The herald., 1893-08-26
THE DEPOSNORS ARE DEFEATED,
Judge Shaw Gives Mr.. Stewart
the Disputed Securities.
A Somewhat Sensational Suit Com
menced.
Varied and Complicated Proceedings ON
the City Bank Affairs Yester-
day Tho Rulings OF
the Court. M

The City bank affairs were discussed
yesterday for several hours in Judge
Shaw's court, and some important
changes were made in their future man
agement.
1t was expected that there would be
decidedly warm controversies between
some of the attorneys who have taken
hand in the settling of the defunct
banks business, but the expected DID
not happen.
The tameness OF the proceedings was
very noticeable. although some impor'
tant points were settled. 1t simmered
down into dry discussion OF cold legal
Quite a number OF attorneys were
present and participated in the discus
sion for vsrious clients.
As soon as court convened Judge Snaw
announced that he was ready to near
the motion asking that securities valued
at s32. 900, which had been turned over
to George H. Stewart, and by him delivr
cred to Receiver Brodtbeck, on the
order OF the court be returned to his
Mr.. Burnett. attorney for the receiver,
read short statement to the court, In
which he said:
Mr.. BURNETT wITHDRAws.
II desire at this time, If the court
please. to state that have withdrawn
from my connection as attorney for the
receiver of the City bank, and very
briefly to state my reasons for such ac-
tion. At the time OF the failure OF the
bank /, in common with others, sup
posed it was due 10 the prevailing crisis
which caused the closing OF so many
perfectly solvent banks. With this idea
/ assisted in procuring the appointment
OF receiver. AS iH we'll known to
those conversant with equity practice, q
court OF equity always stands ready to
take charge OF fund in which many
are interested, when sufficient reason is
shown. In most cases this is done at
at the instance of tho corporation itself,
or of those in charge OF the fund.
When the fund is once in court it
is then administered, Of course,
without regard to the fact
that the corporation instigated
the proceeding. As said. l, as well as
the receiver. entered upon this pro-
ceeding with the idea that there was
sufficient property to pay at least all de-
positors in full. The officers OF the
bank have insisted that this was go,
and perhaps still so insist. When, in
the Judgment of the receiver, it ap-
peared that the bank was hopelessly Y
insolyent and that some of its leading
officers were heavily indebted to it, the
sit6ation entirely changed. 1t became
q hostile instead of q friendly proceed
ing, 80 far as the bank officials we're
concerned. In performing what con-
ceived to be my duty / incurred their
hostility, or that OF some of them. The
task OF trying to recover something
from this tangled wreck is at the best
not pleasant one, but when 1t is at
tended by criticism and abuse wholly
unjustified its performance becomes so
disagreeable that l have resolYed to
withdraw and leave it. / hope, ito. more
com petent hands. I desireithe perniis-
sion OF the court that / may withdraw
from the attorneyship!
RECEIVER BRoDrBECK RESIGNS,
Mr.. A. M. Stephens-If your honor
please, Mr.. Brodtbeck, who was appoint-
ed as receiver in this case. his attorney
having Withdrawn from the case. desires
also TO present his resignation as receiv-
er. personally regret this conjunction
of affairs, because represent stock
holder in this bank who iu interested in
seeing the assets of the bank properly
administered and honestly applied to
the satisfaction of claims. Fran ny
knowledge of the business affairs, gath
cred ina general way from the business
affairs Of the principal members of that
bank. am satisfied that Mr.. Brodtbeck
and his attorney have, with scrupulous
fidelity, acted at every step in this pro-
ceeding in the interests OF the creditors.
JUDGE SHAW REFUSES THE RESERVATIONS.
Mr.. Stephens began to refer to the
fact'of the withdrawal OF the receiver 9
attorney when Judge Shaw stopped him
and said amongst other things:
"Well, / have not yet accepted the
resignation Of either the receiver or the
attorney, and will now state l decline
to accept the resignation of either one
of them. There have been some hints
Of criticism upon the action Of these
gentlemen, all of which, am very sure,
ID without any foundation; and, ii it
were not for the fact that the dspositors
in this bank are subjects for sympathy
it would be without any excuse. But
we can all see that men who have had
faith in an institution of that kind, and
had it suddenly ruptured, as this has
been, are excusable for almost any state
ments they may make in the haste of the
moment. Ihave. had very full knowl-
edge of all the proceedings that have
been had by the receiver and by his at
torney since they were appointed, and
am very sure that the depositors are all
of them very fortunate in having their
interests in the hands they have been
in. Instead of criticiem these gentle
men should have received praise, and, If
the deposltors had taken the pains to
examine and see what has been done,
they would undoubtedly have given it.
The matter, it seems to me, is now in a
condition where the services of both Of
these gentlemen will be necessary for
awhile at Any rate, to get the matter in
shape so they can resign and turn it
over to somebody else If they see fit.
1t is possible that the estate could be
administered better by an assignee in
Insolvency. 1t may be that the law
would give the assignee some advan-
tages receiver would not have. have
not considered that matter, and that I
suppose is one thing that counsel want
to determine and consider. / suppose
that all nra opxto,,a - hova kJ,a arSn 70