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STATE AUDITOR MAPS LOCAL MERGER PLAN FARMERS STATE TO TAKE OVER PEOPLES BANK, IF REFINANCED STCOWHOLDERS OF PEOPLES BANK ASKED TO PAY ASSESSMENT OF 100 PER CENT -DEPOSITORS TO GIVE WAIVERS OF 30 PER CENT STATE AUDITOR ARE COMPLIED WITH, DEPOSIT LIABILITY OF PEOPLES BANK TO BE ASSUMED BY FARMERS STATE PLAN IS BEING GENERALLY ACCCEPTED. If the ref.nancing requirements in the case of the Peoples bank, as ontlined and authorized by State Auditor Barrett's office. are fully met the depositors of the bank, with over $800,000 at stake, in all probability, will not lose one penny. If the state anditor's plan is consummated Belvidere will have but two banks. The Farmers State and the Second National, both being, it might be proper to state, in sound and liquid condition. Briefly summarized, the refinancing or reorganization set-up authorized by the special board of banking experts of the state auditor's office in Chicago, and handed to the directors' committee of the Peoples bank late Friday directed that the following steps be taken if the bank is to avoid being placed in the hands of First-That the stockholders be required to pay an assessment equal to the par value of their stock (100 per cent) which shall be used in the na ture of a guarantee fund. Second- That the depositors sign waivers for 30 per cent of their deposits for which sums waivered they shall be given deferred certificates which certificates shall be paid as the bank's slow assets are liquidated. Third When the stockhold ers. have paid or guaranteed their ments and when the depositors have signed the required waivers. then the deposit liability. together with the sound and approved assets of the Peoples bank. will be taken over by the Farmers State bank Fourth-The slow and socalled "frozen" assets of the bank to be administered by trustee for the benefit of the deferred certificates given depositors and the stockholders of the People bank. giving priority to those who pay assessments, and that a period of three years be given to carry on the liquidation by as easy and as reasonable extensions as possible for the purpose of conserving the slow assets in the greatest possible degree. Is Virtual Untimatum The plan submitted and officially authorized by State Auditor Barrett amounts to virtual ultimatum. If It is not accepted and complied with the other horn of the dilemma is to have the bank thrown into a receivership with all of the excessive burdens in the way of receiver's costs and fees, lawyers' fees, court costs and endless delays in partial payments to the depositors, not to mention the statutory requirements compelling all stockholders to pay an assessment of 100 per cent with the added expense of court costs in cases where the receiver is compelled to levy on the property of a Situation Explained to Stock. holders at Special Meeting At a special meeting of the stockholders of the Peoples bank held Saturday evening in the Chamber of Commerce rooms the situation in all of its details was explained by Judge W. C. DeWolf, chairman of the directors' committee, which was in conference with the special board of the state auditor's office in Chicago Friday. County Judge R. V. Carpenter, one of the bank's directors, acted as chairman of the meeting. Hon William L. Pierce and Frank T. Moran. members of the depositors' committee, also addressed the meeting. Directors Lead the Way In his extended remarks Judge DeWolf informed the stockholders that the directors were unanimous in giving their support to the state auditor's plan and he exhibited a paper showing that each member of the board had signed his pledge to pay his assessment in full. Before making known the terms of the ultimatum laid down by the state auditor's office. Judge emphasized the point that the not what the (Continued Page
