New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1844-03-04

J I99bteht OF Inc value OF property place conf.
aenee. Go therefore unite in certifying our opinions
De- ts e aiue OF SAID property shown by the several
10 eac parcel eSpectvely and this valuation the
SANE tor safe and permanent investments.
erty million three hundred ssd nnety-fve thousand
TWO hundred and fifty dollars.
(sigosd, J J3NE5 T TV WEFTs
JOHN K. PETERS
The property thus appraised as safe and perma-
nent investment, at 81 1875 $50 has been morfgaged
to the company for 81 025,700 showing an excess OF
value N the opinion of the appraisers at the date OF
their certificate OF 1868, $50.
have been thus particular in giving names and
events, IN order to repel the unoundcd mputations
made against the integrity and good faith of the or
ganlzation OF this company. All the facts / have
stated and a more full detail, under oath, can be
found on the files of the Court Of Chancery. Those
records exhibit systematic, regular and honest or
ganizatlon OF this COMPANY and those who ques-
ton it will be convinced of their error upon referring
to them.
Upon reference to the books Of the company it will
be found that 81 It's first acts after its organiza
ton, was the purchase Of S1000OO0 of the stock of
the State of Arkansas. The most cautious invest-
CATION, | believe, lfor ] was absent from the city
when it was made) preceded its purchase. The
stock was intended for deposit with the Comptroller
for circulating notes, ard purchased after con-
sultation by the President with the then and pre-
sent Comptroller Of the State, Hon. A. c. Faagg,
stated that he would receive it at par from the bank
as security for circulating notes. A committee of
the directors, consisting of Messrs. Joseph D. Beers
Myndert Van Setback, and Gilbert Allen, presented
written report dated Oath of August, 1885, detail
ing the terms Of payment, and concluding with
commentator that the president be authorized to
conclude the purchase. On the same day a resolu
ton to that effect was passed by the following d.
rectors, viz: Henry Yates, Myndert Van Shack,
Charles Hoyt, Joseph D. Beers, George D. Strong,
Valentine G. Hall and Gilbert Allen.
On the following day, Aug ., 1888 farther
port Of the committee appointed to confer with the
Commissioners from the State of Arkansas for the
purchase of said stock made, varying the terms
of payment and the committee was invested with
power 10 close tho contract. This report
signed by Henry Yates, Joseph D. Beers, Gilbert
Allen, Myndert Van Setback, James B. Murray,
Henry H. Leeds and George D. Strong. Two hun
dred thousand dollars of this stock was subse-
quently received from the company by Bates Cook,
Esq, comptroller, on deposit for circulating notes
par This was the first purchase OF state stock by
the bank, and upon my return 10 the city [ united
with the other directors in periectng the contract.
My concurrence in the matter rested entre y upon
the judgment Of the Respectable gentlemen who
made the purchase, in whose discretion and nteg-
rity strictly confded.
had not then, nor have [ since, owned dollar
of state Stock and had no knowledge OF transac-
tons of that nature, although participated in the
confidence entertained at that time by the whole
community in the value and stability OF state credits.
The Directors who made the contract were not
only experienced in such concerns, but several OF
them were among the largest stockholders IN the
company. Their own interest and the high charac-
ter they held in the community, gave the strongest
confidence TO me- and should to all others, that they
were actuated by other than honorable and cor
rect intentions. refer especially to this uansac-
ton the motives which led TO it, and the individuals
who made it, order TO repel the oft-repeated ac
cusaton that the company commenced with stock
speculation. 1t was made under the advice OF Ga
briel Shaw, Esq, of the house OF Thomas Wilson
& Co., of London, who was then in this city, who
manifested the deepest interest in the success of the
company, and who was arranging 10 obtain large
cash subscriptions to its stock in Europe. 1t was
intended as investment, and II the cash subscnp-
tons abroad had been made as was confidently eX
pected land but for that expectation the bank would
not have commenced business, the whole stock was
required and intended for deposit with the Comp
troller.
No stronger evidence can be given OF the conf
dence which was universally entertained in the
value of the Arkansas State stock than Is furnished
in the fact that about the same time the Govern
ment of the United States invested the proceeds OF
the Smithsonian beQuest, equal TO S5O0,OO0 IN that
stock.
The constant effort by the Directors to preserve
the Arkansas stock from sacrifice, and also the In
diana State stock to the amount OF Sl,200,OO0, pur-
chased under the advice OF MIR. Shaw short time
afterward as a basis fer an exchange account with
ENGLAND, and the disappointment in not obtaining
n large cash subscription To the stock OF the com
pany in England, produced mainly by the prospect
of rupture between the two countries III relation
to the Northeastern boundary, entalled upon inc
company u continual necessity tor raising cash
means to provide for the payments accrmng for
these purchases. II not my intention, nor have
the means 10 enable me 10 furnish history OF the
financial operations of the bank. Ii was depart
ment with which l was not charged, and Tor the
management of which was not responsible, Tor
was constantly and unremtungly engaged IN my
professional business, deyoting all my energies ana
powers 10 the performance OF my own legitimate du-
t;es To the financial officers OF the company prop
erly belongs the duty of explaining the causes OF It's
disasters. and its final overthrow; and understand
that those gentlemen, or one OF them Is preparing
statement on that subject, and wlll shortly pup
lish il.
The next subject with which Nir. Leavitt has con
nected my name is the creation OF three truStS, oy
the company, amounting IN the aggregate 10 t1o
millions Of d0ll6rS'
Information having reached the company from
their agent in England in January, l84o that the ne
cotiation of its Stale stocks abroad was hopeieSs
except at ruinous prices, and that they "oulo Nc
sacrificed TO meet the heavy advances already mace
mon them, unless other means were pfovld-
ed the Directors legislated all other lnsutuloHS
and individuals did at that time, upon the erroneous
expectation of better times, and decided honestly and
in good faith that the true interest OF the stock
holders consisted in preventing the sacrifice. AT
that time Fletcher Wilson, Esq, one of the house
Of elI''; Thomas Wilson 4 Co, London then in this
country, gentleman ofhig character and in,elll.
sence and largely interested in the prosperity OF
the company both Individually and as the friend OF
several large stockholders in London, advised the
directors 10 meet the emergency and avert Inc dis
ostrous sacrifice of It's State stocks by resort 10 It's
mortgage securities, and engaged 10 urge his friends
in England 10 make the necessary cash advances 10
accomplish the object.