The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-04
DISSATISFIED STOCkHOLDER.
Suit Against the First National, Growing Out
of the Reduction of Its Capital Stock.

Yesterday suit was begun in the Superior
Court by Roswell S. Hill against the First
National Bank, William H. English, Edward F.
Claypool, John c. McCutcheon, w. G. DePauw,
John Reynolds and Alexander B. Conduit.
Plaintiff Hill states that on the 26th day of July,
and for a long time previous, he owned 100
shares of the First National Banks capital stock,
and for these shares the bank, on the LIST of
September, 1883, issued to him two certif-
Gates, Nos. % and 81, each for fifty
shares of stock. On the 18th of
January, 1885, he charges that the bank under
took to reduce it's stock from $500, 600 to $500,
900, and to retain three eighths of the paid in
capital stock. A resolution was presented to the
stockholders to this effect, but plaintiff, that he
might act advisedly, says he demanded of VIM.
Fl. English, president, Edward F. Claypool. vice
president, and j. c.. McCutcheon, cashier, a
showing of the condition of said bank,
by which it was claimed a necessity for re-
ducing the capital stock arose, which was refused.
The officers Of the bank told him that unless ne
agreed to the reduction his proportion Of said
stock would still be retired, and taken from
him; and further, that his situation and standing
as stockholder in said bank would become I'M
pleasant, and his relations with the officers and
directors of the bank would be unfavorable,
unfriendly and hostile.
The officers demanded of plaintiff that he
should surrender his certificates, and receive in
lieu a new certificate for fve-eighths of his said
stock. or 624 shares of 500 each. AT the same
SINE, he says. they notified him that they would
not pay to him the amount of S., $50 due to him
by reason of said reduction and retirement. In
July, 1885, he rendered to said officers of the
bank his two certificates, and demanded that
they should re issue said stock to one Nathaniel
W. Hill. for one hundred shares, or Issue to said
Hill 625 shares and pay to plaintiff in cash So. $50.
They refused and represented that the So. $50 was
necessary to be used and had been used in the
payment of debts and for other purposes. He
charges that all this was done with the knowl-
edge and consent of the directors. He says they
converted these one hundred shares to their own
use, ard asks damages therefor in the sum of $l5-
600. If the court holds that he is entitled to
only s.. $50. being three eighths of his stock re-
tired. he demands judgment for that sum-. He
further asks that they deliver to Nathaniel w.
Hill the 625 shares not retired.
The officers of the bank state that the reduc-
ton in the capital stock was made under the in
struction and by direction of the Comptroller of
the Currency; that the step was considered emf
nentiv wise and proper by the best financiers ia
the country; that nearly all the stockholders
promptly acquieSced in the plan. and that Of all
the resident stockholders, MI. Hill was the only
one to refuse. A part of the complaint is that
the bank charged off its losses. Said a gentle
man last evening: "A great cutlery was recent
ly made in this community against a bank be-
cause 1t did not promptly charge off its losses,
but continued to carry its assets as unimpaired
after its losses occurred. Now, is fault to be
found in anothercase because a bank did prompt
ly charge off its losses!"