Evening star., 1933-05-07
SECOND D. c. BANK
MOVES TO REOPEN
District National Outlines Re.
organization Basis to
Stockholders.

First definite steps by oficials OF the
District National Bank to bring about
the organization of an entirely new
banking institution were announced
last night by Chester Wells, chairman
Of the Reorganization Committee which
has been hard at work on the battling
problem for the last nine weeks, or
since the bank failed to open after the
Nationwide bank holiday.
The proposed plan, which was mailed
to all District National Bank stockhold-
ers late yesterday, calls for the forma-
ton of another national bank, having
6 capital and surplus Of $1,000 900,
$500 900 of which sum shall be obtained
through the sale Of common stock and
the other $500 900 from preferred stock
taken by the Reconstruction Finance
Corporation.
One of the most important aims OF
the new reorganization plan is to make
available at once to the depositors in
the present District National Bank from
announcement says. This sum to be
obtained through the disposal Of liquid
assets.
The announcement further states
that the proposed new institution
would own no real estate. slow or doubt
full paper as it Is intended that such
assets be held by the present bank and
liquidated for the benefit of depositors
and stockholders
It is understood that Joshua Evans,
jr., president of the District National
and conservator of the bank, Is fully
in accord with the reorganization pro-
posals and that he lent the fullest CO.
operation in their preparation.
10000 Shares Planned.
The plan being sent to stockholders
contemplates the issuing Of 10000
shares of common stock, par value $40
per share, to be sold at $25 per share.
Full details Of the proposal are con-
tanned in the following off1cial state
ment made public last night:
The Reorganization Committee Of
the District National Bank has today
mailed to its stockholders a plan which
includes the organization of new
National bank with capital and sur
plus of $1,000. 900, of which 100000 is
to be common stock to be sold at a pre-
MUM of IS per cent, making $500.000
and the obtaining of $500, 900 additional
from the Reconstruction Finance Cor
poration through the sale Of preferred
stock.
1T is said that the first object Of
the plan is to have made available i'm
mediately to unsecured depositors of
the District National Bank from so to
so per cent of its deposits. This Is
contemplated through the acquisition
by the new bank Of the liquid assets of
the District National Bank, consisting
Of securities and loans which could be
Immediately converted into cash, If
necessary, and the assumption and pay
ment by the new bank Of about IS per
cent Of the unsecured deposits Of the
present bank. The new institution
would own no real estate, slow or doubt
full paper, as 1t is proposed that such
assets be held by the present bank
and liQuidated in an orderly manner,
first, for the benefit Of its depositors and
then for its stockholders.
The new bank is to have no con-
nection with the District National Bank
and no interests in the latter's assets
1t will have prime loans and interest
bearing securities carried at present
market values, in addition to its capi-
tai stock and surplus of 81 100000.
Stockholders are being requested to
subscribe for stock in the new bank
Continued on Page 2. Column 81