Evening star., 1933-05-15

career of the Munsey Trust happened
only six months after the bank opened
for business. The United States Trust
Co. faced failure and Mr.. Munsey went
to the rescue. He took over the bank
and saved nearly S8,000000 for about
10000 depositors. The action furnlSneo
one of the most dramatic moves IN
Washingtons financial history, Mr.:
Munsey pledging large amount OF
his personal fortune in order to carry
out his plan. The company has mad
q very successful career.
Munsey Trusts present officers and
directors include William 7. DeWart,
president; Wilton ]. Lambert, wee pres
ident and counsel; G. H. Pope, wee
president and treasurer; c. D. Rat
cliffe, vice president and assistant
treasurer; T. c. Willis, secretary and
assistant treasurer, and P. j. McMahon,
assistant treasurer.
Coast Lines Earnings Jump.
Atlantic Coast Line, strongest road
of the South, and controlling Louis
Vile g. Nashville through ownership
of 81 per cent of the stock, has devel-
oped this year a very favorable earnings
trend, especially with respect to net
earnings, the Wall Street Journal COM
With net operating income for the
first three months of the year 49.4 per
cent ahead of the corresponding perloo
last year, April net operating income
is expected to be about double tnaG OF
last year. when it was S35l 500. Inc
NAV trend to date is also understood
to be very favorable and net earnings
HKPlV TO
make impressive comparison with the
operating deficit of S225,118 OF May,
1882.
While one of the mainstays OF Coast
Lines freight traffic is the movement
of fruits and vegetables to Northern
markets. also a normally heavy busl-
ness in lumber and other forest products
as well as a variety Of manufactures,
Significance of the advance OF nearly
cents a pound, or roughly S2O pale'
in the price of cotton should not pe lost.
This is the great staple crop Oh Ia1
South and higher prices spell genera
ir,nrovement in conditions of the whole
territory.
Wide Agreement on Recovery.
Nearly universal agreement that SUD-
stantial evidences of business recovery
have displaced the speculative mnuence
behind price rises which followed gov
ernmental adoption of an imitation pro.
gram is the outstanding feature OF
the weighted summary OF TINS week
financial and economic opinion COIL
n1ted by the Business Economic Digest
Especial attention is directed by
these observers to the fact that I'M
provement is to be noted IN the Ma
tion's basic industries, whereas II was
the so-called consumer industries
which were the chief benehclarleS OF
the previous attempts at recovery WHICH
have occurred since 1929. 1t Is an
economic axiom that sustained recoV-
erv must start with producers, ralner
than consumers goods.
The various economic services take
satisfaction, therefore, in the increase
of steel output, the rising level OF elec-
tric power output, and the improve
ment in car loadings.
Security Gains Helping Banks.
It was reported in the financial dis
trict today that the recent advances
in stocks and bonds have materially
helped the position of Washington's l3
closed banks
In the past few days many people
have been able to sell collateral put
up en- loans and get out even ana IN
many instances have profit. Gus
toners have been visiting the closed
banks in quite large numbers and Wlp-
ing their loans off the slate.
This situation is gratifying to the
customer and still more helpful to the
banks. If the present strength in stocks
and bonds is maintained for some time,
the position of many OF the closed
banks will be much improved. HAD
the upturn come sooner. some OF them
might have not have been forced INTO
their present status.
The proposed merger OF the DISTRICT
National Federal-American, Potomac
Savings and Washington Savings Banks
into a new central bank was widely
discussed in the financial district today.
1t is fully expected that at least two
other clo5ed banks will join the move
The general opinion today appeared to
b, that it is the best step these banks
can take under present circumstances
and should prove beneficial to the de-
positors. The fact that the plan has
Treasury sanction is also given great
weight.
Local Exchange Unusually Busy.
The Washington Stock Exchange
started the week with record trading.
Both bonds and stocks were IN de-
mand.
Potomac Electric consolidated SIS
opened business with two 81 900 sales
at 1929. Potomac Electric Power is
came out at 10713.
The DAYS largest business was in the
Potomac Electric consolidated, 5si Whlch
again appeared after call, $4,000, $4,000
and 81 900 selling at 102.
Washington Gas 5s, 1860, figured IN
a $500 turnover at 102 and two $1,000
sales in Capital Traction SIS were regis
tered at AZ.
Potomac Electric Power per cent
preferred was the most active stock on
the board. This sold in small lots at
109 and 1O9hs The corporations 5E2
per cent preferred was also in demand
at 1O5 and 1857.
Washington Railway & Electric pre-
ferred came out to the extent Of Is
shares at 81.
Reports Improvement in Sales.
The Washington office of the Ma
tional Association of Credit Men re-
ported today that definite improvement
in both wholesale sales and collections
throughout the country is noted in
the May survey released by the Ma
tional Association.
The survey is based on monthly re-
ports from correspondents in 104 OF
the major markets of the country, in
cluding every State. It reveals that
good" collections were in evidence In
April in San Diego. Calf; Cedar
Rapids. Iowa; Springfield. Mass, and
Detroit, Mich. San Diego is also rep
Cedar Rapids is the sole city reporting
- novo hold its rosition II, the "roOd'i