New-York tribune., 1908-03-25
RECEIVERS ASK S6OO.O0
KnickerbOcker Says 5000 ,0O0and No
Nore-Discharge Delayed

So prolonged was the discussion yesterday before
Justice Clark in Brooklyn. concerning the method
of the final accounting of the temporary receivers
of the knickerbocker and their fees that the sign
ing of the order dischargng the receivers ana per
mtting the resumption of business by the trust
company postponed until this morning The
temporary receivers. through their counsel George
". Nickersham. made plea that pending ADJUST
of the question least s6o0.0oo should be set
aside of the trust company before
the property turned over to the new director
ate. The directors through their counsel. said the
trust company would not pay than s200.o0o
receivers and counsel fees. Attorney General
Jackson that ne would not consent to fees
amounting to more than s2oo,otN
Mr. Wickersham said the temporary receivers
had not had time TO make detailed accounting
He wished TO offer in court an affidavit Of certi-
fed accountants saying that the books of the re-
ceivers correct Attorney General Jackson
through his deputy. Mr.. De Ford. said he would
not listen to that.
Finally counsel for the trust company and
for the receivers agreed TO copy from the books
of the company statement OF the accounts of
the trust company when the receivers took
charge. in October last. and statement OF the
accounts March 81. and that the receivers
should be bound by that statement. pending de-
tailed examination of the books and the affairs
Of the company by certified accountants selected
both by the receivers and the new board Of df-
rectors. The receivers Will not be released
100000 each dismissed until the certified &C
countsnts have made a report o the
According to the summarized statement of the
condition of the books submitted by the receiv-
ers and accepted by the trust company officials
the receivers had March y more than sl3.-
0e0 in cash hand. having collected about
s9.5oo0ee- The loans had decreased. accordingly
from s@S.eeo.00o to about s29.00o zoe. The
p"hseS OF the receivers in the five months have
been 100000 The amount due depositors
i,7a
offsets The statement says that the trust COM
pany has capital and surplus amounting to al
$50 900
Julian T. Davies represented the trust company
and Herbert L. Satterlee the depositors committee
IN court yesterday. Mr. Davies told the court that
a detailed accounting would be filed Thursday.
Mr.. Wickershdm. counsel for the receivers sa id
they had no desire TO avoid the responsibility OF a
detailed accounting, but wished to aid IN the
speedy resumption of business by the trust COM
pany- He asked that the court should make sug-
Sestlon as 10 the amount OF fees the receivers
should get He said: The receivers have han
died property valued 1888 600 900, of which s76.
0o0.o was trust funds held in fduciary capacity
OF all ths 500 000, ,O0o in cash.
He argued that the Haggerty act of 1889. and
amended in 1906 did not apply to temporary re-
ceivers. but that the Civil Code did. The code he
said, provided that temporary receivers should
not get than per cent of the actual cash
handled He said: II do ask > per cent
(s1 600 000p proper compensation but I think
court Snould set asde SOoO,ooO 1oF COunSe! ana
receivers fees. That would be in accordance with
precedent Phe proposition that amount
ordered by the court should be deposited with the
United States Trust Company pending final deci-
sion OF the of the receivers fees
Mr.. Davies insisted that not more than $500 900
should be aside, that the board of directors
had agreed 1t would not pay the receivers more
than $1,000 Here MIR. De Ford nterpOsed The
Attorney General he said, says that s2G0,0 600 is
sufficient and that amount not greater than
$3.50, 000 should be aside for the payment Of
all fees in the ieceivership. Mr.. Satterlee said
that the depostors were agreed that S50,OO0 for
each OF the receivers and counsel sufficient