Evening star., 1935-06-21
BROWN TO HEAD
VIRGINIA BANKERS
Salem Financier Named to
Succeed Pierce at An.
nuaI Meeting.
BY EWARD C. STONE.

three-day session at Hot Springs this
noon. He is president Of the Farmers
National Bank of Salem, Va, and
succeeds Carroll Pierce, president of
the Citizens Bank of Alexandria.
J.B. Day, jr, senior vice president
Of the Bank of Commerce Of Norfolk,
was elected vice president and c. w.
Beerbower, assistant cashier of the
First National Exchange Bank, Ro-
anoke, was reelected secretary, a
position he has held for many years.
Thomas D. Neal of the firm of Scott
& Tringfellow, Richmond, was named
treasurer.
The convention was concluded with
passage of resolutions and the pres
entation of several annual reports.
Better bank management, stresSing
the reduction of costs and prevention
of waste, and the latest methods in
conducting trust service were among
the convention high lights. Compen-
sation for trust service should be
based on costs and the degree of re-
sponSibility assumed and at the same
time be made uniform, speakers on
this subject declared. Trust officers
must avoid the extreme positions of
being mere safekeepers on the one
hand and being spectators on the
other.
While legally bonding codes have
apparently been thrown out of the
window, the bankers implied that their
own code will be continued under a
gentleman's agreement, the best
course to pursue for all practical pur-
poses.
Service Charges Defended.
The Old Dominion fnanciers were
warned against dangerous loans, urged
to analyZe operating costs and prevent
waste, in an address by Fred G..
Berger, member of the bank manage
ment commission of the A. B. A. He
defended service charges and said too
little emphasis has been placed on the
value of checking account services.
He urged a continued policy of
public relations to Offset the unjust
accusation" that the banking fratern-
ity is responsible for everything that
has happened during the depression
years"
C. C. Mccall of the First National
Bank at Norton, Va, speaking on
''How a Country Bank Can Diversity
Its Risks" warned against dangers"
In loans among directors; loans on
local stocks and bonds; loans on bank
stock including your own stock" and
real estate loans.
The condition brought about by
loans among directors. he said, has
been taken care of by legislation, "but
we still have the old loans of this
type" There is no demand for col
lateral such as local stocks and bonds
II there comes time to unload un-
less they are carried at bargain
prices" he explained.
Many Good Loans Lost.
His bank Mr. Mccall said, has al
lowed the H. o. L. C. and the F. H. A.
to take away most of the good real
estate loans" Many bad ones have
gone, too, he said, but we failed to
hang on to the good ones" The aver
age banker in the past, he said, has
seemed to want the property appraised
as high as possible, and then make
the loan as liberal as possible" These
loans, he said, should be made in small
communities on the basis of what the
average small home would be worth.
mo loan,'' he asserted, sis sound
unless based on sound collateral at
the time of making it." He warned
against loans to people who in the
''future" will inherit money.
Thomas H Blanton, president of the
Union Bank & Trust Co. of Bowling
Green, expressed the belief that mo
worthwhile customer or depositor will
complain about a proper service
charge if proper explanation is made
to him"
Code of Ethics Effective.
Richard G. Stockton, vice president
and associate trust officer Of the
Wachovia Bank of Raleigh, N. c., de-
clared that "our code of ethics, hav-
ing been voluntarily drafted and
adopted by our trust division, is still
HS effective as ever"
The speaker declared that before any
institution decides to enter the trust
Aeld, "it should first make thorough
survey in order to determine whether
there is enough profitable business
available to justify setting up the re-
quired standards of equipment and
personnel"
1t is serious mistake, he said. for
any institution to engage in trust busi-
ness and expect some banking officer
to take on the trust officers duties as
p sideline.
Fisher Heads Trust Group.
At the sixth annual meeting of the
safe deposit section of the District of
Columbia Bankers Association, held
last evening, in the board room of the
American Security g. Trust Co., the
following were elected members of the
Executive Council for the ensuing
year:
Albert E. Fisher, Riggs National
Bank; John F. Hillyard, National Bank
of Washington; Andrew r. Walden
Hamilton National Bank; Mrs. Helen
r. Sharpe, Bank of Commerce & Saw
ings, and P. c. Brady, American Sc
curity & Trust Co.
The Executive Council elected the
following officers: Albert e. Fisher,
chairman; John F. Hillyard, vice
chairman, and Helen r. Sharpe, secre-
bary.
Richard e. Harris, retiring chair
man, made very interesting report
on the convention of the National
Advisory Council held in Asbury Park.
MFR. Harris received many congratula-
Gions on the excellent work done dur
ing the past year.
Thomas ]. Groom, second vice presi-
dent of the District of Columbia
Bankers Association, congratulated
the section on the enthusiasm of the
members and the fine results of the
past few years.