The Birmingham age-herald., 1916-01-29
ALL NIGHT SESSION OF
 BOARD ON THURSDAY
First Dividends to Depos- itOrs Will Be Made Soon. Recent Sale of Big Block of Stock Had Its Effect on Situation

Inability of the directors of the Jef- ferson County bank to agree on mat ters of policy, together with lack of harmony among members of the which resulted in the failure of the in stitutiOn to open it's doors yesterday morning.
 This was the explanation of the situa- tion made yesterday afternoon by Alex E. Walker, superintendent of the state banking department, who is in charge of the affairs of the bank
 News of conditions which existed among the officials of the bank became circu- lated around the city, causing a lack of confidence to develop. Rumors became rife, withdrawals of considerable sums in deposits increased, and after an all-night session of the officers and directors of the bank Thursday night, attended by members of the state banking board and prominent Birmingham bankers. it was decided to ask the state banking depart ment to take over the affairs of the insti- tuition.
 WILL BE PAID IN FULL
 All the depositors of the bank will be paid in full as will the other liabilities Of the institution, according to announce ment yesterday. It is also stated that there will probably be a considerable sum left to divide among the stockholders, but no intimation was made as to what per centage of the par value of the stock this would be.
 Superintendent Walker of the state banking department who is in charge of the affairs, stated yesterday that it was highly improbable that any plan of reor- ganization would be submitted. He also intimated that he would not be inclined to look with favor upon any plan which sought to reopen the bank.
 Mir Walker stated that he had not yet considered the matter of appointing an agent to liquidate the banks affairs At the present time he said he was compil- ing data as to the condition of the insti- tuition, l.. l.. Gellerstedt, state bank ex- aminer, being engaged in this work
 WILL PAY DIVIDENDS
 Payments to the depositors will be in the form of dividends. MT. Walker states that he proposes to make a payment just as soon as he can get together part of the resources, and it will be his plan to make these payments from time to time until all the depoSitOrs are paid in full. Contrary to reports circulated yesterday the savings depostors will not share in the dividends until all the checking de- positors and time certificate depositors have been paid in full. A bill was passed a session nf fba ic1o ot,1rr viding for the submission of a constitu- tional amendment which would place all depositorS oN terms of equality, but this has not yet been submitted to the voters
 Until full audit of the banks condi- tion could be made Superintendent Wal ker stated that he could not say just how soon depositors would be paid, but he seemed to be confident that the depos- itors would get their money in full. As to whether the stockholders can hope for much, he made no statement.
 SURPRISE TO WALKER
 "The news of the situation facing the officers and directors of the Jefferson County bank was a complete surprise to me-, said Mir. Walker T did not come to Birmingham to look into this matter but happened to be in the city to do some work connected with the liquidation of the Alabama Penny Savings bank Hdu eNpeCleu to leave TOT florence this morning, but l was called by Mr. Craw- ford, member of the state banking board, and MT. Jackson, president of the Jeffer- son County bank, last night to attend meeting of the officers of that institu- tion and the bankers of the city.
 ''The state banking department had nothing to do with closing this bank The last time it was investigated by our department, some 60 days ago, the affairs of the institution were found to be in a satisfactory condition. An effort was made last night to get the other Birmingham banks to guarantee the deposits of the Jefferson County bank, but it was finally found that the amount which would be needed would be greater than the other banks felt they could justifiably put up.
 Early this morning I was called again to the bank and presented with copy of resolution passed by the directors asking me, as superintend- ent of the state banking department, to take charge of the affairs of the sbank and liquidate. Under the laws creating our department, l. of course. (COntinued on Page Seven)