Evening journal., 1914-02-28
CLOSING The
N.R.E.T. CASE
Chancellor orders Assets Con-
Verted Into Cash for Ger
tifiCate holders
THRIFT DEPARTMENT
DEPOSITORS BENEFIT

An opinion In the receivershfp pro-
ceedings of the National Real Estate
Trust Company was handed down by
Chancellor Curtis in the Court Of
Chancery yesterday afternoon. The
company went into the hands of re-
ceivers on May IS. 1912. The opinion
handed down by the chancellor or
ders the company's assets to be
turned into cash and after all the
obligations of the company have been
satisfied the cash then remaining will
be divided among the certificate hold
ers.
The National Real Estate Trust
Company. among it's various depart
ments, operated and maintained a
thrift department" in which weekly
contributions were made by the sub
scribers In various amounts ranging
from > cents to any desired amount.
Ihe company, In consideration of
these deposits. agreed to keep these
FUNDS separate and to invest the
money only in first mortgage on
real estate. The company agreed. at
the end OF twelve years, TO nav to the
despositor $50 for each scent weekly
payment extending through the
twelve years, with provisions made
Tor the suspension of payments. for
forfeiture and for reinstatement
Provision was also made for security
on the funds.
Al the time the receivership pro-
ceedlngs were started the holders Of
thrift certificates" filed 7a5 claims.
all claiming preference over the gen
cral creditors of the company in the
distribution of the assets After
classification. exceptions 10 these
claims were fled by Peter i. Wright.
receiver for the National Real Estate
Trust Company. and on March 8.
1913. these exceptions nere referred
TO Henry r. lsaacs as master. After
giving due notice. to all persons m-
terested, and after holding numerous
hearings the master made report on
July II, 1913 dividing the claims into
fourteen schedules, according TO the
date TO which payment had been
made, and fixing Monday MAY g.
1872, as the last day on which psy-
ments were due.
The master reported that the company
kept two files one called the live" cer-
tifcates and one called the ~lapsedr Ger
tifcates. of the certificates represented
by the claims presented, llO were lspsed
certificates. II was the practice of the
officers of the company in charge of the
thrift department" ~ irregular inter-
walls TO list the names Of those who were
five weeks or more in default. and 10
change the cards FROM tho live" 70 the
'lapsed' list. At The same time they
would withdraw from the thrift fund"
a sum equal TO the aggregate amount
of the payments on the certificates so
transferred and apply the money to the
general purposes of the company.
On the resumption of payment by the
defaulter-. the cards were taken from
the 'lapsed" file and placed ON the live
file. aud the money vas replaced in the
thrift fund.
Chancellor Curtis. in the opinion hand
cd down yesterday afternoon, held that;
Those holders. whose certificates were
treated by the company as alive. are al.
lowed 20 participate IN the distributions
whether in default OF not. Those Eold.
ers, whose certificates were treated hy
tho company as hpsed. viii not SO par.
tieipate. provided they be in default for
more than three months before the ap.
pointmcnt OF the receiver
~ 10 those certificate holders whu
had borrowed money. the opnion d,.
tlared that interest on such loans should
be- charged to the date Of the receiver.
ship. After all assets Of the company
are turned into cash. and the net
La
mined, there will be added 10 that
amount the total Of such loans. together
with the interest. giving the divisible
fund. This fund will be divided pro rata
among those entitled TO participate. aud
the share of those having such loans
viii be decreased by the amount os their
respective loans and the interest
As to those holders who had paid
in advance beyond May 10, 1872, the
opinion holds that such advance be
repaid in full before any distribution
is made The opinion of the chancel-
lor further declares in regard to the
matter Of allowing interest on the
claims. that inasmuch as every claim
would bear interest II is immaterial
whether interest be added or not
Also that If the receiver has received
money of the company from any other
source than from investments of the
thrift department" that such money
under the contract. belong 70 the
thrift certificate" holders.
Practically all the assets of the
company have been converted into
cash with the exception of a $4,000
first mortgage on negro church IN
this city. No final distribution among
the certificate holders can be possible
until this has been collected. II there
is any delay, however, in tho convert
ing of all the assets into cash, 1t is
probable that attorneys for the claim
ants will make application to the
chancellor for a partial distribution
In either event no payment can pos
siblv be made for several weeks