Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-07
Riggs National Bank
Plans Big Increase
In Capital Stock
By EDWARD C. STONE.

Robert v. Fleming, president of
the Riggs National Bank, announced
today that directors had adopted
resolutions recommending to share
holders for approval at the annual
meeting on January 8, plan of re-
capitalization that will increase the
banks capital from 100000 to
100000 and its surplus from S.
10000 to 100000.
The plan provides for payment of
4 stock dividend of 100000 to
shareholders of record January g.,
and the sale of 10000 additional
shares at $500 per share to share
holders of record January 8, on the
basis of one share for each three
shares held prior to the declaration
of the stock@dividend.
Shareholders will have a right to
purchase such shares until pm.
February n, and of the proceeds,
amounting to 100000, 100000
will be allocated to capital and ST.
000, 1000 to surplus.
Banks Growth Cited.
In a letter to shareholders ex-
planning the plan, Mr. Fleming
stated that for many years the in
stltutlon has been growing steadily,
particularly in the period immedi-
ately preceding and during the war.
Deposits increased from roundly
sl30,000,000 on December 81, 1910, to
more than S300,000,000 at present.
Mr.. Fleming said the banks policy
had been to augment its capital
structure by building up surplus and
retiring its preferred shares, which
were sold following the bank holiday
IL cooperation with the Govern
ment's program to strengthen the
capital structure of the financial in
situations throughout the country
and at the same time reasonable
dividends had been paid to share
holders.
1t is now felt, he added, that steps
should be taken to further in
crease the banks capital funds, in
line with the policy recommended by
the controller of the currency and
other supervisory authorities and
adopted by many of the leading
banks of the Nation.
Same $12 Dividend Forecast.
AS of March l, the date the pro-
posed new capital structure will be-
come effective, the bank will have
capital of S5,000,000, represented by
$4,000 shares at a par value of $100
per share, surplus of 100000 with
estimated undivided profits and re-
serves of $2,752,374.47, or total CAPT.
tai funds on that date of S14,752,-
374.47.
Mr.. Fleming stated that the regu-
lar quarterly cash dividend of SO a
share on present capital stock will
be paid January Is to holders of
record January s. Referring to fu-
ture dividend policy, he said the
banks earning capacity justifies eX-
pectation that the present dividend
of $l2 per share per annum. payable
quarterly, could be maintained on
the increased capital.
Christmas Bonus Authorized.
Christmas bonuses totaling $210,-
600 for employees Of American Stores
Co., other than officers and directors,
have been authorized by the direc-
tors, William Park, president, an
nounced. Bonus checks will go also
to employees in the armed services.
Hecht common, selling at 3414 on
the Washington Stock Exchange,
has scored another 1945 high mark,
and Garflnckel common, at 3712, has
made a similar record. Capital
Transit, around 1894, is holding firm
The Washington Claim Mems
Association will meet Wednesday
noon at the Ebbitt Hotel with Rep
resentative L. G. Sasscer as guest
speaker.