Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-16
FederaI-America and Mer-
chants Trust Deal Is Ex-
pected to Go Through.
POOLE CALLS MEETING
OF DIRECTORS TODAY
No Important Changes in Official
Personnel of New Institution
Appear Likely.

Merger negotiations are under way
for the consolidation Of the Federal
National Bank and the Merchants Bank
81 Trust Co., both of this city, which
will give the combined institution total
resources of about SOS, 900, 900, total de-
posits of nearly $20,000,0o0, and q
combined capital of $2,6oO,o0O, it was
learned today.
If the merger goes through as ex-
pected, the consolidation will be one
Of the most important bank mergers
that have ever taken place in Wash
ington.
The Federal-American National Bank
is located at Fourteenth and @ streets
and has never had any branches. The
head office Of the Merchants Bank &
Trust Co. is in the Southern Building,
on the northeast corner of Fifteenth
and H streets, with branch offices To-
Gated at Dupont Circle, Twelfth and
Newton streets northeast and aat Penn
sylvania avenue and Twentieth street.
Meeting Of Directors Called.
President John Poole of the Federal
American said today that a meeting of
the board of directors had been called
for this afternoon at $3.50 to consider
the merger proposal. While Mr.. Poole
is favorable to such a merger. he said
he would not discuss the details in adj
vance of their consideration by the
directors.
President Rolfe E. Boiling of the
Merchants Bank 81 Trust Co. admitted
that his bank was favorable to a merger
with the Federal-American National,
his board already having approved such
a consolidation.
It was the opinion In the financial
district today that the $25, 000, 900 bank
merger will go through. President
Poole has been known for long time
to be favorable to some sort of merger
and President Boiling expressed the be-
lief to his directors that such a merger
would be highly to the advantage Of
both banks.
After the directors have agreed to
merger, legal notices have to be
published for a month in the local
papers and action then taken by the
stockholders Of both institutions. In
the majority Of bank merger PROPOSE
tons, the stockholders accept the deci-
sions of the boards Of directors.
Exchange Of Stock Expected.
It is understood in the financial
district that the merger of the two
banks will be brought about through
an exchange of stock. The merged bank
VIII OF course take new name showing
that it Is a consolidation of a national
bank with trust company.
The belief was also expressed today
that there will be no important changes
in the official personnel, the five diff
ferent Offices to be kept in operation
by practically the same officials as have
been conducting them for long time
The personal problem is also a serious
one in bank mergers, especially in cases
where two banks merge and one bank
is closed Immediately. Such a situation
is not to prevail in this instance, az
least not for long time.
The June 30 statement of the Fed
eral-American National showed total
capital of 81 800 900. Surplus and undi-
vided profits were reported as 81 ,252,079,
while deposits on the June 80 call
amounted to $11 ,435, 302 The bank
placed its total resources at $14,897, ass.
The book value of the stock Is placed
at $17825 per share, the par value is
500 and the last sale of stock on the
Washington Exchange was recorded at
$275 share.
Merchants Bank Opened in 1922.
The Merchants Bank & Trust Co. has
81 100000 capital; surplus and undi-
vided profits on June 80 of 1858 899,
while deposits reported TO the controller
on June 80 totaled So, OCT ,698, with total
resources Of $9,132, AL. Merchants Bank
stock, par value 500, has recently been
selling on the local exchange at S125 a
share. The book value figures at
$1,000.
The Merchants Bank was organized
April l, 1922, by Peter A. Drury, who
was its president until about two years
ago, when he resigned and was made
chairman of the board Wishing to re-
tire from active banking, Mr.. Drury
resigned several weeks ago as chairman
Of the board, although it was stated
ut that time that he had retained his
stock holdings in the bank. For many
years his untiring energy and business
ability we're revealed in the banks sub
itantial growth and the directors ex-
pressed keen regret over his retirement
Federal-American's officials.
In addition to President John Poole,
he Federal Americans officials include
William j. Eynon, Wilmer j. Waller
and Charles B. Lyddane, vice presi-
ients Charles d. Boyer, cashier; Ar
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