Evening star., 1934-02-25
Washington Exchange AC-
ton Taken as Indication
of Upturn.
TRACTION SHARES SOAR
TO ANOTHER NEW PEAK
Eugene Thompson, D. c. Finan'
cier, Joins Critics of Control
Bill at Hearing.
BY EDWARD C. STONE.

BY EDWARD Z. SIONE.
On account of steadily growing
business in securities in the Capital,
the Washington Stock Exchange yes
terday resumed Saturday sessions
which have been omitted most of the
time since the 1929 break.
Yesterdays session was notable be-
cause of the fact that Capital Trac-
ton stock reached another new top
in connection with its present ad-
vance. The new peak price was
26A.
Traction opened with a small lot
changing hands at 25la, a gain into
new ground of three-eighth of point
over the last sale on Friday. On
the next sale 10 shares moved at 26
fat. while the closing transfer was
made on quarter point advance.
The week closed with 2512 bid for
the stock and % asked. Since the
Capital Transit Co. issued its report
covering December and January, very
little Capital Traction stock has been
for sale. The report showed a star
ting increase in earnings of the street
railways under consolidated opera
tions
Capital Traction stock opened the
present year at 14l2, so that it has
gained 1874 points so far in 1884. At
one time last year it was down around
6. Years ago it sold well above par,
and paid per cent dividend.
The only other sales on the ex-
change yesterday were in Potomac
Electric Power 51a per cent preferred,
which brought 1075s, and in Wash
tngton Railway & Electric As, $1,000
going at 8812, up a half from the
last previous sale.
Thompson Raps Control Bill.
Eugene E. Thompson Of this city,
president of the Associated Stock Ex-
changes and member of the Wash
ington Stock Exchange, added his
condemnation of the proposed bill to
control all exchanges, as it is now
worded, before the House Interstate
Commerce Committee, at Fridays
hearing. The witness warned the
committee that passage of the pro-
posed measure in its present form
would be certain to be followed by
''an avalanche of selling
The Washington flnancier told the
committee that the stock exchanges.
under their own guidance, have been
bringing out funds for the develop
ment of corporate enterprise A
toIIC To- W.
serted, will call for a great amount of
capital. The bill now under consid-
Grafton, he said, is not conducive to
'free and open market for the
fow of such capital"
Up to a certain point the invest
ment dealer explained, he and his
organization of stock exchanges are
sympathetic to the purposes of the
bill, but there are many of it's pro-
visions which they feel would be
highly injurious.
Fears for Small Markets.
"You do not cure hiccoughs," the
witness remarked "by severing the
head of the patient. I am not at
tempting to make out clean bill of
health for the exchanges, but they
have been maligned far beyond their
Just deserts"
Mr.. Thompson said that quite
few small exchanges" might be forced
to close because of the section of the
bill segregating the functions of
broker. dealer and underwater.
Discussing the proposed regulatory
measure in general way, the wit
ness said that unless modified in sev-
eral material respects, it will give us
a law so restrictive in the handling
of securities that the market places
for corporate capital so necessary to
the country's economic welfare at all
times, and so doubly necessary at
present, will discover themselves so
hampered and thwarted in their
proper and legitimate functions, that
it will be impossible for them to re-
tain their vitally important position
in the industrial and economic
scheme.
Offers No General Defense.
81 have come here with no blanket
defense of stock exchange practices"
Mr. Thompson told the committee.
''The exchanges have offended, un-
doubtedly, for they, in their relation
ships with members, the members in
turn being in contact with the pub
lie at large, are dealing with condi-
tions and circumstances as diverse
and ramified as human nature ITSELF"
he asserted.
AS president of the Associated Stock
Exchange, Mr.. Thompson represented
IL of the leading smaller exchanges
in the country, such securities mar
kets as those in Washington, Balti-
more, Pittsburgh, Detroit, Cleveland,
Cincinnati and st. Louis.
He helped organize the association
and had been head of it for about
five years. Many matters of impor-
tance to the members have been
taken up that could not easily be
dealt with through big exchanges,
like those in New York or Chicago.
Gossip in Financial District.
The District Bankers Associations
Council of Administration holds a
regular meeting this week The ques-
tion of where to hold the June an
nual convention is one matter now
under consideration. President Vass
and his associates are likely to set
tie the question soon.
The Bank Women's Club of Wash
1ngton will hold its February meet
ing tomorrow evening at the Iron
Gate, beginning with dinner at s. The
president, Mrs. Judith M. Fishburn.
announces that Miss Mae Helm, new
assistant corporation counsel of the
District Liquor Board, will be the
guest speaker. She has been given
very wide range in the selection, of