The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1898-01-25
FURTHER TIME GRANTED
For Settling the Affairs Of Phila-
delphia's Failed Bank.
PLAN OF COMPTROLLER DAWES.
He Objects to "Classes A and B'' in
the "singeriy PIan," to Which Indi-
yidual Depositors do Not Belong, and
Makes o Proposal to Protect All.

He Objects to ''Classes A and B'' in
the "singeriy PIan," to Which Indi-
yidual Depositors do Not Belong, and
Makes o Proposal to Protect All.
Washington, Jan. 25.-At midnight
Comptroller of the Currency Dawes is
sued a lengthy statement to the credit
ors of the Chestnut Street National
bank. Philadelphia in which he says:
AT the time of the failure of the
Chestnut Street National bank my
predecessor In office issued statement
endorsing what is known as the Sim
gerly proposition, which has now been
approved by 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, l 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 the as
sents to the plan up to date include but
u" Pei 'CHt VI luC utDUSllUlS, dIlu tllbt
he had been informed that many of
those who had signed the plan had been
influenced by the assent of the two
controllers. He proceeds:
In the published statements accom-
panying the plan, and as an argument
for its adoption, the following state
ment is made, which requires explana-
tion: 4
at 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
I'm this statement the fact Is not
brought out clearly that in the case of
the Chestnut Street National bank
there is 4 stockholders liability outside
of that of Mr.. Singerly amounting to
$2l5,0OO, and further the directors, in
addition to MI Singerly 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 not been generally
understood. This relates to the prori-
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
miltee, be diverted toward the redemp-
ton of the first and second preferred
stocks. belonging to classes A and 3, to
which the individual depositor of the
Chestnut Street National bank does not
belong.
Upon the value of The Record prop
erty the value of the plan entirely de-
pcnds, and l shall have government
expert examine the hool:s and prop
elty 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 that 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 II the report of the government
expert Z unfavorable I 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
complied with:
zone of the present committee, giving
bond for the fulflmcnt 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-
dceming 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-
penscs 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 full, with per
cent interest.
1.-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
asserting TO the plan, to the effect that
said directors shall, Notwithstanding
said plan, remain bound for all liabiIi-
ties incurred by them under the pro-
visions of law.
'To this member Of the committee, as
trustee, each stockholder of the bank
must enter as an individual into an OBJ
legation similar to the above to the ex-
tent OF his individual liability as
stockholder.
IAN amount of money equal to the
par Of the claim Of non-assentingscred-
itors and Der cent interest from the
date Of the failure of the bank must
be provided to pay said non n-assenting
claims.
Upon compliance with these condi-
tons, for the fulfllment of which will
allow 20 days, shall then appoint the
examiner in charge as temporary re-
ceiver, who within five days after his
appointment will appear in court and
ask for the approval of the court to the
transfer of the assets Of the bank to
said committee under these conditions.
Upon receiving such approval the prop
erty will be delivered to the said COM
mittee, and the temporary receivership
terminated. Otherwise l will appoint
a permanent receiver, in pursuance Of
law"
Postof1lces Need More Money.
Washington, Jan. 25.-Postmaster
Gpperal Cary Gent tO pOpprnSS vpctar.