New-York tribune., 1908-03-07
ORIENTAL PLAN WINS.
RECEITERSHIP T4C4TED.
jackson Fauors Modified agreement
scifh Metropolitan Trust.

Depositors OF the Oriental Bank will get one
hundred cents on every dollar they have on
deposit there soon large force Of expert
accountants can go over the books OF the bank
and certify their accounts. for yesterday Justice
O'Gorman. in Part of the Supreme Court, ap-
proved the modified agreement. by which the
Metropolitan Trust Company is to lend the
Oriental sufficient funds to settle its indebted
ness Immediately and discharged the temporary
receivers that bank
Justice o'Gornan directed the assets of the
hank 10 he placed in the hands of the State
Banking Department. which will turn them over
10 The hquidating committee after the agree
Inent has been formally signed. Expert
countants will at once get to work its books.
After the heat of the combat both sides
seemed well satisfied. the banks counsel and the
Metropolitan Trust Company because the agree
snent was adopted. the Attorney General be
cause he has carried his point by having the
time IN which the depositors were TO he paid
inserted Even G c. Dickinson representing
Tho Carnegie Trust Company. of the tenn
porsry receivers. did not appear to object to
the new turn the affair had taken
Attorney General Jackson himself argued the
motion TO Vacate the order appointing tenn
porary receivers, while Charles X Beekman of
the firm of Philbin Beekman & Menken ap-
peared for the bank and argued strongly in
agreement The essence of Mr.. Jacksons argu-
rnent that the first form of agreement sub
rnitted 10 him old not in good faith propose
paying the depositors at once, il did not
specify any time in which they were to be paid
and that there were many other objectionable
features to it He told the Court that if the
modified plan, which had a provision for the
payment of the depositors in full forthwith"
met with its approval. and If it, in its opinion
sail he
no objection to its adoption, he would con-
slider that his responsibility had ceased.
Mr. Beekman asked the Court yacate the
order appointing temporary receivers and to
force these receivers the Carnegie Trust Com
pany and Henry Schneider TO return the
hank all its books, indexes and other property
which they had removed taking possession.
Tie said that Mr.. -ackson's contention that the
bank was insovent and could not pay its cred
itors WAS an erroneous one. that the bank had
q large capital and a large surplus. but for
the time being unable TO meet its debts.
The main change that has been made in the
form of agreement between the Oriental Bank
and the Metropolitan Trust Company is the in
sertion of the word forthwith. thereby def
siteiy specifying the time in which the deposit
rors are TO receive their money. Other changes
have been made in the phraseology make it
certain beyond doubt that the agreement legally
binds the trust company to pay all depositors
at once and in full
Still another change limits to S150Oo0 the
amount that the trust company may lend the
liquiCating committee for salaries, counsel fees.
clerk hire and other incidental expenses. With
zhese exceptions the agreement is practically as
s. Was originally drawn 1t provides that the
Metropolitan Trust Company shall lend the fol-
lowing sums 10 the Oriental:
F7or ravrnent If depositors. 8. 414 ooo
Fs4NT 0f
For }Qui6ation expenses 10000
1-ess oeostors lftsets 600 600
The figures given in each case are the maxi
mum amounts TO be lent. II is understood that
the Clearing House Indebtedness does not at
present amount TO s960oO0. and that no
more money will be lent than is required TO pay
the hanks debts
In return for these loans the trust company
viii receive: First. cash bonus Of 100000;
second. interest on all moneys advanced from
daily balance sheets al q per cent. third all
assets OF the bank with the exceptions of its
Clearing House certificate. charters and office
sixtures and furniture. collateral for the
loan.
The bank is to be administered by liquidat-
ing committee. consisting of Hugh Kelly. it's
present president: James G. Cannon. vice-presi-
dent of the Fourth National Bank. and General
13rayton Ives. president Of the Metropolitan
Trust Company. This committee will reduce
Its assets into cash expeditiously. having due
gard TO the banks interest The salaries of its
members are 20 be determined by itself and a
hank committed which will consist of r. W
Jones 1r Charles E Levy and Hugh Kelly,
which also has powers both great and wide
Phibin. Beekrnan & Menken are to be counsel
for the bank unless the liquidating committee
shall designate other counsel. The agreement
provides that the loans shall be repaid within
;-xenty-two months. and that if they repaid
before that time the trust company must make
over the hanks assets or such that remain in
sfs possession, it The Clearing House debt
will not be paid but within short
time.
The depositors viii be paid as promptly as
we can get their accounts certified" said Mr..
Ives yesterday 1t won't be long. either, be