Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-10
INCREASES ITS SCOPE
Addition to Stock Of a Local
Company.
CAPITAL AND SURPLUS
TOTAL os $4,000, 600 TO BE MADE
AVAILABLE.
Holders of American Security and
Trust Company Stock Approve Plan
New Building Probable.

A plan for the increase of the capital
stock of the American Security and Trust
Company. as well as for charging it's facil-
tiles and sphere of operation. has met the
approval of all the directors and stockhold-
ers to whom it has thus far been submitted.
In the main the plan involves more than
doubling the capital stock, and a still larger
addition to the surplus. On the LIST of June
next. when it is expected the company will
be doing business under this new arrange
ment, the capital and surplus will be $4.-
100000. as compared with $1,S50,0O0. the
present capital and surplus. The capital is
to be increased from s1,250.O00 to 100000
and the surplus from 100000 to s1.5O0OoO.
An offer to take 5000 shares of the new
issue made by Mr.. John r. Mclean c. c.
Glover. Geo. T. Dunlop and Henry Hurt,
representing those who have large hold
ings in Riggs Bank and the City Bank of
New York city, is to be accepted The pur-
chasers will say for this stock at par and
also pay a premium of $50 per share. or $t0,-
Geo winch will pass into the treasury to be
added to the surplus fund Of the company.
The 300 shares of the new stock remain
ing will be sold to the stockholders at par
on the basis of one share of new stock to
every five of old, which is equivalent to
dividend of 20 per cent.
Trust Plan Abandoned.
With the adoption of this plan the pur-
pose of Mr.. Mclean and those interested
with him to start a new trust company
has been abandoned. 1t was these inter-
ests that made a somewhat similar but
less advantageous and attractive PROPOSE
ton to the National Safe Deposit Com
pany. which was not accepted. Then it
was decided to proceed with the organiza-
ton of an entirely distinct company and
use the old Riggs Bank site, at the north
west corner of Pennsylvania avenue and
10th street. on which Mr. John r. Mclean
holds an option Of purchase as the loca-
ton OF the home Of the proposed company.
However, a new trust company under such
auspices Is no longer considered and the
American Security and Trust Company,
with it's enlarged capital and surplus, will
represent not only that company, but new
and powerful interests which have thus be-
come allied.
There is to be no change in the manage
ment of the American Security and Trust
Company. Mr.. Charles ]. Bell the presi-
dent, through whose judgment and ability
this merger has been brought about in a
manner satisfactory to all interests, is to
remain at the head of the company. All
the officers will be the same. There will
be, of course, an addition Of names to the
list of those constituting the board of di-
rectors.
A meeting of the board of directors will
De held the 2Uth instant Tor the purpose OF
issuing call for meeting of the stock
holders. A notice of three weeks is re-
CURED SO that the latter meeting will be
held the latter part of May. Two-thirds
Of the stockholders have already approved
the plan.
A singular feature of this transaction is
that both parties to the deal-the represen-
tatives of the American Security and Trust
Company and Mr.. Mclean and those with
him-had valuable corner properties.
AS stated. Mr.. Mclean holds the option
on the old Riggs Bank site, while the
American Security and Trust Company
owns it's Office building, which, as is we'll
known extends around the northwest cor
ner of 14th and G streets. with entrances
on both streets. An option Is held In the
interest of the company on the property at
the corner, SO that a valuable corner site
ample for the erection of large building
is controlled on behalf of the company.
AS Mr.. Mclean has turned over to the
American Security and Trust Company the
option held by him to purchase the old
Riggs Bank property. the directors will
probably decide to dispose of their present
building, together with their option on the
corner property. and take possession of
new building to be erected at the north
west corner of Pennsylvania avenue and
18th street. In that event there will be
fine modern structure at the northwest
corner OF 14th and G streets. as well as
one at the northwest corner of Pennsyl-
vania avenue and 18th street