200 shares changing
hands. The stock opened at 1861 for
ten shares. The other 100 shares sold
at 1864, the largest block being 80
shares and the smallest 10.
There were ten 10-Share sales in
Washington Railway & Electric pre-
ferred, the entire 100 shares moving
ct ss1a.
two shares of Capital Traction sold
at TAN, Potomac Power 6 per cent pre-
cent issue at 1864. Peoples Drug
Stores sold at 108.
The regular quarterly dividends have
been declared on both Potomac Electric
Power issues and on washington Rail-
way g. Electric common and preferred
Heard In Financial District.
Subscriptions to the Treasurys new
900, 1000 900 offering of Treasury bills
was nearly three times oversubscribed
The Washington Stock Exchange will
be closed tomorrow and every Saturday
until next October.
Prince g. Whitley, New York Stock
Exchange house, Is soon to open an
ONCE in Washington.
The Richard Hatton Cup Is to BIT Of
fered for 81 holes Of medal play, low
net score, made on Thursday, Friday
and Saturday at the District Bankers
Association convention at Asheville
Chairman Robert 8. Stunz of the sports
committee announced today. The en-
tries for the cup, which Is offered BY
the financial editor of the Washington
Herald, will be open to any one attend.
ing the convention.
william Montgomery, president o.
the Acacia Mutual Life Association, i,
about to take a two months trip, visit.
ing agencies all over the country.