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


such deposits believe TO be nominal.
will state in this connection that the whole
amouQ of actual indebtedness to the company was
covered by securities. with the exception of about
$780, 900 which at the time it was confidently be-
lieved, would be paid from the excess OF property
in the several trusts over the amount for which it
had been assigned.
BY careful examination of the Receivers state
ment taken in connection with the assignment and
transfer o! the property and effects Of the company
to him by the officers, it will be found that he ac-
knowledges to have found securities in the several
trusts including the amount in the possession OF VIM
u. Wood Esq, amounting to-. So, III, $50 70
In state bonds IN the possession OF
Messrs. Palmer, McKilop, Dent
Il Co: and others in Europe, held
as collateral sc curity amounting at
PAR to about the sum Of .......... 100000 90
And by an addition of the amounts
Of the several claims, in the sche-
dulles to the assignments to HIM
Exclusive Of the Office furniture)
there will be found the nominal
amount OF about ................ 3O5, 600 90
Which taken together amount to-. 6,9I9, 100 70
If he had examined what he calls
the Holford Trust he would have
found the property transferred to
amount to $lO6, 598 exclusive Of
interest, instead Of $45, 900 as is
in his statement, which accounts
Tor an additional sum Of ........ 1888 90
Which makes the amount of assets
transferred to him by bis own
statement and the last addilsn
the sum OF 6,SSO,7SS rs
From which is to be deducted the
amount of the company's debts
(Which are not given in any part of
the receivers statemen) but
which appeared to be in January
1841, nine months prior to his APP
pointment $4,652 655 II which
had However been considerably
reduced prior to his appoint
ment. The actual Indebtedness
OF the company al the time of
his appointment, firmly believe
did not exceed. ................. 4,500, 600 90
Which leaves balance of assets at
the time OF the transfer over the
debts, Of. Observation-Disclosures. 2,4sO7ss 70
To which add the amount of losses
which the Receiver states was
charged as against the capital in
the January return to the Comp
troer Of lS4l .................. 522,7l4 80
And there is accounted for 3,OO3, SOB 80
OF the capital which he states at 49, 2S4 900; leav-
ing balance to be accounted for of $282, 1876, and
which is made up in the amount charged to profit
and loss during the period between the January
return, and the time the receiver entered upon the
discharge of his duties and in the large amount of
back interest due at that time upon the bonds and
mortgages and other assets in the various trusts
The foregoing. exhibit from the best data in my
possession, and from the statement of the Receiver,
will satisfactorily account for the property of the
company at the time ii was enjoined. This
ty although deprecated in value by general causes
was still held by the company
Except the amount charged to profit and loss,
subject to the equitable claims of the creditors in
terested under the trusts, and when such claims
were disposed of, applicable to the claims of the
general creditors and the stockholders.
The preceding statements complete what ! have
designed to say respecting my connexon with the
company and the Receivers Report but will add
a brief statement of the causes which produced the
failure of the company.
Nav Ok.hI, ,l,I, Al.
suit but prominent and leading Cause was the
rapid depreciation in the value and price of state
stock, real estate, and other property in the years
1889, lS4O and lS4l, to which may be added losses
by bad debts, and the sums paid for commissions
and interests on moneys borrowedby the company
to meet its engagements. f.
On the first Monday in January 1871, the COM
pany owned state bonds, chiefly Indiana Arkansas
and the Territory Of FLORIDA, amour
They also held at this last date ''
bonds and mortgages and real estate,
including the securities embraced in
the Trusts amounting to about. .... 1000, 900
They also owned other assets and
property amounting TO about...... 1,7OO,0O0
The value OF all this property was estimated at
about $50 800 900; and it was thought hatthe debts
could be paid and about 80, OOO, 600 saved to the
stockholders if no further depreciation took place
and the country became prosperous
it will be recollected that an unsuccessful at
tempt was made by the Banks of PENNSYLVANIA, and
the south and west, to resume specie payments in
January lS4; upon the failure of this attempt, and
the final overthrow Of the United States Bank,
commenced reriod of pecuniary pressure, and a
rapid depreciation in the prices Of state stocks and
other property. Some state stocks were sold by the
company after the first day of January 1S4l, and
before the appointment OF the Receiver, but it is
safe to assume that the amount of state stocks I'M
disposed of, at that time was ST ,6O0, 10000. The
depreciation upon this amount of state bonds, at a
forced sale would not have been less than 81 ,0O0-
ONO, and the depreciation in the other securities of
the company, and the losses consequent on the
insolvency OF some of its debtors, was very con-
siderable, In addition to the amount charged to
proht and loss lnthe year 1871, (Which may be
exceed $s5OO,OOO
In the foregoing statement have endeavorcd to
confine myself to the topics which tend TO explain
my own official acts and the carses which led to
the failure OF the institution. Those who were in
active business during the disastrous period of the
company's existence, will wildly remember the
widespread ruin which involved equally insttu-
tons and individuals, and swept away the h,rl
earned property OF thousands of our most indus
trous and enconomIca citizens.
Many companies with cash capitals, condu Il, d
and conducted by gentlemen of great experience :.
integrity and prudence, lost large portion Of their
capitals; others were seriously embarrassed, and
found it impossible to meet large portion OF their
obligations at maturity, and others were entirely
overthrown, their whole capital lost, and in addi-
lion were unable to meet any considerable portion
ot their Ii billues In this iamity Caused by Il e
change OF value) banks, insurance and trust COM
panies and railroad companies experienced COM
| mon late, To these causes Uhus operatIDg) may
be a'tribsted the failure of the nth American