New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-22

hnadly-even if it does not promptly resume WITHIN
few days-many believe that the dstrust wnlch
will be caused thereby will involve other banks In
hopeless ruin.
The suspension is now known to have been the
consequence of causes more serious than were pre-
viously supposed. Carleton's defalcaton will
amount to at least $4,000 and the belief is that
il il greater The call loan TO Lake Shore Of S75O
600 was made in order to enable that line to pay Its
last dividend of -four per cent, which, it is settled,
was fictitious. The road had only S2jO,OO OF the
$30OO0O0 voted as dividend, and borrowed the re-
mainder The call for its return was disregarded,
and Commodore Vanderbilt declined to repay the
loan. Another loan of S9OOOOO to Mr.. G. G. Will
ams one of the directors of the Union Trust is de-
clared to have been for the benefit of the Van
derbilt party, who are responsible for its return.
This makes a total of over S3.OOOOOO of Trust Com
pany funds locked up by the Vanderbilt clique OPP
erations. OF all the demand loans called in, only
100000 have been paid.
Before banking hours on Saturday the Trust Com
pany offered to sell Gen. Hillhouse $l,0OO,O)J OF
bonds at the lowest rate which might be bid at noon
of that day. but the Sub Treasurer declined To buy
the bonds of the imperled bank on the ground that
he had no authority to buy bonds at private sale.
A leading director of the bank yesterday, stated
as follows to a TRIBUNE reporter
The Union Trust Company ia managed by an Execu-
tive Committee, which weekly and is rule by It's
bylaws has practically met every day for the last
year. for members have been at the Office daily. The
loans are all made by this Committee and reported 10
the trustees at the monthly meeting II any nJudcious
loans made during the month, IL was then rather
late any objections by the trustees IL has been the
ordinary Of doing business There can be no re-
SUMPTION today There be a strong impression
IN
the the Union Trust Company, and that will
resume payments a strong position no later than next
Saturday.
A call loan of 100000 which was thought to be
doubtful was paid yesterday and Others will proba-
ably come in to-day.
Mr. rockingham, the President of the Company,
sailed from Liverpool on Saturday. No dispatch has
been sent him announcing the disaster which has
happened to the institution and he is supposed to be
wholly ignorant of it.
Augustus Schell was visited by reporter of The
TRIBUNE, last night, at the st. James Hotel to
which place the gentleman had retired from his
residence to secure quiet. Mr. Schel apparently
very depressed even, as an associate who had seen
him during the day had remarked, ." broken
hearted
"Wil the Trust Company's Office open for bust
ness tomorrow, Mr.. Schell ?" asked the reporter.
"No, Sir. Iregret to say that 1t is impossible for
it to do So" he answered, with sorrOwful smile.
when will the Company resumed"
1T is impossible to say, everything depending on
the calling in of loans. When we suspended, it was
with the expectation of calling in sufficient loans TO
be able to Monday, but the closing of the
Stock Exchange dsarranged our plans. The Trust
Company will not open until it is able to with
ont again fatering 1t would not do to be obliged
to close again"
as there any doubt to the Trust Company's
being in a condition eventually to resumed"
1--WE cannot tell. but hope not"
John V. L. Pruyn of Albany. one Of the directors
of the Union Trust Company in answer TO a question
whether the Company would resume this morning,
said that would depend whether the Lake Shore
people paid I'D their loan, of which there was very
little prospect He said that the suspension of the
Company was owing entirely to the loan of Sl,750GO0
to the Lake Shore Railroad to enable them to
pay their dividend The railroad put their
consolidated bonds the market and they
met with a rapid sale. the proceeds of which
were deposited in the Trust Company to liquidate
the loan but when Vanderbilt became Pres-
dent of the railroad he said 1.-THE bonds selling
too low and that should be sold at less than
par The people would not buy them at par, and
thus the sales ceased and the loan of the Trust Com
pany remained unpaid. Mr.. Vanderbilt went down
to the Office Saturday and offered to deposit securi-
ties for the loan. but what the Company wanted
was money and not securities. Besides, ! am in
formed that his securities were not by any means
sufficient to cover the loan Whether he will Do any
thing better for the Company tomorrow don't
know.