Evening star., 1938-09-18

the plan. as sug- r
gested, is adopted
by the stock hold oro Preston.
ers. the condition of your company
Will be greatly strengthened and a
resumption of dividends upon the
capital stock may be reasonably ex-
pected in the near future he ad-
vised holders.
your board of directors on July
~ approved such change and recon-
mended the same to the holders. II
they approve, the matter must then
be submitted to the controller of the
currency and becomes effective upon
his formal approval.
New Law Clears Way.
Owing to the fact that in the laws
for the District of Columbia, under
which trust companies are incorpor-
ated, there was no provision permit
ting reduction of capital "a privilege
allowed national banks) no action
could be taken until an amendment
to those laws could be effected An
amendment allowing trust companies
to reduce their capital was passed
by he last Congress and on June 30
was approved by the President, thus
granting trust companies in the Dis
trict the same privilege as national
banks.
1T is proposed that this readjust-
ment shall be accomplished by chang
ing the par value of each share OF
stock from 500 to $40, the number
OF shares to remain the same, namely
10000. All holders will be requested
when the readjustment is approved
to turn in their stock certificates for
the endorsement thereon OF the change
in par value.
The change of the par value from,
500 to $50 will not effect the interest
each shareholder now has in the COM
pany. There will, of course, be nc
distribution of assets of the company
to the stock holders and there will
be no change in the physical assets
OF the company.
Would 90 TO Surplus.
1T is proposed that the 81 900 00(
freed from capital will be used as
follows: $50O,0o0 will be added to
surplus thus increasing our surplus
to an amount equal to capital; $3.50, 900
will be added to reserves for contin-
gencieS and the balance, or $3.50, 900
will be used to write down on the
books OF the company the banking
house, other real estate and loans
and discounts
Your directors, in accord with the
controller of the currency. have
agreed to the reduction of vault work
and office fixtures to the amount of
$35, 900.
THE proposed change can readily
be seen in the following tabulation
which is based on the statement of
the company as of August 81, 1898.
The readjustment, if approved by the
stockholders and finally by the con.
troller of the currency. will be made
as Of the date Of his approval Due
to the daily change of balances, sew
eral of the items will, however, be
different as to amounts.
ASSETS.
Proposed
Cash and due '"'''"'"''
from banks S.2a25.o7a74 S..ao5..7p.74
Govt. bonds 3.129.OSs.45 3,I290Ss4 *
Other securi-
ties ..2O2."5S.o2 2,2O22 25s 90
Loans. disc'ts 2.3a5,53I.41. 23S.30s 81
Interest re-
ceivsble 12,234.32 7oo34 2,
Hank mouse 1,711.174.28 100000. .OO
and fixtures 136,5OO.OO 35OOO oo
Other real
estate 1,OO6. sol ss pal,5g1 IA
Other assets 29a64 3S ~ 064 3S
$13.6o9.21".67 Sl3,257,712.67
LIABILITIES.
CAPITAL - $4,000. 300 ST. 900 900. .OO
surplus - 500.000.0O 100000 90
Undivided '''
pro1its 56s,33s.o2 4s4.s3s .o2
Reserve for
continRen.
cies - 1s.4S9s4 s.4sa "a
Total cap.
structure S3.0S4. .S27.56 S21333.7. "a
Deposits lO,464,672.65 10 O4H4RSa6S
Reserve for
int. taxes
expenses 5a,T12.46 hQ11o a.
s13,6O9,212.67 S13.257.7l2.e7
This plan has been submitted tn