Evening star., 1937-02-25
INT, VERNON BANK
|PLAN MEETS WITH
prompt APPROVAL
New Corporation to Be
Formed, Paying Deposi-
tors in Full.
FIRST TO BE THOSE
WITH $1O0 OR LESS
Liquidating Trust Receives Flood
of Consents in Form Of
Depositors' Notices.

A flood of approval today greeted
the proposal of the Mount Vernon
Trust to pay in full de-
positors of the closed Mount Vernon
Savings Bank through organization Of
a new corporation.
Into the Offices Of the lquidating
trust came a surprising number Of
documents, signed by depositors of
the bank, approving the plan, which
had been outlined to them by mail.
Under this proposal. the liquidating
trust. backed by the International As
sociation of Machinists, would form a
new organization, known as the Mount
Vernon Mortgage Corp, which would
be empowered to enter into more
active business than could be allowed
liquidating trust. This new corpo-
ration, it is expected, will be able to
earn sufficient funds to pay all de-
posters of the Mount Vernon in full.
The plan provides that the first to
receive their deposits in full shall be
those who had 500 or less in the bank
when it closed in March, 1888. These
depoSitors number about $4,000, and
would be paid about sl50.000 in about
30 days, when the plan Is consum-
mated.
Depositors who has $l00 or more in
the bank when it closed are being
asked to approve the plan. whereby
they would receive per cent preferred
stock in the new Mount Vernon Mort
gage Corp, cumulative as to dividends
after December 81. 1899. and callable
at any time at par and accumulated
dividends.
Consent of Depositors.
It is from these depositors with more
than sl00 in the bank that the office
Of the liquidating trust today was re-
ceiving a flood of approval in the form
of documents known as Exhibit b.
These exhibits, single sheets Of paper,
testify that the depositor consents to
the plan," and incloses his participant
ing certificates. representing the ball
ance of his claim against the bank.
These participating certificates are to
be held "in escrow for the new cofpo-
ration until the consummation OF the
plan" when the depositor will have
issued to him preferred stock in the
new corporation dollar for dollar, with
in cash for fractional
shareS less than 81
The new preferred stock Is to be
issued in the amount Of $l,050. 900,
and is to be prior claim on the assets
Of the new corporation. Common
stock is to be issued in the sum Of
$50, 900 by the new corporation. and
turned over to the International
Association of Machinists, in consid-
Grafton for the assets of realizable
market value of $150,000 turned over
to the corporation by the association.
This generous" action Of the big
machinists' union, approved by Its
annual convention, was understood to
have been Influenced by the fact that
the Mount Vernon Savings Bank was
one of the first labor banks organized
in the United States. The aid of the
machinists' international. therefore,
promises to make it possible for all
depositors in the institution eventually
to receive 100 cents on the dollar,
according to officers of the liquidating
trust.
Tracing the interest of the machin-
lists in the bank, the trustees In their
letter to depositors say that ''in the
early days Of the depression, large
amounts of cash were required to
meet the demands Of the withdrawing
depositors, and the International
Of Machinists voluntarily
purchased at par, for cash, $369,000
face value Of assets, the market value
of which at that time was only a
fraction Of the face value. And in
deed, the International Association OF
Machinists, from the inception Of
the trust, has furnished, without cost.
the Office space used by your trustees
and their employees, in addition to
waving future rent due under the
lease with the Mount Vernon Saw
ings Bank"
Officer of Machinists.
E. c. Dawson, chairman Of the
board of the Mount Vernon Lii
quidating Trust, also is general
secretary-treasurer of the 1nterna-
tional Association Of Machinists. He
is expected to take prominent part
in the direction Of the new Mount
Vernon Mortgage Corp. The other
trustees Of the Mount Vernon Liqui-
dating Trust are Thomas E. Burke,
general secretary-treasurer Of the
United Association Of Journeymen,
Plumbers and Steamfitters, and DR..
E. Flavelle Koss. While officers Of
the new mortgage corporation have
not yet been officially chosen, it is
expected all three Of the hquidating
trustees will take an active part in 1t.
Robert T. Highf1eld. former vice pres
ident and cashier Of the Mount Vernon
Savings Bank, is executive secretary
of the Mount Vernon Liquidating
Trust.
The cash will be provided by q loan
obtained by the Mount Vernon Mort
gage Corp. from the Reconstruction
Finance Corp. This loan is expected
to be about $350,000.
The Machinists' Union is circular
izing stockholders in the old Mount
Vernon Savings Bank to surrender
their stock. which is to be Cancelled.
To these stockholders will be issued,
share for share, new common stock in
the Mount Vernon Mortgage Corp. It
is to pay no dividends, however, until
preferred stock Is redeemed or once
called for redemption" The Mount
Vernon Savings Bank viii surrender its
charter under the State Of West Vir-
ginia.
Strike for Jobs.
wIINO, Poland, February IS R-
Twenty World War tnvalids, unable to
obtain employment. locked themselves
In q private apartment today on .
t,,,poar sfrika until fha Covery,v,aAy,f