Year: 1873

Renuere0 TINS week.


In the United States District Court, at Trenton
yesterday, the Hoboken Savings Bank was
again brought up after having been adjourned
from day to day throughout the week. Three
weeks ago petition filed by Mr.. Albeit,
counsel for few OF the depositors to have the in
stItution adjudged bankrupt, but a delay of two
weeks was then granted. The Injunction issued
by the Court at that time, restraining the trustees
from using any of the funds, was modified since by
allowing them to invest safely the interest accru-
ing on bonds and mortgages


Yesterday morning Mr.. Keasby moved to dis
miss the petition Tor the following reasons Il.
That this is not corporation such as comes within
the scope OF the bankrupt law. 2. That the petit
tion does not disclose any act OF bankruptcy. He
then narrated the circumstances in which the bank
stood from the time the first Irregularities were dis
covered April last, and reviewed the
points urged by the petitioner in support OF his
application. lie said that the petitioner was
a depositor for less than s4O0, and he was sure
that not one per cent OF all the depostors favored
those proceedings. Counsel made several quota
tons from the act bearing on such institutions in
support OF his arguments. The Chancellor OF the
state had authority to examine the affairs OF the
bank and this Court had not. On application OF
three depositors the Chancellor may order
OF the investments and prudence OF
the management. such an institution as
this Is was not n mOneyed corporation under the
act. It's chief aud primary object was not 10 trans
act business for gam to the trustees. All the
profits belonged to the depostors The managers
were forbidden to receive dollar for Their
vices. 1t was simply a dduciary corpora
ton If 1t lost by fire, robbery or Irand.
1t was a common misfortune. Tne provisions
of the bankrupt law do not reach savings
banks or corporations not deriving profit to them
selves The trustees Will pay all their indebted
ness II they are allowed to proceed with Their
ties and the deficiency made good by suDscr p-
tions. They ask that this Court shall declare them
to tie thrown into bankruptcy, since they
have never committed any act ol bank
ruptcy. An agre cement had been signed between
W. W: Shipper and others on the part OF the bank
with FISK Hatch whereby the latter would pay
the sum OF $73,O0o one.halI in iour months and the
other hall IN SIX months to the trustees and that
the Central Pacific Railroad Company guaranteed
the payment of the balance-s2l, ,ooo-ln substan-
tia securities. Therefore, not dollar can be lost
OF the $4,000 in the hands OF Fisk Hatch


Mr.. Albeit then proceeded TO argue In support OF
the petition. He said that the sg4 900 in the hands
OF FISK Hatch had been invested in violation or
LAWN violation of the charter OF the bank. He
would state that he did not represent creditor OF
$500. The proper thing Tor the Court to do Is to
hold the matter within its control. Why don't the
trustees act in practical manner. by having
bank had made one RUE OF law Tor one set OF de-
positors and another Tor another set. The law
should work uniformly in all cases.


THE OBJECT OF THE TRUSTEES


Is TO get out Of the bankrupt court aud to get into
the Court OF Chancery. Then what can the Chan
celor do order an examination TO be made. SO
can this Court. He may 60 on and direct other
proceedings which may be for the interest OF the
depositors. He simply starts other proceedings.
All this can be done by the bankrupt
court. This bank is no charitable nor an
eleemosynary institution. 1t is regular
moneycd, business and commercial corporation,
and, such, Is within the provisions set
forth by the Bankrupt act. The bank carried on
business for the sole purpose OF making profit. The
trustees did as they pleased with their profits.
They regulated the rate OF interest to suit them
selves. The United States government taxes the
deposits Of saving banks and treats them as prl-
vate corporations carrying on private business for
their private advantage. In tins case the
money Is given Tor profit on what was
put in. The whole thing resolved itself into
ths-Shall this corporation be taken out OF
this court and thrown into Chancery2 lie hoped
His Honor would control the whole proceedings, so
that the deposltors might not suffer. He did not
ask the Court to put IL into bankruptcy immedi-
atelv; ne wanted the Court to have control. He
preferred this Court to the Court of Chancery. IL
Is less expensive and more liable to detect fraud
and protect the creditors Ii was quicker and
more expeditions to reach the substantial ends OF
justice.


At the conclusion OF Mr.. Abbctt's argument the
Court then said that there was an important
principle involved In the case, ample time should
be taken TO examine the papers; therefore de-
csion would not be rendered till next Tuesday.
Many OF the most energetic advocates In bank
ruptcy in Hoboken have now become Its strenuous
opponents. few crippled and voracious poiti-
clans wished to profit by the bankruptcy proceed
ings; but they are likely to he disappointed. One
good result OF bankruptcy, however, would be to
detect culpable negligence II any existed, and thus
make the property 0i the managers liable Tor the
deficit