The morning call., 1893-11-04

peared in the columns of HE CALL, sets
forth that the affairs Of the bank were in
such a condition owing o the mismanage-
ment of the directors that it would be un-
safe to permit the bank to continue busi-
ness. The con- plant asked that the bank
be declared insOlvent and that its affairs
be turned over to the Bank COmmiss on-
ers appointed by the State and the con-
Germ wound up.
The answer commences by referring to
the question as to whether or not the cor
poratiOn Is or ever was a savings and loan
bank, "a distinguished from commercial
bank. THE defendants have to say that
they are informed and believe and there
fore aver that the question is one of law,
this State applies indfferently 10 either
class OF corporations: wherefore they
neither affirm nor deny in the premises"
The assertion that the Pacific Bank has
been guilty of violation of law is EN-
phatically denied In the answer. as well as
that the property or business of the bank
has been jeopardiZed by larges oaus made
on insufficient security, Except in so far
as such result has been caused by coll
ditiOns of general financial striDgency and
depression"
Following general denial of the as
sertons contained in the complaint are
various reasons given for the unfortunate
condition of the banks affairs. This
country has recently passed through and
IS now passing through financial crisis.
Banking institutions of all kinds have
been affected and have suspended and
failed in different States, and 1t is further
alleged that over 400 banks have so failed
and suspended within the year last past.
Ready money has been slow of circulation
and difficult to procure, and securities,
however intTinsically valuable and how
6nnrppIatp6
IN value during the year last past, and
have consequently been very difficult TO
turn into Money"
This financial crisis is claimed to have
affected the Pacific Bank and the defend
ants admit that the concern is insolvent.
The answer concludes by the statement
that the defendants are only too willing
that the affairs of the bank should be
wound up and the Bank missOners
take charge, and the prayer that such
judgment and decree be entered as shall
carry out the provisions of the banking
act and that the affairs Of the bank be
closed and liquidated.
Yesterday being the appointed day for
the further hearing OF arguments upon
the order to show cause all the attorneys
concerned in the case assembled In Judge
Hebbard's courtroom.
AS soon as the case was called up, how
ever, a continuance was asked by eX-
Judge Cotton, representing the Attorney
General, on the ground that the answer
of the defendants had only just been filed
and the plaintiffs desired time to read the
answer before proceeding further in the
matter. Judge Hebbard on this account
ordered a continuance until after the noon
recess.
When curt reconvened Judge Hebbard
addressed the assembled attorneys and in
terested parties and said that he had IN
10 rs 1nax - l.
filed in the case, one presented Oh behalf
OF the bank directors and the other on be-
half of the plaintiffs.
'The form of the decree presented by
either party, gentlemen" said the Judge,
sis in the main essential. That presented
by the plaintiff differs slightly in some de-
tails. but on the whole the DEGREES are
much the same. l shall consider both
forms of decree. and eventually frame
decree from them which will be signed
and filed. Anyway, our first object is ac-
plished, and the main points of the
complaint in this case have been absolutely
proven by the confession Of the defendants
contained in the answer filed to-day, and
the bank will be adjudged insolvent: and
1t being considered unsafe in view of these
matters TO permit the bank directors to
carry on the business of the bank, an in
junction will therefore issue.
THE decree will be filed as soon as NAV
be, and then the Bank CGmmss ssioners will.
in accordance with the recent decision of
the Supreme Court, demand of General
Wiley all the property anG assets re-
celved by him as temporary receiver. Gen
eral Wiley will then present the report of
his stewardship, his account will be
settled. and he will receive his discharge
and his bondsmen will be released.
This corporation is now in the hands of
the court. the Bank Commissioners and
others. There may be some difference of
opinion among attorneys on various mat
ters, and l am willing to hear any now
present as to theirs"
Ex-Judge Cotton asked that findings he
waived and this was agreed to by 2. T.
Dunno. representing the bank directors.
Judge Hebbard then said that according
to his Interpretation of the statute the
commissioners would act as receivers under
the supervision of the court. 1t would he
fa a l...l