Evening star., 1933-05-15
Three or Four Considering
Final Details Before
Taking Action.
SUCCESS IS EXPECTED
WITHOUT R. F. C. HELP
Capital Of at Least Million Talked
as Officials Meet With Gra-
ham, Central Bank Chief.

Possibility that three or four mora
Washington banks in the hands of con1
servators may join the movement Off.
cially launched Saturday night by foul
institutions to form new big central
national bank arose today as oficial
Of the new merger went forward with
the program to set up the new bank.
No definite action had been taken up
to noon today by the institutions which
may come in, but it was freely pre-
dicted that within 48 hours decisions
will be reached. Among the banks
understood to be contemplating the
matter are the Northeast Savings Bank,
the United States Savings, the Wood
ridge-Langdon Savings & Commercial
and the Seventh Street Savings Bank.
The merger as it now stands will
unite in a new national bank, the
Federal-American National Bank &
Trust Co., the District National Bank,
the Potomac Savings Bank and the
Washington Savings Bank, with a
minimum capital structure of 81 600, 900.
Edwin c. Graham, head of the new
bank, went into conference early this
afternoon with members of the joint
organizing committee with a view to
working out further details of the big
merger. He had with him John Poole,
president and conservator of the Fed
eral-American, and Joshua Evans, jr.,
president and conservator Of the Dis
trict National
Further announcement concerning
the development of the new bank was
expected to be forthcoming shortly, as
many problems were taken up by the
joint organizing committee
The sale of stock stands out now
as one of the factors in the situation,
and the new bank is building capital
structure of at least 81 1000, 900. Stock
holders and depositors in the old banks
joining the new one will be asked to
subscribe to this stock.
The capital structure Is expected to
be raised without asking the Recon-
struction Finance Corporation to SUBJ
scribe for preferred stock, such as il
authorized under the emergency bank
ing act. This was interpreted in bank
ing circles today as an indication Of
strength on the part of the new bank,
as 1t would still retain the privilege Of
asking the r. F. C.. to subscribe If it
SO desired. It is confidently believed,
however, that the whole structure will
be raised without recourse to the Re-
construction Finance Corporation.
r. F. C. Held Favorable.
It was understood further that the
Reconstruction Finance Corporation is
at least favorable to the organization
~ tk,A IN, nd Dc ~,
to assist it in other particulars-for
instance, in so-called organization Of
loans advanced to member banks in
the new merger. This factor was in
terpreted by those in close touch with
the situation as not only helpful to
the merger. but as an indication the
Government has expressed confidence
in the new plan.
The plan for the merger, as a mat
ter of fact, is coming to be known as
the washington plan" because it is
a distinct departure in many particu-
lars from the well-known Spokane
plan"
The Capital plan. for example, in
cludes the consolidation of several
banks, which may run up to eight or
nine; whereas the Spokane plan has
been largely used only for single insti-
tutions. So sound and successful has
the principle of the Spokane plan been.
however. it was pointed out. banks
which, over a period of the last two
years have reopened under its program
have invariably begun with an increase
in deposits and continued with sue
cessful operation ever since.
The District National Bank, which in
tends to make no vital change in its
previously announced plan for reopen
ing, has asked its stockholders and de-
positors to subscribe to stock. De-
positors have been asked to subscribe to