Semi-weekly herald., 1908-01-20
COLORADO STATE BANK SETTLE
MENT


State bank The Herald figured that de-
positors would in the long run receive
from 20 to so per cent of their money.
Today we say depositors will receive
dollar for dollar with 5 per cent inter
est within five years II they accept the
proposition agreed to last evening be-
tween the advisory committee consist
ing of Messrs. Harry Jackson. j. A.
Pulliam, Alderman Casey and F. r..
Graham on one side, and B. N. Free
man, W. c. Chapman and Frank
Eldredge on the other side The agree
ment Will contain some fourteen to six
teen clauses. all of which were agreed
to by unanimous consent. OF course
it took time and the advisory commit
tee held out for everything that could
be obtained for the depositors, and
when 1 O'Clock came last night, after
five-hours' session the committee felt
that II had accomplished good work
for the creditors of the closed insti-
tuition. At this writing the terms of
the agreement are being typewritten
and will be ready for signing either
this evening or tomorrow wnen APPROX
ed by both sides and their respective
attorneys, then Cherman Berndt will
be asked to call a meeting of deposit
tors to ratify their action. The plan is
so commendable that there should be
no question of its acceptance by every
who has q JnlI1r In tho Tho
terms of settlement In brief are as
follows:
/. Depositors with $50 and under to
be paid in full within ninety days.
2. Pagosa Springs bank to be segre-
gated on the plan proposed by the COM
mittee from Pagosa Springs.
g. The bonds to be issued TO be cut
from $4,000 to $4,000 and to be Sc
cured by the fifty-foot two-story build
ing occupied by Hahn and the Thea
torium and the three-story building oc-
cuped by w. G. White and Otis, Nc
Cir & Company. These buildings to
be freed from Indebtedness and bonds
issued within six months.
possible and the last money to be paid
within five years with per cent In
terest.
5. The affairs OF the bank to be
taken out of the hands of the receiver
and placed in the hands of three trus-
tees of which b. N. Freeman is to be
one and have the affairs and business
in charge for which he is to receive a
salary, furnishing a satisfactory bond
for the faithful discharge of his duties
and to work in conjunction with the
other two trustees whose duty it will
be to act as advisors and look after
the securities.
There are several other articles to
the agreement, among them the dis
missal of the criminal and civil suits
and calling on depositors to use all
honorable means to keep the officers
of the bank from being hampered with
suits of any character as it will be to
the interest of all creditors to do so.
To secure the faithful discharge Of
the banks Indebtedness and to protect
the depositors against loss B. N. Free
man places in the hands of trustee
to be named the bank building which
includes the property covering the two
lots and another unimproved lot, val
ued at $4,000 to $4,000. In the hands
of the same trustee w. c.. Chapman
places realty valued by the committee
f,,Ixt In.
gentlemen agree that $4,000 will be
raised in cash among the shareholders
within three months for the use OF
depositors and also that the Chapman
and Hampton deposits OF $S, 500 remain
in the bank until all other depositors
are paid in full. If at the end of Ave
years the assets of the bank fail to
pay depositors in full with 5 per cent
interest then the above property placed
in trust to be used, or so much thereof
as may be necessary, to pay depositors
in full.
In addition to the above Messrs.
Freeman, Chapman and Eldredge give
a personal guarantee, which will cover
all their anSlDle nolulnSS OUTSIDE OF
that placed in trust, to pay depositors
in full.
1t will be seen that these gentlemen
leave their deposits of $500 and guar
antee $4,000 in cash to start with and
then place in trustees hands prop
erty valued at about $4,000.
To do this means straining every
point on the part of the bank officials.
Mr. Freeman, however. is conf
dent that the bank will not owe
a depositor dollar inside of two
years-that he will be able to
dispose of the assets in such way as
to realize sufficient money to meet
every requirement.
The comittee feels that 1t has a
proposition that 1t can recommend and
being among the heaviest depostors
will urge its acceptance. 1t stops all
litigation and will improve the banking
situation very materially. For any ad-