Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-12-22
PLAN FOR CAPITAL
FIRM PRESENTED
Program for Reorganization
of FederaI.American Co.
Offered to Holders.
BY EDWARD C. STONE.

American National Bank, 10 carry Oh
q real-estate loan business has been
placed before the stockholders for
approval. the directors and commit
tee on reorganization having already
passed on them favorably.
The chief aims of the reorganiza-
ton are to eliminate the preferred
stock dividend arrears, which will
amount to $112.344 on December 81,
and eliminate balance deficit which
technically exists at the present time.
The committee on reorganization Is
made up of Herbert Corey and James
M. Johnston, representing the pre-
ferred stockholders; G. Thomas Dun
lop and DR.. Charles Stanley White,
representing the common stockhold-
ers. and John Poole, president of the
company.
The present plan contemplates the
issuance of one share of new pre-
ferred stock tpar 5000 and the ex-
change of eight shares of old common
stock of no par value for one share
OF the new common stock of no par
value. 1t is intended to have out
standing 4,68l shares Of preferred
stock and 1851 shares of common
stock. The latest report shows that
the company is not now in position
TO meet the s112,344 back dividend
requirements.
The committee recommends that
the dividend rate of the new pre-
ferred stock be reduced to SIS per
share, but that the cumulative fea-
ture of the old preferred stock and
its redemption price of sll0 share
be retained. 1t is also recommended
that the feature of the old stock CIV
ing the preferred shareholders an
extra ST dividend after the common
stock has received the same dividend
as the preferred be retained.
The directors TO the company are
Charles G. Abbot, Byron S. Adams,
Walter A. Brown, George w. Harris.
Harry King, Ralph w. Lee. John
Poole, James Brown Scott, Leon To-
briner and L. Perry West. The pre-
Eerred stock, now sold over the coun-
ter. has acted favorably since the
plan was placed before the stock
holders indicating that the proposals
are considered advantageous to them
The latest bid on the preferred is 80
and on the common ~.
Christmas Bonuses Increase
There seems to be no let-up in the
food of Christmas bonuses being paid
out by brokerage houses as result
Of an excellent years business. with
the New York stock market going
higher and higher, with practically no
setback.
w. B. Hibbs & Co. is distributing a
Christmas bonus of one months salary
to all employees of the brokerage firm,
W. w. Spaid announced today. This
Is the second distribution of the kind
made during 1886.
G. Bowie Chapman, manager of the
Washington Office of Laidlaw g. Co.,
announced this noon that the COM
pany is paying Christmas bonus of
one-fourth of months salary to all
employees, at the same time the con-
Germ having granted 10 per cent in
crease in salaries.
The managers of the Washington
Office of the G. NJ P Murphy g. Co.
has voted bonus to employees, largely
the clerical forces in the New York
ONCE and all the branches This
,Yuletide distribution does not reach
Che high officials.
Winthrop, Mitchell g. Co., another
brokerage house with a Washington
office, also went down on the list today
as among the Christmas bonus dis
tributors The firm paid weeks
salary to all employees.
Financial District Gossip.
William D. Hoover. chairman of the
board of the National Savings g. Trust
Co., and for Is years one of the city's
Leading bankers. leaves here tomorrow
for Huntington, w. Va, to pass Christ
mas with his daughter and grand
children. incidentally. Mr.. Hoover is
most optimistic on the 1887 outlook.
He goes still further and says he be-
Geves business and economic conditions
are going to be highly favorable for
several years.
Robert K. Carpenter, who is con-
hected with the brokerage firm of
Fenner g. Beane, has gone to Florida
and will enjoy two or three weeks va
cation at Miami
David Samakow, associated with the
local Office of the New York Life In
surance Co., led the entire sales force
OF the South Atlantic department in
business produced in November. The
territory includes Philadelphia, Balti-
more and several other large cities.
Three Receiverships Combined.
Frederick j. Young, receiver of the
international Exchange Bank, will
take over the affairs of the Bank of
Brightwood and the United Savings
Bank on January l. Claude H. Wood
ward, former president Of the Mount
Vernon Savings Bank, has been in
charge Of the Brightwood bank since it
was closed on July, 1882, the bank
having paid SIS per cent Of the deposit
tors approved claims Carter B.
Keene. Washington lawyer, has been
able to pay 80 per cent as receiver for
the United States Savings Bank. 1t is
believed that one receiver can now
carry on the remaining settlement
adjustments.
More Business Gains Seen
The powerful recovery momentum
which has been generated will carry
trade volumes and industrial activity
to still higher levels. says the United
Business Service in its current report.
Large dividend disbursements, good
farm income and wage increases have
swelled consumer buying power. I'm
tv1rc NJ
higher operating costs and selling
prices have stimulated industrial pur-
chases.
The favorable trends which are now
being recorded in most lines of BUSH
ness are likely to continue over the
near term, the review concludes, but
periodic setbacks, caused by legislative
threats, higher taxes, strikes, increased
prices and larger inventories, must be
expected.