Semi-weekly herald., 1908-02-17

The writer had an interview with
II. Il. Gaines yesterday afternoon re-
gardlng the proposition submitted by
the advisory committee for the settle
ment of the Colorado State bank af.
fairs. Mr.. Gaines said he was against
the settlement for two reasons, and
that great many others had the
same understanding, l. e.:
tirst-That the agreement provides
that no criminal suits can be institut-
cd prior to three years. and by that
time no criminal action can be
brought
Second--That the property proposed
TO be turned over and decided to the
receivers would he forfeited in case
some one brought suit as individuals
against Messrs Freeman and Chap
man. or ii they became weary of the
burden they could trump up some rea
son and resign and the property would
revert buck to them.
If the agreement means what Mr.
Gaines understands 1t to mean, The
Herald would be with him in opposing
settlement according to its terms
and would join him in urging that it
be rejected by every depositor because
according to Mr. Gaines understand
ing. the agreement would not be
worth the paper it Is written upon.
To start with, maybe Mr.. Gaines and
nj un nj fh.. ianI IL.
study. taking the word OF papers
that have done nothing but mislead
and falsify in every direction. propo-
sition that can be proven. But now
let us get down to facts.
First-There is no provision that
makes the agreement void in case
criminal suits are, instituted. The
only reference 10 this is where those
signing agree to use their influence to
keep people from insttuting suits. the
paragraph being number s. as follows:
Eighth:-Al parties agree to
give their aid, good win and sup
port to the said receivers in OBJ
tanning the best, speediest and
most satisfactory settlement of
the affairs OF said bank, but moth
ing in this agreement contained
shall bind or obligate any of the
deposltors or creditors 10 incur
or pay any costs, charge or ex-
pense in connection with any liu-
cation, nor shall any failure on
their part to prevent the institu-
tion or prosecution of any pro-
ceedins by any person not party
hereto. release or discharge the
parties of the first part from any
obligation herein contained.
There is nothing in this paragraph
or any part of the agreement that will
in the least prevent suits being insti-
tuted. both civil and criminal. in case
Messrs. Freeman and Chapman do not
make good. Some two weeks ago The
Herald stated that IT would not agree
10 a proposition that would make it
impossible to push criminal suits in
case circumstances demanded. And
The Herald went so far as to pledge
George N Raymond TO institute and
push criminal suits at the end of two
years If il was shown that Messrs.
Freeman and Chapman were not max
ing good. And at the meeting OF de
positors at the court house two weeks
ago Harry Jackson. in behalf OF the
advisory committee. said there was no
provision in the agreement to prevent
the above gentlemen from being
pushed criminally, and that year, or
year and half at the outside, would
be plenty Of time to show whether the
proposed receivers intended carrying
out their agreement in every way
and that he would pledge the com
mittee TO push criminal charges in
case Messrs. Freeman and Chapman
did not live right up to-the letter oil
the agreement. Now. Mr.. Gaines.
your first objection cannot stand.
And Mr.. Freeman and his associates
know this full well and agree to it.
Second-Now as to the property
pledged as a guarantee. it must go In
with only one string TO it-that II
cannot be used until the expiration OF
three years unless by agreement with
the court whereby ii can be sold or
mortgaged to pay balances that may
be due at the end of one or two years
The deed OF conveyance must show
that the property absolutely becomes
assets of the bank at the expiration OF
three years without recourse of any
nature; the deed OF conveyance must
make the property become the assets
OF the bank under the same co1di
tions should either Mr.. Freeman OIL