New-York tribune., 1908-01-19
AID TO KNICKERBOCKER
NAY REOPEN IN MARCH.
Court Delays Permanent ReceiUer-
ship on Committees Good Shozung.

Justice Clark, OF the Supreme Court, sitting
at St George. Staten Island, yesterday granted
q further extension of two weeks in the pro-
ceedings for the appointment OF a permanent
receiver for the Knckerbocker Trust Company
on the application Of counsel who announced
that moro than So per cent of the depositors
had assented to the plan of reorganization as
outlined by the combined committees Of di-
recto1s. stockholders and depositors.
An affidavit presented to the court show
ing that assents had been received representing
more than S24 100000 out of total of s41 0O0- =
GOO. II was also announced that all the d.
rectors of the company had resigned.
This action Of the court that the COM
pany viii resume business, and it was unof1-
Cially stated that IL would do so not later than
March Is. 1t is the expectation Of the Satter-
lee-Parsons committee that enough additional
assents viii be received from depositors in the
next ten days 10 make the approval of the re-
organization plan practically unanimous Many
prominent bankers have agreed to act upon the
reorsanized board, and it is still said that the
presidency Of the company had been offered to
Secretary Cortelyou.
Julien T Davies, Of counsel for the trust COM
pany. made the formal application for additional
time Herbert l. Satterlee. the counsel for the
committee, summed up the situation as follows
We are much gratified TO be able to announce
To-Day 1nat more than majority of the stock
holders have consented To the plan Of reorgani-
cation and that all of the directors have placed
their designations in hands. These two i'm
portant steps were absolutely necessary to the
carrying out Of the reorganization As for the
oepositors, the figures up 10 midnight showed
that we had then received assents representing
SS4.eS31S9 80 Of deposits. OF these S1.411.615 Sc
are in the shape Of conditional assents in which
some condition, such time limit, has been
imposed Most Of these conditions have already
been met and there seems TO be no doubt that
all Of these conditional assents viii become ef
feCtuaI
Also there are s572.17s 50 Of informal assents
in which some defect Of execution remains
be corrected, which are included IN the above
total Also there are S44e.5s6 81 Of assents in
transit from abroad, which are IN the above
total II impossible TO tabulate the assents
received this morning, but they are sufficient to
bring the total Of all assents above sS5. 900 0O0
Thus the deposits represented by assents were
in round figures IS per cent at midnight and
more than s. per cent this morning"
The selection Of the new management" Mr.
Satterlee said. was impossible until to-day. as
the designations OF the old directors were not
received until yesterday Now, however, we can
ask the voting trutees TO meet next week and
take up this important question"
Attorney General Jackson filed with the court
an objection TO the proposition of the three tenn
porary receivers, which provided that counsel
fees be not in excess OF = Of per cent Of all
moneys passing through the hands OF the tenn
porary receivers" He says that great scandals
have arisen in receiverships over the exorbitant
fees paid TO counsel. and alleges that the pres
ent contract is so drawn that the counsel may
collect large fees and then retire If they so de-
sire, without completing the work. He recon-
F7EnQS of saG he
puteo on yearly maximum limit basis and not
on q percentage basis. Justice Clarke reserved
decision.
on q basis OF $5O.oo0.oO0 of assets counsel fees
at the rate Of q Of l per cent would amount to
$4,000. which Attorney General Jackson con-
F7oers too large. The fees Of the receivers are
limited by law to 27z per cent which on the
above valuation n assets would amount to 81
25O.00o