Evening star., 1934-01-22
FRANKLIN NATIONAL
BEGINS STOCK SALE
DRIVE FOR MERGER
Liberal Subscription Urged
in Letter Sent Out to
Stockholders.
SURPLUS IN LIQUIDATION
OF ASSETS is EXPECTED
Flood of Signed Waivers Of IS
Per Cent of Deposits
Pour In.

The Franklin National Bank today
opened its campaign to sell stock IN the
new Mechanics-Franklin Savings Bank
merger.
The first, move was in a letter to
stockholders Of the Franklin bank who
are asked to subscribe literally in order
to reopen the bank as a member Of the
merger.
Stock will be sold also to depositors,
but the bank began its campaign today.
first with a letter to stockholders.
The new stock, the letter explains.
will not be subject to double liability"
and the purchasers will be shareholders
I'm a going bank that has an enviable
record of earnings over a period OF ap-
proximately n years"
Letter Being Printed.
when the reorganization of the
Franklin National Bank and the COM
bination with the Washington Mechan-
les Savings Bank or its successor bank
has been consummated," said the letter
to stockholders, "the old stockholders
OF the Franklin National Bank will no
longer be subject to double liability ex-
cept theoretically as to the Reconstruc-
ton Finance Corporation loan men
toned in the depositors' agreement, and
this contingency is 50 slight as to be
negligible. 1t is hoped that an orderly
liquidation of the assets will not only
pay depositors in full, but leave a sur
plus to be divided among the ola stocK-
holders"
The letter, which was approved to-
day in a conference between repre-
sentatives OF the bank and the Treas
ury Department, is being printed i'm
mediately and will be mailed to start
the stock sale.
The letter, which is signed by the
Stockholders Committee of the Prank
lin Bank. declares 1t is imperative that
each stockholder subscribe literally, and
while this may not be convenient, it is
much better than 100 per cent as
sessment upon your old stock. with
nothing in return. which appears In
evttable if the proposed plan fails.
Stock Is $50 Share.
You are therefore requested to fill
out and return as soon as possible the
inclosed stock subscription blank"
The stock in the new merger IS SELL
ing for $40 a share. half OF which is
for par value and the other half for
surplus It will be necessary to sell
500. 900 worth of this stock to the
stockholders and depositors. 1t is also
being offered TO the puDIlc.
In the meantime food OF signed
waivers poured into the Franklin Bank
this morning from depositors who are
waving IS per cent Of their deposits
in order to receive IS per cent when the
bank reopens. So many waivers were
received that bank officials stated 1t
will be necessary for the staff to work
overtime and probably at night to
handle the returns. Speed on the part
of depositors in returning waivers WILL
hasten the opening date OF the bank.
Assets Are Taken Over.
When the depositors waive IS per cent
Of their deposits, they turn over assets
Of the bank representing this 80 per
cent into the hands Of three trustees
for gradual liquidation. It is out OF
this gradual liquidation that the bank
hopes to realize further payments to
depositors in the future when money
becomes available.
Meantime, Norman r. Hamilton. VINO
already is receiver for four banks IN
the city, today took over the remaining
assets Of the old Potomac Savings BANK,
which previously had paid SO per cent
of its deposits through the new Ham
ilton National Bank merger. The Po-
tomac Bank Building, at Wisconsin
avenue and M street. is now operating
as a branch Of the Hamilton Bank
The remaining assets which did not 90
into the Hamilton Bank have been In
the hands of George w. Ofutt, con-
servator, who moved them to anotner
location, at l726 Pennsylvania avenue
This is the location Of the old Depart.
mental Bank, which Is in the hands OF
Q receiver.
Mr.. Hamilton, who received official
AUTHORIZATION from the controller Of the
currency. today conferred with Mr..
Offutt and arranged to have the Po-
tornac Bank assets moved from 1726
Pennsylvania avenue to 1406 G street,
the old District National Bank Build
ing, which Is Mr.. Hamiltons headquar-
tiers for liquidation.