Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-09
Two Banks Plan
$500 Million
Merger Here
Bunk Of Washington
And Liberty Boards
Approve PROPOSED
BY DONALD B. HADLEY

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A merger Of the National
Bank Of Washington and the
Liberty National Bank was APP
proved today by directors Of
both institutions.
Plans for the consolidation
OF nearly $500 million Of assets
were disclosed in a joint an
nouncement from President
Barnum l.. Cotton Of NBW and
President w. +. Vandoren of
Liberty National.
Subject TO approval by own
ers of two-thirds Of the stock
Of both institutions and the
Controller Of the Currency, the
plan Is to consolidate Liberty
into NBW under the latter's
name and charter around Mo-
vember rs. This would be ac-
complished by an exchange OF
stock and in accordance with
the National Banking Act.
On September 80. National
Bank Of Washington had assets
Of about $256.5 million and
Liberty National listed approx
imately sl2.2 million.
Has 10 Branches
The former with a large
main office at Fourteenth and
@ streets N. w.. has ten mod.
ern branch buildings in vart.
Gus sections Of the District.
Liberty has just completed
moderhization Of its main once
at Fifteenth and ! streets NV.
and added two floors at q cost
Of about t75O.O00.
With no branches itself, Lib
erty will become NBW's largest
branch and Mr.. Vand0ren is
to become an executive vice
president Of the combined in
stitution.
The merger proposal pro-
videS that NEW will issue an
additional 10000 shares Of its
$40 par value stock and ex-
change it for the present 10000
shares Of 500 par value Liberty
National stock at the rate Of
II NBW shares for each Liberty
National share.
The exchange Of stock viii
increase outstanding NBW
shares 70 72s.0OO from the
present $4,000 shares cur
rently outstanding.
After approval Of the tenta-
tive plan by the Controller Of
the Currency 1t Is planned to
call stockholders meetings at
each institution with allowance
for the required 80 days prior
notice.
1T is the belief Of officers.
directors and stockholders Of
these two banks that their con-
Solidation viii provide greater
lending power. more conven-
lent service in various parts of
the city and that it will be Of
great advantage to the banking
and business community in the
District of Columbia and else
where" the announcement
said. Safety and service have
always been the watchword Of
these two institutions"
Second Largest
The consolidation will add
another chapter to the growth
Of the National Bank of WASH
lngton. which was founded in
1909 and ranks as the Capitals
Oldest and second largest bank.
Its growth has been associ-
ated with John L. Lewis and
his United Mine Workers
Union since they acquired
substantial interest in the bank
in l949. However. Mr.. Lewis
has stayed well in the back
ground Of its affairs.
Assisted by the new interest
Mr.. Cotton became president of
NBW in l949 and under his
leadership assets scared from
S37 million on June 80 of that
year to more than Sll6.5 mil
lion on June 80. 1854. This was
just before another big event
in its history. the acquisition
OF Hamilton National Bank and
an additional Sis million of
assets.
Acquisition of Hamilton be-
came a reality only with the
See MERGER, Page A-6