The Birmingham age-herald., 1915-05-23
Reconsiders Decision to Be- come Associated With Jef-
 ferson County Bank
DIFFICULT TO AGREE
 ON CERTAIN DETAILS
This Is Reason Given by Gadsden Man for His Action Statement Is Issued by the Reorganiza-
 ton Committee

telephone from that city that he had de- clined last Wednesday to continue nego- t'atioas with the Jeffefsoli vounry Saw ings bank and that he was '.throue.. He added he notified the reorganization committee last Wednes sday that the pla outl ned did not meet with his approval and further that he would net accept the presidency of the reorganized bank nov in process of liquidation through the state banking department.
 Mr. McGaughy, who was telephoned by an Age Herald reporter with reference to his connection with the reorganization oi the Jefferson County Savings bank stated that. after effeeting satisfactory per sonnel and meeting with the most cordia assurances of the success of the reorgar- zed bank. 1t became difficult to agree or certain of the details as to the valuation of assets without referring the matter {, another meeting of stockholders that understand ng that this would entail con siderable delay, and in order to relieve the committee on reorgan zation of any em. harra ssment. he reached the conclusion hat 1t would be desirable for him to re tire.
 Hopes for Success
 On being advised that the committee or reo, ganzation had secured the consent p' d large majority of the stockholders tt the necessary modificat lDn of the plan and that this consent could be formally approved at the meeting of stockholdeis to be held on June 1. Alr. MeGauRhy ex' pressed the earnest hope that the matter could be worked out along that line an, an early resumption of business accom- plished He stated that the Birmingham situation was attractive to banker, an' that his action in suggesting that he stant aside was prompted by q very earnest de sire that no impeachment or deay shou'' be placed in the way of accomplishing { result so important to the city of Dir mingham as the resumption of bushes by the bank. and also. stated that he woul' be glad to assist in any way that he could Mr McGaughy is vice president ' charge of tho operations and conduct Q the First National bank at Gadsden am was requested to come here and hesp re organize the Jefferson County saving | bank a few days after the bank wa closed by A. F. Walker. superintendent O state banks Mir McGaughy announces that he wolld accept the presidency, an since that time has been working on tn plan of reorganizaton.
 The announcement of MT McGaugh | will be received in B rmingham with grea surprise and no little regret. He IS re | garded as a man of uncommon ability a financier and has striven' Naliantly [ adjust the situation so that II would per init his removal to this city In the mean t'me it Is stated that colonel Lyerly | president of the First National bank a | Gadsden T S. Kyle one Of the lafses | s,aclsh ders and other influential citlzen | of Gadsden, influenced MT McGaufh 1 in his determination to decline the Wor' in this city It is known here that th first announcement of MT. McGaughy tha he would come to Birmingham caused m tense regret in Gadsden where ne IS ne'' in the highest esteem and where he ma wide circle of personal friends.
 l If was considered probable that M' McGaughv would come here during tn first weeks of the month but dnflh' inc bankers convention. held here Ma l 10. it was ascertained that the opih ion prevailed among Gadsden banker and others well informed that MT, Me canet,v would not come to this city 1 Notbing further was heard until las l Wednesday, when Mr. McGaughy gay inc organization committee his ina negative declaration. He said yesterda | that he was only influenced in consiu ering the local offer because of the fac l that the work to all appearances pre- sented a. wider field of activity an i greater usefulness than the presen work at Gadsden
 Did Not Appeal to Him
 "The plan of reorganization did no anneal to me or meet my approval, 1 said MT McGaughy yesterday. s notified the committee last Wednesday | shall remain in Gadsden woul much prefer, however, that you obtai a statement from the local committee il
 I a V been very much gratif ed to have re turned to Birmingham, but as 1t Is l will remain in Gadsden and lend my in 1 nnence and efforts to the upbuildinl of this community and of making l-i | oitv greater and stronger. In the rae for state promotion l have the greates | confidence that Gadsden will be hear from and will render very good ac count of herself
 After being informed that The Age Herald had secured a statement frof | Mir McGaughy in reference to his decli nation to serve as president of the Jei ferson County Savings bank under reof ganization, Forney Johnston. attorne for the reorganiza tion committee, mau this statement:
 "The committee on reorganization c the Jefferson County Savings bank, | response to inquiries with reference t Il lumOred delays or ullllculties III caiiy ing out the proposed reorganization authorized the following statements
 "It has been known from the outse that. in carrying out any plan or re organization, an agreement would nav to be arrived at as to various detail! such as the proper valuation at whic the present assets would be carried b the new institution.
 Depositors Fail to Act
 wrhe difficulty of the situation hs also been increased by the failure O certain of the savings depositors | agree to accept 50 per cent of their de posits in the bonds of the buiidin company. It Is confidently expected tha these depositors will accept the pla and that the other details will b worked out in a manner acceptable all parties. It is proper to st@te tna
 upon learning that any question WE i, suggested as to the valuation place on the present assets, large majorit of the old stock holders have agreed tha
 the $125, 900 interest in the reorganizc
 bank, representing the amount of ts
 capital stock set apart for the O stockholders. shall not be distribute
 but shall remain in the custody of u | hank. as security for the valuation r
 auired by the superintendent of bank and under such terms of agreement as u latter may propose. This agreement wi
 be formally ratified at the adjourn, meeting of stockholders to be held ( June i, and it is confidently expects that it will result in a situation accepts ble to all parties interested in the .