Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-15
BANKERS SEEKING
TO AID INVESTORS
Financiers Study Affairs of
Bond Company at Meet
ing Held Here.
BY EDWARD C. STONE.

W. = ACV &NotAOAaA oaAAA Va AIklCdKO HIC
former president of the American
Bankers Association, presided at q
meeting at the Maynower last night
called to consider reorganization of the
properties OF the American Bond &
Mortgage Co. In recent years the COM
pany, which has its home office In
Chicago, has underwrittsn large mum.
Der OF transient and resider tial hotel
properties, but due to overbuilding and
general decline in rentals the officials
state that the burden has become toe
heavy IN some cases and the issues
have defaulted. It was for this reason
that special committee vas formed to
work out plans for relief of the bond
holders, OF which there are some IS 600
Bankers stated after the meeting that
1t Is hoped that in the next few months
about 100000 can be realized to be
applied TO the relief of the investors.
1t Is also expected that further amounts
can be raised at later date. Arthur
w. Draper, president of the company,
was present and explained the present
status of the company's affairs In de-
tail. In addition to Chairman Halle
wood, other bankers at the meeting
included:
Joseph E. Otis. president Central
Trust Co. of Illinois; Dayton Keith,
vice president, National Bank of the
Republic, Chicago; Frank w. Blair,
chairman of the board, Guardian Group
Banks Of Detroit; e. X. Hallett. chair
man of the board, National Bank Of
Boston; w. j. Sugden, president, Sug-
den Gable Co., New York and Boston;
Frederick @. Currey, vice president,
Bank of America, N. A., New York;
Wallace T. Perkins, vice president,
Chatham Phoenix Bank, New York;
Holman D. Pettibone, vice president
and trust officer. Chicago Title and
Trust Co.
The bankers held another session this
forenoon, at which they considered fur
Their details regarding the plans on
which they are working.
Natural Gas Due Here January 1.
In letter Just forwarded to share
holders In the Columbia Gas and Elec-
trio Corporation. President Gossler calls
attention to the contracts which have
recently been made to supply natural
gas at wholesale to the Washington
Gas Light Co. and to the gas plant
ut York, Pa.
This viii be the first section, says
President Gossler, OF q high pressure
main pipe line system planned to be
completed next year from the gas fields
in Kentucky and West Virginia to the
Eastern seaboard. This new line win
supply the intervening territory in
West Virginia, Virginia and Maryland,
and supplemented by the Southern
Pennsylvania lines, will make available
the great natural gas resources OF Co
lumbia system to the large industrial
and domestic markets along the East
ern seaboard.
The quarterly dividends of $50 per
share on the cumulative 6 per cent
preferred stock, series A; $1.25 per
share on the cumulative preferred
stock, per cent series, and so cents
per share on the no par value common
stock Of the corporation were paid
today.
Details of Insurance Report.
New life insurance production in Oc-
tober dropped 1871 per cent below the
amount for the corresponding month
last year. bringing the cumulative total
of new business under the 1879 figures
for the first time since January. The
decrease in the aggregate for the first
10 months Of 1880, as compared to 1929,
Is IL per cent. Industrial insurance
gained Ia per cent last month over the
october, 1929, figures. The cumulative
total of this class for the first 10 months
Of 1880 is 0.O4 per cent below the
amount for the first 10 months of last
year as shown by a compilation of the
Association Of Life Insurance Presidents.
Fer october new ordinary insurance
of these companies amounted to s61o,-
$4,000, against SLOT ,478 900 in 1928
decrease Of l2.4 per cent. New indus
trial insurance amounted to $243, 779,-
900, against $240,4s9, 900 in 1e29-an
increase of IL per cent. New group
insurance was ISL SIS 900, against $685.
$4,000 last year--a decrease of 81 1 per
cent. The aggregate Of all classes for
October Of 1880 was $9i4s 600.
For the first 10 months of this year.
new ordinary insurance amounted to
&7.l7l ,606.O00, against $7,256, S35 900
during the corresponding period Of last
year. New industrial insurance was So
4lS.S45,0o0, against $2.4l4.B66, 600. New
group insurance was 500. 32T 900.
against $3.50, $50, 000--a decrease Of SO
per cent. The total Of all classes writ
ten during the first 10 months Of 1880
was $l0,467, Ts0, 900, against $l0,00e,.
ool,UOO during the same period Of 1929
decrease Of IL per cent.
Land Bank Issue Coming.
1t is reliably reported that Federal
Land Banks plan an issue Of short
time bonds suitable for banks as well as
individual investment. The issue viii be
for $2o,ooo,000 and formal announce
ment probably win be within q few
days.
A canvass of dealers, which was made
In anticipation of the issue indicated a
demand larger than expected and on re-
quest of underwriters the total was
raised several million dollars over the
amount originally contemplated.
The last issue Of Federal Land Bank
bonds was in the Autumn of 1929.
These were 30-year bonds, callable in
10. The new issue, says the Wall Street
journal, viii be for a much shorter
period and terms and conditions will
favor banks as well as individual in
Yestment.
1t is understood the rate win be be-
tween per cent and per cent on the
new issue.
Insurance Bank Meeting Planned,
John H. Snyder. president of the Dis
trict Of Columbia Life Underwriters
Association, announces that arrange
ments have been completed for a Joint
meeting OF the Life Underwriters Asso-
citation and the f1duciary section of the
District Bankers Association The
meeting will take place at the willard
on Saturday night, December 6, and
Gilbert p Stevenson, president OF the
trust company section of the American
Bankers Association, win be the guest
speaker. The airn of the meeting Is
TO bring about closer cooperation be-
tween insurance men and trust officers
OF the banks and trust companies.
VAL UABLE COPPER MINE