Evening star., 1933-12-22

lend our cooperation to the presi.
dents program by increasing the CAPT.
tai structure OF this bank and have
mendtng the issuance of 81 SOC. 900 5 De,
cent preferred stock, consisting of is.
OO0 shares OF par value of 500 each
IhlS increase in our capital has the
approval OF the governmental authori-
ties and will be put into effect on Feb
ruary l, 1884. after the ratification by
| the shareholders of this bank at the
annual meeting, on Tuesday, January
8, 1884.
Will Provide s7,5O0,O00.
This action will leave unchanged the
present capital represented by COM
mon stock of $1,000 900, surplus ac-
count OF $4,000 900, and after giving
effect to the proposed additional capi-
tai will give us capital, surplus and
undivided profits and reserves of over
You Will find inclosed formal notice
OF the annual meeting of the share
holders OF this bank, together with the
proposed amendments to the articles of
association, setting forth the terms and
provisions relating to the new pre-
ferred stock, You will note that the
preferred stock Is retirable in whole or
in part at par and accrued dividends;
and that an annual retirement fund is
provided for from earnings. In our
judgment the annual requirements for
preferred dividend and retirement fund
should not interfere with the present
dividend policy on the common stock.
Under the new articles of associa-
ton. it is required that dividend action
be taken semi-annually, as dividends on
the preferred stock are payable August
and February l. This will not inter-
fere. however, with the continuance of
our policy to pay common stock divi-
dends quarterly, although all declara-
tions of dividends will be for six
months.
Will Recommend Dividend.
"Your president will recommend to
the board of directors at its regular
meeting in JANUARY that dividend at
holders of record December 81. 1888,
payable 81 share on January IS, 1884,
and 50 a share on April IS. 1894. to
Our shareholders are entitled to sub
scribe to this issue OF preferred stock
"s PoAJ VA q PAo A"e" Hs'sAS Va oAAS sAA@@A y
preferred tor each Two shares common,
and the Reconstruction Finance Cor
poration has formally authorized the
purchase of any of the issue of pre-
ferred stock not subscribed for by our
shareholders. Subscription blanks will
be furnished, upon request, to those
shareholders desiring to subscribe. APP
plicati0ns from shareholders TO pur-
chase shares, at par, in addition to the
number they are entitled to subscribe
for, will be considered by the Board OF
Directors if received on or before Jan
uary 26, 1884.
In order that this increase in our
capital can be handled in an orderly
manner, shareholders Of record as Of
the close of business December 81, 1888,
will be entitled to subscribe, and pay
ment therefor must be made before the
close of business January 26, 1884.
Your board of directors recommends
to the shareholders that this increase
in our capital be authorized. We are
incloSing a proxy in order that your
shares may be voted at the annual
meeting, which we will appreciate your
signing and returning promptly in the
inclosed envelope II you cannot be pres
ent in person"
The action taken today by Riggs
Bank is in line with recommendations
personally made by President Roose-
welt to the banks Of the country. The
leading clearing house associations of
the country have approved this general
move to increase the capital structure
of banks, and many of the biggest
banks of the United States have taken
steps already to enlarge their capital
structure along these lines. Many of
them have sold their new issues of
preferred stock direct to the r. F. c.
The Riggs Bank is the first financial
institution in Washington to make
such a move, and there was no def
mite indication today as to whether it
may be followed by other banks Of this
citr-