The sun., 1908-03-08
JACKSONWOETLEF GOOFBGNK
GETS 4 STAY FROM APPELLATE
DIVISION JUSTICE
Pending Appeal From Justice O'GOrman's
Order-Didnt succeed IN Filing Ills
Notice OF Appeal. but lt Looks a. II
the DeDOsitOrs Would Have to walt.

There was scramble yesterday TO pre-
vent the deposits Of the Oriental Bank
from getting away. and tho outcome OF il
Ii likely to be that the depositors will have
to wait for their money while Attorney
General Jackson fights through the higher
courts the removal OF his receivers. Last
night he got from Justice Frank C. Laughhn
of the Appellate Division First Department.
an order to show cause why the order Of
Justice O'Gorman ousting the temporary
receivers should not be stayed pending
appeal therefrom. Justice Laughlin's order
is made returnable Tuesday afternoon at
1 O'Clock. and meanwhile all proceedings
are stayed.
Before he got this order the Attorney-Gen-
eral had taken steps tO file a notice OF appeal
and informed the recsivers that the order
would act as a stay.
The Carnegie Trust Company. one Of
the receivers. relying ON Jackson's advice.
refused to deliver up the assets Of the ORR
entail BANK when formal demand was made
for them. Later it turned out that Jack
sons man had failed to get his notice Of
appeal fled with the County Clerk before
the closing hour. and for a few hours the
AttOrney-General. the receivers and half
a dozen lawyers representing the bank
were running around trying to find out
just where all stood.
Counsel for the hank came TO the con-
clusion that contempt proceedings against
the Carnegie Trust Company wouldn't
hold. and the Attorney General fired out
charges that a lawyer for the bank had held
up his notice of appeal at the County Clerks
Office. The receivers are still in possession
OF the S. 900 900 Of assets. Notwithstanding
.,
The Attorney General announced last
night that in his opinion the order issued
by Justice O'Gorman is without warrant i'm
law and that if it is allowed to stand it will
establish the precedent of permitting in
solvent corporations to select their own
receivers and administer their own affairs
regardless OF the provisions OF the law re-
quiring their dissolution. He believes the
order ought to be reviewed by the Appellate
Division.
The order vacating the receivership and
directing the receivers to hand over all the
assets forthwith WAS signed by Justice
O'Gorman AT 1880 o'clock Attorney
General Jackson was present and insisted
upon one change in the order-tha it recte
that he opposed the proposed plan Of liqui-
dation through the Metropolitan Trust
Company The order in its original form
said that the Attorney General had con-
sented to it,
As soon as the order was signed the
Attorney General hurried over to his Office
at 100 Broadway and drew up his notice of
appeal, sending Ambrose Sutclif his head
clerk. over to the County Clerks office
with it with orders To file the moment the
order was in.
The jackson clerk said later that he
arrived at the County Clerks Office at 1850
O'Clock. The order hadn't been filed and.
according to ms story. he told the clerk
at the desk that he wanted to file the notice
of appeal az soon as the order was in s. =.
NIenken or Philbin Beekman l. Menken
arrived two or three minutes before ~ and
filed the order Jacksons clerk declares
that when he pushed his notice Of appeal
in at the window Lawyer Menken picked
it up and started to read 1t. Sutclin says
he grabbed il away from Menken and pushed
it over the counter again, but the lawyer
took it a second time. By the time he had
regained possession Of the notice il was,
so the jackson man says. l2'O2, and Mr..
Menken. it il alleged. remarked that the
notice was too late to be filed anyway. The
clerk at the window thereupon decided that
If this was technical case he wouldn't
receive the notice after hours. NhereupOn
Jackson's clark slammed the notice down
OH the counter vigorously and left, The
County Clerk Il Office didn't enter the notice
in the books. Most Of these statements
were put into affidavit form as soon as the
clerk got back to the Attorney Generals
office.
of the proceedings il untrue He said that
he didn't touch the jackson notice Of ap-
peal. As a matter Of fact the jackson
messenger, according TO Lawyer Menken,
| got there too late. II " IA after II O'Clock
/ el.n A1nWlr 70
office, and then. so the lawyer says, he
apparently didn't know where to take the
| notice. Mr. Menken says SutClif asked
| him where to file the notice and hs replied
that he wasn't a bureau OF Information for
! the Attorney Generals Office" Mr.. Men
| ken has four witnesses who support his
version OF the tragedy.
/ Menken didn't waste any time worrying
| over the notice Of appeal. Within ten min
utes after he had filed his order he had
messengers hurrying with certified copies
| to all institutions entitled to formal notice.
| Some Of Mr.. Menkens Office force went to
the Oriental Bank. but the only person in
| authority there was the father Of 9. G.
| Dickinson, president OF the Carnegie Trust
| Company. He was servet.
| MIR. Menken himself went TO the Offices
! Of the Carnegie Trust Company. He had
| telephoned for the State Superintendent of
| Banks, Clark Williams, to meet him there
! and take formal possession OF the Oriental
Banks assets from the receivers. Mr..
| Williams was on hand, but the officers Of
| the trust company weren't visible. Mr..
| Menken and the State Superintendent were
/ kept waiting, 80 Lawyer Menken estimated.
| for three-quarters OF an hour. Then they
were ushered into a room. where they found
Second Vice-President j. Ross CurTan sur
! rounded by members Of the law firm Of
| Keener, Lewis 4 Lane. the company's
counsel. Mr.. Curran informed the State
| Superintendent and Mr.. Menken when the
! copy Of the order was presented that they
had been advised by counsel that the notice
| Of appeal acted IA a stay and they would
therefore have to refuse to comply with
! the order
Mr. Menken hurried back to the Supreme
J Court chambers TO tell Justice O'0orman
that one Of the receivers had refused to
| turn over the banks property and Mr..
| Williams returned to his Office. The State
| Superintendent presumably found this
letter awaiting him. which was despatched
| from the Attorney Generals Office shortly
after the demand was made on the Carnegie
i rp1aat (OunnanV