The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-12-12
INVESTIGATION
BANK FAILURES
IN6.NIE [: YORK ! | I I,
'Caus Sc q p anic
q o Be Sought

NEW YORK. Dec. 11-Arguments
on tho orders to show cause, why the
Temporary recelyerships OF SIX bank,
inb institutions of New York City,
which succumbed during the recent
panic. should not be made permanent.
Will be heard before Supreme Court
Justice Bolts at Kingston, beginning
Tomorrow. The cases Of the lnterna.
tional Trust Company, the Borough
Bank OF Brooklyn and the Brooklyn
bank will be heard tomorrow. The
Hamilton bank. case will be considered
on Friday. and the affairs Of the VIII
Sllamsburg Trust Company and the Jen-
$kins Trust Company will be investi-
gated on saturday. On the latter date.
the motion to appoint permanent re-
scelyers for the Knlckerbocker Trust
Company will also come up for hear
ing before Supreme Court Justice
Clark
II Edward NJ. Shepard will represent
the depositors OF the Borough bank
:atthe hearing and will urge that the
Institution is solvent and should be
be allowed TO reopen. The plan an
nounced by the depositors for a re-or-
iganization Is to pay 10 per cent. In
cash, ID per cent. In four months, 20
4 per cent. in eight months, 25 per cent.
In twelve months and 30 per cent. in
sixteen months.
1t is ALLEGED by representatives OF
the State that the bank Is hopelessly
ilnsolyent aud that Its funds have. been
managed In criminal manner. The
examination made by the receivers
showed that, out OF s3,1SG.S63. bills
discounted. more then feel obliged TO
deduct on account OF paper regarded
as forged, fictitious or OF doubtful val
ne. s1,3S2.S42: that the realized value
of the total amount is s1.SO4.O2l; Of
the S4S2, $50 of loans made on demand.
S7S.5S4 had been deducted on account
of worthless paper. such us collateral
held in gold and silver mining stock,
oil paintings, ETC.; OF the sums due
from banks. given as slSS,003. s15S..
1O4 had been deducted on account OF
offsets and receiverships; Of the s14S,.
900 credited TO stocks and bonds. but
one bond of 81 900 was on file with the
State banking department. 1t is al
legged by the receivers that the total
deficiency Of the bank is $780, GO.
{ Bx-Judge Alton B. Parker is chief
counsel for the Hamilton bank, and
will urge that that institution was
forced to suspend business only be-
cause the bank through which 1t clear.
ed could no longer serve in that Gu,
paclty. Judge Parker, declares that
the $4,000 depositors are anxious for
the, bank to reopen Its doors. and that
he Is prepared to show that there was
nothing Of a fraudulent nature con-.
nected with the management of this
bank.
The attorney generals Office will
make a hard fight aaginst the accept
ance of the plan ofre-organization sug.
gested by the Williamsburg and Jen.
3Nns Trust Companies. In regard to
the williamsburg institution Deputy
Attorney General Mackey alleges that
1t had ''loans credited to clerks and
roustabouts on security of cat-aud.
dog nature" and that "the directors
and their friends grabbed their money
Just before the bank closed" One Of
the directors. Mr.. Mackey alleges, is
a large, debtor to the bank.
"If the denositors and others knew
of the condition OF this and others Of
these banks they wouldn't approve Of
the so-called plans OF reorganization"
declared Mr.. Mackey.