Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-06-17
IMPORTANT EXCEPTION
IS ARGUED TODAY
American National Bank Claims to
Be Preferred Creditor of Trust
Co.. Decision May Affect
DepOsitOrs.

! One OF the most linpoItaht eaCep
tions to the report of Special Com
missioner John NJ. Johnson in the
Virginia Safe Deposit and Trust Cor
poration case, which is OF vital i'm
portance to tile depositors in that in
stitution was argued this morning be:
fore Judge L. c. Barley in the corpor'
alton court.
The exception was made by Gardner
L. Boothe representing the Americal
: National Bank OF Washington. Ac.
I lcording to the petition the Americas
National had an agreement with the
trust company for the collection of the
items of the former institution at the
points where the trust company had
branches. A settlement for all items
collected up to Wednesday OF each
week was made by the trust company
on each Friday. During the week
previous to the closing Of the trust cam-
pany on December 2Sth. collections t.
| the amount Of S6253.76 were forwarded
by the Washington bank and coliec-
| ted by the trust company. Mr.. Boo ;he
claimed that the G. J. RIxcy. thn
managing dir, ctor CT the institution,
knew that the trust company was ID
solvent OH December 9th. 1910 when
he had an interview with state Ranh
Examiner Barksdale, therefore the
amount collected for the American
National Bank was preferred claim.
Commissioner Johnson in his report
refused to put this amount in The pre-
ferred claim column.
II the exception Of the Amrri'an
National Bank is confirmed, it 5 sud,
that Mr.. Joanson's repor, will b.
completely overturned aS a person.
Hho deposited after the bal officials
had knowledge that the bank was ~
solvent would become preferred credl
tors to the amount so deposited II
could then bc a question If fact as ~
the time OF the knowledge uf snch
insolvency which woal -rtal a ire
mcudous amount Of litigation
S G. Brent, representing a large
number of creditors Of the trust COM
pany and the commonwealth opposed |
the exceptions of the American Ma |
lional
This afternoon AIR. Brent presented
the exceptions Of the Commonwealth |
tn Mr.. Johnson's report, 10 his petition |
stating that the state was a preferred
creditor to the amouuto its deposits.
Judge Barley announced that ne |
hoped to be able to tnter a general |
decree on next Thursday in refeuce TO !
all the exceptions which had been filed. |
A decree was entered referring back /
to the commissioner, without ruling the |
exception of SECOND National Bank of |
Cuipeper and District National Bank OF |
Washington and to report upon petit |
ton OF H. H. Miller which was filed |
today.
petition was filed yesterday in the
Circuit Court of Richmond in the chan
rerv suit of S, r. Donahoe, state audi
TOR against t. w. Robin. on. treasurer
Of this city, and his bondsnlan, the
Virginia Safe Deposit and Trust Cor
poration, seeking to attach $1,000 in
houds, on deposit with the state treas
urer, belonging 10 the Virginia Sale
Deposit and Trust Corporation. Ar
guments on the petition will be heard
later
The papers recite that Treasurer Rob
inson had IN his hands certain funds of
the state OF Virginia, deposited with lhe
Nirginis Safe Deposit and Trust Co.'s
poration, which concern Vas also his
bondsmau. The trust company failed
and the state was left with neither its
money on deposit nor bondsman on
whom it could fall back. The tru.t
company also did an insurance oYsi.
fess and IL thai connection mad made
the deposit of certain bonds with the
state treasurer in the sum of $4,000,
as required by the commissioner OF in
>u;anre. and it is this sum that Audi
tor Donohoe seeks 10 attach as property
of the trust company, against which
,he state has 3 donhle c!aiHi.
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