Evening star., 1931-11-29
MergenthaIer Director Likely
to Be Chosen From D. C.
Stockholders.
EXTENSION OF BRANCH
BANKING Is ADVOCATED
Bonds Extra Active on Exchange
Here-Christmas Savings Clubs
Open Tomorrow.
BY EDWARD c. STONE.

Wide interest is being manifested in
Washington in the coming election of q
director to fill the vacancy on the Mer-
gsnthaler Linotype board caused by the
death of Edward j. McQuade. AS more
than one-third of the companys stock
is held by local investors, it is considered
almost certain that a Washington man
will be selected
During the past week several Wash
bngtonianS have expressed a desire to
Eerve on the board II would be prema-
ture, however, to mention any names
Ut is quite possible that the selection
may not be made from any Of the pres
ent candidates, at least not until the
matter has been given considerable
thought.
For years Washington has had two
representatives on the Linotype board
AT the annual meeting a few days ago
Frederic D. McKenney of Washington
was reelected director, as well as vice
president and general counsel of the
company.
The other directors include Albert H
Sawyer, Ogden L. Mills. Norman Dodge,
Ogden M. Reid. A. Hungerford Pollen,
Joseph T. Mackey and Roy c. Gasser
Among the officers are Norman Dodge
president; Joseph T. Mackey, executive
vice president and treasurer, and Will
diam W. Welsh, secretary.
Stockholders Meeting Likely.
It is expected in the local financial
district that a meeting of the Wash
angton stockholders in the company will
be called soon, in order to give them the
chance to agree on some shareholder to
represent them on the board. Such a
move viii insure harmony in the selec-
tion and be of considerable value to the
directors In filling the place,
Several years ago the Washington
shareholders in Mergenthaler had an
active organization. When there were
no vacancies on the board, there was
meetings and the association became in
active. 1t now looks as if it would be
revived long enough to assist in the
choice of a director.
Copies of the annual report have
been studied with much interest during
the past week. Business conditions hit
the company's order book rather
severely during the IL months, but the
concern Is in an unusually strong cash
position. TT was natural that there
should have been a decreasing demand
for the products of the company, with
a corresponding Shrinkage in income, y
Mr.. Dodge reported.
One paragraph of his report has
aroused especial interest among local
stockholders, this being what the COM
pany expects to do next year with new
products or inventions which the firm
will have on the market.
Would Extend Branch Banking.
Steady extension of branch banking
& advocated by Gaines T. Cartinhour,
who has written a book on Branch
Group and Chain Banking" published
by the Macmillan Company. The
s.k,
and finance in New York University,
discusses at length the control of
groups, chains and branches, a matter
which looms before Congress in con-
nection with the possible changing of
some Of the provisions Of the, Federal
r aserve act.
Whatever may be the arguments
against branch banking in other re-
SpectS," Prof. Cartinhour writes, the
economic worth of the system as a
means toward the betterment of bank
1Lg facilities on a more widely eX-
tended scale is not likely to be ques-
toned. It would seem that the ten
dency, apparently inevitable in the face
OF the economic changes being brought
ABOUT throughout the country would
call for SubJugation of local pride and
assumption of a broader viewpoint
one that is national in scope"
In conclusion he says: 1T is prob
able that when Congress acts in the
matter it will adopt legislation far
more radical than would have been
thought possible two or three years ago
While the outstanding problem is the
extent to which branch banking powers
scould be permitted by national banks
II Is likewise concerned with changes
IL chain and group banking with q
view to determining what Federal en-
actmentS, If any, should be adopted
with reference to these instruments tc
banking concentration"
The writer quotes the controller OF
the currency as saying: If the rate
CI increase in the next 20 years EQUALS
that of the last, by l948 the aggregate
banking resources of the United States
will exceed $240, 900, 900, ,000." If this
forecast should be reasonably accurate
says DR.. Cartinhour, then it appears
We are facing a genuine development
in banking concentration. In his opin.
ion under most conditions, branch
banks, rather than group banks, will
be the best for the country.
1882 Christmas Clubs Starting.
Thirty-one Washington banks are
starting their 1882 Christmas Saving.
Clubs tomorrow, the membership en-.
Jollment period to last until the middle
oi January. The goal this time is more
I!ldn lUU,UUU members ana SQDScrlp-
tons of more than $8,50o,000.
One more bank has joined the
Christmas club ranks for the comins
year, the Liberty National This banl
has had 81 900 and $4,000 savings club
fer years, but is now adopting thu
plan as carried on by the other loca
banks, which handle weekly sums from
so cents up to $40. The $1,000 plal
is a trifle too strenuous for the ma
jcrity of club members.
This years funds from the 1893
clubs will be distributed in a few day
and every member will be happy will
the added holiday funds. The bank
in towns adjacent to Washington ha'
unusually large clubs this year ant
much Of this money will find its wa
into the tills of local stores. The year
foresight and thrift are now furnish
ing the gold which Santa has to hav
before he can travel very far afield.
Local Bonds Unusually Active.
Local bonds were unusually activ
on the washington Stock Exchang
yesterday, the following sales aro'ln
recent price levels being reported:
Potomac Electric Consolidated 6s-
$1,000 at 10l34.
Washington Gas IS "A'-$l,o0O
100A.
POTOMAC Electric Consolidated 5s-
el 900 at 10134.
Washinrtnn Railway A. Electric prt