Semi-weekly herald., 1908-11-19
LOOKS GOOD FOR
sMELTER CITY BANK


And now 1t begins to look as If there
is to be an amicable settlement of the
affairs Of the Smelter City State bank
which will be pleasing news to the
people of this southwest section. A
meeting was held last evening at the
office of Reese McCloskey which was
attended by Chas. e. Mcconnell and
A. E. Reynolds on the part of the
bank, and a number of the depositors,
among them F. r. Graham, c. H. Sny-
der, Harry Jackson, Chas. e. Stilwell,
Frank Goodman, Joe Hollowpeter, Joe
Taylor and Mr. Bartholomew, repre-
senting themselves and ]. c. Sanford
appearing for the Woodmen of the
World.
After considerable discussion two
propositions were submitted by the
depositors' committee, either of which
Mr.. Reynolds agreed to carry out. The
first proposition follows:
Mr.. Reynolds agrees to advance S2,-
200 to be used to pay off all small de-
pObltoiS at OHte, hisO W
per cent in cash of the banks indebt.
edness after the claims otherwise sat
isfied, and which Mr.. Mcconnell con
trolls, have been deducted from the
| sum total of the banks Indebtedness.
The total Indebtedness of the bank
is in round figures $l45,000 and the
| amount of such claims controlled by
Mr.. Mcconnell equals about $4,000,
which would leave 100000 to liqui
| date. In addition to the 20 per cent
to be supplied, the creditors are to be
| secured to the extent of 37h per cent
by notes, running eighteen months and
drawing per cent interest, these
notes to be signed by C. e. Mcconnell
Il. Kellar and A. E. Reynolds, it being
agreed that the cash in the receivers
| hands now, and that which may be re-
| allied from the banks assets, be ap-
piled as part payment upon these
notes, The balance OF 37h per cent
to be taken out In stock In McCon
| nell's Nevada mine on a basis of 25
cents per share Mr.. Reynolds also
| agrees to take care of and pay the
remaining $4,000 due on the bond
held on the Nevada property, which
bond expires about Dec. l next. The
conditions of the agreement call for
the payment of the % per cent cash
to be made not later than Feb. 1, 1909.
By this settlement, If adopted, de.
positors will receive 25 per cent very
soon and notes for 37la per cent,
running eighteen months, but there
will be in the hands of the receiver
approximately $4,000 TO be applied on
these notes, and with this sum it
means practically so cents on the dol
lar by February and possibly the en-
| tire SLY per cent as the notes may be
| redeemed in full by the receiver and
Mr.. Reynolds, although the stipula-
| ton provides for the balance due on
| the notes running eighteen months.
The remaining 37la per cent to be taken
in stock in Mr.. McConnell's copper
property In Nevada should be a good
investment when 1t is considered Mr..
Reynolds is willing to risk his money.
In this connection 1t was stated this
morning that the stock in the Nevada
mine was assessable and this would
enable the large holders to freeze out
the smaller ones. The company was
formed under the laws of Colorado and
| the stock is worcestershire
The second proposition provides for
isSuihS hotes 10 run three 10 nVe years
with low rate of interest to be signed
by Messrs. Mcconnell, Keller and Rey-
nolds. No wash will be paid on this
proposition and no stock issued, the
amount in full being paid with these
| notes.
1t is matter for depositors to de.
| eide. AS the bank assets will not pay
over 12h per cent of the liabilities
| depositors have assurance of receiy-
ing an extra so per cent in cash within
very short time and there is very
good chance of them realizing double
on the mining stock. This position has
been practically accepted by all the
heavy depositors and it is thought that
| all will acquiesce so that steps can
be taken at once to carry out the
provisions of the agreement The Her.
aid trusts that II will only be a matter
of few days before we can announce
the positive settlement of the Smelter
City State bank affairs. 1t will mean
much for this community. coming as
II will on top OF the highly satisfac-
| tory settlement of the Colorado State
bank liabilities.