The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-07-11
1.-THE LEGATIONS ARE SAEFRS NATIONAL BANK TROOPS TO WINTER HRE
A LEGAL QUESTION ABOUT THE
CONVERSION.
Branch at Hilo VIII Have to Close If
Conversion is Not Carried out-Sav-
ings Society.

The stockholders of the First Ameri-
can bank met this morning in the office
of Bruce Cartwright and decided to
adopt the plans of the officers and di-
rectors, If such plans are feasible, for
conversion Of the institution into a ma
tional bank. There is some question as
to whether the law allows this in a
territorial bank, and the scheme pre-
sented iRnd accepted includes means of
organizing a national bank separately
in case the authorities at Washington
decide that conversion cannot be ac-
complished.
The reports of president Cecil Brown
and Cashier w. G.. Cooper were pre-
sented, showing the institution to be in
elections of officers and directors were
held. President Brown, b. f. Dilling-
ham, Vice-president; w. G. Cooper,
cashier and h. Nj. Boyd, secretary, were
reelected and w. M. Graham was
chosen auditor in place of George Nc
Leod, resigned The only change in
the board of directors was the election
of G. ]. Waller to succeed H. M. Won
Holt.
In his report to the stockholders Pre-
sident Brown gave an outline of the
plan to be followed in changing the ma
ture of the organization. One effect
may be the closing of the Hilo branch.
Regarding the change the president
said: "There being some doubt on the
matter a question has been submitted
to the department of Justice for an
opinion as to whether under a strict
construction of the National Banking
act, bank carrying on business un-
der territorial law can convert itself
into a national bank. The provision
of the National Banking act makes pro-
vision for conversion only for banks
carrying on business under the laws of
the different states, and does not name
territory specifically. 1t is my opln-
ion that if the bank as at present con-
stituted can be converted into a nation
al bank, that will be the easiest and
cheapest method of availing ourselves
of the provisions of that act. The ques-
ton is with you, to decide whether we
! continue under our present charter or
not. If 1t is your opinion that we should
become a national bank, a resolution
to that effect should be introduced au-
thorizing the board of directors to take
the necessary steps and empowering
them to take and do all acts necessary
! for effectually carrying out that object.
! If this Institution cannot convert itself,
/ it seems to me that steps, as now out
lined, might be taken, that is to say:
--"Thel@ @5fesent institution could call in
the balance of it's subscribed capital
! /. e., $25O,OOO, then petition the proper
I Territorial officers for leave to reduce
| it's capital stock to $250,000 and change
! it's name to say The First American
Savings & Trust Co. of Hawaii Ltd.
and carry on, a general banking saw
! ings bank and trust business. The re-
naming $500,000 of Its assets could be
turned over to the National Bank in
stituted, and paid up stock of that bank
issued to the stockholders of this in
stitution, it being so arranged that the
stockholders in both the banks thus in
stituted, should. hold the same number
of shares that they would have held, II
this institution had still continued to
carry on its business and no change had
been made; thus a stockholder owning
rs shares now, would be entitled to sc
paid up shares in the National Bank
and % paid up shares in the Savings &
Trust Co.
"The Directors, in December of last
year, concluded to start a Branch /!
Hilo, and in January this was done. The
expense was considerable in fitting W
an office and in the purchasing of the
necessary supplies and furniture. So
far the venture has not proved as sue
cessful as it was hoped and exp ,cted
but the future of Hilo looks so favor
able for business, that 1t seems to ms
mot advisable to discontinue the Branch
but to continue the business there (s'
long as 1T can be dOne) until after rh'
next annual meeting. If, however, thi
institution becomes National Bank
(not by conversion) it will have to b,
closed, as under the National Barking
act no bank authorized to do business
can maintain or carry or business II
another place than that mentioned il
the charter.
I'm closing this report I wish to cal
attention of the stockholders to the fac
that Messrs. l. Steinhart & p. N. Lilien
thai, of the Anglo Californian Bank
Ltd, of San Francisco. have eXertet
themselves and have been largely in
strumeptal in obtaining for us a grea
deal of business on their side of tn
water, and it is to them and through
their efforts that we owe most, if no
all, of our foreign financial arrange
ments and agencies now existing"
The report of the cashier, w. G
Cooper, showed the profits of the frs
Year,s business 10 have been SIG 2S6. 40