Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-03-09
AFFAIRS or FARMERS BANK
Repors Of the Legislative Irsessig.t1nr
Commits

q
Doyer. March 3-TEe accountants
eInpl0yesI BIZ ghe committee On pirate
corporations 10 Investigate tbs affairs
IL HI. Farmers BANK relative 10 re-
ducing its capital stDcz and ciseor-
tinuin2 its Mex Czs;ts branch sub I
miGteli tneir report 10 the HOUSE
yestertiav afternoon. John 8. Resell 4
1 real the repo7t, which is as follows:
/ To the committee or pirate coFpo--
rasinns u the House Of representatives. i
i-GentieIoen The undersigned. ac-
/ countants employed By yonr COMMITTEES. /
/ under j. resolution Of the House. passed /
1 February 2is,. l5ess. 70 eEsmins into
I the affairs Of the Farmers Bank Of the
/ State If Delaware. relative 20 the
closing 81 the branch hank AZ New
Castle ard concerning the reduction
If the capital stock Of the corporation,
have the honor 10 report a. follows:
The Farmers Bank being a com
rsny. organized ard existing under an
sc. Il the General Assembly. passed
February 18th, lsJ7. with general bans-
isg ;y1Eers, and ha7ing its Principal
I bank az D0yer. With branches 81
GeoTgstoEn, Wilmington and SeE
Castle. q thorough examination Of its
affairs would necessarily embrace not
only the business Of the principal
bank but also that Of the several
branches. Il has not been possible, ia
the limited time allowed for or inyes-
tigation, 10 make such an examination,
J and We haze, therefore, been CONF
PEELED 10 rely largely uJon statements
furnished US by the principal bank for
information as 70 the general con-
dition Of the company.
"It appears from these statements
that the surplus Of the company, held
BIZ the principal bsng aud the branches
al Geoggstown and Wilmington. on
February Dist, 1899. amounted TO 1888.
oiG %. divided a. follows:
Psinctazl bzak, At DoTss...ss7i.75..Os
! 5rzLea al siedg sesown-+.. l-,.Ss--t-
BiaEeh :. Tliaziasron. !. sf.3ls.7I-S5Ss-ossfs
Tas ssa:rsneni "a The branch al ssE
Castle aaOrs q dsdcsi- chAEgesb.s .
! % s2fpiss cs.-....-t..--...t.-..-.. @,-Ss-so
gAea.sns ths general surplus a.
? eV4Es .0....-...--.-..-4 .-.-4-.....- ~ lsSsp9
ssAgsiDzt this balance there would be
ctargeabie also any further losses 20
February Dist not yet asccrtained. We
i are. Of the opinion that in the final
settlement Of the affairs Of the New
I; Castle branch there will be very
! material shrinkage of its assets, which
u will increase considerably its present
shortage.
J; THE branch bank at New Castie
has been failing for scme years. and
has not been able to earn the dividends
or its capital, which have been paid
out Of funds Furnished by the princira
!. bank. Ihe largest asset Of this branch
= consists Of real estate valued al ISL
; OJs.30, but which, il Is believed. can
:, not be sold at price approaching tina
7 sum. There is no apparent reason t.
hope for Improvement in the condition
i x 8. al
T. must, If continued, be conducted at +;
u loss, We recommend that it be closed.
? THE question Of the reduction 0
= the capital stock of the Farmers Banl
T. is one Of vital concern to the State Q
= Delaware. The corporation is now CAPT
Y tslized at S'5S0,O00, aprortioncd a
4 follows:
:, Principal bank. at poyer.s..... &!zspln
- Brsaen AZ Geprsetosn ......... i25ie9
&c Branch az acknowledgements. 23a.VD
" Branch al SeE Castle ....-.-... iOoAO1-SSe9,t
ie 1.-THE State holds. as an inyestmen
A. for its general fund. l,2I5 full pal
b.. shares, and, as 80 investment for j,
Id school fund, 2,i39 full paid shares an
". 1900 shares upon which s:G per shar
he were paid. The aggregate holding {
the State is thus found to be 81
j. shares, on which it has paid sss6j, 70l
IL All other stockholders have but 9, 2:
nd full paid shares, representing an inyesi
ment Of 1911, 800. The State has, there
fore, . majority Of 2.42S shares and q
J. investment Of 81, 400 more than Il
ew other stockholders.
1.-The discontinuance of the branc
lly bank at New Castle would alone wa
OF rant reduction of the capital, but,
Il. addition to this, the accumulation
1t the large surplus shown above rende
ion unnecessary the maintenance of Il
tn. / whole amount Of this outstanding stot
as for the safe and profitable conduct
W. the business of the banking company
rst Elm considering the question of sto'
to reduction. however, we deemed it on
lin just to the State, and to the gre
W. hcdy Of the people whom it represent
On to make due allowances for the pr
W. ponderating number of shares held
it, for its large Investment in the cal
.iaI tai Of the bank. and for the continu
ING and unyarying support which the Sta
,ter has given to the bank, resulting in
the steady increase Of the banks busint
and the growth in value of all t
ele- stock.
d.. Much stress has been laid on t
fact that the State paid in but s:}6 /
me- share on the 1900 shares for which
yn subscribed in 1887, and the argums
tho has been advanced that these sha
wed should be considered as equiyalC
tax only to Loo full paid shares. We ha
found that the State did not compl
uni the full payment. originally intend
, in To be made, on the 1000 shares, and Il
an. there remains to be paid S14 on each
ed a these shares, but it is also true II
q in tho State reserved to itself the right
ton the time Of amending the pan
charter, in 1881, to subscribe for s.,
con shares, and such subscription was d
the made by the State treasurer on
books Of the bank. Whether tho St
! on has waived this right by failing he
heir tofore to complete the required p
Kis- ment on these shares we have not
C'ity termined, nor have we thought it
genital TO the right solution of
ition question referred TO Us to insist u
One the recognition of this right by
on bank and the completion by the 81
most at THIS time OF me payment due on
5000 shares II this right is still 8
sisting, the exercise thereof would
rs. Of great financial advantage to
a,ion State, by giving to it q much lal
!. share Of stock and desirable, r
took paying investment. There has
this considerable difference of opinion
the this point. and, in order to reacl
{ the settlement, We have concluded tina
would be advisable to formally W;
I No. this right and accept, in lieu ther
ner a larger share Of the reduced capita
1000 the bank as an investment for
i'd j. school fund, thereby securing for
z. O5: State. in a measure, the benefits wi
l al ty. ltr sa