The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-28
REFEREE APPOINTED.
TO Examine and Report on the solvency
Of the New York Building Loan Banking 60.

ALBANY. Dec. 27.--Supreme Court Justice
Herrick this afternoon appointed James J.
Farren, as q referee to examine and report
on the solvency Of the New York Building
Loan Banking Company. Mr.. Farren for
merly was in Justice Herrick's law office.
This appointment is made pending the
decision of Justice Herrick upon an appli-
cation of Attorney-General Davies that
Justice Herrck appoint temporary receiv-
crs for the company on the ground that it
is insolvent. The State Superintendent Of
Banks last week reported the company to
the Attorney General as insolvent to the
extent of about 81 100000, and requested
the Acknowledgement to secure the ap-
pointment of receivers for the concern.
The matter came up before Justice Her
rick to-day on the question as to whether
or not he should grant an application made
on behalf OF the officers Of the company
for writ of prohibition restraining State
Superintendent of Banks Frederick D.
Kilburn from reporting the company in
solvent and the Attorney-General from
applying for receivers.
David c. Robinson, Alexander G. Eus-
tace and William H. Hamilton appeared
for tie officers Of the company. and Attor-
"
Conan, and Mr.. Kilburn for the State.
Mr. Robinson said the officers Of the
company, which has nearly 50 900 600 as
sets. and its $4,000 shareholders, wanted
a speedy determination Of the question. and
desired to show the courts referee that
the company was absolutely solvent.
After some discussion between counsel
II was agreed that the alternative writ of
prohibition lie amended, SO as to permit
the Attorney-General to ask the court
bring all the questions in the case before
the court.
Justice Herrick said he would insist ON
the appoint ment Of a referee before passing
upon the question Of appointing the re-
ceivers. Both sides acquiesced in this
without much comment.
Mr.. Robinson said that from the papers
upon which the alternative writ has been
granted some people seemed to draw the
conclusion that there was conspiracy
to ruin the company. He wished to dis
claim any such inference as regards the
Attorney General, and by common consent
that part of the writ affecting the Attorney
General was Quashed.
Justice Herrick said he was sorry re-
fection had been cast upon the Attorney
General and glad Of Mr.. Robinson's dis
claimer.
Mr.. Kilburn said he had prepared a re-
turn to the writ and desired TO file it.
OF course 1t is to be regretted that such
a charge should be made said Mr.. Kill
burn. MY return Is an elaborate one,
and absolutely denies the existence or
thought of any conspiracy so far as l am
concerned Now that the company's coun-
sci and the Court have exonerated the At
torney-General from any such aspersion,
I do not see how l can be so charged, there
being no one to conspire with"
Justice Herrick said his return would be
received, and that OF the Attorney General
and both returns would be referred TO the
referee.
-The essential points Of the Rank De-
partment's examination and report OIL the
affairs and condition Of the company will
be furnished to the companys Attorney"
said Justice Herrick. and | shall instruct
the referee to examine fully into all dis
puted questions. Mr.. Kilburn and ali
parties interested can appear before the
referee. 1 shall instruct the referee TO
commence his work on Jan s, and continue
TO sit every day except Saturday and Sum
day until he completes his work. II Is
necessary for the protection Of the share
holders that we have a speedy report so /
can determine whether or not their inter-
ests best would be safe-guarded through
the appointment Of receivers
Supt. kiburn contends that 1t is his
deliberate opinion that the company is
doing business on wrong and unsafe
basis: that the shareholders interested
therein will inevitably lose large amounts
OF money; that the business Of the COM
pany is actually being run now at loss.
and that the time has come when it is the
duty Of the Superintendent Of Banks to
report the facts in connection Herewith
to the Attorney-fieneral Of the State, as he
Is required to do whenever ii appears TO him
that II is unsafe and inc xpedient for cor
poration to continue in business.
Mr.. Farren. the referee, is a well-known
Albany lawyer and is a partner Of John A.
Delehanty, who was the law partner of
Supreme Court Justice D. Cady Herrick
before he assembled the bench Mr.. Farren
will conduct his q nination in New York