Semi-weekly herald., 1908-03-02


expenses, legal and administra-
tive, average well under per
cent of the net assets. n New
York they have run above so per
cent. Counsel fees receivers
fees" and advisory fees" have
been worse enemies of the depos-
itors than even the personal mis-
doing of officials. 1t has come to
be almost an axiom that the plum
dering of bank begins with the
closing of its doors. There Is
room here for a sweeping reform;
and it is pleasant to note that a
lawyer will take the lead in fight
ing this evil of the lawyers pro-
fession in New York.
Now. | do not wish to infer that un-
der Mr.. Boyles administration there
will be graft, but do wish to say that
it is a recognized fact that in all cases
of receiverships the expenses run
into the thousands of dollars and cred
itors have to stand it. Last summer
one of the Ouray banks failed, owing
creditors in the neighborhood of $780,
600. If you will call up the clerk of
the district court you will ascertain
that the expense of the receivership
has already run over $4,000 AID not
a suit has been instituted against the
bank officials or stockholders, reuuir-
ing only legal advice, and still attor-
neys come in for thousands of dol
lars. Up to date 33 per cent has been
paid and it is said that not more than
80 per cent will be forthcoming. The
expenses of the Oueay bank receiver
ship will probably foot up $4,000 and
Tor the collection OF about $4,000 up
to date. Is it any wonder, on general
principles, that Mark Twain said re-
ceiveships are more expensive than
keeping n harem? And | believe that
Mr.. BOYLE will give the depositors
Just as economical receivership as
find it will cost them plenty before
they get through with 1t even under
the most favorable conditions. And
in this connection many depositors
would like to know what this receiver
ship with the various attorneys en-
ployed is costing them and to this
end the court is asked to call an ex-
pense account to date.
Now as to the suits against the
stockholders. Depositors might just
as well be apprised first as last that
the probability of collecting cent
are four to one against them. The
opinion advanced by majority OF
lawyers both in Durango, Denver and
other places, is that the present law
repealed the former liability law in
which case the suit against the stock
holders will not be worth the paper
it is written on. Again, granting that
the law is good, it will cost depositors
about as much as they get to push the
suits as it means a siege in the local
courts and two or three years in the
supreme court where the case will be
taken no matter who wins, and you
can easily imagine that it will cost
depositors a lot of money for attor
neys before the issue is settled. And
under the most favorable results the
receiver will not be able to collect
more than $4,000 to 5000 from the
entire bunch of stockholders.
For the purpose of revenge, to graf
ify a few depositors and the editor of
the morning paper, We have these ex-
pensiye suits in place of a proposition
whereby depositors will receive dol
lar for dollar. only have something
over 500 in the Colorado State bank,
but the minute the proposed agree
ment is ratified by the court | can OBJ
tain 100 cents on the dollar from half
willing to sell me goods and take my
account. We have no doubt
that every depositor will be able to
turn his account around so he can re-
alize the full amount. Many mer-
chants are not only willing to accept
past due accounts but will sell you
goods and take your certified accounts
dollar for dollar. What can you get
under existing conditions? Surely
not fifty cents on the dollar.
There are some who object to the
payment of small depositors first.
Well, there can be no objection to the
bank officials paying in $4,000 to be
applied as the court directs. There
are others who say they will not trust
any of the bank officials again. TAX
ing this as good logic, suppose third
man, to be selected by depositors'
committee, be added, and this man to
have charge of paying out the cash
on the orders of the court. So far as
/ am concerned | would be glad to
have Mr.. Boyle continue as member
of three receivers and permit him to
pay out the cash and Mr.. Freeman and
Mr.. Chapman collect the accounts
and work in conjunction with Mr..
Boyle. Some may say this cannot be
done. 1t can be. Let past friction be
cast aside and every interested party