Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-06
D. c. AND NORFOLK
FIRMS IN MERGER
Mortgage Concerns Boards
Vote to Unite-StoCkhold-
ers' 0. K. Sought.
BY EDWARD c. STONE.

BY EDWARD G. STONE.
President Harry A. Kite of the
| Mortgage Bond & Guaranty Corpora
tlon of this city announced yesterday
that the directors of this company
and those of the Mortgage Security
Corporation of Norfolk. Va, have
voted for a consolidation of the two
concerns. Stockholders meetings of
both companies have been called for
March "a, to ratify the merger, and
the new company will be known as
the Mortgage Security Corporation of
America.
Notices have been mailed to the
stockholders of the Washington con
Germ outlining in detail the merger
plan and the necessary exchange of
stock. The Washington company's
present preferred stock has par value
OF $40 per share, while the new pre-
ferred will carry par value of 500
per share. The local common stock
is now valued at So while the new
common will have no par value, al
though the announcement states 1t
will have a book value of $40 per
share.
nehalf share of the new 500 7
per cent preferred and one-half share
of the new 500 per cent second pre-
ferred will be exchanged for 10 shares
OF the $40 preferred now held, or one
full share of the new second prefer
red may be exchanged for 10 shares
of the old $40 preferred. One-half
share of the new common will be eX-
changable for 10 shares of the COM
mon now held. Application will be
made to list the new stock on the
Baltimore and Boston stock exchanges.
The Mortgage Bond & Guaranty
Corporation IS to be represented on
the new board of directors and a
Washington office will be maintained
at the present location, 1910 Vermont
avenue. Fernand Petit, vice presi-
dent and general manager of the
present local company, will be actively
identified with the consolidated cor
poration.
The officers of the local firm are
Harry A. Kite, president: Appleton p.
Clark, jr., vice president; Hugh A.
Thrift, vice president and treasurer;
Fernand Petit, vice president and sec
rotary: M. E. Greene, assistant treas
urer. and Daniel T. Wright. counsel.
The consolidated balance sheet of
the two companies places resources at
$39 100000 and capital and surplus
over 100000.
Local Bank Stocks Strong.
In yesterdays trading on the Wash.
ington Stock Exchange, District Ma
tional Bank stock reached $50. new
high for all time. Federal American
National came out again at 800, which
is its high for the present year. while
stock of the Farmers and Mechanics
National recorded it's first transaction
so far this year when it brought 285
on small turnover.
Capital Traction closed the week at
the strong price Of 107%. The session
was notable for one of those rare sales
in Washington Railway and Electric
common, 20 shares coming out at
202A. This stock has recently been
by far the most erratic issue on the
board
Washington Gas IS, series A,
changed hands at 10412, while the
series B bonds again sold at 1856. Sat
urday's reading of quotations on un-
listed stocks showed few cha nges dur
ing the week. Base ball stock re-
mains unchanged in spite Of the APP
proach of the playing season, 55 being
bid and 95 asked, and no sales re
ported.
Brilliant Banker Coming Here.
William Russell Morehouse of Los
Angeles, president of the savings
bank division of the American Bank
ers' Association. will preside at the
regional conference to be held in
Washington on April z and g. He Is
an author as well as banker, and at
present is vice president Of the Sc
curity Trust and Savings Bank in his
home city.
Mr.. Morehouse has written numer-
Gus books on banking, some of the
titles of which are: Banking Deposit
Building" Bank Letters" Bank
Window Display Advertising" Bank.
ers' Guide Book" which has been
used by $4,000 banks; 1.-The New
Bankers Guide Book" How to Sue
coed in the Bank and Written
Examinations for Bank Employees >"
Some of these books have been trans
lated into three languages.
February Bond Issue Heavy.
Real estate bond issues announced
for public offering in February
amounted to $50 ,479 500 compared with
SIS, 1862, 500 in January and with $751;.
136,500 In February last year, accord.
ing to compilations made public yes.
terday by S. w. Straus & Co. A some.
what larger tnan normal proportion
of these loans were on completed
structures. The total number of is
sues for the month was 50 compared
with 81 in February, 1926.
- Commodity Prices Stronger.
Wholesale commodity prices in The
main, displayed a stronger tendency
this week than for a number of weeks.
80 out of the SO changes that appear
in the list of quotations collected by
Dun's Review being advances, against
20 declines. In last weeks compila,
ton there were 26 advances and "a
reductions; in a similar comparison
for the corresponding week year
ago 40 recessions contrasted with 10
advances.