Hampshire; his birthplace was in Pennsylvania. He made his
_debut_ in Massachusetts, and received his professional training in
Canada; he is a citizen of the United States, and is always honored
where genius is recognized.
Like the favorite character, Joshua Whitcomb, in his favorite play, Mr.
Thompson is personally sensitive, kind-hearted, self-sacrificing; he
never speaks ill of any one, delights in doing good, and enjoys hearing
and telling a good story; he is quiet, yet full of fun; generous to a
fault. His company has become much attached to him.
In the village of Swansey is Mr. Thompson's summer home; a beautiful
mansion, surrounded by grounds where art and nature combine to please.
The hospitality of the house is proverbial, but its chief attraction is
its well-stocked library.
* * * * *
NATIONAL BANKS.
THE SURPLUS FUND AND NET PROFITS.
By George H. Wood.
In the elimination of an unusually large amount of dead assets under the
requirements of the National Bank law, previous to extension of the
corporate existence of a bank, the very interesting question is brought
to notice, of what is the proper construction of the law in regard to
reducing and restoring the surplus fund.
Does the law forbid the payment of a dividend by a National Bank when
the effect of such payment will be to reduce the surplus fund of the
bank below an amount equal to one-tenth of its net profits since its
organization as a National Bank; and if so, upon what ground? It does,
and for the following reasons. The power to declare dividends is granted
by section 5199 of the Revised Statutes of the United States in the
following language: "The Directors of any association (National Bank)
may semi-annually declare a dividend of so much of the _net
profits_ of the association as they shall judge expedient; but each
association shall, before the declaration of a dividend, carry one-tenth
of its net profits of the preceding half year to its surplus fund until
the same shall amount to twenty per cent, of its capital stock."
The question at once arises, what are the net profits from which
dividends may be declared, and do they include the surplus fund? It is
held that the net profits are the earnings left on hand after charging
off expenses, taxes and losses, if any, and carrying to surplus fund the
amount required by the law, and that the surplus fund is not to be
considered as net profits av
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