The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-12-18

TO ASCERTAIN EF IT Is FEASIBLE
TO REOPEN.
walters. Brewster to Pass Upon the Figures
Indicating sOIVency which the DepOsE-
tors PreseOtod-Even the re-
celVers Promise TO Aid Resumption.

an0tc9tuNg S0iVehcY which me DepOsss
tors Have FreseRtod-Even the RE-
celVers Promise 60 Aid Resumption.
KINGSTON. N. Y! Dec. 1.-THE last OF
the Brooklyn bank cases. that OF tho
Borough Bank. was before Justice Beta
to-day and the largest following from
Brooklyn which has yet appeared at the
hearings was present. No decision as to
a permanent receiver was made, but on
the suggestion Of Edward M. Circuit
Walter Shaw Brewster OF Brooklyn was
appointed n referee to examine the assets
of the bank with a view to ascertaining
if the bank was able to continue in business.
"A report TO be made to Justice Belts in
Kingston on February g.
Edward N. Grout appeared for the bank
AZ special counsel to argue the question
~ vacating the various stays granted to
the bank by Justices Carr and Smith. while
Paul Grout represented the bank as counsel
in the matter Of making permanent the
receivers, Powell and Cox. or substituting
! other receivers in their place. Edward
NJ. Shepard appeared as special counsel
with Paul GrOut. Ernest =. Seelman APP
peared for the depositors. Besides these
men a number Of the depositOrs were on
I hand. including Nice-President W. s. Hurley
and Samuel Whitehouse. the regular counsel
for the hank.
The entire morning session was taken
up with arguing the various stays. which
presented a legal tnngle which it took some
time 10 unraVel. Deputy Acknowledgement
Mackay. who has had all the bank cases in
charge, asked for the vaCating of the stays.
! After two hours Of legal fencing between
Mr.. Mackay and +. NJ. GTOut. Justice Belts
held To tho ruling that he has followed
throughout and vacated all stays.
When court recOnvened after recess Paul
] IARauNW hns-uE eN 49, a. -. .as- 49,. -A...
financial condition of the bank and what
is needed for il TO be able to resume. The
figures presented by MIR. GrOut showed
total liabilities Of g., $50. 8i3.O5. The total
cash resources of the bank were put as
S3.B95 ,JO7.4S. The Borough Rank has a
plan which c~Ontgynplates the payment of
~ per cent. to depOsitOrs on opening and
then deferred payments at stated periods
Of - per cent. 70 meet these obligations
To the depOsitOrS and the other necessary
disbursements SSSS, Oji .B2 il needed.
Mr.. Grout said that the cash on hand
was 1888 ,23l. From the sale of securities
imTcdiat ny available and from the col
lection of notes, which the makers thereof
have promised to pay AT once, Mr.. GrOut
was able 10 show the Court resources Of
S9g5 $50, which left Il surplus of SlO7, l98.
Mr.. t'rOut read a number Of
Of real estate experts and appraisers OF
bonds and securities showing that the
values given in his statement were con-
SENTATIVE. Mr.. Shepard then took up the
argument and continued TO offer proof Of
the sOlvency of the bank.
IL was apparent to all in the court room
that Justice Belts was more impressed
with the figures presented than he has been
in any other case.
He was about to adjourn the hearing
until Tomorrow when T.. NJ. GrOut made
his suggestion for a referee TO examine
the securities offered.
IF your Honor, pleases." said Mr. CIRCUIT.
we DO not wan any n 20 take these
figures at our valuation, and | would sug-
gest to you that "A referee be appointed to
examine them; some man familiar with
local conditions. the receivers
can he continued and go ON with their
work"
This was the first time that this plan had
been put before Justice Belts, and there
was much surprise when he
at once that it met with his unqualified
apPToval;
valua ton Of these securities from the
statement 3 presented" said Justice Belts.
The plan suggested seems TO me to offer
"A fair solution of the matter and in a good
one. If this bank il able TO resume. and il
the statements presented in ~affidavits to
this Court are true, il seems 10 me that 10 ia
solvent, and il is the desire Of the Court and
the ACKNOWLEDGEMENT to aid its resumption
in every way. and | therefore grant the re-
quest"
Mr.. Grout made this statement after
court had adjourned:
W are positive that our valuations Of
securities and real estate ave been con-
sentative. We also have gained six weeks
in which to perfect our plan of T~eorganiza-
ton, and | can say without any reservation
now that the bank will be able to open its
doors again and continue"
Those depositors who were present were
iubilant over the outcome and both MIR.
Mackay md Receiver Powell assured the
lawyers that they would aid the banks re-
sumption in every way