The New York herald., 1850-02-18
The North Ameris an Trust and Banking
Company.


Company.
The stuperdous scheme Of repudiston attempted by
this Institution, and the Dry Dock Bank, and with
the extent TO which corporstons endowed with special
privileges speculate their violations Of 10
was able TO reduce s AFFAIRS to great simpoity, It's
liabilities bsiag single large debt against which II
could interpose the peculiarly favored plea Of usuy
with justness, We must admit, far suoh . term
can be applied to such ples and certainly with
cess. The North American Trust and Banking Com
paDy, those who represent ts Stockholders not
behind their Sortunats compeer in but
90 numerous and 90 large the debts, much less
privileged are the various desnces which With suds-
BILE zeal and ingenuity they have set up against pay
msDt, 80 small are the and multfArous aud
ending tho tgatcns that there is great danger
lest their only reoompepse will be In the that vr
tue 10 Its own reward. The community have inter
est in their prospects in this respect; for the deli
cscy Of their corporate should be bghtsd
by dieappoiDtmsnt We might never hereafter witness
just such cxse Impressed with this appreha anson,
purpose to pursue this inquiry little wsy, with the
imperfect means In our power
STATEMENT rnE CLAIMS OF THE CREprroRs OF THE
NORTH AMERICAN rhUsT AND BANNING CoaPASr.
let Creditors secured under the various trusts
Ihe million trust created to secure 300 bonds OF
E26o each, dated February ls4o, payable In London
1t 8 yesrs
The frat half million trust created to secure 4So
bonds precisely similar the 800 remitted abroad and
received there in May l646.
g. he second bal million trust, created to secure
400 bonds delivered to the holders about July l. lS4o
Total OF debts secured by the above trusts which
a. yet DO judicial decision has been made even to
the vssity Of The preferences which they create with
interest to February ]. 1850, So 272,.S7 SO
Jbs BlstcbioId and hurry ost--rhis Is the
the vslioiy Of which recently decided upon ad-
versely by the Court Appeals IL was created TO
tire aynent Of 4s notes. dated Nov 80 Is4o
payable AT AZ nonths with interest order Of Cook
The i.D.r OF the bank Interest to F-brury l. 1850
o. The fates and Tslnsge trust--rhis trust so far
as the prosrepce 1t created concerrd set aside
by d. ere OF Vice hsDcelor AcCoun. in 1915. IL
vas created to the payment 500 400 OF
$500 each and 4O0 Of 81 600 each dated Dec l5 ISa0
PHyhpe 10 Tue oioer OF ulooe clerk Oh the oapk, with
interest at per cent 3 months after date Interest
to February L. 1850 s45S 40 So.
ID. treditOrs not occurred by any trust,
with iDtetet 10 February LIST lsbt. So 9po COL T5
Total occurred by hTst three trusts on which
judicial decision hsr BEEN obtained. S727S7 95
Total secured by the rates trust the pre-
ference created by which Wa set ASIDE
by the decision OF Vice Chancellor .
Total seeuieo by The Bia,ebford ana MUIR.
Iay trust the preference created 10y
which set ssids by the recent dvci-
sion CT the Court Of Appeals. 3s9,2Oi 70
S72O6,o5i AZ
Deduct certain claims disallowed by re-
feIees on decteed ytid for usufy, 40, up
10 NOV L. Ioso. .....' ....'... ~ ivy w
Total claim. against the bank. .... 81 IsIss2 80
Ass,rs
The largest estimate s-set Of this institution,
claimed 10 be worthy of condolences would not make
them 81 65O 100 may be- safely assumed that
this rtmate s hgh enough. Il A. does Eot prove much
too high this si be exception to all other ssti
msies knovD OF the sss.ts ~ rotten corporations
broken hrns. IN tbe years IN which these assets
have leeD involved and siI continue To be involved
In numerous and CON piicsteo hugstious wbcn have
n.yeftbsiss hut comnsuc.d- the funds can scarcsiy
be expected TO ucr.sre fast interest Will swell
dbts areAdy hve tm.s their amounts TO say nothing
a. the enormous exp.ps.s d tua In which nftetn or
ana the alsgation testimony Of the parties form
huge printed volum.s.
Making DO slo~auce for these considerations and
taking tns sssets a. the h,she estimate they are bat
t. han twenty per c-nt the debts which have
yet bee mpesched by the d~cScn OF any court.
What chance then the stockholders OF r-si
iziDg any thipgf II the assstt sbould be distributed
within I've ten years the expenses Of the hKstons
must be hrst satsr.d then tue cr.aitors ana after
thee, etass boiaore f,r si-tributioa of
what 10 lett Even II the funds are . large as esti
mated and n they could b. X. pt from b.pg ~d
nearly four tfth- ~ In. NIL lone debts OF this
rttution must be decrerd by the courts TO be s0so
luteiy void before the stockh aera be entitled to
cent And Yet, und-r the bubble recently got up
In this stock it sold At Is per cent which, on, say
5000 GOO Of capital woulo make hat remote posi-
biity Of the tockboleers worth S45OOOO and
II sells at III per cent which would make that pos
sibiiity worth $3.50 COO ihis absurd valuation is
founded on an entire mi spprsh.nsion of tue nature
and effect of the recent decision Of tne Court OF ap
peas In the 81 the Blstcbfoid and Murray trust
well that 81 Vice hsnceior Ae ouu, Ia The
OF the atsr and isnsgs uu't la isso, sh-n nsnos,
the stock temporarily 20 Ia or ID aud afterssrds
fell TO or7. Neither 81 these decisions touched tue
validity cf the dsbis, unists incidentally TO imply
favorable opinion vent further than 20 set aside
the trust cerinca,.-. sDd tie trust which
ted pIserepcs In favor OF c.rtsin creditors over
the CtLers The quetion OF the dtty OF the trusts
howevtr uportsb A. may te ~ b-ts'eu the preferred
ans the general cr.dtosi- not of the slightest I'm
portnne. 60 the tt'okhlds who do not come In until
after the general creditors srr pad.
Even tfa question Tar the mass Of the preferred
d.ttss coic,r,ed lea. !et scarcely ontsr.d upon he
otss In which tn. ire'r~uc- la oen defeated by the
recent decision oi thee App-s ana that of Wee
Chapc.lr ouu, Ie.o affect lees than $3.50 w of
the d. BITE; viii The great not yet heard before the
lowest court ana hkey ~ tsk- years IN trAsin 10
tb. highest Involves "a ooUOoO Decides tns $4,000
under The ssco, tsf minion trust Nor 4. sveo the
ats StoUf "A a
affected BY the recent decision Of tbs Court OF ApyeA
In coD.squsbcs of the abuses which ~srs prsctised
by the UEited states Bans ana other Institutions,
smoDg vhich Of tbe free bsbks In the isus
Of pos notes In ,afouf form toe Lsgs@tufe ensetea
Nay 1sth 1s4o, that D. banking association or indi-
yidusl banker, tbsn itu. or IUt ~ eiroustios ~sy
note hiiI ssio sssocistin individual banker,
unlss the sane shah be maie ps5sbs ON demand, aud
1ks act wentirto effect June ID isso
In the Gaze IL the BlAtohford aud Murray trust re-
Gently decised b. III. Court of APy'sls. toe notes
which the trust created to feo1r- tue pay
mept Of and give currency 90 ~-rs maie On toe
the sct referred L. vent iLto sn.ct. q he curt de
esdeo fret. that the act pfohioitsd not mcfsJ the
putns into c cui.tien - money but the issuing fOr
sby psrros., a N. pot.s to Witch spplisJ aod ss
conoiy. that applied 70 the noiss Ia qu-siiun Bat
~ ord utter -ord ip psschiug h- isgsty Of such
notss isspso previous tL- time tbst sat ssst
into operation. And although ~ held thai the act sp
Iiss 10 bills 81 exchange psIstl. a. fa ute tine .,
we'd ss 70 the Totes In qnssi hon u .rp..s'iJ sdatst
the eg Atty 81 such bile before ta- act toUk snsct
Nov the nctes Ia the ge-t osss yst upsrsa-d, vsrs
mo.ty usd aud received IA EDzissd by IN, F@m-rs
uDdsr sp agreement pledsiag tb~m for advance be-
fore the act 81 Msy IAN s4o veot into ogerstion 10
focvs that N the pr-fsfenc.s cree ed b, the great
trusts can be impsschsa ~ mu,t b. on entirely dif.
fer, Mt grounds from, sny declared BY the Court "a APP
pesis IN its recent o.cisos
In respect to IA. vsay OF the debs th-re has bsss
except ~ TO sns amounts. mostly of the aoprefsrres
no adverse decision Of any court The fr-oy suit,
refsfsd 20 In the recent decision ~ the oart of Ap
p.sIs - directly involving this question n the one 10
which, In 1s41 the pjube ton granted and the re-
c-ivsr appointed In the soit On the 1T of Dc
tobsr itst order made referring this qu-stion,
~ iespects the clsims OF fsimrrs N D. n. A y. VI.
Palmer, To mater 10 take pro,fs aud report the
smooLt Que; ana en- the ssns day another orser ~ss
made providing Tor the f.tut- reiefspce 10 refre-s
., the claims OF the other PARTIES Dufiog the nearly
i've years zinc. tbsse orders sefe granted mskieg
bsGly nibe yssrs since the SITS "a. opm senc-i
the under the hrt order n vOsDs the tso
srd bait millions % dullss claimed by the P.in-rs
hs,e tep s~aitins the dscics - The controversies In
r.ssId to the preferences created by the trss- not
obe meeting TIE reference having yet been held
IL tf- to await the oecion IN the court of
lsst res,rt o. the question ~ Srst-rsBce In rgsrd 20
the ,ssty imptsbt trust not yet argued IN the
first cout bov many ysars -,ii siaps- before u si
b.sib' hen IL fs st length comneuesa proverbiai-