New-York tribune., 1907-10-26
RECEIVERS APPOINTED.
ATTORNEY GENERAL ACTS
Three for Knic&erbocker Trust
Designated by Richmond Court.

DENS HGtLU ~ EsIH"tOtU SO"' -
Followfa.- The appointment Of three receivers
for the Knickerbocker Trust Company by JUS
tice Clark. in the Supreme Court, Richmond
County, yesterday. the startling an
nouncement from Attorney General Jackson On
whose application the receivers were named
that he sought the Staten Island court to avoid
tne appointment Of improper persons.
Mr. Jackson said that he had become assured
that the interests which were planning to reor-
f-anize the company were not considering the
dencsitors Then he asserted that man whose
name had been suggested to him as a receiver
tv Julien T Davies. of Davies, Stone & Auer-
bach counsel for the knickerbocker trust
Company, was the same person who tried TO get
from the bank examiner in charge of the COM
pany's Offices an illegal check for S1,UOO,OOO.
This man. according TO the Attorney General.
went 10 the examiner after the company had
suspended business and tht Acting State Su-
per1utendent of Banks had taken charge and
asl,ed for the check. He was referred TO the
Acting Superintendent OF Banks, who in turn
consulted Mr.. Jackson.
The receivers appointed are Otto L. Ban
nard president of the New York Trust Com
rany: Ernst ThaEnann, senior member OF the
banking firm Of Ladenburg, Thalmann q Co.,
and General Henry c. Ide, the first Governor
~ the Philippine Islands under the American
clark granted an order to show cause why the
receivers should not be made permanent, TINS
order being returnabe in the Richmond County
Court on November >.
The bond of the receivers was fixed at S"oO'VOo
each and the Union Trust Company OF New
York and the United States Trust Company OF
New York were named as depositaries.
There was much Indignation expressed by the
directors of the Knickerbocker Trust Company
-N,a ,1oNEr town hTan
Of the company No. GO Broadway, when the
news of Attorney General Jackson's action
reached them It was plain that Mr.. Jackson's
move in applying for receivers came as real
surprise to them, and criticisms Of him We're
uttered in unmistakable terms
I'VE are simply amazed at the news from
Staten Island" said one of the directors yes
terday morning, 'and you may depend upon II
that those in charge of this company VIII De
on hand on November to show cause why the
receivership should not be made permanent At
torney General Jackson's action is complete
surprise to US We were not even so much as
consulted as TO the desirability of such action"
This officials statement that the legality OF
the Attorney Generals action in applying for
the receivers would be looked into and con-
tested If good grounds for doing so were DIS
covered was confirmed by several OF his col
leagues One of them said: I'VE are at a loss
TO understand why the Attorney General did
not bring his action in this county. We do not
know why the application was presented to JUS
tice Clark, in Richmond County. Perhaps MI
Jackson will be able to explain that
President Higgins. Of the trust company
asked If any Immediate action would be TAKEN
relied
II do not know It is a possibility that we
NAV apply for an injunction, but just what
course will be decided upon will not be known
until tomorrow morning..
But as if the idea of an injunction had been
abandoned, one of the directors said last night'
The directors had decided TO recommend the
appointment of Herbert Satterlee, John Quinn
Valentine P Snyder, G. Louis Boissevain and
Morgan J. O'Brien. This ticket speaks for It
self and when we learned that receivers had
already been chosen by the Attorney General
we were indignant There some talk or
legal action but I believe that the appointees
are good men and will be entirely conscientious
in their management of the affairs of the COM
pany. Under the circumstances we could not
gain anything by obtaining a change Of receiv-
ers"
The directors were particularly resentful in
regard TO the receivership because of the action
of the Acting State Superintendent of Banks
last Tuesday morning in placing notice at the
entrance of each Of the various branches Of the
institution, stating that in his belief the trust
company was In a solvent condition.
Mr.. Skinner, in his affidavit which is incor-
porated into the petition for the receivers, says
that in his belief the Knckerbocker Trust Com
pany in unsound condition last Tuesday,
October %. when he was called in after the
announcement of the resignation of President
Charles T. Barney. Mr.. Skinner said that when
the expected assistance failed to the
next day. Wednesday, and the directors, finding
that there were not sufficient funds on hand. de-
cided TO suspend payments. ne came to the
clusion that the institution was unable to con-
tinue business Mr.. Skinner says he notified the
Attorney General of the condition Of the trust
company, and ends his affidavit with this state
ment:
1 believe from my examination that the
company is unsafe and unable to pay depositorS
and that il is necessary that its affairs should
be administered at the discretion of the court.
Acting on the report of Mr. Skinner, Attor-
ney General Jackson says in his application he