The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-01-30
BANKING, LOAN & TRUST co.
Details of What was Done at the New
York Meeting Of the Bondhoiders
and Directors OF the Big Stone
Gap Improvement Co.
A ENDiD ENTERPRISE
Editor ofMe Big Stone Post:

holders of the Big Stone Gap Improve
ment Company held in New York, at the
Everett House, on January 2lst. The
meeting was largely attended, over SO
per cent of the bonds being represented.
The following gentlemen were present:
W. P. Clyde, William McGcorge, Jr., R. B.
Whitridgc, James W. Fox, Everett Fox,
H. c. Mcdowell, H. c. Wood, Josiah
Ryland, F. D. Huidekopcr, r. c. Ballard
Thurston, Charles I. Ballard, John E.
Green, ST. John Boyle, r. A. Ayers, II. G.
Mcdowell, Jr., and j. F. Bullitt, Jr., The
purpose of the meeting was to consider
the plan proposed by Gen. Ayers to organ
ize Banking, Loan and Trust Company
at this place At first the plan was OPP
posed by several, but with discussion and
explanation it grew in favor with all pres
ent; and when a test vote was taken there
was only one voice opposed to it, and this
gentleman said that while he was person
ally opposed, he would agree to do what
the majority thought best. The plan is
briefly rs follows:
4 corporation is to be formed under the
laws of Virginia, with its chief Office Mt
the town of Big Stone Gap, with power to
do general banking business, and also
the business of general loan an trust
company. This will include the right to
purchase bonds or stocks of, and to help in
any other manner deemed advisable, new
enterprises desiring to locate at the
town, and indeed this is to be one of the
chief features of the institution. The
company is to be managed upon conserv-
alive principles however, and no money is
to he loaned, and no stock and bonds
taken in any enterprise, unless, the quid
pro quo is received therefor In order to
secure this end, first class business man,
who has had large experience, and who is
capable of managing an ordinary trust
company in any of our large cities, is to
be secured for thc presidency of the cor
poration. The bonds of all those who
agree to the plan are to be turned over to
the banking and trust company, and they
are to receive in lieu thereof stock equal
in amount to the face value Of the bonds,
with accrued interest. The money real
lied upon lot sales, namely, threefourths
of the total amount of all sales, which
under the present arrangement is paid
over to Mr.. Thruston, the trustee, and by
him is distributed in dividends to the
bondholders, will, instead Of being paid
out to the bondholders, be paid by MIR.
Thruston to the Banking and Trust Com
panv The deed of trust to Mr. ThrustOn,
by which the bonds are secured will not
he changed. Indeed it could not be with
out the unanimous consent of all the
bondhOld0rs, and this could not possibly
be obatincd. Mr.. Thruston, however, will
change his deposit from Louisville to the
Banking and Trust Company, so shat all
money received by him will be at once
given into the control Of the said compa
ny, will remain at the Gap" and will do
our town the same good as if the deed of
trust were wiped out. That is MIR. Thrus-
ton will, as money is collected by him
from time to time, deposit the money with
the trust company, and so soon as the
amount reaches $50 900 he will, under the
deed of trust, make distribution Of the
funds, and the bank being the holder of
50 per cent or more Of the bonds, will be
entitled to so per cent or more of the
funds distributed.
An informal vote was taken upon the
ACCESSIBILITY of this plan, and, as before
stated, there was only one dissenting voice,
and the bonds represented by those who
assented amounted to about 81 per cent
of the total issue. Afterwards a written
agreement was prepared and signed by
all present, with the exception of one or
two busy men who had departed before
the agreement could be drafted; but Gen.
Ayers has doubtless, ere this, secured
their signatures also. The agreement
outlines generally the above plan; and
provides for nine directors, seven of whom
are named in the agreement, and are as
follows: John H. Inman, of New York,
John E. Green and R. G. Ballard Thrus-
ton, of Louisville, Ky, r. A. Ayers, of
Gate City, Va, j K. Taggart, of Big Stone
Gap, Va, H. G. Wood, of Gate City, Va,
William McGeorge, Jr., of Philadelphia.
These seven gentleman are given full
power to elect two more directors, one Of
whom is to be the President of the COM
pany, and arc also given the power to pre-
pare charter, and have the company in
corporatcd. They propose to proceed at
once with the work, and the company will
doubtless be in operation within 80 days
from this date.
1t is believed that IS or 90 per cent OF
the bondholders will agree to the arrange
ment. A brief consideration Of the assets
which the company will have will convince
anv one that it will be one of the strong
est banking institutions in the State. Ten
per cent has been paid on the principal
of the bonds, and there arc therefore out
standing about 100000 worth of them,
which with accumulated interest will make
1896, 900. If the bank secures 80 per cent
of the bonds it will have a capital of $500,
600 and over These bonds bear 4 per
cent interest, which would make $33, 600
annually. There are now in the hands OF
the trustee nearly $780, 900 worth of notes
for different payments ON lots sold. These
notes will become assets of the bank.
The notes bear six per cent interest, which
in round numbers would make 900, or
the total receipts of the bank from these
two sources would be $4,000 annually
This is exactly.7 per cent of its total cap
tai of $S0O,O00 Ofcourse as the notes are
paid off the proceeds will so to reduce the
face value ofthc bonds. But money loans
in this section at the rate Of from to II per