Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-17

imum capital Of at least So, 900 may sub
scribe to an amount of capital stock of
the Reserve Association equal to 20 per
cent or the stock Of the subscribing ma
tional bank, and not less; and each of
such subscribing banks shall become q
member OF local association as herein
after provided for. Fifty per cent Of the
subscriptions to the capital stock of the
Reserve Association shall be called in
cash: the balance Of the subscriptions
will remain q liability Of the stockhOld.
ers. subject to CALL
shares OF the capital stock OF the Re-
serve Association will not be transferable.
ana under no circumstances may they be
owned Dy any corporation other than the
subscribing national bank, or by any indi-
vidual, nor may they be owned by any
national bank in any other amount than In
the proportion here provided In the case
OF national bank increasing it's capital
after IT once becomes a subscriber to the
stock OF the Reserve Association, the ma
tional bank shall thereupon subscribe for
an additional amount of the capital stock
OF the Reserve Association, equal to 20 per
cent Of the national banks increase of
value. but only one-half of this additional
subscription will be called in cash. as
hereinbefore provided. In the event of q
national bank, which is holder of the
capitai stock OF the Reserve Association
decreasing its capital. it shall surrender q
proportionate amount of its holdings OF
the capital stock of the Reserve Associa-
tion: or II national bank goes into
LIQUIDATION, 1t shall surrender all of its
holdings fthe capital stock Of the Re
serve Association. The capital Of the Re-
serve Association 80 surrendered shall be
cancelled. and the national bank thus sur.
rendering stock in the Reserve Associa-
ton shall receive in payment therefor q
sum equal to the then book value, al
shown on the balance sheet of the Re.
serve association, OF the stock SO sur
rendered.
Distribution Of Earnings.
The earnings Of the Reserve Association
shall be distributed in the following man.
ner: =
After the payment OF all expenses and
taxes the stockholders shall receive 4 Der
cent. Further earnings shall be divided,
one-half to. go to the surplus Of the He
serve Association until that surplus shall
amount to 20 per cent OF the paid-in
capital; one-fourth to go to the govern.
ment Of the United States and one-fourth
TO the stockholders: but when the stock
holders dividends shall reach per cent
| they shall receive no additional distrfbu-
| ton. After the stockholders receive 9
per cent the earnings shall be divided,
0ne-half be added to the curplus Of the
reserve Association and one-half to &c
TO the government. After the stockhold.
go ASSCisS - per SeifI per 80uum ana the
| surplus Oh the Reserve Association
amounts to. 20 per cent Of the paid-in cspi.
ta' all excess earnings shall 60 to the
government. The minimum dividends t.
the stockholders shall be cumulative.
All subscribing banks shall be formed
| into associations of national banks, to b.
designated as local associations. Every
local association shall be composed Of
not less than ten banks. and the com
oined capital and surplus Of the member.
OF each local association shall aggregate
| not less than 100000
| All the local associations shall b
grouped into fifteen divisions. to be caIlet
| districts. The territory included in tn,
local associations shall be so apportionet
that every national bank will be locate<
| within the boundaries of some local as
ISOLATION. Every subscribing nations
| bank shall become q member OF the loca
association Of the territory In which 1
i Is situated.
Each local association shall elect an
nually a board OF directors In the follow
Ing manner:
Local Organization Plan.