The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-07-26
DECIDE ON PLAN TO
REORGANIZE BANK
Arrange to Restore Seventh
National to SOlvency.

New York. July 25.-With the federal
grand jury in session on the investiga-
ton of their affairs, the board of d.
rectors Of the Seventh Nationoi bank
met today and decided upon a plan for
the reorganization of the defunct bank.
The capital stock is to be increased
from $500, 900 TO $500, 900 and the ad-
ditiCIal issue OF s. zoe, 600 in stock VIII
be sold at S130 per share, with first
purchase privilege to the present stock
holders.
The cash proceeds Of the assessment
on the existing stock and the sale Of
new stock will. 10 is claimed, pay all
present obligations and completely re
store sOlvency. Existing stockholders
are to be required TO pay the assess
ment ordered by the comptroller OF
the currency. Edward r. Thomas, Ed
win Gould, William Nelson Cromwell,
Frank Ray. William II. Taylor and
Edmund X. Stasle have been constl-
tuteG a committee of subscribers with
plenly power 10 carry out the plan
They are to receive subscriptions and
represent the stockholders in all mat
tiers relating TO the bank and receiver
ship. The present directors and off,
GERS are required TO tender their res
ig- atoms and a majority under the new
subscription will elect their successors.
The plan is made binding upon all
subscribers when 90 per cent of the
new stock is subscribed and so per
cent Of tie assessment is paid.
A subscription form embOdying the
main features of plan Of reorganization
was also drawn up and approved. 4
substantial amount of new stock has
already been subscribed.
United States District Attorney Hen
~ l.. Burnett says the plan to reOr-
Eanize the Seventh National bank viii
not affect the investigation by the fed
eraI grand jury
Complaint Against Directors.
William z. D. Stokes, who is a stock
holder of the Seventh National bank,
has taken out summons In the supreme
court against the directors of the bank,
President Thomas and Receiver Ray
nor The complaint charged the dl-
rectors with making reports to the
stockholders to the effect that the cap
itaI of the bank was Unimpaired, when
as a matter of fact il was already IN
solvent. It further charges that the
directors utterly failed and neglected
TO perform their official duties that
they suffered and permitted the &C
counts of said bank to be kept in an
inaccurate manner. which failed to
show the true character Of its AFFAIRS
In the complaint the directors are
furthes. charged with having employed
incompetent persons as omcars or the
bank who were undDle 70 pfOpeIiy
and efficiently discharge their duties,
AM of which was well known to the
directors
After having further charged them
with having given loans to insOlvent
persons and corporations. without ade-
uuaIe and valid securities, the com
plant goes on.
THAT said directors defendants SO
nePligentIy and carelessly conducted
the said bank and the business and at
fairs Thereof. and the entire capital
and surplus and much of the property
and effects thereof have been lost and
stock Of the said bank rendered worth
less and the stockholders thereof rem
dered liable for a large sum of money
on account of the debts of said bank
remaining unpaid"
The plaintiff then demanded Judg-
meut for the total amount Of his loss
as a stockhoIder of the bank, and the
cost Of the suit.