Evening journal., 1899-03-03
new CASTLE BANK.
Iconunued From First pase.l

derctirlg number OF shares held by it.
fer ils large Investment in the capital
Of the bank and fer the continued and
mvarying support which the state has
given to the hank. resulting in the
steady increase of the banks business
and the growth in value Of all the
stcclx
Much stress has been laid on the fact
that The stabe paid In but S36 per share
ON the 5000 shares for which Il sub
soibed in 1887, and the argument has
been advanced that these shares should
be considered as equivalent only to
3 1000 FUN paid shares. We have found
that the state did not complete the fun
paymenlt. originally intended TO be
made, on the 5000 shares. and that
there remains TO be paid $l4 on each
Of these shares, but ii is also true that
the state reserved to itself the right to
THE time Of amending the banks char
ter, in 1887, to subscribe for 5000
shares and such subscription was duly
made BY the state treasurer on the
books OF the bank. Whether the state
has waived this right by failing hereto
fore TO complete the required payment
on these shares we have not deter
mined. nor have we Thought It essen
tial TO the right solution Of the Ques-
tion referred ITO us to insist upon the
reocgrL5icn Of this right by the bank
and the completion by the state at this
time Of the payment due on the 5000
shares. If This right is stiM subsisting
financial advantage to the state by Civ
ing to it a much larger share Of stock
and a desirable, good-paying invest
ment There has been considerable
difference of opinion en- this point. and
In order to reach a statement we have
cond.uded THAT it would be advisable
TO formally waive this right and accept
in lieu thereof a larger share CT the
reduced capital Of the hank as an in
vestment for the school fund, thereby
securing for tine state In a measure the
benefits which wbuld accrue to it by
the exercise Of the right to make tho
5000 shares fun paid.
In connection with our investigation
we have carefully examined the bin
pending before your honorable COM
mittee, having for its object the clos
ing of the branch bank at New Castle
and the reduction Of the capital stock
OF the banking company. Under tins
bin, If Il should become a law, the
slate would forfeit alf privileges as a
subscriber for the above mentioned g.
600 shares and would surrender in all
3,22Sl5 shares Of it's present holding.
Il Ia In, ks
banking company S11S,S5250, and the
majority Of 2.43S shares. which the
state now holds, would be reduced to
7771 shares
We have prepared and submit here
with a substitute bill under which, we
believe, THAT, while the state would re-
ceive n few benefits that could not be
accorded to il under the terms Of the
original BIZ, equal and exact justice
Will at the same time be done TO the
individual Stockholders. Under che
provisions Of the substitute bill the
state win retain $500 fun paid shares
Of stock and WIN receive StOt910. $S2.-
S75 for it's general nIrll and $22 .O35 for
It's school fund. The individual stock
holders viii receive 1900 full paid
shares and S65 per share for 1856
shares OF their present holdings to be
retired. The state viii then have a
majority Of 1 400 shares, as against III
provided by the original bila, and will
receive a smaller sum Of school fund
to be relnvested.
We believe that the best interests OF
The state and the other stockholders
Of the bank win be subserved by The
passage Of the substitute bin.
We desire to here call the attention
Of your honorable committee to the
Importance of passing an act, before
the Adjournment of this session Of the
General Assembly, fer the reinvest-
ment Of the above sum Of S22, ,035, which
will be credited to the school fund. I'M
less this be done the money VIII re-
main idle and unproductive.
We desire also to acknowledge Gun
indebtedness to Hon. Edward Ridgee y
the able attorney for the Farmers
Bank at Dover and TO Walter Morris
cashier Of the bank for many courte-
sizes shown apd valuable assistance
rendered us in the course Of our work
Beth were referred to the committee