Evening star., 1938-10-14

five million dollar mark and that loans
made during the fiscal year exceeded
S1.000,000. He stated that of this
amount the greater portion was used
in the financing of construction work
on new homes as well as purchase Of
new dwellings by the members. Divi-
dends approximating $135,000 were
paid to members while the purplus and
reserve accounts were substantially in
creased.
Shareholders complimented Secre-
'tarytary Kefauver. who was recently
honored by the District of Columbia
Building and Loan League by being
selected as delegate to the national
convention in Chicago, November
1918
Bond Bids Soar On Exchange.
Members of the Washington Stock
Exchange were commenting today on
the sudden jump in the bid and asked
prices on Anacostia g. Potomac River
R. r. 5 per cent bonds, due 1949, and
, a similar move in City g. Suburban IS.
The notable strength of the two issues
was ascribed to recent developments
having bearing on the status of these
bonds
/. Bids for Anacostia & Potomac
River r. r. SIS moved from 78 to IS
while the asked price jumped from 81
to 80. At the same time the bids for
City & Suburban SIS climbed from 78
to IS, with the asked price soaring
from 81 to 81.
Rarely in the history of the Ex-
change, members said today, have bids
for any bonds or stocks moved upward
80 rapidly. In yesterdays market the
prices at which the bonds were offered
moved forward just as fast as the bids,
50 that no sales were recorded. Holders
were unwilling to let the bonds go at
the former levels.
After being quiet for months, the
bonds suddenly came into the lime
light again. Answering a suit filed by
certain bondholders against the Wash
tngton Railway & Electric and the
Capital Transit Companies, attorneys
asked the District Court to dismiss
the action, which related to the La
bility of the utility concerns for the
bondA on statute Of limitations
grounds
The day after the plea had been
filed in court asking dismissal OF the
suit, holders Of both the Anacostia 81
Potomac bonds and the City g. Sub
urban bonds received letters from the
Baltimore National Bank, trustee under
the mortgage, stating that in the
banks opinion the Washington Rail-
way Il Electric Co. and the Capital
Transit Co. were liable for payment
Of these bonds.
Bank Takes Court Action.
Late yesterday the Baltimore Ma
tional Bank took the predicted court
action and filed a suit in District
Court here asking that the Washington
Railway & Electric Co. and Capital
Transit Co. be held liable for both
interest and principal on both bond
issues.
There are s2,552,oOO Anacostia &
Potomac SIS outstanding of which ST.
OCT 1000 are listed on the Washington
Exchange, and s1,676,0OO City g. Sub
urban SIS outstanding, all of which are
listed on the local exchange
The bonds are widely held by Wash
ington banks as well as by many indi-
vidual investors. Interest on the bonds
has always been paid regularly. The
bondholders are greatly pleased that
the matter Of liability has been placed
before the courts for determination.
An issue of Anacostia g. Potomac
River guaranteed SIS is also outstand-
ing, these bonds selling around 10 on
the Washington Exchange.
Gerald Keene Named Delegate.
Gerald E. Keene, Second National
Bank, chairman of the auditors Sec
ton of the District Bankers Associa-
tion, was elected delegate to the ma
tional convention of Bank Auditors
and Controllers at the first fall meet
ing Of the section last evening at the
Lafayette Hotel. The meeting is to be
held soon in Houston, Tex. Arthur c..
Linn, Hamilton National Bank, is
president of the organization.
Harry L. Downey, Washington Loan
d Trust, was named first alternate.
and James c. Elgin of W. B. Hibbs g.
Co. second alternative. Mr.. Linn out
lined the program at last nights meet
ing. Raymond G. Marx, Riggs Ma
tional, announced the sections pro-
gram for the coming year, and other
committee chairmen made important
reports. The attendance was unusu-
10 Ia =
was represented by T. Stanley Holland,
third vice president.
Today's Trading on Exchange.
Anacostia & Potomac River r. r.
bs 1949, figured In a $1,000 transfer
at 8712 on the Washington Stock Ex-
change today. This was a gain of 7I2
points since the last sale. The bonds
closed with 81 bid and 81 asked The
market closed with the bid on City
q Suburban IS standing at IS with
81 asked.
The Securities and Exchange Com
mission has set October ~ for hear
ing on the application Of the Wash
ington Gas Light Co. regarding is
suance Of ss,50o,000 per cent re-
funding mortgage bonds, due 1868.
The Atlantic Coast Line r. r. re-
ports net loss of 1859, 400 in the first
eight months Of 1888, against net
profits of 1922 a share on the COM
mon stock in the same period last
year.
Harold G. Moulton, president of
Brookings Institute, told the mortgage
bankers in Chicago that RESUMPTION
OF private investment is the greatest
single need for the restoration of pros
perity and improvement in living
standards.
Willard G. Barker, president of the
Morris Plan Bank, has returned from
the national convention at White Sui
phur Springs, W. Va. He reports most