Semi-weekly herald., 1908-08-10

l
eventually be resolved into cash and
paid out to the depositors. The gen.
tiemen comprising this syndicate with
cut waiting for any further subscrip-
tions but with ratification Of those A.
| ready made propose to furnish forth
| with tby forthwith mean as soon as
the necessary papers can be drawn)
the amount Of money necessary to
purchase all those assets classified by
the receiver as doubtful" or worth
less" at a sum, which added to the
| cash in the receivers hands and add
ed TO the good" assets to be left In
the receivers hands viii be sufficient
| to pay every deposition In full, and
every creditor OF this bank dollar for
dollar.
Under this plan the receiver will
continue. but will be relieved OF all
doubtful" and worthless" assets and
will simply hold. collect, liquidate and
disburse to the depositors the good"
assets, the cash now on hand and the
cash to be paid to him under this
arrangement.
Now what do we offer, and l speak
in the hearing of principal repre-
sentative Of the syndicate. man well
known in this community. So as to
make more evident the good faith Of
these propositions, permit me to sug
gest the desirability of the acceptance
by single illustration. The bank now
has certain assets, they are in the
hands of this court; by some It is
said they are sufficient to pay in full
and in addition to pay the sharehold-
ers, by others this is denied, denied
that the present assets In the hands of
the receiver are sufficient to pay the
debts of the institution. No one is,
Therefore. In any position to dispute
with your honor for q moment, the de-
STABILITY of the proposition which we
are offering. for It is proposed under
any one Of these agreements II made
effective by the order of this court
to make an addition to those assets
which the receiver now has from
the institution, Of property which
the receiver and other citizens of this
town and his attorneys agree to be
worth conservatively at least $4,000
or practically 25 per cent OF the total
Indebtedness Of this institution. New.
that is something. something to each
individual depositor. The property
specified are bonds of the Freeman In
vestment company $4,000 secured
upon the bank building" and upon
this the receiver has told me, his at
torney Mr.. McCloskey admits, and 9th.
ers whom have consulted admit, and
believe 1t is the opinion without ex-
ception that the property is ample se-
curity for these bonds, in other words,
there are $4,000 just as good as gold
dollars, with the exception that they
are not legal tender for the payment
OF debts. The other property is the
property Of Mr.. Chapman. ! am not
!. familiar with that property but un-
derstand that valuations are placed
upon 1t from 100000 to $4,000, but
Il
have not had any suggestions that 1t
was not worth at least $4,000. Con-
tanned In the petition is the offer to
defer the deposits of directors. Mr..
Chapman and Mr.. Hampton. amount
ing to some $4,000 until the other
depositors are paid. SO ON the one
hand we add 100000 at least to the
assets OF the institution to the security
of the creditors and on the other hand
we reduce the amount OF demands by
$4,000 and some odd hundreds OF dol.
lars. SO that the property is increased
and the debts diminished.
Then ensued a colloquy between Mr..
O'Donnell and the court in the course
of which Mr.. O'Donnell said: Now 1
stated to the receiver and l desire to
say now with all the seriousness and
/ all the earnestness of which l am
/ capable that l cannot see how court or
| officer. or attorney, or individual cred.
itor. having due regard to the interest
| OF this trust can refuse such a propo-
sition. You asked how this was to
be brought about, only answer that
the proposition contemplates security
exactly as anybody else would ask for
1t. and that If there be any prior mort.
gage on the property of the Freeman
Investment company that mortgage is
20 be properly removed from the rec
| ords.
The court then suggested that while
he would not state the amount of the
receivers fees at this time nor the
fees OF his attorneys the receiver had
stated. that an agreement might be
reached If list of notes in the hands
of the receiver aggregating $4,000
were set aside to secure the payment
OF the receivers fees. those of his at.
torneys and the receivership expenses,
and held for that purpose. whereupon
Mr.. ODonnell said that he would act
upon that suggestion and see what ar.
rangement with the receiver could be
arranged on that basis. The court,