The Birmingham age-herald., 1915-03-31
BANK COMMITTEE URGES ACTION BY
 THE DEPOS|TORS
Statement Issued Explain ing Plan of ReOrganiza-
 tiOn-NO Difficulty as to Stock Applications

The reorganization committee of the Jefferson County Savings bank yesterday issued statement urging savings de- positors to forward their acceptance of the proposal to pay 50 per cent in cash and the other 50 per cent in bonds of the building company secured by mort gage on the bank building.
 The committee says that there are no difficulties in regard to the application for stock in the new bank and that with the acceptance of the savings depositors reorganization would be speedily com pleted.
 The statement from the committee was as follows:
 The only source of delay with which We are meeting arises out of the neces- sity of explaining more in detail the re- auirement of the superintendent of banks relative to the savings deposits. The re- quirement is that the savings depositors must accept at least 50 per cent of their deposits in the mortgage bonds of the building company, the remainder to be paid them in cash. These bonds will be part of a total bonded debt, secured by mortaage on a building costing about Sl, 100000. A first mortgage of sS75,00o and a second mortgage of s150,oo0 are all that have priority over the mortgage securing the bonds set apart for the savings de positors. Behind these bonds will be about s500,000 of stock investment. The bonds to be taken by the savings deposi- tors will be a 10-year coupon gold bond, bearing per cent interest payable semI- annually, and subject to redemption al par on any interest date by the building company.
 Tt should be definitely understood that the plan approved by the superintendent of banks contemplates that all savings depositors should promptly accept this offer. and it will be impossible for the savings depositors to expect a prompt reorganization or any payment or the re- sumption of interest unless and until they accept the plan required by the superfn- tendent of banks. If the plan is not promptly accepted to the extent required by the superintendent of banks, liquida- tion and reorganization can proceed only by sale of all assets of the bank which would, in the judgment of the commit
 
 dcpositors of less than total of 50 cents on the dollar. The plan proposed should result in the payment of savings deposi- tors in full and, in view of the fact that the old stockholders are standing a shrinkage of over $375,0 900 in order to make possible this liberal provision for the say ings depositors, the committee trusts that the depositors will without delay forward their acceptance.
 50 far as the applications for stock in the new bank are concerned, the reor- ganization is presenting no difficulties. The committee is carefully canvassins the business interests of the district with the view of allotting the $250.O00 of new stock with men whose interest in or as- sociation with the bank will be of lasting benefit. We have been proceeding care fully, and believe that the personnel of the new organization will be as generally representative of the varied business of the district as that of any institution in the city, and we intend to see that 1t will be absolutely without any private or personal entanglements. All prospective associates are being informed that the policy of the new institution is to be broad and constructive. with no countenance for any personal jealousies, and without any tendency to favor any particualr business, clique, or interest"