Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-01-03

ASSETS.
| Banking house and lot ......, 500 900 OF
Other real estate owned. ............. ALBA 81
Loans on real estate .......... ...s.. 76S 40 4
Invested in stocks and bonds. ......... 32,S47 Il
Loans on stocks and bonds. .......... So 300 .:
Loans on personal security. ........... IS 929 2:
Money on hand. Observation-Disclosures. 12S 2l5 q
Deposits in other banks. ............. 1874, PSI G.
| Office furniture fixtures and safes. $3.50 OF
interest arrears. Observation-Disclosures. II ,419 l:
Other assets. Observation-Disclosures. 16,2S5 81
Total. ,7S4, 463 q
LIABILITIES.
Capital paid in coin Observation-Disclosures. $500 900 OC
Surplus ........ Observation-Disclosures. $40 66
Due depositors. Observation-Disclosures. 1,444, 674 90
Interest, rents, etc. ...-.....-...... S4,6S4 80
Taxes due. Observation-Disclosures. 1924 II
Total 81, 7s4, 463 %
Yesterday the Directors of the Bank held
a meeting and the following proceedings
were had, as appears upon the minutes of the
Board:
SACRAMENTO January 3 1880
special meeting of the Directors of the Capital
Savings Bank was called by the President for half
past O'Clock A. NJ. this day. to consider what shall
be the future course of this bank in view of the
port Of the Bank Commissioners made on the 3lst
of December, 1879, to the Attorney General Pres.
ent, R. S. Carey, L. Williams, C. T. Wheeler, c. w
Clarke, Frederick Cox and Albert Galatin. The
meeting was called TO order by the PRESIDENT.
On motion, the following resolution was adopted :
ResOtUed, That dividend of four "a per cent on
ordinary deposits and five and one-third (5D per
cent. on term deposits, per annum, be paid out of
the earnings of the bank for the last six months,
payable on and after the 10th instant
On motion, the following preamble and resolution
were unanimously adopted:
WHEREAS, 1t appears from the report OF the Bank
Commissioners, just published, that the Capital
Savings Bank is entirely solvent and upon realizing
on its assets VIII he able to pay its depositors and
stockholders in full, vet the business of the bank
for the last six months has not been sufficient to
enable it to pay dividend OF more than four az per
cent. on ordinary and five and one-thrd CD per
cent. on term deposits per annum, it follows, in the
opinion of this Board that it is not advisable to
further extend the business of the bank therefore
Resolved, That from and after this date further
deposits be received by the Capital Savings Bank
but that the business of the bank be wound up as
speedily as possible. consistent with safety, and to
this end that dividend of ten Q0) per cent out of
the money on hand be paid to all depositors on
savings account upon the amount of their deposits
to be paid at the same time and in ADDITION to the
nterestdividend heretofore declared, and that adj
dtional dividends OF ten O0) per cent. each be
paid to said depostors from time to time as fast as
realized out of the assets of the bank.
On notion the following resolution was passed ::
ResotUed, That, except as provided in the fore
going resolution, payments shall be made to de-
positors on savings accounts.
JAMES N. PORTER, Secretary.
1t would appear that the long and short of
the matter is this That yesterday was the
regular day for ascertaining and declaring the
semi-annual dividend and the result of effort
in that direction showed that while in July
the bank paid a dividend at the rate of
per cent. per annum, it could now pay but at
the rate of per cent. per annum. This be-
ing deemed insufficient earnings. and the
prospect for greater being slim, the Directory
concluded it could devote its labors to more
affairc thap hapl updar
such circumstances. 1t therefore resolved to
pay the dividend ascertained, and to declare
dividend to depositors of 10 per cent out of
the cash on hand. Subsequently a RECORD
UNION representative called at the bank
and met President Carey and Director Clarke,
and soon after other officers of the bank.
Mr.. Carey expressed his willingness to re-
spond to any inquiries, and the result was the
following conversation
Reporter-Mr. Carey, will you make a
concise statement of the condition of the
bank?
Mr.. Carey-It is solvent. The statement
of the Bank Commissioners shows all the
facts and figures.
Reporter-What has been the action had
to-day leading to the cessation of business?
Mr. Carey-Well, the whole thing is in a
nutshell. The Board has resolved, as the
minutes show, that the bank shall go into
liquidation, as it is Improbable to continue a
savings bank business under the new Consti-
tuition. Our Board found it could pay divi-
dend at a rate of but four per cent. per anuum.
10 announce that was to invite run, and
give those near by and soonest to get the news
an advantage in drawing out deposits, or else
resort to registration. We concluded that all
should be served alike.
Reporter-What will the bank pay?
Mr.. Carey-Dollar for dollar. Not a man
or woman will lose cent. There is no posi-
bility of any depositor losing farthing. We
have assets sufficient to pay all depositors, and
in my opinion to pay the stockholders too.
Reporter-What was the cause leading to
the action had by the Directors beside the
low rate of dividend reached, if any:
Mr. Carey-Why we didn't think a saw.
ings bank could be made to pay under the
new Constitution. In other words we got
tired of running bank to make dividends
for depositors alone and none for stock
holders.
Mr.. Clarke-Yes, for one, as Director,
am tired of working and worrying for moth
ing. It's well enough to labor for others, but
I can do better in other directions for men
than by running bank without profit.
Mr.. Carey-Exactly. Now, we didn't in
vantage, SO we pay the dividend on the 10th
. and return ten per cent. of the deposits then.
Reporter-What was your last dividend?
Mr.. Carey-Six per cent rate July last
Reporter-Why did you close business just
now?
MIR. Carey-It is the end of the half year,
the close of dividend period. We found
we could wind up and quit business and hurt
nobody, and resolved to do it.
Reporter-Then your assets are ample:
Mr.. Carey-Yes; to pay every cent.
Reporter-And your securities?
Mr.. Carey-Good; and we can rapidly
realize on them.
Mr.. Clarke-There could not be better
time to wind up. There is plenty of money
in the country our loans are all old ones, at
the higher rates, and men can get money for
less, and will therefore readily change and to
secure lesser rate. This will enable us to
call in rapidly all the money needed.
Reporter understand you, then, to mean
that you will realize on sufficient, added to
the cash on hand, to pay off the depositors,
and TO the remainder the stockholders will
look.
Mr.. Carey-That's what we mean. The
stockholders will see to it that every depositor
is paid up, dollar for dollar. and look to the
securities left for their own investments after
every depositor is paid.
Mr. Clarke-Yes and well do that soon,
for we can call in readily all we shall need. l
am glad we have resolved to wind up the
bank. l, for one, don't want to be Director
under the new Constitution. want no man
to lose dollar by me or any institution l am
connected with. think am well enough
known to be believed when | say believe we
did the best thing. I'd sooner lose nv head
than have solitary depositor lose dollar
Mr.. Carey-Under the new Constitution
you can make more with your money on the
outside than you can through savings bank.
because of the taxation burdens.
Reporters it true that your real estate
securities have deprecated because Of decline
in property values.