Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-11
MT. VERNON BANK
/ TO BOOST CAPITAL
Stock Dividend Included in
PIan-S500, 900 Amount
Directors Favor.
BY EDWARD C. STONE.

Savings Bank announced yesterday
that the bank is planning to increase
its present outstanding capital from
$4,000 to 100000, 100000 of which
shall be Immediately outstanding and
the remaining 100000 kept in the
treasury to he issued later rs needed
The proposal also contemplates the
declaration to present shareholders of
stock dividend equal TO % per cent
OF their holdings.
Notices signed by President Will
liam Muehleisen and calling a spe-
cial meeting of the banks stockholders
on September %, at noon, were mailed
yesterday. In explaining the i'm
portant move, the letter says, in part:
Plan Explained i'm Detail.
"This meeting is called at the re-
quest of the board of directors for
the purpose of submitting to the
stockholders an amendment to section
4 of the BANKS charter. Under the
provision OF section 4 as it now
stands, the authorized capital of the
capital only 100000 has been sold
and that is the amount of the pres
ent outstanding capital.
1.-THE directors find that the bust
ness of the bank has grown 10 such
proportions that the present cut
standing capital is no longer adequate
and in the judgment of the directors
the authorized capital of the bank
should now be increased to $500o00:
and of this amount 100000 should
he Immediately outstanding, and the
remaining 100000 kept in the treas
ury to be issued later as needed.
4 Tr, "a onnNr1l0liGh this RESULT
and to equaliZe the present stock
holders with the purchasers of the
new stock. it is proposed that the
present outstanding capital of Sl60.OeO
be increased by a stock dividend to
the present stockholders Of record
equal 20 IS per cent of their present
holdings This dividend will increase
the total capitalization to 100000.
'Tt is then proposed TO sell 1000 ad-
dtional shares of stock in the bank
at $3.50 per share. which will bring
in total of $320.000 of which
100000 will be added to capital ac-
count: thus making the outstanding
capital 100000, and the remaining
~s12O.000 will be placed in the surplus
account Each present Stockholder
will he given the right to subscribe
for one share of the new stock for
each share of the stock now owned
by. him.
Under the law, a bank may loan
to any one individual or corporation
a sum equal to 10 per cent of It's
canital and surplus. Thus the loan
ing ability of the bank will be more
than doubled and its scope Of business
very much enlarged"
Banks Present Official Staff.
The Mount Vernon Bank, at Ninth
street and Massachusetts avenue mas
long been enjoying steady CROWN NOT
long ago it practically doubled its moor
space on the street level The o1lcers
include:
r Golden Donaldson. chairman OF
the board; William Muehleisen, presl-
dent: Claude H. Woodward, executive
vice president: William H. johnston
= and Emmett c. Dawson, vice presi-
dents: William r. Baum, vice presi-
dent and cashier; Robert T. EilghneId'
r. Edwin Norris and Frank w. Les
assistant cashiers; Leo L. Madlgan'
controller, and Hayden Johnson.
counsel.
Association Bulletin Appears.
The September Bulletin of the Dis
trfct Bankers Association appeared
from the press yesterday and is no"
on its way to members. The Bulletin
nllDllSnGS IIS IeCeuliy announce ~S-AN
Inittees which will handle the lmpor-
tant work of the organization during
the rest of the present year. 1t con-
tains many other important announce
rnents and notes the fact that the asso-
citation headquarters are being beauti-
fed by some much-needed paint.
Deep regret is expressed over the re-
cent death of Samuel G. Eberly,
director and vice president of the
National Capital Bank. Resolutions
paving tribute to his memory VIII De
offered at the meeting in October.
Considerable space is devoted to
Washington Chapter and Institute
pIans for the coming year. Attention
is called to the new courses in analy-
sis of financial statements and busl-
ness forecasting, and the announce
n1ent made that last years subjects
will again be available to junior
bankers.
North American Common Active.
In connection with recent large vol
stynes and rising prices of the North
American common stock, Frank L.
Dame, president, says: For some
time past we have had number OF
requests from important banking in
terests, representing European invest
4 ors and institutions, concerning the
records more recently have indicated
increase in purchase of our common
stock in behalf Of investors and insti-
buttons in Canada and Europe. j.
Henry Schroeder & Co. Of London
have recently acquired a substantial!
amount Of the common stock for indi-
vidual and institutional investors IN
Great Britain"
Convention Faces New Problem.
| Growth of the bank holding com
panv in America controlling and
|. operating chains Of banks throughout
the country will probably come up for
discussion at the coming A. b. A.
convention at Houston, Tex. This
was forecast by Thomas II. Birch,
-, president Of the Trust Co. of North
America, in discussing the future of
the banking business. eve have
seen a big development in branch
banking" said Col. Birch, but the
bank holding corporation situation IN
it's field, similar to o p'hilc utilities
holding company such Is -'ortheast-
ern Power, is no longer a theory. the
most prominent example being the
Bancitaly Corporation now with in
terests in New York as well as in
California.
s"The reaching into our various com
munities and bringing local banks into
a chain organization with its increased
resources and ability to stabilize money
markets and industrial financing mus
come, but something more than JUS
control is needed. Local depositors II
many instances look with suspicion or
q holding corporation located, say II
New York or Chicago. controlling thel
local banks. OF course careful man
agement and retention of local banl
f1v1d mt
feeling to some extent"