Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-04
BATTLE OF THE BANK.
The DepositOrs Will Fight
for a Receiyership.
ARGUED BEFORE COURT.
The Directors Cling Tenaciously to
Mr.. McKelVey.
JUDGE STOWE APPEARS DUBIOUS.

The depositors' committee, with the full
consent of the depositors of the Lawrence
Bank, are strongly in favor of selecting the
Fidelity Title and Trust Company TO the
position of receiver of the bank. Some of
the directors OF the bank are also in favor of
a receiver, but they object to the choice OF
the depositors' committee. but they will
support and agree to change Mr.. Nickel
vey's position from that of assignee to
receiver. Mr.. Willis McCook, attorney for
Mr.. William Young, president of the de-
funct bank, said yesterday afternoon:
"a receiver will not be appointed to wind
up the affairs of the Lawrence Bank, unless
all the directors are agreed upon the choice
of a man. The probabilities are, however,
that Mr.. McKelvey will be appointed to the
position OF receiver: HIS acceptation OF the
receivershIp should meet with general ap-
probation"
WILL STICK TO THEIR CHOICE.
The evident reluctance of Judge Stowe to
consider the application for receivership
created some uneasiness in the minds of de-
positors. A good deal of murmuring was
heard in the Fifteenth and Sixteenth
wards, and depositors are determined to
in Senator Upperman's Office about 80 de-
Dositors held an informal meeting to talk
over the situation. Among the gentlemen
present were DR.. Clark, VIM. Eichenlaub,
James Upperman, VIM. Williams. The
Senator was the spokesman. He said:
If our application for receiver is refused
by Judge Stowe we will push the matter until
we oust Mr. McKelvey. We have no personal
animus against the assignee. neither do we
think that he ought to be removed because OF
inability but being stockholder the depoSl-
tors saw thar his retention in the position is re-
pugnant to them, and consequently he should be
relieved from the duty and obligation OF wind
ing up the affairs of the bank. The TACT OF
Mr.. McKelvey being stockholder should dis
qualify him from holding the Office without
any legal argument and we anticipate that our
petition will be granted on this ground alone.
But then it is useless to conjecture what Judge
Stowe will do. 1t is quite probable that he
will refuse the application. In the case Of re-
fusaI we will take the matter into higher
court.
THE CHOICE OF RECEIVER.
sSThe depusitors have set their heart on the
Fidelity Title and Trust Company winding up
the bank They are certain if the affairs are
given into their hands they will be quickly set
tied. The company have every appliance for
tackling such an intricate piece of business.
We choose them because they are reliable,
they have good bank there are good lawyers
.sThe Fidelity Company will wind the affairs
of the bank at less expense than any single re-
ceIver, and the cheaper we can get the business
wound up. the more money Will be to distribute
among depositors."
Mr.. Eichenlaub and Dr. Clark expressed
similar views to those of Senator Upperman.
They desired Mr.. MeKelvey's removal
wholly on the ground of his being stock
holder in the bank.
PROCEEDINGS IN COURT.
The application for the appointment of
receiver for the Lawrence Bank was made
before Judge Stowe yesterday afternoon
at 8 O'Clock. George c. Wilson, ESQ.,, filed
a bill in equity in open court In the bill
Auditor General Thomas McCamant 10
plaintiff, and the Lawrence Bank, w. W.
Young, president; John HoerT, cashier, and
W. u. McKelvey, assignee, defendants.
Mr.. Wilson read the bill, which first recites
the failure of the bank, and its insolvency,
and the closing of the doors, and the selec-
tion of an assignee. The assignee, Mr.. Nc
Kelvey, is Objectionable to the greater por-
ton of the depositors and creditors of the
bank, and they desire his removal and the
appointment of receiver. No reasons for
the objections to Mr.. McKelvey are given.
The bank, it is stated, was incorporated
under the act OF May 13, 1876. Under Its
provisions it is claimed, when bank char
tered under it becomes insolvent it is the
duty of the Auditor General, when he shall
become satisfied that it has suspended pay
ment of its liabilities, to apply to the Court
of Common Pleas of the proper county for
the appointment of a receiver. Prelimin-
aries are provided for in order to satisfy the
Auditor General that the bank really has
suspended payment. They are that, upon
the refusal OF the bank to pay its liabilities
Tor period of ten days after they are due
the holders of the paper are to make a writ
ten demand for payment. If this is refused
on account of q want Of funds they shall file
a notice with the Auditor General to the
effect that the bank has committed an act of
insolvency. He shall notify the bank, and
at the end of 80 days a special agent is to be
appointed by him.
TECHNICAL NECESSITIES.
He shall inquire into the affairs of the
bank and report to the Auditor General,
who, when satisfied of the insolvency, shall
apply to the court for 9 receiver. It was
maintained that these preliminaries are
merely to satisfy the Auditor General as to
the insolvency; they are unnecessary in this
case, the insolvency being undisputed, and
therefore they ask for the removal of the
assignee and the appointment of receiver
When Mr. Wilson had read the act of As
sembly and the bill, Willis F. McCook,
ESQ, replied on behalf of the bank He
said that as the whole bill was based on the
act of May 13 1876, it was unnecessary to
90 farther. The conditions in the act of
prefacing the application for the appoint
ment of receiver had not been complied
with, and, Therefore, they had no authority to
come into court. 1t must be shown that the
bank is actually insolvent before the Audi
tor General cau art and fherefore in this
case the Court has no power to proceed.
ME Wilson contended that those prelim-
inaries were merely intended to satisfy the
Attorney General of the insolvency of the
bank. In this case the doors were closed, q
notice posted up and an assignment made,
and the fact of insolvency not disputed, and
the Auditor General had the right to pro-
ceed.
JUDGE STOWE DUBIOUS.
Judge Stowe betrayed evident impatience
with the arguments sdduced; and when Mr.
Wilson had finished he remarked that he
had not been able to see any real need tor
the plan of procedure asked for by the de-
positors. In his opinion an assignee was
Just as much subject to The control of the
court as a receiver would be, and was Just
as liable to be exact in winding up the af- |
fairs Of the bank. He also thought that
the Auditor General must comply with the
exactions of the act.
Mr.. Wilson said that the course in ques-
ton was adopted to satisfy the Auditor Gen.
eral and do away with delay.
The Court said in his opinion that the act
meant Tin every case" He took the papers,
but said there existed a stumbling block in
his mind. He promised decision by TO-
morrow (Thursdsy).