Evening star., 1933-11-08
new BANK MERGER
CHEERS CAPITAL
Plans for Franklin National
Help Clear Situation
Here Further.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
The banking skies in Washington now
are being cleared up with most satisfac-
tory rapidity. The announcement in
The Star late yesterday that the WASH
ington Mechanics Savings Bank was
about to take over the Franklin Ma
tional Bank aroused WIDE interest IN
the financial district today.
This is the second merger within a
short time in which Ezra Gould, pres
ident of the washington Mechanics
Savings Bank has been the leading
spirit. Only few days ago he an
nounced that the Mount Vernon Saw
ings Bank would be consolidated with
his institution.
The merger of these two restricted
banks with the Washington Mechanics
will mean a new institution, with about
$4,000 900 in deposits The consolida-
tion will release $4,000, 900 in deposits
which are now frozen in the Mount
Vernon and Franklin National Banks.
On completion of the merger, the
Mount Vernon will release 500 900. or
40 per cent of their deposits. and the
Franklin National will release $780, 600,
which is between Sc and rs per cent
of that institutions deposits.
Gould to Head Merged Bank
The consolidated bank is to be known
as the Mechanics Franklin. Ezra Gould
is to be president, John B. Cochran,
former president of the Franklin Ma
tional, chairman of the board; Thomas
d TsoIrw r.tn ", rl,a
of the Franklin branch, while Clarence
F. Burton, vice president and cashier
OF the Washington Mechanics, will hold
the same positions in the new deal.
Frank w. Lee, former president of the
Mount Vernon, will be a vice president
in the new bank, in the Office at Ninth
street and Massachusetts avenue, which
is to become the merged banks head
quarters.
Settling of the ~,Eranklin's future
leaves only two other restricted banks
In Washington to be taken care of.
They are the United Savings Bank and
the Industrial Savings Bank. Strenu-
GUS efforts are being made to get both
these institutions on their feet again.
Something must happen by the first of
the year as President Roosevelt ruled
some time ago that every restricted
bank in the United States must either
be back on full time or in receivership
by January !.
That means that they will be def
in a very few short weeks. Both wish
to reopen as individual units.
Federal Rulings on New Issues.
The Federal Trade Commission has
ruled that 1t is allowable for under
writers to send out circulars containing
information on proposed new offerings
Of securities prior to effective date CT
registration statement filed, providing
they are marked to indicate that they
are informative only.
The commission ruled that the Se-
curities act definitely prohibits offers
until the expiration of the waiting pc
riod Of 20 days. the time between the
filing and the effective date of registra-
tion statement. The rulings were made
In response to numerous inquiries from
underwriters
The Trade Commission statement de-
clared further that prospective pur-
chasers. whether they be dealers or the
general public, should during this wait
ing period be educated up to the nature
of an issue, which it is expected that
they will shortly be asked to buy, al
ways reminding them that no deterni-
nation to buy is requested of them until
the expiration Of the waiting period"
Towson Begins Institute Course.
Washington Chapter. American In
stitute of Banking. inaugurated new
course on Current Economic Prob
lens" at the chapter rooms In the Bond
Building last night. Lectures win sbe
given every Tuesday evening by Nor
man E. TSTson, assistant treasurer and
manager Of the foreign department o.
the Washington Loan & Trust Co.
The subject discussed in the opening
talk was THE Banker-Is He God, Man
or Devil?" The new course is open to
bank directors and officers. holders of
standard certificates in the Institute
and others having 10 years experience
in finance.
Subsequent lectures will cover Gov
ernment fiscal policies. economic plan
ming, imitation and public works pro-
grams. Chapter officials were gratifleo
by the attendance at the first session.
ss Cities Vote Bond Issues.
New financing approved by the voters
of 88 municipalities in % States during
October totaled only s5,458,715 as COM
pared with 25,l32,750 during Septem-
ber. according to The Daily Bonf
Buyer. Among the larger items ap-
proved were S590000 Cedar Rapids
Iowa, School District; S555.000 Cedar
hurst. N Y, and S370,000 Bath. N. Y
October totals of financing approved
during previous years we're 81 .468. .5ot
in 1882, $3.50, ,433 900 ia 1881, and S4,-
136,500 in 1880.
During October the taxpayers in 81
communities in ID States rejected pro-
posals to issue bonds totaling 1926. .90i
as compared with S7,756,316 in Septenl-
ber October totals for previous year,
were s1,986,500 in 1882, s4.058,294 ir
1881, and s9,o57 900 in 1890
Lively Day on ID. C. Exchange.
The holiday proved beneficial to The
Washington Stock Exchange, as bust
ness showed marked improvement to-
day.
Bonds we're in better demand. Th'
opening sale was in Washington Gal
6s, series B, 500 Selling at 103 Wash.
ington Gas IS, 1860, came out in {
$500 transfer at 1852.
Potomac Electric Power Consolidated
SIS moved In 81 900 transaction at 103 u
Washington Railway g. Electric 4s CAM
out on the board twice, 1000 changing
hands at 81 and 81 600 at S7H, tn
closing price.
Lanston Monotype held the spotl!gh
In the stock division. Ten differen
sales were recorded during the session
every one made at Al The days turn
over In this issue totaled $50 shares.
Potomac Electric Power 6 per cen
preferred moved in two tiny sales, boti
at Ill.
Heard in Financial District.
An unusually large attendance is ex
pected at the November meeting of tn
District of Columbia Life Underwriters
Association, which starts at the Willar'
at 6:l5 this evening. c. B. Merriam
r. r. C. director, and chairman OF tn
Deposit Liquidation Board, will be on
speaker and life insurance president
M. A. Linton, will be the other.
A condensed statement of condltio
at the close of business october 25 a