The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-10


OF the bills receivable, no estimate can be made bat
they are supposed to be worth at least 100000 At the
above valuation and provided every cent is realized the
balance On hand after deductng the liabilities of the
bank, will not vary much from $500 0OO The nominal
capital stock Of the bank S. of which, stock
amounting to 49, 009 issued making 10000 shares
IN the hands Of stockholders which they will receive
1.-THE above balance is realized about SO per share for
$50 paid out leaving loss the investment alone, to
say nothing about the loss Of interest," Of sal 90 per
This loss falls upon private individuals, many Of whom
placed their all in this institution trusting to- ana
ing on the regular dividends for their support and main
tenance Many of the officers and directors Of this bank
are at this moment rolling in wealth, while they have
beggars and paupers of many who have placed
fdence in their honesty This is the modern system of
banking II enables those managing the banks to swim
die and defaud the stockholders and retire themselves
with fortunes wrung from widows and orphans. poor
devil who steals stick Of wood to keep his life blood
from freezing, finds resting place Backwelrs Island
but the gentleman of character andepuaton that swim
dies the poor out Of their last dollar and throws them
upon the world destitute finds resting place in Bond
Blocker street, after the trials and anxiety Of
full financial manGuvre This unjust distinction 10 rapidly
wearing away Several States south and west have lately
passed laws making the acts Of bank officers similar to
the above, ndctable offences By placing the crimes Of
breach Of trust" and stealing" par the ends of
justice not always satisfied The very capital taken
from the banks by defaung officers, is used to fee
sell and exert its influence in passing them through the
meshes Of the law The repeated exposures made Of de-
facaons and breaches Of trust should awaken the legs
atures Of all those States that have not law their
statute books covering and punshng this crime crime
that produces distress and suffering than any other
one in the whole decalogue.
notwithstanding we have had the statements of the
United States Bank the Commercial Bank and host of
Others the report given below of the North American
Trust Banking Company Of this city presents features
fully as astounding as any in those that preceded it.
astonishing that individuals after becoming involved in
proceedings that exhibited by the exposure Of the
Banks and Trust Companies, maintain the position
many Of them still occupy and support their standing in
society The fact that they do the fact that they daily
walk the streets, making as public as possible their i'll
gotten wealth. great incentive to others to follow in
their footsteps and sufficient fill the minds of many
who would otherwise remain honest with principles that
lead them into the vortex that produces much
corruption and rogueIy.
The report lately made by the receiver of the North
American Trust and Banking Company cansed by call
made by several of the stockholders mixed with those
who have lately commenced specializing in the stock
presents about great exposure of financial fraud
ever made its appearance in this city, celebrated for
these things The North American Trust and Banking
financial school Of Wall street. The President after
making fortune in the brokerage business satisfied his
ambition by filing the presidential chair institution
with capital of 000 In the board of directors
find the of celebrated loan negotator who obtain
ed his share Of the spos in the shape of bonus forty
five thousand dollars for visiting Europe Another
Der legal gentleman whose consultation fees
amounted to about forty four thousand dollars in very
short period besides large salary standing counsel
Several others interested did less actual business and OBJ
tanned larger payments. In this large portion
of the capital was absorbed The resources of the COM
pany have been used up inside the banking house When
the present receiver entered his duties the immense
capital and of this institution were managed by
trustees all Of whom except two, had been officers d.
recto legal advisers Of the bank creating the trusts
We see by this that the individuals through whose
management the bank made insolvent, retained
control Of the whole assets after the assignment as Trus
tees. Had they been suffered to remain in Office the as
sets would have dwinded down to very triAing
The investigation into the abuses, and the appointment Of
receiver by the Chancellor has prevented the sacrifice
Of the remaining property The trusts made by the
tees to Daniel Tylee the LIST I'd of September,
ls has been set aside by the decision of the Vice Chan
celor The creation Of the trusts have been the
the bankruptcy that has overtaken this institution
The constant demand for capital in consequence of the
accommodating wants from those who were daily sucking
every drop of blood from the institution compelled the
officers and directors to deposit securities in the hands
of parties making the necessary advancement. Had
these trusts been legal had they stood the test of nves
cation the stockholders would have received but the
smallest fractional proportion of their investments As
the case now stands, the sto ks looks very favor
able, and the advance will be eft those who are
the best entitled to it, and who have for long
time looked in vain for return of their rights
The assets securities and property of the Company
held claimed to be held in trust by eight parties upon
many different Trusts valued ut $5,067 1908 In
addition to the above, parties in Europe claim to hold
State stocks of the Company collateral value at par
about 81 OOo Also in addition to the above secur
ties Mr. g. Wood Zone law partners of John L. Ora
ham, the legal gentleman alluded to above, as having
ceived for legal advice claims to hold two bonds
which there is DUE exclusive of interest," $57 00 for
the benefit of Blachford Curtis and Graham part Of
their securities for the payment of their salaries The
whole of this immense amount of assets purpong to be
assigned by of these Trust deeds included in
the official returns forming part OF the assets and
securities of the Company and applicable to its indebted
The moral turpude displayed in all the acts connect
ed with the administrations othe affairs OF this bank
the moment the Chancellor appointed receiver
has been surpassed in community protesting possess
the slightest quantity Of honesty, notwithstanding which
the principal parties concerned still considered in Wall
street and its immediate vicinity all honorable We
expect before many months roll along that of the
Banking and Trust companies in exstense that yet
have been able to disguise the corruption thai is working
in secret will suddenly collapse, and leave just such
wreck behind exhibited above. After having
passed through the that have ranspired 1887
nothing that Is surprising; nothing turns up that
nstonishes any one for the public mind prepared for
any expose that may yet be unpe not quite perfected
Old St0Ck Exohan1e.
$4,000 u 6's, go IN SIX 1i3X GO q City Bank 10
700 N State 5s. i8 100 1870 XicksbuIg Bank TX