Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-07-22

Of William N. Boggs... lOT 10000 S i,IO7.Io
Exclusive Of amount to be recovered from
sureiies of William n. BogRs.
Respectfully submitted,
Helms, Lybrand Co.
Next Mr.. Jones read the following
statement prepared by the board of d.
rectors.
To the Stockholders Of the First National
Bank: The board of directors announce
officially what you have known for some
time. that your bank has suffered de-
falcation through William ~ Boggs, late
paying teller, of 100000 This defalcation
has extended over a period of about three
years, and has been accomplished by
clever manipulation of the deposits of the
bank. The discovery was made known TO
the directors Of the bank on June I'd. The
accountants have found no discrepancies
except in the deposits. On June Both
the surplus and undivided profits were
SCI. 407. 10, so that describing these valuable
items the stock will be impaired $45, $3.50.
The National Banking law will not permit
the bank to continue business longer than
three mouths on impaired capital, hence
the necessity of either assessing the stock or
reducing the capital. We regret exceedingly
that the dishonesty OF trusted emplove
has entailed so large a loss to the property.
A letter from the comptroller OF the
currency was read, giving directions as
to the formula TO be observed in the
reorganization proceedings. Also, a
letter from George V. Massey to Pfesi-
dent h. A. Richardson OF the bank,
urging the stockholders to adopt the
reorganization scheme as the best to
serve their own interests anu the inter.
ests of the bank.
There was practically no discussion
OF the situation as presented by the
statement OF the directors. Wilson L..
Cannon, the largest holder of shares
being the possessor OF 126-mace the
motion to adopt the recommendation
submitted by the directors. He said
it was a most humiliating motion, Ia
him, as the stock of the bank should
be worth 5000 per share, whereas it was
necessary now to cut its value down tc
$50 per share.
j. Edward Addiuks asked If the di.
rectors anticipated any trouble in re
covering the amount of Boggs' surety.
Mr.. Hayes replied that the report Of
the experts had been completed only two
days ago and that the board, had moi
yet given consideration to this subject.
Tbs matter would have to be left to the
directors. but he anticipated no trouble
The amount, $50, 600, if recovered. he
said would be placed to the credit oI
the surplus account.
The vote on Mr.. Cannon's motion wal
then taken. The list of shareholder,
was called. and those present responded
There were &c responses by individua
holders and So by holders of proxies
the result being total of 500 share
voted, out of a full capitalization o
1000. And all the shares were voted il
the affirmative. Among the absentee
was the Farmers Bank of Dover, hold
ing 35 shares.
Tbs vote in detail was as follows:
A. @. Baily, . shares Josepbine Bate
man. 8; S. NJ. Bateman, 8; s. NJ. Bate
man, executor, 2; 5. Nj. Bradford, )
M. G. Burton, 80; Jessn S. Butler, 90
Camden colored school, s.; Henry
Cannon, z; John Carrow, "a; +. NJ
Salisbury. 2; Mrs. p; NJ. Caulk,, ID
r. X. Caulk, 8; Il. Fl. Caulk, s.; f
B. Clark, 43; A. B. Conner, 10: 6, A
Cowgirl, 20: Z. @. Cowgirl, 20; S. L
Culbrette 3; NJ. L. Dukes, 5; Emerso
estate, 90; A. r. Goodwin, O.: Susst
Graham, q; Manloye Hayes. 35; Thoma
Jones estate, 5; H. II. Jones. 10
George NJ. Jones, 30; J. Edward Ad
dicks. ID; II. A. johnson, A; E. r
Kerr, 2; Mary Lafferty, 30: G. G
Marshall, 2; N. L. Marshall, 10; d
M. Prouse, 10; Fl. A. Richardson, 10
L. NJ. Richardson, SO; j. W. Richards
8; W. II. Ridgway, 10; NJ. IL. Ridgway
81; A. NJ. Ross. 10; r. j. Ross, 10; Nj
NJ. Rucker, 10; j. NJ. Stayton, 10
Thomas Simpson, 5; N. b. Smither
estate, 10; II. 4. Stetson, 8; S. NJ
Striker. 8; l.. L. Temple, IL; j. 4
Vanhurkalow, 20; Samuel Wharton, 10
A. S. Wharton, 10; j. II. Whitake
estate, IA; W. NJ. Wilson, ) Williat
Ellison, 10; A. L. Kitchens, 8; +. +
Armstrong, 7; W. L. Smith, 8; Sara
A. Moore, 4; NJ. Mitchell, a; A. d
Denney, 4; S. A. Moure, 0; e.
Clark, z; Z. II. Richards, 4; Samuc
Wharton, IA; A. Van Writ, 0.
Mr.. Addicks offered the folIowin,
resolution, which was unanimous
adopted;
Resolved, That we. the stockholders o