New-York tribune., 1907-12-13
RECEIVERS PERMANENT
BROOKLYN BANK CASES.
Justice Belts, at Kingston, Vacates
Order of Justice Smith.

Kingston. y. Y, Dec. 12.-At the close of
arguments in the Brooklyn bank cases to-day.
Judge Belts vacated the order of Justice Smith.
If the Third Appellate Department, directing
Attorney General Jackson to show cause, before
Justice Fits at Albany Saturday why the
trial of the action should not be transferred to
Kings County, and appointed permanent re-
cejvers for the Brooklyn Bank and the Inter
national Trust Company. Fer the former in
stitution Charles NJ Higgins and Bruyn Has
brouck were named receivers, and for the
latter Goodwin Brown. Of Yonzers, who pre-
viously had served temporary receiver
Previous 10 the naming of the permanent re-
ceivers Frank H. Platt, counsel for certain
stockholders of the Brooklyn Bank, opposed the
anpointment of Mr.. Higgins, the ground that
he was interested in that bank and the Inter
national Trust Company, and in such capacity
would be compelled both to sue and 1efend him
self as receiver. Charles NJ. Stafford, attorney
for the depositors, urged Mr.. Higgias's appoint
rnent saying he was the largest psitor. was
Endorsed by many Brooklyn civic associations
and had been active in efforts to reorganize the
institution. According to Mr.. Stafford, con-
servative estimates cf values made at the in
stance of Gepositors showed assets OF s2.013,
12s 81. and liabilities of s1sO2,s ,ss1 Ia The max
were as good gold, but slow.
Charles A. Dolson, counsel for Temporary Re-
oeiver Bruyn Hasbrouck. said the latest exami-
nation showed assets Of 81 .41S,572 and liabilities
Of Sc 2S217S The valuation of assets had been
made by disinterested persons. William Cow
was liable TO the bank, he declared. for S11S.ooO.
and ex-Pres.dent Jones OF the Oriental Bank
for $4,000 The International Trust Company
had been organized on wind and securities OF the
Brooklyn Bank. MI. Dolson charged. and he
said also that the books of both banks had been
faisiied.
There was no argument in the international
Trust Company cases. Judge Belts decided that
IL Mr. Hasbrouck were removed as temporary
receiver of the Brooklyn Bank he and his coun-
sci must be paid out OF the depositors' funds
IL superseded now the depositors would get TOT
their money only two reports which ne had
made Mr. Higgins had been put to considerable
e.nense in conducting investigations. and was
urged as permanent receiver by reason OF MS
knowledge of Brooklyn affairs. the court salo'
and he therefore would appoint both MessfS-
Hasprouck and Higgins permanent receivers
recurring Of each 100000 bond. Mr. Higgins
having given notice that he would serve with
o,,t coropensation the court took that into con-
sideration In making the appointment
In the case of the International Trust COM
nanv Receiver Browns bond viii be the sahie
as when he was appointed temporary receiver
Arguments viii he heard to-morro" on mo
,,ons TO appoint permanent receivers for the
Williamsburg Trust Company Hainii'oh Ifus'
Cornnany and Excelsior Fire Insurance Com
pany.
BOROUGH BANK CASE ADJOURNED.
In the case of the Borough Bank adjournment
was taken this morning until next Iuesoay
morning on account OF an order granted Iues-
5.v nv Presiding Justice Walter l. Smith of
the Appellate Division. Third department
s,avinr all proceedings until determination of
a motion to be heard by Justice Fits, at Al
bany Saturday. changing the venue from Ulster
IA Kings Comfy Deputy Attorney General
William r Mackey, also served with an
order granted wednesday afternoon by Justice
Carr at Brooklyn, to show cause why the tenn
porary receivers of the Borough Bank, isaac
" Cox of Ellenville. Ulster County, ano henry
A Powell of Brooklyn. should not be removed
forthwith and submitting the names Of any TWO
OF the following for appointment in their stead;
Controller Herman A Metz Charles u. Bal
manno vice-president of Mechanics Bank OF
Brooklyn; John II. O'Rourke, builder, Of BROOK
lrn. simon J. Harding. retired banker. of
BROOKLYN Surety bonds in the sum of S1Ooooo
each were presented by the proposed receivers.
Deputy Attorney General Mackey urged Jus
tice Belts to vacate Justice Smiths stay. He
had no criticism to make of the court for grant
ing this order but he criticised Paul Grout the
attorney of record who obtained it on behalf of |
the bank. and also Edward II. Shepard. who had
appeared at the Albany hearing on November 80
for the Borough Bank depositors. If it had then
been intimated that this delay was for the pur-
pose of changing the venue. he said, or Tor
substituting other receivers, would have op- |
posed adjournment to this time, and If that ap-
plcation was not made in good faith, as appar- |
entity it was not the court would not so readily |
have granted an adjournment The depositors |
who appeared then with proposed plan OF re- |
organization do not appear to-day" He urged |
that Justice Smiths order was Ineffective. be- |
cause IL recited that orders had been granted by
Justice Belts instead of Special Term" and |