Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-15
Everybody's
Business
Confidence Insfired by
Crsd;t-Soo1 Project Ex-
bected to Eliminate Bank
Difficulties; A daquate
Funds Assured.

Special Dispatch to The Star.
NEW YORK, October l5.-The Wash
ineton administration is understood TO
be considering means Of supplementing
the benefits expected to be derived as
result of the formation of the National
Credit Corporation. which Is to com
mence business with $500 100000 re-
sources. In the event that this sum
will prove insufficient to cope with the
situation, additional funds will be forth
coming. in the opinion Of Harry j. Haas.
president Of American Bankers Assocla-
ton. 90,
Mr.. Haas adds that the difficulties
which have bean facing the banks
throughout the country are expected
confidently to be gradually eliminated,
owing to the firm belief of those who
have carefully studied the Hoover pro-
posal that the plan will work. That it
Is meritorious and should receive the
support OF all national banks Is ap-
parent.
Whenever pessinism appears to be the
order of the day, constructive develop
ments are either ignored entirely or
they do not receive the attention Que
them. In view of the renewed selling
of railroad shares, it should be Of in
terest to point out that loading OF rev.
enue freight for the week ending Octo-
Der was the highest for any week so
far this year.
Although the figure represents an APP
preciable decline as compared with the
same period last year or in 1929, 1t is
encouraging to note that the increase
over preceding weeks this year was due
to q gain in the loading Of all commodi-
ties It Is not unlikely, however that
holders of railroad shares are somewhat
disappointed over the failure on the part
of the Interstate Commerce Commission
to make an early announcement regard
ing the increase in freight rates.
Public Spirited Men.
Credit is due to those public spirited
men of Philadelphia who represent the
leading financial institutions of that
city for the constructive step they have
taken in assuring the public that they
are prepared to render assistance to de-
serving banking institutions which have
recently been embarrassed by heavy
Withdrawals. According to an an
nouncement made by these men, the
plan which they adopted was prompted
solely by the desire to demonstrate
forcefully their determination to stand
by institutions which may be subjected
to Withdrawals because of the circula-
JlOn OF damaging TuulOTS.
Due to the adverse effects of general
business conditions upon telegraph rev.
enues, the dividend on Western Union
common will be reduced to a Sc annual
basis from the present SO rate. An
agreement has also been reached with
the company'S employees providing for
a 10 per cent cut in the wages of oper-
ators, maintenance, clerical and other
land-line employees, to take effect No
vember I.
The company's gross earnings for the
first eight months of the current year
show a decline of about 16 per cent
from the corresponding period in 1890
while net profits declined about IA per
cent. The continued decline in the
shares from a high this year of $50 to
around 80 may be assumed to have dis
counted the dividend cut which will be
effective during the last quarter of the
current year
A., T. & T. Earnings.
For the first nine months OF the
Telephone g. Telegraph Co. have ex-
ceeded dividends by $6,800,000. exclu-
sive Of the companys net equity in the
undistributed earnings of its subsidiaries
Of about $500 900, according to Walter
S. Clifford, president. This statement
should set at rest rumors which crop
up from time to time in regard to the
possible reduction in the present divi-
dend rate Of 50 a share. For the time
being there can be no question as to its
maintenance.
An accurate appraisal Of the state
ment made by Sidney z. Mitchell,
chairman Of the board of directors Of
the Electric Bond & Share Co., should
lead to the conclusion that the marked
decline in the company's securities Is
entirely unwarranted
The company possesses today cash, or