The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-02-05

Hamilton Trust and Savings.
The other $25O,O0O of the contem-
plated increase Is to be pro rated
among the present stockholders of
the Hamilton National bank. All
stock is to be sold on a basis of
$l70 per share, the premium being
credited to undivided profits. This
change will give the Hamilton Ma
tional a capital Of $1,500,00 and
surplus and proft account of over
S1,OO0,O 900.
Hamilton Security Company.
According to the announcement of
Mr.. Preston, the banks will continue
lto be conducted as separate institu-
tions, just as they are now, each
transacting business at the same
place, but the stockholders of the
Hamilton National will own the stock
Of the Hamilton Trust and Savings
bank, which will be trusteed for their
benefit.
The Hamilton Securities company
is also to be organized by the board
of directors. This concern will have
an authorized capital of not less than
100000. 1t will sell and buy high
grade preferred stock and other Sc
curities, but will not do a banking
business.
When the Hamilton Securities
company is organized, which will be
shortly after April l, the combined
capital and surplus of the three
Hamilton institutions will be nearly
f3,00O,OO0
To Extend Lobby.
Extensive interior il -provementS
md the continuation of the lobby of
the present Hamilton National Bank
building to Broad street are also
planned A much larger safety de-
posit vault is to be installed, along
with many other interior improve
nents.
Meeting March 9.
The stockholders meet March 8,
and the new arrangement is to be eff
fective April 1, or as soon thereafter
as practicable.
The total resources of the two
fihanks at their last statement were
&23,400.000. This will give them
nearly $2j,OOO.OOO.
This method of tying banks to-
~ether is a custom of nearly all the
l1rEe banks throughout the country.
= The Hamilton Trust and Savings
bank was organized in 1889. The
Hamilton National bank was organ
i2ed in 1905
1t is contemplated that shortly
"fter the approval of the above plan
by the stockholders of both banks,
the capital stock of the Hamil-
ION Trust and Savings bank will be
increased to 100000, though no for
NAL action has been taken as yet. If
this is done it will be four times the
Hamilton Trust and Savings bank
has increased it's capital. the original
to1 katn-- Tho Hamilton
National has increased its capital
four times, starting originally with
S25O0OO capital. The stockholders
have been called to meet March 8
to consider same, after which the
matter of increase of capital must be
approved by the comptroller of the
currency.
Notice to Stockholders.
The following letter has been sent
to all stockholders by 7. r.. Preston,
president of the bank:
To The Stockholder of The Hamilton
National Bank.
With reference to the special meeting
10 be held March ., for the purpose of
considering the increase of our Capital
stock. One Of the main objects of this |
increase is to tie together in common |
ownership the stock of the Hamilton |
National Bank and the Hamilton Trust |
and Savings Bank
OF the contemplated increase $3.50 |
900. 90 is to be subscribed and paid |
for bv the present stockholders of the |
yHamilton Trust and Savings Bank, |
which gives them the same number OF
shares in the Hamilton National that |
they now have in the Hamilton Trust |
and Savings Bank. The other $780, !
900 90 of the contemplated increase is to |
he sold on basis of $40 per share, |
e the premium being credited to undi- /
vided profits. This gives the Hamilton /
National capital of l,500 100000 and 1
surplus and profit account of little /
more than $1,000. 100000
From the surplus and profit account /
will be taken sufficient TO pay for the 1
Hamilton Trust and Savings Bank |
stock on a basis OF $40 per share after
adjusting the difference between the /
book value of the stock OF the two banks
bv an extra dividend. This will re-
ouire approximately 40o.000.00. all Of
which Il is not necessary TO take out OF
our surplus at one time.
The bank viii continue to he con-
Quoted as separate institutions. just
as they are now. each transacting busl-
ness at the same place but the stock
holders OF the Hamilton National Will |
own the stock Of the Hamilton Trust
and Savings Bank, will be trusted
for their benefit.
II the above plan is carried out there
viii he no clnss Of banking business /
in which the two banks could not en-
r,re. They could also develop addition
al business which neither bank has de-
Velopcd 10 any extent
The directors have given careful con-
Nstderntion for sometime To this matter 4
aud they are strongly OF the opinion 4
that this would be 20 the interest Of the /
vrDlf a the ruhlfr and \
Inc rights Of every stockholder will he !