The Boise citizen. (Boise, Idaho) 1906-1910, 1908-04-28
CHARGES OF RECEIVERS.
SCANDAL CAUSED BY IMMENSE sums PAID TO
CLOSE UP FAILED BANKS


We give herewith salient from the article which deals with
subject of general interest:
ANYONE familiar with the huge expense bills which filed by the
failed how great injustice often the
stockholders and dpostors of suspended institution by exposing
depleted scanda1ou charges Although done under
guise the imposition such little
absolute robbery An investigation recently made into the
liquidation failed banks in New York State revealed
startling showing with total expenses running high
25 per of the taken by the receivers In
the of failed bank where the receivers took in
s1oooOOO total expenses footed up less than $25OOOO
investigation started several years by AtorneGene
Davies that the eceersp fee scandal
had reached alarming proportions In compilation OF receVersP
expenses made under Mr. Davies direction found that
in the seventy institutions that iqudated the decade
prior charges high 30 40 and in some
of the taken by the receivers
These results were in the cost of lqudang
national Federal system of having the Comptroller
of the Currency of his deputies receiver of failed IN
s5iton plan worked admirably bank the
services expert adjusting its affairs for the best advan-
tage stockholders and dpoo alike In the of 1876 national
have gone the hands of receivers the liquidation
charges averaged 41O of the sums taken IN
has been known tor vars past that the receiver
snip system in New being grossly abused being operated
largely interest of the receivers whose chief ambition
seemed be to pile up huge fees.
Under the possible for the receivers of failed
charge per Of the taken in and paid out IN ad
diton to expenses and the usually liberal allowance tor
Besides this it has been left to the discretion OF the
court where the have been entrusted with unsua responsible
among lawyers appointments receivers whenever bank
failed This an absudiy when nine of ten trained
banker familiar with business would be most competent to effect
speedy adjustment of a crippled institutions affairs
The neca committee of bankers appointed Governor Hughes
to suggest changes the laws governing State banking and
trust companies which took its work just after the October panic
vent on record as follows
he Superintendent should by law be made the receiver OF all
failed corporations subject his jurisdiction receivers should be
appointed by the Superintendent precisely receivers Of national
banks appointed by the Comptroed OF the Currency lhe ad
paon of such should be under his supervision and reg
lar reports conditions should be made and become matters OF
public record objected that this placing too great power
the hands respect large and important terests we
that similar possessed and exercised by the comp
roer of Currency with reference to national banks
the politicians realized that the people were becoming
stirred I'D about the recevershp abuse that the system of fat
fees mpered by the popular discussion of its evils there was
great cry raised concerning the bad effects OF giving such
great powers to one man. from whence these objections
ought assured people the real motives behind
objections but the cry of raised with telling
effect and Attorney General himself quoted by news
paper declaring the proposal to take the OF appointing
bank receivers of the lodging with the Sup
banks prepoeous and altogether an infamous
suggestion those who really believed that the power
great give any and argued for the retention OF
court ceversp the theory that would afford greater pro-
dposors and that be for the best interests OF the
public at large.
Abou this time however affairs of the crippled Brooklyn
down during the panic the subject OF public
discussion and soon about that the of
pointing receivers and the relations of more or less unknown
LAWYERS selected counsel ocrtm
openly charged least instance OF the lawyers
o had been appointed counsel had agreed condition to his aP
ponten the fees with the person who
responsible his seeconn other words 1t reported to be
merely codbooded proposition whereby attorney for the
under agreement give part OF his goten gains
The very such made offered incentive
for the greedy attorney make his expense bill as large as possible
the bank pay large claim as the assets