New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-17
SHERMAN BANKS PROPOSAL.
THE Projected UNION WITH THE MADI-
son SQUARE INSTITUTION.
TERMS on WHICH THE CONSOLIDATION MAY
TAKE PLACE-sECUMTIEs OF SUSPENDED

TERMS on WHICH THE CONSOLIDATION NAY
TAKE PLACE-sECURTIEs OF SUSPENDED
ESTABLISHMENT OFFERED FOR SALE
f. n Howell president of the Sherman Bank
Yesterday sent the following letter to the attorneys
for the stockholders of the suspended Madison
Square Bank The letter sets forth definitely the
terms on which the Sherman Bank VIII enter INTO
a consolidation with the Madison Square Bank the
general plan of which was exclusively announced IN
The Tribune a fortnight ago
Messrs Hoadey, Lauterbach johnson, No. wilIiamst
Dear Sis In a conversation with some OF the principal
stockholders OF the Madison Square Bank few evenings
ago II was stated that they would be glad to be
Informed whether Bank would be willing 20
enter into consolidation with the Madison Square BANK
and IL 80 OF terms Of such consolidation which would
be agreeable to the Sherman Bank Having consulted
some of our principal stockholders in pursuance Of this
suggestion and request feel that am Justheu III haAs
the following proposition.
The Sherman Bank will make an agreement OF con.
sodaton with Madison Square Bank upon the follow
Ing terms ard conditions:
First-Thc name and title OF the Consolidated Bank
shall be SHERMAN Bank"
SecondjThe amount OF the capital stock OF the Con-
sodated Bank shall be 000 OF which there shall be
delivered 100000 In exchange for the total authorized
capital stock OF the existing Sherman Bank amounting
800 OO0) and $780, coo in exchange for the total
authorized capital stock OF the Madison Square Bank
(amountlng to 100000.
Third-There sha offered the holders of the stock
Of the Madison Square the right take and pay
the remaining 500 900 stock OF the Consolidated Bank
each stockhoder 10 have the right TO subscribe
such proportion OF the 100000 Of stock of the Con-
soidatcd Bank the stock held by him In the Madison
Square shown by the books of the bank at Least
fifteen days before entering into agreement bear TO
the whole amount of the authorized capital stock of the
Madison Square Bank such oner, however to be made
the condition that the 100000 OF stock taken
shall be deposited with the trustees TO be named by the
of
to be approved by counsel for tie Shcrman Bank
giving such trustees full voting power thereon, for the
term Of not less than three years from the date OF the
Of consolidation.
beg to add that / assured by gentlemen whom
believe to be responsible that the consolidation is made
they and their associates will be glad TO take and
the whole any part of this remaining 100000 Of
stock, which not be taken by the stockholders Of
the Madison Square Bank.
Fourth-Before any agreement. shall be presented TO
the stockholders of existing Sherman Bank 1t shall
be shown TO the satisfaction Of the Board of Directors
Of the existing Sherman Bank:
a. That the Indebtedness OF several individuals the
Madison Square Bank, asgrcg9ting $4,000. has been
paid in full.
e. That the assets Of tie Madison Square Bank
by good management be made 10 realize an amount sun
cent to pay debts and liabilities the hank and
a surplus OF ot least 800 600.
90 That the consent to the proposed agreement oil
consolidatOn required by law has been OF can be
from stockholders Of the Madison Square Bank
a. the Superintendent OF Banks OF the state Of
New.York will certify that the value Of the property OF
the Madison Square Bank, and above il debts ana
liabilities is OF the time Of consolidation al lo',;
100000.
the foregoing proposition satisfactory 20 the rln-
cipal stockholders Of the Madison Square Bank shall
be glad to confer with you further the subject oi
course, IS merely informal proposition. and Is
made upon distinct understanding that no hna OF
conclusive arrangements be made without both
written consent stockholders and the approval oil
our counsel, Bsnes. Steson Tracy Mc\ c'-h'
have sent simlllr letter TO MessIs. "uegenheli"ci
rntermever counsel for the receivers oil the M'u's"
Square Bank. Very truly yours.
L. y. HOWELL, President
Miles NJ O'Brien and James G. Cannon, as receivers
of the Madison Square Bank, haye authorized
Adrian H. Muller & Son. OF No. Pne-st TO sell
at auction to-day the securities Of the bank Tor the
purpose of turning them into cash assets FOR the
depositors
The bond offerings. which represent face value
of $4,000 are as follows: $500 first mortgage bonds
New-York Concert Company Casino; 5000 second
mortgage income bonds Union Elevated Railroad
s423 O0 Second ortgae income bonds, Prescott ana
Arizona Central Railroad and 5000 first mortgage
sinking fund bonds OF the railroad.
There will also be put up an assortment OF STOCKS
their real val lie being an uncertainty. \ lew are
herr given: 225 shares Brooklyn Elevated Railroad
Company 200 shares Utica Electric Light Company
jG7 shares East River Bridge Company, 81 shares
Madison Square Bank, and 1900 shares laciede Gas
Company