Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-18
Riggs Bidding
For Washington
Loan Merger
Bonk S Proposal
Believed Based on
Exchange Of Stock
By William A. MiIien

The Riggs National Bank,
largest financial institution in
the District. is entering the con-
test to acquire the Washington
Loan & Trust Co., it was learned
today.
Details of the offer are UNI
available, but it is understood
it would be on an exchange of
stock basis. This development
followed meeting of the Riggs
executive committee yesterday
and meeting of the w. L. &
T. board last night.
Boards of both banks are
understood to have scheduled
special meetings for 2 pm. next
Tuesday.
The Riggs move follows by two
days disclosure of an offer by
Equity Corporation of New York.
which ownes the controlling in
terest in the Union Trust Co.
here, to purchase the Washing
ton Loan stock at $3.50 a share.
Below Book Value.
This is slightly less than the
book value computed by WL&T
officials, but considerably above
the market price in recent sales.
This offer is made through the
brokerage firm of Goodwin &
Odds, Washington, and expires
September 8. If successful, Equity
plans ultimate merger of Union
and Washington Loan but con-
gressional legislation would be
needed. No statutes now permit
trust companies to merge here.
Washington Loan directors
have mailed a letter to stock
holders. advising them of the
Riggs interest in merger and
suggesting delay in any disposing
of their holdings until the situa-
ton clarifies.
A combination of Riggs and
WL&T would create an institu-
ton with assets of over $400
million and place it we'll in front
of the combined assets of the
National Bank of Washington
and the Hamilton National Bank.
whose merger is due to be coln-
pleted September IA. If ratified
by the stockholders and APP
proved by the Controller of the
Currency.
The merged National Bank
assets would total 1921 $40, 024.
based on reports Of June 80 that
Hamilton had total assets Of
114,684,558 and the National
Bank of Washington $116,655,-
465. ..
Merger Factors.
Banking circles suggested that
factors apparently favoring the
Riggs proposal would include:
/. Capital gains levies pre-
sumably would apply more
heavily to a cash purchase than
to a stock for stock transfer.
2. Legislation would not be
required for the merger, since
authority for it would exist un-
der national bank statutes gov
erning Riggs operations.
3. Sentiment over the fact
that Riggs is a local operation.
whereas Equity, although it is
known locally and is represented
by several Washington area
financiers, is still an outside
holding company.
While no details of the Riggs
plans in the event of merger
have been clarified, it is believed
that it would continue to operate
the Washington Loan g. Trust
Co. main office, at Ninth and F
streets NV. and the West End
branch at Seventeenth and G
streets NV. as its own branch
Offices. Neither WILT opera
ton is competitive with an ex-
listing Riggs branch.
Riggs Has Branches.
Riggs main Office is at 1903
Pennsylvania avenue NV. Its
seven branches are: Chevy
Chase branch, Connecticut ave-
nue. and Morrison street NV;
Dupont Circle, 1918 Massachu-
sets avenue NV; Farmers &
Mechanics, Wisconsin avenue
and M street NV; Friendship,
(See RIGGS, Page A-9.)