The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1857-09-05
Ohio Life and Trust Company.

Ohio Life and Trust Company.
About three o'clock Tuesday afternoon, pri-
vate dispatches were received in this city,
announcing the suspension of the New York
Branch of the Ohio Life Insurance and Trust
Company Bank. The news took everybody
by surprise. The Trust Company had been
regarded as among the safest and most SUBJ
stantial banking institutions in the country.
Its business here had been carefully man.
aged, and yielded fair profit. On the 4th
OF July, a semi-annual cash dividend of four
and half per cent. On Thursday last the
stock sold at the New York Stock Exchange
at within fraction of par, indicating conf
dence there. In addition to all this the wes-
tern business of the Bank continued large
and profitable. Its discount lines have not
been increased, while its deposits were not
diminished. The general business of the
country is in good condition, presenting,
ooth present and prospective, a most heal
thp appearance. Money in all the western
markets, and indeed in every market outside
OF New York Stock circles, has been quite
easy. What then, could have caused an &C.
currence so disastrous in the operations of
this institutions u?
Upon this point we are utterly in the dark.
Through public or private channels we have
no advices from New York except the bare an
nouncement of the. suspension. The doors
were closed yesterday about 2 o'clock, and
the fact was officially announced to the Di-
rectors here, by dispatch from Mr. Stetson,
President of the Bank, who left this city on
Saturday morning, in obedience to an urgent
dispatch from New York, and reached the
latter city on Sunday evening or yesterday
morning. This is all that is positively known.
But he may, We think, safely venture the
opinion that the difficulty has not resulted
from any legitimate transactions here or at
New York. Suspicious are numerous, as to
the true cause, and We have our fears, that
parties who controlled the bank in New
York have been tempted to engage in stock
speculations, on their own account, or to loan
money on stock securities, thus diverting the
means of the institution from the legitimate
channel and finding their operations grow
ing worse daily, instead of improving, finally
yielded to the pressure, and confessed their
error or crime. That this calamity has re-
suited from mismanagement, or what is
worse, breach of firth, of which the Direc-
tors knew nothing, can hardly be doubted
The Board of Directors of the Trust Com
pany held q meeting last evening, and at a
late hour we received the following card, from
which it will be seen the Bank will not be
opened this morning. The Directors express
the belief that the means of the Company are
ample to meet all its engagements, and as
sure the public that early steps will be taken
to resume business. We understand that
private dispatches were received from New
York last evening, expressing the belief that
the New York office would redeem to-day.
We hope such developments may be made as
will justify an immediate resumption both
here and in New York. We shall doubtless
receive advices that will throw light upon
this matter. In the meantime, our advice to
all is to view the matter philosophcally, and
especially to keep cool. iii great calami-
ty, not so great that it may not be overcome,
if people will act dispassionately, guarding
against excitement, and using all proper
mems to protect the credit of our institu-
tions against the prejudices likely to grow out
of this suspension.
HE ONO LIFE INSURANCE AND TRUST Co.
---lIaying very unexpectedly received advices
from New York that the office Of this Com
pany in that city had suspended this day, the
Board ofTrustees deem it expedient to close
its doors and suspend payment until they can
be fully advised of the true condition of that
office. The Board of Trustees also deem it
proper to say to the public that they regard
the means Of the Company ample to meet all
its engagements, and that early steps will be
taken to resume business-Cincinnati Ga
zette, .4ug. 25th.
The New York Herald says that the Ohio
Life Insurance and Trust Company was not
what it pretended to bet never insured any
lives. 1t was mere bank of deposit, with a
capital paid up to the extent of two millions
of dollars. This capital it was in the habit
of lending to borrowers on securities. As
its reputation stood very high tits stock sold
at IS within few hours of its failure) it was
the depository Of large sums, as well as from
private individuals who used it as a savings
bank, as from brokers who put up their mar
gins in its hands and drew small interest on
them These deposits it likewise used in the
course of its business of loaning on securities
For many years the Company did good and
safe business, and won very high character,
indeed, both in the West and in this part of
the country. 1t paid the State coupons of
Ohio.
1t advanced money to and borrowed money
from the State Bank-to which, we believe it
now owes million of dollars. 1t served as
q nursing mother to all the financial nstitu-
tons of Ohio. Besides all which, it occupied |
a very high position among our banking in
here. For many years no bank
was favored with more depos is, nor was
there any which was ADLER to loan on ade-
luate security than the New York branch of
The Trust Company of Ohio.