Evening journal., 1899-03-03
ONE CENT.
NEW CASTLE BANK.
Report of Experts Regarding
Its Closing Received.
GOOD SOLUTION OF vExED PROBLEM
ACCOMPANYING THE REPoRr
WAS A SUBSTITUTE BILL
CLARIFYING CUT THE RECON-
MnNrAT1cNs OF THE REPcRr,
nlHE TEXT CF WHICH is GIVEN.

NlAiNrNidlNN CJI llttE ftElCOM-
nFnNrATGcNs OF THE REPcRT,
TIME TEXT CF WHICH is GIVEN.
stan Correspondence Evening Journal
Dover, MarCh s.-wiJiam II. Heald,
John S. R1asel, George D. Kelley and
John s Collins, the four expert ac-
ocurta1l,s employed by the General
Assembly to conserve the interests Of
the State in the matter OF the closing
CT the N.w Castle branch OF the Farm
ers' Bank, made their repor; to the as
semblymen yesterday afternoon. The
Private Cooperation Committee OF the
Senate, ari several OF the senators net
a'tached to that committee, went over
10 the Hsuse to hear 1t read by John S.
R-scsll en- behalf Of the experts.
IL is regarded as an admirable scru-
tion of this vexed rrctlem, satisfactory
10 the m-n.crs and to the bank Beo-
r,e as wdn Accompanying the report
Wits a substitute bsll, which was read
10y Mr.. H.a-d rs provisions carry out
the re-1mino-1atlcns Of the report. the
tocs CT which is as follows:
I5 t1e Committee On Private Corpora
items CT the House or Representa-
tivos.
ca-lb-mou: The undersigned, ac-
ccuri-arss onlrcoyod by your commit
toa urt..r a ro5cluaion OF the House.
rassed February p. 1899, to examine
into the affairs Of the Farmers Bank
CT tae State CT Delaware. relative to
the dlosirs cf the branch bank at New
Castle. and concerning the redwotion
Of the capital stock CT the corporation,
have the honor to repcge as follows;
The Farmeas Bank being a COM
rnry. organized and existing under an
aoi OF the General Assembly. passed
February 4, 1907, with general bank
ing powers. and having its principal
hank ait Dover. with branches at
Georgetown, Wilmington and New
Chsule, thorough examination Of its
affairs would necessarily embrace not
Only the business Of the principal bank
hut also that cf the several branches.
IL has not been possible. in the limited
time allcwc1 for cur invc1tlgation, to
make such an examlnaJlons and we
havc therefore, been compelled TO rely
| iannlfy upon statomtnl.s furnished us
| 10y the principal LanlS for information
as to thie eera~al condition OF the COM
rci-y.
IL appears from these statements that
the surplus OF the company, held by
me principal hank and the branches at
Georgetown arid Wilmington, ON Fob
rualy 2l. 1899. amounted to S53S ,0i6.09,
divided as follows:
Principal bank
| at Dover .S3l, ,f4lV4 "a
Branch at
Georgetown .. 129,9S232
Branch at VIII
mingdCn o. o.. ,3l6.l3-$03o, ,U4o.O5
The Statement Of the branch
at New Castle shows a de-
felt, chargeable to surplus,
/ or ...... ..s... .s.....s... Ioi-Vo'tV
Reducing the general sur
plus account to .......... $5O9, ,S4O.69
Against this balance there would be
chaugcal1e also any further losses to
| February 81, net yet ascertained. We
i are cf the opinion THAT in the final set
lnoment cf the affairs OF the Now Cas-
use branch there Will be a very ma
terlal shrinl1age Of its assets, which
win inlrease considerably its present
shortage.
4. The branch bank at New Castle has
been failing for some years, and has
ret been able to earn the dividends on
.ts capital, which have been paid cut Of
1unds furnished by the principal bank.
. The largest asset OF this branch con-
\ sists cf real estate valued at $Sl,05S.3l,
ttE which, it is believed, cannot be
sod al a price approaching that sum.
Ihc-e is no apparent reason to hope
8 for IMPROVEMENT in the condition Of
:. she Now CASTLE branch, and since II
umst, # continued, be conducted at a
less. we recommend that it be closed
y Tie question Of the reduction OF the
Capitai stock Of the Farmers Bank Is
one Of vital concern to the State cl
: Delaware.
y The corporation is now capitalized a.
d S6SO,00O, apportionod as fellows:
e Prino'Dal bank at
J Dover .... ...... .s224,OOo
Branch at George
town ...... ....... lzV,OOO
Branch at Whining
ton ..... .......... zSo,OOU
Rranch at New Castle 1O0,0O0-SesO 'OO
le The state holds, as an Investment 70
10 its general fund. 1,275 null paid shares
,elarl as an irvdstmerit fer its schoc
" fund 2.A39 full paid shares and 800
le shares upon which $36 per share wer
by raid. The aggregate holding Of a
state Is thus found TO he STA share
on which it has paid SS657O0 Ah othe
Stockholders have hut 6,2S6 fun PAL
shares, representing an investment
We 1914. 800. The state has, therefore,
w majority CT 2, 2,42S shares and an inveS
e merit of $51, 400 mere than the oth'
cr lsscckho1d-rs.
The discortinmance CT the branch
New Castle would alone warrant r
dhtctiOn Of the capital, hut in addiht
10 this the accumulation CT the harl
M sumSlus shown above renders urne~e
lS saly the maintenance Of the who
~ amount CT the outstanding stock +
At .n, .-,f, ,,,ll ,,,-,,to l,l.a rondl1ct Cf N