The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-08

L uHwuuhiC ucOuLCu . PEI CVust VIZ
understand that the directors Of the Michigan South
ern Railroad Company have proposed to the holders
Of 100000 Of the old stock that If they will pay In
100000 in cash, they (the drectors) viii cancel the
~. 'ck and give them mortgage which will give a
nro,A over the other holders of the common stock
Il il also proposed to the holders of $780,
GOO Of the DR. ferred stock that il they will give
5000 900 in cash the directors will give them mort
gage giving them pr,rity over the residue Of the
holders Of the preferred stocS and of stock
The question to be considered in this matter Is the
right or authority Of the Board OF Management TO
make such an arrangement, as sn the stockholders
cannot come into this proposition, and it will be
difficult to make selection. This company has
been subject to so many financial schemes that we
are not surprised at any new one that may be pro-
posed.
The exchanges at the Bank Clearing House this
morning SIS Gal ,3l7 3d. and the balances paid
were $7O4, 465 81.
The Metropolitan Bank now receives the notes Of
the Bridgeport City Bank on deposit, on the same
terms IA the notes Of the other Eastern banks
Morris Ketchum, Esq, transfer agent Of the State
of Illinois, gives notice that the transfer books OF the
State will close the 18th inst, and remain closed
until the LIST of January preparatory to the payment
of interest due on that day.
The Delaware and Hudson Canal Company have
declared semiannual dividend of four per cent pay
able on the 26th inst.
We understand that although the prospects of re-
suscitating the Delaware, Lackawana and Western
Railroad Company were 80 fattering at the meeting
of the stockholders about week ago. there is now
great reason to fear the road will yet 60 into the
hands of the bondholders for few creditors holding
claims to quite large amount still hold out and
unless they come into the arrangement speedily, the
committee having the matter in charge will abandon
it, for they getting much discouraged
The Assistant Treasurer reports today as fol-
lows:-
Total receipts. s1oo5l6 o.
payments Observation-Disclosures. 1882 AZ
balance. $500 $50 95
The receipts include s67 900 from customs and
the payments include 500 900 California drafts.
The bank returns to- day show a continuance of the
same movement. The aggregates of last weeks state
ment compared With those Of the week previous show
the following variations:-
Increase in loans and discounts 1861
Increase in circulation Observation-Disclosures. 342l7
Increase in deposits, actual. ............ 136995
The total specie reserve reached the large sum of
twenty-six millions of dollars. This amount must
be dead weight upon the banks they would very
much like to get rid Of The shipments to Europe by
every steamer will take off large sums, drawn from
outside sources but this will not relieve the banks
any. Until resumption takes place the
banks will keep up their specie reserve. The
deposits have not increased much for the
past two or three weeks The total is now smaller
than during the week ending November 81. The
discount line is larger than it has been ut the
close Of any week since that ending October IL; but
we do not look for regular weekly expansion until
the dulness and stagnation Of the winter months
have passed. Nothing is said or heard of in any
way regarding the resumption of specie payments.
The returns of the Clearing House show almost
daily increase in the amount of specie used in
the regulation Of balances, and fast the country
money is provided for the banks Of the city will be
compelled to use more and specie in the ad-
| justment Of accounts at the Clearing House. The
suspension of specie payments Is now more nominal
than actual The banks pay specie over their own
counters for bills and small checks and the commu-
nifty gets along very well with that. When business
revves it will be difficult natter to carry
the operations of trade without general resump-
ton.
The management of the Ohio Life and Trust Com
pany are trying to shift the responsibility from each
Others shoulders. The President and Directors are
making an effort to make a scapegoat of their cash
Ter. In his specifications Mr.. Stctson, the Presi-
dent makes the following charges
The causes which have brought the company TO nso
vency wholly owing TO the unauthorized and dsas
| trous transactions Of the cashier in New York.
In his dealings with and large advances to the Glove
land and P,,sburg Railroad Company to aid in the
pletion Of said read This account has not yet been
| adjusted.
NJ ~. wall her. A.
1 State securities,
O. In the depreciation Of stocks and securities held by
him collateral 10 unauthorized loans made by him In
| New York.
These are the prominent items and the loss sustained
on them alone will fear be of sufficient amount 70 alb
sorb the entire capital Of the companywo millions OF
| dollars
The authority upon which the cashier in this city
acted is as follows:-
| ONO IIss INSURANCE. AND TRUST COMPANY,
| CINCINNATI, Dec. ~, 1856. J
| Mcssrs, -, New York. am authorized by tho
Board Of Trustees Of this company TO assure you that any
cashier Of this company New York, are, and will be,
recognized by this institution and assumed to the full OK
| tent Of any such liability. C STErsoN, President.
Nothing has, we believe, ye< been shown to the
effect that the company's cashier acted in any way
in opposition to the views and wishes Of the Board
of Directors. All the loans made, all the securities
taken, were with the consent of the Board; but
unfortunately there little practical knowledge
among them, that after all it was mere matter OF
form and the companys agents here were considered
the best judges. II is pretty generally known in
Wall street that but for the financial skill Of the
cashier in this city, the company would have failed
months before. We want very much report Of the
entire operations Of the concern. We are not dis
posed TO admit that the transactions In the New York
Office alone were the sole OF the collapse The
company's affairs are beyond all question in an
awful condition. and were bankrupt long before the
SUSPENSION but the stockholders not disposed to LET
the Board OF Trustees of easy as Is imagined. There
IL no doubt but that the company was past all hope
before the Office in this city went into the hands OF
the last cashier. Throughout the whole Of his adj
mnis,ration II was ono continual struggle to keep
the company above water little longer.