Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-25
Directors Vote
ToConso|idate
7 D. {. Banks
Riggs-Woshington
Loan Merger Now
Up to Stockholders
By DonoId B. ,HadIey

Up to Stockholders
By DonoId B. HodIey
Directors Of the Riggs National
Bank and the Washington Loan
g. Trust Co. late yesterday ap-
proved a proposal to merge the
two institutions with assets ex-
ceeding $426 million.
Under the terms, which must
be approved at special stock
holders meetings to be called
within a few days, holders Of
Washington Loan & Trust Co
stock would receive a share OF
Riggs National for each eight OF
their shares.
In addition, they would receive
$3.50 a share for each of the
100000 outstanding shares oil
Washington Loan & Trust Co.. q
total of $780, 900 in cash. Holders
of two-thirds Of the stock of both
institutions must approve the
proposal.
Reserves Riggs Name.
In a joint announcement
President Robert v. Fleming OF
the Riggs and President Alfred
H. Lawson of w. L. & T. said the
institutions would be CONSOLE
dated under the name and char
ter of the Riggs National. follow
ing ratification by stockholders
and final clearance from the
Controller Of the Currency. Pre-
nminary approval already has
been given by the controller.
The special meetings probably
will be scheduled for october.
Upon completion of the mer-
ger, the. Riggs National would
have capital, surplus. undivided
profits and reserves of not less
than 500 million, as provided for
in the consolidation agreement.
It also would have around $500
million Of deposits.
Riggs would issue 1880 new
shares. each having a par value
of 500, making the capital of
the consolidated institutions ST.
100000. divided into 72.500
shares. each having a par value
of 500.
Terms Of the merger indicate
that Washington Loan g. Trust
holders would receive one Riggs
share. valued at $3.50, and $50
cash for each eight Of their
w. L. & r. shares
SIS Annual Dividend.
Presenting that Riggs will
maintain its present dividend
rate. the w. L. & T. holders will
receive SIS annually from each
Riggs share, in place of 1890
for each eight of their present
shares. a gain of 1920 a year.
w. L. & T. now pays $1.60 a
share annually.
The first reaction from the fl.
nancial district was that the
terms are attractive enough tt
swing the merger in the face Of
a recent offer of $3.50 a share
for Washington Loan g. Trust
Co. stock. This offer was mad,
by Equity Corp. Of New Yorl
through Goodwin & Olds, Wash
ington brokerage firm, two week.
ago.
Equity let it be known that II
planned to merge Washington
Loan & Trust Co. into Unior
Trust Co.. which it already con
trolls, If holders of at least 40,50(
shares of w. L. & r. accepted
its offer by 2 pm. September 8.
At that time it was reported
that Equity had acquired 9,50l
shares of w. L. & T. from james
ODonnell, formerly of Washing
ton and now Of Newport, r. I.
and that the additional 40,50(
shares sought in the offer woult
assure control by Equity.
Retains Officers.
Under the latest merger terms
all officers and employees of botf
the Riggs National and TIT
Washington Loan will becoml
officers of the merged institu.
ton. Operations will be con.
Quoted through 10 Offices. Rigg'
has seven branches in addition
to its main Office. while Wash.
ington Loan has one branch.
The two presidents said tn.
proposal was drafted after care.
full study and consideration
They said it would provide adj
ditional facilities for serving the
public and in their opinion
would be in the best interest Of
the shareholders. depositors anc
employees.
seth Bank in Size.
After the merger, Riggs Ma.
tional will rank around 50th II
size among the Nations $1,000
banks. At midyear it ranked
Gath. It will continue to be TIT
largest bank in both Washington
and the Fifth Federal ReServ,
District, which includes the Dis
trict. Maryland, Virginia, NORTH
and South Carolina and a por
ton of West Virginia.
Riggs traces its origin back Il
1886 and is the successor Of thu
private banking firm Of Corcoral
and Riggs and Riggs & Com
pany. It became the Riggs Ma
tional In 1896.
Washington Loan & Trust wa
organized in 1889 and becam
the first trust company in tn
District Of Columbia.