Evening star., 1935-05-25

governors.
Mr.. Lemon, the new president, Is a
partner in the investment firm OF
James M. Johnston e. Co., members
of the Washington Stock Exchange
and local correspondents of Spencer
Trask g. Co. He is a native of Wash
ington. attended Central High School
and graduated from Princeton Uni
versity in 1925.
His first financial position was with
Spencer Trask in New York, later
coming with Johnston & Co., here.
He has been active in the Washington
Bond Club since its organization and
also has a seat on the Washington
Exchange. While at Princeton he
was very prominent in foot ball and
basket ball, being rated as an all
American forward in his senior year.
Yesterdays outing was given over
largely of golf. putting, horseshoe
pitching and spirited mock session
OF the Washington Stock Exchange.
Two hundred memberships on the ex-
change were sold in advance, some be-
Ing resold at double the original price.
As a result of the trading session.
Ben Mitchell of Gillet e. Co.'S Balti-
more office. was awarded new Ford
automobile: 5000 in silver was pre-
scented to John Calvert. National Saw
ings e. Trust Co., and the Bobby
Jones golf clubs went to Thomas J..
Groom of the Bank of Commerce a.
Savings. The Bond Club Golf Cup
was won by L. Clark Brown of Brown,
Goodwin & Co. In the horseshoe
pitching contest, Paul Reemey was
first and James H. Lemon, second.
while L. w. Hurd took first prize in
putting and John Garner came in
second
Riggs Cuts Savings Interest.
The Riggs National Bank has noti-
fed customers that effective June l
the rate of 21e per cent on savings
accounts will be paid only on ball
ances of 1000 or less and that in the
future l per cent will be paid on
balances in excess of $1,000. The
bank has been paying 2l2 per cent
on accounts up to $4,000.
The notice to savings depositors
calls attention to the steady decline
during the past few years at which
money can be employed and the lack
OF demand for credit accommodations,
even at the unusually low rates: also
to the continually lower rates at which
Government and corporate securities
are being refunded.
An illustration of this fact, the bank
says. is the calling by the Secretary
of the Treasury on July l Of the
Home Owners Loan Corp. 4 per cent
bonds of 1851; holders of these bonds
who do not desire to redeem them
for cash being offered in exchange
four-year IL per cent notes.
Because of the lack of demand for
credit and the low yield that the
bank can earn on savings deposits,
the Riggs communication states that
1t Is no longer considered practicable
to pay the same interest rates on
savings accounts that have been paid
heretofore. until such time as saw
ings funds will earn a more ade-
quate return. The action is similar
to that taken by many banking in
stitutions throughout the Nation.
Recent Survey Cited.
It should be borne in mind that
Riggs National will continue to pay the
maximum rate of az per cent per-
mitted by Government regulations on
all savings balances up to $1,000,
which means that the change in rates
has no effect on 80 per cent of the
banks depositors. Notices are being
sent only to depositors who have
more than $1,000 in their savings
accounts and only the portion of their
balances over 81 900 will be affected.
According to a recent survey cover
ing So Reserve cities located in differ
ent sections of the country, the maxi
mum interest rate permitted by Clear
ing House rule is 2 per cent in 33
Of these cities and IL per cent in
another. The Washington Clearing
House Association has taken no re-
cent action in following this general
trend. 1t was said in the financial
district today, however, that as indi-
vidual banks several are likely to
follow Riggs example.
The notices stated that the former
interest rates on savings accounts
would be restored just as soon as
earnings will permit, that is, when the
demand for credit improves and
money rates again turn upward. 1t
Is hoped that time will come soon.
Washington Gas Net Of
The monthly report of the Wash
ington Gas Light Co, filed with the
Public Utilities Commission, shows net
operating revenue for the month OF
April of s196,809, compared with
$l98,267 for April Of last year, a de-
crease of $1,458.
Operating revenues for April, $751;
242. compare with $577,154, an in
crease of S14,088. Operating expenses,
including taxes and uncollectible bills,
increased S15.546, this years, figure
being $394,433, against s378,8S7 in
April, 1884.
Incorporating revenues for April
this year, decreasing s5,784 from last
years total of $9,211 to $3,427, re-
suited In a gross corporate income OF
5000. .236. as compared with $2O7.478
for April, 1884. decrease of $7,242.
Interest deductions of $72,185 for
April. 1885, were $1.771 more than
last years figure of $70,414. resulting
In a net income of $128,051, compared
with $l37,064 for April, 1884, a de-
crease of $9,013.
The monthly report of the George
town Gas Light Co., also filed with
the Public Utilities Commission yes
terday afternoon, shows a net in
come of $7,84s for the month OF
April, 1885, as compared with $1.94S
for April of last year, an increase
Of $5,8e1.
Operating revenues this April were
Sl27,l41 as against S123,0S6 for April,
1884, an increase Of $4,055. Operat-
ing expenses, including taxes and un-
collectible bills, decreased $2,793, this
years figure being s114,859, against
$117,652 for April, 1884.
incorporating revenue decreased
$l,725 this year over last year, re-
sulting in a gross corporate income
of $12,283, compared with S7,l6O for
April. 1884, an increase of $5.123. In
terest deductions decreased s768, this
years figure being M,434, against
$500 for April, 1884.