Evening star., 1938-09-08
D. c. REPAIR LOANS.
CONTINUE TO RISE.
Banker Association Reports
LAPS, Gain of ESQ
During Month.
By DONALD b. HADLEY.

Dy DOA>ALD I1ADAL1
The volume of loans made by Wash
ington banks under Title I of the
amended National Housing Act is con-
tinuing to grow, according to the
credit bureau of the District of Colum-
bia Bankers Association.
The bureau reports that loans made
by member banks of the association
to date had reached the imposing
total of 1925 since February g., when
the amended act went into effect.
The new figure compares with total
of 1165 reportd by the bureau on
August 8 and represents an increase
of $50 over the same date a month
ago, or an average gain of more than
so loans a week
Title I loans are for repairs. alter
ations and remodeling work and they
have proven to be an important factor
in paving the way for many recent
property Improvements over the city
The campaign launched earlier this
year by the Bankers Association to
increase the number of Title I loans
apparently is bringing very substan-
tial results.
F. H. A. Report Similar.
A report from the Federal Housing
Administration on the amount of
Title I loans from February to
July 81, reveals the same upward
trend.
The F. H. A. announces that all
lending institutions with head Of
fees in the District had made 1919
loans amounting to s536,7S7 on July
81, compared with $50 and volume
of s4l9,0S3.31 on June 80.
1t also announced that on July 81
lending institutions, with head Of
fees not necessarily in the District,
had made 1888 loans on District prop
erty, which amounted to S375,6l4,
compared with 669 and $2S5,326 on
June 30.
Over-Subscription Forecast.
The $780, 900 900 Treasury cash offer
Ing scheduled for September Is will
be oversubscribed and should go to a
premium of l p points if war does not
break in Europe. it was predicted in
the financial district today
The banks will go along with the
Treasury program in the past it was
said, although the danger of trouble
abroad is a very real one Bankers
believe that markets would be COM
pletely demoralized for the time being
by any major outbreak and that it
would be impossible to market the new
Federal ISSUE However, they appeared
ready to take the risk
The Treasury program, announced
this morning, was in line with expec-
tations of bankers and financial OBJ
servers. Terms were regarded as
favorable
A. I. b. Dinner Tonight.
Washington Chapter, American In
stitute of Banking, will hold its annual
fall educational meeting at the Colum-
bia Country Club tonight at $50
o'clock Leading bankers, chapter
officers, the board of governors, in
structors, committee chairmen and
consuls representing various banks,
will attend.
The dinner marks the beginning of
the new season of the chapter. The
institute, a section of the American
Bankers Association, was founded in
1900 and the District chapter was Or
ganized in the following year Its pur-
pose is educational and each year in
struction is provided in banking, eco
nonics and kindred subjects
In the next week, the purposes of
the institute will be presented before
bank employees over the city and enroll
ment for the fall classes will start.
S. E. c. Ruling Studied.
The Securities Exchange Com
w. c. Langley g. Co.. in connection
with the sale of the Eazleton Water
Co. stock control by the Lehigh VAL
ley Railroad Co., to the Northeastern
Water & Electric Corp, deserves more
than passing attention among cor
poration directors. 1t clearly out
lines the S. E. c. attitude on this i'm
portant subject under the Holding
Company Act.
w. c. Langley, partner in the
firm claiming the fee, was director
of Northeastern Water g. Electric
during the period in which the ne
gotiations were carried on and a con-
tract Of sale was completed. The
commission contended that brokers
brought the Hazelton property to
Mr.. Langley's attention, that he
failed to disclose full details regard
ing the sale at Northeastern board
meetings, that under an agreement
made July II, 1898, Mr.. Langley
would receive $4,000 indirectly, and
ruled that an additional claim of
,$25,000 was unreasonable. 1t ap-
proved the $4,000 to be paid indi-
rectly as a reasonable charge for Mr..
Langley's services in finding a pur-
chaser for the Hazelton firms bonds,
which Northeastern did not care to
acquire.
Responsibilities Cited.
Ing interesting comment in the case:
1t is clear, as matter of law and
Justice, that directors duty to his
company rises higher than personal
proflt. He owes it an obligation to
perform services with a view to it's
rather than his welfare, and, above
all, he owes it an obligation to deal
with it with absolute candor. His
dealings with his corporation are not
at arms length. They must with
stand minute scrutiny; and at the
very least, the director must be pre-
pared to demonstrate that any charg-
es which he makes for extraordinary
services are exactly reasonable. No
lesser standard is to be applied under
our act than prevails at equity"
Bank Manuel Ready.
Johnston Lemon & Co., members of
the Washington Stock Exchange. an
nounces that the second annual edi-
ton of "A Manual of Washington
Bank Stocks" is ready for distribution.
The booklet furnishes a brief history.
list Of officers and directors and capi-
talization of each of the % banks here.
1t also gives a four-year comparison