Evening journal., 1908-01-03
INVESTORS In DEFUNCT REPUBLIC
LOAN TO GET FIVE CENTS ON DOLLAR
Only $4,000 Left for the
Creditors, But the Receivers
Lawyers Got a Big Share
Of the Money

OI IilS WUney
Investors in the defunct Republic
Savings and Loan Association of New
York, and there are many investors in
Wilmington. will get about five cents on
the dollar. Lawyers representing the re-
ceivership have gotten nearly all the
rest Of the money derived from the sale Of
the assets. The lawyers for the receivers
got $4,000 for three years for looking
after the defunct concern, the receivers
received $4,000 and the investors get $780,
900.
Wilmingtonians had nearlyS10O000 in the
association. The concern failed in 1900
and many Wilmingtonians and Della
wareans who were disgusted at the pros
pect Of waiting for the receivership to ter
inmate before they could get their money
sold out their claims at much better
proceeds than they would get now on
the hve cents on the dollar distribution.
Herbert H. Ward and Andrew C. Gray
were among the counsel for the Della
ware creditors.
Compromise Saved the $4,000.
Alexander McKinny. as referee OF the
Republic Savings and Loan Association,
fled his final report in the County Clerks
office, Brooklyn, yesterday, settling the
financial tangle in which that institution
has been involved since it went into bank
ruptcy in June. 1900.
Edward C. Riggs and Otto Kelsey were
the receivers appointed in 1900 by Judge
James A. Belts. G. d. B. Hasbrouck and
Russell S. johnson were the lawyers
representing the receivers in the pro-
ceedings. Mr.. McKinny was appointed
referee a year ago.
All that is left Of the original assets Of
the company, which amounted to l0s6,Oo9
at the time the receivers were appointed,
is SsO,Oo0, according to the report. Mr..
McSinny states that had not a compro-
mise been reached between the receivers
and stockholders, by which all claims n
lawyers and receivers since 1908 are TO be
waived there would have been nothing
left. AS it is, the stockholders will re-
ceive about per cent. Of their invest
ment
Mr. McKinny adversely criticises the
system Of receiverships in common
practice throughout the State and gives
figures to show how lawyers and
others used the bankrupt concern as a
means for making big profits at the
expense Of the investors.
Claims Paid to 1908.
Suits are now pending to test claims
for services by receivers and lawyers
from 1868 to date. Their claims up
TO 1903 have been paid in full, and in
ihis period the total cost of admins
tering the affairs is S193.Oo0 including
F4r- r
the protest against paying the law
yers any more the claims nave been
waived and the affairs will now Se set
tied. In his report Mr.. McKinny
states
Great stress was laid upon the fact
that the attorneys charges were ex-
cessive and the closing Of accounts
unnecessarily prolonged. Under the
proposed compromise the receivers
have agreed to waive their commits
sions and withdraw their claim for
attorneys fees for the period set forth
in their final account. or since 1908,
thus eliminating several OF the CHIEF
objections to their accounts, and in ac-
cepting this settlement the sharehold-
ers have obtained in a large measure
all they could have accomplished by
further litigation.
ClnUOL see IItI6IOIbs WflfiI more
can be accomplished by the continuance
OF this expensive proceeding. It is
indeed, very unfortunate situation
for the shareholders TO find that the as
sets OF this corporation, which were
placed by the State Banking Depart
ment just prior to the appointment Of
the receivers at S1.0S6.O00. and subse-
quently fixed by the receivers them
selves at 100000, have shrunk to
about $4,000, as appears by the re-
ceivers' final account This was, ap-
parently, due TO two causes:
''First-To the improvident and reck-
less investments made by the officers
Of the corporation.
"Second-To the expenses Of the ad-
ministration Of the receiversnip
Only $4,000 For Receivers.
I'VE find that by the receivers ac-
count the assets. which were placed
at S1,0S6.00O. realized only S2T5.000, and
Of the S275.000 It cost $4,000 TO ad-
minister the same. or this sum the
receivers obtained only $4,000 between
them for their fees in the proceed
ing. the remainder IS for attorneys
fees, referees fees. disbursements OF
counsel, salaries CT clerks and rent
1T will be observed that the receiv-
ers got very small part of this out
lay the bulk of it being expended pri-
marilv for legal expenses.
The receivers impressed me favor
ably with their apparent desire TO aid
the court in every way possible and
TO explain every detail Of expense and
necessity for the same. OF which they
had any knowledge. but It did appear
10 me that their attorneys had unnec-
essarily prolonged. these proceedings.
which should have been closed some
time ago."