The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-22
MORGAN ION BANh CASE
ARGUED BEFORE THE SUPREME COUk1
YESTERDAY
Claimed That treasurer Worth Knew the Bank
was Shaky Long Before it Closed
Its Doors
Its Doors

work for the term-all except handing
down some opinions.
| To dispose of the criminal cases ON
the docket took but very short time
yesterday morning, owing to the fact
! that briefs were filed in most of them.
instead of arguments made.
This done, the Morganton bank re-.
| ceiyership case was taken up and ar
| gued. Mr.. +. III. Busbee appeared for
| the State Treasurer and Mr. Il. J. JUS
| tice, of Marion, for the present receiver,
Mr.. w. L. Walton.
| The speeches were very able and ex-
/ haustlye on both sides, consuming some
| three hours. Mr.. Justice, appearing for
| the appellant, had both the opening and
conclusion. Lawyers who heard his ar
! gument say that it was very able and
convincing, and presented his side Of
| the question in its strongest possible
| light.
| There were two questions presented
| in the case, he said: 1st. Which action
the one n Burke or the one in Wake
/ has priority? End. Is the right of the
| State Treasurer to bring an action to
| have receiver appointed exclusive of
the right of creditors to bring such ae-
| ton?
| Mr.. Justice contended that as Walton
was appointed in an action commenced
| before IL a. III. on December md.
| and as the complaint was filed at the
| time the summons was issued and
as the summons IN the case of Worth
| vs. Bank was not issued until after 1
| O'Clock p. m. on December End, that the
| first right was with the Superior court
| of Burke county. Having been appoint
| ed receiver, Walton on December 14th
! took charge of the banks assets. Mr..
| CoWles, who did not offer to take charge
until the 9th, could not oust him WAL
| ton. Mr.. Justice further contended
| that the action in which Walton
was appointed was first brought. ThaE
a complaint for a receiver was first
filed therein. That he first qualified as
! temporary receiver. That he was first
appointed permanent receiver and first
gave bond and took the oath and took
charge as such.
Upon the question as to whe her the
| right of the State Treasurer to bring
an action is exclusive, Mr.. Justice con-
tends that chapter 155, Acts 1891, con-
! templates that the State Treasurer may
bring his action when the Bank Exam
liner, by his report, shows that the bank
is ins0lyent, and it's insolvency is not
generally known. But in ths case, said
AIr. Justice, Mr. Cr0wder made an ex-
animation only a short time before the
failure and discovered nothing wrong
with the affairs of the bank
That after the bank closed its business
it requires a strained construction of the
statute to give the State Treasurer a
| right to bring an action, but if he had
the right, there is nothing in the letter or
| spirit of the statute to destroy rights
of creditors.
''Treasurer Worth is abundantly Sc
| cured against loss, and for him to in-
Sist on naming a receiver in an action
| in Wake against the protest and peti-
| ton of nine-tenths of the local creditors
| looks as if he had more interest in en-
| forcing a job than in taking care OF
creditors.
1.-The bank officers sent an attorney to
| Goldsboro to consent to the appoint
ment of a receiver. The creditors in
sist on the appointment of Mr.. w. q
| Walton.
Treasurer Worth is trying to do what
| the wreckers of the bank want done,
and just what the creditors do not want
! Is it possible that this inordinate greed
for office is going to make the State
| Treasurer inaugurate policy OF ignOrs
| ing the rights of creditors of insOlvent
banks and standing by the bank Off
| cials.
'It looks as If the only protection cred
| itors have is in the courts, and if the
| courts decision is adverse to them they
are helpless victims to political greed"
While talking about this case, 1t may
as well be stated here that the further
it goes the worse it looks for our beautl-
full and accomplished State Treasurer,
who, being sanctified, has been consid-
cred incapable of doing any wrong.
| The Father has not only tried few
of his choice tricks in the receivership
| contest, but, IL reports be true, he had
| some intimation of the shaky condition
| of the bank some time before the crash
came. 1t is a notorious fact that his
| Bank Examiner made an examination OF
| the institution only short while before
| it failed. About this time, it is said.
| one of the officers of the bank came to
| Raleigh with Worth's subTreasurer,
Mr.. E. 5. Walton, and represented that
| the bank was in a tight place, and unless
| the State helped it out that it would
| have to go to the wall; that upon this
| representation the Father let the bank
have $4,000, or thereabouts; that the
money was never placed in the bank at
: Morganton, but taken direct to New
York, and placed in a bank there to
/ bolster up the failing credit of the bank
at MOrganton.
These things may not be true, but
they are told and generally believed
| here. Mr.. w. e. Walton is given as
! authority for them; and it is said that
he claims that Mr.. e. S. Walton, his
cousin, and Father Worth's sub-Treas
urer, told him about them.
SUNDAY SCHOOL MISSIONARY.