The sun., 1873-10-29
THE UNION TRUST DENIAL.
STILL LOOKING FORWARD TO A RE
SUMPTfON or BUSINEss.

Tho Bankruptcy Proceedings and what 10
| said by Messrs. Wesley and Frothins hs IN
About Thcm-RcaIizins on tho Securities
| for state and Othcr Overdrsns.
Wall street looked brighter yesterday
| than on Monday, and the bulls and bears we're
merrer. The stock market opened strong, and
| there a general confidence that the street"
will shortly assume Its old-time shape and
everything work in good order. Many OF the
wseacrcs who have strutted around for the
past few weeks whispering evil things to their
neighbors. seemed bcwildered. Some still in
sisted that the railroad kings and any number
Of well-known brokers were on their last legs,
and that much more disastrous panic than the
last Ia about to break out, but these gentry were
unheeded. The market was more uniformly
strong than for some time past. The announce
ment OF the suspension Of Henry G. Cross, a
broker, doing a small business, created little or
no excitement.
Mr.. y. II. Wesley, the receiver ~ the Union
Trust Company. In speaking OF the bankruptcy
proceedings instituted by william Il. Siney, said
that he had not read the petition to have the
company declared bankrupt, but empbatically
contradicted such OF its allegations as were
brought to his attention. lie was not aware
that Augustus Schcl, the Vice-Presdent, was
in any way indebted TO II, and denied that any
made To any officer uf the company for the pur-
pose Of dcfrauding its creditors. The assertion
To the Lake shore and Michigan Southern Rail-
road referred, hc enid to the $l.Sh,bn loan. the
been explained, A fnll answer to the petition
would bc made in the courts at the proper time.
The bankruptcy Proceedings resulted, he sup
posed, from an investigation made some time
ago bN "A committee protesting to represent the
creditors, whom he gave
EVERY FACILITY
for an examination OF the books Of the COM
pany. He did not know the names OF this com
mittee or whether MIR Sinev was a member Of IL.
In regard to the alleged overdrafts and pub
lshed schedule purportlng TO be partial list OF
them he said that the facts had been greatly
exaggerated. The list was full Of Inaccuracies:
As 70 T the @ @oyerdraft of c. II. and W. c. Andrews
Tor tl7s3blH, the debtors were represented TO
him "a perfectly good and the coinuany had
loan 20 them secured by railroad bonds as co-
the overdraft. The Overdrafts OF the State OF
Arkansas for ts5.il9So on one account, and
~, ,l1l % on another, were amply secured by
collatcrals. The allegation that Daniel Torrance
and associates had overdrawn f47,6gi59
nS ,hs o hhe Spnarsnt @ ds0T n ,ns case Pc
has fJSUO deposited in the institution
in another account. J. II, Frothlnrham,
tb3.D did not owe the company one shilling.
Thomas Reed n Co., who were said to have over
drawn sl9i,t5.s6, have suspended payment. Mr..
Wesley added that they had various loans from
ahe o,mpany -,, on 20 mlsceianeons & securities
yidual account had been opened for the firm
and the whole amount charged to Thomas Reed
Co. As fast as tho securities are negotiated
the amounted credited to their account rhe
the oyerdraft s'gncd 10 Mr.; Wesley himself,
amount il tl57,H5s, consisted, he said, OF
the money and accounts received 10y the COM
pany since the suspension aud charged 10 him
IA receiver he crcditlng the same to the COM
pany on his books.
OTHER oNrRuRAFrs
mentioned were fully secured by Government
bonds Mr.. Thompson, boOkkccpcr. referred
TO 10y Mr. Wesley, said that after taking from
the list of oycrdrafts all the large amounts.
which were satisfactorily accounted for. IL was
possible lcss than ten per cent. Of the small re-
mainder might not prove good.
President fruthingham said that he wasserved
with the preliminary papers In the bankruptcy
proceedings on Monday night. The petition In
tue case, lie Insisted, was u tissue Of falsehoods.
No property had been transferred to any officers
OF the company with the object of defraudlng
Its creditors, and no attempt had been made
To conceal any OF the assets. lie expected the
company TO resume business, but at what date
was still uncertain.
President Leverich, Of the Bank OF New
York, said that James n. Banker Vice-Presi-
dent OF the bank. who was IN tho Lake
shore pool with Augustus Schel and Hor-
him. which would be laid before the directors
to-day. The communication, said MIR. Levcrich.
was not a resignation OF Mr.. Bankers position a.
Vice President OF the bank, though ii related to
his annrs. Mr.. LeVcrich would say nothing CON
corning the cOnstruruon nut by the bank
directors upon the Vice Presidents course IN
the Lake shore road and the L Mon Trust Com
panys affairs in connection with MIR. Schcll and
the late Mr.. clark. II H. thought that the action
Of the directors to-day will hc explicit a. to the
confidence they Htill rvposo IN him. Tue general
opinion on the street was that the comuuniCa-
tuE ~ IN the nature OF "A defence, hut Includes
an oNcr To- resign should his fellow directors
think that the best interests OF the bank de
L4All sAtn action his part.