Evening star., 1934-03-17

to do away with
abuses of salesmanship, abuses Of con-
fdence and abuses of competition.
The witness asserted that it is to the
national interest that conditions be
created as rapidly as possible under
which the capital markets can func-
tion normally again.
In his testimony Mr.. Christie said
that up to March Is, 1851 dealers
IN securities had subscribed to the
Investment Bankers Association code
OF these, 80 per cent agreed to the
fair practice provisions. The associa-
tion, organized in 1912, now has 443
members, with 991 offices in 118 cities
bll over the United States. About
1000 dealers are subject to the code
Prior to the creation of the N. r. A,
Mr.. Christie said, there was no way
OF enforcing fair practices in securi-
ties dealings.
Salesmanship Reforms Needed.
The witness said the code realizes
that facts must be current to be of
Nalue, adding that dealers would try
10 assure the continuous disclosures
of indispensable data. Correction of
abuses in salesmanShip is one of the
most vital provisions of the code.
Securities should not be pushed" on
investors The purchase of securities
should not result from the mere SELL
ing ability of the salesman. but from
a meeting of the minds of the investor
ana the investment banker, in which
the investor assumes a due sense of
his own responsibility, Mr.. Christie
declared, continuing:
THE eradication of selling evils in
the securities business is no easv task
The spirit of high-pressure selling
tunS through most forms of American
business. Originating houses too often
nave considered whether a security
could be sold rather than whether it
ehould be sold. We have embodied in
fhe code very important feature
winch will tend greatly to restrict
blgh-pressure salesmanship, in for
bidding the attempted sale of securi-
ties by house-to-house canvass, unless
the investor has definitely indicated
his Willingness to be approached in
this manner"
In conclusion, Mr.. Gheistie asserted
sAAoG llIC uQQGTlyl0G the
code for investment bankers are
sound, and that for the first time
effective self-discipline is expected to
develop in the investment banking
business.
Insurance Sales Mount.
New life insurance production last
month was So per cent greater than
for February of 1888, according to the
Association of Life Insurance Presi-
dents. For the first two months of
this year the cumulative total was
7.3 per cent above the amount for the
corresponding period of last year.
For February, the total new busi-
ness of all classes written by AZ COM
panies, having 85 per cent of the total
life insurance outstanding in all
United States legal reserve companies,
was S648073,00O. as against $685.
725,000 during February of 1888, an
increase of 6.3 per cent. New ordinary
insurance at $424 1895 900 was prac-
tically unchanged from the S424483.-
900 in February last year. Industrial
insurance was up 1863 per cent to
iSl96,8l6,0 900, while group insurance of
FS26,862,0 900 compared with sl6,842,00
an increase of sos per cent.
For the first two months, the total
new business Of these companies was
$l,313,530,o00 against sl,224,156, 900
lin like 1888 period, or a gain of 7.3
lper cent. New ordinary insurance
amounted to s860,071 900, against
ls84S,056, 900, while industrial insur-
.ance Of $685. ,924,000 compared with
S336,712,000. Group insurance to-
tailed $685. 900, against S39, $4,000.
Bank Notes 15Oth Birthday.
The Bank Of New York & Trust Co.,
1.-The oldest bank in New York, which
lslso claims to be the oldest in the
United States preserving its original
identity, has just observed the 150th
anniversary of its founding. The bank
was organized March Is, 1874, and
the doors opened to the public on
June of that year.
For Is years it was the only bank
in New York Alexander Hamilton
was one of the founders, wrote its
constitution and took an active part
in the management. When he became
Secretary of the Treasury, the first
loan he arranged for the Government
was for 100000 from this same bank.
Among the original directors and
early presidents of the bank was Isaac
Roosevelt, great-great-gra of
Franklin Delano Roosevelt. He served
as head of the bank from 1885 to
1871. The bank has never missed
dividend except in 1887 when State
law prevented dividends by all banks
Seven major panics have been passed
through successfully.
While no banks in Washington are
near the 150-year mark. two are not
far from 125 years old, the National
Bank OF Washington and the Ma
tional Metropolitan. The Farmers g.
Mechanics National Bank in George
town was also considerably more than
100 years old when it became branch
of Riggs National.
Heard in Financial District.
Directors of the National Metro
politan Bank have declared the reg
ular semi-annual per cent dividend
on the capital stock, payable April
IA to stock of record April S. accord
ing to announcement by President
George w. White. Books will be
closed between April and IA, in
elusive.
Chemical Bank & Trust Co.. New
York, has declared the regular quar-
terly dividend of IS cents on common
capital stock, payable April to stock
of record March 20.
Fulton Trust Co., New York, has
declared the regular quarterly divi-
dend of SO share on capital stock,
payable April to stock of record
March 26.
The Minneapolis Federal Reserve
Bank has reduced its rediscount rate
effective March 16, from 3la per cent
to per cent, the Federal Reserve
Board announced.