The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-14

nllow. and entered into the following agreement
for that purpose The Commissioners were to de-
post $500 900 in bonds OF that state, with the state
for secuy with leave to it 10 hypothecate, pledge
and use them as they might desire, and thereupon
the Company were 10 advance to them $l2S,O 900 in
money, and give them letters of credit for Sl25,-
This was carried into effect, and the Company
upon becoming possessed Of the bonds and In order
10 obtain the funds agreed to be advanced by them
obtained loan from Holford, Branker & Co., OF
this city, OF about one hundred and thirty thousand
dollars, and ultimately upon an arrangement VIII
Holford u Co, Bankers, London, OF about S3@S,.
600, which last negotiation was AUTHORISED py
said Commissioners in their agreement win the
The Commissioners, in August, ISL offered to
repay the Company the amount advanced 70 !hem,
and IA thew had not used the letters OF credit, Of
fered to return them to the Company, and asked
return of the bonds This waslmpracticable, as the
bonds had been sent to London under their sane
ton and return OF them from HOlford " Co of
that city could not be obtained, and farther, the
Company had an equitable claim against the Real
Estate Bank Of Arkansas Tor the difference between
Beers, which amounted TO about seventy thousand
dOllars, which, together with the cash advances
and the letters OF credit (Which it was not known
they had not used) made the full amount which
had been obtained from Holford Il Co., of Lon
don, which at the time il was made, it expect
ed they (the Commlssioners) would assume and
thereby settle with the Company after finding that
the Commissioners had not used the letters of
credits and being DESTROYS Of protecting the inter-
est OF all concerned, far possible the finance
committee ordered a conveyance of property in
trust for that purpose to Francis Griffin, Esq, of
this city. The property assigned consisted OF three
prOmissory notes OF G. w. Taylor amounting to
ST, 796. secured BY. mortgage upon real estate at
Alabsma. and claim upon 81 the Real Estate Bank
portion of the property assigned TO the Company
by Mr. Beers, the former President, and had with
other property been placed in the hands OF Mr.
Abijah Mann, Jr., BY special rover Of attorney, to
adjust and collect for account OF the Company,
and the $4,000 claim against the Real Estate
Bank Of Ar kansas, was adjusted recognized at
$56 800 above by the Commissioners. The ar
rangement of this trust was effected by and be-
tween special committee on the part of the Com
pany. Mr.. Mann acting for Mr.. Beers, and the
Company under the direction of said Committee,
and Francis Griffin, Esq. acting for Hoford " Co.
The claims (cr portion Of them) which were
signed in trust to Mr. Griffin, would probably have
bcen an equitable Get of against the Real Estate
Bank of Arkansas, that in fact the effect of the
transaction was only to place these matters in such
position, as would enable fair adjustment Of
them to take place.
The trust called 'sThe Tylee Trust" was execu-
ted on the lst day OF September, lS4l, and was
made to secure several of the directors against a
personal guaranty which they had entered into on
behalf OF the Company to secure debts due from it
to several banks IN Arkansas and for which those
Directions might be liable to the amount of above
$lS,OO. The authority to transfer securities 10 in
demnlfy the parties who had signed this guaranty,
had been given by vote of the Finance Commit
tee several months prior to the authority, for the
same purpose, granted on the 7,h Of June, ls4l,
and again repeated by the Finance Committee on
the Slst of August IN the same wear.
The legality OF this trust was questioned, and
bull In Chancery filed to set il aside, and the gen.
tieman Tor whose benefit it was made not seeing fit
to contest it, it was aside, but the object for
which 1t was made was just. But another obec-
ton is urged against the three last trusts namely
that they were made pending the proceedings IN
Chancery for enlOnng the institution and appoint
tng receiver. All the arrangements in question,
however, were completed before the 3lst of Au-
gust and the lst day of Septenber, l84I and the in
iuncton suspendins the compsny's proceedings
was not served upon me until the Sd day of Sep |
tember lS4l 1t Is well, however, to remark that
was confined to my house in Brooklyn, with a Sc. |
we're attack OF bilious fever, during the entire
month Of August, lS4l, and the meeting of the Fl
nance Committee during the latter part OF that
month, were held at my house. My illness pre-
vented me from the performance of my ordinary
companys being epjoined, which circumstance
considerably delayed the execution Of these trusts
Two other topiGsrernain TO be noticed. The first
LIS the sCmi-annual report made to the Comptroller
on the frs, Monday of January Is4I The Receiver
charges: that ut does not state the creation of
the trusts; 2. That the 1900 bonds under the first
three trusts, amounting to S. 0OO 900, are not men,
tioned among the debts, while all the assigned |
bonds and mortgages, and their securities, were in
cluded among the effects of the Association :" thus
inslnuaung that the return did not disclose the
tual condition Of the Company.
maintain that the report in question did give
the actual condition of the Company, TO its pro-
perry and Its effects, and that the true amounts of
It's debts with all the certainty that could be OBJ
tanned from the books and the information posses
sed by lie officers.
II was made up with great care by an experienced
accountant, according to the requirements |
Of the law, and in the form prescribed by the |
Comptroller, and its correctness was vouched for |
under oath by the person who made it up, before |
1t was sworn TO by me.
That the public may clearly understand the mat
Ter, copy extract from the returns made to the
Comptroller OF the State, on the first Monday of
January, lS4l showing the amount of the liability
OF the Company under their respective heads, viz
The amount pay able to City Banks 1891 o. |
The amount pay able TO Country Banks, 9,I6l 81
Obligations for ac of State stocks time 1877 27O 81
Liabiliues payable in sterling in London All 6S7 80
Due 10 oepOsiors. l22 e35 10
The amount Of bills notes. other evidences
OF debt, issued by this Association crcula.
ting notes, OF the denomination of 500 and
under, $50 90 |
s4,652, COS Al |
AT the time il was made. the Yates trust had not |
been created, and of course could not be noticed
The trust created before and existing upon the