New-York tribune., 1908-03-01
MORE BANK RECEIVERS.
JACKSON SURPRISE NO. g.
Mechanics and Traders Treated to
Same Medicine as Oriental.

rary receivers appointed for the Oriental Bank
Attorney General jackson appeared yesterday
before Justice Platzek, in the Supreme Court,
and had two temporary receivers appointed for
the Mechanics and Traders Bank Plans for
the resumption of the bank, it's directors say. are
well under way. The receivers appointed are
Joseph B. Ford the Attorney Generals private
secretary, and ]. Henry Haggerty, an oil mer-
chant and brother-in-law of ex-Justice Morgan
j. O'Brien
These receivers will qualify on Monday and
Morgan j. O'Brien, one of the Oldest stock
holders and depositors of the bank, will then be
appointed their counsel This action has caused
almost as much surprise that of the Attorney
General in regard to the Oriental, and the ap-
pontment of Mr.. Jackson's private secretary
has evoked consdera bic criticism.
Mr.. Jackson said yesterday that he expected
the receivers to get the affairs of the bank in
such condition that it could resume operations
in the future.
Mr.. O'Brien of the same opinion Il
think the receivers will work with that end in
view," he said "and 1 believe the bank will re-
sumo business possibly within two months"
The appointment of the receivers for the
Mechanics and Traders in itself caused much
mfavorable criticism, although it was advo-
Gated by Mr.. O'Brien and other of the dire tors
of the bank. Paul Grout, its counsel. and David
a. Sullivan, its president and heaviest stock
holder, knew nothing OF either proposed appoint
ment until after Justice Platzek had actually
made them receivers.
ORIENTAL BEGIN FIGHT.
Acting under the direction of the president
and board of directors of the Oriental Bank,
Eugene A Philbin, of the law firm of Philbin.
Beekman & Menken. appeared before Justice
Platzek in the Supreme Court yesterday morn
ing and obtained order requiring the Attor-
ne o show
pointing receivers for that bank should not be
vacated. The order is returna bic TUESDAY. IhlS
marks the beginning of a determined hght on
the part of the bank to carry out its scheme
of having the depostors paid in full lmrne-
diately by a loan from the Metropolitan trust
Company. There appears, however. little hope
of the success of such a fight, as it is admitted
that Mr. Jackson acted within his legal rights
in having receivers appointed.
The Carnegie Trust Company and Henry
Schneider, receivers for the Oriental, furnished
the required bond Of 100000 each and took
full possession of the assets of the Orlental
bright and early yesterday morning. They spent
part of the day in transferring the assets OF
the bank to the Carnegie Trust Company
building John 3. Stanchfeld appointed
their counsel.
Of1cials of the Oriental, its deposltorS' StoCh-
holders and directors in many instances
Yesterday bitter in their comments on the At
torney Generals action. In defence OF MS ac-
ton the Attorney General said that offclals OF
the Carnegie Trust Company had promised MIN
TO carry out similar scheme of paying the de-
posfto.s q statement whiek the vfce-pGesioent
of that company denied short time later MT
Jackson also said that under the state BANKING
law the metropolitan Trust Company could not
lend the Oriental Bank emo. gh money TO settle
with its creditors, and that the scheme would
have been very convenient" for those who might
desire to escape criminal prosecution
In the afternoon Mr.. Menken and MI Beck
man, of counsel for the Oriental called on the
Attorney General at his offices. NO. Z99 Broad
wav and were closeted with him LOT over an
bour. It is understood that the object of thelr
visit was TO explain the plan by which the de-
nositors were to be promptly paid by the Metro
no1itar Trust Company in more detail than they
cav the Attorney General has yet permitted
them 70 and to attempt to persuade him as TO
it's advisabity.
A POLITICAL SURPRISE.
Same surnrise was expressed at Mr. Jacksons
eoing before Justice Platzels to ask for receiver
shin appontments. Some time ago, when MI
Jackson was moving for the appointment OF re-
ceivers for suspended Brooklyn banking lnstitu-
tions, he applied TO Justice Belts at hlhsSloI
and said that he would not go before any Tam
MANY Judges" Justice Platzek was formerly
member of the Tammany law committee
Politicians commented on the fact that John
Y Stanchfied, who was appointed CounSel Ior
the Oriental Bank receivers. was a prominent
unstate "old line" Democrat; that j. Henry
Ftaggerty. one of the receivers for the Mechanics
and Traders Bank, a brother-in-law OF ex-
Justice Morgan ]. OBrien, and that Mr O'Brlen
himself was appointed counsel for the receivers
of that bank: and finally that Henry Schneider,
who was appointed one of the receivers for the
Oriental was supposed to be a friend of Muir
phv's although he styled himself an '1ndepenc-
ent Democrat
II Is well known that during the panic Murphy
had a Tammany slate of receivers on when
Morgan j. O'Brien figured. and that the Attor-
ney General then ignored the Tammany boss
The Attorney General denied emphatically
yesterday that there was any political signif-
canoe in the appointment of receivers. He said
he knew nothing about the politics OF Mr.
Schneider and Mr.. Haggerty, and intimated that
he cared far less In regard to having his own
secretary. Joseph b. Ford. appointed receiver
for the Mechanics and Traders Bank Mr.. Jack
son said:
Il expected to be criticised for that, and l
1ro,,, what some people will say about it New
ortboless. don't care Mr. Ford | have known
for years and place implicit confidence IN
commended his appointment because believed
h. was A man emnently qualified for such an
Office
MIR. JACKSON'S EXPLANATION.
The Attorney General said that one of his
chief reasons for appointing receivers for the
Oriental Bank was that after conferences with
directors and officials of the Carnegie Trust
Companv he had been assured that that com
-,o,,,, would carry out scheme OF paying the
danositors in full similar to the one proposed
, tho hank itself II feel certain that the