The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-14
1850 on
S4.652,665 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
first Monday of January, l841, were the million
trust and first and second half million trusts and the
Batchford and Murray trust.
The trust deeds in all these trusts contained
clauses that the securities to be held for the
benefit OF the Company, until default should be
made IN the payment Of the obligations secured
under the trusts and until such default the Compa.
ny entitled to the interest upon the bonds and
mortgages assigned. Previous to the first Monday
In January, lS4l, no default had occurred in the
payment OF the obligations, and the Receiver him
self informs the public "that the officers always in
slseu that these bonds and mortgages were kept in
the banking house and were held by the trustees
tor the Company until default was made in the pay
ments OF The interest or principal Of the bonds
made under the trust deeds against them" Pre-
vious TO !his ume none of the bonds under the two
halt million trusts had been sod but were all held
IN pledge by varons parties as collateral secur-
lues Tor debts due by the Association the bonds
under the million trust had been forwarded 10 Lon
don IN the aiterpart OF April, and early part of MAY
1910, to Messrs. Palmer, McKilop. Dent IL Co.
who commenced the disposition OF them but, as
was rendered by them until the Both day of
December, 1910, dated London,) and that
account dad not come TO hand until Feb
ruary, lS4l. consequently their avais could not
account current Of Palmer, McKilop, Dent 81 Co.
was handed overto the Receiver when he took pos
session Of the papers ofthe Company and is presm
ed now to be IN his possession
The report in question states the debts of the
COMPANY, as will be seen by the above extract,
81, 652, G65, Al and that this amount includes ali
the debts represented, or in any way secured by
the bonds OF S2,000,000 made under the rec
trusts.
In addition, the return also states that the debts
OF the company, $27II 6s7 30 were for liabilities
payable IN sterling in London, thus pointing to the
particular liabilities which led 10, or were connect
ed WIN the bonds in question. And although the
bonus themselves were not (for the reasons above
RNen) expressly mentioned as outstanding obIiga-
l,ons OF the company, yet il is seen that all the
ue3's LOT winch they were held were fully and
uuly s'ated' and that the return would have been
erroneous and false it, in addition TO the debts
enumerated, u had also represented the bonds as
outstanding liabilities VIZ ''"'' "'
IL was proper to include the mortgages embraced
In the trust among the assets of the hank They
were simply pledged, not sold. or absolutely nar,cd
with and were in the joint possession Of Inc second
cashier, Mr. TyIee and the trustees, in the banking
house 0. the company, and were the very assets
which were relied on TO meet a part of the debts
stated in the report The statute does not reouire
has it ever been the practice Of associations or
banking institutions, In their returns TO the Conn.
trollcr, 10 mention any pledges or hypohecauons o
property made In the transaction OF their business
nor are they required even to discriminate between
the securities placed by them in the hands of tn,
Comptroller security for circulating bills an,
their securities in general. The object Of maxim
these returns was SIMPLY to comply with the Prov