New-York tribune., 1908-03-05
NEW ORIENTAL PLAN.
JACKSON GRANTS DELAY.
Counsel for Depositors' Committee
Modifes Original Agreement.

At the request of counsel for the depositors'
committee of the Oriental Bank Attorney Cen
e-al jackson yesterday agreed 10 postponement
for one day of the argument TO show cause why
the order appointing temporary receivers for the
bank should be vacated. This request was
based on the statement that the Oriental had
another proposition to submit for Mr.. Jackson's
consideration.
II is understood that this new plan. which in
reality is only a modification of the original
agreement between the Oriental and the Metro
rolitan Trust Company. will explicitly provide
for the immediate payment in full of all credi-
tors Of The Oriental The depositors' committee
was instrumental in bringing about the modifi-
cations. il is said. Under the modified plan the
trust company viii receive the s2oo.o00 bonus for
making the loan 10 the Oriental Bank and per
cent interest on the loan as well However. it
is understood that the salaries of the Iiquidat
ing committee are TO be limited. well as the
amount It can expend for clerk hire, counsel
fees ard other expenses. The powers of the
barking committee will also be restricted
- am perfectly willing TO let them make
other proposition" said the Attorney General
''bu; I tell you and I'll tell them I am going to
put any and all propositions they turn out
through the acid test"
THE acid test'?"
Certainly. the acid test. That is. am going
to go over them so carefully that if there is any
,oker or niger in the woodpile' it will be found
out before II is late"
Mr Jackson was not told Of the new PROPOSE
ton until last evening Mr.. Cntermyer, OF
counsel for the depositors' committee, called
him up. Before this action taken there
had been a tvo and half hour conference in
Mr. Untermyer's Offices between counsel for the
hank ard for the depositors. After this con-
ference AIr Unterrnyer said that there had been
eral situation.
las ] have said before exclaimed the At
torney General after hearing of the new propo-
sition 'ali / to do is to protect the de
posirors and other creditors OF the oriental
Bank Let them assure me that these Will be
paid Immediately and in full, and 1 will move to
vacate the order appointing temporary receivers
myself
How about the stockholders" he was asked.
-'Oh. we'll, if they want 10 rob themselves.
willing ne robbed. that's their lookout
and not mine. My duty is TO protect the credit
ors and l am going TO do that"
The position Of this company" said one Of
the officials Of the Metropolitan Trust Com
pany, is plain. The Oriental people came to Us
with e business agreement, which after exam
ination We decided to accept. Now the At
torney General disapproves of the plan We
decline be drawn into any controversy be
tween him and the Oriental this subject.
As 10 our depositing the amount of our loan TO
the Oriental with another banking company.
suggested by Mr.. Jackson. have nothing to
say about that until something has been said
directly 10 Us the subject. The Oriental peo-
pie have not as yet made such suggestion
TO Us"
The law firm Of Philbin Beekman & Menken
replied 20 the Attorney Generals statement of
Tuesday through Eugene a. Philbin. Mr. Phil
hfn pointed out that every incidental charge
would have been borne by The stockholders and
directors under the agreement and said the
legal fees would have been small The state
nlent said that if the Attorney General insists
upon receivers the East Side depositors would
suffer severely. they would fall into the
hands Of loan sharks who frequent the dan
gerous waters OF the Bowery.