The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-07-30
SEVENTH NATIONAL BANK
Its Reorganization on sed CapI-
tal-Suit Against the Directors

New York. July 25.-yith the federal
grand jury in session on an investiga-
ton OF their affairs the board OF direc-
tors Of the Seventh national bank met
today and decided upon d plan for the
reorganization of the defunct bank.
The capital stock is to be increased
from $780, geo to So. 500. GOO n the addi-
tional issue of $1,000. geo in stock Will be
sold at $3.50 per share with first pur-
chase privilege to Il. e present stock
holders. The cash proceeds OF the as
sessment on the existing stock and the
sale of new stock will. it Is claimed
pay all present obligations and COM
pletely restore ~solvency.
Existing stockholders are to be re-
CURED to pay the assessment ordered
by the comptroller Of the currency.
Edwin r Thomas, Edwin Gould. VII
liam Nelson Cromwell. Farnk Ray.
William II. Taylor and Edmund X.
Stale have been constituted n commit
tee OF subscribers with plenary powers
10 carry out the plan. They are TO re-
celVe subscriptions and represent the
stockholders in all matter relating to
the bank and Ieceivership.
The present directors and officers are
i1foACo " NtiluSI iltT TNSlkuaIlOUS
and a majority under the new subscrip-
ton Will elect their successors. The
plan is made binding upon all subscrib-
ers when 80 per cent. of the new stock
is subscribed and so per cent. % the
assessment is paid a subscription
form ~embodying the main features of
the plan of organization was also
! drawn up and approved. A substantial
amount Of the new stock has already
| been subscribed.
United States District Attorney
Henry l.. Burnett says the plan to re-
organize the Seventh national bank
will not affect the investigation by the
federal grand Jury.
William 4. D. Stokes. who is a stock
holder Of the Seventh national bank
| has taken out ummonses in the SUI
! preme court against the directors of the
bank. President Thomas and Receiver
Raynor. The complaint charges the
directors with making reports to the
stockholders to the effect that the cap
ital Of the bank was unimpaired when
as a matter of fact IT was already in
solvent. II further charges that the
directors utterly failed and neglected
to perform their official duties" that
they suffered and permitted the ac-
counts of said bank to be kept in an
inaccurate manner which failed TO
show the true character of it's affairs"
In the complaint the directors are
further charged with having employed
incompetent persons as officers OF the
bank, who We're unable to properly
and efficiently discharge their duties.
all of which is we'll known to the d.
rectors." After having further charg-
ed them with having given loans TO In
solvent persons and corporations with
out adequate securities. he Corl-
plant goes on. That the said direc-
tors, defendants herein. so negligently
| and carelessiy conducted the said bank
and the business and affairs thereof
! that the entire capital n surplus. and
much Of the property and effects thereof.
have been lost. and the stock OF the
said bank rendered worthless and the
stockholders thereof rendered liable tor
a large sum Of money on account OF the
debts of the said bank remaining I'M
paid"
, The plaintiff then demands Judgment
for the total amount of his loss as a
stockholder Of the bank. n he costs
Of the suit.