Evening star., 1934-03-12
CHANGESAWA|TED
IN CONTROL BILL
Capital FinanCiers Believe
Opposed Provisions Will
Be Eliminated.
BY EDWARD c. STONE.

Exchange are anXiously awaiting the
redrafted Fletcher -Rayburn bill aimed
at the control of all the important
stock exchanges in the United States
by the Federal Trade Commission.
In the financial district here today
the opinion was generally expressed
that the rewritten bill will be work
able legislative measure. The worry
so evident two weeks ago among Sc
curlty dealers has now disappeared.
Informal statements by members of
both Senate and House committees
imply that many of the controversial
points will be handled in a conserva-
tive way. The bill is still to have
teeth in it. legislators say, but many
notifications are expected and some
parts of the bill, such as the provi-
slons regarding over-the- counter trad
Ing, may be left ont entirely.
Many of the points stressed by
Eugene E. Thompson of Washington,
who is president of the Associated
Stock Exchanges. are known to have
received careful consideration by both
committees. As already noted in The
Star, Mr.. Thompson. who is a men,
ber of the Washington Exchange. pre-
sented exhaustive testimony as the
representative of the 18 exchanges in
the association. and also by special
request, the Richmond, Louisville and
Seattle Exchanges.
It was said in the financial district
here today that President Roosevelt
favOrs bill that will not be too broad.
one that will hit definite abuses and
leave out less important matters The
bill is set to 60 into effect next Octo-
Der. II higher margins are ordered
outstanding loans at that time are
not to be changed only new ones be-
ing negotiated after that date. Such
a provision is intended to prevent any
serious market furry at that time.
Clifford Raps Control Bill
The thousands of holders of Amer
dean Telephone Co. stock in this city
will be interested in the attack by
President Walter S Clifford on the
proxy provisions of the Fletcher Ray
burn bill. The bill says a complete
list of stockholders must accompany
all calls for proxies in connection
with annual meetings.
Mr.. Gifford's protest said it would
cost S950,000 every time it proved
necessary to have an A. T & T.
stockholders meeting and to solicit
proxies to conduct that meeting. He
added that TO furnish the information
required by the exchange bill in the
process of proxy solicitation it would
be necessary to send three volumes as
large as a telephone directory for a
city of half a million population to
each of 68l 900 stockholders scattered
throughout 46 States and 81 foreign
countries.
He also said any group of A. T g. T.
stockholders who desired to conduct
proxy campaign IN opposition to the
policies of the corporations directors
would also be forced to expend
S950,000 for such a distribution.
Rail Earnings Jump.
Class l railroads in the Southern
district in January had net railway
operating income of s5,272 1868, which
was at the annual rate Of return of
2l3 per cent on their property in
Vestment.
For the same month in 1888 their
net railway operating income amount
ed to S3.ll6,55l, which was at the
annual rate Of return Of l25 per cent.
Gross operating revenues of the
class l railroads IN the Southern dis
trict in January totaled S34 sos, 161.
an increase of liz per cent above the
same month in 1888. While operating
expenses totaled S25,789,03O, which
was an increase of SIS per cent above
January last year.
Accountants File Protest.
Protest has been filed by the Amer
lean Institute of Accountants with
the Banking and Currency Committee
of the Senate against the provisions
of the national securities exchange
bill which would permit the imposi-
ton of uniform accounting methods
upon industries. it is announced by
c. Oliver Wellington. chairman of the
institutes committee in charge of the
matter
Section l8 of the bill would give
the Government power to dictate ac-
counting methods to industry" said
Mr.. Wellington. This provision does
not belong in bill designed to regu-
late StCuIlJItS tNtlIdliScS.
TT is a matter of such great i'm
portance that if it is to be consid-
cred at all it should be considered as
a separate problem
Bank to Pay Depositors.
Receiver John s. Bryan of the
North Capitol Savings Bank, which
has been closed for two years, an
nounces that l2l2 per cent dividend
will be paid to the banks depositors,
beginning tomorrow morning. This
payment will total approximately
S120.000, according to the receiver.
This is the second payment OF 12l2
per cent to be made available by the
North Capitol Savings Bank. pre-
vious dividend having been disbursed
last May.
Depositors will have to present re-
ceiver's certificates to receive this
latest payment, Bryan stated
Three other banks which went into
receivership about the same time as
the North Capitol were the Bank of
Brightwood. Departmental and Inter-
national Exchange.
Gas Bonds Lead Market.
Washington Gas SIS, 1860, led trad
ing on the Washington Stock Ex-
change today as the weeks business
opened. These bonds figured in 10
consecutive sales of $1,000 denomina-
tions, all made at l06. up a point
from the last previous sale. One
$1,000 transfer was also recorded dur
ing the session. at the same price.
The first sale of the day was also in
the same issue, $1,000 at the same
price.
The only other business on the
exchange was in Capital Traction
stock, 10 shares moving at 26ls, off
IA from the last previous sale. The
market closed with 26ls bid and q
asked.
Washington Railway & Electric
paid the $40 extra cash dividend on
the common stock today.