Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-09-13
Luchs Group
Buys Control
Of kunsey
BY DONALD b. HADLEY
Star Financial Editor

Guar FAuaheaeA kuitoi
A Washington investment
group headed by Frank j.
Luchs last night acquired more
than so per cent Of the stock
of Munsey Trust Co. for $357.50
q share and offered to buy the
remainder of the shares at the
same price.
The controlling interest Of
more than so per cent Of a
total of 10000 shares was pur-
chased from the Dewart family
of New York for an indicated
price Of more than $3.6 million.
At the price offered to other
holders of Munsey stock, all
shares would cost the group a
total Of $7.150,000.
Mr.. Luchs said that Warren
r. Forster, president of Munsey
Trust Co., will continue to
head that institution" under
the new majority ownership.
Corporation Formed
The purchasing group has
formed a corporation, Luchs
Investment Co., Inc, for the
transaction. Arrangements are
being made with the National
Savings and Trust Co. to act
as a depository to receive adj
ditional shares rendered by
other stockholders.
Mr.. Luchs added that letters
offering the price of $357.50 a
share to other stockholders
would be mailed Immediately
The offer will be open until
September 20, he said.
Mr.. Luchs declined to discuss
reports that the Washington
group has plans to sell banking
facilities of Munsey Trust Co.
to Financial General Corp,
which would in turn merge it
with Union Trust Co. Of Wash
ington. Financial General
already has a large interest in
Union Trust.
Keep Realty
Financial circles reported the
group would keep large real
estate holdings Of Munsey, in
Guiding the Munsey Trust Build
ling, 1929 E street NV; the
National Theater Building, 1921
E street NV; the Presidential
Apartments, Sixteenth and 1
streets NV, and other valu-
able properties. MunSey also
has property management and
insurance affiliates, which could
be separated from the banking
business.
Mr.. Luchs is executive vice
president of Shannon & Luchs
ICo., prominent Washington real
ESTATE firm. He has been active
lin many Washington real estate
land financial transactions as
well as many civic activities
He was general campaign
chairman for the 1850 Commu-
nifty Chest Drive.
The Dewart family interests
were represented in the stock
transaction in New York yes
Iterday by Thomas w. Dewart
Surviving son of the late Will
liam T. Dewart, former pub
fisher of the New York Sun.
Munsey's Manager
The elder Dewart was gen.
eral manager for Frank Mum
sey, and after Mr.. Munsey's
death acquired control of the
New York Sun, the Munsey
Trust Co. and other properties.
Whether the Luchs group will
carry out its reported plans to
separate the banking bSineSS OF
Munsey Trust from its nom
banking properties, remains to
be seen. Many details would
have to be worked out, including
approval by directors and stock
holders of the trust company
as well as approval of the Con-
troller of the Currency. who has
jurisdiction over District banks.
A merger of Munsey into
Union Trust would increase I'M
ion Trusts assets to more than
500 million and strengthen It's
ranking as Washington's fourth
largest bank.
Munsey Trust had assets of
$3.50 million on June %, ale
though this total would be re-
duced somewhat by separation
of non-banking assets.
Also listed on the June state
ment were $29,763,632 of de-
posts and $1,150.000 represent
ing banking house and other
properties including stock Of
MunSey Realty Co.
Union Trust Co. had assets
of $85, 900,992 and deposits of
$77,107,013 on June %.