The Birmingham age-herald., 1915-06-10
Statement From Committee

The formal statement of the reorgan- ization committee of the Jefferson county savings bank. which paves the way Tor the Jefferson Trust company, is as ioi- lows:
 Tn reaching conclusion as to the re- sumption of business by the Jefferson County Savings bank, difficulties have been encountered which made the adop- ticn of a plan fair to all parties Interest," ed one of great complexity. Ihe race value of the notes of the old bank, to- gether with the other assets, estinateu at a reasonable valuation, showed pos sible equity to stockholders. provided nor maj conditions were restored and liqulda- ton under the auspices of a going con cern could be brought about; but new parties were unwilling to assume the ul- lacr obligation to pay the debts Of the bank amounting, as they would, 10 dp- proxlpately Sl. 269 GOO This hesitation was increased by the fact that many or the binks debtors. whose paper would oroi- narily be considered good, nave shoWh profound indifference to their obligations and to the interest of the savings and other depositors, who are entitled to hrst consideration.
 "It was also found that many or the stockholders of the old bank were unWiil- ing or unable to respond to the capi'ai requirement. and that too large propoi ton of the savings depositors would hot accept the bonds of the Dullolne cohpanS wlich the assumption Of the pahh ueo'7 bv new institution made opnsatory
 ..The urinary purpose to be assured has hoen the reopening of a bank which would assume. outright. or assist Tn nquiua.iiis tba obligations of the old bank ana In nreserving any possible equity In the as- sets for the old stockholders
 "This situation has finally been hie.
 Al. he organized, with an adequate capi. ts, which will be in position to ex- tand banking accommodations to the extent that they are justified, on sound banking, principles. both to the gen eral and savings depositors and other creditors, pending the liquidation or the assets of the old bank, and which will also be in position to take care or the debtors of the old bank who are en- titled to credit. and thus permit them to discharge their obligations to the estate. and, by that means, greatly ac- celerate liquidation and the payment of the savings and other depositors of the old bank to the extent that the as- sets prove sufficient for that purpose.
 To Assume No Obligations
 "under this plan the new bank will assume none of the obligations of the cid DanK ana VIII pay ti SS'iS iiV'S of it's depositors. It will start with capital fully paid up in cash and intact, with the declared purpose of conver- sion into a national bank, to be known as inc Jefferson National bank with a capital of not less than $500,000, ana if is understood that this conversion should be accomplished not later than January 1, 1916.
 "The president of the new bank will he Snowden McGaughy. The personnel of the directors and the selection of of- ficers will be determined before the hank begins business. which will be not later than July 15
 "A sufficient amount of subscriptions are guaranteed by MT. McGaughy and his associates to permit the openbug of the bank by the time designated. and for that reason the announcement may he made that the Jefferson Trust cont pany will go forward immediately and serve the threefold purpose of asbisn ing in the liquidation of the assets of the old bank: in preserving any possi- ble equity which may exist for the bene- fit of the old stockholders. without ein- barrassing the new bank with any lia- bility or burden in connection with |liquidation; and finally, in providing the city of Birmingham with banking