The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-03-16
The Stockholders Decide
on Early Reorganization
STOCK TO BE SCALED
The Institution Was Solvent and Sur
plus Sufficient to Pay Shortages
of Cashier and Teller. Act of Di-
rectOrs in Shutting Doors
Endorsed.
Endorsed.
1snecial 10 News and ObserverO

Fayetteville, N. c.. March 15.-At a
meeting of the stockholders of the
Bank of Fayetteville, which was closed
during February by reason of short
ages in the accounts of Cashier Haigh
and Teller Myrover, to the amount of
about thirty thousarpa dollars, it was
today determined to re-organize the
bank with capital stock reduced
from 5000 to 100000.
The reorganization will be complet-
ed as soon as possible and the bank
will resume business within few
weeks at the latest.
The institution has proved to be
solvent and there have been offers of
assistance from several important
banking firms, which, however, will
not be availed of.
1t is thought that i'm the re-organ-
ization the president of the bank, DR..
H. w. Lilly, will be reelected.
The stockholders met at the court
house at ] o'clock, with Mr.. H Med.
Robinson in the chair and Mr.. L. Il.
McKethan as secretary, 1918 shares
out of 1 $50 being represented in per-
son or by proxy
DR.. III. w Lilly, the president of the
bank, explained the purpose of the
meeting and made plain, frank state
n1ent and explanation but not an
apology of the action of the directors
in closing the doors on the 18th of
February, stating that while the bank
was solvent and offers of assistance
were freely made, the apprehension Of
a run by the depositors in the excit-
ed state of the community and of the
disastrous consequences of such run,
had caused the directors after care,
full discussion to take q step which
seemed best to them and which,
| though at first criticised, had since
been approved by nearly every peg
son interested, both at home and
abroad. He stated that the surplus
and undivided profits would he suwffi-
cient to meet the amount of the short
| ages, that the bank had valuable
business, was conservative managed,
but that the capital was | rye for
the amount of the deposits and urged
a reduction from $163,000 to $100,O 900
| in capital by a voluntary scaling on
the part of the stockholders of their
! holdings.
The remarks of DR.. Lilly, in whose
| integrity, prudence and business sa-
gacity the people of this section have
| perfect confidence, were mainly, frank
and straightforward and made a de-
cidedly favorable impression
Temporary Receiver r. r. Gray OF
| Raleigh, made q statement of the con-
| dition of the bank up TO March 10TH
which, after charging off the losses
| showed the result stated in DR. Lilly'S
statement and State Bank Examiner
Ellington, who was present by request
| of the directors and with the permis-
| sion of the corporation commission
confirmed the statement of the presi.
| dent and receiver, except as to their
estimates on doubtful paper, which he
stated he considered that pr. Lilly
| had estimated to be of too little value
! out of an excess of caution.
An amendment to the charter au-
Mr.. S. Fl. McRae then offered a reso
| thorizing the reduction of
the capital stock was unanimously
adopted and Mr.. S. M NC.
| Rae then offered a resolution
! providing for reduction of the capi.
| tai stock to 100000 by voluntary
| scaling by the stockholders. and di-
recting the board Of directors to take
| the necessary steps to close the re-
| ceiVership and resume business early
| as possible.
A stock vote being called for. only
/ ten shares voted in the negative and
it is understood that the holder of
| these will assent to the plan.
/ Col Chas. w. Broadfoot with a few
/ Introductory and feeling remarks Cf-
| fered the, following resolutions. which
! he had prepared without the sugges-
1 tion or anyone and which were unani-
mously adopted:
THE stockholders of the Bank of
! Fayetteville in special meeting duly
/ called and held in Fayetteville. N c..
i March Is, do resolve, That we heartily
endorse and approve all that the presI-
dent and board of directors have done
/ in our behalf during the late trOubles
1 and we hereby tender them, each and
al our thanks and assurances a that
we arc ready. now ana here to stand
| by them with confidence increased
/ rather than lessened in their business
capacity, fidelity and integrity; that
we thank State Bank Examiner J. O..
1 Ellington for his manly discharge of
an unpleasant duty; that we thank
! the officers of the National Bank of
j Fayetteville for many courtesies ex-
4 tended to us and our customers; that
we thank Messrs. Granger and Yates.
cashiers respectively of the Murchi-
son and Atlantic National Bank of
/ Wilmington for their midnight ride to
Fayetteville with pPOfEered aid most
politely and cordially rendered; that
/ we are profoundly grateful to the good
people of our city and surrounding
country for words of confidence for
/ their patience i'm bearing temporarily
| the locking up Of their money, for
their kindly forbearance of harsh criti-
/ cism of acts of our officers taken for
/ the general good; that we are de-
termined now and here. to reorganize
and go on, taking again our place, sus-
| ,1ov,1o5 IaYtf not fOrfpifad 40 q coupd