Evening star., 1940-07-21
Capital Transit Co.
Given Exemption 10
Purchase Bonds
Company Is Acquiring
Blocks Of Traction IS
For Retirement
By EDWARD C. STONE.

The Capital Transit Co. has been
granted exemption ny the Securities
and Exchange Commission from the
provisions of Section 9 ta) Of the
Holding Company Act of 1885. the
ruling just made public giving the
company the right to acquire its
own bonds. at market prices, from
time to time for retirement purposes.
In substance. Section 9 forbids the
purchase under certain conditions
by a public utility concern of more
than l per cent of its own securities
in any one year.
AS the Capital Transit Co. is a
subsidiary of the Washington Rail-
way & Electric Co. and the North
American Co.. both registered hold
ing companies, the transit company
filed an application with the COM
mission asking for exemption from
provisions of the Holding Company
Act in connection with the purchase
Of the bonds. G.. Thomas Dunlop, sr :,
appeared for the company at a
public hearing and E. M. Calkin for
the commission.
The Capital Transit Co. is buying
up portions of the bonds known as
Capital Traction SIS, in the open
market, putting the same amount
of money into the bonds that it
is paying out in dividends to the
stockholders, a policy adopted by
President Edward D. Merrill and his
directors last year.
Capital Traction SIS are listed on
the Washington Stock Exchange and
in relatively good demand around
102.
Banking Legislation Status.
One OF the best summaries of the
status of banking legislation now
pending in Congress says:
THE Federal savings and loan
bill, H. R. 697l, has been passed by
the House, and the Senate Banking
and Currency Committee has been
conducting hearings on a new Fed
eral savings and loan BILL S. 4095
introduced by Senator Wagner.
The substitute farm credit bill,
containing none of the seriously
Objectionable features of the origi-
nal Jones' s-Wheeler bill, has passed
the House. The Senate Banking
and Currency Committee now has
this bill and the original Wheeler
bill before it, but has taken no final
action on either of them.
THE amendments to the Re-
construction Finance Corp. Act has
been passed by both the House and
the Senate and are now in con-
ference. However, both of the con-
troversial amendments relating to
real estate loans by national banks
snd the purchase of preferred stock
of banks by the r. F. c. have been
eliminated.
Other Bills Await Action.
"The Steagall bill amending the
Federal Deposit Insurance Law is
still in the House Banking and Cur
rency Committee. The time of ad-
;ournment of Congress will probably
be the deciding factor as to the
changes of enactment of the bill at
this session. A..
'The proposal of Senator Mead to
provide additional credit facilities
for small business through the
broadening of the powers of the
Federal Reserve Banks to make
industrial loans under Section 13b
of the Federal Reserve Act came to
life again in the form of hearings
on S. 1899 by subcommittee of the
Senate Banking and Currency Com
mittee.
Chairman Eccles of the Board of
Governors of the Federal Reserve
System testified in favor of the
bill. Chairman Virgins of the Com
mittee on Federal Legislation of the
American Bankers Association ap-
peared and demonstrated that this
legislation was not needed, since
the commercial banks of the
country were prepared and had
resources available to meet every
legitimate demand for credit"
Dividends Reach S14,272,771.
Mid-year dividends of the regional
Federal Home Loan Banks, which
have just been declared. have
brought the total paid by them on
their capital stock since their estab-
1ishment in 1882 up to $14,272, TIL
officials of the Federal Home Loan
Bank System announced yesterday
The United States Treasury has
received s11,183,336 of this amount
on its share holdings in the banks
and s3os9,435 has gone to member
institutions of the banks.
Ten of the IL banks declare then
dividends semi-annually and these
institutions distributed $706063 fol
the January-June period of 1910.
The Federal Home Loan Banks o1
Winston-Salem and Pittsburgh de.
clare their dividends annually, al
the close of the calendar year.
Heard in Financial District.
E. Percival Wilson, secretary o1
the National Savings & Trust Co.
is spending his vacation at Ocear
City, Md. w. Hiles Pardoe, rea
estate officer of the same. bank
leaves here today for motor TRIP
through New England. Two as.
sistant trust officers, Herman G
Lauten and Lester A. Lawrence, alst
are on vacations and Osmund L
Varela, assistant treasurer return!
tomorrow after three weeks at Tai
Timbers, Md.
The Securities and Exchang,
Commission has rejected nationa
defense as grounds for withholdin.
the death sentence" against hold,
Ing companies.
Steel Scrap Reduced
50 Cente Per Ton