The Savannah morning news., 1904-12-07
REDUCTION PLAN
IN BANKS STOCK
TO BE ANNOUNCED TO-DAY
IN LETTER FROM BOARD OF d.
RECTORs TO STOCKHOLDERS.

Change Suggested by Directors i'm
the Interest of the Stockholders.
Has Been in Contemplation for
About Two Years-Merchnnts Ma
tionaI Bank Will Make no ALI
ance With Any other Financial
Institution, President Says.
The plan of reducing the capital
stock of the Merchants National Bank
from 100000 to half that amount,
which will be submitted to the stock
holders of the bank at a meeting to
be held Jan. 10 is announced as follows
in a letter that will be sent each of
the stockholders to-day:
The board of directors of this as
ISOLATION have decided it would be very
much to the interests of it's sharehold-
ers to reduce its capital from $500, 900
to $780, 900, at the same time distribut-
ing portion of it's surplus and undi-
vided profits. considerable saving
in taxes. ETC., will thereby be effect
ed and it is believed no material in
jury to it's business will result.
Al ptcSCIll lilGlC dPPCdIS " UC nO
reason why said reduction should not
be effected on a basis of say Sis per
share (Which is more than the market
value of the shares for some time
pasD. 1t is not deemed advisable to
pay for said reduction in cash, there
fore the following plan has been sug-
gested:
Pay in cash INSTRUMENTATION. SIS 90
Issue certificates of deposit bear
ing five 60 per cent. interest
for the remainder, payable
three months .................... 20 90
Six months Observation-Disclosures. 20 90
Nine months neutrality-suspicious. 5 90
Twelve months ................... 25 90
FER snare ......................' ''$l1o w
This reduction, if carried out. will
be pro rata, each shareholder being
treated alike. Fractional shares to be
settled for in cash on same basis.
Shareholders VIII Meet.
At a meeting of the board of direc-
tors held Nov. 80, 1904, the following
resolutions were passed.
Resolved, That a meeting of the
shareholders of this association is
hereby called for Tuesday, Jan. 10,
1905, at IL o'clock a. M, at its bank
ing house, to vote upon the following
resolutions:
Resolved, That, under the provisions
of Section Slab, United States Revised
Statutes, and of the law amendatory
thereof, the capital stock of this as
ISOLATION be reduced in the sum of
$25OOOO, leaving the total capital, after
said reduction, $3.50 900, when approved
by the Controller of Currency.
Resolved, that the board of direc-
tors of this association are hereby au-
thorized to make payment for said re-
duction as follows: Fifteen dollars
(S15) per share in cash, and the re-
mainder in four equal instruments,
payable three, six, nine and twelve
months from date. Certificates of de-
post bearing interest at the rate of
lVe (5) per centum per annum to be
issued for said deferred payments.
You are urgently requested to sign
the enclosed proxy and mail to Mr.
George ]. Mills, Savannah, Ga. Do
this' whether you expect to be present
IN person or not"
Will He no Alliance.
Mr.. j. A. G. Carson, president of
the bank, in discussing the plan yes
terday, said there is to be no alliance
with the Savannah Trust Company, or
any other organization. This action is
taken entirely for the benefit of the
merchants National Bank. and was
not inspired by the officers of any 9TH
or organization" he said. The meas
ure is deemed by the board of direc-
tors TO be In the best interest of all
the stockholders, and has been in con-
temptation for about two years, though
until recently the time for making the
change did not appear to be propitious.
The reduction of the capital of the
oank will increase the earning capac-
ny OF the remainder of the stock" said
Mr.. Carson. This reduction. as
VIII be made by the Merchants Ma
lonal Bank without the assistance OF
~.