Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-29
BANKERS TO PLAN
!, SECURITIES BILL
D. C. Association Will Hold
Meeting Thursday to Pass
on Legislation.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
To consider the ACCESSIBILITY of having
their own securities bill drawn up for
presentation to Congress, the District
of Columbia Bankers Association will
hold a special meeting, Thursday, July
2, at headquarters in the Becker Build
ing.
The Law and Legislation Committee
OF which Francis @. Addison, Jr., is
chairman, recommended at the Hot
Springs convention that the matter be
placed before the full membership of
the association for final action, the
recommendation being adopted.
For number of years the District
Bankers Association has advocated
law that would more effectively control
and regulate the sale of securities in the
District. The attorney for the Invest
ment Bankers Association of America,
who happens to reside in Washington,
drafted law of the fraud type" aimed
to meet the local situation. This law
was studied by the bankers, amended
slightly introduced in Congress and
became known as the Capper bill.
Capper Bill Favored.
The bankers instructed their Com
mittee on Law and Legislation to ap-
pear before congressional hearings on
the bill. express the approval of the
association and the desire that the bill
be enacted into law. Subsequent to the
introduction of this bill, what Is known
as the Blaine bill' was introduced in
Congress. this being of the "blue-Sky"
type of law All the local associations
represented at the hearings expressed
a preference for the Capper bill How
ever the Blaine bill was passed by the
Senate. although it did not reach the
House for final action.
In his annual report Chairman Ad-
Olson compared in detail the essential
differences between the Capper and
Blaine bills.
The Capper bill requires that show
ing of responsibility be made TO the
District Commissioners and their ap-
prevail granted before license can be
issued. also the filing of a bond of
$4,000 in favor of the United States,
to be written by an insurance company
with not less than million dollars
paid-in capital, that is authorized to
do business in the District of Columbia.
The Blaine bill does not require the
Commissioners approval and does not
require a bond.
The Capper bill give inquisitorial
powers to the United States district at
torney, while the Blaine bill gives this
right to the Public Utilities Commission.
The Capper bill exempts the banks from
the provisions of the bill, while the
Blaine bill does not.
Power Given District Attorney.
The Bankers Committee held that it
Is vital for the district attorney to have
the power to stop the sale of any Sc
curity through the practical means of
suit in equity and enjoining the sale
of any security that Is in his opinion.
being sold by means of fraudulent
statements or through misrepresenta-
ton as to values or essential factors
toward safety of the investment"
The report made at Hot Springs ex-
pressed strong opposition to the Blaine
bill and at the same time indicated
doubt if the Capper bill will be passed.
For that reason it was felt that the
local bankers should secure counsel
have the good points of fraud LAWS in
various States all over the country care
fully studied and have a new bill pre-
pared which will embody the best fea-
lures of these other laws.
1t is this proposition that the repre-
seHtatives of the member banks are to
vote at the special meeting. The aim
is to- give the District of Columbia a
satisfactory securities law, the commit
tee stating that such a law is con-
ceded to be needed The meeting will
be the first under the new adminstra-
ton, the notices sent out today being
signed by the president, E. j, McOuade
and secretary, Frederick P. H. Siddons
Local Bank Call Due Soon.
According to custom. Controller Of
the Currency John w. Pole, is expected
to issue call for the condition of all
In ho Strio IF CO1
within few days. Such call prac-
tically always comes around the end
of the Governments fiscal year
Considerable speculation is being
manifested as to what the call will show
in the way of total deposits in the banks
here. 1t will be recalled that the March
call found the Washington banks in an
unusually sound position with a sub
stantial increase in deposits since De-
cember. 1t is believed that deposits
on the next call will stand up well with
the March figures.
There are always a good many with
drawals around the latter part of June
in connection with large accounts. Peo-
pie place their funds in Liberty bonds
or some taX-eXempt security for a short
time in order to avoid the personal tax
which is due July |. II there are many
such Withdrawals this year from check
ing accounts. the total amount may cut
down deposits in the banks here so
that no new high deposit marks will
be made.
For several weeks. however. deposits
have been holding up splendidly 1t is
believed that right now savings depos-
its are probably the highest they have
ever been in Washington. They have
been piling up steadily ever since the
Wall street crash late in 1919.
Busy Session on Exchange
Monday trading was unusually heavy
on the washington Stock Exchange
today
Bonds were extra active, there being
one $4,000 sale and one $4,000 sale
OF Washington Gas Alas at 100l2
Other bond issues were also in favor.
Columbia Sand a. Gravel preferred
led the stock division. 10 shares chang
ing hands in four sales, ex-dividend,
at 90
Potomac Savings Bank stock came
out at IS and single share of Amer
lean Security & Trust Co. stock sold
at 80.
Potomac Electric Power 5la per cent
preferred sold at Ill and ILL., and
. five shares of Washington Gas Light
sold at lisa.
Washington Railway e. Electric pre-
perred sold up to 100 during the ses-
sion, closing at 9924.
MARYLAND T0RACC0 PRICES