The sun., 1908-02-16
KNICKERBOCKER WON'T OPEN
Unless ACCOUNTS NOW HELD
OFT on SPEC ASSENT.

The case of the Knickerbocker Trust
Company was again thoroughly gone into
before Justice Clark in the Supreme Court
NJ Staten Island yesterday. No decision
was reached and an adjournment was taken
until ? O'Clock next Friday afternoon.
Meanw while the plan for resumption and the
present state Of the company and its re-
sources will again be presented to Bank
Superintendent Clark Williams for his
opinion as to the practicability and safety
Of the plan. Largely upon his judgment
will rest the final judgment Of the court ss
10 whether the company will be allowed to
resume. The lawyers for the depositors
and the company agree that all that can be
done 10 rehabilitate the company has been
done and the matter is now up to those who
lave failed TO assent to the plan and to the
authorities.
When court opened yesterday Julien T.
Davies, counsel for the company, asked
hat the motion to make the receivers per-
mlnsnt stand over and that the plan be
sont to the Bank Superintendent for a report
Upon its safety and practicability. He said
do not make these motions with the spirit
NJ hopefulness We have used every means
that NC know how to employ to reach the
d"postOTs and TO obtain their assent to this
plan Of resumption, which has seemed TO the
many trained minds who have gone over II
- he lust and fair plan and to be a praCti-
cable plan, and a safe plan within the assets
of the kniCkerbOCker Trust Company. We
have obtained the assents to this plan Of about
80 per cent. Of the depOsitors. There are
about 10 per cent OF the depositors who have
not assentCd. We had hoped that that 10
per cent would he very considerably reduced
today. We find that there are Some de-
positOrs. and quite a large amount in figures.
one to two millions Of dollars it Ia dificut
to exactly estimate it, that never will be
reached by this plan for various reasons;
some are dead. estates are unrepresented.
addresses are unknown, people are travelling.
snd our circulars and our efforts have failed
10 reach the men Of whom | speak, and Of
course We cannot expect under any circum-
ut1nces to get them.
But the conclusion has been slowly and
reluctantly forced upon US hat there are very
considerable amount Of the depOstOrs Of
his company who are willing to endanGer
the resumption Of business Of this company
on the speculation that II the company
resumes they will receive their deposits
in full, and obtain that advantage over the
great mass of dspositors who by their iudG-
mont have indicat od their willingness to come
into the plan because OF their belief in it's
safety and practtcabillty and its reusonab ble-
ness.
Now there are many cases in the books
N cases Of reOrganizations where such
holders or stockholders have consented TO
plar. where the Court. having the power.
has exercised that power to put pressure
upon the recalCtrant minority who are seek
ing 10 benefit themselves At the expense of
the others. This. unfortunately for the great
majority who | ami sure we now represent.
40 per cent OF the depositors. is not q case
in which the Court has any such power. We
must ume or not resume. and " We resume
the depositOrs who don't assent are in a
position, IL they choose. to withdraw their
money. But we still hope, notwithstanding
the dangerous position that this matter is
in that these men who up to this time have
resisted all our efforts may see the light
and a large proportion Of them may vet come
in. I think that II they really realized -
these depositors who have not come into
this matter that the Court and the Bank
Superintendent had Yet to say. under all the
facts and circumstances, whether the Kncker-
booker Trust Company would resume. and
II they appreciated the danger that we we're
in of possibly not being able 10 convince the
Court and the Bank Superintendent that we
had enough assenta they would come in.
Herbert l.. Satterlee. counsel for the
depositors' committee. said:
| think that we have now reached physi-
caly all the dspositors we will ever reach
About 81. 800. 900 10 s2.OOO.OOO will probably
never be reached. as the dcpOstors have died
OF are abroad OF from some other cause are
outside our power to reach them. ] regret
TO say that the result has not been enCouraE-
ing Those who have not assented have !
given reasons which am forced to say are |
frivolous and lead 10 the belief that they are
holding out for the sole purpose of getting !
fun payment at the expense OF the great ma |
iority who have assented to the plan. As
counsel for those dspOstors who have come in |
under the plan say now at last that We do ,
not feel that we care to ask for any further |
Of fTv,A hntrR
We have done all that We can do and accom-
plished all that we can hope to accomplish, and |
we are now willing 10 abide by any decision !
the Court may ika.
After granting the request of Mr.. Davies |
to adjourn the motion until Friday and also |
TO put the plan up TO the Banking Super |
ntendent. Justice Clark said
Il is not for the Court to inquire into the |
MOTIVES Of those who have not assented TO
he plan. | think, however. that they over
look the fact that neither the counsel for the !
committees nor the Court has attempted to |
cOerce them. Undoubtedly those who hold !
out look for resumption and for prompt pay
HPnt OF their deposits. ] deem Il proper to
say. having kept well in touch with the affairs
Of he r. ownership and being acquainted with
the present situation, that the holding out OF /
10 per cent OF the depositors is likely to thwart
resumption and lead TO liquidation through |
receivers. This fact should be carefully con-
elOereQ Dy HnOee VINO nave not yet dhSenJeu-
The alternatives now are Reorganization and
resumption under the present plan or liquida-
tiOn through a receivership.
fhp Official appraisal not vet having been
completed, I doubt whether the Superin-
to sndent Of Banks on the reference OF the
matter to him can make a final report. No
stronger guarantee can be given to non
asserting depositors than the prerequisite OF
approval by the Department Of Banks n the
safety and practicability OF the plan OF re-
organization before resumption shall take
place. To this guarantee the experience and
character Of the Superintendent Of Banks
give added force. whether the Superin-
Bendent OF Banks will be able to recommend
resumption without the assent Of a sub
stantial number OF the depositors who now
hold out s very doubtful.
After court Mr.. Satterlee was asked what
he had to say about the chances for re-
sumption.
Its now entirely up to those who have
not aaaantAd All that can be done has |