Evening star., 1932-10-29
CORNER TURNED,
BANKERS BELIEVE
Booker Reports Securities
Dealers More Cheerful Than
in Two Years.
BY EDWARD c. STONE.

NOiC WV OuloIdllIAlS OpilIAol4o CApiSooCl
at the convention of the 1nveStmen
Bankers Association at White Sulphur
Springs. according to Y. E. Booker
head of the local investment firm by
that name. who attended the sessions
representing Washington and serving
on the Executive Committee of the
Southeastern group.
In further reference to the conven-
ton, Mr.. Booker stated that a strong
belief that the recovery is on the wa
was evidenced by answers TO a question
naire distributed by the Trend of Busi-
ness Committee of the association. TIC
the statement III the QUESTIONABLE
that the return of confidence as evil
denced by the recent increases in Sc
ourity prices. indicated a definite move
ment toward recovery from the depreS-
SION $50 houses agreed without quail
fication. % agreed with qualification
and l3 agreed by inference. Only 18
answers disagreed with the statement
the committee reported to the annual
convention here.
In commenting on the advance in the
prices of commodities and securities,
the same committee declared that the
upward movements have not repre-
sented imitation There has been To
impairment of the gold value of the
dollar. On July 6 for every 500 in
circulation the United States hal
monetary gold amounting to $67.91. By
the end of August the ratio Of none
tary gold stock to circulation not only
had not declined, but had actually
risen to s7l 81 per 500 of circulation.
Mr.. Booker reported that there was
a much larger attendance and far
more optimism over the outlook at this
years convention than prevailed dur
i,,cr tI1a 10
Vivid Railroad Picture Drawn.
No address created more widespread
Interest and discussion than the re-
marks of E. G. BuCkland. chairman Of
the New Haven Railroad, who spoke on
The American RailrCads-a Sound
investment
In short, Mr.. Buckland declares that
the railroads are here to stay, are in
dispensable. will prosper with the re-
turn of prosperity, and have made an
amazing record in the double battle OF
fighting the depression and at the same
time struggling against the keen truck
competition which is governed by no
such burdensome regulations. All the
railroads ask is fair chance, he said.
nothing more and nothing less.
Mr. Buckland declared that the rail-
roads are performing a service that no
other agency can perform and doing
it efficiently and economically. In 1881.
except on the Great Lakes, 65 per cent
of the freight was carried by the rail-
roads They are meeting all the de-
mandS of commerce and in times OF war
could transport troops across the
country in manner that would be
impossible by any other way.
Investment bankers will confirm the
statement, Mr., Buckland said that the
most conservative investors are the
savings banks and the life insurance
companies They have no reasons to
apologize for the huge Investments they
have made in the railroads. They have
every reason to defend them.
Mr.. Buckland produced facts to show
that American railroads have been
operated with efficiency and economy,
with the aim always in mind of paying
interest and dividends.
Fairer Taxation Demanded.
He lauded the officials and employees
Of the railroads. He then said the
railroads are entitled to equality OF
opportunity" They ask for a fair
field and no favor" They want such
regulation of trucks that they will
have to pay the same proportionat2
taxes The railroads cannot raise their
IdlPS WlUIlOuI lllp 1IlGlSldlt SOIIlIltlIC
Commissions permission. Neither can
they reduce them. Empty cars return
ing from the Pacific Coast cannot haul
freight at a reduced rate. Yet trucks
can cut their rates as much as the
want to.
Mr.. Buckland insisted that there
should be more equitable distribution OF
license taxes, based upon the concen-
trated weight imposed upon highways
by heavily loaded vehicles, the rail-
roads taking their share of the burden
if they are permitted to operate high
way trucks.
In the depression of 1881 the ratio
of taxes paid by the railroads out OF
their operating revenue was raised from
the average of 583 per cent for the To-
year period to 81 per cent. In other
words, out of every Sl00 earned from
operations the railroads paid S3l in
taxes. the rail magnate stated. Almost
one-third of the railroad plant was
operated to support the Federal, State
and local governments. said Mr.. Buck
land. who declared that this crushing
burden" must be lifted
Secret Practices Attacked.
Secrecy in the operation of holding
companies was bitterly attacked by the
Public Service Securities Committee of
the association.
The report declares that the oppor
tunity for questionable practices. If not
absolute fraud. has been emphasized
during the difficult economic conditions
of the past three years.
As a result of recent experiences the
report entered a plea that corporate
forms be made as simple as possible,
and the frequent and detailed state
mentS of everything affecting the earn
ingS or financial condition of all COM
panies involved should be given the
public so that security holders may not
be deceived by complicated inter
company transactions or intercompany
contracts. The committee continued:
Reputable firms should refuse to deal
in the securities Of companies that 40
not give such information and should
not recommend them to their customers.
Cleaned in Financial District.
Jarer NJ. Johnston & Co.. dealers in
investment securities and members OF
the Washington Stock Exchange, an
nounce that on Monday the firm will
open enlarged Offices in the Southern
Building, from the present location in
the Shoreham Building. This firm acts
as local correspondents for Spencer
Trask & Co., members of the New York
Stock Exchange Mr.. Johnston is
treasurer of the Washington Stock EX-
change and also a member of the
board of governors.
Promotion of w T. Turner to be
freight traffic manager. in charge of the
Eastern territory. succeeding F. D. Glag-
gett. deceased. and of l.. V. Crane to be
assistant freight traffic manager, sue
ceeding Mr.. Turner, both with head
quarters in Washington, is announced
by Vice President E. r. Oliver, of the
Southern Railway System.
The Great Atlantic & Pacific Tea Co.
has reclared the usual Is cents extra
dividend on the common stock in ad-
dition to the regular quarterly dividends
of s1.5O on the common and S1.75 on
the first preferred Both common diI1-
dends are payable December to stock
of record November 4, and the. preferred
dividend IS navahle Decemher ! To stock