Evening star., 1943-11-21
Paper Mill Proposes
|Lot's Sale 10 Pay
Back Interest
BY EDWARD C. STONE.

1OUAN lIIlVI VSI
BY EDWARD C. STONE.
Approximately three and one half
years of overdue interest on the out
standing 3 per cent first-mortgage
bonds of the District of Columbia
Paper Mills, Inc, will be paid in the
near future If plans just announced
are successful.
In letter to the bondholders,
G. L. Nicolson, president, states
that the company has an oppor-
tunity to sell for SIS, 900 cash a lot
not needed in the present conduct
of the business and If the sale is
made the proceeds will be applied
toward payment of the accrued in
terest on the $4,000 3 per cent
flrst-mortgage bonds now outstand-
ing. This would provide approxi-
mately 500 for the holder of each
81 900 bond.
THE management Of paper mills
and various bondholders who have
been consulted believe that the price
of $55, 600 is reasonable and that it
will be to the advantage of the paper
mills and of all of the bondholders
to have the proposed sale consum-
mated" the letter states.
THE deed of trust, however, con-
tains no provision authorizing the
trustee to release part of the real
estate from the lien of the deed
of trust. In an effort to obtain such
release and authority to con-
summate the sale, the Paper Mills
has had its counsel prepare form
of complaint to be filed in court and
a copy thereof is inclosed herewith
for your information.
"As therein shown, provision has
been made recently for payment
of interest on all outstanding bonds
through the year 1888 and, if the
sale is consummated. the court will
be requested to authorize applica-
ton of the proceeds of sale, $55 ,O00,
to the payment of interest on the
outstanding bonds Of the par value
Of $4,000 for the years 1899, 1910
and l94l, and to apply the balance
toward payment of interest cou-
pons due in 1912.
"Out Of earnings Paper Mills has
finally been able to pay a large
amount of taxes in arrears due the
District of Columbia government
and is now current in its taxes" MI.
Nicolson states.
| Loan Leaders Meet Tuesday.
The final meeting of the Executive
Committee of the District Building
and Loan League, before the an
nual convention of the United States
Savings and Loan League which
opens in Chicago next Sunday. will
take place Tuesday at the May
flower Hotel at 1890 pm.
The Washington delegates to the
Chicago meeting will be given final
instructions at that time in regard
to the annual election, Clarence E.
kefauver, league president, an
nounced yesterday. Except in few
cases In which the Washington
members are particularly interested,
1T Is understood the delegates will
go uninStructed.
The convention will take the form
OF a wartime conference, during
which present and postwar policies
in the building and loan field will
be fully discussed by experts. The
Capital delegation will number 25
Potomac Power Net Declines.
Net income OF the Potomac Elec-
trio Power Co. in October amounted
to $4l5,795.85, a decline of S23,-
921,24 or 5.44 per cent from October,
t1942, officials reported to the Public
Utilities Commission yesterday.
| Net operating revenues amounted
to $3.50 1866 40, up $71 ,28979, or 6.87
per cent. Operating expenses, how
| ever, of S938l2350 showed an in
crease Of s138. .52965, or 1913 per
cent. Depreciation called for So
o82 more than year ago, but taxes
OF Sl77,428 were down s64, 1923, or 6
per cent.
Net income for 10 months was
1881, ,l66, an increase of 1891 1926. or
| 10 per cent over the same 1912
period. Operating revenues of s18.-
768,47 were $1,558,277 ahead of last
year.
Operating expenses for the 10
months were Sl,078,334 higher than
last year. Depreciation reserves
called for s42l4l more than in the
like 1912 period, but tax payments
of s3,614,579 revealed a Slight drop
OF S25,96l, or OIL per cent, the re-
port stated.
Investment Changes Noted.
Consumer Banking Institute, Jack
son place, commenting on the
changes in bank loans from fewer
private loans to increased Govern
ment loans, says:
AT the end of June, 1929, there
were 25,100 banks in the United
States, but IA years later, in June, |
l943, this number had been re-
duced to 1859 On June 80, l943.
total bank deposits were a little
more than $4,000, 900 900, or 70 per
cent above that of 1929. Private
loans are now only about SIS per cent
of what they were in 1929 while |
investments held by all banks have
grown steadily. On June 80, 1943,
they totaled s66,O00,O 100000 or
almost four times what they did
in 1929.
These developments are signifi-
cant because Investments as used
here are almost entirely Govern
ment securities"
Dividend Voted on Preferred.
Directors of the National Mort
gage & Investment Corp, 1912 New
York avenue, have declared a divi-
dend of Is cents a share on account
of accrued dividends on the prefer
red stock, payable December Is to
stockholders of record December 4,
/ Incerh q Cnho & r,raciiont a.,