The herald., 1893-07-30
THE MESS AT THE CITY BANK,
The Depositors Making Efforts
to Get Their Money.
The Creditors of the Bank Are Justly
Becoming Very Impatient.
ProceedInrs at Yesterdays Meetings
Statements From Persons Concerned
Receiver Rrodtbeck and Mr. Bar
nett Now Said to BE Acceptable.


Yesterday afternoon the depositors OF
the City bank continued their meeting
OF Friday in relation to taking steps to.
wards protecting their interests. Tho
second meeting was held in the office OF
J. f. Jones in the Fulton block. There
was quito large number OF the deposit
ors present and they all seem to he
aroused and propose to get as much OF
their money as is possible.
A good deal of general discussing and
proposing of the proper means to be pur-
sued took place but the depositors ended
BY appointing q committee of five with
power to act and with whose procedure
they will agree. The committee con-
sisted of Messrs. B. Gordan, l. L.. Lob
man, E. w. Grannis, Te lfair Creighton
and N. Ohronis.
Messrs. Jones and Allen we're engaged
as attorneys by the depositors to look
after their interests.
A number of wild expressions were
made at a meeting held on Friday in re-
gard to the various shares, OF the condi-
tlOA Vi 8uu AUUub bAO50 AOW AASAo6 sA5
the bank. One of the alleged complaints
was against the retention by Mr.. Bfodt-
beck Of Mr.. f. w. Burnett as his at
torney while receiver OF the bank. This
depositors thought that Mr.. Burnett
should not be retained because his former
law partner, Mr.. T. E. Gibbon. had been
the legal advisor of the City bank and of
Mr.. A. D. Childress. it's president.
Nv Topoo oaonrod HrBAI.n ranAYtar
yesterday that this complaint did not
exist. The depositors, he said, had no
fault whatever to find with either Mr..
Brodtbeck or Mr.. Burnett. The con-
duct OF the receivership has been salts.
factory. and no cause is known why
Mr.. Burnett should not act as the at
torney.
At the meeting yesterday it was
stated that the condition OF the bank
was in a poor shape, and to use one OF
the expressions. was "rotten through
and through" There wers~not suiii'
cient assetts to meet the liabilities. 1t
was also said that the majority OF the
stockholders had overdrawn their ac-
counts.
1t is understood that the 'depositors
propose proceeding against the stock
holders to make good the deficiency in
the aseets.
Mr.. Brodtbeck was seen at the City
bank yesterday in regard to the matter,
and made the following statement Q.
the facts of which hs is Gre libby in.
formed.
The intended action of the depositors
of the City bank was not due to dissatis-
faction or objection to the receiver or
his acts as such, but is move to insti-
tute proceeding against the ckholders
and officers OF the bank for their liabil.
ity to them as their creditors. Mr..
Brodtbeck. in his capacity as receiver,
canaot take such action against sto ck-
holders. A few days ago the receiver
reI dered full account of the affairs OF
the City bank, and his acts to date a nd
the report is on file in the county clerks
Office and is open to the inspection OF
depositors and the public. He retained
Mr.. f. W. Burnett as his attorney be-
cause he knew him many years la the.
east and has been his attorney and
counselor since he commenced pfacSiee
here. The only possible ground for com.
plant against Mr.. Burnett is that he
had been in partnership with Mf.fGib.
bon, who had been the attorney of the
bank. The books of the bank show that
Mr.. Burnett is not indebted to the bank
or in any way interested in any of its
affairs. Judge Shaw. with full knowl-
edge of the facts, opposed the retaining
of Mr.. Burnett as attorney for the re-
ceiver.
Mr.. Burnett was alSo spoken with and
claimed that an injustice had been done
him in the publications of yesterday.
"During my partnership with Mr..
Gibbon," he said. 81 had no more con-
nection with the affairs of the bank than
did yourself. Beyond assisting Mr..
Gibbon in court with several cases did
nothing whatever to help conduct it's
business.
81 have never owed the bank single
dollar, and in fact did not even deposit
there, with the exception Of few dol
lars. 1 have always been Mr.. Brodt-
beck's attorney for the past two years,
and it was at his request that have
acted as his advisor during his receiver
ship of the inetitu tion."
Mr.. Gibbon was also seen and asked
regarding the statement made at the
creditors meeting as to an indebtedness
to the bank which was stated to be
secured only by one lot conveyed by
Mr.. Childress to Mr.. Brodtbeck. Mr..
Gibbon stated that he supposed refer
ence had been made to a note of $4,000,
which he at one time made in the pur-
chase of certain property in which N. I.
and A. D. Chidress had an interest.
In the course of the transaction w. 7.
and A. d. Childress had taken all of the
property and had assumed the payment
OF this note.
The note, Mr.. Gibbon said he had
understood, was secured by collateral
deposited by w. T. and A. d. Cnildress.
and that Mr.. Childress had conveyed
the lot in question to Mr.. Brodtbeck as
additional property.
Mr.. Gibbon also stated that he had
never received one dollar from the bank
or any other person for the note, and
that the property for which it was given
had, as stated, gone out OF his hands
and he had been relieved from responsi-
bility by the agreement OF w. I. and A.
D. Childress to pay it, of which every
person connected with the bank was in
formed.
A part OF the collateral deposited by
the Childresses to secure the payment
of the note was, he believed, valued at
something like $4,000. The sum Of the
collateral he did not know the value OF,
and the real estate which had been
added to the security by Mr.. Childress
had market value of something over
SIAOO