The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-10
ST A r = M = MT
In Relation TO the Condition and Affairs OF
"The North American Trust and
Banking Company"

Banking Company
Thomas G. Tamage and William R. Cooke,
the President and Cashier of the Company, were
examined on oath, before Master Sidell, in rela.
ton to the property Of the said Company; and on
G. Talmage and William r. Cooke as such Presi-
dent and Cashier, on OATH assigned and transferred
TO me as such Receiver, the securities and effects
following, (viz) 81 large mahogany desk and case
cred table, large curled maple chair, 6 ordinary
do, fancy chairs, fire screen, = Yards Brussels
carpet = yards oil cloth, map OF Auburn 2cover-
ca IN yau Fl, office
office chairs, 5 stools, l gold balance case and
stand, = yards ingram carpeting, looking glass,
circular desk, black trunk, 3 tin trunks, blanks,
blank paper, inkstands, candesticks, &c, red
p. Stuyvesant's check $4,000; check on Real
Estate Bank, Miss. 81 1870 O6; Arkansas Coupon,
$27 l6; J. w. Webb's note, 5000; G: J. Ruckle's
note, 1921. 1897 6s; II. e. L. Thompson's note, $5l5
81 do $5l5 81; II. u l.. Thompson's note, $5l5
81 do. 1915 81; ]. d. Beers note, S26, 1886 95, do
$27 900 n; T I. Servoss' note, $500; d. Clark
sons note, 1871 80; M; stapp's do S96l 10; A.
49,, 900; F. Campbell's do. 1850; $. ID. Dakin's
do. SO, 900; J. A. Giman's do. $500; J. w. Webb's
do $4,000; George Bowen's note, $3S6 So; II. G.
Eastman's do. $sI7 Is; J. ketchum's do. $95s 40;
$3l, 1877 so; do $3O,962 80; w Stebbins, S3l5;
Cash, $lO7; Blank Books; Hickman & Martins
?. 6esilvsr, si7S Ss; ]. H. Ray, $sss %; & F.
Bunting, ss720; J. Billings, $3.50; White & Rich
ards, $500; Veader IL Little, $500; Brown q Nc
Catchon, $s26 43; John Sanford, $500. do
nard, 81 ,30l Is; do. 81 800
In addition to the above assets and effects,
found in a trunk one imperfect silver dollar-this
dollar is the only specie funds of the Company
which have been able as yet to discover
Upon an examination of the books, memoranda
letters and other papers in my possession, the fol.
lowing factswer ascertained: This banking COM
pany was organised on the fourteenth day Of July,
1888, under the general ban king law of this State
Its board OF directors consisted of-fOrty persons
the board were authorised by the articles Of assoc.
alton to appoint one OF their number President, and
to appoint Vice President, Cashiers, and other Of
icers, and In behalf OF the company, to carry on
the business Of banking in the city of New York.
The capital stock of the company was declared
to be, by the articles Of association, 49, OOO 900,
with power to increase the same to $50, 600 O0O-
the bonds OF individuals, secured by mortgages up
on real estate within the State of New York The
amount of cash subscriptions for capital stock (f
amy was very incOnsiderable.
The officers of the company in August OF Sep
TENDER, 1888, commenced the business of the com.
pany by purchasing on credit 81 10000 of Arkan-
sas State bonds. This purchase was followed by
other similar purchases in 1885, 1889, amid in the
early part of 1910, OF Arkansas Ohio Indiana Ala
bama, South Carolina, New York, and other State
stocks: The whole amount of State stocks pur-
chased by the officers as aforesaid, exceeded So
10000 The capital stock of the company as ap-
pears by the sworn official statements made to the
Comptroller, at no time exceeded $S3, 2S5, 800.
A very inconsiderable amount of these State
stocks was purchased tor the purpose or with the
design OF depositing the same with the Comptroller
as securities for circulating notes." as contempla-
ted by the general banking law, and not exceeding
$2O0,OOO were ever used tor the purpose The
whole amount of circulating notes ever obtained
from the Comptroller by this company, did not ex-
coed 900, and large part of these notes were
obtained not upon State stocks, but upon pledge
with the Comptroller of bonds and mortgage
of investing surplus cash funds or unemployed mo-
neys or means Of the company. These State stocks
were purchased on credit the officers issuing in
payment or exchange therefor, printed or engraved
negotiable certificates of depositc, or post notes
payable at long periods after date and in most ca
ses these purchases OF State stocks were made as
speculation, or for the purpose of raising, by the
pledge or sale of the same, cash funds for the use
OF the company.
In addition to the issue of negotiable certificates
or post notes inpayment of in exchange for State
stocks, the officers OF the company in the years
1888, and 1879 and lSiO, also issued engraved
gotiable domestic and foreign certificates of depo-
SIT to an immense amount, payable on time, with
interest, all purporng upon their face TO be made
or issued BY the Company-a part Of these nego-
table ceIt!lcates were made payable IN sterling
lop, Dent d Co. in London, and were styled Fo-
reign Certihcates,-and were generally drawn for
round sums of flOOO, f5OO, 1900 ESQ and flOO
drawn payable to the individual order Of John L.
Graham William T.. Hallet, Thomas G. Tai
mage, or other Directors or officers of the Compa-
ny. large amount of these Domestic and Fo-
reign Certificates or post notes were sold or ne 90
ciated in New York and in Europe, to raise mo-
ney.
In the latter part of 1899 or in the months of Jan.
uary or February 1910, this Company became and
was seriously embarrassed This embarrassment
was mainly produced by its dealings and specula-
tons in State stocks, and by the issue of negotia
bic paper IN payment or exchange for the same
andby the issue or sale of its foreign and domestic
certificates or post notes
To raise cash funds, with which to meet abii-
ties, mainly created in the manner and for the pur
poses aforesaid, and to relieve the Company from
its pecuniary embarassmenis thus produced, and
to continue Its existence, the following financial
schemes or expedients were adopted or resorted TO
by the ofiicers:-
On or about the twentieth day of April, 1870
900 printed or engraved bonds post notes, dated
Feb !, 1910, each for f25O sterling, and severaly
payable to Walter Mead or his assigns in five years.
with ten coupons annexed for the semi-annual in
terest,l were signed by Joseph d. Beers, President,
and Walter Mead, Cashier, each bond being as
900 bonds, then in the possession of the Company
Its agents, bonds and mortgages of the Company
were assigned by its officers to Richard M. Batch
toru, Jonh IL ptdnaIn, ana Lewis Curtls, as rus
tces-and Trust Deed styled the Million Trust
Deed, was executed, dated February I, ISlO-the
North American Trust and Banking Company pur-
porting to be parties thereto Of the first part and
Richard M. Blatchford, John l.. Graham and Lew
is Curtis, parties OF the second part and John Hors-
ley Palmer, James Mackillop, and Thomas Dent,
parties of the third part
On or about April 9th, 1910, $50 similar bonds
or post notes, dated Feb !, 1910, and payable to
Mead or assigns, in seven years (and assigned IN
blank form) were signed BY Beers and Mead, as
President and Cashier, and similar Trust Deed
dated Feb. l, 1910, to secure the same, executed
between the same parties. This Deed is styled
the First Half Million Trust Deed.
On or about July !, 1910, similar bonds or post
notes, dated Feb. ], 1910, and payable to Mead or
his assigns in five years, and by hun assigned in
blank, were executed by Beers and Mead as Pres-
dent and Cashier, and similar Trust Deed to &c.
cure the same, and dated Feb. I, 1910, was exc.
cued between the same parties. Thisdeed is STYLED
the Second Half Million Truaf deed =, -