New-York tribune., 1908-03-08
JENKINS TRUST co. CASE
attorney Generals Representative
Declares 1t Is InsOIUent.

Kingston NJ Y, March 7.--Opposition to the
proposed plan Of resumption of business by the
Jenkins Trust Company, of Brooklyn developed
to-day when the matter came before Justice
Belts, in the Supreme Court and the statement
that the company Is insolvent was made by John
F. Cloonan, the special deputy representing At
torney General Jackson, and Henry w. Ki!leen.
counsel for John Mulhall. the temporary re-
ceiver, who has been In possession since No
vember, and for whose removal Almet Reed
Latson and Hugo Hrsch. counsel for depositors
and directors. respectively. applied to the court
Mr. Cloonan based his opposition upon the
plan of resumption itself and the recommenda-
tions made in January by the Superintendent
of Banks, Clark Williams with which. he as
serted, the plan did not comply. The plan was
submitted week ago. Among the recommenda-
tions of Superintendent Williams was one that
bonds and stocks be sold for at least S30O,S93.
on which $23O,OOO was realized. the sale OF
mortgages for $2363S which SLIGO had
been paid, and a special fund made up by the
directors of S1OO 600. which was not shown to
have been established.
Most important, said Mr. Cloonan. was the
recommends ton that all the directors involved
in the Jenkins transactions for which various
members of the Jenkins family have been in
dicted. should be eliminated from the new
directors of the old board were still in the
directorate. although the reorganizers claimed to
have their designations. But there was no proof
that these designations would become effective,
said Mr.. Cloonan.
No agreements with other banks. regarding
banking accommodations, by which the pro-
posed voting trust would become effective, was
shown. he said, although the Attorney General
entitled to know these facts. in confidential
capacity If they could not be made public
Resumption on the proposed chaotic plan. he
said, would send the institution back to the men
who stood by and watched the Jenkins family
wreck 1t.
On behalf Of the temporary receiver. Mr.. Null
hail. his counsel, Mr.. Killeen, submitted report
to the court of the company's condition on
March 5. by which II appears the assets
81. S33, 900 and liabilities are $3.415,OOO. There
Is shown also a shrinkage Of assets from book
values to receivers values particularly in real
estate. bonds and mortgages. demand loans,
time loans and bills purchased. Among the
facts promised by Mr.. Killeen to be divulged on
the trial Of the Jenkins indictments are that in
many reports the company falsely stated the
amount of cash on hand. ranging from $780,
900 shortage in the first report, in 1905. to $780,
600 at its last report before suspension. Also
that loan for $4,000. which later in
creased was made to the banks Janitor. who
ceived 500 month These revelations. he said
tended to destroy confidence.
Replying to the statement of Deputy Attor-
ney General Cloonan and counsel for receiver
Mr.. Latson, of counsel for the depostors said
that the reorganizers had not been entirely n
fdentiaI because the banks offering acconmo-
dation had so insisted.
Il astounded." said Mr.. Latson. that the
sincere efforts of these depositors and stock
holders to get back their money should be met
by this team play between the Attorney Cen
eral and the receiver Last week we were told
the Attorney General wanted to build up, but
until now we never knew his real attitude His
efforts not consistent and do not conform to
the dignity Of hts high Office
Mr.. Latson reviewed the reorganization In de-
tail. and in conclusion appealed for reorganiza-
ton on behalf Of depositors who were suffering
because their money tied up, and who were
working hard for rehabilitation.
Mr. killeen. counsel for the receiver charged
the bank was to be opened afidavits instead
Of cash. and declared that the present directors
were responsible for the companys condition
Justice Belts reserved decision.