New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1844-03-04
EW-YOR NONDA ymORyg G.m.pCEs

NEW-YDRE, MONDAY rg<
proposed, for the accommodation of parties in Eng
land IN the reception OF their interest upon the OBJ
legations OF the company 10 add the names of J
Horsley Palmer. James Mackillop, and Thomas
Dent; upon It's return TO this city, new deed was
| executed in the form proposed in London, it being
requested by the parties in England that Lewis
Curtis and Richard NJ Blatchford, csqrs.. persons
not connected with the company, should act as
Trustees in the place of Messrs. Beers and Tvlee,
who were officers of the company, and the names OF
alessrs Curtis and Biatchford were substituted as
Trustees. Another deed OF similar character for
SoO0,O00 was shortly afterward executed between
the same parties and for the object, in pursu.
ance OF the plan before mentioned 1t Was also re-
quested by the same parties that | should act as
Trustee, which consented to do: bur being the coun-
sci OF the company, declined receiving any compen-
satlon for my services. Subsequently, another
deed, in the same form, between the same parties
was executed TO secure 100000 Trust certificates,
payable in five years, were created, in order to
make payment OF outstanding obligations of the
company given for State stocks and about matur
ing.
The compensation to the Trustees for their SER
wees IN the three trusts was fixed at $4,000, Of
which sum $4,000 belonged to Mr.. Blatchford, and
Sll 900 to Mr.. Curtis. The duties which have de-
volved upon me as q trustee, in assisting in the
have existed, now nearly four years, and embracing
bonds and mortgages for over O00, have been
onerous and ve1atious, For these services have
received no compensation. When these trusts were
created, it was presumed that through them the
company would be sustained, and, of course, that
would retain its professional patronage; hence my
reason for declining 10 receive compensation
trustee. The information, therefore, which Mr.
Leavltt states he has received respecting bargain
between MIR. Blatcbford and myself is entirely er
rOneous.
Its proper to state, that have repeatedly ex-
pressed desire to resign as trustee, and should
have made application TO the Chancellor TO be dis
charged but have been dissuaded from it by parties
interested. have hitherto performed my duties 10
the best of my ability, and shall continue TO do So
The trustees are legally bound to defend and pro-
tect the rights of the distant and innocent parties,
who have advanced their money, and conided in the
honor and good faith Of their debtors. Having Sc
leced the depository of securities for these OBJ
legations, which are held by great number OF In
divduals. there rests upon Us legal and moral OBJ
legation TO resist all efforts overthrow the trusts
by which they are secured. | have no apprehen-
sions that in performing duty SO impenous and
in abiding by the decisions of the tribunals OF the
country, we shall incur the dispeasure of the hon
est portion of the community.
Soon after the execution of the deeds OF trust, as
prepared in England, it was ascertaned that they
required material alterations to enable the trustees
to protect the trust property. The opinion OF the
most eminent counsel IN the city was invoked. The
trustees employed and acted under the advice OF
Chancellor Kent, David B. Ogden, Peter A. Jay,
and William Curtis Noyes Esqs. and in all matters
touching their powers, duties and responsibilities,
were guided by their united written instructions. 1t
was recommended that additional supplemental
deeds of trust, making the proposed alterations,
should be prepared and executed, which was done,
and the following certificate is endorsed thereon:
We have examined and considered the aiorsgolng nstu-
and of opinion that obviaes the difcues point
ed opinion dated May 22d 1884, and we recommend
the execution OF the sane ,,,,rn
"PEsTEsR A. Al. JAY,
sMlk Il +; 9 ctETis MOVES
'NEw-YoRE, June 10, lStl"
The Trustees having been informed, in October,
1871 that MIR. Leavitt intended TO insist that the
trusts invalid for usury and upon other grounds,
the Trustees placed themselves under the legal ad
vice of BENJAMIN F. Butler, Samuel a. Foot and
William Curtis Noyes, Esqrs. Mr.. Leavitt after
ward fled several bills in Chnncery to set aside the
trusts upon these grounds. The suits have been
pending for long period, and all the subject mat
ters embraced in them, and in others involving the
organization of the company, have received the
most searching and thorough examination. am
justified in saving that the eminent gentlemen last
named after the fullest investigation in preparing
the pleedings in these causes, which now pend
lng have perfect conviction that that the organl-
cation of the company conducted in good faith,
and in accordance with the provisions OF the Hener-
al Banking Law, and that the trusts were created
in good faith, for the purpose OF providing Tor the
payment of debts Justly due from the company, and
of raising moneys tor its use, and that both were
Unsuitable and laudabe objects.
feel at liberty TO invite reference to those gen
tlelnen for the confirmation OF this statement.
Mr.. Leavit upon the subject of the obligations OF
the company on time (which he denomlnates post
notes. has deemed proper 70 obtain and publish
order m pS
that the greater part of those obligations are VOID
because issued after the passage OF the act OF May
II, 1910, and he copies the 18th section OF that act
which imposes severe penalties upon the othceTs
and members OF banking asseclationior vlolatlqh
OF that section. He also publishes the opinion of
the counsel. given upon an imperfect statement OF
facts at time when that and all other questions IN
volyed in these controversies, under Amusement
by the Court of Chancery, having been previously
argued by the counsel of the respective parties, who
are anxiously waiting a decision.
MIR. Leavit having thus. by his publication, pre-
scented me and the other officers and directors OF the
company to the public having violated thus stat
ute and ncurred It's penalty, l am constrained, IN
sedefence to state the facts IN connection with II,
although conscious of the improperly OF drawing
into discussion in the public journals questions m
yolving such large amounts OF property, and winch
have been deliberately discussed, and are before the
courts for deliberation and decision.
The directors, after the passage OF the act OF May
a. l840 desired the views OF counsel upon the con-
strucrion of it in reference TO their right TO create
obligations on time. | was directed TO furnish an
opinion and TO associate other counsel with me:
Samuel A. Foot, William Curtis Moves, and David
B. Ogden, Esqrs., united with me IN the opinion that
the company had the rig bit TO make notes upon time
in the manner and for the purposes proposed hese
opiniousorw | publish, nyindcation OF the Board
OF Directors, who acted in full confidence OF their
soundness.
Ii is proper to add, that the results Of these opn
ions have been sustained by a late decision OF the
Court for the Correction OF Erors-the highest ju-
dcial tribunal OF our State. 1t having, at the urne
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