Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-25
Directors Vote
ToConsoIidate
3D. {. Banks
Riees-Woshineton
Loan Merger Now
Up to Stockholders

GUUH NtSISST INoW
Up to Stockholders
By Donald B. HodIey
Directors Of the Riggs National
Bank and the Washington Loan
& Trust Co. late yesterday ap-
proved a proposal to merge the
two institutions with assets ex-
ceeding 1926 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 OF
Washington Loan g. Trust Co..
total of $450.000 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
II. 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-
1iminary 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 $26 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.
$50, 900. divided into 72.500
shares, each having a par value
of 500.
Terms of the merger indicate
that Washington Loan & Trust
holders would receive one Riggs
share, valued at $3.50, and $50
cash for each eight of their
w. L. & T. shares
SIS Annual Dividend.
Presenting that Riggs will
maintain its present dividend
rate, the w. L. 81 T. holders will
receive SIS annually from each
Riggs share, in place of $3.50
for each eight Of their present
shares. a gain Of $500 a year.
w. L. & T. now pays $1.60 q
share annually.
The first reaction from the Il
Y1ancial district was that the
terms are attractive enough to
swing the merger in the face Of
a recent offer of $3.50 a share
for Washington Loan & Trust
Co. stock. This offer was made
by Equity Corp. of New York
through Goodwin & Odds, Wash
ington brokerage firm. two weeks
ago.
Equity let it be known that it
planned to merge Washington
Loan g. Trust Co. into Union
Trust Co., which it already con-
trolls, if holders. of at least 10000
shares of w. L. & T. accepted
its offer by 2 pm. September 8.
At that time it was reported
that Equity had acquired $500
shares Of w. L. g. T. from James
ODonnell. formerly of Washing
ton and now Of Newport. r. l..
and that the additional 10000
shares sought in the offer would
assure control by Equity.
Retains Officers.
Under the latest merger terms,
all officers and employees of both
the Riggs National and the
Washington Loan will continue
with the merged institution.
Operations will be conducted
through 10 Offices. Riggs has
seven branches in addition to
its main Office, while Wash
ington Loan has one branch.
The two presidents said the
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 and
employees.
5Oth Bank i'm Size.
After the merger. Riggs Ma
tional will rank around 50th in
size among the Nations $4,000
banks. At midyear it ranked
64th. It will continue to be the
largest bank in both Washington
! and the Fifth Federal Reserve
District, which includes the Dis
trict. Maryland. Virginia. North
and South Carolina and a por-
ton of West Virginia.
Riggs traces its origin back to
1896 and is the successor Of the
private banking firm Of Corcoran
and Riggs and Riggs 81 Com
pany. It became the Riggs Ma
tional in 1896.
Washington Loan b Trust was
organized in 1889 and became
the first trust company In the
District If C0l1mhia.