Evening star., 1960-09-15


Of an 8.33 plus per cent st,
through issuance Of 30,975s shi
$25 per share.
This would be one share a
outstanding stock. The new
capital structure would be
402,675 shares Of stock at a
par value of $25 each.
In a letter to shareholders
Today, Chairman of the Board
Robert v. Fleming and Pres
ident Richard A, Norris said
the directors have adopted res
olutions recommending ap-
proval by shareholders. A
special meeting of shareholders
will be held October II to vote
on an amendment to the
articles of association of the
oank. providing for the stock
dividend through issuance Of
The additional shares of stock.
If the shareholders adopt
the boards recommendation,
paid October 20 to sharehold-
ers of record october II.
To Raise Lending Limit
Mr.. Fleming also announced
that in addition to this in
crease of $774,375 to the capital
stock of the bank, it is planned
to transfer 1925. .625 from undi-
vided profits to surplus. He
said this will give the bank
total capital and surplus OF $27
million, whereupon the legal
lending limit Of the bank will
De increased to $2.7 million to
anyone customer. This will
permit the bank to serve more
amply the financial needs of
.ts clients and the community.
he chairman said.
The letter pointed out that
no certificates for fractional
shares will be issued. Share
holders were advised in the
.etter:
IF the number of your
shares cat the close of business
October I'D is not divisible by
l2, you will receive a Trustees
Certificate of Participation
evidencing your fractional in
terest in a share of the banks
capital stock, in addition to a.
certificate for such whole share
or shares to which you may be
untitled.
"The Trustees Certificates of
Participation will expire at q
pm. December 2, 1860. Prior
10 the expiration of the TruS-
tees Certificates of Participa-
lion the owner may sell them
or otherwise dispose of them,
Or may round out whole shares
~ purchase or otherwise"
The letter said that at the
regular meeting of the board
If directors. to be held on No
vember 8, it is expected that
t will declare a. special cash
dividend to be payable De-
sember Is to shareholders OF
record December 9. It said the
declaration of the stock divi-
lend requires approval of the
holders of two-thirds Of the
outstanding shares. The cash
dividend would be payable on
The new capitalization of 402,-
,75 shares.
It said that for many years
It has been the policy of the
Board to pay reasonable cash
dividends and at the same time.
the banks capital
structure through retained
earnings.
Bany in Strong Condition
Mr.. Fleming said the board
Of directors at their regular
meeting Tuesday recommended
the stock dividend program "in
view of the strong condition of
the bank and its excellent
earning position" He said the
Controller of the Currency'SI
office has approved this in
crease in capital, subject to-
shareholders approval.
Mr.. Fleming recalled previous
stock dividends were paid in
1946, 1854, 1857 and 1853.
The letter said the bank has
been advised by counsel that
under present Federal income
tax law, the proposed stock
dividend will not be taxable as
income to the recipients. The
letter said officers at the main
office, 1903 Pennsylvania ave-
nue., NV, and those at any
branch Office, will be glad to
render every possible assistance
in handling the Trustees Certi-
ficates of Participation that will
De received by shareholders.
Mr.. Fleming also pointed out
that stock of The Riggs Ma
tional Bank has grown appreci-
ably in market value since 1912.
He said return in cash divi-
dendS of II per cent in the last