The Birmingham age-herald., 1915-06-10
TRUST CO. WILL SUCCEED
 OLD INSTITUTION Jefferson County Savings Bank to Be Liquidated. New Concern to Help PLAN IS APPROVED
 BY ALEX E. WALKER Snowden McGaughy Will Be President of New Bank, Which Will Be
 Nationalized as Soon as
 Possible

Within 24 hours s225,00O has been sub scribed or underwrtten to insure the opening of the Jefferson Trust company by July 12. Of that company snowden McGaughy of Gadsden will be president. McLane Tflton will be vice president. The Jefferson Trust company will occupy the quarters opened by the Jefferson County Savings bank.
 The new bank will become a national institution within the time required for such an institution by law. The Jeffer- son County Savings bank will be liqui- dated and will pass out of existence there- by. An application for a charter for the Jefferson Trust company will be made this morning by at least five men who are to become directors for the new bank
 Walker Approves Plan
 The plan has been approved by Alex E. Walker state superintendent of banks, and there is apparently no reason to be- lieve but what every detail of the new scheme will result in favor of the old stockholders of the Jefferson County Saw ings bank. the open account holders and the savings depostors as well.
 It was stated last night that the Jeffer- son Trust company would assist in every possible way the liquidation of the old Jefferson County Savings bank. The equity, if any is coming will be pre- served for the stockholders of the old institution. The open accounts will be paid in full. The savings depositors will be paid practically all of their claims and will have the elective option of taking bonds on the building or accepting money. They will not be forced to take bonds.
 The above situations developed yester- day in connection with the efforts to set tie the affairs of the Jefferson County Savings bank.
 Following the disapproval of Snowden McGaughy of Gadsden of former plans for the Jefferson County Savings bank to the presidency of which he was invited, other plans were considered. It was final ly decided for the new concern to assist the directors of the old bank in whatever way possible and preesrve as nearly a possible the equity of the stockholders as well as the savings account houlders. By the plan the three interests will, it Is believed, be cared for.
 Statement From Mir. McGaughy
 The formal statement of Mir. Mo Gaughy in connection with the new developments follows.
 q am much pleased that the plan for the new bank is one that fully justifies me in going forward with the matter, and under circumstances that should contribute materially to the realization of the full value of the assets of the Jefferson County Savings bank without burdening the new insti- tuition in any particular that is incon sistent with sound banking principles. After a careful analysis of the situa- ton, and in view of the present gen eral conditions, I reached she eonciu- sion that the former plan would sub ject the new bank to an undue burden at the outset, and on that account asked the gentlemen who so kindly asked my assistance in the matter to relieve me. l then expressed my opin- ion that the solution of the situation was the organization of a new bank, which could lend it's assistance to ths liquidation of the estate without as- suming directly the burden of the old Eank' s liabilities; but I expressed the desire that this suggestion should not be considered until it became evident that no plan for resumption of busi- ness by the old bank was considered feasible.
 'On being advised that the large amount of fixed liabilities of the old bank, coupled with the difficulty of interesting new capital in the old or ganization. made it impossible for the old bank to resume business under present conditions, and that my assist ance in connection with the new insti- tuition was desired, l have consented to go forward with the matter and to give my undivided attention, begin ming next week In the meantime, the immediate steps necessary to the open ing of the new bank by July 12 will be perfected.
 Tt must be definitely understoo that although I am most hopeful, from my analysis of the situation, that liqui- dation of the old assets assisted by the new bank, should pay all checking deposits and substantially all of the savings deposits, with the possibility of an equity to old stockholders. the new bank, which will be known as tho Jefferson Trust company until it be- comes a national bank, is in no sense assuming any direct obligation to pay the liabilities of the Jefferson County Savings bank
 'The original capital of the new bank will be $250.00O, fully paid in cash. We propose to increase the capital to a min mum of S500,OO0 and convert the institu- ton into a national bank as early as prac- tioab
 'The personnel of the new institution has not been completed, for the reason that we did not begin to proceed def-
 tContinued on Page Nine)