The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-17
Supreme COurt-Specsai Term.
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IN THE MATTER OF THE KsIcKERBocKER BANK-N
JUNCTION AND REcEIyER--IaPoRTANr DECISION ON
BANkING AND FINANCIAL AHYAIRs.
ROOSEVELT Ut is now about three mouths accord.
ing to OF the petitions presented since this insttu
tion stopped payment. Its creditors sver-snd large
body OF its stockholders join In the svermentthat 1t
is insovent and the directors-those who manage
its aarsadmit that f the assets pass into the hands
ola receiver and disposed Of according to the sta
tute, there will be deficiency, and the creditors will
not receive all that is due them True the "nominal
amount Of the assets supposed to be about $500
while the Indebtedness is but little $500 000 But
of what avail such hguratve statements in opposi
ton 10 the substantial admission already referred
made in the afidAvitr How perfectly ''nomnal'
too, must be large portion OF that $500 600 When we
find IL alleged in the leading petition of the stockholders
themselves and not denied by the officers that $3.50
and upwards" consists OF indebtedness by the late D
reetors-and that, moreover, ON capital Of only
100000 Nor is this aithe present directors xious
they may be TO retain the control OF AFFAIRS able
as they may be TO manage them well, do not pretend
that with all the nursing they propose to bsstow-
ressona BILE indulgence to debtors Is the oppression
they will be able to realize than "some little
surplus to the stockholders The Law provides (act
OF 9th April 1S49 that upon hearing OF the parties
on such short notice as the Judge shall appoint,
he shall determine whether such corpor alton
ton be clearly solvent or otherwise and that he may
require the officers IL ereof TO exhibit any aud all Of its
books papers accounts assets and effects and to be
ference to be appoin by him. And to obvae the nice
and difficult distinctions sometimes raised to what
constitutes insolvency wheteri be absolute and
nent inability 70 pay, only immediate and mporary
Inconvenience. The Legislature have further enacted
that the Judge determine that such poration
ISOLATION sis not clearly solvent he shall make order
declaring the insolvent and shall Immediately APP
point receiver" On the facts then presented in the
papers they stand there be any doubt that this
institution, If not clearly insovent is not clearly sovent
Judged by ordinary rules, there would to be
As the pTesen, directors however, and some Of
the stockholders apprehend serious injury from q
sudden judicial declaration 10 that effect and the
quent immediate appointment OF receiver | have
concluded to make order the act provides that
list Of the and OF the stockholders with the
specve values and amounts be produced aud that the
principal officers of the and Of the late board
attend before me- Wednesday next at 10
O'clock at the chambers of the court to be examined
oath concerning the state Of the bank, and
that the appointment Of receiver be- In the MEANWHILE
suspended and the injunction continued. II IL proper
should add that the statute in these contempates
rapid and summary measures. Bllholders, deposto-s
and other bank creditors to be promptly paid And
for that purpose the assets matter what
their character If ordered by the Judge be sold
at auction, dividend IL possible declared within ninety
days. and the deficiency, If any apporoned among and
levied on the individual stockholders and the entire
winding up IL is further declared SHALL ''in case
be delayed beyond year All idea OF increasing the
assets for the benefit Of the stockholders the injury
and delay il not unfrequenty the most ruinous of all
ipjuriesto the injury say, OF the bhoders aud de-
posters is repudia.ed by the whole policy Of the act
and Is at variance with the entire spirit Of the judicial
decisions of the highest court of the State in the analo
gous cases of assignment made by insolvent individuals