Semi-weekly herald., 1908-08-10
FULL TE':yT OF
LAST PRyUi'ii Ryi'i : 'lTI0N
: Offer 10 Put Up $500 to Pay Receiver
and Attorneys Was Rejected by the
Court Yesterday Afternoon
IN THE DISTRICT COURT

IN THE DISTRICT COURT
State of Colorado,
County of La Plata, IS:
Henry NJ. Beatty, State Bank Com
missioner,
VS..
Colorado State Bank.
PETITION.
Come now the said B. N Freeman
W. C. Chapmans r,es Frank Eldredge
the , ,titA +asfke-=s In the petition
filed he's -sn.71 sn.1 i, - court August
8. 1908, and foN.ectrully represent
and show unto the court:
That after the hearing upon said
matter had and held on the 9Th day
Nof August, 1908, and the suggestion of
the court that an order might be en-
tered accepting proposition "C' as
contained in the amendment thereof,
filed on the said last named day, with
he proviso or condition that in lien
OF fixing the compensation of the re-
ceiver and his attorneys at this time,
notes listed by the receiver as good
in the aggregate amount of about S19,-
900 should be retained in the hands of
the receiver as a fund out of which
to pay said compensation and fees,
1t was suggested to one of the counsel
of your petitioners by the receiver,
through his COUNSEL that proposition
"B" as contained in the said petition
could and would be accepted, IT, in
lieu of fixing the compensation of the
receiver and his attorneys at this time,
the said notes., above referred to,
should be left in the hands of the re-
ceiNe1>as a fund to cover said fees,
and compensation as herein aforesaid.
And thereupon. your petitioners ac.
rcepted and acceeded to said suggestion
and undertook to and did draw and
fTepare a contract, covering such
Proposition "B" as so modified.
That ~ the understanding that
there - % the receivers hands
notes .assiount of $4,000 which
SAss was 5b5sed should be left in his
hands to cover the fees and charges
OF the receiver and his attorneys, your
petitioners undertook the making of a
settlement on the basis that all liza
bilities OF the bank were to be other
wise provided for, and notes to the
amount of said $4,000 be left in the
receivers hands, out of which such
charges should be paid
But, on requesting the receiver to
select the notes to this amount which
he desired to so retain for such pur.
pose, petitioners were advised by the
receiver that he could not select any
notes to that amount but that he would
retain notes whose face value aggre-
gated about $4S 5000, and which he. in
his report and inventory, had listed as
worth about $4,000. and against which
offsets to the amount of about $4,000
were claimed by the makers.
That included in said list, were
9S.es to the aggregate face value OF
G9er ten thousand dollars Exclusive
of Offsets which certain creditors OF
said bank were willing to take and had
in writing agreed to take at their full
value In settlement, to that extent. ol
their demands against said bank. Ana
that said receiver would not agree tC
ALLOW petitioners to take over sait
notes 30 subscribed for, nor would sai(
receiver agree that said offsets shollt
be allowed so as to reduce the Tia
bilities OF said bank, and the amour
which petitioners would be required
. to pay In to discharge them.
Neither would said receiver agree t.
select from said notes or from an.
other assets of said bank, items to tn
inventoried value of said $4,000 whicl
should be retained by him in lieu q
said notes.
That only two alternative sugges
tions were made by said receiver. tC
wit:
]. To pay. In addition to The amour
required to pay the depositors, 5000
in cash. and leave $4,000 more /
bonds of the Income Property Con
panyAA the hands of the receiver OF
OF which to pay these fees.
2. To provide in the contract fo
cSsthe payment in cash at the time tn
money to pay the depositors In fu
Is turned over, such additional sui
~ may then be fixed as the amount {
sucf,ess.
That the first OF these alternativ,
requires. in effect, that at the tin
OF taking over Of the assets of sal
bank. petitioners will be compelled
pay In cash or its equivalent. 5000
more than the amount necessary