The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-12-12
INVESTIGATION.
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Ca use Of P anicc
Il Be Sought


Il NEW YORK. Dec Arguments
ssor the orders to show cause why the
temporary receiyerships OF six bank.
;3fnb institutions Of New York City,
I which succumbed during the recent
Z panic, should not be made permanent,
will be heard before Supreme Court
ils3Jdstice Bolts at Kingston. beginning
4 Tomorrow. The cases Of the lnterna'
gltional Trust Company. the Borough
Bank OF Brooklyn and the Brooklyn
bank will be heard tomorrow. The
;Hamilton bank case will be considered
sson Friday. and the affairs OF the VIII
Trust Company and the Jen'
.lS;kins Trust Company will be invcsti-
gated on Saturday. On the latter date.
1.-THE motion to appoint permanent re.
4 .ceiyers for the Knickerbocker Trust
4 Company will also come up for hear
< Ing before Supreme Court Justice
CLARK. ".
Edward NJ. Shepard will represent
the. deposl,ors OF the Borough bnnk
at the hearing and will urge that the
Z institution Is solvent and should be
she allowed to reopen. The plan an
{nounced by the depositors for a re.or.
S'ganizatiou is to pay 10 per cent. In
cash. is per cent. In four months, 20
per cent. in eight months. 25 per cent
In twelve months and 30 per cent. in
sixteen months.
II 1t Is ALLEGED by representatives Of
the State that the bank Is hopelessly
51nsolyent and that It's funds have been
managed in criminal manner. The
examination made by the receivers
showed that. out of s3.1SG.SC3, bills
discounted. more then feel obliged to
deduct on account Of paper regarded
as forged. fictitious Or Of doubtful val.
s5ue. S1.3S2,S42: that the realized value
of the total amount is $1,S0i,021; of
1.-THE S4S2,59G of loans made on demand.
$S78,584 had been deducted Oh account
Siof worthless paper. such as collateral
$,Sheltl In gold and silver mining stock,
aoil paintings, ETC.. OF the sums due
i,from banks. given as slSS,O03. sl5S..
lE104 had been deducted on account Of
Sfoffsets and receiverships: Of the sl4S,.
5000 credited to stocks and bonds, but
zone bond OF $1,000 was on file with the
State banking department. 1t is al
51eged by the receivers that the total
deficiency OF the bank is s1.306.0G0.
Ex-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.
sd could 10 longer serve In that ca.
+ pacity. Judge Parker declares that
;.the $4,000 depos.tors 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
mako a hard fight aaginst the accept
sance of the plan Of reorganization sug-
gested by the williamsburg and Jen-
dns Trust Companies. In regard to
the Williamsburg Institution. Deputy
Attorney General Macisey alleges that
1T had loans credited to clerks and
roustabouts on security OF a cat.and-
dog nature" and that "the directors
and their friends grabbed their money
Just before the bank closed" One of
the directors. Mr.. Mackcy alleges. is
a large debtor to the bank.
III. the denosltors and others knew
of the condition of this and others Of
these banks they wouldn't approve Of
the so.called plans of reorganization"
I+declared Mr.. Mackey.