Evening star., 1954-05-12
Hamilton Bank
Stock Offer
.IsSnappedUp
Lorge Number of
Sales at $11O q
Share Reported
D.. MIL n
BY DonoId B. HodIey

Faced with an opportunity to
collect a profit of nearly $50 per
cent, many stockholders of the
Hamilton National Bank are re-
ported to have disposed of their
holdings yesterday at $110 a
share.
AS a result, it is unlikely that
the proposed merger of the
Hamilton and the American Sc
curity & Trust Co. will be ap-
proved by the necessary two
thirds majority on July IL.
While asking not to be quoted,
an official of Hamilton conceded
as much last night.
The large change in owner
ship of Hamilton shares, which
is reported to have placed them
in hands opposed to the merger,
resulted from on offer posted
Monday by Johnston, Lemon &
Co., Washington brokerage firm,
for an unidentified client.
National Bank Interests.
Interests allied with the Ma
tional Bank of Washington,
which proposed a merger with
Hamilton three months ago,
have been identified generally as
opponents of the merger with
American Security.
Only $4,000 Hamilton shares,
or barely more than one-third
Of the outstanding 100000
shares, will be required to block
the proposed consolidation with
American Security.
An associate of Johnston, Le-
mon & Co. said Hamilton stock
came in fast yesterday, as a re-
suit Of the offer, and that al
ready a substantial block had
been acquired. AS long ago as
last March, it was reported the
same firm picked up $4,000
shares. or Is per cent of the
Hamilton total, at $50 a share
for interests allied with the Ma
tional Bank of Washington.
The unidentified Hamilton Of
dcial said the offer of $110 a
share was so high that stock
holders were not likely to turn it
down. For trustees of certain
types of funds. that high an Of :.
fer left little choice but to sell.
Many Hamilton holders ac-
0uired their stock for $25 a share
after the bank holiday in 1888,
or received it in return for hold
ings in closed banks from which
the Hamilton was formed.
The offer of $110. q share will
not end with the acquisition of
"a 900 shares. In fact, members
Of the brokerage firm have at
tempted to disSociate their offer
from any ostensible attempt to
block the merger.
1--WE just posted the offer, and
we're not trying to break up any
merger" emphasized James M.
Johnston, partner in the firm.
He smiled.
The offer applies to all Hamil-
ton shares rendered until the
close of business on May 25.
Acquisition of a much larger
block might lead later to revival
of a proposed merger of Hamil-
ton with the National Bank of
Washington.
The financial district buzzed
today with the largest assort-
ment of rumorS in it's history, all
Of them completely unconf1rmed.
The chief rumor centered
around speculation that a coun-
ter offer above $110 a share
might come out shortly. Such
an offer has so far failed to
materialize.
Other rumors attempted to
associate well-known financial
figures with American Security
& Trust Co. in its merger plan
with Hamilton. The rumors
were a dime a dozen and every
one had fun.
The real controversy appar-
emily centered in two opposing
camps, one desiring to merge
the Hamilton with American Sc
curity, and the other proposing
to combine the Hamilton with
the National Bank of Washing
ton.
The NBW group pointed to
the fact that directors of that
bank made a formal offer to
directors Of Hamilton in a letter
dated March 8. This offer pro-
vided that Hamilton holders
would receive two shares of NBW
stock for each of their shares or
could get cash equivalent to $50
Q share for Hamilton stock.
Members of this group have
been critical Of Wilmer j. WAL
Ter, president of Hamilton, and
his board, for turning down the
National Bank of Washington
offer without informing stock
holders. At the time the offer
was considered and rejected, Mr..
Waller denied newspaper reports
Of the offer.