The Washington herald., 1912-08-06
NEWSOFALEXANDRIA
Judge Norton, One of Receivers for
Defunct Trust Corpora
tion Resigns.

Alexandria, Va, Aug. 5-Judge J. X.
NJ Norton. one OF the receivers for the
defunct Virginia Safe Deposit and Trust
Corporation, this morning rendered his
resignation to Judge L. c. Barclay as
such and II was accepted This was done
in chambers. The court named Walter
c. Foster, a special commissioner in
chancery. to settle the accounts and re-
port such settlement TO the court. The
court authorized Mr. Foster to appoint
bookkeeper or accountant TO aid him
in the wnrk.
Judge Norton gives his reason for re-
signing that the Virginia Court Of Ap-
peals has held that the receiver must
bring any suits that may be desired
against the directors of tie corporation.
and that as he was director six months
prior to the. failure of the trlst COM
pany he felt that IT was his duty to re-
sign.
Following the closing of the defunct
concern December q, 1910. Judge Norton
was appointed one Of the receivers for
the concern. The other receiver was
John S. Barbour, and the court subse-
quently appointed in his stead Howard
W. Smith, and the latter continues as
receiver.
The decision of the Court of Appeals
which Judge Norton refers to is not one
given in She case of the Virginia Safe
Deposit and Trust Corporation, but il
was handed iown in the case of Sanders
against the Bank of Mecklenburg, re-
garded as a parallel case.
This case was decided by the Court of
Appeals on June 1G last, and it was held
by the court that to permit creditors of
an insolvent corporation to sue its debt
ors would lead to infinite confusion.
Certain depositors in the Mecklenburg
case filed suit against certain directors
of the bank in which they alleged that
the bank failed owing to the carless
negligence and utter disregard to their
duties as directors. The bill was de-
INJURED to by the directors, and the Cir
cult Court sustained the demurred and
dismissed the bill on the ground that the
suit should have been brought by the
receivers, instead of by the various
stockholders. as the Supreme Court sus-
tanned this decision
A part regarded as important brought
out in the particular case in question
which will, is thought by some, have
bearing on the case here is that the
omission in the bill to state precisely
at what time the directors assumed the
duies of heir Office. or when the COM
plainants became depositors, does not
1t was also held by the court that
upon the death of an individual all
rights of action which survived passed
to his personal representatives and are
to be asserted by him.
This decision will. it is believed. have
an important bearing upon the case of
the Virginia Safe Deposit and Trust Cor
poration.
A few months. following the failure
Of the foregoing concern, suit was
brought by certain depositors in the
Trust Corporation through their attor-
neys. S. G. Brent and S. B. Whitehead,
against all OF the directors. who had
been connected with the Trust Corpora
ton since its organization. By this suit.
the depositors hoped to hold the direc-
tors responsible for their losses. At the
time Judge Barley. of the Corporation
Court. entered an order making all of
the depositors plaintiffs to the suit in
this suit
Directors of the concern subsequently
fled a demurrer. but no decision was
passed on the demurrer, pending the de-
cision of the Appeal Court in the Meek
enburg case. Several members of the
legal fraternity are of the opinion that
this suit will be dismissed. after which
the receiver will be directed to enter a
new suit against the directors.
While engaged in hanging curtains atI
her home in South Royal Street this
Mrs. Margaret Shinn fell from
a step ladder. fracturing her left arm.
Alexander ]. Wedderburn this after |
noon, sent the following telegram to
Theodore Roosevelt. addressed to Chi I
,ago. Ill:
Understanding you desire Southern