The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-03
BIGGEST BANK In THE LAND
CRY NATiOSIL PROPOSES TO MUL-
TIPLI IIS CIPfT1L M ZEN.

thfbA Af' var III fN.
Making Ten Millions With Stockholders
Liable for Ten More, and Five billions
: surplus-rrdposed Price of New stock
| Par to Stockholders, $50 to Directors.
The National City Bank prop SOS TO increase its
capital stock from 81 900 900 TO sl0 900 900. which
will make the cnptn1iti,l by fat tue
/ largest OF any ba Ks in the United States The
announce cnt was made yesterday in the fol.
lowing statement
| Tho directors o' the National City BANK have
unanimously voted to recommend to the share
holders an incrcnsr Of the capital stock from
! 81 900 900 to slOOOJOo1 This increase. in the
judgment Of the directors, is advisable for mum.
Der Of reasons
Among them may be mentioned the restriction
of tho National Banking act. BY which every
/ national bank Ia prohibited from makinr A di-
ctloan OF moro than one tenth OF its capital stock
| TO any person. nrm or corporation. Although
this restriction does not apply TO discounts of com
mercial paper, 1t does extend TO loans oven when
secured by the best collateral Md IL is precise.
| ly such loans for which there Is the grcatcft dc.
| mhnd in large amounts by single firms and cor.
porations
! The phenomenal increase OF both foreign and
| domestic business during the last few years
and the remarkable cxtention of the business Of
| WV IVY 'hhh botl AZ uOlne anu dDrOhl, CON
| sttute further reason for increase Of capital,
| In order TO H. cot the rapidly advancing demands
] OF business
| Under the new arrangements, II approved by
| the Shareholders as there is no doubt they will
he. the bank will AFFORD TO its dcpOSitors security
| as follows.
s,,a, nl ran 900 600
surplus and undiyii.d profits b0Vo ooo
To,a, - -
lo'al s75 900 900
II Is believed that such security (ali Of which
Is Of the most solid character. tno shareholders
being Of such class as to make their liability
Of equal value with the capital itselD will a,trac,
to the bank an eycr.incrcasing amount OF the best
and most conservative business
| The stockholders will vote upon the proposition
| on Jan. They received yesterday q circular
prepared by special com uittce. consisting of
Philip Schuyler. Percy Il Pyne. James oss
| Curran and Charles 5, orse reciung the propo-
ston OF the directors to increase the capital stock
| The circular reviews the development OF die bank
In recent years and attributes the success Of the
institution ~ the present directors who II is con
tended, have not as large interest in the stock
as Is justified by their work Ii is stated that
the directors should receive some substantial
appreciation OF their services by the holdcra
and as they cannot accept pccunlary compensa-
ton they should be accorded the privilege to
subscribe for reasonable portion Of tho enlarged
capital at fair price, without being charged
for the good will OF the new business. which owes
! its existence 50 largely to their Efforts The
| circular goes on 10 say:
The undersigned believe that It would he for
the advantage Of oil shareholders that they should
receive the privilege ~ subscribing 10 81 per cent
Of the new stock at par while the Board 81 Direc-
tors, to h. elected in January. 1900 should rs
] ~ a a
OF the capital, together with any shares not sub
scrtbcd for (Which will 30 very tow II any. at a
price equal to the amour, which would he real
lied upon those shares, in the bank wero
wound up: In other words, the actual value as Is
eppears upon the books
THIS value, when the new shares arc issued.
may he ApproN imatry stated at $40 900 600 cash
capital. and 81 200 900 UNDIVIDED profits, making
az t",ol OF $1,000 go actual value against $40
TSc a ,h@ or ss' p .rs sS advise
that the issue OF shares should b. disposed
q by permitting the shareholders TO suhscrib,
ami the directors TO subscribe for the remainder
o. he new shares At the rate 81 $50 per SHARE
the tooEs: tn premium 81 500 per share 20 he di.
y!ded rro rata among ne present. Shareholders
holders 10 about sol per shar. Un!cr this plan
the directors will pay about IS pr cent more Tor
their stock than shareholders DO
Tho circular DOES not say what the aggregate
.
candidates Tor reelection at the January meeting.
| They are:
2: FHai h;Ss:: I-S%P' Of : & Ta;ss SSa;
% Phelps, poise. 4 Co.. mosSls ii Gin street:
Charles :. farcaiid. Prcsleut u Nss York security
An; q AMER an, sugar kcraias 'inps y III
I"s sY. SSIR s.Scn fef
dent oc N.w Jersey Zinc company. % Wall street;
low Val street ~ TS,i1r PTn trustee OF Ms ssr;
Taylor estate ~ Wall stree; viii m R,cEcFtlier'
l,acoo II. schid. o. kghn Loee Co, hAnt.r.. y
man, merchants, PRESIDENT, william Douglas sloane
sloane OF tho Dc!aVaio I,eGsaenHa sni w%.tcTn
. & ss & ntG %s6b 1y s.p. ig' Il.
York
James s,!ll%an is Pr9si4en, Of the bank Sam.
Kaynnagh, u. IL Tapp6n, il IL Kilb"in and
| j. \ SULLIVAN. assistant cashiers The weekly
pub,hri yrs'ersy, made the ioa%nF V show
Ing as TO tn. city banks business; Capital.
81 nf 81 St az G slT csSi @"Rs
posts, slOi8l3 zoo average circulation S776 900
The City Bank hGa history, dating back to
otSS00,Ooo In 1859 this WIS incrrn's>l TO 81 600.
900, the present amount Il became, national
Moses Taylor was It's rnsidcnt AZ has death he
| waa Succeeded by his Srn in.laH, Percy II Pynr,
! anu on MI iShr" DEAN MI SULLIVAN became
PRECEDENT
ON july , last the oil Custom lIourr building
and site was sold H. tho hnnl, by tho Government,
the banks hid ~ So 2Lh 900 having been the high
est bid received by the Treasury Department
II has not yet been decided hy the hanks
whether the old Custom House shall be- torn down
and an entirely now bank huilliny erected, or
whether the interior shall be rcmodrIl"d for bank
ing purposes The purchase uf tho site at
the tins lOuNnd up'n IN the financial district ~
a step toward u" creation n u great bank which
would Tar a. ""1il 70" ir.;aily IN" case, assume
~ an |tI finance
that IL occupied abroad ~ SuCh institutions as
the Nanl; ~ Fngl1ni arl Tho Sank nj France
Part Of the lnrrrnrrd capital u was stated vcs.
t"rlnv, will hc utilized iur lan new building thus
obyIating the b lrroYInc ~ VIC required money
from drp0s.tt 'h" St,Cl 90 a." National Il
BanL fp- n Ions; i'm" has mmAndI pri ~ on
Sidcrabv IN cNCC'G of It's noon" vau" 7 he
last sale II the sinc'S was At %" rate II ~ OO7
y share
Dclcnmhr" III Celnoin.
Miss Gabrielle II C'snolo dnu:htnr OF Gen.
Louis 7. III Cc,uuln ~ 100 Ep,t I'ty-srv"n,h
street. was r',ri yesterday morning to