Evening star., 1923-06-12
R|GGSBANK PLANS |
B|GSTOCK DIVIDEND
Directors Also Recommend
Increase in Capital to
S2,500,o 900.

The action of the Riggs National
Bank yesterday, when unanimous an
proval was voted by the board or al
rectors to recommend to stockhoid-
ers of the institution that the capital
stock of the bank be increased from
$1,000,0 900 to $2.500.000. marks one of
the largest individual steps taken in
local financing for years.
Announcement of the proposed res
capitalization plan was made by Mill
ton z. Allies, president of the bank,
following meeting of the directors.
at which a report which has been
under consideration for some time
was submitted by committee OF d.
rectors composed OF Charles c.
Glover, chairman of the board; Mr..
Allies. II. Rozier Dulany, Louis Z. JEFF
fries and Frank J. Hogan, counsel
According to the plan there will be
payable out of surplus. to the extent
of s1,000,000, and the sale of 100000
new stock az par.
1t is expected a regular dividend
against the 26 per cent now paid
annually by the bank. This will
amount to s325.000 year on the new
capital, compared with $260,000 a year
on Jne present Capital
Stockholders will be given a share
of stock for each share of their
present holdings in the bank and. in
addition. will be permitted to sub
scribe for the new stock at the rate
of one share for every two shares
held. The result of these operations,
1t Is pointed out by Mr.. Allies, Will be
to increase some what the return to
the present stockholders.
The plan adopted by the board and
recommended to the stockholders
contemplates at later date the re-
financing of the branches of the
Riggs National Bank, "a modest be-
ginning of a ref1nancing movement of
a great financial institution" as the
directors put IL.
Most of the branch banks OF the
institution are on regular revenue
producing basis from rentals, and
will result in increased returns to
regular Riggs stockholders. 1t Is
probable corporation to be known
as the Riggs Securities Corporation
will be organized to handle the reaI
At present Riggs Bank has four out
side offices with real estate holdings
amounting to Ss20,0OO. These branches
have shown rapid growth in the last
twelve months, and are responsible for
about one-half of the increase in de-
posits of the parent bank in that time.
According to the new plan it Is pro
posed to take the real estate assets or
these Offices out of the parent bank and
to organize a corporation which would
control these holdings. This may justi-
fy. it was said, further increase in
capital.
The change contemplated will not
take place, 1t was pointed out by Mr.
Allies, until the end Of the present divi-
dend period in October. It will be
presented to the controller of the cur
rency today, and permission asked TO
carry out the program. A speclal meet
ing of the stockholders will be held
during the summer to act upon the
recommendation of the board.
During the last year the bank.
through its four outside offices, has
acquired deposits amounting to ap-
proximately s1.700.0o0. The cost Of
street and Park road was S5oO.OO0, and
the main Office has been remodeled.
Two new vaults have been installed
there at a cost of 100000. and the
Dupont branch is now under con-
The assets of Riggs National Bank
show capital 100000, surplus
s. 900, 900, undivided profits sSO3,OOo
deposits s2s.ooo.oo0 and total re-
sources s3S.ooo.oo0-
Essay Winners to BE Announced.
A committee Of Washington bank
ers. consisting OF Harry Y. Haynes,
chairman: George E. Fleming and
Wade H Cooper, who will pa ass upon
the merits OF the essays on Branch
Banking" prepared by members of
the local chapter, American Institute
of Banking. will make their report
within the next few days, 1t was an
nounced yesterday.
Authors of the six adjudged best
papers will be taken to the coming
convention of the District Bankers
Association at Hot Springs, their
banks standing all expenses for, the
trip. stss
Clearing House to Meet.
The Clearing House Association
will hold its regular meeting in its
rooms in the National Metropolitan
Bank building next Friday afternoon
at 4 o'clock. Nothing but routine
business will be transacted.