The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-08-26
Vas CoSnAs s.O<aAeai u Ossr FanAaStAl
TroubleS.

Tr0nbleS-
The failure Of The Ohio Life Insurance and
Tfust Company, On Monday, began to produce
its effect yes cray in Wall street We refer to
TIE money columns for detailr aud wall only OBJ
serve here that no event has created such SEN
sa.ioa in sur mooeyed community since the
Schuyler frauds
The Ohio Life Insurance and Trust Company
was rot what it pretended 10 be: il never insu,ed
lises, Ii was mere bank OF deposit, with a
CAPITA paid up 10 the exttnt CT tao millions Of
dollars. This cspita' it Wa in the habit Of lend
ing to borrowers On securities As its reputation
flw houls Of its allure, i: was the dcposltsry Of
large Gums, es well fom private individuals
VITO used 1t az savings bank, az from brokers
who pni up Their margins in its hands snd drew
s small Interest thereon. These deposits i! like
wise used in the course of its business OF loa1irg
on securities For many years the company did
a saie sld good business, and won yecy high
character ind I'd, both in The West aud in this
pat q! the country [. became The transfer
agent OF The State of Ohio and of various corpo
lations within that State. Ii paid the State ecu
pens. 1t advanced money to and borrowed from
the State Banh--to uhica. We believe, it now owes
Il million OF dollars. II served as Nursing
mother 10 all the financial Institutions Of
Ohio. Besides all which, it occupied very
high position among our banking Institutions
heie. For many years no bsnk WAS favored
With more deposits, nor was there aoy which Was
ablor to losn ca adequate sccuri:y tran the New
York bralch Of he faust Company Of Ohio.
The causes CT tie failure have no yet bsea
made public IN an official shape. Bus il is gcce-
rally understood tina; the Institution lad involved
Itself in railway securities which too sudden
decline bad enormously deprecated. Il is said
that the company made advances t. the Slate u
Ohio 20 cover the late dCIaiCatious in tho State
:rcaswy. IL is rumored that the htanch ct The
cocctrn a! Cincinnati has been embarrassed FOX
some time, having involved Itself IA various ed
ventures which have MT yet pGoye,l lucrative.
Ard We likewise hear of specusiions entered in
70 here ty officers OF he corporation which have
tura,d ont disasirously. But, Whatever truth
thc.c may be IN !hesc Iu.no;a We arprciend that
when Inc Guth comes to be Lnoan ii viii DE
the rash advances made by the company or rail-
way bonds and stock.
For the past twelve months we have at regular
intervals warned ihe public that such Disasters as
this OF The Ohio Trast Company were inipcud
ing, and might h upon us at auy time.
J; was perfectly Obvious tia. tue mo
ricut stringent Enuney market concur
led in point of time with cnlbarrass-
:ncnt ii two cr mere prominent railway coinps-
mics 4 crisis would cnsuc: and. us We are quite
satisfied that the bulk Of the railway 1ompaai4s
IN IAistcIce =! lie present time agc either actual
ly or proximsteiy iasoiyent, we mad no hesitation
in predicting very severe decline in that class
Of property. whenever the above conditions we're
iaiiiled. We therefore urged, repeatedly aai
earnestly, al. trustees and guardia4s Of widows
ard minors, all poor persons, aud country farm
cis, all those, IN & wofd. to whom i peculiarly
loss would 10 q misfortune, 70 make haste to re-
al2e whatever railway securities they held and
10 invest lncir money IN securities attended by
ltss risk We feel deep satisfaction Ia kaowng
that cur advice has in many Instances bgen fol
loved. and that hundreds OF wido vs. ard orphans
and poor farmers owe 10 their good ais Gicnt in
selling out, their salvation from what wou|d have
be,n ain 20 them to-day.
IT will take DAYS and perhaps weeks to ascer-
ain exactly the ELECTS OF the failure OF the Quo
Trus; COMPANY. We sec already how macy fail
ures 4 ha1 caused here. II viii DO wore in
Ohio; indeed. it il impossible to measure what
vii! b. is effects in that State, OF which The
pany was, 50 TO speak, the financial heart. Blu.
they must j.. disastrous 10 the extreme.