The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1898-01-25
COMPTROLLER DAWES PLAN.
j Gives Further Time For PhiIadel-
phiu'~ Failed Bank to LlqnldaUe.

phin's Failed Bank to LlqnldaUe.
Was hiugton, Jan. 25.-At midnight
Comptroller of the Currency Dawes is
sued lengthy statement to the credit
ors of the Chestnut Street National
bank in which he says:
Al the time of the failure of the
Chestnut Street National bank my
predecessor i'm office issued a statement
| endorsing what is known as the Sin
gerly proposition, which has now been
approved by a large majority of the
creditors of the bank. In view of GER
tain provisions and my conviction that
the power of the committee to change
the plan would enable me consistently
to demand additional protection to the
depositors Of the bank, / approved the
general plan, providing the unanimous
consent of creditors could be obtained
and allowed until Jan 20 for the secur-
ing of additional assents."
Mr., Dawes then explains that he is
informed that the assents to the plan
already given have been solely influ-
enced by the assent of the two comp
trollers, and adds:
"In the published statements accom-
panylng the plan, and as an argument
for its adoption the following state
ment is made, which requires explana-
tion:
1T must be clear to all concerned
that in no case can creditors of the
bank of the Trust company, of the
Pulp and Paper company and of Mr..
Singerly himself realize more than the
total value of the assets and rights of
these corporations, in addition to those
of Mr.. Singerly individually.
In this statement the fact is not
brought out clearly that in the case of
the Chestnut Street National bank
there is stockholders liability outside
of that of Mr.. Singerly amounting tC
S215OOO, and further, the directors, in
addition to Mr.. SingeTly, are by law
individually liable for the full amount
of losses resulting from the excessive
loans and all other violations of law.
Another feature involved in the plan
as it stands at present is one which in
my judgment has rot been generally
understood. This relates to the priori-
ties of lien involved in the redemption
of the proposed different issues of Rec
ord stock, and the division of creditors
into classes A, b and c.
Under the present form of the plan
all the cash and quick assets of the
bank may, in the discretion of the COM
mittee be diverted toward the redemp-
tiOn of the first and second preferred
stocks, belonging to classes A and i, tu
which the individual depositor of m.
Chestnut Street National bank does not
belong.
Upon the value of The Record prop
erty the value of the plan entirely de-
pends, and l shall have a government
expert examine the books and prop
erty Of The Record company to ascer-
tain whether the earning capacity cor
responds with the statements given the
public and inform himself as to the
general value of the property.
In order tnat no damage shall result
from delay for the next 20 days the
examiner in charge will proceed to the
liquidation of the bank in the regular
way. If the report of the government
expert is unfavorable l shall appoint a
permanent receiver Immediately. If,
however, this report is favorable, be-
fore my acquiescence in the plan, the
following conditions must have been
compiled with
'One of the present committee, giving
bond for the fulfllment of his duties,
must be named as trustee for the cred
itors Of the Chestnut Street National
bank. To him must be paid all the net
proceeds of the assets of the Chestnut
Street National bank which shall be
devoted by him as trustee to the re-
deeming rate of The Record stock is
sued for claims Of depositors Of the
Chestnut Street National bank, None OF
the assets Of this bank shall be used
for any other purpose except the pay
ment Of such claims against the bank
as are at present preferred and the ex-
penses incident to its regular liquida-
tion by the committee until The Record
stock issued for claims against the
Chestnut Street National bank shall
have been redeemed In fun, with 6 per
cent interest.
THE directors shall execute their OBJ
legation to this member OF the commit
tee. as trustee. In favor OF the banks
| creditors, in consideration Of creditors