The sun., 1908-01-16

COCK isn't going South at all.
Let the KnlckerbOcker Trust Com
pany Resume Business.
A grave question which not only affects
this whole community but reaches far
in its outside effects and external in
fiuences is whether the Knickerbocker
Trust Company shall be permitted to
resume business as a trust company or
shall DO forced into the hands of per-
manent receivers; whether it shall be
regenerated and inducted into new life
Of future prosperity and usefulness or
shall be cut of summarily, Obliterated
and crushed out of existence.
II needs no argument to convince
business men or almost any other in
telligent man familiar even to a mild
extent with business affairs that the
continuance of receivership or the con-
version Of temporary receivers into per-
manent receivers is a step to be avoided,
because it is the ultimate step which
oompels the wasting of assets and forces
the sacrifice of securities which if prop
erly nursed for a moderate length of time
might be sold or redeemed at par.
The practical question is: Shall the
temporary receivers of the Knicker-
booker Trust Company be made perma-
nent receivers and continued in power
so as to wind up the company and end
il forever. or shall the plan of resump-
ton which has been submitted by the
depositors' committee be adopted? This
proposes to avoid rash liquidation Of
assets, to rehabilitate the company and
make il an active going concern. In
this way the sacrifice Of income derived
from established business as a trustee
| will be avoided.
The majority of the capital stock will
be put in the hands Of three voting trus-
tees, who will select new directors. The
| stockholders have already subscribed and
paid In s., 400. 900. and no dividends wi
be paid on the capital stock Of the com
| pany until the depositors are paid of in
! full. The depOsitors will receive 20 per
cent of their deposits in the form Of
transferable certificates and 10 per cent.
cash upon the date of resumption.
| Moreover. it is confidently hoped that
within two years and four months after
the date. Of resumption the depositors
will have been paid in full. Meantime
they will receive ; per cent. interest on
their balances.
GROVER CLEVELAND wrote to the de-
| poeitors' committee on Saturday:
| 81 suppose the assignment Of my deposit account
! against the trust company heretofore transmitted
| to the committee has placed ME among those who
have given attention enough to their predicsment
depOsiOrs to be convinced that they better rely
upon the plan adopted by the committee for relief
than upon the SLOW. expensive wasting and always
disappointing procedure OF legal recelvershIp.'
This sentence Of our former President
tells the exact truth. Alegal receivership
| is proverbially slow; it is ever expensive;
il is inevitably wasting and always disap-
pointing. The word -receivership,' like
the words of kindred implication, "insol-
vency" and bankruptcy" carries the
J meaning of unnecessary waste, OF fearful
expenditure and of utter destruction.
The temporary receivers in a report
published last Sunday call attention to
statements with respect TO the probable
cost Of the receivership and endeavor
TO argue that permanent receivership
is a good thing and that the fees of re-
ceivers and their counsel are somewhat
trivial. These gentlemen say:
The fees OF the receivers themselves are limited
by law in the aggregate 10 sum TO be nHed by the
| court. and in event TO exceed ~ per cent. of
the amount OF moneys passing through their hands.
| The receivers have also entered into agreements.
subject the approval Of the court with the three
counsel whom they have been authorized to retain.
and which agreements shortly 70 be submitted for
the approval Of the court under which the aggregate
amount of fees OF said counsel cannot exceed three
quarters of per cent. upon the amount OF moneys
passing through the hands Of the receivers"
1T win be obvious that the statements referred
to are greatly exaggerated and that the expenses
Of the recevership cannot amount to any extraya
giant or undue amount. lp view particularly Of the
limitations Of the statute and the requirement that
all Of these amounts shall bs approved by the
court"
What seems obvious 10 a receiver NAV
not be 50 manifest to crippled depositor.
Whether the expenses Of a receivership
are "extravagant' or not depends some
what on ones point Of view, and an
impartial or even moderate estimate
can hardly be logically expected from a
receiver or his counsel An amount how
ever large, provided it does not violate
some statutory limit, must necessarily
seem TO q receiver to be not undue
II the temporary receivers are made
permanent by ordet Of the court the
loss to the depositorj will amount to over