[Volume XXVII
THE CHICAGO BANKER
12
The final payment will make an aggregate of $185 a share for the stockholders.
Sue Former Bank President
A. Z. Drew, former president of the St. Paul State Bank, which is now out of existence, is being sued by the Northwestern Trust Company as receiver for the bank for $1,500 and interest from May 13, 1908, as assessment of 100 per cent made on fifteen shares which Mr. Drew is said to have transferred less than a year before September 30, 1908. Mr. Drew is under sentence of two years to the penitentiary for continuing the bank when he knew it was insolvent. The case is in the supreme court.
Elected President after Thirty-five Years’ Service
W. H. Lee, for thirty-five years identified with the Hennepin County Savings Bank, and cashier for nineteen years, has been elected president to succeed the late John E. Bell. Mr. Lee became cashier after the death of Judge E. S. Jones, a founder of the bank, and since then and more lately as vice-president, has been practically manager of the bank for many years, in the prolonged absences of the president in California. David P. Jones, son of E. S. Jones, is the new vice-president. Filling of a vacancy in the directorate and the increase of the board to eight members is to be considered in the near future. W. F. McLane, the new cashier, and
GRAHAM & SONS
Bankers
Insurance & Agents
Established 1857—52 Years
Interest on Deposits — Accounts Solicited Money to Loan on Real Estate
Open Evenings — Hours 9 a. m. to 9 p. m.
134 WEST MADISON STREET, CHICAGO
share to such Trust Company stockholders as shall agree to transfer to trustees to be chosen for the benefit of the stockholders in the bank their present holdings in the Trust Company at $180 a share, which represents its liquidating value. After this increase of stock is effected a special dividend of 40 per cent on the $3,000,000 stock in the bank, or $1,200,000, will be declared. Each stockholder is asked to authorize the trustees to receive his dividend, and to reinvest for him in the stock of the Minnesota Loan & Trust Company as follows: $900,000 to be used to buy the new outstanding stock of the Trust Company at $180; $300,000 to be used to increase the stock of the Trust Company to $1,000,000 and the surplus to $100,000; so that each stockholder in the bank will own one share in the Trust Company for each three in the bank, the Trust Company stock to be held under trust agreement which each bank stockholder will sign, the interest of the bank stockholder in the Trust Company to be evidenced by the indorsement on the bank certificate.
It is the intention to continue the bank dividend at 10 per cent and the Trust Company dividend at 6 per cent, which will make the two dividends equivalent to 12 per cent. The stock in the Trust Company will be paid for by the special dividend out of the bank dividend profits’ account.
Pay Stockholders of Liquidating Bank
One hundred and sixty stockholders of the National Bank of Commerce which is now in liquidation, fifty living in Minneapolis, will have a part in the distribution of cash by the liquidating committee of which F. E. Kenaston is chairman. This cash will include $275,000 to be paid by the Northwestern National Bank for the Bank of Commerce building and money for smaller pieces of property. Although the Northwestern paid $150 a share for the Commerce stock the bank retained its corporate identity and the ownership of its building and other assets.
Details are available of the association of the Northwestern National Bank and the Minnesota Loan & Trust Company which contemplates a joint ownership of the capital stock of the two organizations by the individual stockholders of each, the two remaining separate associations, with the identical management of the past. The individual stockholders of each company will own pro rata share of the stock in the other company with the evidence of ownership on the same certificate. The Trust Company has capital of $500,000 and surplus and profits of $400,000, paying 8 per cent dividend.
The capital stock of the bank is to be increased from $2,000,000 to $3,000,000. Of this $1,000,-000 increase $600,000, or the equivalent of 30 per cent of present holdings is to be offered to present stockholders at $200 a share. The remaining $400,000 is planned for sale at $225 a
/ 5 Carloads a Minute
is the estimated amount of Pittsburgh’s mine and mill products. The financing of these immense industries gives Pittsburgh banks a large earning power. Because of its large volume of business and extensive connections, this Bank can offer attractive inducements to banks and trust companies everywhere to establish connections with it.
Correspondence Invited
OLUMBIA
NATIONAL
BANK
OF PITTSBURGH
Surplus, $1,000,000.00
Capital, $600,000.00