Evening star., 1938-06-16
Bank
Continued From First Page.)

Vernon Mortgage Corp, which pur-
chased the remaining assets.
To Be Pay in FULL
The $4,000 depositors who hold par
ticipating certificates of $50 or less
in value are to receive q total Of about
$3.50, 900. which, under the plan, will
pay them in full. This fund is de-
rived from two sources. one-fourth Of
which is the cash pro-rata distribu-
.tion from the proceeds Of the sale
Of all the remaining assets of the
Mount Vernon liquidating trust at
public auction on March 3. three
fourths of which was contributed by
the International Association of Ma
chinists as part Of its plan Of termi-
nation of the Mount Vernon liquidat-
ing trust.
Notices will 60 out soon to these
depositors with less than $50 notify
ing them when to call for their funds
at the City Bank Of Washington or any
Of its branches. These people are
asked not to call at the City Bank until
they have received an oficial notice
in the form Of letter from the Mount
Vernon Liquidating Trust, notifying
them to come. These letters are to
be mailed out in groups of about
1000 day, and the pay-off probably
will begin some time next week. The
branches of the City Bank of WASH
ington where participating certificates
may be cashed in will be listed on
the letter.
The reorganization plan on which
officials have been working for months
is now ready to be consummated, and
will result soon in the distribution Of
the common and preferred stock of the
new Mount Vernon Mortgage Corp.
Machinists' Association Aids.
Success Of the plan was largely due
to the cooperation Of the International
Association Of Machinists, which was
one Of the largest stockholders in the
Mount Vernon Savings Bank. This
union advanced $150,OO0 in cash. for
which they will receive 10000 shares
OF no-par common stock upon which
they can receive no dividends until all
Of the preferred stock has been once
called for redemption. The union out
Of the common stock received will con-
tribute to the old stockholders Of the
Mount Vernon Savings Bank one share
Of the common stock Of the Mount
Vernon Mortgage Corp. for each share
Of bank stock. The bank stock is being
Cancelled under the reorganization pro-
gram as the bank is surrendering its
charter in West Virginia through legal
proceedings in court at Charleston.
Preferred stock in the Mount Ver-
non Mortgage Corp. Is to be issued
to holders Of participating certificates
in the Mount Vernon Liquidating
Trust who agreed to the reorganisa-
ton plan.- They will get preferred
stock of. 81 par value in the total
amount of $975,00O. This is per
cent preferred stock cumulative as
to dividends after December 81, 1899.
The distribution of funds to the
Is, 900 depositors with $50 or less will
be handled by the City Bank, of
which c. F. Burton is president.
This bank maintains its head
quarters in the office OF the old Mount
Vernon Savings Bank and has five
branches scattered throughout the
city.
The Mount Vernon Liquidating
Trust is operated by three trustees,
Thomas E. Burke, E. c. Dawson and
E. Flavelle Koss; executive secretary,
Robert T. Highfleld, and general coun-
sci, L. Harold sothoron. These con-
stitute the Board Of Directors OF the
Mount Vernon Mortgage Corp.