Evening star., 1937-02-24
Bank
Continued From First Page.)

Of about s15O,o0o from the Inter-
national Association Of Machinists.
The new corporation will borrow
not to exceed $350,000 from the Re-
construction Finance Corp. With this
cash the new corporation will pay in
full the approximately $4,000 de-
positors and do certain other things
It will use some of this money fol-
"the discharge or acquisition Of GER
tain prior rights and liens against
the assets to be transferred to the new
corporation to effect the conservation
Of this plan"
= 40oo Paid Already.
=, All depositors Of the old Mount
5 Vernon Savings Bank have been paid
dividend Of 40 per cent of their de-
posits and received for the remaining
so per cent participating certificates.
The 40 per cent paid in 1884 amounted
to about 100000.
All depositors who have participat-
ing certificates of less than $50 would
be paid in full when the plan is con-
summated. Depositors who have GER
tif1cates amounting to more than $50
would receive preferred stock dollar
for dollar in the new Mount Vernon
Mortgage Corp. This preferred stock
Is cumulative as to dividends after
December 81, 1899, and is callable at
, any time at par and accumulated
dividends.
Common stock in the new mortgage
corporation is to be issued to the In
ternational Association of Machinists,
which has turned over the $150,000
worth of assets.
Proposal Explained in Detail.
The payment in full to about $4,000
depositors is expected to amount to
$150.000. The trustees who mailed
out the proposal today to all depositors
holding certificates Of more than $50
Of the board of the Mount Vernon
hquidating trust and also general Sec
retary-treaSurer of the International
Association of Machinists; Thomas E.
Burke and E. F. Koss.
While all depositors holding a Ger
tificate worth more than $50 are re-
ceiving the requests for approval, no
communications are being mailed to
the depositors holding certificates of
less than $50, which are to be paid
in full. Stockholders of the Mount
Vernon Savings Bank are being cir
cularized by the International Asso-
citation of Machinists, to surrender
their old stock.
Speaking for the trustees, Dawson
explained that the common stock held
by the International Association Of
Machinists will not pay cent Of divi-
dends until the depositors holding
preferred stock in the new mortgage
corporation are paid in full.
Dawson feels this new plan will
pay off in full every depositor Of the
Mount Vernon Savings Bank.
The reason for establishment Of the
new mortgage corporation, he ex-
planned, is that it will enable the man
agement to realize greater returns on
the assets and thus make possible the
payment to depositors. Restrictions
on such trust as the Mount Vernon
Liquidating Trust would prohibit, he
said, such operations as are possible
under the new mortgage corporation.
Such operations include the improve
ment of property, renewal commission
on loans, insurance commissions and
property management fees.
Would Set Up Going Concern.
In other words, he went on, the
change from the trust to the new cor
poration would be one from Hqui-
dating concern to going concern au-
thorized to earn money.
The Mount Vernon Iiquidating
Trust now has net assets of approx
imately $1,200,000. estimated sound
value, according to the trustees.
The Mount Vernon Liquidating
Trust has been administered by the
three trustees, with Robert r. High
field executive secretary and l. Harold
Sothoron general counsel. .
How soon the plan can be put into
effect and the first payments made
was problematical today, but Secretary
Highfield, Chairman Dawson of the
Mount Vernon Liquidating Trust and
Frank w. Lee, former president Of
the Mount Vernon Savings Bank, who
now Is q vice president Of the City
Bank Of Washington, estimated that 1t
may be about 30 days.