The Birmingham age-herald., 1915-03-26
PROGRESSBy BANK ON REORGANIZATION Statement by Jefferson
 Bank Committee LETTER TO HILTON NIT. Harding Makes Comment on Plan Which Has Been Adopted
 for ReOrganizing the
 Institution

The reorganization committee of the Jefferson County Savings bank issued a statement yesterday regarding the prog ress being made toN~rd early resump- ton.
 letter was also made public from W. P. G. Harding of the federal reserve board to McLane Hilton, Jr, agent for the state superintendent of banks. in which MT. Harding comments on the banks reorganization plans.
 The statement by the reorganization committee is as follows:
 The detail work incidental to the early resumption of business is well under way. A large number of acceptances from in terest bearing depoNtors have been re- ceived and the stockholders have already agreed to the scaling of their stock. A sufficient number of acceptances should be received within another week to as- sure the accomplishment of the plan.
 ''The new stock reserved for the new interests is being placed with some of the strongest interests in Birmingham and the committee is confident that none of it will have to be placed outside of Birmingham
 The letter from MT. Harding to MT. Hilton is as follows:
 Washington, March 10, 1915.
 Dear Mir. Hilton: I am very glad to learn from your letter that the plan that you worked out for the reorganzation of the Jefferson County Savings bank was adopted by the stockholders without a dissenting vote.
 q understand that the plan involves wiping out the entire surplus of s25O0OO. as well as three-fourths of the capital of $500,000, making in all scaling down of $625,000 against which bad doubt full assets will be charged off, these as- sets including common stock in the build ing company amounting to s400.000, which I understand from your letter will be surrendered and reissued as preferred stock for sl50.0O0, the difference of s25o00O to be part of the s625,O0O to be charged off. l infer from your letter that this will give the bank control of the build ing without any investment to be carried on the books in furniture, fixtures or equipment.
 Tt seems that the present stockholders should receive the benefit of any amounts that may be realized hereafter from the charged off assets, ana understand from your letter that these assets are to be liquidated for their benefit solely
 An essential, part of your plan appears to be the proposed settlement with sav- 1ngs depostors. | think that if I were a savings depositor of the Jefferson County Savings bank that I would accept the settlement offered, as it appears that the 50 per cent cash settlement is in it. self more than would be realized for the savings depositors by liquidation of the banks affairs. You state that prior liens on the building abount to S525 900, so that, including the new mortgage issue pro- posed for the benefit of the savings de- positors the total bonded indebtedness of the building would be $25,OO0 There are many excellent judges of real estate val ues in Birmingham. whose opinions com mand public confidence, and I have no doubt that you can without difficulty get an appraisement of the building which would be accepted by the public as con- seryative.
 q am glad to know that MT. S. Me- Gaughy has agreed to accept the presi- rency of the reorganized institution. He has had practical experience in banking in Birmingham. and has kept closely in touch with business conditions in the city
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