New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-11-17

amount to any officer or director without the
approval of majority of the trustees. The
capital stock Of the jenkins Trust Company is
only 100000, and its surplus $4,000. 1t is
claimed by the trustees that they knew nothing
about these illegal loans to the president
William r. Montgomery president of the
Hamilton Bank, said last night -Four days
ago the State Superintendent of Banks and the
Attorney General were told by James NJ
Clifford, of Clifford, Hobbs & Beard, counsel for
the Hamilton Bank that contract had been
entered into between a majority of the stock
holders of the Hamilton Bank and a number Of
strong downtown banking interests. who agreed
to put up $1,500000 cash, provided the assents
or 40 per cent OF the banks depostors to the
plans for resumption of business were de-
lvered 10 them. They were also informed that
one OF the strongest men In New York State had
agreed to accept the presidency of the Hamilton
Bank
These downtown banking interests demanded
the approval of the Attorney General to the new
form of assent. For the last four days we have
been trying to get in touch with Attorney Gem
eral Jackson, but it has been impossible TO find
him, although We had difficulty in getting at
him before this
Attorney General Jackson knew that the
men who Were coming into the directorate Of
the Hamilton Bank included three presidents Of
Clearing House banks, one member of the Clear
Ing House committee and the president and
vice-president of big trust company. Not
withstanding this knowledge Attorney General
Jackson refused TO reply to our attorneys or to
grant the desired interview with him. We
tried best TO locate him. but were unsuc-
cessful."
Mr.. Montgomery said that he felt that some
thing up when it became impossible to
reach the Attorney General. He considered the
action of the Attorney General especially I'M
kind. the application for receiver might
cause the downtown bankers to reconsider the
plan to take over the Hamilton Bank. He re-
peated his assertion that the bank was solvent
and that no irregularities would be found
President Montgomery said he did not wish to
criticise Mr.. Jackson. but he was sorry the bank
had not a little more time allowed 1t before re-
ownership proceedings were begun.
James III. Clifford. of Clifford. Hobbs & Beard,
counsel for the Hamilton Bank. said last night
that he thought Attorney General Jackson had
acted too hastily. He said he felt confident the
affairs of the Hamilton Bank would have been
Strengthened cut SO that II could have opened its
doors If the Attorney General had held off few
days longer Mr.. Clifford said that he had felt
for several days some such move on the part Of
the Attorney General was in contemplation
APPEAL TO DEPosITORs.
President Montgomery mailed the following
appeal last night for cooperation to every de-
positor in the Hamilton Bank:
temporary receiver has been appointed by
the court for the Hamilton Bank, and order
to show cause why the temporary receiver
should not be made permanent has been issued
returnable on November 80 next There is only
one possible way TO prevent the receivership
from becoming permanent and the Hamilton
Bank from remaining closed and that is for
those depositors who have not signed the as
sents to the committees plan for reopening the
bank to Immediately do so, and forward them 20
the committee at once. By signing these as
sents depositors in no way prejudice their in
terestS under the receivership. The banks
sets belong first to the depositors, and the OBJ
ject of the committees plan OF opening the bank
for business is:
First-To be able to pay the depositors quicker
than it could be done under a receivership.
Second-To prevent costly legal and receivers
fees, which must be taken out Of the banks
assets first before the depositors receive their
money.
have consistently and repeatedly urged upon
you both by public meetings and by circular let
tiers to attend to this matter at once, knowing
that, with the bank open for business the de-
positors would be sure of obtaining their money.
With the bank closed. however, and the receivers
compelled TO realize its assets through forced
liquidation in these times, do not know what
the outcome would be.
Those depositors who have been delaying in
the hope that the beank would open without |
them signing, and thus obtain preference over |
the others who have signed, are doomed to dis |
appointment by the action of the court. There |
is but one way now, and that is for every de |
postor to sign the assent to the plan at once and
forward 1t TO the committee.
It was on October % and 26 that superin- |
tendent Williams of the State Banking Depart |
ment took charge of these six institutions Since |
the suspension the directors and depositers have
been hard at work on plans to rehabiitdte them |
and permit an early resumption of business, and |
in some cases the outlook was understood to be |
bright. Superintendent Williams and Attorney |
General Jackson have been cooperating with |
the directors and the stockholders to this end. |
The inability to obtain cash in the present I'M
settled financial situation of the main |
causes of delay IN resuming business
Philbin, Beekman & Menken. special coun-
sci for the International Trust Company and
the Brooklyn Bank, said that the assets of