The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-04

X,
pressed favorable opinion OF the stock and stated that he
would receive il al par from the bank security for cir
Messrs Joseph Beers Myndert Van schaick and Gil
bert Allen presented written report dated oath Of Au
gust 1888, detailing the terms ment and concluding
with recommendation that the president be authorised
to conclude the purchase. On the day resolution
that effect was passed by the following directors viz
Henry Yates, Myndert Van Setback, Charles Hoyt Jo
seph D. Beers George d. Strong Valentine q. Hail. and
Gilbert Allen.
On the following day. August os 1885, farther report
OF the committee appointed to confer with the commits
oners from the State OF Arkansas for the purchase Of
said stock was made the terms of payment and
the committee invested with power to close the
tract This report was signed by Henry Yates, Joseph
D. Beers, Gilbert Allen Myndert Van Setback James b.
hundred thousand dollars of this stock subsequently
received from the company by Bates Cook ESQ., Comp
the first purchase of State stock by the bank and upon
my return to the city, united with the other directors III
pereetng the contract My concurrence in the matter
tlemen who made the purchase in whose discretion and
integrity strictly confded.
had not then, nor have ] since, owned dollar OF
State stock and had knowledge Of transactions Of that
nature, although participated in the confidence enter
tanned at that time by the whole community in the value
and stability of State credits.
The directors who made the contract were not only
experienced in such but several OF them were
among the largest stockholders in the company Their
interest and the high character they held in the
community. gave the strongest confidence to me, and
should to all Others that they were actuated by no other
than honorable and correct intentions refer especially
TO this Transaction the motives which led to it, and the
IL,
accusation that the company commenced with stock
speculation It was made under the advice OF Gabriel
Shaw, Esq, of the house OF Thomas Wilson y Co, OF
London who was then in this city, who manifested the
deepest interest in the success OF the company and who
was arranging to obtain large cash subscriptions to its
stock in Europe II was intended an investment, and
il the cash subscriptions abroad had been made
confidently expected (and but for that expectation the
bank would not have commenced business) the whole
stock required and intended for deposit with the
Comptroller.
univ RAIL rtaiu in
Arkansas State stock than is furnished in the fact that
at about the time the Government of the United
States the proceeds of the Smithsonian Beuest
equal to $500, 900. in that stock.
The constant effort by the directors to the Ar
kansas stock from sacrifice, and also the Indiana state
stock to the amount of ooo purchased under the
advice of Mr. Shaw short time aerward as basis for
an exchange account with England and the disappont'
ment in not obtaining large cash subscription to the
stock Of the company in England, produced mainly by
the prospect rupture between the two countries in re-
ation to the Northeastern boundary entalea upon the
company continual necessity for raising cash means to
provide for the payments accrung for these purchases
It not my intention. have the to enable
1t was department with which was not charged and
for the management Of which was not responsible, for
constantly and unrem ttingy engaged in my profess
sional business devotng all my energies and powers to
the performance of my legitimate duties To the
of explaining the causes Of its disasters aud lis final over
throw; and understand that those gentlemen, Of
shortly publish it.
The subject with which Mr. Leavltt has connected
my name the creation of three trusts by the company
amounting in the aggregate to two millions Of dollars.
Information having reached the company from their
agent in England in January 1910. that the negotiation
its stocks abroad hopeless except
prices and that they would he sacrificed to the heavy
advances already made upon them unless other
were provided tho directors egislaed as all other nst
tuons and individuals did at that time, upon the
expectation ofbeer times and decided honestly and
in good faith that the true interests of the stockholders
consisted in entng the sacrifice At that time Fletcher
Wilson, Esq, ofthe house of Thomas Wilson and Co.
Of London then in this country gentleman Of high cha
perity ofthe COMPANY both Individually and as the friend
Of several large stockholders in London advised the d.
rectoss to meet the and avert the disastrous
cures and engaged to urge his friends in England to
make the necessary cash advances to accomplish the
object.
The plan proposed the creation of two trusts
for million and the other for half million of dollars thu
obligations OF the company to be given payable In
years at low rate OF interest the payment of which oh
legations and the difference Of exchange to be secured by
deposit in the hands of trustees of an adequate amour
of bonds and mortgages The proposition iavorably
entertained The directors, and many Of the larges
stockholders not directors, unreservedy consulted
in respect to the measure. 1t subject freely ant
openly discussed and adverted TO in the newspaper
the day. and all agreed that the procurement Of thes
holders. was directed as counsel of the company, to
prepare the form Of trust deed for the million Of dol
lars; did 80, and furnished it to Mr.. Wilson, and thu
counsel of Messrs. Palmers Mackillop Dent Co.. havnt
approved IT, forwarded to England The names of thu
inserted in the trust deed essrs Beers Ty
lee, and myself.
mitted to eminent solicitor (Thomas Oivcrson, Esq
of London) who suggested new form Of deed in which
ton Of parties in England in the reception of their inter
est upon the Of the company to add the name
Of iorsey Palmer, Jarses Macklop and Thomas Dent
upon its return to this city, deed was executed u
the form proposed in London being requested by TIT
parties in England that Lewis Curtis and Richard NJ
Batchford Esqrs persons not connected with the com
pany should act trustees in the place OF Messrs Beer
and Tylee who officers OF the company, and thu
names of Messrs Curtis and Batchord were substitute,
strust deed nj "A
900 shortly aerwad executed between the par
ties and for the object in pursuance Of the plan be
fore mentioned twas also requested by the same parte
that should act trustee, which consented to do blu
being the counsel Of the company declined receiving
trust deed in the same form between the same parties
executed to secure S5000O0 Trust certificates, pay
able in FIVE years. created in order to make payme
ooutsandng obligations of the company given for stat
The compensation to the trustees for their services
the three trusts fixed S33 o0O of which S22
belonged to Mr. Blachiord and 81 900 to Mr. Curt
The duties which have devoved upon me as trustee
assisting in the management OF these trusts during II
period they have existed nearly four and
bracing bonds and mortgages for 50 700 600 ha,
been and vexatous. For these services hay
received compensation. When these trusts
ated, it presumed that through them the compan
would be sustained, and OF that would retain
receive compensation trustee The information
therefore, which Mr. Leav states he has recei, ed
a pectng bargain between Mr. Blatchford and myself
| entirely erroneous
proper to state, that have repeatedly expressed
desire to resign trustee and should have made appl
cation to the Chancellor to be discharged but have bee
dssuaded from il by parties interested have hhert
performed my duties to the best of my ability and sha
continue to do The trustees legally bound 10 d.
fend and protect the rights of the distant aud innocer
parties, who have advanced their money, and conided
the honor and good faith Of their debtors Having selec
I'd the depository of securities for these obligation
which held by agreat Number Of individuals, ther
rests upon legal and moral obligation to resist all
fots overthrow the trusts by whish they
have apprchensions that in performing duty in
perous and in abiding by the decisions Of the tribunals
the country shall incur the displeasure Of the hone
4 portion Of the community.
Soon after the execution of the deeds of trust
pared in England, II ascerained that they require
material alterations enable the trustees to protect II
trust property. The opinion Of the most eminent cou
eel in the city invoked The trustees employed ar
acted under the advice Of Chancellor Kent, David b Oh
ien Peter A. Jay and William Curtis Noyes Esqrs
all matters touching their powers duties and respons
bilities guided by their united written instruction
Il recommended that additional supplemental deeds
;, trust making the proposed alterations, should be prcps
ed and executed which done and the following
| icate is endorsed thereon