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DEPOSITORS OF FARMERS BANK HOLD MEETING ded all of the cash on hand, which has been collected by the Receiver from the assets, the proceeds of a $100,000.00 loan to be asked from the Reconstruction Finance Corporation, and sufficient of the acceptable assets of the Farmers National Bank and of the Taylor ville National Bank to justify the new bank in the assumption and payment in cash on the day the new bank opens of 50 per cent of the unsecured liabilities of the Farmers National Bank. This will necessitate the waiving of 50 per cent of the claims of the unsecured creditors, at this time.
"The loan to be obtained from the Reconstruction Finance Corporation will be secured by pledge of the remaining. so-called. slow assets of which there will be approximately $570,000.00. These assets will be turned over to a Board of Trustees for liquidation, they to serve without compensation. The first $100,000.00 collected from the $570,000.00 will be used to repay the loan. It draws interest at the rate of 5 per cent Der annum. The remaining collections from the $570,000.00 less the clerical and incidental expenses. which should not be in a large amount. will he prorated among the unsecured creditors. In order for this plan to become ffoctive it will have to be ap"round by 75 per cent of the creditors. in amount. and also hv 66 2-3 cent of the stockholders. Mr. Martin further explained took nn active part in civic and community affairs. He served overseas in the World War. was a member of the Catholic church and also a member of the Hurst Masonie lodge. He served as vice president of Hurst Bush mine locals No. 2555. and 2418 He later worked at Orient No 1. where he vice president of Local No 303 and also Recording secretary. him in death in 1913 from injuries received in the Bush mine. He came to this city from Orient about 3 months ago to join his brother, Anthony. He has made his home with Mr. and Mrs. D. L. Green, 1107 East Franklin street. and his brother since coming to He is survived by one sister. Mrs. Mayine Moore of St Louis. Mo., and two brothers. Anthony this city, and Sylvester of St. Louis.
The body was removed to the J. R. Masterson funeral parlors, and will later be removed to the D. L. Green residence until the time of the funeral. Arrangements for the funeral are incomplete. ACCIDENTAL DEATH Coroner Gilbert Nolan conducted an inquest into the death, at 2:30 o'clock this afternoon, at his office in the court house. A verdict of accidental death was returned by the jury, which was composed of James Jacobs, foreman; James Hutchison, clerk; Ralph Kelly, Harry Grassell, Truman Storm and Robert Spillman. that under the plan to reorganize the bank all the stockholders of the closed bank who took stock in the new bank would be relieved of their stockholders assessment in the closed bank and those having deposits in the bank and desiring to buy stock in the new bank would be given stock to the full amount of their deposit. Mr. Martin then stated that the department had promised the depositors committee that by virtue of a more liberal program of revaluations they would approve a plan to liquidate the bank by loaning the bank a sufficient amount to enable a 42 per cent dividend payment at once, take over the postal savings account. sell a sufficient amount of the free honds to make up for the de ficiency in the postal savings so curity and leave the balance of the assets of the bank and the stock bolders assessment to be liquidated and paid to the depositors. Upon questioning. Mr. Martin stated that he had no reason to doubt but that the stockholders of Tavlorville National bank will be required to pay the stock assess. ment upon their liability to th Farmers National bank. who took over the assets of the Taylorville National bank some time ago. He said the stockholders of both banks would be liable to the amount of $250,000 but he would not suggest an opinion as to how much of this amount could be collected for the depositors under present conditions. He said the stockholders com mittee had agreed to raise $75,000 in the event of the new bank and that other than that he does not know what may be their ability to pay their assessment. Sam Baughman then arose to state that in his opinion the ex pense of liquidating bank worked to the detriment of the small depositor and that the larger deposifor received an advantage. Therefore. he favored the plans to reopen the bank rather than fac the expense of receirvership. Bentley immediately arose to answer the assertion of Baughman by asking the bank receiver if there was any discrimination shown between the large and small depositors in the liquidation of closed National banks. Mr. Mar tin replied that there is no differ ence as cach receives their pro rate part of any dividends to the Baughman then arose and indi cated that the larger depositor were taking the most active part in the plan to liquidate the hank consulting the smaller without depositors.
Sam Bentley, chairman of the depositors committee was then called upon to state the argument or of the liquidation nian He began by stating that he did not care to enter into personalities but felt that the depositors should not be called upon to play Santa Claus" to the directors of the bank in making them a donation of at least a 15 per cent of the deposits that he believed would be available under the plan of liquidation. great values. He stated that the liquid assets of the bank that the new bank proposed to take over would almost pay the full amount of the loan the government proposes to make to insure the 42 per cent dividend. He also stated that if the stockholders could raise $75, 000 for stock in a new bank that they could at least raise that amount in the payment of their stock assessment which would insure the depositors at least another 10 per cent dividend in addition to their 42 per cent promisod at once. He said he favored the liquidation plan also because the new bank proposes to absolve themselves from any responsibility in the liquidation of the remaining $570,000 assets of the bank set up to secure the RFC loan by turning it over to three trustees to liquidate without pay and the expenses of law suits and other matters would still have to be borne by the depositors who had waived the 50 per cent of their deposits. Carrie Meacham spoke in behalf of the reorganization of the bank and stated in the beginning that he held 40 shares of stock in the losed bank and was also a depositor to the extent of more than $5,000.
She said she was for Taylorville and believed the reopening of the bank would be of great benefit to the community. She stated that in the beginning depositors committee was heartily in favor of the reopening the bank but then claimed the tockholders were not cooperating with them in any way. She said he then formed a stockholders committee and personally worked with them in an effort to devise a dan that would be agreeable to the depositors committee.
Problems She accused Bentley and other members of the depositors com- Solved mittee with trying to push over he liquidation plan by misreprecenting facts to the depositors beare they had an opportunity to "plain the full details of the plan for the new bank. She stated that h. did not believe it would be fair Problem Solved hold the people who signed the octition for liquidation to their ignature when they had not been properly advised. Bentley immeliately arose to state that he could be glad to have anyon **hdraw their names from the setition if they did not under+and or if they have even changed their minds after the meeting. The verbal battle started in true fashion when Attorney J. A. Merry stated that he did money can't buy. not think anyone should stand up and attempt to tell people how such they would get under either alan when they did not know. He thid to speculate upon the results if either plan was like "blue sky" manipulations and anyone who would go out and push over the innidation plan with the speed the committee is pushing this showing forth too much zeal for the good of anyone". "We are looking after retrieve ment", he said, "of our hard earned money that has been taken from us through mismanaged corporations. Let us not be too hasty to put our signatures to a document of this kind. Hasty signatures has been the ruination of this community already"
Sam Bentley then replied to Attorney Merry by saying: 'Since Mr. Merry professes to know more than anyone else". You're a damn liar" retorted Merry, "I did not say that' Bentley then stated that both the receiver of the bank and Mr. Smith of the Comptroller's office had stated to the depositors committee that the liquidation plan would secure more for the depositors. "I understand Bentley then said That Mr. Merry was a stock holder in the closed Tayloryille bank and refused to pay his assessment. I wonder if he can ex plain that Your a damn liar" atrain retorted Merry, "and if I did that is none of your business' Some of those who did pay their assessment have expressed to me that they are sorry they did". Just as soon as this wordy tir- ade had subsided a sufficient amount, Mrs. Meacham arose and made a motion that the meeting go on record favoring the organizatien of a new bank. Bentley arose to the point of order by stati that a great majority of the depositors were not present and the meeting could not endors any plan.
Mr. Martin, the receiver, then stated that he had been intormed that more than the required 26 per cent had signed up for the liquidation plan and since it required at least 75 per cent to make the waiver plan effective what would be the use of the vote at this time. Soon shouts were heard from both sides all over the hous and some one then made a motion to adjourn. Chairman Yockey re fused to entertain the motion to adjourn. but most of the crowd began filing out of the room.
After at least half of the crowd JACK PEARL had left the room Chairman JIMMY Yockey succeeded in restoring order among the group favorable to the new bank plan and proceeded URANTE to put the motion of Mrs. Meacham's made before the crowd went out of the room and the motion earried by an almost unani-
