Evening star., 1962-08-26


Mr.. HoSpelhorn said the c
main office in Riverdale, is a
rapidly growing and aggressive
institution and would provide
more competition than now is
provided by a Suburban Trust
branch and the Citizens Bank
Of Takoma Park.
The deputy commissioner
said that when his office ap-
proved merger Of the Suburban
Trust Co. and the Takoma bank
it also had agreed to approve
the Citizens Bank Of Maryland
branch conditional on final
clearance of the Suburban
Trust merger by Federal au-
thorities.
Reconsideration Asked
The Maryland official ap-
peared at a special Friday
hearing Of the FDIC on an
appeal from the banks involved
in the proposed merger for
reconsideration Of the case.
The FDIC previously had indi-
Gated the application would be
rejected.
1T is quite obvious that
competition afforded by the
proposed branch of the Citizens
Bank Of Riverdale would be
vastly different and more Wig
orous than existing competi-
ton Of the two banking outlets
presently operating in Takoma
Park" said Mr.. Hospelhorn.
The Riverdale bank has
grown to around $72 million
with ten branches now in op-
Grafton and nine additional
branches approved but not yet
formally opened for business.
This figure includes the Ia
koma Park outlet" he said.
Mr.. Hospelhorn pointed out
that plans for the marger were
filed with the FDIC back in
March and that since then
two large Baltimore banks
have been permitted by Fed
eral authorities to expand into
Montg gomery and Prince
Georges counties by merger
with Rockville banks.
Expanding Rapidly
The Maryland National
Bank acquired two Montgom-
cry County branches by merger
Of the Montgomery County
National Bank Of Rockville and
since then has applied for
four branches at Defense high
way and Riverdale road, In the
White Oak Shopping Center,
in Silver Spring and in Be-
thesda, he added.
The First National Bank Of
Baltimore acquired five offices
in Montgomery County through
merger Of the Farmers Bank
ing and Trust Co. Of Rockville.
Mr.. HoSpelhorn also dis
cussed the possible effects Of
the proposed merger on con-
centration Of banking re-
sources.
When you consider the ques-
ton Of monopolistic tendencies
1t would seem to me that you
can not eliminate the total
avails Of the resources and de-
posits Of all the banking IA
cilities in Montgomery County
and Prince Georges County, as
well as the District of Columbia
proper, as all Of these banks,
to my knowledge, are diligently
soliciting the public for its
patronage regardless Of where
the main office may be domi-
ciled." he said.
IF you include the deposits
Of all Of these institutions,
which we believe should be
properly included, the resulting
institution by way Of this
merger will have less than 8
per cent Of the total deposits
of all Of the banking institu-
tons In the two counties and
the District Of Columbia.
Other Briefs Presented
j. Robert Sherwood, presi-
dent Of Suburban Trust Co.
and Robert Lohr, board chair
man Of the Takoma Park Bank,
presented briefs urging ap-
proval of the merger.
Mr.. Sherwood said the COM
peting Citizens Bank of Mary
land already had picked a
branch site at 6919 Laurel ave-
nue. in Takoma Park, Md, but
a new branch building soon
would replace this temporary
location, he understood.
Philmore Geoghegan. vicA
president of Maryland National
Bank, presented a resolution
from the executive committee of
his institution objecting to the
proposed merger on the
grounds that it would lessen
banking competition in Ia
koma Park and Langley Park.
Maryland National has no Of
fire in either saction at nresent