1933-12-08 — Page 9

14

SUPPORT FOR PRES. ROOSEVELT

Urged By Chairman Of National City Bank

REDUCE EXPENSES AND INCREASE RESERVE

The following is the full text of a letter mailed on December. 5, to the shareholders of the National City Bank of New York by the Chairman of the Board of Directors, Mr. James H. Perkins,

New York, December 1. To the shareholders: "In these times the obligation of a commercial bank to its deposi- tors, customers and shareholders is to pursue a. conservative polley and maintain an adequate degree of liquidity to reduce expenses

and to increase reserve.

"In the eight months since I last wrute to you, we have pro- ceeded on these Enes. Expenses. including officers' salaries, have been and are being cut. and methods of operation simplified, with resulting economies and increase in efficiency.

"Our." directors feel that the Bank should support the Pre- sident of the United States in his programme of strengthening the capital structure of the banks of the country and in his campaign to bring about business" and in- dustrial recovery. They also feel that we should accept the offer which the Government has made to purchase preferred stock in the national banks.

In connection with this offer the President said: "I understand that the question has been raised in some quarters that the Govern- ment wants control Di banks through ownership of preferred stock.

!

"Nothing could be further from the truth. The Government only wants to help provide banking capital adequate to meet the credit needs of the country, and through buying, and lending upon preferred stock and capital de- bentures, It accomplishes this without undue demands on present

April that a complete, separation of operating a personnel had taken place between the Bank and the National City Company of New York. Since then the latter has moved to other offices, changed its name to the City Company of New York Incorporated, and a separation of directory has occur- red, but, on account of the times, progress towards disposing of the Company or of its business and facilities has been slower than wAS. anticipated. Steps to realise on the material values which exist will be continued during the period allowed by Law.

In order that the trustees will hold the stock of the Company. and the Board of Directors of the requisite power to deal with the situation as it may develop, a consent to the amendment of the Trust Agreement is enclosed for your signature.

HONG KONG DAILY PRESS, FRIDAY, DECEMBER 8, 1933.

MR. PEEK TO RESIGN?

More Dissensions And Threats

NO TALKS WITH GERMANY!

France Strongly Determined

Paris December 7. It is believed that France is determined not to talk with Ger- many & without, first consulting her friends and Dr. Benes arrives on December 14, on an officia

a. re-

New York, Dec. 1. Internal strife in the Department of Agriculture, a vigorous new at- tack on the monetary polley by Ogden Mills; as well as dissension in the Treasury äre the latest visit. developments. Mr. Peek, the Farm' The British Ambassador's con Administrator, gave an ultimatumversations with Herr Hitler' on to Mr. Wallace, threatening re- | December 5, are taken to mean signation unless the Department of that London hopes to see a direct frigulture removes cèrtr'n mem- Franco-German Disarmament bers of the Britain Trust, Mr. Peek Agreement, even at the price of later conferred with President German re-armament - and duction in French strength Roosevelt.

The Petit Parisien declares it t

any that Mr. Peek had differences with very risky to embark on

and also Professor Tugwell and Mr. Jerome Franco British views

Government's firm Frank, Counsel for the Farm Ad- the British ministration over the Administra-resolve to act subsequently in tion Codes, especially the Packers agreement, with France. Rather Code.

no League, than a League uniting Later, It was announced that all Italo-German Imperialism.

Codes including theclares Echo-de-Paris, commenting Recovery Agricultural Code be turned over on the Fascist Grand Council resolution that London's" compll- city may be regarded as certain, but Paris has the last word, and France has only to stand by the

"It had been known for some time

to Gen Johnson.

Meanwhile Mr. Mills declared that the rise in prices in the domestic market is no greater than what was normally expected accompany the gradual emer- gence from the extreme of the depression.

de-

|

LAHORE JAIL EXECUTION

Questions in House of Commons

Landon, Dec, 7.

Messrs. R. H. Bernays and. C. H, Summersby, members of the Liberal Party, will ask Sir Samuel Hoare in the House of Commons on December 15, for particulars regarding the case of the con- demned prisoner who was executed in Labour Jail on November 21, laat-Reuter

NORTH IRELAND NEWFOUNDLAND

"PARLIAMENT

Unionists Hold

Majority

d A

AFFAIRS

Free Grants Up To 1936

London, Dec. 7. The Financial resolution in re- gard to Newfoundland Affairs will be moved in the House of Com- mons to-day and the White Paper

the resolution. states

explaining that is proposed that any grants. made up to December 31, 1836, shall be free grants but, that any advances required after that date shall be on such terms as the Treasury may determine. In re- gard to the Newfoundland Public Debt, the Memorandum states that the amount of the principal of new tock proposed to be guaranteed and by the British Government is ex- pected to be between £17,000,000 Dublin, December, 7. and £17.500,000.--British Wire- The Irish Press." the official) less, Government organ.... insists that

Belfast. December 7, The new Northern Ireland "pan lament has been completed by the election of four members from the Queen's University. Bel- fast, of whom three are Unionists and one Independent. This in volves no change 23 compared with the previous representation. The final State Parties are, Unt It will be remembered that the ionists thirty-six ས་ compared Punjab Government announced with thirty-seven of the previous with great regret" the execution Parliament, Independents 3-3, re-

condemned prisoner on No-

spectively. Labour 2-1, National- vember 21, at the Lahore Centralists 911, Republicans 1-0 Jail when orders postponing the Fiana Fail 1-0. execution were issued the previous day.

Following an application to the for fling an appeal, authorities. ment ordered a postponement of the execution but the sentence was carried out before the order

vas opened at the jail office.

Privy Council of the Govern

the present Anglo-Irish Relation- NEW HOME FOR

GERMAN JEWS

ship must and will change be.. fore there can ever be equal" and The paper friendly co-operation." deules any likelihood of an early

general election.--Reuter.

fundamental rule of territorial BRITISH PLANES CHINA TO JOIN?

integrity in all states as Iaid down by Article X of the League Covenant-Reuter.

SILVER MARKET

The dollar has devalued with the solemnest repudiation of the solemnest Government obligations. ut the effect on domestic price levala was insignificant. Mr. Mills urged the return to the gold stan- dard on the grounds that the world needs a stable exchange medium (From Our Special. Correspondent) because of the basic forces work-

ng towards a recovery.-Reuter.

"You will also find enclosed a formal notice. of the annual meeting of the shareholders "of the Bank to be held on Tuesday. January 9, 1934, Attached there- to are proposed amendments to VICTORY FOR MR. PEEK? the Articles of Association of the Bank which “get forth, among other things, the terms and pro- visiona of the new preferred stock.

-

From these you will note that the preferred stock is retirable in whole or in part at par and ac- crued' dividends, and that an ar nual retirement fund is provided "from earnings. It is not thought that the annual requirements for preferred dividends and the re- tirement

interferè fund should with reasonable dividends on the shareholders." (In the case of common stock even under presen National banks, the "Reconstruc-conditions. As preferred stock is tion Finance Corporation is only retired, the value of the common "authorised to purchase preferred stock will correspondingly in

stock).

"We are proposing that the Bank co-operate with the President's programme; that it increase its capital stock by issuing and sell- ing to the Reconstruction Finance Corporation at par and accrued dividends, (subject to being first offered to our own shareholders), $50,000,000 of Ave рег cent. cumulative preferred stock, and that at the same time decrease the common stock from $124,000,000, to $17,500,000 by changing the par value from $20 to $12,50 a share without, however, changing the number of shares outstanding.

"The Comptroller of the 'Cur rency and Federal Reserve Board, which will have jurisdiction in the matter, have given their approval on condition that the capital re- leased by such reduction of the par value of the shares be applied to writing down asseta and that no distribution on account thereof be made to the shareholders.

After using the released capital in this way and applying and readjusting, the new set-up will be:

Preferred Stock Five per cent. Cumulative, $50,000,000, the par value of the shares being 820 (2.500,000 shares).

Common Stock: $77,500,000, the par value of the shares being $12.50 (6,200,000 shares)...

Surplus: $30,000,000. "Undivided Profits: About 85,000, 000.

The total is $162,500,000 and. In addition unallocated reserves, not appearing in the statement, of about $40,000,000.-

With the adoption of the plans, the assets of the Bank will be car- ried at conservative values and it will be reasonable in my judg- ment, to expect substantial re- coveries with the return of more normal conditions.

The book value of our common

stock on the new basis, including the net worth of the City Bank

and Farmer's Trust Company, but excluding the $40,000,000 general- reserve and any interest in the City Company of New York. Id corporated (formerly the National City Company),' will be in excess of $21 per share.

"On the plan becoming effective

crease.

"As the Reconstruction Finance Corporation has agreed to pur- chase the entire $50,000,000 of preferred stock you are not obt ligated in any way, or solicited to subscribe. However, the Board has directed that such preferred stock be offered pro rata at pai and accrued dividends (if any), to the shareholders on the record at the close of business on Decem ber 15th, 1933. and that such shareholders shall have the right so to su scribe and pay for such preferred stock up to and includ ing January 9th, 1934. Subscrip- tion forms will be supplied on ret quest.

EXCHANGE OF SHARES.

of

New York, December 7. "The main issue of the Agricul tural Department dispute is wher ther the Farm Administration will continue as part of the do partment headed by Mr. Wallace or become an Independent agency under Mr. Peek, who is a. close friend of Gen. Johnson, Mr. Roose-

London, December 7. Following are the Silver. Quota- tions on the London market to- day:-

*

Spot

Forward

Dec. 7 Dec. 6 18.11/18 184 18.11/16 18.11/18 The London on New York cross £=U.S. rate to-day closed at 5.108...

Find Favour in the Continent

London, Dec. 7.

The eight aeroplanes constract-

International Tin Committee

Paris, December 7.

In Eastern Siberia

M

Moscow: December T Smidovitch vice-President of the Soviet Union has announ-- ced that Russia has a offered a refuge to German-Jews seeking new homes. inviting them to par- ticipate in building up an auto- nomous Jewish republic

the name of Birobidjan.

under "

The proposed new state is situm- ted in the eastern section of

ed for the Egyptian Government in The .main problem before i Siberia, bordering Manchuria and England arrived in Cairo to-day the International Tin Committee, will be proclaimed when 30,000 where their landing was witnessed | which is meeting to-morrow, is Jews have settled therein The by King Fuad, members of the Ca- whether the production quota of territory covers 10,000,000 acres binet and a large crowd. Orders | each signatory country will be was allotted under the 1928 Agree- have been placed by Denmark, forty per cent of the 1929 pro- ment for Soviet Jews desirous of Portugal, and Spain in the last duction or more, for the first three establishing a Jewish republic. few days for De Havilland Tiger months of 1934..

Reuter. Moth light biplanes to be used for Another question is the possible | the training of service pilota. | adhesion of countries who are not Four have been ordered by Spain. at present members of the Com- seven by Denmark and ten by mittee.

Portugal Denmark in adithion,) While omcial circles are silent. has ordered two twin-engined it is probable that negotiations Dragon biplanes, modified for are now going on with non-mem- bers, including China and Belgian Congo Reuter.

velt's action in turning over all JAPANESE TRADE itary purposes-British Wire-

victory for

NIRA. codes to Gen. Johnson is taken to indicate a Mr. Peek. Whether the transfer will settle the cleavage depends

COMPETITION

on. Mr. Wallace's subsequent att Discussed in House tude.Reuter

U. S. FINANCIAL OBLIGATIONS

!

of Commons

London, December. 7. Japanese competition with Washington, Dec. 6.

British manufacturers in the Do- The re-financing of the heavy minion markets was again dis- obligations falling due on Decem-cussed in the House of Commons ber 15 is to be postponed, techni- last night. cally, for twelve months.

Dr. L Burgin, replying to an The Treasury Department to-day allegation

that British trade announced the issue of $950,000,000 marks had been imitated by Ja- of Certificates of "Indebtedness, panese firms, said that if British dated December 15, bearing inter-makers' registered trade marks est at the rate of 2 per cent. and were infringed, action would be maturing on December 15, 1934.

The loan will be used to meet certain of the obligations falling due in a week's time, namely, the outstanding Treasury loan of 473,328,000 dollars, bearing four and a quarter per cent, interest, and $254,364,000 bearing interest at the rate of three quarters of one per cent.

expected soon.

MORE DISSENSION Meanwhile, dissension has again fared up in the Treasury Depart- ment.

Upon completion of the plan you will be asked to send in your present certificates of stock in the

The re-financing plan does not, bank to be exchanged, share for however, mention: 81,000,000,000 of share, for new common stock cer- Fourth Liberties still outstanding, tificates. These will bear an ent but a bond issue in exchange is dorsement giving evidence beneficial interest in the City Bank and Farmers' Trust Com- pany, the capital stock of which (other than directors shares) will continue to be held in trust as at present for the sole beneft of the common Ahareholders of the Bank. Such new certificates will not bear any Endorsements with reference to the City Company or New York, Incorporated, although the stock of the latter will con tinue for the time being to be held in trust as heretofore, and also solely for the benefit of the common shareholders,

"The Board of Directors has ap proved the plan, and recommends to the shareholders that it be

made effective.

"The plan requires the appro- val of two-thirds of all the out- standing shareholders. Unless you expect to attend the meeting you are, therefore, requested to sign the enclosed proxy in order to enable your stock to be voted at the meeting and also the con- sent relating to the City Company of New York, Incorporated, and return both promptly in the en- closed envelope...

Yours, very truly,

JAMES HL PERKINS, 2. Chairman of the Board of Directora.

LYNCHING CONDEMNED

I expect to recommend the pay-Reuter. ment on February 1st next of dividend of twenty-five cents a share on the common stock for the last quarter of the present year.

"It is planned to continue the City Bank and Farmers Company as a separate entity devoted to

ust business. It has at present

Washington, December 7. Strong condemnation of lynching was made by President Roosevelt

a capital of $10,000,000, a surplus in a broadcast address to the of $10,000,000 and undivided pro- Federal Council and Churches of fits in excess of $1,500,000. The Christ in America He described existing Laws sanction its con- the recent. lynchings in the United tinued afliation with the Bank States as a vile form of collective provided it becomes a member of murder called the Lynch Law and the Federal Reserve systems. This added that we do not excuse those it plans to do in the near future in high or low places who con-

You were advised by me last done such practices Reuter.

taken

If the trade marks were copied in an underhand manner by 52- panese firms and the facts were brought to the British Govern-. ment's notice, every possible step would be taken to assist British makers.

Attention to the matter would" proper be called through the diplomatic channels to those in authority in Japan.

Such practices were reprehen- sible and were such which no government desiring to carry worldwide commerce ought tolerate.-Reuter.

On

to.

Mr. Morgenthau has removed the BRITISH POTTERY

Internal Revenue Bureau from the authority of Mr. Hewes, an AsSÍS-" ant Secretary, who is expected to resign unless President Roosevelt intervenes to restore Reuter.

harmony..

NATIONAL EMERGENCY

·COUNCIL ·

Created By Mr. Roosevelt

Washington, December 7. President Roosevelt has created a National Emergency Council charged with centralising inform ation and co-ordinating the acti- vitles of the various governmental agencies-Reuter

SINGAPORE BASE." Will Be Completed By 1939

London, December 7.

TRADE

Grave Allegations Against Japan

London, Dec. 7. During a brief debate in the House of Commons late last night, the Parliamentary Secretary to the Board of Trade, Dr. Burgin, re- ferred to the effects of Japanese competition on the pottery trade. The debate was raised by Mrs. Copeland who produced cups and saucers of cheap Japanese make and commented strongly on the alleged Japanese copying of Bri- tish pottery trade marks. Dr. Burgin said that any unfair.com- petition in regard to copying and Imitation of styles and trade marks and names must be most severely deal with. The Govern In the House of Commons to-j day, Sir Bolton Eyres Monsell, ment did not intend to have any First Lord of the Admiralty, ant thing of that kind trified with, If there were instances of British nounced that provided the neces-makers registered trade marks sary financial provision is made, being infringed and copled in an it is anticipated that the Binga underhand manner by Japanėse pore Base will be completed by

exporters Japanese Importing the end of 1939,-Reuter,

houses or merchants were brought, to notice of the Government, every possible step would be taken, both to assist those whose marks: had London, Dec, 1. been wrongly interfered with, and The lists for cash application in to call attention through the pró- connection with the issue of 34 per per diplomatic quarters to prac cent registered stocks, £99 per cent fices which were clearly reprenon- by the Government of the Com-ible and which no Government monwealth of Australia were desirous of carrying on a world- closed at 11.30 am this morning wide commerce ought to tolerate.

British Wireless,

British Wireless;

AUSTRALIAN STOCKS

les.

Ovaltine

wins the

Blue Riband

"O

Quality

VALTINE" "has been awarded the

Blue Seal Certificate of the 'Institute

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does not Unlike imitations,

sugar to give it bulk and contain household to reduce the cost. Nor does it contain a large

#

Ovaltine"

percentage of cocoa. Reject substitutes,

MMUTE:THYGIENE

Added proof that

** Ovaltine'

stands first

for Quality and Value.

· RUGBY › MATCHES POSTPONED

www.mw......

London, December 7. All the rugby matches were post- poned on account of frosk-Red- ter.

Ovaltine

OVALTINE

is the ONLY Tonic Food Beverage

to be awarded the

BLUE SEAL CERTIFICATE

of the Institute of Hygiene