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BACK BY RECEIVERSHIP Shareholders Have To Pay Attorneys' Fees: Douglass Terms It Unjust BANK WILL TAKE CHARGE Mutual Temporary Receivership Wound Up; Confidence Expressed There Will Be No Losses, But Douglass Thinks Directors Should Bear Expense cost chareholders of the Mutual Building and Loan Association excess $2,000 for temporary ceivership, attorney's fees, court costs and auditing the failure of the August and the of the Commercial National Bank permanent receiver by Judge yesterday. Attorneys Bailey and Simms, Temporary Paul Smith effecting the settlement with the Raleigh Real Estate Trust Company, awarded $1,500 them and the $500. Other to paid out of the which have computed will be court of the hearings the and of Auditor Chas. has not yet report of the the association on the day closed its doors. The National Bank, will be allowed maximum $5,000 for the affairs the This in clude hire and other adminisexpenses, will in clude attorneys' fees litigation Approval the obtained for additional The required bond $50,000 and make monthly reports to the Douglass Makes Protest. don't regard the allowances but think the wrong people paying said Harris signed Receiver Smith's report, thus ratifying tions Attorneys Bailey Simms allowed $1,500 and Mr. Smith "The directors of the association responsible for the failure, and think they should straightening out the tangle," Douglass added, however, not know anything done but intimated that d.d recover in full in the end that might suits against the directors for alleged negligence. Now Due. Under arrangemen. with the Commercial Bank, Vice B. and Trust Officer Gosney will be charge of Mutual af fairs. the receiver ceived payments due mortgage notes, payment as have fallen due since the doors closed payable at the Commercial Judge Harris and attorneys all around the opinion terday that the affairs wound that and lose Predicts Payment of Interest. Receiver pointed that the surplus nearly $20,000 which together with interest that will accumulate more expenses of the receiverships. He expressed opinion also investors would some their money. The wind-up affairs followed lengthy arguments, conferences just plain waiting Monday. hearing got away start nearly hours lat little was until recess taken until the afternoon order to give attorneys opportunity to pass securities be up the Raleigh Estate Trust Company and First MortCompanies insure performcontract assume liability on $101,000 placed paper the treasury the Bond of $35,000 Posted. The bond $35,000, held be the County Savings Bank trustees, finally decided upon. The Raleigh Estate and Trust Company agreed assume $30,625 the and the First Mortgage Company the other $4,375. First mortgages covering property praised $56,000 were posted the bond. The second matter disposed of afternoon Judge Harris signing an order the brought by the State CommisStacey Wade require the Raleigh Real Estate Trust Company and the First Mortgage Auditor Not Yet Through. Reading the report the temporary that the auditor's had not been completed but that his examination him associawas solvent. He reported ond mortgages due \amounting and mortgages amounting would the auditor's report behe would take allowances resulting from the dif- (Please Turn to Page Two.)
