Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-15
Convention Hears Committee
Reports on Various Phases
of Financial Situation.
GROWTH IN COMMERCIAL
BANKING FIELD NOTED
Creation of National Fund to Aid
Il Railroads Urged-Economies
Are Suggested.
BY EDWARD c. STONE.


Many high spots in finance wer
scaled at the convention of the Invest
ment Bankers Association of America
Just held at White Sulphur Springs, W
Va. The investment leaders discussed
the biggest issues now puzzling the Ma
tons leading financial minds and thei
reports we're unusually complete ant
constructive.
Three phases of study of iong-tern
credit conditions under the Federal Re
Eerve System from 1920 to 1929, inclu
sive, were covered in the report of thu
Money and Credit Special Advisory Com
mittee to the association. These related
to the tremendous growth of investmen
banking and the enlarged interest o
commercial banking in the Securlt.
markets. necessitating consideration o
investment banking as we'll as of com
mercial banking conditions by the Fed
eral Reserve in framing its rediscouni
and open market policies; need FOL
dealers inventories of securities to aic
in Interpretation of brokers loan flg-
uTes, and the question of eligibility Of
security collateral loans for rediscount
at the Federal Reserve.
Avoiding Foreclosures Urged.
The association heard a criticism OF
methods of Protective Bondholders
II Committee which, motivated by per-
I sonal profit advantage, foreclose real
/ estate property without proper investi-
| cation.
"A committee formed for the purpose
( of acquiring control of property or fol-
[ unreasonable fees should be publicly ex-
? posed" said the report of the Real
4 Estate Securities Committee which was
: adopted by the convention.
/ The report expressed confidence that
(. the present situation can be adjusted
I without serious losses by reorganization
( in every case possible to avoid fore
closures.
4 I'VE know that losses on many issues
:, will be heavy, but we feel that losses on
the conservatively made issues will be
surprisingly small if these properties
are honestly liquidated," the report said.
The committee said that so per cent
OF outstanding real estate bonds are in
distress. and that net income from APP
/ proved real estate has declined about
I so per cent.
! Government Ownership Scored.
! Deploring widespread agitation for
Government ownership and operation
OF public utilities, the association,
/, through report of one of its commit
tees, said I'VE urge its resistance by
direct, aboveboard, frank education OF
the public by those who believe otner-
wise"
The report dealt frankly with the
utility industry, pointing out that hold
ing companies in some cases had been
oycrcapitalized during the boom period
''Mere corporate manipulation OF Securl-
ties for speculative purposes cannot be
tolerated in this business, 1t declared.
Disapproval of the practice OF corpo-
rations buying their own common STOCKS
excent, in the case of the strongest COM
panies was expressed by the Industrial
Securities Committee. The committee
!. recommended that future new issues be
%, detected by strong covenants sale-
Guarding the senior securities in the
I order of seniority
Greater Rail Freedom Favored.
Reduction of railroad wages com
! ncnsurate with the decline in the
| ct,st of living" was urged in a special
| report covering the whole railroad Stu
| alton.
| The report also recommended crea-
I tion of national fund to assist the
I railroads in financing maturing ooilga-
( tions. similar to the suggestion pene
made for a national corporation OF
agency to take over the railroad ponus
The report urged, in permanent solu-
ton of the acute problem which II heIo
fife railroads now face, that ROADS Of
given greater freedom to meet enec-
fivelv by rate changes, the competitor
Of other forms of transportation.
further economies, both in frelgh
and passenger traffic, were urged upoi
the railroads by the committee
The convention heard WIN gIeac ~
torest the report of John M. Miller Jr
~ Richmond on the $500 100000 pam
pool over $500 100000 of which ha
a;ready been subscribed. Mr.. Mile
declared that even before the loan
have been started, the banking sltua
ton has greatly improved all over th'
country.
washington Exchange Trading.
washington Gas SIS led business Oh
the local Stock Exchange yesterday
when $4,000. $4,000 and ST 900 sale
wore recorded at l00l2. Washington
Railway As, in a 81 1000 denomination
moved at 86l2 During the session
three small lot sales were noted II
Potomac Electric Power 5l2s at 1917.
ex-dividend.
off Yesterday, few changes being an
nounced. The bid on National Pres
Building bonds was advanced from A
to az and the asked price from "A Il
46. The bid on Chaplin Sacks per cen
preferred was raised from lOl to 10
while the asked stands at ITO.
A glance at trading on the exchang
during the past week shows that bona
we're unusually popular.
Financial District Notes.
Several Washington banks hav
posted notices that the annual Christ
Tnas Savings Clubs will start on De
ceInber 7, to take subscriptions for mex
Years savings This cate is shortl
after the banks will have paid GU
nearly 100000 locally to this year
members.
Miss S. Winifred Burwell, Chairman
of the Women's Committee of Wash
ington Chapter, American Institute G
Banking. announces the chapter wi
omen the years activities with car
marty at the Willard on November q
Mrs Gertrude c. Wick Liberty Ma
tional. is chairman of the COMMITTEES
while special posters have been draw
by Robert c. Wilton, First Nationa
Alexandria
A delegation of local bankers attende
the funera of Joseph Schiavone, pres
Sent of the international Exchane
bank, held yesterday. Mr.. Schiavor
1,es the third Washington bank pres
Sent to pass away within year, tn
Hto..e bei,,o Iol,n e Iarne; an