The Savannah morning news., 1902-11-27
MAY MEAN new BANK
AUTHORITATIVE IMPORTATION
GIVEN BY col. A. Il. LAYTON.
LEFT TO STOCKHOLDERS
TO WHOM COMMITTEE WILL SUB
NIT PLAN.

Believed That Acceptable Plan VIII
BE Formulated and That Merger
viii Be Made-stOcLh of In
stitutiOns to BE Consolidated Who
DO Not Want stock in New Bank
for Present Holdings VIII BE Paid
Cash for Their Old StOck-Syndi-
cate VIII Probably he Formed TO
Underwrite This Cash Payment.
Consolidated Institution May BE
Named First National Bank of Sn-
vannah.
The plans for the proposed merger
of the National Bank of Savannah and
the Merchants National Bank were
given to the Morning News yesterday
by Col Alexander r. Lawton, repre-
senting Mr.. w. w. Mackall as counsel
for the Savannah Trust Company In
discussing the matter Col. Lawton
said:
so many statements with regard to
the projected bank merger have gone
abroad that it is thought desirable to
make a correct statement of the facts
so far as they have developed. 1t is
not true that the Savannah Trust
Company has made any effort to pur-
chase control of either of the national
banks, nor is any such effort in con-
temptation. The trust company is a
stakeholder in the Merchants Bank,
but not in the National Bank of Sa-
vannah. 1t has no interest, directly or
indirectly, in the stock of either bank
except its ownership of the stock in
the Merchants National Bank, which
stands on the banks books in its
name, and which has so stood for sew
eral months past.
Fight for Proxies Denied.
There is no contest, present or pros
pectiVe, for proxies in either bank, and
no effort at control of either of them
for purposes of merger or consolidation
is contemplated. The facts are simp-
ly these: Several stockholders in both
or the banks some time ago approach
ed the Savannah Trust Company and
suggested the desirability, from the
standpoint of both banks, Of a merger
OF the two national banks into one
bank, believing that the combined in
sutution would be stronger, and could
do better and more profitable bust
ness than could be done by the two
as separate institutions.
IF a merger of this sort is to be
made it is desirable that there should
he some joint agent and depository of
the two parties. The Savannah Trust
Company, being itself interested as a
stakeholder in one of the banks. has
simply proposed to the boards of direc-
tors or the two banks that each of
them should appoint a committee to
meet with a similar committee select
ed by the trust company, and take into
consideration the possibility of making
some plan by which the stocks and as
sets of the two banks could be united
TO form a new national bank, prob
ably to be called the First National
Bank of Savannah.
Committee to Report plan.
THE banks have appointed these
committees, and they will meet in con-
nection With the committee of the Sa-
vannah Trust Company. If this COM
mittee shall be able to formulate a
plan which they believe to be lust and
equitable to the stockholders of both
banks, this plan will be submitted to
the stockholders of the banks for rati-
hcation, and it will rest with them to
say whether or not they desire to ac-
cept it.
IF it should be acceptable to a suf-
1cient number of the stockholders of
both banks, and should therefore be
approved by majority, it will be car
ried through, and stockholders who are
not satisfied to take stock in the new
bank in exchange for their holdings in
either of the older banks, will be paid
the value of their old stock in cash. A
syndicate will probably be formed to
underWrite this cash payment
IF the joint committee should find
1t impracticable to devise a plan which
Is equitable and just to all parties, and
which, in its opinion, will be to the adj
vantage of both banks, then no plan of
consolidation will be proposed, and the
whole matter would necessarily be
dropped But it is believed by those
interested that such a plan can be de-
Vised, and that it can be carried
through. Ultimately. however, the
question must rest with the stockhold-
ers of the Merchants National Bank
and of the National Bank of Savan-