New-York tribune., 1895-08-04
TO REDCCE ITS CAPITAL STOCK
REASONS FOR THE ACTION OF THE DIRECTORS
OF THE BANK OF AMERICA


OF THE BANK OF AMERICA
1t announced yesterday that the Bank OF
America. State institution. Nos "A and 10
Wall-st.. intends to reduce its capital stock from
$Soo,Oo0 to sl.50o0co. No legal action be taken
upon this intention until there is special meeting
of the shareholders October T. But the largest
stockholders have decided to make the move there
is no doubt of its final consummation. President
w. A. Perkins of the bank has sent the following
letter to the shareholders Of the bank giving the
reasons for the proposed reduction:
Dear sir: We inclose herewith notice of special
meeting OF the stockholders Of the Bank Of Amer
p m, at the banking house. a and iS Wall,st to
o h Ssn TO m peSs ne & Gspa
TO he accomplished by surrender BY holders OF half
The officers and directors of the bank (who are
themselves large holders OF the stock) are mnani-
lively upon the proposition. believing that great
advantages will certainly be derived from such
The bank is receiving very low rates OF Interest.
veary pagg of which IN sbSu sS da S
when the reduction In capital is carried into effect
the pro,abls empIoymen Of it's deposits Of the
earnings realized during the last eighteen months
has been received a return from the capital
proper rope nrono.., r,u.,,o, ~ o.r,,., tho .urru.
continued unchanged. will leave remaining capital
Conduct of the Business m and viii occasion no very
considerable reduction in net earnings
factory basis but. II Is believed. can be made TO
yield appreciably better results when the change
now under consideration is accomplishing.
The effect OF reduction Will be largely enhanced
value and much increased relative earning
power for the remaining shares.
proxy in due form. authorizing vote in favor
of reduction. Is inclosed herewith. which, II II be
agreeable you requested to sign and return in
accompanying envelope at earliest convenience.
The notice Is signed by William IL Perkins. Fred
eric =. Olcott. Samuel Thornc. George A. Crocker,
David S. Egeston, John Harsen Rhoades. George
G.. Haven. James y. Jarvie and Dallas y. Pratt, a
majority of the directors of the bank
OF the banks had experienced difficulties from the
high price they pay for the business OF country
bank deposits and which thought TO he the
of the Bank OF Americas proposed capital
reduction. President Perkins Of the bank said
yesterday:
That does not apply to our bank at all
We intend 10 reduce capital because We
with better advantage to the shareholders Our
bank Is In splendid shape. and Is at present. and
has for time. paid "A yearly dividend OF :
per cent. The shareholders will receive their por
ton of the refunded capital at par value. and the
reduction Will increase the value OF their stock
sl00 and with prospective increased dividends the
shareholders will receive much better return for
their money invested The present market value
OF the stock is 500 The Bank OF America has al
ways been modest in its statements. and has made
conservative showing OF its assets
1t is said in banking circles that several other
banks intend take the same action as the Bank