Evening star., 1925-04-13
MUTUAL SAVINGS
BANK TO OPEN HERE
Institution Planned by F. M.
Savage, Offering a Per Cent,
viii Be Unique in D. C.

The Capital Mutual Savings Bank,
bona fide savings institution. spon-
sored by Francis NJ. Savage, which will
pay 4 per cent to depositors and offer
them additional profits. will make it's
debut here on May in the old Union
Savings Bank Building, 40 Fourteenth
street northwest. The bank will have
a paid-in capital of 100000 and a sur
plus of 5000.
AS tentatively outlined. depositors
are first to receive per cent on their
savings, after which the stockholders
are TO receive per cent upon the
capital and surplus. After these pay
ments have been mat from earnings,
4 per cent of the capital and surplus
is TO be added to the banks surplus
fund. When there shall have been set
aside from the earnings an amount
sufficient TO cover these three items,
whatever additional remains will be
equally divided between the surplus
fund and depositors. Under the pres
ent capitalization and surplus, when
the earnings of the bank exceed s25 900
net per annum, half of the excess will
accrue to depositors in the way of
to surplus, thus increasing the capital
resources of the institution.
Lease Is Arranged.
arrangements nave aIrea0y 0een
concluded for the leasing of the ground
floor of the old Union Savings Bank
Building. Included in the lease are
the marble fixtures and grillwork
necessary in the conduct of banking
establishment, all of which will keep
organization expenses at the minimum.
Negotiations have begun with the
Office of the controller of the currency
seeking approval of the project. While
tha
cation for charter has not yet lapsed,
that office has been represented as be-
ing in accord with the plan.
1t is understood the banks loans are
to be secured by real estate collateral
or bond investments. Incidental to
the real estate loans there will be an
insurance business and agencies for
the various steamship companies.
Associated with Mr.. Savage will be
Charles w. Morris, DR.. Gregg c. Bird
sail. Dion S. Birney and Judge George
H. Macdonald, all formerly identified
with the Northwest Savings Bank,
which was recently purchased by
Riggs National. This group will con-
troll SO per cent of the banks stock,
while the remainder will be placed
with holders approved by the major
ity. Mr.. Savage will be president of
the new institution, but other officers
have not been named.
First in Decade.
Promoters of the enterprise have
made a careful estimate of expense
and state they have every reason to
believe their idea of sharing profits
with depositors will carry a strong
appeal. A bona f1de savings institu-
tion is not entirely novel in Wash
ington, although there have been
none operated here for a decade.
Every bank now functioning under a
savings title conducts commercial
business as we'll
Announcement of Mr.. Savage's plan
will bring back to the local banking
fraternity its most colorful member
During the last few years he has be-
come known throughout the country
by reason of his anti-branch bank
fight with the Riggs National, seek
ing to depose that institution from
the Mount Pleasant vicinity served by
his own bank, the Northwest Savings
In the course of this fight he appealed
to the people, Congress, State Legis-
latures, the American Bankers AS
sociation and high Government Off
cials. including the President, to no
avail. The Riggs Nationals branch
at Mount Pleasant was cloaked un-
der the authority of the Millspaugh
act and was there to stay. Hostilities
ceased only few weeks ago when
Riggs interests purchased the North
west Savings, Mr.. Savage, majority
stockholder, realizing a handsome
profit on his holdings.
The announcement will cause but
little CONSERVATION in local banking
circles. as 1t has been rumored for
some time that Mr.. Savage would re-
turn to the field. With him banking
is more or less of a hobby, and this
particular enterprise can best be de-
scribed as a purely altruistic move
ment, because the presidents salary
cannot exceed $1,000 per annum.