The sun., 1903-07-29
LOAN co. INQUIRY DELAYED.
CUNNEEN STEPS IN IN BUILDING
LOAN BANKING co. CASE.
Referee Says New York BulldlnE-Loan
BapIklnE Company Is InsOlyent, and
t'unneen Takes FROM Herrick Chance to
Say who shall Get. Receivers Ptckings.

tunrNeen Takes From Herrlck Chance to
Say who shall Get. Receivers Picl<ings.
Albany, July rs. ~Tderculean efforts are
being made either to prevent or to dictate
the appontl uent Of a receiver for the New
York Buildn g. Loan Banking Company OF
New York Guy. Startling revelations re-
Rard;ng the management Of the company
are promised in detail when arguments are
had bet ore the Supreme Court on the ques-
tion of whether a receiver shall be ap-
pointed
Nearly 80 OOO, 900 of assets are involved.
The company clai ms a surplus OF nearly
$3.50, 900. but Referee Farren, appointed by
Supreme Court Jus tice Herrick. says that
there is "A deficiency of over $500 and
his arraignment oY the management OF the
company is mercess-
Whether c,irlinal proceedings are to fol-
low is quest ion for tho future. The lapses
of management ,.ompissned OF are haSrant.
and the amounts Of money involved are
large The cornps py's officers have been
Fighting for months tn escape the meshes
nf the law which have been cast toward its
management by tho State Banking De-
pnJtrlent.
Last December. whm iupt. kilburn OF
the STATE Banking Department. through
the then Attorney Gene val John c. Dawes.
announced his intention of asking for the
anpoip,mcpt of receiver of this company
On ,ha ground Of its insolvency. the company
through it's attorneys, secured "a writ OF
urohibition from Justice i1errick restraint
ing rhese vo State officials fronproceedinS
further pending the order ~ the Court.
v,f,,ly sd tn, n
point Referee Earrerl 10 investigate and re-
port on the financial condition OF the COM
paur Nr Farran's report was filed with
Justice Herricl. on July IL, Justice herr1ck
hnd set to-day as the time irr hearing
un tho question of appointing temporary
rocaiyar Dssad upon Mr.. Farren's report.
AT he referee mad" his report Justice
Hnytici Thoroughly examined il and was
prepared at tho bearing to-day to announce
lis decision as 10 whether or npta temporary
receiver OF ne company should be ap-
pointed What WAS his CONSERVATION then.
when on opening court al he appointed
'Lour,this mornir gn,irher the Attorney-Gen-
era' or any representative of rhe Attorney
General : depart menr nor any attorney or
representative of fhe bTilding loan oom-
psEy was pressu, in court
r . ATTORNEYS for the company had feared
the appointment ii . receiver by a Repuhl-
"an Supreme Court Justice, ard had alleged
before Justice Herrick. when asking for "A
writ Of prohibition ana the appointment Of
Referee Farreu. that NOT ONLY was the COM
pany solvent. but that the Republican
Attorney General and the Republican
Superintendent Of Banks had conspred to
wreck the company in order to let the Re
publican Attorney General. before his term
o! Office expired on Jan. last, secure
tine appointment of a receiver ard the fat
financial pickings which 60 with such a
commission.
Justice Herrick said that he would Ses
that ihe company had fair play, and this
mction threw the question OF applying for
ircoiNcrshp into the hands OF Democrat,
Attorney General Clnneeu.
t.v"rl one knows that David B. Hill was
responsible for Mr.. Cgn,a"1'@ nominal ion
for .."o"n"v-t General and that the attorneys
for he company. Alec &. ElIstace and Col.
David G. Robinson. both OF Elmira, are
ro' unknown 10 Mr.. Hill either politically
a.. personally.
Those rsu.iIiar wi, n the political situation
II thIs vicinity are also aware Of the many
political contentious which have existed
between Justice Herrick and Mr.. Hill.
rNferee Farren used to be in Justice Her
rekI Law office.
in vinw Of the fact that this receivership
and the attorneys iees would be worth
in the ncighborhood uf $50 900. those famil-
il" with Democratic political conditions
we're not surprise 70 learn to-day that
Attorney General Cunneen had transferred
tho application for a RECEIVER for the COM
pany from Justice Herrick to Justice p
ionrv Dugro Of Ner York city.
While it il believed that the transfer
"f III" application for the appointment Of
a receiver from Justice Herrick TO Justice
Dugro iG made mainly for the purpose OF
securing q friendly receiver. al least from
a political standpoiut IL was intimated
Tonight that the officers OF the company
would endeavor to persuade Justice Dugro
to turn down Referee Far~ens report,
which declares the company inSovent.
Referee Farrcn spent from Jan. 5 last
until July IN IN conducting an exhaustive
examination OF the affairs of the company
and in preparing this report, in which he
declared that q receiver for the company
sho'lid he appointed
letter was submitted from the Attorney
General. saying that he had stipulated
That the venue in the action be changed
from Albany 10 New York oun'y The
I'tter reads
Being in Vow York on somc business met
ihr ATTORNEYS for the New York Building
Loan Banking Company. They requested
that the argument of tn" motion before rhe
Albany Special Term noticed for Tuesday V
b" post stponcd, conteuding that the report Of
the rcfCrc" contains some grave errors,
that the matter was important from every
point Of view and that II was not fair to them
TO compel them to go into tn" argument Of
rhe motion lthout more opportunity Tor
preparation than they hav" been given,
! felt that II this argument were addressed
10 YOU yor would undoubtedly grant the
posi- ponemeut, also felt that IL would be
IN order 10 hear this motion in August, and
did not want 10 delay it until Septcmber.
In view Of tha-" circumstances arranged
Ia change the venue 10 Now York county.
where " really should have been laid IN the
frat place, as the principal office and place
Of business is here And as the courts are
TO hr continued here during the month Of
August | have arranged with Mr. Justice
bIGrO to hear the arg nment or the motion
for a receiver on Aug. 10 accordingly
have taken orders SeNerinl the special pro-
,e"lug from the action, changing the venue
Of the action 10 New York county and con-
rInlnug the injunction until the hearing and
decision OF thc motion for n receiver. The
Venue Of the special proceeding for the ap-
pointment of a referee remains in Albany.
The letter was dated in New York city yes
tcrday and was received by Justice Herrick
this morning
In view of the fact that Attornsy-Gcneral
Cunncen, AZ the last moment, saw fit TO 20
TO New York city and make arrangements
to have the action looking toward the
appointment Of n receiver removed to New
York before Justice DuEro on Aug 10,
Justice Herrck to-day postponed until IL
o'clock on Saturday next his action on the
application for q receiver and on Referee
FarrCn'S report.
I'll