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Show First Security Makes Bid To Control Stock Of Cedar City Bank, Directors Fight Move Stockholders of the Bank of Southern Utah in Cedar City are engaged in a stock control fight which may result re-sult in the merging of the local bank with the First Security Securi-ty Corporation, intermountain banking system of Salt Lake City, or may result in a wider distribution of local ownership of the local institution. The battle over stock control began some time ago, but became a public issue only last week when officials -I of the First Soourl ! ! I I ; i- '. - I ,.-., 3 , t v. . I lK ' 1 ) 1 ROYDEN C. BRAITHWAITE I i I i I , ''V . i ., , DARYL CHASE J-w. U-tUtt, through its president, George S. Eccles, approached all stockholders stockhold-ers of the Bank of Southern Utah, with an offer to buy all stock, and with a public announcement by Ecclcs that his company is desirous of purchasing all stock available and in a sufficient amount to consolidate the local Institution with the intermountain intermoun-tain banking firm. First Security had been successful suc-cessful in acquiring considcra-ble considcra-ble holdings In the local bank through the purchase of stock from individual holders over the past several months, and recently recent-ly obtained the stock or a substantial sub-stantial portion, owned by John S. Chrlstensen, president of the Bank of Southern Utah. When this was accomplished First Security Se-curity then made Its public bid for stock and public announcement announce-ment of intentions of attempting to merge the local Institution with First Security. The remaining members of the board of directors of the Cedar City institution, Elwood Corry, Dr. F. B. Parkinson, Stanley Bradshaw, Henry L. Jones and Arnold Anderson, differed with Chrlstensen on the proposed mer-fer mer-fer and began a campaign . to oppose the First Security plan and to retain local ownership of the institution. As a result of this action both sides are campaigning cam-paigning to get stock control. If First Security is successful Bank of Southern Utah will "become "be-come a part of that institution. If the five board members mentioned men-tioned above are successful in retaining re-taining the stock in Cedar City ownership, the- bank will remain locally owned with a much wider wid-er distribution of stock holdings. First Security has made a bona-flde offer of $-15.50 per share of stock in the company on a cash purchase, or a one and one-quarter shares of stock in First Security for one share of Bank of Southern Utah stock, on an exchange basis. In opposition to tills proposal the five board members men-(Continued men-(Continued on BnrV I LOCAL DAI1K BATTLE I (Continued from Page One) tloned have established a trust fund of $100,000 with Elwood Corry as trustee, and appeal to any stockholder who desires to sell to dispose of his stock to the trust fund. The directors agree that all stock purchased will remain In the trust fund for a reasonable length of time and may be purchased by any local citizen in any amount at the price paid for such stock by the bank. This is done, the directors state, as a means of showing good faith to the citizens of Cedar Ce-dar City and surrounding area, and of assuring the people that the present stockholders are not Interested in increasing their holdings but rather In retaining the bank as a locally owned Institution. In-stitution. The directors have made a request re-quest of all stockholders to hold onto their stock if possible as a means of continuing the bank as a home owned institution. The directors also ask that each stockholder sign a proxy to this ( group as a means of facilitating, the handling of the situation. It Is reported that many stockholders stockhold-ers have already signed proxies. The Conilnental Bank and Trust Company of Salt Lake City through its vice president, Perry Per-ry Thomas, has entered the conflict, con-flict, not at a bidder for stock, but by offering financial backing, as a means of supporting independent inde-pendent banking in Utah. Mr. Thomas, In discussing the Issue here Tuesday stated 'The Conti-' nental Bank Is 100 per cent for independent banking in Utah, I and because of this belief In the commulttles of the state, we are ready to provide financial backing back-ing in the fight to retain control con-trol of the local institution." The fight is on and both sides are making every effort to accomplish ac-complish what they have set out to do, First Security to gain sufficient suf-ficient control to merge the two institutions and the local leaders lead-ers to retain control and keep the bank in the hands of local people. The next two weeks should decide what banking institution in-stitution will serve the residents of Cedar City and surrounding territory. |