Evening star., 1939-03-23
Reorganization Plan
Voted by National
Mortgage
Preferred Par Value
And Dividend Rute
Are Reduced
BY EDWARD C. STONE.

structure.
The stockholders of the corpora
ton adopted the reorganization plan
at a special meeting yesterday. They
voted to reduce the par value of the
preferred stock from $40 share to
81 a share and at the same time
changed the dividend rate from
per cent cumulative to per cent
non-cumulative.
The preferred stock is to have credit
for the present accumulated divi-
dends, these to be paid as fast as
earned under the new setup.
The plan also provides that in
event of the liquidation of the
corporation the preferred stock is to
receive $40 share and the unpaid
accumulated dividends.
Under the new plan the preferred
stock is given vote in the manage
ment OF the company, along with
the voting power of the common
stock.
Other than the adding of voting
rights to the preferred, the status
Of the common stock remains un-
changed.
Capital Cut to S1,500,O00.
The reorganization reduces the
capitalization of the National Mort
gage & Investment Corp. to about
s1,5000O0.
The company was originally $3,-
100000 corporation. In the present
reorganization, the company has re-
triad on mn cl,oroc IF
which had been held in the treas
ury, thus reducing the former CAPT.
tai by 100000.
The remainder of the reduction to
e1,500,000 was brought about by re-
ducing the par value of the pre-
ferred stock now outstanding from
$40 to 81 per share.
The reorganization was brought
about by impairment of capital due
to drop in real estate values over
period of years, Mr.. Schick stated
today. This prevented the payment
of dividends on the preferred stock,
as under Delaware law, no firm with
impaired capital is permitted to
pay dividends.
Mr.. Schick said today that the
corporation is in sound condition
and expressed the belief that divi-
dends on the preferred stock will
be resumed by the middle of this
year.
Common. In Better Position.
He added that the common stock
will be in a much better position,
because of the reduction in the
amount of preferred stock outstand-
ing, the reduction in the par value
and the fact that dividends can be
paid as they are earned.
In addition to President Schick
the other officers are Clarence F.
Donohue, vice president; Harold E.
Doyle, vice president and M. c.
Buckley, secretary and treasurer. The
board OF directors follows:
James w. Beller, M. G. Buckley,
Clarence F. Donohue, Harold E.
Doyle, H. Rozier Dulany, jr.; John
j. Hamilton, Ashton C. Jones, Gran
dal Mackey, James O'Donnell. jr.;
Vernon G. Owen, j. Garfield Riley,
James P. Schick, David S. Stanley,
w. w. Stewart and Hugh A. Thrift.
insurance Sales Mount.
Washingtons gain of per cent
In new life insurance written In
February, compared with February,
1898, caused wide surprise among
insurance agents who had looked
for drop following the intense
drive in December and January. To
give prospects the benefit of the
old rates, practically all the under
writer's in the city made December
their hardest working month in
years. Consequently, the February
results were wholly unexpected, it
was said in the financial district to-
day.
The 3 per cent pickup compares
with a 9 per cent advance for the
national average, while the two
months gain of 26 per cent is below
a % per cent jump for the whole
country. In the two months Wash
tngton agents wrote $11,811 900 in
new business.
Virginia reported a February gain
OF per cent, with sales total of
$7.012,000. In the two months sales
Jumped "a per cent on a total VOL
ume Of $16,71600O.
Maryland did not do so well, de-
crease OF 3 per cent being involved
IN total sales Of $6,984 900. In Jan
uary and February, however, busi-
ness was 10 per cent better than last
year. the volume reaching $l7,411,-
600. West Virginia was'4 per cent
ahead IN February and 10 per cent
IN the two months.
City Holds Policy Record.
The South Atlantic States as a
group reported sales total of s48,-
$4,000, a gain of per cent in
February and "a per cent advance
IN the longer period, sales reaching
Sill 1888, 900. The United States to-
tai IN the same months amounted
to 81 ,261 10000, an increase of
$275, 100000.
The average new policy sold in
washington in 1888 was s3,061
against the average policy in force.
$2,675. Maryland policies averaged
S2,732 and $2,485 for policies in force
1t the end OF the year. Virginias
averages were $2,465 and $2,294.
The national average for policies
sold in 1888 was S2,338 and the
average policy in force on December
81 was for s2,225. The Capital aver
age OF more than $1,000 for 1888
was the largest reported, no State
IN the Union equaling that amount.
Delaware reported the largest aver
age IN force on December 81. It was
$3,137.
Storage Dividend Declared.
Directors Of the Security Storage
Co. have declared a dividend of
S1.25 per share on the outstanding
stock, payable April 10 to stock
holders of record April S, it was
announced today.
Albert w. Atwood, well-known
magazine writer, will be the guest