Evening star., 1933-06-25
SEVENTH STREET
BANK K|S|NCLUDED
IN MERGER GROUP
Becomes Eighth Institution
to Join Hamilton Reor-
ganization.
WON'T CHANGE CAPITAL
STRUCTURE ALREADY SET
Plans Also Going Forward for Re-
opening Franklin on or About
August l.

yesterday gained the Seventh Street
Savings Bank, now comprises 8 insti-
tutions holding 10 per cent of the total
unsecured deposits frozen in the 13 un-
licensed banks Of the District of Co.
lumbia.
This figure was reached by officials
of the Treasury and the Hamilton Ma
tional Bank yesterday after computa-
tions of the set-up of the merger.
The Hamilton now will have total
deposits of about $l1,000,000, which
represent half of the total deposits in
the mergers eight member banks. This
$11 900 900 represents so cents on the
dollar of the depositors' accounts in the
when the new bank opens for business,
now estimated at not later than Au-
gust !.
Assets Around $14,000, 900.
Total assets of the Hamilton now
stand at around $4,000, 900, 1t was said.
The capital structure Is rapidly near
ing its goal Of $1,250,000. As soon as
sufficient cash is in hand from the sub
scriptions to this new stock at $25 q
share, the organizers Ct the bank will
go to the Treasury, probably early this
week, to apply for a charter.
One Of the problems on which con-
servators and Hamilton Bank officials
will work early this week will be the
nature Of the contract to be drawn up
between the conservator and the deposi-
tor, to provide for freeing half of the
depcsitor's money in the new bank.
Edwin c. Graham, president Of the
Syrf nf hA cyt
over the week end, but planned to re-
turn to dive into the mass of work
required in the setting up of the new
institution.
Many Problems Remain.
Many problems of organization present
themselves, such as bylaws, branches
Ct the new merger, personnel, such as
officers Of the bank, and the board of
directors. The names of the men who
will direct the bank must be ready for
submission to the Treasury when the
charter is requested, although they will
not be officially placed in Office until the
stockholders elect the directors, and the
directors name the officers of the new
Hamilton.
The Hamilton will apply for mem
bership in the Federal Reserve System,
through the Federal Reserve Bank at
Richmond.
AS the campaign to sell the final
amounts Of stock was pushed forward,
it was announced last night by Capt.
Chester Wells of the General Subscrip-
tion Committee that the Sanitary Gro
Gerry Co., which had subscribed to
$l2 500 worth Of stock early in the cam
paign, yesterday subscribed to 5000
more. This second subscription was
made, Capt. Wells announced, to help
the Hamilton close up its subscription
campaign more promptly, that the new
bank may open, releasing deposits which
are much needed in the business life of
the Capital Capt Wells feels that when
the more than Sill 900 900 in deposits
are made available they will prove a
definite stimulus to trade throughout
the city, helping return to prosperity.
Announces Joining Merger.
Announcement that the Seventh
Street Savings Bank had joined the
merger was made yesterday by John D.
Howard. president and conservator of
the bank. The board Of directors of the
bank approved the proposal to join the
Hamilton merger and authorized Mr.
Howard to proceed to take the necessary
steps.
The Seventh Street Savings Bank will
operate as branch Of the Hamilton
Bank, 1t was said in official quarters
last night. Although it is the latest
bank to join the merger, it will open
its doors at the same time that all
other members of the merger open.
The Seventh Street institution has
deposits of $1,166,00 The new mem
ber bank will sell a quota of about
S50,000 worth of Hamilton National
= Bank Co. stock, at the stated price of
S25 a share, of which $40 is par value
and SIS for surplus
Addition of the Seventh Street Bank
Will not necesSitate an increase in the
capital structure of the Hamilton
merger, above the s1,250,000. it was
explained officially, as the figure of
ture for a merger of 8 out of the 13
unlicensed banks in the District.
When the Hamilton opens it will re-
lease so cents on the dollar to the de-
positors of the eight member banks, as
follows: Federal-American National
Bank & Trust Co., District National
BaHk, Potomac Savings Bank. Wash
lngton Savings Bank. Northeast Saw
ings Bank, Woodridge-Langdon & Com
mercial Bank, United States Savings
Bank and Seventh Street Savings Bank
1ilc 1ASL unlicensed DdQK TO reopen It's
doors was the Chevy Chase Savings
Bank which was sold to Riggs National
Bank. ard now is operating as a branch
of Riggs.
Working on Franklin
Following the opening of the Hamil-
ton merger, 1t is hoped that the Frank
lin National Bank can reopen as a re-
organized institution, alone, and outside
of the merger.
officials of the Franklin Bank were
in extended conference late yesterday
with officials Of the Treasury Depart
ment on plans for reopening. and will
resume their conference on Monday
morning. Although the required agree
ments from depositors representing more
than three-fourths of the total deposits
in the Franklin Bank have been OBJ
tained, there remain many technical
problems, to be ironed out in the devel-
opment Of plan to reopen the bank
The Treasury Department has approved
in principle the reopening Of the Frank
lin Bank, and now is working In CO.
operation with the bank ofiicials ON a
plan. which 1t is hoped can be COM
pleted soon. The question Of personnel
to operate the reorganized Franklin
Bank has not yet been settled.
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