The morning call., 1893-12-04
The Attorney - General
Not Informed
ON THE PEOPLES BANK.
He Expects to Begin His Search
Tuesday.
BELIEVES THE BANK SOLVENT.
A Rumor Which Was Based on
Antiquated Law Calls Out
Reply.

Attorney-General Hart expects to begin
an inves tigation of the Peoples Home
Savings Bank tomorrow. That 10, pro-
vided ha receives report from the Bank
Commissioners on the banks condition.
Up TO last night he had received no de-
tails nor statement, nor report of any kind
from the State Bank Commissioners. Yet
a foolish rumor was started to the effect
that such document had been presented
to the Attorney General On Saturday. And
1t was further stated that this report was
made in accordance with section IL of the
act creating a Board of Bank Commits
sioners, and prescribing their duties aud
peculiar part of the business is that this
section was amended in 1887, so that is is
now altogether another law.
Regarding this matter Frank NJ. Stone,
who was elected last week as counsel for
the bank, gave his views yesterday.
Il have endeavsred with all due dill
gence possible" said he. within the limit
of time TO examine affairs. and find that
the assets of the bank. based upon values
placed upon such assets by the Bank Com
missioners. show that the assets exceed
the liabilities. When the Bank Commits
sioners report 1t unsafe for the bank to
continue business. l have this to say:
There are generally speaking $4,000 de-
positors, and roughly estimating liabili-
ties are in the vicinity of $1,000, 900.
From the best information l can gain as to
values placed on assets by the Bank Com
mlssloners. the assets exceed liabilities
Such being the case, without in any man.
ner desiring to assert myself as having the
right or ability to treat financial matters.
/ am free to state that a bank l do not
believe there is in this city. excepting two
savings banks. that can make as good a
showing as the Peoples Home Bank"
With regard to the rumor previously
men toned he said: Il have this to sug-
gest-it was based on a misapprehensio
Of the law as | understand the law as ap-
piled to Bank Commissioners. Such law
was amended in 1887. which materially
changes the act as follows:
''If such Commissioners one Examination of the
affairs OF any corporation mentioned in this
act shall find that any such corporation has
been guilty of violating its charter or law, or
the provisions of this act or is conducting bil al.
ness In an unsafe manner, they shall by an
order addressed to the corporation so offend
ing, direct discODtinuance OF such Illegal and
unsafe practices, and a conformity with The
requirements of its charter and of law under
this act; and II such corporation shall refuse
or neglect to comply with such order, or when
ever IL shall appear TO such Commits
sioners that Ii is unsafe for any such
corporation as In this act mentioned 10
continue TO transact business, they shall no.
lily the AIIOruey-O6Qeral OF The TACT. who.
after examination, in his discretion may COM
mence suit In the proper court ag inst such
corporation TO enjoin and rohibit the transac-
tion OF any further business by such corpora
ton: and upon the hearing Of the case, II the
Judge OF the court where the case is tried shall
be OF the opinion that 1t is unsafe for the par
ties iDteres ed, or for such corporation to con-
tinue TO transact business, and that such cor.
porati0n or institution Is insOlvent. he shall
issue the Injunction applied for by the Com.
mssioners and Attorney. General who shall
cause said injunction 10 be served accordi ng TO
Commissioners to take such proceedings against
its creditors.
''As / understand the position of the
Attorney-General he intends TO stand by
depositors and maintain their rights at all
hazards, and it is his purpose to thoroughly
investigate the assets. in which investga-
tion l shall most cordially join. and In
any action Of bis looking to the advance
ment of such interests | shall most cor
daily coincide with him."
The Attorney General said he had re-
ceiyed NO detailed statement or reports
81 always had the idea that the bank was
sound" said he. when the commission
examined it last August there was a sur
plus of 100000, and am of the opinion
there Is still a surplus. II / receive re-
port tomorrow l will begin an irvestga-
tion on Tuesday and make an order at
my own discretion upon the future man
agement of the bank"