Evening star., 1933-06-22
INTEREST HALTED
ON CHECK DEPOSITS
Capital Banks Sending Out
Notices Today Under
Banking Law.
BY EDWARD C. STONE.

ing interest on demand deposits, such
payments ending at the close of busi-
ness June Is
Under instructions from the Wash
ington Clearing House Association, al
though the new banking law is manda-
tory, local banks today were sending
out notices to their depoSitors stating
that interest will no longer be paid on
demand deposits, which, of course, in
clude all checking accounts.
The Glass -Steagall banking bill was
signed by the President on June Is,
that being the reason for payments
ending Oh June Is. The new ruling is
not expected to cause ripple in the
amount of money which depositors
carry in their checking accounts. The
banks here have been paying but one
half of per cent, which meant little
to bank depositor unless he happened
to have an extra large checking account.
In the old days when Washington
banks paid 2 per cent on checking ac-
counts, provided they were kept above
a stated amount, the new bank law
would have been far more important.
New York banks already have noti-
fed Washington banks that money kept
III NeW 1Ol Oll Will 1CSSifO hO
more interest. For long time the call
money rate has been SO low that no
income could be derived from this
source.
Interest on time deposits remains un-
changed since the new law has no
bearing on savings accounts.
Books Closed for Merger Voting.
In anticipation of the vote on the
%l,o efr roI
ways, stockholders of the Capital Trac-
ton and Washington Railway & Elec-
trio Cos have been notified that the
books will be closed on certain dates
before the special meeting on July 8.
BY closing the transfer books it will be
determined who have the right to vote
on the merger proposition, buyers OF
these stocks after the closing dates not
being given the right to vote.
The books of the Washington Rail-
way g. Electric Co. already have been
closed, the dates being from June 81
to June "a. The transfer books of the
Capital Traction Co. were closed on
June 16 and will not be opened again
until July 7, according to notices posted
on the bulletin board of the Washing
ton Stock Exchange.
Meetings of the stockholders have
been called to consider the approval
of certain form of agreement for the
uniflcation of the transit properties of
the District of Columbia as contained
in and provided by joint resolution OF
Congress approved January IA, 1888, as
amended February Is, 1888"
Officials and directors Of the two
companies have recommended to the
stockholders that the plan be adopted.
In his letter to the Capital Traction
stockholders, President John H. Hanna
said:
Directors Favor Unification.
THE directors of the company are
strongly of the opinion that the unfit
cation Of the transportation facilities
in Washington offers by far the best
means of improving the present un-
satisfactory financial condition Of your
company.
For five years we have been con-
stantly urging the passage of legislation
which would make such a merger pos
sible The legislation has finally been
enacted but its benefits can only be
obtained by action on the part Of the
companies. We, therefore, urge your
approval of the form of agreement en-
bodied in the legislation now submitted
to you, :. a,r.,
every effort will be made to reach an
early agreement on the distribution OF
securities and other points now unset
tied. When this is accomplished. fun
information will be given you and an
other special meeting Of the stockhold-
ers called for consideration and ap-
proval of the final agreement thus
reached" :.
From this letter it is evident that II
will be some time yet before the details
regarding exchange of stock Will DE
available. The stocks Of both COM
panies are very widely held in Wash
ington. Many holders of Capital Irac-
ton paid 500 per share for It or even
higher 1t now sells for $40. Naturally,
they are intensely interested to know
how they will fare in merger.
Praise Choice of Whiteford.
Capital bankers declare the selection
of Roger j. Whiteford as counsel Tor
the proposed new Hamilton National
Bank is an excellent move on the part
of the leaders in the merger. The at
torney is widely known among the citys
financiers. having attended practically
all the recent conventions OF the Dis
trict Bankers Association as member
of the quartet which furnished much
entertainment He is a fine singer and
also plays golf well
OF course, his legal ability is what
got him the new position as counsel
for the HAMILTON Bank. He already is
holding conferences with the hackers
OF the planned consolidation in their
task of raising the last Of the needed
capital and the carrying out of a
thousand and one other details which
enter into the merger. 1t now is hoped
tha new bank can open the middle OF
July or by August l.
Mr. Whiteford has been prominent
Washington lawyer for years. During
the Wilson administration he was as
sistant corporation counsel. At present
he is senior member OF the law flrm
of Whiteford, Marshall & Hart. He
is a native of Maryland, lives in
Chevy Chase and has a Summer home
in another section Of Maryland. He
has a young son, who has inherited
his fathers love for music and plays
a pipe organ with startling ability
Bonds Lead Local Exchange.
Bonds featured trading on the Wash
ington Stock Exchange today first
transactions being in Washington Rail-
way & Electric As. These bonds figured
in five 81 900 transfers at 87l2
Georgetown Gas Light first 5S were
also in demand. four 1000 sales in
these senior securities being recorded
at 1882 This completed the bond
trading. Washington Railway & Elec-
tric preferred stock sold at 86l2 and
Potomac Electric Power 5l2 per cent
preferred moved at 1903
1t was reported on the exchange that
the directors of the American Security
e. Trust Co. declared per cent divi-
dend at yesterdays meeting, payable
July 10 to shareholders Of record on
June 80
Virginia Bankers Open Farley.
The Virginia Bankers Association
opened its fortieth annual convention at
Hot Springs today with special addresses
by President Samuel w. Keys of Glade
Spring and Francis H. SiSson, president
of the American Bankers Association
Both speakers devoted special attention