Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1922-12-15
DETAILED PLAN
OF BANK MERGER
Stockholders of Two Banks Get
Outline of Proposal
Under Arrangement Said TO Be Favored
by Directors Vermont Stockholders
Will Own Five-Eightlis.

Dec. ~. each letter contained a personal
statement from President j. G. Estey,
giving the basis of the proposed merger
in so far 90 it affects Peoples bank stock
and expressing the opinion that stock
! in the consolidated bank would yield
| greater dividends than IRE now received
on Peoples bank stock.
| Stockholders also received proxies ia
vorabe to the consolidation plan made
out TO X. l.. Fits and VI. =. Maurice.
with the request that they sign the
proxies and send them back in case they
cannot attend the meeting. A favorable
vote of two-thirds OF the stock of eacL
! bank Is required to make the consolda
ton possible.
Under the merger plan, it is under
stood, Peoples bank stockholders will re
ccye one and one-half shares of stock
( in the consolidated bank for each share
they now hold. This will represent the
same book value as their present hold
ings. but the par Of the new stock is t
be $50, while the par of the People
/ stock is 500. Vermont National stock
holders, il IS said. are to be offered stocl
in the proposed bank on u share fol
share basis and i'll addition are 10 re
ceive Il cash dividend 10 reconcile tn
values in the new stocks. Cnder this
plan the present Vermont National banl
stockholders would own five-eighths ant
theN present Peoples bank stakeholder
Sentiment against the proposed mer
ger. which has been manifest since il
initial announcement, does not seem {,
ahntc as details of the plan bccom
known. Whether this feeling viii hay
any effect on the action of the stoci
holders remains to be seen. No one i
heard to question the good faith of thos
who advocate the plan, but ten bushes
men doubt its wisdom to every one wht
fnvors it.
There is little likelihood that activ
opposition will manifest itself in tn
stockholders meetings OF Dec. 20. how
ever, as it is pointed out that opponent
of the consolidation can accomplish a.
much by staying away and not maxim
out their proxies in view of the necessit
of two-thirds vote of the stock of eac
bank TO put it through.
The letter OF President Estey to tn
Peoples bank stockholders follows:
December G. 1922.
Enclosed you will find legal motto
Of special meeting Of the Stockholders o
the Peoples National Bank
The basis of the proposed conSolidl
ton with the Vermont National Ban
provides for our Stockholders rcceivin
: one and one-half shares of the consol
Q dated Bank for each share of stock of tn
Peoples Bank now owned by them.
THE stock in the new Bank whicl
0 you will receive will represent the sam
= book value as now exists for the stool
p of the Peoples Bank, which you nov
hold.
e II believe the stock in the consolidate
+ Bank will yield greater dividend return
4 han we now receive on our People
:, Bank stock. l believe that this consol
u dation is in every way for the best inter
ests of the Stockholders.
g IT. for any reason, you will NOT b
able to attend the meeting on Decembe
| Doth will rlanSn sion fhn nnolnSpf
u proxy, which authorizes your vote i
Il favor of the consolidation, and return tn
l. 'ame to me at your early convenience?
;, "lr you will be able to attend the meet
u ing. ! will greatly appreciate your so il
e Heating on the enclosed card.
n "A stamped envelope is enclosed 10
q vour use in replying Your prompt At
ton will be greatly appreciated.
: Yours very truly.
& President"
n Details of the proposed national ban
merger with reference to stockholders i
: he Vermont National bank are eN
= nlained in letters which, they receive
= Wednesday from Charles G. Staples
- ASHER. With these letters were proxie
y in the name of a. F. Schwenk and f. ]
/ Burnett authorizing n vote in favor I,
is he merger. The letters point out thu
% he Vermont bank proposes to contribut
SS21 600 to the assets of the new ban
l. and to receive 5000 shares of stock to /
exchanged for its present stock, viii
the Peoples bank would contribu
b. S492, 600 and receive 1900 shares, p
~ value $50, TO be exchanged for its 2,0l
st shares of stock The combined capita
,r surplus and undivided profits of the co
le solidated bank would amount
:, S1,313,G00.
VI The letter follows:
III h., ,b (,
so Of special meeting of the stockholde
n of the Vermont National Bank for Il
,s purpose of voting upon plan for Il
- consolidation of this bank and the Pc
le pies National Bank of Brauleboro, We
mont.
We are also enclosing herewith n COZ
Of letter forwarded to all customers
III this bank, which gives some of the re
ty sons why we believe this consolidate
III would he for the best interests of OF
SO stockholders and customers.
- If this plan becomes effective ;
NJ shareholders of the Vermont Nation
er Bank will receive one share of stock
no the consolidated bank for each share
~ stock now held by them. The Peopl
III National Bank will contribute to Il
ny assets of the new bank $492, 600 and 7
ceive 5000 shares, par value $50, of Il
stock of the new bank. The Vermo
National Bank will contribute to Il
"SSc'S VI tHc icW pHhh ?oAi,OuU ana
he ceive 5000 shares which will be @
SO changed for the 5000 shares of stock
- this bank now outstanding.
We The capital, surplus and undivid
profits of the consolidated bank will
rs follows
&c capital ....,,,,..,.,.... $ 100 on
n. Surplus .............. 5000,
-, Undivided profits ,.... 1886
iotal ............,.. Sl.313,6l
The assets of this bank remain,
-. after contributing 1921 900 to the asse
7" OF the new bank will be liauidated al