The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-05
Stockholders Will Pay in Big
Assessments if Heavy Credi-
tors Will Be Patient.
SEVERAL DEp0SIT0RS HAVE
AGREED TO STIPULATION
Salt Lakers Likely Will Aid
Utah Banking institutions of
Lehi and American Fork.

Plans are making to reopen the Utah
Banking company banks Mt bchi and
American Fork, which closed their doors
two weeks ago. If these plans mater
ialize, it is given out by stockholders
and officers of the banks, both institu-
tions will reopen their doors within six
ty davs Cashier James Clark of the
American Fork branch bank. in talking
over the telephone Saturday night, said;
s'I feel pretty confident that the
banks will open soon on the same basis
that they closed, that is, with the same
stockholders and without outside assis-
tance further possibly than some stock
subscriptions by local men.
''At our stockholders meeting Sat
urday it was agreed that each stockhold
er will paw a cash assessment of an
amount equal to 80 per cent of his hold
lngs. This would give us $25, 900, To
this will be added the collections made
since the banks closed and some paper
taken up entirely, making, we antici-
pate, a sum of 100000 as capital to
open tho two banks,
"The agreement of the stockholders
that is that all our heavier creditors
will agree to withhold demand for pay
ment OF the banks obligations for from
six TO eighteen months. l Will say that
most, If not all, the local heavy deposi
tors have signiied their willingness to
give the time stipulated. We have not
vet communicated with other creditors
and | am not able to say what action
they will take. although we have every
reason to believe they will join with To-
cal creditors IN the agreement
Independent Bank Possible.
Asked as to the report that an indie
pendent bank is to be organized at
American Fork Mr.. Clark said:
Yes, that has been talked of in this
way. In the event that the banks do
not reopen as L have outlined, there
may follow movement under the
plan that the stockholders of the Amer.
can Fork branch of the banking com.
pany dispose of their stock to the Lehi
bank, the money thus obtained to be
used rs II nucleus for capital 20 open
an independent bank ] am assured by n
number of Salt Lake bankers that they
will subscribe stock to the independent
bank. | understad that in the banking
bill now before the legislature there is
provision abolishlng branch banks,
ard if the bill passes with that provi-
sion there Will then arise necessity
of separating the two banks. In that
event the plans | have mentioned may
be followed out.
"In any event. it is safe TO say that
the bank in Lehi and the branch here
in American Fork viii reopen at an
early date, -
Eehi Banks Statement.
Supporting Clark, the following state
ment WAS given out by the president
nd Of bo / c.
At a meeting of the stockholders Of
the Utah Banking company held at
Lehi today at which there was repre-
sented 4S0 shares of the capital stock
out of 500 shares, it was unanimously
agreed by all present to turn in to the
Utah Banking company for It's use and
benefit an amount equal to 80 per cent
before March 6, 1911, and If the proper
arrangements can be made with our
largest creditors for in extension of
time on the money held by US, which
we are sure can be done as many of
them have expressed their willingness
10 do so. the bank again will open for
business as soon after March 6 as an
order of the court can be obtained
therefor, and we shall be pleased to
meet our many customers at the usual
place.
"IRA d. WINES. President.
.'CHARLES &. FR1EL, Cashier
I'riei says that all the stockholders
present expressed willingness to do any
thing Ill their power to help the bank
out.
Long Time Loans to Blame.
The two banks operated under the
name of the Utah Banking company
were taken charge Of by State Bank
Examiner G. Albert Glazier Monday,
January 90, after being ordered TO turn
over all accounts to the examiner by
Secretary Of State Charles S. Tingey.
A few days after the order from the
secretary Of state, committee of bank
ers Of Salt Lake examined the books of
the bank and confirmed the last state
ment issued by the banks. November
81, 1910. In addition TO this the COM
mittee examined the accounts of the
bank up to the day of closing
In making 4 report tms committee by
unanimous consent gave out as the
cause Of the closing long time loans,
The assets of the bank occording to
the examining committee, were in ex-
cellent shape but for these loans, some
of which were made out for four years.
Failure to collect in the loans left the
banks without ready means for con,
Quoting business and the order to close
came. It was commonly agreed among
banking men familiar with the affairs
Of the banks that if the institution had
not made so many Of the long time
loans no trouble would have been ex.
perjenced.
r,