Evening star., 1960-10-13
MERGER
Accord Now Awaits
StockhoIder Action


Continued From First Page
formal approval by directors
and stockholders of both in
stitutions and the controller.
Special stockholders meetings
for this purpose will be called
and a two-thirds majority of
the stock of each bank will be
required for approval.
Under the agreement, the
National Bank of Washington
would issue IL shares of its
stock of $40 par value for each
share of $100 par value Ana
costa National stock.
Cash to Be Provided
Johnston, Lemon g. Co..
Washington investment house,
which has handled negotiations
/ for the merger will underwrite
Anacostia National shares when
consolidation has been effected
on the basis of $50 for each
NBW share, which would pro-
vide a cash selling price Of $500
a share for Anacostia National
stock. the statement said.
Anacostia holders who do not
sell their shares. but accept
NBW shares in the consolida-
tion. would have no tax to pay,
according to a ruling by the
Internal Revenue Bureau, the
statement added.
The agreement also provides
that two places would be
created on the NBW board of
directors to represent the Ana
costa interests. Other men,
bers of the AnacOstia board
would be named tn a new ad-
visorv board for Anacostia
branches OF the NBW.
All officers md c'nn1ovcS Of
Arocoe'ia No +ionp' will he re-
tainnd Nv the consolidated bank
The consolidated bank will
have combined assets can!tal
stock of $4,000 shares on con-
sumaticn Of the merger. NBW
now. has 725.000 shares and
Ar" costa National 5000 shares.
TTpon approval cf thA plan
b" the controller Of the cur
rcucy a stockholders meeting
IF each of the institutions will
be called after 30 days prior
notice in the newspapers.
1t is the belief of the officers,
directors and stockholders of
these two banks that their con-
solidstion will provide greater
lending power. more conven-
ience service in various parts
of the city and that It will be
of great advantage to the
banking and business COM
munity in the District OF Co
lumbia and elsewhere, the
statement said.
Other Offers Received
( Directors of the AnacoStia
bank have been approached
with offers from every leading
Washington bank in recent
years and it is understood that
the NBW offer was not the
only one considered at last
nights meeting.
One of the most recent offers
was Sid to be from the Ohm
sted banking group headed by
Financial General Corp, but
earlier ones from Riggs Ma
tional and American Security
& Trust Co. also were reported.
Rumors of merger offers
plagued the Anacostia institu-
tion late in 1858 and in Deem
Der of that year directors an
nounced a firm policy of avoid
ing merger to continue as an
independent institution.
This policy was reiterated on
later occasions. but rumors of
new offers persisted. AS the
AnacoStia bank is the only Dis
trict banking institution south
of the Anacostia River, its seven
Offices and around $50 million
of assets were considered valu-
able in competition for size
among the larger banks.
Anacostia National celebrated
its 50th anniversary last May
7 by laying the cornerstone
and dedicating an attractive
new office at 4201 Wheeler
road Sc. 1t has other Offices
at 1850 South Capitol s. E.,
1000 Nichols avenue Sc. and
2844 Alabama. avenue Sc:
also facilities at the Naval Re-
search Laboratory, Naval Re-
ceiving Station and the Boiling
Air Force Base.
1t has had steady growth in
| the last decade. Deposits
reached a new peak of $27,-
812,663 on October 8, compared
with $27,169,S67 a year earlier.
$22,952,641 five years earlier
and around $12 million 10 years
|, earlier. ..
UNIV Has Major Interest
The merger would give Ma
tional Bank of Washington