The New York herald., 1873-10-28
Settlement Of the Debt Due the Union
Trust Company by Lake Shore
Basis Of Settlement.
What Prominent Bankers Think Of the
Action of Commodore Wander.
bilt in the Matter.
Glittering Generalities ON
Resumption.


Yesterdays happenings, however. win 90 great
way towards reassuring the tmid, although the
stock market is everything else but steady. The
GREAT EXCITEMENT THE DAY
in Wall street was the settlement effected by Com
mod0re Vanderbilt with the Union Trust Company
OF the money due to this institution by the Lake
Shore Railroad Company. The amount due by this
concern to the Trust Company is l,S09,o79 49, and
the failure to pay that sum on being called In at
the time the panic commenced was the cause Of
suspension by the latter.
The debt was incurred by the late President.
Horace Clark, and is stated that the proprietor
Of the three great railroads "knew nothing at all
about the matter until he was elected Clark's sue
cessor." But as the present President ofthat road,
he felt in duty and honor bound to Iquidate all
just claims against the same and for this reason
he has given the notes Of the Lake Shore Company,
secured by Harlem Railroad stock placed at 90 and
Central Railroad at 70.
THE BASIS OF SETTLEMENT
thus efected was consummated at an early hour
yesterday morning. Commodore Vanderbilt hand
ing Mr. Wesley, the receiver OF the Trust Company,
notes payable in "three," "six" and "nine''
months, dated October "a 1873, and
bearing interest at the rate OF seven per cent.
The smallest denomination was for $45, COO Mr..
Wesley states that the Commodore was very
anxious to take care OF the interest OF the Lake
Shore road and at the same time he was desirous
to help the Union Trust Company to resume busi-
ness at the earliest possible moment. For this
purpose he pledged his own securities as COLI
lateras at about twenty per cent below the present.
In case the notes are not paid the following bind.
Company by the Lake Shore Railroad Company to
dispose Of the securities, without any formal or in
formal process Of law
sssng ana The Ss aae s sS s
MfhsSR Southern oras Rsswy P
New York Interest the rate OF seven per centpef
SEs$ss vIs1eu s' ~ 's
.$SssiSy expressly waived and spsa such sale sSs
pany, and any surplus arising from such sale to be
s q Ns% sna
the
nPSn
nns bsk Shore aba MSRsHa siway
So far, 50 well; The settlement Of this debt will
G1 e an af '0~araS ne'pns 'nS Union 'uA' company
inasm,s.. 40 .uy hptes 0rfMe Lake Shore Railroad,
SO we'll and amply secured, will readily be nego.
tiated, and, with the newly pledged capital of the
stockholders OF the Trust Company, which is stated
to be very large, every liability OF the company
The answer to the inquiry when this august event
is TO happen was that ''as soon as the arrange
ments could be completed, perhaps In about two
An interview with leading banker was had BY
present state of affairs in general and the resump
tion OF the suspended houses In particular. The
who stood the crisis without ninching and paid out
dollar for dollar when money was worth three per
IN rerard to tho settlement or
THE LAKE SHORE NDEBTEDNESS,
Although / am not particularly partial TO t.
old Commodore and take very little stock
in his operations, I cannot but say that
able to the great institution OF which he is
President. The obligation OF 81, 100000 was In
we s a te S
men were antagonisttc to each other, and the
statement that Vanderbilt knew nothing ABOUT
sequent to Clark's death Is generally credited as
being strictly true. Since the loan OF this money
lated, and according to the settlement amounts to
date TO &59,979 80. This large sum very soon rolep
in this case In regard to the Lake Shore Railroad
ITSELF let me say that in my opinion 1t VIII readily
shs ade a ,ns a %
the notes are secured Let us assume that this
railway company will not pay dividend for
year, say at eight per cent, on s5oooo,0o0. "a
Debt et G1sG G0s Union '1hs trust Company only ss
Possible loss BY speculation Of managers say 10000
Add icr possible floating sebt e which has been o c
Total $40. 100000
This is as bad statement as can well be made,
and would show the stock to be worth eighty cents
on the dollar II is now selling at sxty-two. Ss MOI
other first class railway security Is In the same
ITO what do you attribute the depression, then |"
"There is a Certain class Of men," answered the
banker, "wh0 come On the street gfted with more
brains than means, who get up
FICTITIOUS BARTERINGS,
selling in stocks what they 90 not possess. this
by hundreds-even thousands. These men band
together, make up corner" % in IN such stocks as
sens BY Ss q Their rates
wake Of the large dnny tribe, and while their in-
nuence for good Is Of very little moment they act
traced the depression OF every financial interest Of
the present day. but fortunately every day affairs
become brighter and more cheerful and an early
shadow Of q doubt" psA0''SS''1 "''"o1'
several other financial magnates expressed simt.
lar views on the monetary situation.
THE cHEsAPEAKE AND OHIO RAILROAD,
whose coupons on SIS. 900, 600 fail due on the 1st
paid on that DAY, provided the directors respond
as promptly as one OF their number has already.
TINS cda mas offered ss to
stated that the reported embarrassment OF the
company is due to the fact tnat considerable work
ing an additional line from Mount Sterling to the
SANDY, which will add materially to the efficiency
OF the road 1t IL proposed to fund the oating debt
OF ssoOOoO and some OF the future coupons Il the
consent OF the bondholders and other creditors
can be obtained. The bonds In circulation amount
to about SIS, 900 900. The following gentlemen COM
pose the Board of Directors:--A. A. Low, @. p.
Huntington, William IL Aspinwall, David Stewart,
Jonas G. Clark, william White, Jr., and william b.
HATCH OF New York; Pliny Fisk, Jr., OF New Jersey;
william q. Wickham and John Echols. Of Virginia,
and II. O. Parsons, OF West Virginia.
PEAKE, 0PDYKH a co.
This firm makes the gratifying announcement
that after brief suspension, they have again re-
sumed payments and active business. they have
obtained the short extension which they required.
A MILITARY COURT AT PORT MONROE.