Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-02
MILLION DOLLAR BANK
Two Institutions to Combine
Capital and Resources.
SURPLUS HALF A MILLION
Bank of Washington and Central
Bank to Combine.
MIR. JAMES YEARS OF SERVICE
Will Retain the Name and Building
Of the Oldest Institution, Which
Was Organized in 1911.
MIR. JAMES YEARS OF SERVICE

Arrangements have been completed for
carrying out in detail the plan which has
been formed for the merging Of the Bank
of Washington and the Central National
Bank. 1t Is stated that the stockholders Of
the Bank Of Washington favoring this
change number about two-thirds Of the en-
tire list. At the annual meeting which will
be held on Tuesday next the following
ticket will be offered for the approval of
the stockholders, and 1t Is understood that
1t will be elected: Chas. A. James, Clement
w. Howard. w. F. Mattingly. C. F. Nor
ment. W. ]. Father and Daniel Frazier.
The last three named will be new members.
In case this ticket is successful the fol-
lowing who are now members of the board,
will retire: J. Blake Kendall, Chas. E.
White and Jas. l.. Norris. 1t Is expected
that Wednesday next. the day following
the annual election, the board will meet for
reorganization.
There Is some thought Of re-electing Mr..
James to his old position as a mark OF re-
spect to his long services In connection with
the bank. At any rate. whether that ia
done or not, his resignat ton which is now In
will be presented and will be accepted. In
his place will be chosen Mr.. Clarence F.
Norment, who Is now the president OF the
Central National Bank.
hfl Tic uctdllS VI LILO pldu LOT
the two Institutions together have not as
yet been fully worked out. but 1t is expected
that this will be done and that in a short
time the Central Bank will be absorbed
with the Bank of Washington and that In
stitutlon with the capital increased from
$2O0.OOO to 81 100000 and a surplus fund Of
half million dollars will be in business In
the building occupied for 80 many years
by the Bank Of Washington.
Combined Capital.
The capital of the Bank Of Washington
is now 500 900 and Its surplus fund Is
$500 900. 1t Is proposed to turn the latter
into stock which on the basis OF the par
value of s1OO a share will amount to 5000
shares or one and half shares to each of
the present outstanding shares. 1t Is
further estimated that the bank has funds
amounting to about S2S5. 600 which will be
considered in this transaction as a surplus.
1t Is made up Of $4,000 Of undivided
profits, $4,000 as the value of the banking
building. the latter being less the $4,000
at which the bank building Is now placed
in the books OF the bank. 1t Is also esti-
mated that there will be some $50. 900 repre-
senting the difference between the value
placed upon the 8.65 bonds owned by the
bank and their present market value.
The capital Of the central National Bank
Is 100000 and according to recent state
ment its surplus and profits amounts to
$296OO 1t Is calculated that after the
capital OF the Bank Of Washington. is in
creased from 500, 600 to 100000 by turn
ing its present surplus into stock. az stated
above. that the two institutions will be
practically on a parity. II that should not
prove to be the case any difference that q
close examination of the value Of the as
sets Of either institution might develop
will be made up to the stockholders by
cash dividend
When these details are adjusted 1t is pro-
posed to make the capital Of the Bank Of
Washington 81. 900 900 and issue the stock Of
that institution in exchange for the out
standing stock Of the two banks.
Same Name and Location.
In thus preserving the name as we'll as
retaining the location where the Bank Of
Washington has done business for so many
years. those who have been instrumental
in bringing this change about have en-
deavored to preserve not only the historic
continuity of the oldest bank in the city,
but have also, 1t Is believed, consulted the
needs of the customers of the present day.
The Bank Of Washington began business
In this city In the year 1911, and has the
longest record In this particular Of any
similar institution that has ever been Or
Eanized here.
While during recent years and perhaps
always In its career It has never paid a
larger dividend than per cent, yet there
are few financial institutions whose secu1-
ties were looked upon as being backed UP
by such valuable assets was the case
or the STOCK or the Bank or w aSnln8tOn. 1t
has sold as high as Col per share. The
stock Is at the present time held mainly by
the representatives, Of former stockholders
and they are widely scattered. not only
over this country. but the world
They have shown an indisposition to make
any change In the management OF the bank
but owing to the physical condition Of Mr.
James 1t Is supposed that 1t Is realized
that change was inevitable.
Mr.. James has been connected with
the bank for the past fifty years. having
entered its service when he was a young
man Of twenty-five. He began at the lowest
round Of the ladder and was gradually pro-
NOTED until he became the head Of the In
stitutlon. The confidence which the stock
holders well the customers Of the
bank reposed in Mr.. James has seldom
been exceeded In the history Of any fnan-
cal institution. and when he retires from
the bank he will take with him the best
wishes well as the respect Of all those
who have been associated with him in his
long business career.