Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1898-01-29
FURTHER TIME GRANTED
For Settling the Affairs Of Phila-
delphia'S Failed Bank.
PLAN OF COMPTROLLER DAWES.

He Objects TO "Classos A and B's In |
the .ssingerly Plan,' 60 which Indi- |
yidual Depositors do Not Belong, and |
Makes . Proposal to Protect All.
Washington, Jan. Sg.-At midnight
Comptroller Of the Currency Dawes Is
sued = lengthy statemsnt - the credit
ors OF the Chestnut Street National
bank. Philadelphia, in which he says:
AT the time Of the failure sf the
Chestnut Street National bank my
predecessor In ONCE issued = statement
endorsing what is known ~ the. Sim
gerly proposition. which has now been
approved by q large majority OF the
creditors OF the bank. In view ef GER
Sain provisions and my conviction that
the power OF the committee TO change
the plan would enable me consistently
to demand additional protection to the
depositsrs OF the bank. approved the
general plan, providing the unanimous
consent sf creditors could be obtained.
and allowed until Jan 20 for the secur-
ing Of additional sssents."
Nr. Dawes then explains that the as
sents to the plan up to date include but
80 per cent OF the depositors. and that
he had been informed that many Of
those who had signed the plan had been
comptrollers. he proceeds:
In the published statements accom-
panyinE the plan. and as an argument
for its adoption. the following state
ment is made, which requires explana-
ton:
1T must be clear to all concerned
that In no case can creditors OF the
bank, Of the Trust company, Of the
Pulp ana Paper company and OF Mr.
SinEerly himself realize more than the
total value OF the assets and rights OF
these corporations. In addition TO those
Of Mr.. Singsrly Individually
In this statement the fact is net
brought out clearly that In the case of
the Chestnut Street National bank
there ia q stockholders' liability outside
OF that Of Mr.. SinEerly amounting to
| a11S,seo and further. the directors. in
| addition te Mr.. SinEerly are by law
individually liable for the full amount
| or losses resulting from the excessive
leans and all other violations OF law.
Another feature involved IN the plan
as IL stands at present IL one which in
my judgment has net been generally
understood. This relates to the priori-
ties or lien involved in the redemption
OF the proposed different Issues Of rec
era stock. ana the division OF creditors
into classes A, y and c.
Under the present form OF the plar
all the cash and quick assets of tn,
bank may. in the discretion OF the com.
mittee. be diverted toward the redemp.
ten Of the first ana second preferred
stocks, belonging to classes A and b, tC
which the individual depositor of tn,
Chestnut Street National bank does no
belong.
Upon the value OF The Record prop
erty the value of the plan entirely de
Pends. and shall have a government
expert examine the books and prop
srty OF The Record company to aacer
tain whsther the earning capacity cor
responds with the statements given tn
public ana inform himself as to tn
general value OF the property.
TN srder that no damage shall resul
j., frsm delay fer the next 20 days tn
examiner In charge win proceed to tn
liquidation OF the bank In the regula
way. If the report OF the government
2 expert is unfavsrable I shall appoint
)i permanent receiver Immediately. i
however, this report is favorable, be
! fore my acquiescence In the plan, tn
. fsIlewing conditions must have bee
: complied with:
"One OF the present committee, KiVin
a bend for the fulnlIment OF his Quite
5 must be named az trustee for the srec
{ ttors OF the Chestnut Street Nation,
8 bank Te him must be paid all the n,
/ proceeds OF the assets OF the Chestnl
4 Street National bank. which shall I
n devoted bv him as trustee to the r,
o deeming rate Of The Record stock fl
q sued for claims OF depCsitors OF II
Y Chestnut Street National bank. None
the assets Of this bank shall be use
q for any other purpose except the pa,
q ment OF such claims against the bar
u as are at present preferred and the c,
Il Penses incident to its regular LIQUID,
. ten by the COMMITTEES until The Recol
steek issued for claims AGAINST Il
# Chestnut Street National bank shs
a have been redeemed in full, With 6 d
a cent interest
,s THE directors shall execute their o
Is legation to this member Of the commi
e tee, as trustee. In favOr OF the bank
.r creditors, in consideration Of credIto
d asserting to the plan, to the effect tn
4 said directors shall, notwfthstandil
10 said plan, remain bound fer all liabi
n ties incurred by them under the pr
~ visions Of law.
n "To this member OF the COMMITTEES.
"a trustee. each stockholder Of the bal
must enter as an individual into an o
II legation similar to the above to the e
ar tent OF his individual liability an
= stockholder.
~ "An amount OF money equal to {
o. par of the claim OF non-asEsnting ere
- tiers and 6 Der cent interest from (
=. date Of the failure Of the bank MI
be provided to pay said nen-assenti
claims.
20 Upon compliance with these cen,
- items fer the fulflllment Of which v
"a allow 20 days, 1 shall then appoint (
- examiner in charge a. temporary
~ oeiver, whO within ave days after
a. appointment will appear in court a
ask for the approval OF the court to
transfer ef the assets OF the bank
said oOmmittee under these cenditie
90 Upon receiving such approval the DrC
Orty viii be delivered to the said CO
W mittee, and the temporary rscsivsrsl
10 terminated. Otherwise will appo
~. q permanent receiver, in pursuance
III law"