Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-16
DIRECTORS URGED
TOSTUDY BANKING
Await Believes Better KnoWI-
edge of Finance Would
Halt Failures.
BY EDWARD c. STONE.

ndIt dlIuI Cos
BY EDWARD c. STONE.
Fewer bank failures would be record
ed If more bank directors realized their
responsibilities and had better knowl-
edge of the banking business F. G.
Await, deputy controller OF the cur
rency, told members OF the New jersey
Bankers Association at Atlantic City
Yesterday. In advocating an educational
program for bank directors, he said.
Il believe that the American Bankers
Association and the State associations
could do no better thing to promote
sound bank management than to carry
out a plan of education of bank direc-
tors in their duties and responsible
ties"
He said experience of the controllers
Office has shown conclusively that many
bank directors have little conception of
their duties and that some directors
even ignore their duties when called
to their attention.
Deputy Awaits speech at Atlantic
City was much the same as the ad-
dress he made several weeks ago at
the Atlantic States Bank Management
Conference held in this city and spon-
sored by the District Bankers Associa-
ton.
Business Holding It's Level.
At the close of the great national and
international business conferences, bust
ness sentiment here and abroad seems
to have assumed an ultramarine shade
of pessinism. This is somewhat sur
prising, for while the outcome of the
conferences was disappointing to those
who looked for decisive leadership the
surface signs OF the business situation
have given no ground for added gloom,
and a fundamentally favorable force
has appeared in the picture in the form
of persistent and powerful Federal Re-
serve pressure for credit expansion. says
the Business Week, in its report cover
ing the week ending May 16
The business index is holding its level
with no indication Of impending decline
due to more than seasonal changes. For
the week ended May 1t settled at
79.2 per cent of normal, against 1913
in the preceding week and $50 per cent
in the corresponding week last year.
The seasonal slackening of steel activity
seems slightly slower, with moderately
improving prospects Of automotive de-
mand. Building permit figures reflect
some improvement in residential con-
struction. Check payments and cur
rency circulation suggest some increase
in money turnover. Department store
results for April indicate increased re-
tail activity. Crop prospects are en-
couraging, and wheat is surprisingly
stable.
The full extent and effect of Federal
Reserve effort to check chronic credit
contraction and overcome commercial
bank inertia and conservatism will not
be seen for several months, but its
pugnacious policy is pointed in the
right direction and by every rule Of
precedent should speed recovery. In
creasing stability in stocks and strength
In bonds are already reassuring results.
Booker Made Raleigh Director.
Y. E. Booker of the investment house
bearing that name, has been elected
director In the Raleigh Hotel Corpora
ton. George z. Hamilton is chairman
Of the board, Frank c. Henry, presi-
dent; William l. Miller, vice president;
William j. Father. treasurer, and Ed
ward L. Hillyer, secretary. For many
years Edward L. Stellwagen, president
Of the Union Trust Co., was head of
the company. The Raleigh Hotel was
recently placed under new manage
ment and large sum voted for ex-
It Is located at Pennsylvania avenue
and Twelfth street.
Federal Judge Alfred c. Coke, in New
York has directed attorneys for Prince
& Whitley to prepare an order of con-
f1rmation OF the bankrupt firms COM
position plan, which. he stated, will be
signed by him during the next week
His instructions include the insertion of
clauses which Will adequately protect
the rights of special classes of creditors,
whose objections to the plan have al
ready been filed with the court
Immediately upon the signing of the
order, preparations for distribution of
. IS per cent of the claims of general
creditors viii be made cash payments
TO b made through creditors liquidat-
Ing company. Certificates of indebted
ness will be given creditors for the bal
ance OF their claims.
washington creditors Of the company
which maintained an Office in the WASH
1ngton Building, have been anxiously
awaiting the outcome of this court
action. They expect now TO get part
payment Of their claims in the near
future.
c. & o. Lets S1,564,50O Contract.
Contract has been awarded by the
Chesapeake & Ohio Railway Co. to
BoxleY Brothers Co., Inc, of Orange.
Va, for the construction Of a new doy-
bic track Second Creek tunnel and
bridge over Greenbrier River on re-
vised alignment: also new single track
tunnel parallel TO present Mann's tun-
nel. The estimated cost Of this work
IS 81 ,564,500
The line revision will extend from
Rockland station westward approx
mately Is miles to a point about Is
miles east OF Fort Springs, and includes
q new double track Second Greek tun-
mel 2.l6o feet long, 80 feet wide by %
feet high above top Of rail and a new
double track bridge over Greenbrier
lNK4rr ~r~4NT e.
centers The tunnel will be lined with
concrete and the tracks through the
tunnel VIII be laid on ballast supported
by concrete floor slab and ballast walls
The new bridge will be q ballast deck
steel girder type. consisting of five
1O0-feet spans. The construction of
this line revision, including the new
tunnel and bridge, will provide a con-
tlnuous double track line with stand
ard clearance. The existing line. which
has limiting clearance and is single
track over the present bridge and
through the present tunnel, will be
abandoned. A saving of 1000 feet in
distance and 100 degrees of curvature
will be effected. The new single track
A Manns tunnel will be 1850 feet long
A1s feet wide by % feet high.
Weeks Local Bank CIearings.
Washington bank clearings totaleI
S25, 100000 this week, against S27. $50. =
900 last week. or a decrease of is from
the corresponding week last year.
Great Atlantic & Pacific Tea Co is
experimenting with the sale Of ice
cream in 30 Of Its New York stores and
20 OF It's New Jersey stores
Federal Reserve Board announced
that Federal Reserve Bank at Rich
mond has reduced its bank rate TO 3
per cent from 3iS per cent.
April postal receipts In so selected
cities amounted to s29. 257 21o against