The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1895-04-02
HE DECLINES TO PAY ANY FUR
Their EXPENSES.
Attorney General. Hendrick, Ad-
vIses that Case Be Not Dis
FRANKFORT, KY, Jan. 7, 1896.

Hon. VIM. j. Hendrick, Attorney
General.
DEAR SIR: The suit filed, by Mr.
Reid Rogers and other attorneys in
my name as Secretary of State, in the
Montgomery Circuit Court for the APP
pointment of receiver of the New
Farmers Bank, at Mt. Sterling, Ky. =,
was authorized by me, with your ap-
proval, upon the verbal understand
ing that this Office should be involved
in no expense. 1t was represented by
Mr.. Rogers TO you and to me that no
legitimate proceedings had been ia
ken for the liquidation of the bank.
He affirmed it is notorious fact that
special Judge, in collision with
parties hostile to the stockholders Of
the bank, had met the attorneys of the
ColumbiaFinance & Trust Company,
Of Louisville, by appointment at Lex
ington and there arranged to appoint
the said Finance & Trust Company
the receiver of the New Farmers
Bank, at Mt. Sterling. 1t was fur
Their urged that such receiver resid-
ing in distant county had no interest
in the community and would arbitra-
rily enforce the collection of debts
payable to the bank without proper
concern for the interests of the stock
holders. 1t was cOntended that the
stockholders were powerless to con-
test the fraudulent appointment of
the receiver unless the Secretary of
State would authorized a suit to be
instituted under section GIG, Ky.
Statutes for the appointment Of re-
ceiver, as provided, who should be
resident of the county. In view of
such facts regarded it my duty to
authorize the use Of my name in o.
der that the people of Montgomery
county should at least be allowed a
fair trial in court for the appointment
of a receiver. This course was APP
proved by the Attorney General.
The law, under which it was con-
tended the Secretary of State was au-
thorized to act, reads as follows:
Sec. 9l6-"The Secretary of State,
upon becoming satisfied that any
bank or corporation has become in
solvent, or that its capital has become
aud is permitted to remain, impaired,
or that it has violated any of the pro-
visions of the law under which it was
organized, may, with the approval of
the Attorney General, apply to the
Circuit Court, or the Judge thereof in
vacation, of the county in which the
bank or corporation is located, for the
appointment of a receiver, who, I'M
der the direction of the court or
Judge, shall take possession of books,
papers and assets ofevery description
and all business of the bank or cor
poration, and collect all collectable
debts and demands, and sell all the
real and personal property of the
bank or corporation, on such terms as
the court may direct. The receiver
shall be resident of the comfy in
which the action is pending, and give
bond, with good surety, to be approx
ed by the court, and settle his &C
counts under the general laws"
have been informed by Mr.. Reid
Rogers that upon the trial Of the case
the court held that lawful receiver
had been appointed who had execut-
ed bond and was proceeding under the
orders of the court to wind up the at
fairs of the bank. The court further
holds that the Secretary of State did
not possess the authority under sec
ion GIG to assert the right to apply
or receiver to be appointed by the
court for bank already in process of
according to law, In my