Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-18
MT. RAINIER BANK
MERGER EXPLAINED
80
Prince Georges Vice PreSi-
dent Shows Shortage of
First National Met.

Issuance of statement fully explain
| ing the position of both banks and
| revelation of more details which led to
the merging Of the Prince Georges and
First National Banks of Mount Rainier
were developments in the case today.
The statement, given out by It. How
ard Duckett, chairman of the Washing
ton Suburban Sanitary Commission,
who is also vice president of the
Prince Georges Bank. contains the as
suraf1ce that his bank guarantees pay
ment to the depositors of the First Ma
tional Bank in full.
1t was also charged this morning that
Clarence F. Schatz vice president and
cashier, had been juggling accounts
since last December. A shortage in his
accounts was discovered last week, it
was charged. while the bank examiner
for the territory was making one of
his periodical inspections. when a $4,000
check was presented against which
there was no deposit on the bookkeep-
ers ledger
Last Publicity Statement.
study of the last public statement
'of the First National Bank, given fol-
lowing the controllers call of October
4, showed the institution was operating
on a surplus of $4,000. Other items
in the statement are: Loans and dis
counts, $206, 381.29; overdrafts, So, 061 so;
United States Government securities
owned, $25.475; cash and due from
banks, $I0,629.27; outside Checks and
other cash items, $47.60 The capital
stock paid into the institution was
$25, 900.
Mr.. Ducketts statement follows:
THE Prince Georges Bank. by agree
ment with the board of directors of the
first National Bank of Mount Rainier,
took over the assets and assumed the
liabilities of the First National Bank as
of Saturday morning, November is.
IAN examination of the First Ma
tional Bank of Mount Rainier made re-
Gently, disclosed the fact that there was
a shortage in the cashiers accounts of
approximately $4,000 a large part of
which. however, was covered by the
cashiers bond. The board of directors
in thorough canvass of theS ituation
Friday night concluded that in order TO
completely protect its depositors. it was
advisable to make some arrangement
with the Prince Georges Bank to paw
the depoSitors and take over the assets
of the First National Bank. At joint
nesting Friday night of the board of
directors of the First National Bank
and a, committee representing the
Prince Georges Bank, an arrangement
was worked out, whereby the Prince
Georges Bank guaranteed the payment
to the depoSitors in full. on demand, as
well as the other liabilities of the First
National Bank. consisting mostly of
outstanding cashiers checks and Christ
mas savings accounts. the Prince
Georges Bank taking over all of the as
sets of the First National Bank.
Continuance of Affairs.
until such time as the Mount Rainier
branch of the Prince Georges Bank
can rearrange it facilities for handling
the enlarged clientele, the affairs of
the First National Bank will continue
to be operated from it's present bank
building on Rhode Island avenue, but
it is thought that within a week or
10 days the consolidation will be COM
pleted and the transaction of business
of both institutions will be conducted
at the Mount Rainier branch of the
Prince Georges Bank.
At the time of the transaction the
assets of the First National Bank of
Mount Rainier were about $500 900,
with deposits and Christmas savings
funds of about $4,000. The assets of
the Prince Georges Bank are S2,700,-
900, with deposits at its Mount Rainier
branch alone of slightly over 81 900 900.
1t is thought by those familiar with
the banking situation in Mount Rain
Ter, and 1t is the expressed hope of the
officers and directors of both of the
institutions, that the consolidation will
result in greater service to the COM
munity. The Mount Rainier branch
OF the Prince Georges Bank is begin
ming Immediately TO make all the neces-
sary arrangements to facilitate handling
the business of its new clinets.