Evening star., 1925-03-20
RIGGS BANK BUYS
NORTHWEST SAVING
Transaction Ends Long and
Bitter Dispute Here in
Banking Circles.
BY CHAs. p. sHAEFFER.

BY CHAs. p. sHAEFFER.
The Northwest Savings Bank has
been acquired by the Riggs Nationsl
Negotiations were consummated late
yesterday afternoon, when the holdings
Of Francis NJ. Savage, president OF the
acquired institution, amounting TO more
than Is per cent of control. were bought
by the national institution at ScS75
share Par is $40.
The transaction renders the District
banking escutcheon again serene and
calm Entrance of the Riggs with
branch ONCE to the Mount Pleasant dis
trlct few years ago was bitterly pro
.esteo py Mr.. Savage, who contended the !
terrltory was not fertile enough to
prontaoly support two banking institu-
| IONS Every conceivable line OF combat
was resorted TO to have Riggs reIinuuish
me held. The matter was taken up
tnrough the District Bankers Associa-
tion' the Office OF the controller of the
currency which granted Riggs operat-
Ing rights, Congress the American
Bankers Association-but all to no
avail
! Minority Holders Guarded.
| Minority stockholders of the absorbI
ed institution will be given the right
| 10 dispose OF their holdings at the
| same hgure Mr.. Savage received. II is
| said. AT least a part Of the personnel
| WIN oe retained, II was intimated, In
ctuo!ng gregg c. Burns. cashier o.
| the Northwest, who will undoubtedly
be placed in an official capacity in
| the reorganization. For the time be-
| ing Mr.. Savage will remain as it's
( president, but only as long as his pres
| ehce Is essential to the ironing out OF
! the banks affairs. He has requested
! RIGGS officials that he be released at
! the earliest DOSSibIe
! Riggs National will follow one OF
Two pollcles IN carrying out the a b.
| sorption. 1t will either nationalze the
Northwest and later convert II into q
! branch. as was done with the Hamil-
! ton Savings, or liquidate The former
| procedure is in favor at the moment
| 1t is understood. The bank will be
| conducted under it's present title.
! The Northwest Savings Bank" for a
while, but ultimately it will house
and become the Washington Heights
branch Of Riggs. The present branch
OF Riggs at 2477 Eighteenth street
| will be abandoned some time before
September Is next, when the lease
on the property expires.
Gives Riggs Largest Branch.
The transaction gives 10 the Riggs
institution its largest branch with
deposits of about 3i.400. 600, approx
| imately 100000 more than at Four
teenth street and Park road. The
| Northwest Savings had deposits Of
about ss75,o0O, with capital of $780,
600 and earned surplus of $4,000 and
a goodly amount of undivided profits
| Mr.. Savage does not plan to forsake
the District banking field. Instead
after short visit to the West with
Mrs. Savage he intends to return and
organize here a bona fide savings in
stitution. He will make Washington
his permanent home.
The transaction struck the District
| banking fraternity like a bombsheu
| While it was generally conceded the
| Northwest Savings end was newt
able, the identity of the purchaser
caused much CONSERVATION.
Savage Explains Action.
Mr.. Savage has issued the following
| statement, which explains his action:
| ON my return from the West I was
approached in a fair minded way b.
| one of the directors of the Riggs Ma
| tional Bank, proposing to buy this
bank. He stated that they had an
option on 40 feet near US, but they
would rather buy the institution than
build.
Il then had my brother-in-law from
New York, an attorney for some of
the larger banks there, and my con-
fidential friend and business associate
from Gary, Ind, who had known me
all my life, come here and advise me
what 1 should do, as I held in ex-
cess Of 75 per cent of the stock of the
bank.
They advised me that there was
not sufficient business in this locality
to assure the prosperity of two banks
and there would not be for some
years to come, and that we should
sell.
I'm negotiation with my friends
fho allied interaSf -
s28.75 a share for the stock. and after
a conference ] accepted their advice
by selling my stock at that price
with an agreement that the same
price was to be paid for the remain
ing shares.
The association with the directors
has been close and unusually friend
ly and I deeply regret that it must
be broken. Work with the faculty
has been cooperative and a real
) pleasure. To the patrons of the bank
1 am grateful
Convention Committees Meet.
w. J. Waller, chairman of the gen
eral convention committee of the Dis
trict Bankers Association held a
meeting Of the various committees a
his home last night, when machinery
for the annual conclave was put in
motion. Mr.. Waller outlined the part
each committee is expected to play
and urged exertion of every possible
effort to make the convention a great
success.
Trading on Local board.
Railway common rejoined the list
of active stocks on the local exchange
this morning, so shares selling up
ward to 10Sk Riggs National Band
rose several points to 351, and Mer-
genthaler sold at 1919 upward to 1S2
Capital Traction was frmer at 81, but
Lanston was unchanged at fraction
ally above SO.
Banks Declare Dividends.
The American Security & Trust Co
has declared it's regular quarterly
dividend of 8 per cent, payable on
April 10 to stock of record March 81
Directors OF the Farmers and Me
. chanicS National Bank have declared
: an extra dividend of 81 q share on
, the capital stock of the institution.
; payable April l to stockholders OF
record at the close of business