Volume 2 - ElectricCanadian.com

1901 TO 1914 211valued at $160 per share. The shareholders of the HalifaxBanking Company received $700,000, par value, of CanadianBank of Commerce stock, which at the rating justmentioned amounted to $1,120,000, and $6,000 was paidin cash, or $1,126,000 in all. Any provision for bad debtswhich The Canadian Bank of Commerce might find it necessaryto make subsequently would represent the price of the goodwill.The assets were taken over on the evening of May 30, 1903,the day on which the Governor-General in Council approvedthe agreement of purchase, and at the next annual meeting ofThe Canadian Bank of Commerce the net results of theamalgamation were announced to be as follows:Surplus of Halifax Banking Company's assets overliabilities, at purchaser's valuation $1,039,028Paid to Halifax Banking Company'sshareholders in cash $ 6,000Transferred to Pension Fund for HalifaxBanking Company's staff 40,000Credited to Capital Account for newstock issued 700,000Premium on new Canadian Bank ofCommerce746,000stock. $293,028Thus The Canadian Bank of Commerce actually receiveda premium of about forty-two per cent, on the new shares issuedto stockholders of the Halifax Banking Company, the marketvalue of itsshares at that time showing a premium of sixtyper cent. The difference of eighteen points in round figures,$126,000 would represent the payment for the goodwill. Byits entry in this manner into the Maritime Provinces thebank acquired eighteen new branches in Nova Scotia, andtwo in New Brunswick. The banking law of Canada at thattime permitted the creation of local boards of directors, andthe following members of the Board of the Halifax BankingCompany were appointed local directors at Halifax: Messrs.