New-York tribune., 1906-07-19
W WELLS-FARG0 ANSWER.
STOKES CHARGES DENIED.
Management Says There Is No
Mystery Concerning assets.

The management OF Wells. Fargo Co. yesterday
issued another circular to the stockholders, in
which the assertion is reiterated that the movement
headed by Walter c. Stokes & Co. '1s conducted
with the purpose of securing control of this cor
poration and of changing to your detriment, the
conservative and successful policy Of the present
management" The circular then takes up in de-
tail certain points Of the Stokes circular of July
II, and says in part
Two charges are now made. each OF which is un-
sheet furnished to yof with our circular letter Of
@ 1ne Sd INST Is untrue and that, IN some mysteLi-
made and has disappeared In view Of the state
kins Sells. the we'll known certified public ac-
countants. who officially audited and reported upon
the accounts of the company in January. 1904. to
Their report upon the subject is inclosed herewith
rms report was made after fun ana careTul eA-
animation and completely disposes Of the charges
sinuation sSout the loans o tbe company Not
dollar of the surplus other assets OF the com
company either directly or through brokers' or by
II is not correct to say that 1.-The issue is between
nd M M on the sand a1d the o9 f
other" The general and hearty support which the
management is re ceiving refutes this statement
plus will be abnormally accumulated. The direc-
tors have no such unreasonabe intentions s.; as are
attributed 10 them in the circular of the nth inst
and properly solcitOus to retain the confidence
is uncertainty or mystery concerning the assets
accounts business of the corporation; there is
a
management exercises to best protect and conserve
the interests of the stockholders of corporation
the business of which extends all the United
States and Is subject to OnerOuS laws of taxation
reports etc. At the last annual meeting, as at
previous annual meetings. there were presented
statements and accounts showing the true condl-
ton of the company, and at the next annual meet
ing information Of similar character will be COM
muncated
In the report to the president of Wells, Fargo &
Co. Haskins & Sells say in part:
We have examined the published statement of
Wells Fargo Co.'S banking department OF
August 1904 referred to in the circular letter Of
Messrs. Stokes Co, dated July II, 1905. This Is
a statement of the banking department. and in It
the sum of 100000 arbitrarily apportioned as
the capital of the banking department and the
nna M9kS FargS q GO agpeaTS IN tnat S{adeen{
represents the capital. surplus and undivided
profits Of Wells, Fargo & Co (the company as an
entirety) at that time, and the surplus at that
date over and above its capital stock Of 100000
S7,9l6545 u and more As stated, the capital
stock of Wells Fargo g. co. was. at that time,
and has ever since been, $sOOOC0O and for the pur
poses Of the banking department $4,000 was
treated capital and S7.5O0OO0 surplus; but the
total assets Of Wells, Fargo Co were more
ment, and were the same whether the S5o0.OOO
was treated capital surplus. The banking
department was not an independent corporation
with separate assets, but merely a branch OF the
business of Wells, Fargo & Co. This arbitrary
division of accounts was changed upon our recon-
mendation in 1904, but IL was merely a matter OF
bookkeeping. and neither increased nor diminished
the assets Of the corporation. Such surplus of
s916545 12 in August, 1904 has since increased TO
81. 1851 5S
Samuel Untermyer, It learned yesterday.
has been retained counsel by a number of
shareholders of Wells. Fargo Co. who in
sympathy with the movement headed by Walter
c. Stokes g. Co