Evening star., 1933-10-24
NEW BANK MERGER
UP TO DEPOS|T0RS
Mt. VernOn.WaShington Me.
chanicS Linking Depends
on Waiver Poll.

The Mount Vernon Savings Bank to-
day launched a move to obtain from
depositors sufficient waiver agreements
to consummate the merger plan con-
sclidating the institution with the
Washington Mechanics Savings Bank.
Forms we're being printed and will be
mailed as rapidly as possible to the
Mount Vernon depostors, who will be
asked to waive not more than IS per
cent CT their deposits in order to re-
ceive in cash when the bank opens not
less than 35 per cent.
Depositcrs holding three -fourths OF
the total deposits in the Mount Vernon
bank must sign the waivers before the
plan can become effective. Iwo-thlrds
OF the stockholders must agree, but 1t IS
understood nost Of these have accepted
the plan already.
Final approval was given the merger
plan By the board of trustees of the
Mount Vernon Bank yesterday after
noon after previous favorable action BY
the board of the washington Me-
chanics
Trustees to Liquidate Assets.
Sufficient of the prime and liquid as
sets of the Mount Vernon will be turned
over TO the Mechanics bank to meet at
least 35 per cent Of the deposit liability
of the former bank. The remaining
assets will be placed in the hands OF
three trustees. agreed to by the Treas
TRY Department and by both banks.
These trustees will serve without COM
pensation and will be empowered to
make a slow. orderly and economical
liquidation of the remaining assets.
They will not be forced to a speedy
liquidation, which might result in these
days in a sacrifice of values.
The trustees are F. c. Dawson. gen.
eral secretary treasurer of the Interna-
tional Association of Machinists, which
is the largest stockholder and one Of
the largest depositorS of the Mount
Vernon: Thomas E. Burke, general sec
retary-treasurer of the United Associa-
ton Of Plumbers and Steamfitters,
which is one of the largest depostors,
but not a stockholder. and Dr. E. Fla
veile KoSS, druggist at Seventh street
and Florida avenue, who is stock
holder and depOsitor.
New Stock Issue to Be Offered
A new issue of stock in the enlarged
Washington Mechanics Savings Bank
will be offered jointly by the two merg-
ing banks in the amount of 100000
at $50 share. $40 of which goes to
par value and $40 to surplus.
The release Of s. cents on the dollar
from the Mount Vernon deposits will
make available about S750oOO. it IVES
estimated How soon this can be made
available will depend largely, officials
said, on the speed with which de-
poStors sign and return the waiver
agreements. which will 60 into the
mail in the next few days.
The waiver agreement will be accom-
panied by letter from the Reorganiza-
ton Committee of the Mount Vernon
bank signed by all members of that
committee. including Frank w. Lee.
president of the bank. chairman of the
committee: Harry w. Hahn. E. c.
Dawson. Fred Hewitt, Robert T High
field. vice president of the bank; James
H. Baden, H. Glenn Phelps and L.
Harold Sothoron, general counsel of
the Mount Vernon
Ezra Gould, president of the Wash
ington Mechanics Savings Bank. con-
tinues as head of the enlarged bank
and will have as new headquarters the
Offices of the Mount Vernon at Ninth
street and Massachusetts avenue.