Durango semi-weekly herald., 1904-01-21
THE BANK PAYS DIVIDEND.


Silverton Standard.
The district court convened Thurs
day according to adjournment. for the
purpose OF considering tho Bank OF
Silverton matters. The first thing
taken up was the claim of The Ameri.
can Bonding company TO have its
claim of 10000 declared to be prior
to all other debts of the bank on the
ground that by paying up the bank
debt to the state treasurer 1t would
succeed to lll the rights of the state
of Colorado. and was therefore en-.
titled TO priority of payment The
';e7ticn As argued in the forenoon.
ty B. W Ritter on behalf OF the surety
IN Dany, and was argued in the af-
rnoon NY w N. Searcy on behalf OF
the general creditors OF the bans.
idee Russell, in his decision. decided
that the American Bonding compan
" rs not entitled to any preference il
the payment of its 10000 claim fol-
the reason that the plaintiffs suit had
been brought in such manner as to
soquester and TO hold for the benefit
of all the creditors generally, all the
property of the bank. and that there
fore the alleged priority OF the state
OF Colorado could not be made effec-
tual
In the evening the court took up the
receivers new report and the matter
OF paying compensation to the recely.
er and his attorney. and OF paying
dividends to the creditors. and also
ruled upon the question OF the lasl
days business of the bank,
Upon the question OF the last days
business the court ruled that checks
upon the Bank OF Silverton deposited
that day. did not constitute preferred
claim, for the reason that such checks
did not add anything to the funds OF
the bank, ana if the persons depositine
such checks We're allowed to he paiG
in full it would be simply taking one
mans money to pay another. AS to
the cash deposited in the Bank of Sil
yerton on the last day, the court held
that as it was shown that the bank
officials had in fact paid out all of the
cash received by them on the day the
bank clased, on the checks of other
persons presented for payment upon
such day, II could not be held that tn.
money deposited ON the last day ever
passed into the hands of the receiver
This ruling appears to be fair for the
reason that only about $500 in cash
was received by the bank on the da,
1t closed, while at least $1,000 was ac-
tually paid out. AS to the checks
upon other banks deposited in the
Bank Of Silverton on the day 1t closed
the court held that since the saio
checks had not been collected OF
cashed at the time the receiver took
hold OF the bank. but were afterwards
collected by the receiver himself, the
ntle had never passed to the bank,
and that the proceeds of those checks
must be returned.
Upon the presentation OF the re
ceiver. the court allowed the receiv-
er salary OF $500 for one full years
work, and allowe ed to his attorney
Benz. b. Russell. the sum OF 5000 for
one years work. This was the full
amount requested by the receiver and
his attorney.
The court also ordered at a fee
OF 5000 be allowed TO W. N, Searcy for
services renaered in the case for the
benefit of the estate generally.
After paying all preferred claims
and paying all expenses Of administra-
ton OF the estate up to date it was
found thar a first dividend OF nearly
- per cent could be paid to the cred
itors. And on account of the work OF
the receiver in saving margin out
OF the Denver property and in discov
erirs notes and other property belong
ins to .he bank of which there was no
re.urd whatever in the bank. it is
now estimated that the final dividend
may be as large If not considerably
larger than the first dividend. but as
the final dividend has to be made out
ct property 1t will take considerable
length of time to sell and dispose oil
the notes, stock, town lots and mining
property which constitute the balance
OF the banks estate.