Year: 1878

our recent remarks upon INC huste WIN
which receiver was appointed for the Six
penny Savings Bank, and the inevitable loss
and delay to depOsitOrs which recelvershlp
must entail, have drawn out anxious inquiries.
The questions asked are, whether 1t Is now
too late to check the operations of receiver (;
and, if there is yet time, what plan can be
substituted that will promise better results
Viewed in the light of simple justice, 1t must
be conceded that since the entire assets OF the
bank belong to its depositOrs, they
should have the control. They placed their
money in the bank for safekeeping !;
but in so doing they did not lose their right
of ownership The custodians OF the fund
used it, to say the least, inJudiciously,
and the State Department was quite
right in checking their career of mis-
management Next. on complaint by the
Attorney General, q court issues an order by
which this property is transferred to the control
of one man, resident of a distant county.
The consent of the thirty thousand people to
whom the fund belongs, is not even solicited
A few of them, quickly assembled, are prompt
in expressing their objections. The Judge
replies to them with assurances of the excel
lent character of the gentleman whom
he has appointed receiver. But the
thirty thousand, so far as heard from,
do not wish their property disposed
of in any such way, and as yet they have
done nothing that impairs their right to
manage what belongs TO them. If they want
to regain the control of it they must show
their capacity and intent to manage 1t jul
diciously. When they can show to the salts
faction of the Bank Department that they are
competent to do this business safely for all
concerned, and with more economy than re-
ceiver, some way will be found TO put them
in possession.


1t is obvious that no new corporation can
be formed to take the place of the old. nor is
that needful. At their next meeting the de-
positors should realize that they require all the
help they can get from the present trustees, and
perhaps some of the officers of the bank. Pos
sibly, by means of committees and interviews
an arran cement can be brought about by
which a majority of the trustees will resign
and their places can be filled by suitable men
from the ranks of the depositors. An
able man should be selected as the
president, and he should be allowed
n reasonable salary. 1t will be a matter of
lasting pride and honor to him, if he shall
succeed in winding up the affairs of the bank
TO good advantage. An estimate should
be framed of what the bank can GER
tainly pay-a very low estimate-perhaps rs
cents on the dollar. Circulars should then be
issued to every depositor, and an agreement
obtained from majority to accept that per-
centage in lieu of their claims. This accom-
plished the Bank Department could not well
refuse to free the bank from the claws OF a
receiver, for it would be solvent.


Thus reorganized, it would be the business
of the bank to wind up its affairs as promptly
and economically as possible. There should
be dividend at least as often as once
in sixty days of whatever assets had
been converted into cash in the interval, and
this process should be continued till the last
dollars worth of property was disposed of
At each dividend 1t would be well tC
present n brief summary of the assets
statement of dozen lines-showing
how much was still left, and in what kind OF
securities The depOsitors would thus get al
that there is now left of their property, at 9
minimum of expense. But it would, o
course, be wise, and probably necessary, tC
take advice from the Bank Department il
every step of such process Ii would be bet
ter still if it could be provided for by retro
active law, legalizing such measures in general
on the part of depositors, when savings
bank becomes insolvent.