New-York tribune., 1907-10-26

he says 1t is his belief that the Knickeroocker
Trust Company has upwards Of $60CO0Ooo de-
posits belonging to many thousands of deposit
ors, and adds:
Unless the court grants an Injunction re-
straining the company and its officers from
doing business and restraining the depositors
and creditors from institutlng any action 1or
the enlargement of claims, a multiplicity Of
actions will be brought, the assets viii be mis-
appropriated and wasted and inequality and in
Justice Will result to creditors and depoSltOrS.
The Attorney General goes on to say that the
bank examiners report has satisfied him that
Il is unsafe and inexpedient for this company
to continue doing business, as II has not suff1-
cient funds to make payment promptly and in
full" For these he asked for the an
nuIment of the charter of the company and the
distribution of its property according to the
Judgment of the court.
When Attorney General Jackson was seen at
his office yesterday afternoon and informed OF
the criticisms of his action. he said:
1T only after a careful consideration and
consultation with prominent bankers that l Sc
lected Messrs. Barnard. Ide and Thalmann as
receivers If anybody nut the Knicker-
booker Trust Company back on a safe footing,
they can. There is, insist, no question of
politics either in my application for receivers
or my selection of men, which has been ap-
proved by the courts.
IF anybody is looking for motives in my
tion," continued the Attorney General ''it may
be well for him TO consider the motive OF the
man who made repeated endeavors TO get a
questionable paper from the Knickerbocker
Trust Company after Mr.. Skinner (the Acting
Superintendent of Banks) had taken charge of
its affairs
This man." said Mr.. Jackson. went to the
examiner Of banks who had been placed in
charge and asked for certain paper. The
aminer, however was taking no chances, and
consulted the Acting Superintendent of Banks
before taking action. He, in turn, consulted
me. and advised him not TO grant the request.
THAT paper was an Illegal check for $1,000,
900. The who made that request Is the
man whose name was suggested to the
third receiver Of the Knickerbocker Trust Com
panv by interests identified with its past man
agement"
The Attorney General steadfastly declined TO
make public the name of the individual who
had tried to get possession of the Illegal 81 600
900 check, but said he would do so If the d.
rectors Of the institution gave him any trouble.
When asked about the criticisms Of the d-
rectors to the alleged illegaIity of his action
in applying TO the court for receivers without
giving notice OF his intention, Mr.. jackson said:
There is nothing In the law that compes
1 apply for receivership or that says I must
notify them of such intention.
"As to my reasons in going to Richmond
County to apply for the receivers, have the
right to make application IN any county in the
state where justice Of the Supreme Court Is
sitting. l had a special reason, however, in
avoiding the courts of New York County in
this instance, and when It appeared plain to
that the persons who were planning to re-
organize the company were not consulting the
interests Of all the depostors 1 determined to
make my application to a court where 1 was
reasonably assured beforehand that a proper
suggestion as TO receivers would be enter
tanned"
The directors Of the company were just fin
ishing their deliberations which had lasted all
the afternoon. when they were told OF the Attor-
ney Generals reply to the criticism on him
self There another hurried consultation,
| after which several Of the more prominent Of
! hcials expressed their feelings the subject
of the Illegal S1OOOOOO check
This is outrageous" said A. Foster Higgins.
who succeeded Mr.. Barney as president of
| the Knickerbocker Trust Company. "It is moth
ing more nor less than a downright lie. No
one, so far we know, has tried to extract any
paper from the custody of the company" This
was assented TO by /. Townsend Burden, one
of the directors who had been present at the
conference
When Informed that Julien r Davies Of the
law firm OF Davies, Stone & Auerbach, counsel
for the KnickerbocZer Trust Company, was the
one who, Attorney General Jackson said, had
suggested the appointment the third re-
celVer of the man who had tried to get the
check. Mr.. Higgins said that, so far as he
knew Mr.. Auerbach had had no consultation
with Mr.. Jackson in regard to a possible re-
ceivership. He did not say that Mr. Davies
had had no such consultation Mr.. Auerbach
! is member of the board of directors of the
Knickerbocker Trust Company.
Julien T. Davies, when Informed of Mr. Jack
sons statement, made call upon the Attorney
General After the consultation he said that
Mr.. Jackson had denied making the statement
| refused TO discuss the subject when seen at the
Hotel Manhattan last night
Mr.. Davies said, after talking with Mr. Jack
/ son: This is the first 1 have known of any
/ questionable paper or of any man having made
application for such 10 the bank examiner or
/ the Acting Superintendent OF Banks II I did
suggest the name of man who had done such
a thing, did not knowing anything about
the real situation"
The directors of the Knickerbocker Trust
Company, though they did not pretend to con-
ceal their disgust at Attorney General Jackson's
action in applying for receivers, had no criti-
cism to make of the personal fitness of the three
appointees Of the court. No better selections
could have been made, it was asserted but the
directors were of the opinion that the action OF
Mr. Jackson would be contested in court on No
I vember 2.
At the meeting committee OF seven members
OF the board appointed to take Immediate
measures looking to q resumption of business