Evening star., 1933-05-22
Appointment Is Announced
by Graham-Repre-
sents Treasury.
STOCK SALE CAMPAIGN
ADVANCED BY MEMBERS
Northeast Savings Calls Meeting
for Tonight at Stuart
Junior High School.

has been assigned by the Treasury De.
partment to help set up the organiza-
ton Of the new proposed Hamilton Ma
tional Bank, comprising six financial
institutions, it was announced today by
E. C. Graham, president of the new
bank
Mr.. Forster will have his Office in the
headquarters of the new bank at the
Federal National Bank &
Trust Co. Building at Fourteenth and G
streets. He is the son of Rudolph Fors-
ter, executive clerk of the white House
and has achieved national and inter-
national reputation as a financial ex-
pert.
Mr.. Forster comes to the new bank on
a loan from the Treasury Department,
who in turn borrowed him from the
Reconstruction Finance Corporation. In
his new capacity he will be on the
pay roll of the Treasury Department
and carry the full authority OF the Gov
ernment into the organization and d.
rection of the new Hamilton National
Bank.
Will Aid Organization.
Announcing his appointment today
Mr.. Graham said that Forster will help
set I'D the organization of the new Ham
ilton National Bank, appraise assets and
work out details of the merger. He
viii act in the capacity of an official
Government adviser to the new presl-
dent, Mr.. Graham. His term of office In
this capacity, it is understood, will be
indefinite and he will remain so long
as he is needed.
Forster is thoroughly conversant with
the local banking situation and as
an examiner for the Reconstruction
Finance Corporation he has already
carefully gene through all of the local
banks in the merger. He is familiar
already with their assets and their
organization and is prepared immedi-
ately to help the local officials in set
ting up the new consolidated financial
institution.
Meantime the campaign to sell stock
In the new Hamilton National Bank
went forward at the member banks,
who put the proposition of buying stock
directly up to their stockholders and
depositors.
The banks are out to sell 1000 shares
of stock at $25 share with par
value of $40 each The extra IS goes
to surplus. This would create a capi-
tai stock of S1,000,000 and a surplus of
$3.50, 900. The new bank is to be ma
tional bank and member of the Federal
Reserve System. The stock will carry
double liability the same as any other
bank stock.
Adopt Various Methods.
The six members of the merger, the
District National Bank, Federal-Amer-
ican National Bank & Trust Co., the
Potomac Savings Banks the Washing
ton Savings Banks, the Northeast Saw
ings Bank, the Woodbridge -Langdon Saw
ingS g. Commercial Bank, are adopting
various means of presenting the matter
to their stockholders and depositors.
All are sending general prospectus
and stock subscription blanks. The
Northeast Savings Bank has called q
meeting at o'clock tonight at Stuart
Junior High School, when the matter
will be presented by speakers. Among
those expected to be present are Presi-
dent Graham of Hamilton National, w
Irving Shuman of the Treausry Depart
ment, who has been the most active
Federal official in setting up the merger
Leonard P. Steuart, president, ano
George F. Hoover, vice president anc
conservator of the Northeast Bank.
The District National Bank continues
1t circularized its depositors when il
started the movement for the merger
It is also sending out the uniform pros
pectuS.
Receive Letters Today.
Stockholders and depositors Of th'
Federal-American National Bank &
Trust Co. received in their morning
mail today a letter from the Subscrip
nF I,nx, clyS IN
subscriptions for stock in the new
Hamilton National Bank.
Stockholders are asked to subscribe
for at least IS per cent of their preSen
holdings, and depositors are asked Il
subscribe 10 per cent of their total de
posits.
Through the new bank, whose pro
spectus also was sent with the letter, i
is explained 80 per cent of all balance
in this bank will be made available
when the new bank opens"
Capital funds must be raised before
the new bank can open" says the let
ter. signed by William John Eynon
chairman of the Subscription Commit
tee. This capital should come pri
marily from depositors and stockhold
ers of the participating banks Sub
scriptionS from the general public viii
also be received,
Every stockholder should subscribe
for at least 25 per cent of his present
holdings. For instance, if you owl
four shares of this bank you shoule
subscribe for one share of the Hamilton
National Bank-preferably more"
Under a subheading of the letter en-,
titled THE Depositors' Opportunity,
the letter said: Every depositor will b
given the oportunity to participate II
the ownership of this new bank. Ever.
depositor should own one or NOR
shares. 1t is suggested that at least II
per cent of your present total balance
be invested in the new stock. 1llustra
ton: If your present balance is $3.50
SO per cent of this, or Sl25, Is tn
amount to be made available through
the new bank. If you subscribe TO L
per cent of your total balance OF Szot
that would be S25, which Is the pur
chase price of one share. However
with SIPS being made available you cal
subscribe up to five shares.
Two Blanks InclOsed.
Two different kinds of Subscription
blanks are inclosed. subscription blan
"A" TO be used when the stock Is t
be paid for in cash or by check on an
other bank.
Subscription blank "B" is to be use
"if you want to pay for the new stoc
out of that part of your balance whicI
will be placed to your credit in tn
Hamilton National Bank
I'VE suggest that you enter you
subscription Immediately by mail, or b
calling at one of our five Offices, wher
every detail will be explained. Indica
tions point to an oversubscription an
the books may be closed without fur
thef notice"