Evening star., 1934-11-15
NEW CHECK RULES
CURB OVERDRAFT IS
Charge of ST Made on All
Checks Returned for
Lack of Funds.
BY EDWARD C. STONE.

charges just adopted by Washington
banks has already reduced greatly the
number of checks which come back
daily marked insufficient funds" A
charge of 81 check is now being
placed on the depositor's account.
Most checks returned because of
insufficient funds" are due to care
lessness, bankers say. Depositors do
not keep their checkbooks up to date
and draw checks on the mere guess
or hope that they have enough money
IN the bank to meet them. Some de-
positors expect to cover" such checks
in q day or two and then forget to do
SO. Surprise and anger are expressed
when the checks are not paid.
The practice is expected to be re-
duced to minimum after this month,
when depositors get their statements
revealing the charges under the new
rules. Like the other service charges,
the overdraft fee is binding on all
banks in the city and must be applied
to all accounts.
The change from the fat service
charge to the measured charge is still
a much-talked-of topic among de-
positors in all the banks. 1t is re-
ported that some small accounts have
been closed, but that this has been
offset by depositors who are building
up their checking accounts to the
point where they will not have to pay
any charge. There are good many
instances where enough money has
f0
checking figures above minimum re-
quirements. This plan was first
adopted under the old flat rate.
Linotype Dividend Nearer.
Details from the annual report of
Norman Dodge, president of the Mer-
genthaler Linotype Co., were received
here today. They throw added light
on the turn that has come in the
company's affairs in the form of a
profit of s212,O27, against a loss in
1888 of $959,253 and in 1882 of
$993,525. President Dodge considers
the gain very encouraging. although
nominal when compared with earn
ings In normal periods. He sees fur
ther improvement as general business
picks up, along with betterment in the
printing and publishing business both
at home and abroad.
The fiscal year ended on September
80. President Dodge reports that
orders for linotype machines we're
better in the first half year
than in the last six months. Orders
from foreign sources were fair
ly satisfactory and the sale of
parts and supplies showed improve
ment over the previous year, he says.
Income from sources other than sales
OF machines likewise shows improve
ment.
President Dodge makes special ref
erence to the financial report, which
he says shows the concern to be sound
In every respect. The company is
without Indebtedness except for minor
current bills; has no bonds or notes
outstanding; is free from bank loans,
and has but one class of stock, 256, 1000
shares OF common, in the hands of
nearly 1000 owners.
So much of the stock is held in
Washington that this city has two
directors on the board-Frederic D.
McKenney, vice president and gen.
eral counsel, and George Hewitt
Myers
The stock has been listed on the
local exchange for many years. It is
quoted 25 bid and IS asked With
such an upsWing in earnings, share
holders here believe, at least hope,
that some kind Of a dividend is not
very far of.
Preferred Dividend Voted.
Directors Of Peoples Drug Stores,
Inc, have declared the regular quar-
terly dividend of sl.621z per share on
the 612 per cent preferred stock. pay
able December 20, to stockholders of
record November 80. This stock is
listed on the Washington Exchange
and has sold as high as Ills this
year. The present bid on the ex-
change is around 11034.
The preferred dividend was de-
slared at the same time the directors
voted a stock dividend of 100 per cent
on the common stock, an extra divi-
dend of $3.50 on the present common
stock and the regular quarterly dis
burSement of Is cents a share on the
common.
The stock dividend is payable on
December 81 to stock of record De-
cember 21. This stock is now selling
on the New York Stock Exchange
around S65 share after Jump
from $50 in two days. 1t is not listed
locally. There is much interest in the
financial district as to the probable
selling price after payment of the
stock dividend.
Today's Trading on Exchange.
The Washington Stock Exchange
almost made record today for light
business. But one sale was recorded.
Three shares of Lanston Monotype
stock sold at 48, unchanged from
other recent transfers. Both the Wash
1ngton Railway g. Electric preferred
and common stocks and the Potomac
Electric Power 512 and per cent pre-
ferred stocks are now being quoted
ex dividend. The regular quarterly
in few days.
President Roosevelt has disclaimed
knowledge of any studies looking to
greatly increased Federal control over
utilities. Asked in his regular weekly
newspaper conference regarding
rumored steps of this nature, he did
refer to a survey being made by the
power board under Secretary Of In
terror Ickes, but indicated that he
Anticipated no far-reaching recon-
mendations from that group.
The Federal Housing Administration
reports that, despite the advance of
Winter, modernization and repair
loans are rising. In the II weeks of
the campaign, loan totals have ad-
vanced from 1T loans of $56,937 the
first week, to $500 for s2,35o,000 for
the week before last. The trend con-
tinued last week, the administration
reports.
Heard in Financial District.
c.. C.. Murphy Co. declared the regu-