The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-04-01
THESANINGS BANK CASE
DECISION or THE CIRCUIT COURT
RECEIVERS APPOINTED

DECISION or THE CIRCUIT COURT
RECEIVERS APPOINTED
An Advisory Committee or FIVE Oraerso'
Judge Billings yesterday rendered the ~
lowing decision In the caae OF jos. Iarodue
ut als, W. the f.ew Orleans Savings lnsp'sh
ton. praying for the appointment oi ~
ceiver: ,,.-s-..-.,
trhia eauae came before me upon the appli
catian for the appointment o. q receiver. the
hearing having been heard upon III u''' ""'
anaver various anjdavita and exnlbNs.
rnrot,gn arranjged under the laws ~ tba
Atata af Lou siana, having power 10 hold real
aatata. to receive Dir deposit from al persons
Sims Of money from 81 upwards; % lhvssg
the same that te Sums 80 aepotsl'Gha I. stah
l,shed NV The said institution; that the com
niainants are depositors with the said de-
fandant: that Tn the frat day ~ March, 1879,
The said corporation ssPsnda, s aggmaeh, ~ ~
The depositors. including complainal,ts, more
than Ii per cent of their deposits: that they
have demanded payment Of their dspostts.
which payment has been refused, that the
said board Of trustees h reduced below the
number which by statute have the power To
nrt. that Ia tn say, that there are but seven,
that the eaid defendants' institution is insolv-
eYlt: that two causes are at WORK Wtaon Te-
quire the Immediate incorporation on Lhls
irregtlarlty In tho payment OF the creditors
Fitsl. that the debtors Uf the bank are ptlf-
chasing up the claims Of the depostors r. ~
per cent, with the view 81 otlsettlng them
against the debts they owe 20 the Defendant,
and secondly. that divers uf the deposltors
have commenced suits ard will commence
quits against the defendant. upon which they
will speedily obtain Judgments, II being I'm.
possible. 70 inRrpose any valaa aele1se az az.
obtained leyies will be made, aud the persons
DO obtaining judgment will receive. payment
I'm full, which will prevent an equal distribu-
tion of the assets of defendant amongst its
creditors.
The answer Of the defendant does not deny
any III these material faeta--that 10 10 say,
neither the Insolvency nor the suspension Of
the defendant, nor the inequality which 10
being effected by the purchasing Up OF the
books OF the bank. and the obtaining OF the
Judgments
make case where II 10 the duty Of the court
to interfere and appoint q receiver does not
admit of doubt. Indeed this WAS contested
upon the argument. for no way was suggested
by which the court could prevent the unequal
distribution uf the assets OF the defendant
among its creditors except by tho appoint
ment Of D receiver.
Tho only question then to DO decided Ia
whether the court shall appointa receiver from
the former board Of trustees or outside of
that board. ] think that justice TO the depos-
ituFs and to tho tr,istees requires that the re-
ceivers should be selected outside of their
number
ii Ia to be observed that the bill makes no
imputation against the ability or fairness Of
the trustees. the only ground 81 complaint
sggesedh In the OIL belnE ge hns aaey
necessary to make a legal quorum; but
think the reasoning Of Chancellor Walworth
In the case Of the Attorney General vs. the
Bank Of Columbia first of Paizes Chancery
Reports, pages Gig, 5l7 ana Dis, is conclusive
upon that subject.
/ have not overlooked the resolution Of the
assemblaRe Of depositors to the effect that
they did not desire o receiver, but the petition
presented BY the counsel for complainant has
led me to see that ] ought not 70 view the
resolution of the depositor5 assembled ut
Grunewald Hall as anything more than
suggestion to the court OF those who were rs
sembled, and not rs the deliberate wish 81 o..
and the question IL left to the court, what is
the best for these depostorsp never ap-
preached a question the decision upon which
/ could more willingly Decline nor could any
question In O civil suit make me feel more
keeniy my responsibility. The depositors IN
this Institution number $500. They are for
the m st part depositors In small amounts
and are among the poor and really needy,
The deposits are the results Of their hard
earnings and self-denials, continued In many
cases 1Of years, anu Deeu Huu uhttuS w psus
vide for old age or to supply the wants OF
those whom they loved, and who were de-
pendent upon them. 1t might almost be said
that the fire upon COCO hearths had been put
out by the failure 0f this institution.
considering all this It seems to me that !
ran do nothing but select for the recetversh1p
those In whose ability and probty the &C.
positors will have implicit confidence, 10 re-
nuire the amplest security from them ana 10
make such suggestions US will place the de-
o,saitors at all times, In proper manner, III
Communication with the court.
il is therefore prGhred that jos. IL. QBiespy
and William y, Black be appointed recelvr,s
of the New Orleans Saving Institution, Win WIZ.
the ordinary powers Of receivers, upon lnel,
giving bond, each Of them, IN the sum OF
500 900, with ample sureties, the bonds W 20
approved beforeJ. w. Gurley, ESQ, master;
IL Is further ordered that the depositors be
allowed to select from their own number an
advisory committee OF five persons,. who
shall be at liberty at all times by petition TO
make any suggestions to the court which
they may deem the interests Of the deposl-
tors may require.
IL may be unnecessary, but think 1t wise
for me here to state that the compensation
which will be allowed to the receivers Will 90
the compensation that can be considered ade-
0uate; that the advisory committee will be
allowed no compensation. And the receivers
are hereby instructed that they must incur
no considerable expense without the SANCTION
of the court,