The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-25
THE s1xeBxrr BANK rAnUnE.
cssdiisps u.pssea By Cor.ptrsusr Dawes me-
fere Cenapletinn the Flan ef Ltariaatlon.

Cepditieps uuapesea By CoraptreiIeP Dawes ne
fsre CenpietirG the Fian or Ltauiaatios.
WARRINGTON, Jan. 24.-Charles G. Dawes. the
COMPTROLLER Of the Currency, sent q long letter
to-day, addressed to the creditors Of the failed
Chestnut Street National Bank Of Philadelphia,
which was made public lato tonight.
Mr.. Dawes quotes that portion Of "the Sin
Eerly proposition" previously published. pro-
viding for q change of the plan of liquidation
and his own Endorsement of II. Continuing he
says:
Il am informed by tho examiner in charge Of
the bank and by others that numbers OF de-
positors have been solely Influenced in their as
sent to the plan by the sanction thus
given to 1t by my predecessor and my
self in our official capacity. This fact. and
the further fact that, in consenting to the
liquidation OF the bank in the manner pro-
posed, this ofico assumes and possesses a
knowledge Of the condition OF the bank
not enjoyed by its depositors, leads mo to ex-
plain moro fully the reasons for the conditions
which I shall impose before asserting to the
transfer of the property Of the depositors to
the management Of the committee.
I'm the published statements accompanying
tho plan and as an argument for Its adoption,
the following statement 10 made, which requires
explanation: LIT must DO clear to all
concerned that in no case can creditors
Of tho bank, of the Trust Company. Of the
Pulp and Paper Company, and of Mr.. Singerly
himself realize moro than tho total value Of tho
assets and rights Of these corporations, in addi-
ton to those of Mr.. singorly individually
"Iu this statement tho fact is not brought out
clearly that in the case OF the Chestnut Street
National Bank there is q stockholders' liability
Ens''o 70 q s2i i5Ss or and ND SfaRT ! s as%00a 81:
~rectors. in addition, to. Mr.. ,Singerly,
of losses resulting from tho excessive loans and
tho voluntary liquidation OF the bank under
be forfeited for the depositors OF tho bank their
right against those parties for indemnity to this
Another. feature involved in the. plan.
as it stands at present. is one which. in
my Judgment, mt. has not been genesra;lly u n;
lien involved in. the redemption 81 the pro.
posed different issues of Record stock and
Under the present form of tho plan all the cash
and quick assets OF the bank may, IN the discre-
ton OF tho o%,Tihis Tit be diverted towsFd the
stocks belonging TO classes A and B. to which
the Individual depositors of tho Chestnut
amount Of tho proposed issues of first
and second preferred stock win nef ;Sc
aggregate Of good assets to be derived from
other sources, that under the present plan I'M
essnsea st tns S SnPFs5sTIr saDS SeP %Sn 6elo of tho 20
class G. might have little hope for any near re.
demption. His share in the quick assets might
be paid to another lienholder. .
the r eSe saHGry s sErset ws Nstio many B aeRRos ssom to
t hsyo % Ssfen seid to @ t p4sl g 3 is cl tass 'h npon th it
assets e ,d the .t bank 81 as vs at present ire asa,t and
mittee, there is nothing in the letter Of the plan
which makes it imperative. As q matter Of
the question Of whether or not tho assets OF the
bank are absorbed In tho redemption OF prior
mittee, Who are authorized to make any changes
in the plan at any time they may see fit.
MY decision in this matter, as an official OF
the Government, must be determined by the in
terests Of the deposLtors of the Chestnut Street
MationoI Bank The eon affairs Of S, that bank bank.
fies prediction that substantial return can.
not be made to creditors under a receivership
fSS% rs i hsfsifi i,neip Gpon thc sslne o. ana the s' Sse.
depends. The published statement OF the COM.
the earnings of tho property given. and l shall
Books and a s sSs pTopsr.y expert 81 The f Rseo~& come ,nc
pany to ascertain. whether the earning
capacity to oG '1s oub,,o T ana i Insorm stAt si%seIs
as to the general value of the property. In
order that no damage may result from de-
IN in'' charge iHl se' viii Wiz proceed toward iowa III the s1 lisaida.
tion Of the bank in the regular way. II tho
report y u TUG government tNpcEb 10 uIluNoEo
disitely. II. however. this report is favorable.
i Ess0 son %G sGa9 mast haye en be sns d s5nn p E"f w rGtic"'
bond for tho fuidIlment Of his duties: must be
the hSsn0e Chestnut st afus Street TOT National tor 'f BANK. TO
hin must DO paid all the net proceeds Of the
which shall be devoted by him as trustee to the
redemption pro rata Of the Record stock issued
fSr claims Of dogo.isors Of the Chestnut
sets Of this bank shall be used for any
other purpose except the payment OF such
ferred and the expenses incident to its regu.
lar liquidation, by the committe until tho
Chestnut Street National Bank shall have been
redeemed in full with 8 per cent; interest.
and in favor OF the banks creditors; in consider
alton Of creditors asserting to the plan.
tee each stakeholder of the bank must enter as
an individual into an obligation similar to tho
above to the extent of his individual liability as
Statutes of the United States.
" 4 An amount OF money equal to the par of
the claim OF the non-aSSentinR creditors and
8 per cent. interest from the date of the failure
of the bank must be provided to pay said nom
Upon compliance with these conditions. for
tho fulflment OF which will allow twenty
cSSs., l IS shall iama then a FISaiHer the %be eX |ifbin aI in
daysafter his appointment, upon general notice.
will appear in tho United States Circuit
Court for tho Eastern district of Pennsyl-
vania and ask for the approval of tho
court to tho transfer of the assets
of the Chestnut Street National Bank to
said committee under these,conditions. Upon
receiving such approval tho property will be
porary receivership terminated. Otherwise 1
will appoint a permanent receiver in pursuance
of law. CHARLES G.. DAWES.
Comptroller OF the Currency
COIL cotton SHOVN.