Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1854-11-16
cARROLros. Kr., Nov. /. 1854.

/ CARRoITos, Kr., Nov. /, 1854.
IMPORTANT Decision IN Rxa,nD -
: TIE KENTUCKY TR1sr CoxpAxr BAxx
The Chancellor of the Circuit Cour,
Kenton county. Kentucky, heard mo.
ton in this village. to-day. requesting
the appointment of Commissioners tC
close up the business of the Kentucky
Trust Company Bank. The Hon
James Pryor, Circuit Judge, presided
alone.
1t will be recollected that immediate
ly after the failure of the Trust Com
psny the Board of Directors made al
assignment of all its effects to assignees
giving them full power TO close up lh,
institution, for the benefit of its creditor
and stockholders.
The charter provided how this should
have been done, which was not by an
assignment of the Directory, but apply
ing to Court to appoint Commissioners.
The assignees made answer to the
motion of Mr. Menzies, that they were
not consulted when the assignment was
made to them, and knew nothing of il
until after the Board made it to them.
and now decline to accept our act under
1t. There was petition from large
number of persons interested in the
notes and paid up stock of the Bank. re-
questing the court to appoint for Com
miSsioners the same persons whom the
directors had made assignees. who were
the Hon. Judge Kinkead and Samuel J 4.
Walker, Esq. This was objected to by
Mr.. Menzies, and advocated by Judge
Porter, attorney, of Covington.
After hearing argument, the court
decided that on mature deliberation it
had determined to make three commits
sioners. That there were objections to
having one commissioner for so impor-
tant trust.
The court held that there were OBJ
jections to two commisSioners-that they
might not agree, &c. The court an
nounced its determination to make three
commissioners.
The court held-That it would not
appoint both of the persons whom the
directory had made assignees, because
the conduct of the directory and all the
officers of the bank should undergo a
full investigation by these commission
ers; and though the court had full con-
fidence in both the Hon. Judge Kin
kead and Samuel J. Walker, vet it
might become the duty of the commits
sioners to prosecute the very officers
who made them assignees. The court
then made the Hon. Judge Kinkead one
of the commissioners, and Mr.. Hinnell.
master in chancery in Covington, anoth-
er, and requesting the parties to agree
on a third-who, after consultation.
suggested Mr.. Winston, of Covington,
who was appointed. None of these
persons have ever been connected with
the organization or management of the
bank. The court ordered the commits
sioners to give bond and security in the
sum of one hundred and fifty thousand
dollars. The question was raised as to
the right of the commissioners TO take
the notes of the bank, and the powers
of the commissioners generally.
The court said that it had not made
up its mind as to the ability of the bill
holders who held the notes of the bank
before its failure, to offset such notes
against the bills they owed in bank.
That question was reversed.
The court held, however, that those
who had got possession Of the notes af-
ter the failure of the bank could not
pay their debts TO the bank with such
Kentucky Trust Co. notes. because the
charter Of the bank requires that all
the creditors Of the bank shall be paid
pro rata.
The effect Of this order is to make
the debtors of the bank pay their debts
in gold and silver, and not in the depre-
ciated paper of the bank.