Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25
Business News
in
Retrospect
Some Washington Secnri-
ties Have Shown Signs
of Weakness, Due to
Shrinkage in the Earn.
ing Power of the Com
pdnies Involved.


The Senate Of the United States Is
opposed to a merger of the street rail-
ways of the District. at least at this
time. and with adjournment but few
DAYS away there can be no hope Tor
the measure at this time.
So far as the street railways are con-
cerned this should not affect Washing
ton Railway e. Electric Co., as the pre-
ferred shares are assured OF their D
per cent distribution annually, while
the common, with the last reported sale
at $50, is closely held by the North
American Co.
Shareholders in the Capital Traction
Co. have about given up hope OF being
able to obtain consideration from Con-
gress or the Public Utilities Commission
and are hoping that the courts Will
come to the aid of the carrier. the
directors have gone about as far as they
can on the tapping of their surplus to
help pay dividends.
For many months earnings nave been
showing more or less severe losses.
March figures have Just been given out,
with loss of $4,000, the net being
but $45,630.
ANY change for the month of April
would be a understanding less-for
there are several cab companies now
doing business on the basis of 35 cents
anywhere in the city proper"
Agreement Seems Reasonable.
An agreement in Congress for the
control Of the taxicab companies by the
Utilities Commission and for service
charge fair to all carriers has been sug-
gested and would be fair to the street
car properties.
Capital Traction stock is still owned
very largely in this city, by Washing
ton people, who for many years have
found 1t a splendid investment, but the
intensive competition of low-priced used
cars, down to $25, carrying several
workers to and from their jobs, and the
higher-priced car competition has cut
their earnings under dividend require
ments at present rate.
There is no longer any question but
what a cycle Of business depression is
having its effect all over the country.
April earnings of corporations continue
to show impressive losses. dividends are
being cut, while financing plans con-
tinue to provide for many new issues
of securities.
Mergenthaler has not cut its regular
dividend, nor Is there any probabilities
that 1t will, but 1t has taken the pre-
caution to clip off the IS cents a share
extra which 1t has been paying for some
months.
The directors and officers probably
feel that any corporation with clean
slate. without bonds, debts to banks or
plasters on new property, and, in addi-
ton, over a million dollars in cash. Is
doing we'll enough when 1t pays 6 per
cent sans the extra.
It is a fact that the bankers of
Washington would be glad to keep
their funds employed these days at
per cent. So close is the margin of
profit that many banks will find it hard
to earn interest rates.
1t Is Hard to Believe.
There is not banker in this city
who would have believed it possible If
Col. Robert Newton Harper had not,
over his own signature, admitted that
he had actually sold the control, most
of his stock, in his pet, the District
National Bank, sired, nursed through
its swaddling age, its policies fought
for with bank examiners, housed and
the housing enlarged-all by Col. r. N
Harper-until it reached the age OF
manhood, then watched over closer than
ever to its great success.
One month is the longest time that
Col. Harper has vacationed In the So
years of his busy life and 1t is much
more than probable that he was busy
with bank affairs half of that time OF
else had some public project in the in
terest of the people on his mind, look
ing after the installation of a President
OF the United States, building an audi
forum. triumphal arch for our SOL
diers to parade under or some other OF
his numerous efforts for Washington
He never failed.
Frequently in the past few years there
have been rumors of merger between
the District and the Commercial Banks
Those acquainted with conditions did
not believe q merger possible so long as
Col. Harper and r. Golden Donaldson
remained at the heads of their respec-
tive banks.
They are both out now and one never
knows what may happen in times like
these
Nothing that Col. Harper could dc
would create greater surprise than his
action in selling out. 1t certainly re-
quired plenty of money to pay for the
stock the colonel has or will turn over
to Mr.. Evans and his associates.
Col. Harper retires with the warm
friendship of the banking fraternity
His directors are very loyal to him. II
he really does take a rest, much needed
and which he promises himself, he will
have the kindest thoughts and best
wishes of his friends-but this is an
other point on which these self same
friends are skeptical.
As to Small Loans.
The United States Senate actually
considered the question of enactine
legislation that would put the Treas
ury in the small loan business. How
ever, there were those wise enough to
kill the proposition.
Congress has forced the pawnbroker
and his per cent per month out of the
corporate limits of the city. Small loans
without security is but an opportunity
for trouble. Character loans may be
obtained at many Of the banks through
the establishment Of an acquaintance
properly introduced and your references
presented.
Unsecured loans depend on the ability
OF the maker Of such instruments to
meet at maturity; the willingness to
iiquidate promptly. Small loans as a
rule depend on continued employment
and non-interference with wages.
1t is fact that one can make small
loans. if half way decent. easily enough.
But every day victims of this method
are paying pawn broker rates of in
terest.
If you want $500 you may borrow it,
If you have good reputation and job,
by agreeing to pay these charges. First,
6 per cent per annum on the entire
amount for one year, interest payable
in advance and deducted from the prin-
cipal before payment is made, plus $40
for investigation plus an indefinite sum
for your insurance policy to insure pay
ment of the loan. Advance charges
amount to about $45 on a $500 policy.
Midway in the life of the note the
maker, if he lives up to his agreement,
has returned half of the net sum loaned,
but he receives no rebate for the in
terest on the first $3.50 taken out at the
time OF signing. Likewise there Is no