The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-07-22
THE BROOKLYN TRUST cow
PANY.
Tho Irregulari,io. Of the President

Tho irregularities Of the President. |
The whole country is again agog at the
irregularities of Z. T. Mills, late President |
of the Brooklyn Trust company, who was
drowned at Coney Island on Tuesday last.
Wall street Is in flutter over the rumor
that his death was suicide. 1t is known
that some of Mr.. Mills real estate specula-
tons resulted disastrously to bin. Two
years ago he built seven handsome houses
on the main avenue leading to Prospect
Park, Brooklyn, and but short distance
from the main entrance. They are double
houses with handsome fronts, are built in
Gothic style, finished in an excellent man.
ncr, and with the ground must haye cost
$15, 900 or $4,000. Not one of these have
been rented, and they were lately sold
much below their cost He also built a
Clinton street, between Sackett and De-
graw streets These are large, elegant
houses, costing probably not less than $780,
600 each None of these were rented or
sold. In each case the houses were I'M
suited to the neighborhood in which they
were built, and could neither be sold to
| advantage nor rented for sum sufficient
to pay the interest on the Investment.
Daniel Chauncy, President of the Me-
chanics Bank, and who is also one of the
directors of the Trust Company, and since
the death of Mr.. Mills has been President
pro tenn, says that he had been at work
with several of the directors, engaged in
examining the books and papers connected
with the institution, and endeavoring to
straighten out the accounts and obtain n
clear understanding of the exact status of
the concern. Mr.. Chauncy said that on
Tuesday last, on learning of the death of
Mr.. Mills, meeting of the Board of Trus-
tees was held and he was chosen President
pro tenn. 1t was deemed advisable to have
thorough examination made of the books
of the institution, although there was no
intimation that anything was wrong. Mr..
Mills bore the reputation of being a wealthy
man, and certainly none of his associates
dreamed of his being defaulter, or that
he had by his course impaired the capital
{ of the Company. A brief examination
! quickly brought to light irregularities, ant
it was ascertaincd that the collaterals OF
which large advances had been made, wer,
worth far less than when the loans wert
made on them, and if sold would not begiT
to reimburse the Company to the amour
of the loans.
The committee is not yet ready to re
port for the reason that it has not com
A plcted its examination of the books, ant
g its members feel confident that it will BY
3 enabled to make full report by Monda.
Y or Tuesday at the latest. 1t will not var
, much from the estimate now made of tn
s financial condition of the institution. 0
:, the loans and collaterals there are tw'
e large items which go far toward MAXIM
:, up the discovered impairment of the capi
: tai. The first is a loan of $4,000 o.
y $1,000 of bonds of the State of Georgia
S issued in aid of railroads in that State, an
:, which are better known as the BullOc
l. bonds, having been issued by Governo
Bullock.
}, 1t is claimed that these bonds were illeg
# ally issued and the state authorities G
1t Georgia refuse to pay interest on them an
& none has been paid for the past two years
&c These may, and probably will be redeeme
4. by the state, but at present they coul
IS only be sold at very heavy discount. TIL
ir New Haven, Middletown and Willimant
a Railroad was originally built to accommt
l, date local freight and passenger traffic
r Thus far it is alleged to have proved an,
st thing but success. Arrangements, how
le ever, are making, it is understood, with IL
I'd management of the New York and Ne
n England railroad company to lease IL
lie road, and, if this is consummated, IL
d, bonds may then possess value far abo,
v their present price. The estimated Ell
he bezzlement is 100000.
r. The friends of Mr.. Mills allege that IL
is available assets of the deceased will near
ID if not fully cover all claims against hi
Of and make the Trust Company good for a
ne losses.