The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-10-31
GEO. |. RIVES THIRD RECEIVER
KNICkERBOCKER TRUST GOES
BNTO COURTS HANDS TODAY.
Deuytte Cockrsn's Fcrmer Pxr timer Denies
Ne Has Made Loans From the CONF
D. pany. but His Railroad In Michigan Vas
Committee says Trust "a. Is solvent.

Committee Nays Trust 90. Is solvent.
Justice Lester W. Clark Of the Supreme
Court. Richmond county. has appointed
fSecrge T.. Rives. former Corporation
Counsel. an the third receiver for tho Knick-
Brbocker Trust Company In place Of Pre~i-
dent Otto T. Barnard Of the New York
Trust Company. who declined to serve. Mr..
Rfves will qualify to-day by h.ing q bond Of
$500. 600 and with the other two receivers.
Ernst Thslmsnn and Henry C. Ide. will
take over the conduct of the company from
the State Banking Department..
h appointment OF Mr.. Rives was made
public last night in IA statement handed out
by one Of the Attorney-General's deputies.
Whether Mr.. Rives's name was suggested
20 the Court by the Attorney General or
whether he selection was made by Justice
Clark on his own initiative was not dis
closed. The Attorney General announced
when Messrs. Ide. Thalmsnn and Barnard
were appointed that he had suggested tho
names.
Mr.. Rives was appointed TO the ONCE
~ Corporation Counsel by Mayor Low
10 1901 and served two years. He has
always been regarded ~ Al independent
Democrat. He was Assistant Secretary Of
WI y thN StCNNinuo - AIBt Ia
~tratioD. In 1890 he served al president Of
the commission which rsvised the Charter
~ the city. He was a Rapid Transit Com
missioner from 1899 to 1901. After retiring
from the Corporation Counsel's Office he
became pun to the Rapid Transit Com
tssion. snd he was serving in that capacity
fhen the commission went out Of Office
jast July. He is 5s years old. MIR. Rives
"a q I,rorfnr ~ thn nnnE ~ Nan VArtr
the Lawyers Mortgage Company. the
Lawyers Title Insurance and Trust Com
pany. the Mercantile Trust Company. the
Mortgage Bond Company Of New York
and the United States Trust Company.
He 10 a trustee of the New FORK Public
Library and of Cooper Union. chairman
~ the board OF trustees OF Columbia Uni
versity and a governor Of the New York
Hospital.
W. Bourke Cochran did not care to COM
mont yesterday on the report that he was
fhe master spirit behind the recommended
cions made by the Attorney General in favor
II his fat~her-in-law, Gen. Ide. and Mr.
Thalmann. The Attorney-Genersl. when
asked il Mr.. Cochran was one Of the bust
ness men" whom he had consulted. said that
he did not care to give any names. h. s.
q U VI fAthChpuTks udl-
uann a Co. who is said to be one OF MIR.
Cookran's guiding friends. also had nothing
10 say for publication.
John C.. Tomlinson. Mr.. Cockran'e former
partner. denied that he had made any loans
from the knickerbocker. lie said that
the Michigan United Railways Company,
in which he was a stakeholder. had Dor
rowed some money from the Knicker-i
t~1lar A,,t ka oo..II.tt oav Lo., ..
h Michigan United Railways Company
owns some 200 miles of traction lines out in
jackson and other Michigan cities. II has
m authorized capital Of $500 600 in COM
mon stock n 81. 900 600 in preferred and
booker Is trustee of a 81 zoo. 900 mortgage.
It is understood that the third place on
the board Of receivers was offered to
President King of the Union Trust Company
before Mr.. Rives was approached. but he
was not able to accept.
The checking committee OF the Knicker-
bocker's board Of directors has completed
its examination of the assets OF the COM
pany. and although no official statement
has been made yet members OF the commit
ice express the opinion that the company
will eventually be able 10 pay depositors
Ia full. The committee has found this to he
the condition Of the company:
On October ~, when payments were
suspended, the company held s2.O 0 900 in
real estate and carried So, 1855. OO in bonds
and mortgages. Cash on hand amounted
to 81, La. 900 and there was due the Knicker-
booker from other banks $2.sl7,o DO The
demand loans amounted to SO. sos, 900 and
these, IL 10 said, are good. There was
SO, 100. 900 carried as investments in stocks
and bonds. These. figured on a basis of
The present low market. show a shrnkage
" about s.. 900, 900. There were Sic. OOO. 900
time loans. OF ali the individual guar
antors behind the SO. OOO, 900 Of under
writing loans only about three, IL was said.
have been rejected as not good. In many
Eases the Subscribers a v paid calls
amounting TO 50 per cent. on the under
writings. The underwriting loans on the
so-called Barney enterprises are considered
good, although il may take time to work
some Of them out.
The grand total Of assets as figured by
bhe committee is $50, OO0. 900.
Against this credit showing the knicker-
booker now owes its depositors $4S, 3S7, 600,
which il sl7. 0O0, 900 less than the amount
reported in the last quarterly statement.
70 the National Bank Of Commerce, it's
clearing agent. The Bank Of Commerce
holds collateral for this amount.
A member of the checking committee
md this TO say in regard to the findings:
tieN OF more than 81, O0O. 900 and there is also
o ~stockholders' liability OF 81. 10000 Sup
pose. in collecting the time loans there isa
loss Of 81 500. 900. a loss OF $1.JOO.00O on the
shrinkage OF market values on the invest
ments and a further loss Of q. 000. 900 in
clearing the ACKNOWLEDGEMENTS would
amount to IS. 200. 900. which would still
leave a margin of more than $780, 600 be-
tween the ~depositors and any possible loss.
stockholders themselves nave no cause for
alarm, for the probabilities indicate the
pxtinguishment Of al liabilities out Of the
assets in hand"
Samuel Untermyer, who is to act as coun-
Gel for a committee Of large depositors that
10 In process OF formation, said yesterday
that he would probably be ready to an
rounce the personnel OF the committee to-
day. II is likely that the committees that
have started mp in other quarters will fuse
with the Untermyer committee.
The rehabilitation COMMITTEES Of the board
Of directors had something to say yesterday
in regard to the depositors' organizations
that are springing up. The committees
lawyers. Julien r. Davies and James r.
Soley, spoke for the directors. After say
ing that in the view Of the committee the
interests of the depositors and stockholders
In the resumption Of business are identical
the statement continues: