Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-11

hOdAACCAACAb ny Unlh1AlB 0uJANOIAb4Co
give itIas the real cause for the banks
trouble.
Now frozen assets may be good assets.
but they cannot be thawed out fast
enough to pay depositors In cash. The
year 1880 will go down In history as the
big bank failure year-an appalling one
from that point of view. Look at this
record for the last six months.
Banks suspended. Deposits.
s September &c &c a 24'SOCSSS
October ....... Sc $4,000, 900
November ......236 204, 900 900
December ...... 252 10000 900
G. B. AFFORD of the American Banker
estimates that during the year 1880 as
many as 1888 banks closed, tying up
deposits of more than $500 100000. In
cluded in his list of failures are two
very large institutions-the Bank of
United States and the National Bank
Of Kentucky.
During the last decade nearly 5000
banks have gone out of business, but
Mr.. AFFORD makes the point that almost
that number of branches haze been
established in the cities by the larger
banks. 1t seems that as the small
country bank quits, the large city bank
establishes branch, so that the total
with the number of country BANKS that
have closed.
Today there are approximately $4,000
unit banks in the United StateA as
compared with more than $4,000 10
years ago.
Tremendous forces are moving In this
field, but most of them make no rip
pies on the surface.
Frozen Ice"
Frozen ice" has already worked
mircleS in one industry-that of ice
cream. Now it looks as though it is
destined to work profound change In
the citrus-producing States in the
United States. They will produce 49,
100000 boxes this year, almost q record.
Many of these oranges are second and
as sweet, but their color throws the
price down so that in many cases such
oranges, in the past, have been trans
ported to New York and other cities
with little or no profit to the producer
Frozen ice" enters the field, and the
orange juice Is squeezed out of the
orange, frozen Immediately by the new
process, and sent to any city In the
land for a fraction of the freight cost
of an orange. Result-some morning
in the next few months you are likely
to find your milkman delivering orange
juice at the same time that he delivers
your milk. The orange juice Is then
thawed out and taken at breakfast for
the adults, as the children take the
milk.
What does it mean? It should mean
a. large increase In the amount of
orange juice consumed in America and
in the rest Of the world. For this new
process of freezing has already been &C
cepted in Connection with orange juice
distributed by two of the largest milk
distributing companies IN the United
States. ..,tt.t
And "frozen lee" has only begun to
enter industry.
Legal Aspect Of Bonus.
The announcement that q committee
representing the Bethlehem Steel Co.
will seek restitution Of the bonuses
which have been paid during the last
10 years to Bethlehem Steel officials IS
of major Importance.
Eugene Grace, president Of Bethlehem
Steel Corporation, testified on the stand
that while his salary amounted to $l2,-
than yese s0f boaS.e shsn1 rnr mS5 s
year 1929. The total bonuses paid out
to officials aggregate approximately
$36,000,Q09, Is this sum collectible?
That Is the. question, Of course, which
every stakeholder of Bethlehem-and
the stockholders. of many other COM
panies which have given bonuses in the
past few years to their higher executives
want to know.
Probably the outcome will largely de-
pend upon the facts involved and on
the law. One well known lawyer told
this writer that If the Bethlehem board
of directors delegated to Chas. NJ.
Schwab, chairman of the board, and
the executives who received bonuses,
the power to fix the amount of the
bonuses without again referring the
various bonuses back to the board of
directors for approval, 1t raised a deli
cate question Of law.
understand that the suggestion was
made to Cyrus S. Eaton of Cleveland,
when he was in the midst of his fight
against the merger of Youngstown with
Bethlehem that he proceed against
Bethlehem in an endeavor to get back
these bonuses. But he replied, sub
that that was not his kind Of
fighting.
eSting rumor that Cyrus S. Eaton,
James A. Campbell, president OF
youngstown, and Eugene Grace, presi-
dent of Bethlehem, met this week in =
New York to work out a $4,000, 000, 900
steel merger which may include four
other companies.
France, holder of the second largest
pile Of gold in the world, is objecting to
the publication of the gold report
drawn by the special committee of the
League of Nations. George z. Roberts,
American banker and economist, Is q
member of the committee.
It seems that the French authorities
object because the report holds that
France, more than the United States,
Is responsible for the present world
crisis In world gold distribution.
In Paris, for the past 10 days, Eng
Iish and French banking leaders have
had their heads together trying to work
out something whereby England Will
get some of Frances gold In exchange
For loan Of substantial proportions
from Great Britain.
But reports from the meeting are not
It looks as though a stale
mate has been reached Still everybody
especially the British, are
anxious about 1t, for business In Europe
during the next IL months largely
hinges on the outcome Of this Paris
conference, about which little has been
aid.