The Birmingham age-herald., 1915-03-09
Statement From Committee


 "The committee on reorganization de- son County Savings bank authorizes the following statement relative to the pro- posed reorganization of the bank:
 "The superintendent of banks requires. as a necessary condition to his approval of any plan of reorganization, that the bank should not carry its interest in the building at a figure in excess of $150.000, and that the present stockholders shall consent to a reduction of their present holdings from s5oo.00O par value to s125.- GOO par value, a shrinkage of s375,ooo, in s25oOOo. or a total shrinkage of $625, ,OOO. New stock to the amount of sS75,Oo0 par value will be issued at par in lieu of the decrease of the present stock. It is also necessary that the interest bearing de- positors shall accept 50 per cent of their deposits in cash. on terms satisfactory to the superintendent of banks, and 50 per cent in the per cent mortgage bonds of the building company, which will by that means substantially liquidate it's debt to the bank. It is confidently ps-
 
 the interest bearing depostors, is not amply protected, but that it should sell at par on the resumption of business by the bank.
 The details of the proposed plan are being worked out as rapidly as possible by the committee on reorganization, who are also considering most carefully the personnel of the new officers, and they hope to be able within a few days to make an announcement that will carry full assurance as to the success of the reorganization. The plan proposed will assure a cash reserve in excess of 65 per cent. The superintendent of banks has stipulated that the officers and personnel of the reorganized institution must be ap- proved by him, and, in order that the committee may be free in interesting new capital and assuring it, as well as the new officials, of full representation, the present stockholders have agreed to re- Anguish their right to subscribe to $250 0O0 of the new stock, and all present officers and directors will tender their resigna- tions.
 No Objection to Plan
 Tt is gratifying to state that the stock holders, directors and officers of the bank have met the situation in way that makes it possible for the commit tee to proceed with the details in man. ner that will accord with the entirely sat- isfactory financial showing to accompany the resumption of business on the basis proposed. As evidencing the co-opera- ton with which the committee has been met, it is worthy to note the fact that over 90 per cent of the stock was repre- sented at the stockholders meeting held today, and that no objection was raised to the plan proposed.
 The thanks of all parties interested are due to the superintendent of banks for the prompt consideration which he has given all proposals and for his conserva-- tive action in proceeding with the liqui- dation.
 "The committee on reorganization con sists of the following: McLane Tilton, Jr., w. N. Malone. w. M. Drennen, J. l.. Yancey, w. D. Wood. T. F. Wimberly and F.. F. Enslen.
 Asked with reference to the rumor as to the personnel of the reorganization and particularly the president the com mittee authorized the statement that no conclusion had been reached and that a report to the contrary was wholly un- authorized"