Evening star., 1937-10-21

q n.
"'''" =" '"" savings bank, he
entered the Bank of Italy, now the
Bank of America. Today he is vice
president and cashier, an official IN
several other important business con-
Germs and a member of the advisory
council of the Trans-America Corp.
The A. B. A. official was vice presi-
dent of the national bank division last
wear. is a former members of the eXecu-
five council and the bank management
commission and has been active IN
the American Institute of Banking. In
the California Bankers Association he
has been one of the leading spirits.
Residing in the most famous State
In the Union from the standpoint u
branch banking, he is prominent IN
the Masonic fraternity and belongs
to several clubs. He is married and
has two sons and a daughter.
Factors in Break in Stocks.
In his monthly letter to the Wash
tngton Association of Credit Men.
Henry H. Heimann, executive manager
of the national association, says he
thinks there were two chief reasons
for the break in the stock market,
first that the market was running
ahead of recovery, and second, the
drop in consumer buying. He explains:
"Stocks in many instances were far
too high. In some instances they
were selling at price that discounted
earnings in the present year, let alone
on an appraisal of average earnings.
If man runs 100 yards in 10
seconds it does not follow that he will
run 1000 yards in 100 seconds. Some
companies had peak or near-peak
wears in 1887 as respects earnings. 1t
is improbable that they could go on
setting the new records year by year
which the price of their stock seemed
TO indicate. The true investor realized
as much and a correction ensued.
Next it isn't the stock buyer, the
broker, or the industrialist who really
sets the sound value Of stock. 1t Is
the consumer who does that. When he
refuses to buy in usual or increasing
quantities the company that produces
the article the consumer needs finds 1t
sales falling off and its production
curtailed. Recently there were signs
that the consumer rebelled against
rising prices and refused to follow
them"
Large Delegation Forecast.
1t was stated in the financial district
TODAY that Washington will send a
stable delegation to the twenty-sixth
annual convention of the Investment
Bankers Association, at White Sulphur
Springs, w. Va, November 3 to Z.
President Edward B. Hall, Chicago,
SAYS that conditions prevailing in the
securities markets will make the con-
vention one of the most important in
wears. Regulation, taxation, general
investment problems, capital financing
and a host of other puzzling questions
will be fully discussed from every
angle, he says.
Safe Deposit Section Meets.
The second meeting OF the year OF
the safe deposit section Of the District
Bankers Association took place last
evening in the board room Of the
American Security & Trust Co., with
the chairman, Mrs. Helen r. Sharpe,
presiding.
Albert E. Fisher of the Riggs Ma
tional Bank addressed the section on
the modern protection of safe deposit
departments and some of the lax
methods in management that should
be corrected. He gave practical talk
and cited many cases where unsatis-
factory methods have proved harmful
to banks.
The new tax laws came in for an in
teresting discussion. The attendance
was unusually large.
Southern's Action Praised.
The Wall Street Journal today says
that one of the most bullish news de-
velopments relating to an individual
steam carrier which has come 70 light
in months was the announcement at
the Southern Railways annual meet
ing that the management had obtained
from the Reconstruction Finance Corp.
a commitment which will enable the
road to meet its near-term maturities,
providing satisfactory terms cannot be
obtained through private banking
channels.
The report shows that the Southern
will be able to take care of these debt
maturities without difficulty. In
cidentally, the Journal adds, the
bullish news on Southern was con-
sidered by many traders as exercising
tonic influence on medium priced
obligations of a number of other
carriers.
Financial District Gossip.
Today's opening upswing in the New
York stock market, with forced selling
and panicky selling over for the time
at least, aroused much enthusiasm in
brokerage houses here. Some of the
sharp overnight advances were con-
sidered too good to hold as the trans
lux revealed another very active
session.
The Chesapeake g. Ohio Railroad
for the nine months ended September
80 earned S3.19 share on the COM
mon stock, against S376 a share a
year ago.
President Hugh Leach of the Rich
mond Reserve Bank attended the
dedication of the new Federal Reserve
Building here yesterday afternoon.
Today's Trading on Exchange.
The new Washington Gas Light
preferred stock sold at 99A on the
Washington Stock Exchange today, a
single share for 997s. 1t has proved
to be one of the steadiest stocks on
the board ever since it was listed
Riggs National Bank common stock
moved today at 275 and Potomac
Electric Power 51a per cent preferred
changed hands at 11134. Capital
Traction SIS were in demand at u.
There have been just two 1O-share
sales of Washington Railway 81 Elec-
trio Co. common stock on the ex-
change this year. The first sale was
made at S725 share and the second
q few days ago at S625 share. The
ls-rs<1 a