New-York tribune., 1896-01-21
A BANKS HOLE IN THE GROUND
THE REFEREES REPORT on THE CON-
MERCIAL AND IT'S MINING FIZZLE.
A sCATHING ARRAIGNMENT OF THE DIRECTORS
AND AN OPINION THAT THE RECEIVER
SHOULD BEGIN AN ACTION IN EQUITY
FOR AN ACCOUNTING OF
THEIR MAXAGEMENT.


SHOULD BEGIN AN ACTION IN EQUITY
FOR AN ACCOUNTING OF
THEIR MANAGEMENT
Herbert T. Ketcham. referee in the suit OF ths
people against the Commercial Bank. wnich went
into liquidation August r. 1893. filed his report
yesterday in the Supreme Court The referee 1t will
be remembered began his investigation into the
banks affairs the application OF W. n. Dykman
as receiver who applied for instructions as to the
liability OF the shareholders and directors OF the
bank
The report makes scathing arraignment OF the
officers and deals exhausvey with the affairs or the
St Kevin Mining Company whose officers were
loaned large of money by the bank without
adequate security sff ,-f
The report shows that since the bank was formally
dissolved on October g. 1899. the receiver realized
ssS2 3s 80; that he has paid or holds
as dividends to its creditors s 9s4 49, that on April
Il, 1885, s5o7i9 81 had been expended In adminstra-
ton Of the and in the payment Of the proceeds
of held for collection at the time OF suspension,
leaving balance OF $s2 25. .
UNPAID CLAIMS. ss3 9s7 IS.
The report further alleges that there is left unpaid
of the claims of all creditors $S3 967 5 Judgments
against William J. Northridge and John J. Vail.
amounting 10 $3.50 o. have been recovered. There
are also pending actions, the report states.
against directors Of the bank fer dividends alleged
have wrongfully paid in 1892 or 1898. amount
ing to $3.50
The referee goes on to say that the bank advanced
TO the St Kevin Mining Company various sums with
out security, amounting at the time Of the suspen-
sion of the company to $93 1883 92. After these ad
vances by the bank. Directors Keeney, Gill and
Snedeker made advances to the mining company
stated to be from $50 900 s05 0Oo with the under
standing that the first from the mine. II
II successful they be first repaid their
advances, and that the bank should thereafter 10
paid for its advances. and that they were to receive
share OF the companys stock In the event OF such
success
FINAL LASH.
The history OF the company shows 4; to have been
unsuccessful and much space is devoted 10 a state
ment Of the directors expert jugglery OF figures.
The referee continues: Upon this evidence it has
become my opinion that the receiver should COM
mence an action actions in equity for account
ing the matters hereinafter referred TO and for
other appropriate relief against all directors OF the
any part Of ten years before the commencement or
the action, and who do not affrmatively appear to
And that in such action or actions the receiver
should aege against each defendant for the time OF
misconduct as this inquiry or further investigation
may disclose with reference 70 the loans to Messrs
Knowlton and Hassell the loans to the ST. keyn
Mining Company: the personal dealings of some OF
the directors OF that company and its property the
making oil loans OF discounts by which the whole
amount of loans and discounts OF the bank
made to exceed three times its capital stock the IN
OF interest at the time unpaid though due or ac-
crued: the excluding from the computation OF fts
without prosecution and on which no interest had
been paid for more than one year: the payment OF
losses the overdrafts of depostors the renewal OF
credit as to the principal or interest OF loans on
enforce any obligation TO the bank which inter-
est. though due or accrued. was not paid. and such
close as the basis Of liability No ground whatever
for any action against John II. Rowland appears"