New-York tribune., 1908-03-01
MORE BANK RECEIVERS
Continued from first page.

proposed plan, by which the Metropolitan Trust
COMPANY was to lend the Oriental Bank enough
money to pay its creditors. would have been a
violation of the state banking law said he
heatedly. THE Oriental Bank was rotten in
stitution and had been rendered so by those on
the inside That was the reason why the New
York Clearing House refused to carry it any
longer
THE banking laws limit the amount any
banking institution lend individual or
corporation. and the liability of the Oriental
Bank was in excess of the amount that the
Metropolitan by law could lend it. The Super
fntendent of Banks told the Metropolitan
Trust Company was not big enough TO swing
the deal"
S. Stanwood Menken denied Mr.. Jackson's as
sertion that the Orentals plan of having the
Metropolitan Trust Company pay its depositors
would he violation of law. That company. he
said. could lend under the state banking laws
more money to the Oriental Bank than it needed
II settle its Indebtedness. He said that the
Oriental owed depositors about 81, 100000; that
it had 100000 offsets and s5IOooo in cash.
king the amount necessary to pay depositors
approximately $2,93O,OO0. tt surplus and
capital Of the Metropolitan Trust Company. he
said, was over $9OOO.OOO. of which it could lend
40 per cent to a single corporation.
Mr. Jackson made the following statement in
regard to the appointment of receivers:
On February the Superintendent of Banks re
ported the Attorney General that 1t was unsafe
business Since it suspended payment it has made
effort to continue in business on recelynS tne
became my duty In this case to proceed against II
required by w N No tbs plan Sa re
General The so-called plan Ior audaton mas NO NO
business or quit doing business. The alleged plan
-ha he
obligations to make proper account thereon
The Attorney General also gave out cory
of q letter from Philbin, Beekman & Menken
containing the banks plan of liquidation 1t is
in part as follows:
The METROPOLITAN Trust Company 1 =, has mas agre5d Ss
of every kind subject your approval and its
tbs of e fhe a Of
stockholders and a bond of $500 600 which ,T the
directors of the bank prepared to give Inc
trust e9mP4ny Shall be liquidaed under
Placed Pb I,rection n of committee consisting of
resident Brayton Ives: Hugh Kelly. president
id ident fe Of the Fourth National Bank This loan
for two years and be nd repaid t bear as 4
est on Whatever amount is due from day to day
at per sent and The fbe banR nmderta1dng is that ali
deposiors TO be PAID at once tne net an tha
banking department and other liabilities or the
bank be promptly met
Afidavits from Brayton Ives and from .
Stanwood Menken We're submitted TO Justice
T,atzek on Mr.. Philbin's application for an
order n show cause why the order appointing
receivers should not be vacated Mr. lvesS
affidavit follows, in part:
That the Metropolitan Trust company auimor1aTr I'M 80
dannpapt to enter agreement Tor VI. pay
ment of all depositors of the Oriental Fang 10 fi
nj arn,nnt due them taking security therefor
tL.t ~ sSats ~ the bank other than its clearing
House membership franchise, once fnIhIure fnI anu anu
~, and
nroVed the formal contract TO carry INTO 80
said agreement. and that the Metropq!ItaI, o.
Gnrpanv has been at all times since feoruaiy - -
ana now is ready and Wiling, upon procurtns ai
assignment of the above nenuoneo asIe's The mi
amount due them forthwith
In his affidavIt Mr. Menken recites no" the
pan to settle with depositors was prepared anu
then describes at length mis- inerfectual eho'.'
20 see the Attorney Gensrsl. the hna4 rssW'
beans che Attorney GeneralS motion % n@v0