The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-25
In Refusing Receiver for
Southern lnterstateBank
Judge SO Provides.
DIRECTORS MAY
HANDLE NO FUNDS
This Provision Incorporated in
Decree Of Court in Case-Col-
lateral Deposited for Loans
Said to Have Been
Valuable When
Loans Made.

Contrary to expectations and the an
nouncemenl made on Thursday, Attor-
ncy JohllTxA. Lamb did not apply to the s.
Supreme Court Of Appeals of virginia
yesterday for a receiver to take charge
of the assets of tha Southern Interstate
Bank, and for an Injunction restraining
the Bank of Commerce and Trusts from
carrying out the contract 1t had en-$
tered into with the Southern Interstate
Ranks directors.
S Mr.. Lamb. when asked as to his
failure to present his bin to judge OF n
the Appellate Court yesterday, stated
that he was awaiting further Informal
tion before acting. Just when he
would probably take further steps in
the matter he was unable to state.
A feature of great interest in con-
nection with the refusal by judge
Grinnan to appoint q receiver is that
In the decree entered In the case he
amends the contract entered into by
the Bank Of Commerce and Trusts, and !
the directors Of the Southern Inter-
state Bank to the extent OF ofsrequirinG
the Bank Of Commerce and Trusts, af-5
ter having paid off the depositors OF the
Interstate Bank, to account to the court
| thereafter instead Of to the dlrectors
Of the defunct bank. 9
This is, important as indicating that
| the court IS unwilling to turn over
the proceeds from the sale of the banks
assets to the directors of the Inter-
| state Bank. In fact he SO stated IN
court In announcing his decision In
| the matter This Is almost equivalent
to receivership In fact, 1T is pre-
dIcted by soma that as soon as the
| claims Of depositors of the Southern
Interstate Bank have been satisfied q &
| receiver may and probably will Ge
appointed. In any event the assets
over and above the satisfaction Of the
claims OF depositors. will be disposed
of and dlsbursed under the direction
4 Of the court.
Judge Crump Not Insolvent.
1T develops that DR.. 81 sGaleskl ana /
Judge Bev. IT, C:rump did not file. M
swors to the bill of complaint In court
Thursday, but merely filed affidnvits-s
In Judge Crump's affidavit lie aftirins
/ tina he is not insolvent,s and so shows
and states that he did not understand
why his name should be dragged into
tho bill Of complaint, since he had
|never owned any interest In the bank.
or been connected wlthiait in any way
save as a customer and patron. He
had had paper handled by the bank.
| but had never defaulted In his obltga-57
tions. but hn alwaysfmet them.
DR. S. Galeski. in his affidavit made
before Notary Public Powhatan James,
states that his earning power is, and
always has been, very considerable.
and that he has never failed to meet
any Of his obligations as they became
due and payable; that he is fully satls-
fled that he will be able to meet all
|ohigatlons that may mature in the
future in the same prompt manner
| that he has done In the past; that he
has been dealing with other banks In
the city Of Richmond, in which ac-S
commodations of large amounts were
extended to him. and that he has never
failed to take care of any Of these
obi cations; that 1t Is not true that he
has recently sold his real estate In the
city of Richmond but. as q latter Of
/ fact. several years ago he did sell the
equity of redemption in the house and
lot on Grove Avenue, In the city Of
4 Richmond. then owned by him. for
which he paid $4,000. and ON which
i there was at the time of the sale by
/ him a lien OF about $1,000, the exact
/ facts and dates of which will appear
4 from the records in the clerks office
4 Of the Chancery Court of the city OF
j Richmond; that this was done long be-
,Ifcre the Southern Interstate Bank was
! carries large amount of life insur-
ance on his life, which. in the event of
Il his death, would take care Of any and
III, of his obligations should his estate
II fail to do so; that practically all of
!, his obligations to said Southern Inter-,
!, state Bank are payable monthly, and
have been promptly met by him as
[ thoy became due
| Answer of Bank.
; After the session of court on
Thursday evening at which Judge
q Grinnan entered the decree refusing
Il receiver a partial answer of the
Southern Interstate Bank to the
Il amended bill of complaint was filed by
Mr. Hill Montague, It's counsel, which
Is In substance as follows: The loans
made by tho bank to Messrs, Galeski,
Crump and Montgomery were made
many years ago. and the notes now
evidencing these loans are renewal
notes. and that all the parties named
borrowed the money originally on
collateral which was at that time con-
sidercd good, and that all OF them
have been curtalllng their obligations
regularly and have never failed to care
for their paper promptly on maturity;
that they paid the same discount to the
4 bank that other customers pay. and
that when tho collateral originally good,
became impaired In value 1t was
thought best by the officers of tho
bank and to Its interest not to em-
barrass these gentlemen. but to allow
them to gradually curtail their indebt-
edness; and that all the parties were
men Of financial standing and OF good
earning capacity,
Collateral. Depreciated.
1t was stated yesterday that Judge
Crumps loans. which have figured cons
spicEously In the hin OF complaint
against the Southern Interstate Rank,
We're made originally some years ago
from another bank, and were acquired
by the Southern Interstate Bank among
| sr,pi Ioc csSc In ~