The New York herald., 1879-07-12
THE STUYvESANT BANK.

vExED SUIT ENDED AND THE QUESTION OF
RECEIvERsHIP sETTLED-EvILs OF PRO-
TRACTED CONTESTS IN THE COURTS.
By a recent decision in the United States Circuit
Court Mr.. John H. Platt confirmed as assignee
in bankruptcy of the defunct Stuyvesant Bank. The
has been in litigation since the bank failed,
years. and during that time the creditors
have not received cent OF the deposits committed
to the bank. Mr.. Platt now promises that meeting
of creditors will soon be held and the remaining
sets will be distributed. they having been already
converted into cash. This delay is very dscouraging
to the poorer creditors and they have become clam.
orous to know its cause. The following letter re-
Gently received illustrates their feeling
To THE EDITOR OF THE HERALD
Will you be kind enough to inform the members
Of the Cooperative Building Lot Association Of Poor
Men upward of one hundred who deposited their
moneys in the Stuyvesant Bank amounting to So 900
and upwardl why they have never heard of any div
idends being made. and oblige SUFFERER?
Mr.. John II. Platt. Of No. 40 Wall street. the
assignee of the Stuyvesant Bank said yesterday
he did not know of any such association as that
mentioned in the letter. He went on to inform the
reporter that final decree had been entered settling
the question of the recevership OF the bank in his
favor. md that, the funds had already been con-
verted into cash. he would call meeting of the
creditors to distribute the assets. He could not
state how much there was left what the dividend
would be. 20
The Stuyyesant Bank. which formerly did busi-
the of Broadway and Astor place, sus-
pended business on Thursday. October II, 1871. 1t
was state bank ana was not admitted to the Clear
ing House, the Merchants and Manufacturcrs' Bank
doing all their Clearing House business for them.
The bank redeemed the checks OF the Stuyvesant
until they became suspicious that it owed more
money than 1t could pay. when they suddenly
stopped this arrangement and such stoppage
followed by the failure of the bank the day Mr.
y H. p Archer appointed receiver by the Si.
preme Court of this State and ut began winding
up the affairs of the bank, taking thoir coaterls
and converting them into cash. His appointment
did not suit some OF the depositors, and Mr.. John
Mack. one OF the creditors, entered suit the
United states District Court for the appointment of
Mr.. John Ii. PlAtt assignee in bankruptcy on De-
cember 2S. 1871 As the bank had prior this date
been dissolved and receiver appointed by the State
Supreme Court before the day this proceed
ing no appearance was put in and the matter went
by default. perplexng question OF law thus
raised between the state and United States
courts. On March 10. 1872. Judge Blatchiord
decided that the bankruptcy proceedings superseded
the appointment OF State receiverships and con-
hrmed AIr. Platt Az appeal wa taken and the
has been dragging its slow length along the calen-
dars of tho United states Courts until q few weeks
ago, when the decision rendered alio wing Mr..
Piatt to proceed with the winding up OF the banks
affairs. In 1872 there was apparent balance of
$lG0. 100 ~ ia the bank and $iGx - cash ON the
hands OF MIR. Archer. How much 10 lett after the
expenses of the long suit paid and bad debts
deducted Mr.. Platt could not say The creditors
will no doubt be agrecably surprised to get any
thing. Time may show how much it will be.