Clinton Trust Co. v. United States

MADDEN, Judge.

The plaintiff is a New Jersey trust company, a substantial portion of the business of which, during the period here in question, consisted of receiving deposits and making loans and discounts. Due to insolvency it closed on March 4, 1933, and remained closed until May 1934, at which time a plan of reorganization previously adopted by its Board of Directors was put into effect.

Under this plan the trust company, as reorganized, was to reopen for business, and the former depositors were to be credited with deposits of 50% of their former deposits. As to the other 50%, the…