Evening star., 1933-06-05
ANOTHER MERGER
OF BANKS RUMORED,
BUT MEETS DENIAL
Continued From First Page.)

preferred stock In the reorganized bank
to waive 80 per cent Of his deposits in
return for which he received 'partici-
pating certificates" and to receive, when
the bank opens, so per cent Of his de-
posits to be made available in cash.
The Franklin, having obtained agree
ments on q total of about $2,100, ,000
worth of deposits. has thus sold more
than 5000. 900 worth of preferred stock
in the reorganized bank. This new stock
Is on-assessable and does not carry
double liability on the stockholder. The
capitalization Of the old Franklin Ma
tional Bank Is $225,000. Double liabil-
ity still stands on his old stock. What
the set-up for the capital structure for
the new Franklin National Bank will
be depends on the Treasury Depart
ment. Omcials of the bank were totaling
their agreements and stock subscrip-
tions today and laying plans for the
next step forward In efforts to reopen
the Franklin Bank outside the Hamil-
tor merger. Oficials of the Franklin
were -committal in regard to the
second merger. involving the Franklin
and two other institutions.
Hamilton Campaign Gains.
Meantime the campaign to sell stock
! In the new Hamilton National Bank
from Florida of Edwin c. Graham,
president Of the proposed Hamilton. Mr.
Graham arrived in the city yesterday
and conferred with several merger lead
ers shortly after arrival. He went to
his headquarters In the Federal-Ameri-
can National Bank & Trust Co. this
morning to confer with committees con-
corning the stock sale campaign. The
Hamilton stock is selling at $25 share
Of par value of $40.
From the District National Bank, a
member of the Hamilton merger, came
a letter to depositors calling for fur
ther subscriptions, pointing out that II
the Hamilton National is not organized
"a receivership may be anticipated"
The letter, signed by Capt. Chester
Committee for the District National
Bank, urged depositors to subscribe at
least 10 per cent of their deposits in
the District National Bank. This should
be done. he said, mot only In behalf of
your own interests, but In that of thou
sands of other depositors, that there
may be made available at an early date
so per cent of all deposits. II the
Hamilton National Bank Is not organ
ized," he said, "a receivership may be
anticipated, In which event none OF
your money can be released for months
and then only in comparatively small
percentages.
"Your committee has exerted every
possible effort in your behalf. said
the letter. 1T is humanity impossible
to make actual contact with each and
every depositor. Your committee has
no wish except to serve you and cannot
believe that you are OF the opinion
that your best interests will be served
by q receivership, but, If you are. 1t
seems useless for them to make fur
ther effort.
subscriptions to date are very un-
satisfactory and an immediate response
to this communication by you
earnestly requested"
Opposition to the entry Of the United
States Savings Bank in the Hamilton
merger will come to q head tonight at
a meeting of depositors called by Col.
Wade H. Cooper, president OF the bank
and majority stockholder, at 2 theater
on U street, near the bank. The meet
ing will be held at O'Clock. Col.
Cooper will explain his hopes for keep
ing the bank out of the merger.
Onicial steps to put the United
States Savings Bank in the merger
have been taken already, however, by
wilbur H. Zepp, vice president and con-
servator of the bank, who now is q
Government official, in charge Of the
institution. He has agreed to join the
merger and plans to sign contract to
that effect. The Treasury Depart
men Is understood to have approved
entry of the United States Savings !
Bank into the merger. but it has not
any plan proposed by Col. /,
Cooper to reopen the bank alone.