The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-01
PEANFOR FHR KNICKERDOCKER
DgREcTORS WOULD PAY SMALL
DEFOSgTORs orr ~ CASH

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The Va ri0ua committees 1s depoaieorA IN
the knickerbocker Trust Company which
have come into sxistenos in he last few
dags have joined forces and theae mes
have bcen selected to represent tho different
interests a. a united committees;
Joseph J. O'Donohue. Peter DooiRer. Jr.
Andrew Freedman. who rspresenfsth tho Inter
borough Metropolitan Company. which has
n deposit Of t2OO .OOO In the Kn~ioNerbocker
Alfred Nathan II the International PumT
Company. Herman SielckeR Of the Coffee
Exchange. NJ. ". Grosgman Of the law firm
Of House. Grossman 4 Vorhaus and Charles
A. Brodek Of the law irm Of Wilcox a
BrOdek.
This committee represents deposits In
excess Of 81. OOO,O O0 II met yesterday and
selected samuel Untermyer as lie counsel
Mr.. Brodek. the secretary Of the committee
said that he and Mr.. GrossmAn are actinR
on the committee for their clients. who in
clude a large number Of the smaller de-
positors.
" are now working upon n plan fof
the rehabilitation Of the company" said
Mr.. Brodek. speaking for h committee,
"but IL must be evident to all that after
what has happened the company will not
be strong enough to open it's doors n sue
coed in doing business unless a large amount
OF additional capital is secured so as to
make II one OF the strong companies. Ii
has a valuable good will, which ought 10 be
preserved. Its business az trustee. which
requires no capital. is said to yield n net
profit Of $3.50. 900 a ear. II has over a.
ono depositOrs. which is in itself an enor-
mously valuable good will II II can only
be preserved.
plans. The committee must first know
through an Investigation conducted by it,
own accountants what is the exact situation
OF the company. Then and not till then
will it be possible to put forth an intelligent
plan. To that end a Heading firm of English
chartered has been employed,
at il the purpose OF the committee so
fat "a practicable to cooperate with the
committee of directors in the hope Of re-
facilitating the company, hut the interests
OF the depoaitors are not best served by
hasty and immature action"
The English accountants the committee
has engaged to make an investigation
are Touch. Niven = Co. They viii! begin
Wort, at once.
Ilt UtW CbllNlllllbFt htil bhb Nt hhNNf-
tisement TO the newspapers last night
advising all depositOrs to defer action
until the committees reports and outlines
it's plans. The committee its
intention Of adding other depositors' names
from time 90 time.
The checking COMMITTEES Of the Knicker-
booker board on directors gave out this
formal report yesterday:
y he undersigned, a committee appointed
by your hoard to xamin into the condition
- a. g. - L.. AAa 49,.
that from the statements furnished by the
officers and employees Of the company
and making allowance for the short space
OF time at their disposal they have in
vestigated the amOunt u to the company
and the value OF the securities and Dbliga-
lions held by il, and they confidently believe
that after marking OF all probable depre-
Citations the assets of the company, il care
fully and conservatively handled. will
realize a sum considerably in excess Of the
annount due to depositors."
The report il signed by G.. Louis Bois-
Asevain, William A. Tucker, c. p. Perrin.
E@eppld WHllach and John Magee.
The directors will probably announce to-
day their plan for the rehabilitation of the
IL il understood that this plan
contemplates paying OIL in cash all de-
positors with accounts OF less than 81 900
and asking the larger depositorB to leave
a large Part of their deposits in on time.
There are 10000 of the 1860 depCsitors who
nave accounts Aths IMAM Nl,ubU. Inc aver
age OF the 10000 IL said to he about 5000. 1t
would apparently require at least 81, 200. 900
in cash To meet this one end Of the rehabili-
tation plan.
The three receivers, Henry G. Ide, Ernst
Thalmann and George l.. Rives. were in the
Knickerbocker Offices yesterday for the
first time. There was some delay in the
fling Of MIR. Rives's pond for $500. 900. and
the receivers consequently did not take for
NAL possession. They viii do that to-day.
The general opinion yesterday was that
the appointment Of George l.. Rives as the
third receiver represented not the choice
OF the Attorney-General but of Justice
Clark himself. One Of the Attorney-Gen-
eral's deputies said that he understood
that Mr.. Rives's name was suggested by
Justice Clark. Mr.. Rives's appointment
was not made. Of course, until after it had
become Known that W. Bourke Cochran
q the guiding spirit behind the Attorney
Generals recommendation Of Mr.. Ide.
MIR. Cockran's father-in-law. and possibly
OF Mr.. Thalmann also.
II was learned yesterday that the loan
which the Michigan United Railways Com
pany has with the KniCkerbocker mounts
to nearly 81. 1000 900. This is the company
in which John G. Tomlinson. Cockran's
former partner, is interested. The loan
h. on an underwriting.
One OF the loans in the Knickerbocker
10 to o +. Carroll, a particular friend
of Charles W. Morse. This loan is under
stood to be about 500 900. 1t is secured
largely by American Ice tock.
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