The Daily Oklahoma State Capital. (Guthrie, Okla.), Vol. 7, No. 45, Ed. 1 Thursday, June 13, 1895 Page: 1 of 4
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w p Campbell
The First Paper Published In Oklahoma.
VOL. 7.
GUTHRIE, OKLAHOMA, THURSDAY, JUNK 13, 1895.
NO 45
WISBY'S REPLY,
Mr Wisby Presents His Version of
the de Steiguer Receivership.
A VOLUMINOUS RESUME
All tin- Detail* Pertaining to the Appoint-
ment of tli«' Kro'lvtr Hnd IIUU n
Appoint iiieut nil Attorney—
Other Matte™ of In-
terest In the F -
IIIOI1M Carte.
Editor Statk Capital: I have con-
cluded to avail myself of your offer of
space to reply to sonic statements
made relative to my connection with
the appointment of a receiver for the
National Hank of Guthrie, in .lune.
18U2. I should have much preferred
to leave this matter to tlie courts,
where it properly belongs, but circum-
stances have ordered otherwise.
All I desire to do at this time is to
state the facts anil circumstances sur-
rounding the litigation and which cul-
minated in the appointment of a re-
ceiver, and leave impartial men to
judge of my actions.
To that end, I will ask any attorney
or other reasonable person to put him-
self in my position, confronted with
the eonditions as they appeared to me,
at the time, and as will appear from ti
short history of the saiue, and thus
surrounded, say if 1 could have better
servetl my clieuts by acting otherwise
than 1 did.
A wise general in our late war said
it was easy enough for a non-eonibat-
ant to sit back and criticise the plan
of battle after the battle was over. So
with a law suit. Few men, looking
back over a hard fought contest in
court, but can find some good weapon
unused or a different line of conduct
that might haye brought better re-
sults, or that the results themselves
could have been attained with much
less labor.
I'erHiinnl I liter en In In the lla<"kgronn<l.
1 tried to understand the situation
as it presented itself at the time, and
have analyzed the situation and the
result of my action since, and subse-
quent events have proven to my mind
that the course pursued by me was
the best course to take to serve my
clients, but the wrong one to best
subserve my own interests.
1 repeat, that the action taken by
me. under all the circumstances, was j
the best thing to do for my clients and
their interests, but the poorest thing
for myself personally. It was their
interests, and not mine, which shouM
come first, and when I saw it in that ;
light 1 acted as I did, regardless of
consequences.
Now to the principal facts and cir-
cumstances that produced the condi-
tions which confronted me at the time
consent was given to the appointment
of Mr. Cunningham as the receiver of
the bank.
May 3d, 1892, the United States Na-
tional bank of New York wired me
that it held notes on de Steiguer for
ten and twenty thousand dollars, se-
cured by three hundred shares of stock
of the Guthrie National bank, an.1 to
see de Steiguer and obtain if possible
additional security, as tliey believed
the security inadequate to protect
them. 1 at once set about to procure
pdditional security, if possible, and
after repeated efforts failed; but in the
meantime, by all the resources at my
command, I sought to ascertain the
condition of the bank, the value of the
assets, and the probable value of the
stock.
Stock Not I'mI<1 For.
The more 1 investigated, the more
fully was the conviction forced upon
me, that the majority of the stock had
never been paid for, and the notes of
friends and relatives took the place of
the cash the bank ought to have re
oeived for the stock when issued. Of
course, I knew that Hank Kxaminer
McKnight had very recently investi-
gated tlie condition of the bank, only
a short time after the sworn statement
of the bank's official had been made
and published.
This examination had been made by
the bank examiner about April 1st,
I89L\ and showed the bank in good
condition, and the stock ut par, except
a shrinkage of probably fifteen thous
and dollars on real estate and the pro
visional city warrants held by the
bank. Or in other words the bank
stock, amounting to $100,000, was
worth eighty-live cents on the dollar,
or non, after paying all debts and
liabilitiesof the bank. Notwithstand-
ing this report of the bank examiner
no recently made, investigation, and
deduction and inference from the few
facts and circumstances discovered
lead me to believe that a majority of
the stock had not been regularly is-
sued and paid fo.% and that the major-
ity of the stock had been hypothecat-
ed for loans and probably the money
plaeed in hank, and borr jwed out on
fictitious paper or notes of relatives.
In other words that the managers of
the bank had been guilty of gross ir-
regularities in the conduct of the bus-
iness.
That the money paid in by bona fide
purchasers of shares of stock had been
largely consumed by over valuation of
real estate anil provisional city war-
rants.
AmUm for m Itmelver.
Helieving there was good grounds
for the appointment of receiver, and
that the assrts should be taken from
the control of the management, as
soon as possibl, on May 11, is.rj, Hied
a bill asking for the appointment of a
receiver to take charge of the assets
and wind up the business for the stock-
holders, and for other proper relief.
Also Hied a motion asking the court to
appoint Mr. .1. \V. McNeal receiver,
and supported the same by allidavits.
Mot ion was duly made,notices given,
and the same set for hearing, May 1,
1892. The same was continued several
times—two or more supplemental
complaints were tiled, and new par-
ties were added as plaintiffs.
At one time, and for a week, the
plaintiffs asking for the appointment
represented more tliau a majority of
the stock. Demurrers and answers
were liled, and for tlve weeks or more
the contest was waged. De Steiguer
fort..:, controlled the stockholders
meeting of .lune 1, and the stock was
assessed fifteen per cent, and notice
published that unless tin* assessment
was paid in ten days all delinquent
stock would be sold, and the bank
would resume business. Stockholders
were all notified to pay up. June nth
liled supplemental complaint, and
asked for an injunction to restrain the
colic lion of this assessment, and any
sale of stock for non-payment of same.
On showing made, restraining order
was granted I promptly notified the
stockholders of the same and to not
pay their assessments, if they did they
would probably lose the same.
The I uitcd States National Hank of
New York was called upon to pay $4,-
500 more, bv this assessment, and it
thought it ought to scud the money, to
be on the safe side. I insisted that
not a dollar should be paid, if it was it
would go the way of the $:t0,000 al-
ready gone. Finally, my advice was
tak<-n and the assessments was not
paid nor the stock sold.
After the restraining order was
granted and served, notice of intended
sale of stock was continued in paper,
and affidavits were tiled and an at
tempt was made to arrest de Steiguer
for contempt in proceeding in disobe-
dience to the order of the court.
Apologies and promise of absolute
obedience of the order of the court on
the part of defendants excused them
from punishment.
Some few of the stockholders sent
in their assessments, which amounts
were all returned by Mr. Cunningham
after lie was appointed receiver.
De Steiguer and Turner liled affida-
vits that the bank had discharged all
its liabilities, and one or both of them
referred to the then recent report of
the bank examiner to rIiow the condi-
tion of the bank, and to show that our
allegations of robbery and theft were
unfounded.
One day 1 was sure we had won the
light, and next day victory had appar-
ently vanished. So it continued from
day to day and week to week.
Mr N 'iiI for Receiver.
A small portion of the time, for a
week probably, 1 represented a major-
ity of all the stock in favor of Mr. Me-
Neal's appointment. In fact, the com-
plaints and supplemental complaints
show that at one time «' 1() shares af
stock, out of a total of l.ooo shares,
were favoring and urging the appoint-
ment of McNeal.
Judge Green repeatedly said from
the bench that he was inclined to ap-
point whoever a majority of the stock-
holders favored, but the court could
appoint whoever it pleased. At three
or more different times he informed
mc he \yould appoint McNeal, and to
have him in court, and at the opening
of court he would announce tiis ap
pointment. On one occasion he
stopped at McNeal's bank and told
him to b.' in the court room at the
opening <>f court, as he intended to
appoint him that morning as soon as
citurt opened. < ourt opened, McNeal
was there, and he was not appointed.
De Steiguer knew all the stockhold-
ers, I knew only one or two Letters
and telegrams informed Judge tlreen
that $1:1,000 of the stock joined in
plaintiff's' eomplaints was there with
out authority, and that I had no right
to represent them and they did not
want their shares used against tie
Steiguer. Those 130 shares had been
left with Mr. Gammon and he had
authorized me to use them.
I)e Stelgner'ft Influence.
De Steiguer had more influence with
the holders of those shares than I did,
and hence he took them away from us
and used them for himself. He had
been the trusted agent of the share-
holders. or a large majority of them,
for several years, had paid them divi-
dends. and I was a stranger to them,
but was making fair headway, as the
withdrawal of the 130 shares from the
plaint: 11"s side of the case would indi-
cate. Many of them held only a few
shares, and tie Steiguer represented to
them that he could make more money
for them by winding up the business
than could a stranger, and his repre-
sentations were bearing fruit. Atthis
juncture de Steiguer had a majority of
the stock and was insisting on his own
appointment, lie made no motion to
that effect in open Gourt, but the judge
informed me that he was quietly urg-
ing his own appointment, and claim-
ing, truthfully too, as 1 believed, to
have a majority of the stock in his fa-
vor.
However, 1 was insisting that I rep-
resented a majorfty of the bona lide
stock, and numerous affidavits were
filed and oral evidence taken in sup-
port of the contention of the respec-
tive parties.
\VI*l>y OppoHfM Cunningham.
June < de Steiguer filed his separate
answer, and consented that a receiver
be appointed, and bitterly assailed the
statements contained in the several
bills of plaintiffs. This was a new
move, and of course, at first I ditl not
see through it to my satisfaction.
Shortly afterwards, I learned that Mr.
Cunningham had resigned, as attorney
for the bank and ceased to be attorney
for de Steiguer June 4th. two days be-
fore de Steiguer's answer was filed in
which he consented that a receiver
should be appointed. 1 believed then
the chances for the appointment of
McNeal were slim, but 1 never waver-
ed in his support. Shortly after this
time. Judge tlreen informed me that
Mr. Cunningham wanted the appoint-
ment. I told him that would never do,
that Mr. Cunningham was attorney
for the bank and de Steiguer. The
judge replied: "No, he is not. He
ceasi#l to be attorney for either the
bank or do Steiguer June 4 th, so I
am informed- I understand on
that day the board of di-
rectors met, Mr. Cuuningham ten-
dered his resignation as attorney for
the batik and the same was accepted,
and Judge Hergcr has been selected
by the bank as its attorney and also
de Steiguer as his attordey." I pro-
tested against Mr. Cunningham's ap-
pointment.
The bill was brought on the territo-
rial side of the docket, and the Judge
expressed doubts as to the court's ju-
risdiction I insisted, that tin the
showing made by defendants, that all
liabilitiesof the bank had been dis-
charged, it was simply a settlement
between partners and the territorial
side of the court aloue had jurisdic-
tion.
The Judge thought otherwise and
knowing his abilities as a lawyer,
yielded to his suggestion and began
the preparation of a bill to file on the
1
GENERAL MAXIMO GOMEZ,
3omniander-in-Chief of the Cuban Forces.
federal side of the court.
AiixIoiih to Ouat de Ntelgiier.
Was excedingly anxious to get what
assets there were of the bank from un-
der ile Steiguer's control, and after
thinking the matter over concluded
that I would not dismiss the case on
the territorial side of the docket, but
go ahead under the suggestion of the
judge, and if we could once get posses-
sion, firmly believed we could estab-
lish the allegations of our complaints.
It would be well to bear in mind that
we had not proven our allegations,but
they were sufficient for all purposes, if
true.
This was not in open court that
these last suggestions were made, al
though I hail argued to the court on
several occasions that the territorial
side of the court had jurisdiction, and
presented numerous authorities in sup-
port of plaintiff's contention.
He said to bring in the bill on the
federal side of the court, allege the
same facts set out in the original and
supplemental bills, and verify it prop-
erly, and he would make the appoint
uicut immediately on the coming in of
the bill, and there would not be an-
other moment's delay for anything.
This was about June and on the
morning of June 11 I filed the bill on
the federal side of the court.
I had notified Mr. McNeal of the
suggestions of the judge, and what I
was doing, and when the bill was
ready to file to be in court, as the
judge, I was assured, would make the
appointment. He said he would be
there, and he was
Court opened, I tiled the bill and
read it, and insisted that the matter
had been delayed long enough, and
the appointment ought to be made
forthwith. Defendants promptly filed
a demurrer. Under the circumstances
I was no little surprised to find the
demurrer all ready and waiting to be
filed. I supposed no one knew of this
intended action except Mr. McNeal,
Judge tlreen and myself.
I insisted on immediate action, and
the court refused to make the appoint-
ment because a demurrer was filetl.
and took the demurrer under advise-
ment. So ended matters on the lltli.
OppoHitlou to Mr. MrNeal.
I saw the judge in his chambers and
had frequent talks with him. Once
before this date he had complained of
the bitter opposition to Mr. McNeal's
appointment. 1 suggested that it only
came from the de Steiguer crowd.
No, he said, others had complained. I
replied that none but shareholders or
their representatives had a right to
complain.
I surmised that Turner, of the Capi-
tol National bank, might be opposing
the appointment. I saw Mr. Turner.
He stated positively' that he had not
said a word. 1 informed him of the
peculiar relation I was in as between
the two banks, and my feelings were
such in the matter that if I should
ever find out that he had interfered in
auy way to prevent McNeal's appoint-
ment, I would not speak to liiin in
friendship as long as 1 lived. He as-
sured me that he had done nothing in
the matter and should do nothing
against Mr. McNeal in his effort to be
appointed receiver.
This last action of the court thor-
oughly satisfied me that Mr. McNeal
would not be appointed.
The recent report of the bank exam-
iner, who examined the assets of the
bank, was urged upon the attention
of the court to disprove the allega-
tions of our several complaints. It
was insisted that he was impartial,
had made a thorough examination un
dcr his oath of office, and reported
everything in good shape, except a
slight impairment of the capital
stock because of depreciation or over-
valuation of the real estate of the
bank and the city warrants held by
the bank.
The cashier of the bank, Mr. Klias
Turner, made affidavit, and the same
was tiled in the case, that the assets
remained just as they were at, the
time of the examination by the bank
examiner, aud de Steiguer testified to
the same effect. In addition to this,
tie Steiguer showed to the court that
he controlled more than half the stock
of the bank. Opposed to this were
the statements of the complainants
in the case, verified by I). C. Young.
(tank Ktamlner vn. Hunk otlli-litl*.
If the bank examiner's report of the
condition of the bank were true, we
were making many very serious
charges against de Steiguer's manage
ment of the bank, and also against the
management generally, which were
not true.
The only way to prove the truth of
our charges or the falsity of defend-
ant's statements as to the condition of
the assets of the bank, was to exam-
ine the books and assets of the bank.
The trouble appeared to be to get the
court to believe our side of the case,
and to that end I repeatedly chal-
lenged the production of the assets
and securities of the bank, but failed
to get an opportunity to inspect tlie
same,
Of course this would have demon
strated who was correct. The matter
j hung along for a few days, and I had
been insting on the arrest of de Stei-
guer, but this move the U. S National
j bank declined t. sanction for fear a
"suit for damage," iu the wveut that
we failed to make the charges stick.
I advised his arrest,
About the 20th of May, the preced-
ing month, at the request of the New
York bank, I advised them that it was
not safe to pay over twenty-five cents
on the dollar for the stock of de Stei-
guer's bank. Mr. McNeal advised
them about the same time, as I after-
wards learned, that he thought it was
safe to pay seventy-five cents for the
stock.
The New York bank sold the 300
shares of stock of National Hank of
Outline May 4, 189?, and bid it iu at
six-ty-six cents on the dollar, and
credited de Steiguers notes with the
amount, leaving tie Steiguer owing
the bank a little over ten thousand
dollars.
AdvUft the I'mneciitlnff of de St*1 gner.
During tlie contest an offe r of ten
thousand dollars was made the New
York bank for the stock it held and de
Steiguer's notes. I wired iu the offer
and my recollection is that I advised
against the acceptance of the same. I
felt sure then, and subsequent events
confirmed that belief, that if the bank
had been as loyal to me as I was to it,
I could have secured for them at least
815,000 dollars for the stock and de
Steiguer's notes, and I believed at the
time of the apoointincnt of a receiver,
that by proper management I would
recover from de 8tciga„., y.o,oon dol-
lars, in satisfaction of that bank's
claim. The New York bank had stated
to me that de Steiguer had represented
the stock to be worth a dollar twenty,
or twenty per cent above par. I ad-
vised that stock could not possibly be
worth over f>0 cents and my opinion
was that twenty-five cents would be a
fair price for it, and as de Steiguer
had made the representations and the
deal there, to bring a criminal prose-
cution for obtaing money by false pre-
tenses. The bank declined to do so,or
anyway nothing of the kind was done.
Karly in the proceedings had sug-
gested to the United States National
Hank to apply to the coinptroler for
the appointment of a receiver was in-
formed afterwards that they had ap-
plied, ai d the comptrolcr held that he
had no jurisdiction to make the ap-
pointment. Suppose the comptroler
relied upon the late report of the bank
examiner? Frequent talks with the
judge and all his rulings and actions
in the case forced me to the conclusion
that under no circumstances would he
appoint Mr. McNeal.
No Chunee for Mr. MrNeuI'M Appoint ment.
The last effort made in court was on
the 14th of June, and was more fully
convinced than ever that it was wholly
useless to further urge McNeal's pa-
pointment. The judge had given me
to understand that there was too much
opposition to him, and that he woultl
not be appointed.
1 thoroughly made up my mind that
he was going to appoint Mr.Cunning-
ham, from remarks that lie had made
and the course of proceedings he had
taken during the last week.
Notwithstanding the showing made
by the defendants am to the assets re-
maining iu statu quo, since the bank
examiner's report referred to, I was
constantly in receipt of reports, how
reliable I could not tell, that tie Stei-
guer was converting or collecting the
good securities of the bank as fast as
he would, and I believed he would
make way with the cash as fast as re-
ceived.
1 believe further that the longer de
Steiguer remained in possession and
control of the assctts of the bank the
less there would be for the stockhold-
ers they did get possession. In other
words: that tlie good assets were very
small and under de Steiguer's skillful
management were rapidly and daily
growing beautifully less.
On the evening of the 12th, as I re-
turned from the court room. I met Mr.
Cunningham and asked him about the
rumor that he was to be appointed re
ceiver. He asked me how I obtained
the information. I replied that Judge
Green had informed me that he was
an applicant for the place. He replied
that Judge Oreen had tendered him
the place .several days before and had
first suggested the idea of his taking
the appointment, on receiving the in-
telligence of his resignation as at
torney for the bartk and defendants.
He said the judge offered him the
place and he had made up his mind to
accept it
He further said: "Why not consent
to my appointment for I will be ap-
pointed anyway? I will give a good
bond and an honest administration of
the trust. If you believe what you
say of de Steiguer the sooner you get
the assets out of de Steiguer's hands
and control the more there will be for
your clients."
I replied that I recognized that fact,
and that it was impossible for the re-
ceiver to defraud the stockholders, un-
less the court permitted it to be done,
and personally I did not believe he or
any other reputable member of the bar
could afford to actotherwise than hou
orable iu the administration of the
trust.
WMiy'n Object Ion* to fiiniilngha in.
1 further remarked that one serious
objection to liim, he might want to
protect de Steiguer. He replied that
lie knew nothing of the condition of
the bank, further than the statements
of dc Steiguer anil Turner showed, and
if their statements were true, every
thing had been properly managed,
and besides, since his resignation as
attorney, he had no interest iu de
Steiguer or any other person interest-
ed iu the bank
1 replied that 1 would take time for
consideration; that I believed the con-
cern was all I had alleged in the sev-
eral complaints and was as hollow as
an empty egg shell; and if a uiau was
disposed to be dishonest he could not
afford to be for what few good assets
would be found inside the bank when
we once got inside, and that I would
thiuk about it.
1 saw Mr. McNeal, gave him my
views of the situation, and said that I
believed Cunningham would be ap-
pointed, and there was one thing cer-
tain, he (McNeal) could not be ap-
pointed. He said all he cared about
the place for was to get the good bills
falling due to tie Steiguer's bank for
rediscount.
I replied that I had supported his
appointment for about six weeks and
there was no chance for success, and
he could not possibly regret the un-
fortunate condition of affairs more
than 1 did: and if Cunningham, or
sonieone else who would give a good
bond—anil whoever was appointed
would be required to tlo that -what
few good assets or securities were left
would be saved to the stockholders,
and that I believed as fast as de Stei-
guer could turn theiu into cash he was
doing so, and I believed was making
away with all cash so received, and as
a matter of business, one man who
would give a good bond and honestly
administer the trust, was as good as
auy other, for my clients, lie con-
ceded that fact, and asked why not
have Mr. Sam Overstreet appointed. I
told him Mr Overstreet would suit me
first-class, and 1 would see. 1 made
the proposition to the other side and
they would not agree to it.
I returned to Mr. McNeal and so in
formed him; and we had some further
talk. I told him that in my opinion
the total assets would not net the
shareholders over twenty-five or thirty
cents on the dollar, and that the claim
of the II. S. National bank of New
York was as much or more than the
total assets of the bank, aud that a
judguit lit against tie Steiguer would
be of no avail, and the only way the
II. S. hank would ever get their
money, if my surmises aud belief as to
the insolvency of the concern should
prove true, was to get at the facts as
soon as possible and go after tie Stei-
guer with a criminal prosecution.
That when we could see the books aud
securities of the bank anil my belief
should be verified, tie Steiguer could
be prosecuted for making a false
statement of the bank's condition to
the comptroler in March, which was
the last statement made by the bank
as I now remember, and also if our
contention were true, he had made
false entries in his books, and could
be prosecuted for those things.
Why lie Accepted the At lorneynhlp.
I further told him that in my judg-
ment Cunningham would be appoint-
ed anyway, and by my consenting I
believed I could be the attorney for
the receiver and could protect my
clients so long as I acted as attorney
for the receiver, and could at once see
the condition of the bank, and move
against de Steiguer and others who
had looted the bank, without delay,
should the conditions, when ascer-
tained. warrant such procceedings,
and that I believed the best interests
of my clients, under the circumstances,
demanded that I consent. Well, after
this interview ended. I saw Judge
tlreen and consulted him about the
matter, and he advised me that it was
the best thing that could be done
under all the circumstances, as he
never could appoint Mr. McNeal be
cause of the bitter opposition to his
appointment.
He said he hoped ami believed that
from the showing made I would find
things in better shape than I believed
them to be when we got a look at the
books I told him 1 would like to think
so, but I could not.
He said: Mr. Cunningham is one of
our leading attorneys and is reputable
and reliable, and lie would no doubt
fairly administer the trust, and any
way, the matter would be under his
supervision and he would Bee that my
clients were protected in all their
rights, and the consenting to Mr. Cun-
ningham's appointment was the very
best solution of the trouble.
1 saw Mr. Cunningham and said I
have about made up my inind to yield
to the inevitable. I reali/.e that per-
sonally, it is the best for me to con-
tinue the tight, especially if the bank
proves to be aB empty as I have alleged
it to be in my complaints, and as 1 be
lieve it to be. For 1 do not think the
entire assets of the bank would pay
iu full the $30,(MM) claimed by the
I'nited States National Hank, to say
nothing of other clients owning more
than 918,000 of stock which I repre-
sent.
(At this time 1 represented |s| share,
and the tie Steiguer crowd controlled
or claimed to control and was controll-
ing the balance, 51(5 shares.)
Wlftliy Appointed Attorney.
I believe it best for my clients to get
the assets from de Steiguer as soon hs
possible, and if you will promise me
on the square that you will have noth-
ing more to do with tie Steiguer nor
any of his crowd, and allow me free
access to the books, and if I am not
aide to understand them myself allow
me to put an expert book keeper at
work on them, I will consent to the
appointment. He replied that he
would cheerfully comply with the re-
quest, and that nis business relations
with de Steiguer had been served.
'•Now," he says, "to showgyou, that 1
mean to be fair and just to every in-
terest, and in ortler that your clients
may be fully protected and satisfied,
by consent of the court, 1 will appoint
you attorney for receiver."
"Well," I replied, "that fact, and a
good bond from you ought to be assur-
ance to clients that they will get their
fair share of the assets.
"Besides I must have free access to
all the books and assets of the bank,
and if I find things wrong or crooked,
shall go after de Steiguer to my ut-
most."
Highest of all in l eavening Power.— I.alest 1 . S. Gov't Report
Powder
assess®
Absolutely pure
"Very well," he said, "I shall afford
all facilities iu my power to ferret out
any and all crookedness that may ap-
pear or you believe to exist."
1 said, "1 reali/.e auothcr thing. My
personal interest admonishes me not
to eouseut to this appointment, but
the interest of my clients are first with
me, aud their interest, in view of all
the circumstances, require this course
on iny part "
So the thing was done. Mr. Cun-
ningham was appointed. 1 notified
the I nited States National bank by
wire, and probably by letter, that oil
the next day after tlie appointment,
and that bank answered next day by
letter, of which the following is a
copy:
"Nfw Yoiik, June 1 r., IS1.).'.—Joseph
Wisby, Ksq . Guthrie, O T. - Dear Sir:
Iu reply to your telegram of the Hth
we have telegraphed as follows 'Do
not arrest. We are unwilling to take
the responsibility of having him ar-
rested.' We do not feel there is enough
to be gained by having de Steiguer ar
rested, aud we are unwilling to take
the responsibility of doing so aud run
the risk of a suit for damages.
How did it come about that Cun
ninghain was appointed instead of Mc-
Neal'.'
" \\ hat sort of a man Is Cunningham?
Kindly let us have your opinion re-
garding him.
• Yours very truly,
"II. C. Hopkins, Cashier."
It will be observed that the New
York bank, when informed of Mr.
Cunningham's appointment, made no
objection
I did not receive this letter until my
turn from Chicago, where we were
in the act of starting to attend the na
tmnal democratic convention.
N«w Vork I tit nk ItlncliiirKi'H Mr. Wlnliy.
On my return from the convention I
found the above letter, and also an
er written a few days later, direct
ing uie to turn over to Mr McNeal all
affairs of the bank iu my charge; that
they were dissatisfied with my action
iu the appointment of receiver.
To say that I was never more sur
prised iu my life is drawing it mildly.
To be discharged by a client without
a hearing was a startling piece of in
formation I could see ut mice that
someone had made it his business to
interfere between me and my clients.
So I explained matters to the baud's
officers, and felt sure when they knew
whole facts they would approve
my conduct instead of censuring me
I sought to obtain tne name of their
informant. I could not do that.
They were thoroughly poisoned, or
professed to be, against me, and sent
their attorney here with my letters of
explanation of the causes and reasons
for consenting to the appointment.
They said I had misrepresented the
judge of the court, aud to further in-
jure me, showed my letters to Judge
Green, and tried to injure my business
and standing with the court. Of
course I felt that 11iT* court ought to
have appointed McNeal, long before
any appointment was made, and so
stated in my letters.
Not satisfied with that, they follow-
ed up with motions to remove the re-
ceiver, because he had employed me
as attorney.
Every lawyer knows that where
fraudulent conduct or conveyances are
alleged in a bill as grounds for the ap
pointment of a receiver, and one is
appointed, the attorney for the com- i
plainants is generally selected as at
torney for the receiver. In the event
of Mr. McNeal's appointment, it was
understood between us that I was to
be his attorney.
Now, what were the results of my
conduct? Mr. Cunningham was ap-
pointed receiver lie gave a good
bond and took charge of the assets.
Ciimi In glut in'i« 11«ni d hiiien.
The chief justice of the supreme
court, Hon. Frank Dale, signed Mr.
Cunningham's bond: so also did As
sistaut. United States District Attor-
ney John F. Stone, aud other good
and res|K>nsiblc citizens. TI esc men
had known Mr. Cunningham longer
than I had, and surely they believed
him honest or they would not have
put their property iu forfeit for his
good conduct in the administration of
this trust.
While he was attorney for de Stei
guer 1 feel satisfied he did his duty.
When he became receiver for the bank
he took charge of the assets and has
made a full and complete report of his
doings to the court If he has taken
credit for things he ought not to have
taken credit for, let the court charge
them back to him; and if he docs not
pay it, the shareholders have ample
security in good and sufficient bond.
He certainly made a very candid re-
port to the court of all his acts.
One good result was to take the
property from under the control of de
Steiguer and place it where the share-
holders would get the benefit. As 1
had expected and believed, when au I
examination aud inspection was had. I
the "empty egg shell" was found,
lie Ntelj in«r a Smooth KliMrk.
De Steiguer had recently fooled the
discount board of the I! S. National
bank ami had palmed off on it stock
of a bank of a hundred thousand dol-
lars capital, located In a new country,
where a very small per cent of people
had title to real estate and little, if
any, foundation for credit existed, and
made them believe it was worth •
twenty per cent above par
About a month before 1 brought the |
suit mentioned, he had fooled the
trusted agent ami officers of the secre-
tary of the treasury aud comptroler of
the currency and made them believe
the bank was solvent and all right, ex-
cept a small impairment of its capital
stock
Iu possession of the books and com-
plete control of the bank and its I
management, he was able to make
the judge of the court believe every
thing was in good shape.
McNeal believed it iu (a fair condi j
tion about the time 1 brought the suit |
iu question, because lie wired the
I nited States National bank that he
believed it *u fe to pay seventy-five
cents on the dollar for the stock.
1 here \\ as only in cash, so I was
informed by the receiver, when he
took possession of the assets of the
bank. The court, the bankers ami
| the bank examiner were all deceived
by de Steiguer as to the bank'p condi-
tion. He also borrowed large sums of
money from the Bank of Commerce
| ami tlie Metropolitan National bunk
I at Kansas City and put up stock of
National Hank of Outhrie as collat
eral.
These two banks held two hundred
shares of the stock of :le Steiguer s
bank during the whole of the litiga
tion, aud tie Steiguer was permitted to
use it against us I think he must
have fooled those fellows two.
Taking any view of the matter that
suggests itself to my mind, 1 could not
have acted differently, so long as I put
my clieuts' interest above my own.
Under all the circumstances, I be-
lieved then 1 acted for the best inter-
est of my clients, and subsequent
••vents have fortified and confirmed
that belief so formed under the condi-
tions as then presented.
There are mmv other things which
have come to mind since beginning
the preparation of this article, that
were circumstances connected with
the affair that probably 1 might to
mention, but as it is now almost 3
o'clock, and you have the larger part
of this article iu type, I shall close.
I want to add one further remark,
that the first compensation received
by me from the receiver was in Decem-
ber, 181)'J, nearly seven months after
his appointment.
Very respectfully.
Joseph Wisin.
Found Utility.
policeman John Matthews was found
guilty this evening of assaulting Lou
Levels at the park ou June litli aud
fiud $lo and costs.
perry Enterprise: C. W. Hryan. who
lives in South Perry, was a caller this
morning, and talking of the supposed
discovery of gold in the Arapahoe
country, he said he was familiar with
the country, as he used to drive cattle
over the range, and he knows there is
gold in the regions mentioned. He
says that the Indians have always
guarded the land closely and used to
kill the prospectors if they ventured
into their lands. He K anxiously
watching for developments and if
there proves to be any truth in the
statement that white settlers are
rushing in; he will join them at, once,
lie is an old and experienced miner.
The people of Comanche, I. T., will
give a grand free barbecue and picnic
on the .'1st of June.
A NOVEL IMJSTIIY
A Firm Which Provides Es'.iys and
Orations for Students.
K (il-ioiici.v si<;\
The Withdrawal of Senator tinnl<
I'nhlle |,|fu I llo lv to Coinpl
Mutter* \n oill<uiI Stall
ini'nt ou Orchard .\Iiuim-.
Washington. June n
-'1
'lie
post
ti of
office department is
in a g
•eat
de
trouble over receiving man
tap
aints
from principals of ci
jllege
an
i ft
male
seminaries throughout the
ntrv.
They claim that the
•i! is a
nn\
el i
idii •
try lately established \
•hit
inn t
prove very profit abb
to it
promoters,
and which is very d.
t rime
ita
rrow-
ing and studying
oung
Ai
cans.
There is a firm said
to be
h.
ade
1 by
the G. A It. man
I'riv
it,-
Da
l/.eli.
which sends clrcu
1 tll'S
lents
of both sexes, stating
that
they
will furnish all 1
iutls
of
lit
ra ry
productions to be
used
i
their
studies, al 1 the wor
k bei
orb
rinal,
and the customer <u
der'.li
to
ha\
e ex-
elusive use of the
jam.*.
A
irii.
e lit
accompanies the e
re u la
rinal
essays furnished bv
the ti
rin,
debates.
etc., range iu price
its
to To
cents per 100 words,
.ceorJ
ing
to
tyle,
length an 1 nature
of
the
sul
ject.
High school oration
an 1
v 1 ran go
from « l to <<; colli ,
ora
lions
and debates $:i to #l."i, and lectures
from S10 up. Some of the circulars
have fallen into the hands of the prin-
ciples of colleges, who have sent them
to the department, asking if such mat-
ter cannot be excluded from the mails.
After iuvestlgating the same the de-
partment has decided that it has no
power to shut the circulars of the firm
out of the mails.
Tilt* (.eorgla Senatoi'4hlp.
Washington, June 1 t. -The retire-
ment of Senator Gordon from public
life, which he has announced will take
place at the close of his present term,
lias attracted considerable attention
here to the senatorial situation in
Georgia. According to present indica-
tions, it is to be a race between ex-
Speaker Crisp aud Secretary Hoke
Smith. The secretary Is very confi-
dent of the strength of the adminis-
tration in Georgia and of the at>ilit \ of
the administration forces to carry the
state for "sound money " Speaker
Crisp has lately made a positive and
unequivocal announcement of his posi-
tion, which was lint misunderstood,com*
ing out squarely for the independent
free aud unlimited coinage of silver at.
a ratio of Hi to 1. Representative Tate,
of Georgia, says that the withdrawal
of Senator Gordon Is going to compli-
cate matters conslderubl. Patrick
Walsh will undoubtedly come forward
afrain for further senatorial honors,
but the Indications are. Mr. Tate says,
that the real fight will be between
Sneaker V'ri&p and Secretary Smith.
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Greer, Frank H. The Daily Oklahoma State Capital. (Guthrie, Okla.), Vol. 7, No. 45, Ed. 1 Thursday, June 13, 1895, newspaper, June 13, 1895; Guthrie, Oklahoma. (https://gateway.okhistory.org/ark:/67531/metadc103658/m1/1/: accessed March 18, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.