Evening star., 1961-04-23


remaining. SO per cent through
an exchange of stock. Stock
holders will vote on the pro-
posal at the annual meeting
here at 10 am. on May %.
Under the agreement, the
bank would cancel its present
holdings in Iowa Interests, in
cluding $4,000 shares and
$1,120,000 of debentureS.
Other Iowa Interests stock
holders would receive 647, ,225
Shares of original issue common
stock of the bank, with 16.5712I
shares of bank stock being
given for each share of Iowa
Interests stock and with 1886
shafeS of bank stock being
given for each $100 Of Iowa
Interests debentureS computed
to the nearest even share.
The exchanged Iowa Interests
securities then would be can
celed and the bank would receive
from Iowa Interests 100 per
cent of the stock of Hawkeye
Interests, 100 per cent of the
stock of United Interests and
$1.% million face amount of the
banks 5 per cent convertible
debentureS which would be
cancelled.
SimplificatiOn Sought
Hawkeye Interests, a wholly
owned subsidiary of Iowa In
terestS owns $4,000 shares of
the common stock of
HaWkeye Security Insurance
CO.. a fire and casualty COM
parg. United Interests, also a
wholly-owned subsidiary of
Iowa Interests, owns 10000
common shares of United Ser
vices Life Insurance Co.
The proposed merger would
effect a simplification of the
holdings of International
Bank and would give the bank
direct control of Hawkeye In
terests and United Interests,
the proxy statement for the
stockholders meeting said.
1t also would give the bank
direct control of SO per cent
of the stock of Hawkeye-Se-
curity, it said. The bank and
another subsidiary, Financial
General. would have more
than so per cent control of
Hawkeye Security. 1t also
would enable the bank to re-
tire $1.4 million of it's own
debentures, the stateme n t
pointed out.
0lmSted Big Holder
Maj. Gen. George Olnsted,
USAR retired, who is board
chairman and president of
International Bank, is the
largest individual stockholder
and a director of Iowa In
terestS. Under the merger
agreement he and his family
would receive 50S,534 of the
banks 647,225 shares ex-
changed for Iowa Interests
securities. including $4,000 of
the investment firms shares
and $880,000 of debentures.
The proxy statement was
released yesterday along with
the annual report of Inter-
national Bank showing further
gains in assets, but a de-
crease in earnings.
The banks 1860 earnings
were listed as $246,649 or 10
cents a share, compared with
S5,274 or 81 cents a share
in 1859. The net included S59,-
02S, from domestic operations,
$5L319 from foreign opera
tioRs and $130,30O which was
described as an increase in
undiStributed earnings in un-
consolidated subsidiaries.
The report listed estimated
values of its holdings in five
uneonsolidated affiliates al
$l6S275,934 on December 81,
compared with $13,631,834 a
year earlier, and said adjust
meats for the proposed merger
would lift this to $18,156,279.
Itss holdings in Equity Corp.
were listed as $942, $50, COM
pared with $S83,574 a year
earlier and $1,222,630 after the
merger.
The combined total was
$1L218,554 at the end of 1860
VS.. s$14,515,409 a year earlier
and $19,378,909 under the mer-
ger plan, the report said.
listed as the unconsolidated
affiliates were International
Trust Co., Iowa Interests
Corp, Caribbean Corp, Credit