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Says Capital City Institution Is In a Position Whereby a Deal for Consolidation May Be Made. Santa Fe, July 16.—Levi A. Hughes, president of the First National bank, appointed receiver of the insolvent Capital City bank, declared today the Capital City was for the first time in a position where a deal such as that suggested by the Santa Fe bank, for a consolidation, might be successfully put through. Mr. Hughes said: "For the enlightenment of those who appear to think that snap judgment has been taken in connection with the application for a receiver for the Capital City bank, I wish to say that now, for the first time, the Capital City bank is in a position where a deal, such as that suggested by the Santa Fe bank, can be consummated. "The Capital City bank now is in the hands of the court. The receiver is simply the agent of the court. If the Santa Fe bank, or anybody else, has a plan to take over its assets all it can do is go to the court and say 'I'll give so much for the Capital City bank's assets.' The court then will look into the matter and, if the offer seems to be good, the court has the power to order the sale of the assets." Mr. Hughes pointed out that before the appointment of the receiver to have put through the Santa Fe bank's plan would have necessitated a separate agreement between that bank and each and every depositor in the Capital City. Any depositors who failed to sign would retain the right to sue to recover 100 per cent of his deposit. Now, however, with the bank in the hands of the court, the court can act for each and every depositor at one stroke. "The purpose of the receivership is to get every penny that can be gotten for the depositors. The present receiver will not place any obstacle in the way of liquidating the Capital City to the best interest of the depositors. Not only that, but the present receiver will co-operate in bringing about a consolidation between the Capital City and the Santa Fe bank or re-organization and re-opening of the Capital City if either of these things can be accomplished." In explanation of the fact that State Bank Examiner L. B. Gregg applied for the appointment of a receiver last Saturday, after depositors understood he was not to take this action until today or Tuesday, Mr. Hughes said Mr. Gregg was forced to act to prevent threatened diminution of the Capital City's assets and consequent loss to the depositors. C. G. Mardorf, president of the insolvent bank, issued a statement to a depositors' committee specifically denying charges made that he had failed to extend full co-operation in the task of getting the bank out of its difficulties. The infant son of Mr. and Mrs. J. W. Johnson, died Wednesday of intestinal trouble, and was buried the afternoon of the same day in City Cemetery. Rev. Mr. McCarroll conducting the funeral.
