New-York tribune., 1907-12-14
DECISION IS WITHHELD.
IN HAMILTON BANK CASE
offer Of SI,OOO,O00 If Institution
Reopens, Says Parker.


served decision to-day On the application of the
Attorney Generals Office for permanent receiver
FOR the Hamilton Bank OF New York CITY The
principal arguments for and against the receiver
snip were made, respectively, by William F. Mac
key special counsel for the Attorney General and
ex-Judge Alton Is. Parker, who has been retained
tr the bank and committee depostors
Az the close of arguments to-day, during which
NT Parker sought show that the suspended in
stltution could be placed secure footing IL op-
ro-tunity was offered, and Nj Mackey insisted
that the best interests of the community as well
As those Of the stockholders and depositors de-
rnarded that the banks affairs be wound Up
Justice Belts announced that he would be unable
70 90 the subject he desired before Wednes-
6ay of next week
In the case the Excelsior Fire Insurance Com
pany. in which Eugene Y. DAILY. of New York.
appointed temporary receiver, and In which pro-
ceedinss for voluntary dissolution have been be-
gun by the stockholders. by agreement of ex-
Justice D. Cady Herrick, for the company. and
Charles A Dolson, for the Attorney General,
decree Will be submitted later vacating Mr.. Dalys
appointment and disSolying the corporation, under
court supervision.
MI Parker made the principal argument this
morning. which occupied and a half hours
Associated with him were James NJ. Clifford and
Francis A wins1ow. Mr. Parker said he was pre-
pared 10 show not only that the Hamilton Bank
solvent but ready TO pay oepositors when the
hank reopened. The bank and its six branches in
Manhattan and The Bronx had eighteen thousand
depositors. representing S50o0.ooo of deposits OF
these, depositors representing s4,25ooo0 had signed
agreements resumption business. and the
balance of s750, 900 for which consents OBJ
stine6 sIsS,o0o held by the state and city of
New York and By persons authorized TO
sent The plan Of resumption payment OF
10 per opening the DOORS Is per cent in
three months. Is per cent in six months. and the
balance. so per cent, within year from the date
when Frank White Of Albany, temporary receiver
took possession Mr. Parker urged Justice Belts TO
r-o So$- roIa foore6 in he
case of the Ulster County Savings Institution whose
bank building is across the street from the court
house where the argument took place This bank
he said. had closed number of years ago, and a
temporary receiver was appointed A plan pre-
pared by the late Judge Schoonmaker. the banks
counsel. whose Office Justice Belts then
studying law, similar the present plan y
Supreme Court justice blazed the way for saving
banking institutions in the future. and through this
action by a courageous Judge the Ulster County
Savings Institution to-day the most successful
in Ulster County. Mr.. Parker then, now. a
OF that bank
MANY LONG AFFIDAvITS READ
Many long afidavits read by Mr.. Parker
Among them that of James NJ Clifford, who
stated he had secured agreements with four banks
10 furnish & ,oo.do0 for the Hamilton Bank imme-
diately its being authorized to resume business
A report Of the bank made by bank examiners
on November stated: The general character OF
the unlisted loans is good IL the bank continues in
BUSINESS, dnC there Would sildL losses.
but II compelled TO liquidate II is impossible 10
estimate the loss" Mr.. Parker asked how much
money the receiver had hand and Receiver
white replied. 'sSos.oo' Mr. Parker said the
greatest amount that could be withdrawn in the
first three months would be s. 11s,co0 The amount
hand plus the s1.co9Oe0 agreed be furnished
by other banks would more than meet this
An affidavit Of Frederick D. Ives first vice-presi
dent reviewed the heavy Withdrawals from Octo-
her q TO October q, inclusive, after which the
b-- ffaEI n .-rffTa
6rawn. In case Of resumption practically all out
standing bills could be collected. Answering cTiti-
cisrns that had been made Mr.. Ives stated IT vas
general rule in all New York city banks that
loans would be made 10 depositors governed by
;he amount Of their deposits. provided it was
backed by collateral. TO the extent OF five times
such depositors' usual deposits. With few excep-
rions, al persons obtaining loans either de-
rositors or persons Of sound financial standing
Loans 10 z, r Thomas o. Z. Thomas, +. Au-
gusru. Henze. Martin D. Fink, David A. Sullivan
George T. Brown, Otto Heinze and others were
defended by MI Ives because the borrowers had
deposited collateral for more than the Of
loans.
lfdarits Of the managers of each branch stated
that loans In practically all were more than
covered by collateral deposited security. Elim-
mating the Thomas and Heinze loans. said Mr.
Parker the afhdayits showed that most of the bills
were home paper, discounted for regular deposit
OTIS. all carrying prosperous businesses in Man
haitian and The Bronx, who would pay notes
until bank balances should be allowed Offsets.
He reviewed the financial situation just prior 10
the closing Of various banks on October "a. and
said that closing in such crisis was not evidence
OF insolvency. In crises such as that which had
:ust swept this country, he added, the United
States government putting out helping hand
Was II the policy of the State of New York because
such & situation TO crush out of existence one
OF its banks?
FINANCIAL SITUATION REVIEWED.
Deputy Attorney General Mackey, in reply also
reviewed the financial situation of October Nine
eizte banks and one national bank had suspended
ne sad but three had submitted plans for Teor-
ganization to the Superintendent OF Banks whicn
were apuroved and these banks had resumed
suricieut notice had been given the remaining
banks which had submitted only oral plans. but
down .o November l3 no tangible plan was sub
rnitted Notice having been given that notice must
be r,ven nv November H. at ! p. which was
no. cor,1pliec with. the State Superintendent OF
Banks had Informed the Attorney General VINO
had applied for temporary receivers
s.on.sn,,,ng his argument this afternoon. Deputy
Attorney General Mackey said that much stress
had been laid Oh the report o. Clark "iiiafns'
Superintendent of Banks. but that inns report was
Tn.a. sir days after closing, IN which time il was
,,,-.s,,,. IN show the real transactions. manage
80 60 violations One-thrd OF all loans were
.,--,-.s NV mortgages on real estate, ssoo.eo OF
which we're second mortgages a communication
., N. Attorney General from Superintendent VIII
.a,,. stated that 4. would be unwise TO resume
ujtt,r. cash considerably Ia excess OF 10 per cent
~ .he amour. OF deposits, certainly not less ehan
xoNooo Mr. Clifford had presented pan ioi
reorganization TO Superintendent "iilats' Du' 'ie
fact that II Clio not meet his approval was evi-