The sun., 1908-03-08

other things, vacates and sets aside the order
made and entered herein February ~. 1905.
appointing temporary receivers of the de-
fendant in the above entitled action. I'm
mediately upon the fling of such order to-
day | served notice of appeal upon the Clerk
of the County of New York and upon Messrs.
Phlbin. Beekman Z Menken, attorneys for
the defendant. "A copy of which said notice
of appeal. with a notice Of such service. will
be handed to YOU by the bearer of this letter.
am of the opinion that the service Of the
notice OF appeal perfected the appeal and
stays all proceedings under the order APP
pealed from. "a provided by section l,3l3
of the Code of Civil Procedure. That there
may be no question upon this point | in
tend to Immediately apply to the court for
an order staying all proceedings until the
hearing and decision of the appeal. In my
opinion there are several important legal
questions involved in these proceedings
and | enclose memorandum which | have
prepared upon the subject. which defines
my position. Yours truly.
W. 5. JACKSON, Attorney General.
The Attorney General is the legal nd
wiser of the State Superintendent Of Banks
and Mr. Williams was apparently up against
the proposition Of being advised not to do
what the Court ordered him 10 do. tfter
the refusal OF the CarneEle Trust ohcer,
however. there was nothing more Tor The
EoAdlt' W Wv 'AtA'a Nv ''' '''
Albany.
Justice O'Corman and also Justice Fitz-
Gerald remained at the County Court build
ing until about O'Clock in the afternoon.
In the meantime, howeSer me nahk
LAWYERS had been comforting and had come
to the conclusion to do nothing until the
opening Of court on Monday.
T The order signed 10y Justice OtiOr man
besides yacating he receiverShip authorizes
the Oriental Bank To enter into a contract
xuit MafFnnnlifan Trust ('DInDAfiK
for the payment in full Of its creditors under
the terms set forth in the contract. II
directs the State Superintendent OF Banks
70 remain in control Of the bank = property
until the contract il executed and then
10 deliver the property to the Metropolitan
Trust Company the liquidating agent.
Mr. jackson in his formal statement com
plains that no contract has as yet been
entered into; that the proposed agreement
as approved hy the Court has not even been
approved by the board of directors OF the
Metropolitan Trust Company or OF the
Oriental Rank. Furthermore, no bond has
as vet bean executed,
"Up To this time said the Attorney
General "there has only been presented a
proposition that it is said will be executed
at some time. but which is not binding upon
any one. The proposed agreement pro-
vides for the payment TO the Clearing House
OF the amount due it by the bank. but no
ii me is specified. The proposed agreement
provides for the payment OF depositors
forthwith when the amount due each
depositor shall be certified by expert
accountants.
Mr.. jackson said he could find no author
| ity in law authorizing the Court to direct
receivers to turn the property Of an in
| solvent moneyed corporation over 70 the
| State Superintendent Of Banks The Court
directs tho State Superintendent upon the
I execution Of the contract TO turn over all
| the assets of the bank to the Metropolitan
| Trust Company Mr.. jackson says:
II can find no law authorizing a court 10
| direct the Superintendent of Banks to
| turn over to a third person the assets OF
/ a bank in his hands and which he has re-
/ ported as unsafe and that it is inex pedient
| for il TO continue in business. The only
! law | find requires the Superintendent OF
! Banks in possession Of the assets Of bank
| that ne deems unsafe and ineXpedient
| for it to continue business to report those
| facts to the Attorney General, whose
| absolute duty il then becomes to bring
| an action for it's dissolution
| Mr.. jackson contends that the rights
! and liabilities Of stockholders and others
| besides creditors are wholly unprotected
| by the Courts order.
! '"Ths order" says the Attorney General,
establishes an entirely new practice and
! one wholly unauthorized and IN effect
| IL establishes the precedent for permitting
! insOlvent corporations to select their own
| receivers and to administer their Affairs
| regardless Of the provisions Of the law re-
! guiring their dissolution and the distrt-
! Sutton Of their assets through officers
! appointed by the Court
| Mr.. jackson promises 10 get as speedy a
| determination of the case as possible.