New-York tribune., 1873-07-24
TRUST COMPANY TROUBLES
IT'S CONDITION PREVIOUSLY KNOWN TO
CERTAIN DEP0SITORS.

AFFAIRS
The affairs of the Brooklyn Trust Company
continued yesterday about the same oohol'iou DC my
have been for several days past MT Chauneey' 'ne
ece,ve ef the Company, when applied 70 for lniorna-
MON as 10 the present of affairs replied that he had
none to give. The report OF the Examining COMMITTEE
he stated was not vet ready, and tho examination OF
tbe hooks OF the Company is not vet completed The
depositors too are very slow in coming forward with
their bank pooks for the purpose Of having the entries
in them compared with those on the Companys
ledger Some Of them, II is said, are afraid TO allow
the books to pass out Of their hands, fearing that they
will not returned, while others seem unable to under
stand why they called FOR, and so refuse to brng
fhem. The call loans OF the Company, amounting 10
ns5OoO are beginning 20 he called in. Some surprise
was expressed that they had not been called IN e"l
as tie well known that the borrowers had been no'
10 hand in the amount Of their respective loans
diately The reason why the amounts are NOT al - n
that the debtors Of the Company in TINS reSpc.'
undecided as to who was authorized 10 receive 'uo
amounts and did not wish to give away ther non''
except to some one authorized TO TeeeNe"' ,..
prouireut lawyer Of Brooklyn bears out the state
ueuts IN escrday's TRIBUNE IN regard 70 INC ieN"'
Of Mr. Chauuccy's appointment as receiver the piO
oeeaipcs I'M the matter, he stated were mereiy c'u-
or,rv and II opposed would not d" hold water seVe-
raj proceedings in bankruptcy have been begun the
hrst Of them in point Of time oelns on tne hpIc"'o
Of John ]. Allen, mentioned in yesterday tkiboNI'
The deposOrs who thus have no design OF emoar-
RAISING the Company only desirous OF securing
tberov money. In the directors sh0udresoVeoh
resumag business all proceedings against the company
y, be stopped Bat should the directors resolve not
10 proceed with the business, the Company VIII DC
thrown INTO bankruptcy, Mr Cnauncey will be deposed
frOm his position as receiver, ana new receiver WI" ~
appointed 10y the courts.
In regard 10 the funds Of the city deposit 10 the
amount Of nearly half n million, no action Will be taken
by the Controller present Mr.. Schroeder considers
AZ would be the worst thing he could do III the matter
as far as the city concerned, were he TO endeayor 10
throw the Company into bankruptcy-a proceeding
which would cause great delay and annoyance. The
Company very much blamed for having exceeded It's
powers IN acting bank OF discount which II had no
right 10 do merely Is stated to re-
ceve trust funds and them good securities such
as Government bonds, &c. policy OF insurance on
Hr Mnss life for $4,000 is included among his
property 1t is supposed that the insurance CON-
pany will bring forward the theory of suicide in order
20 attempt to free itself from the claim
The affairs of the Secretary of the Trust Company
late Deputy City Treasurer, NJ. T. Rodman, do not ap
pear TO very nourishing condition. II is thought
that he owns no property in his name for there ap
pears on record in the County Clerks Office OF this city
Judgment against him for S29sl Os which was fled in
Kings County April 10. The unpleasant mistake OF
the papers in naming j. II. Rodman the Secretary
and Deputy City Treasurer of the Company was re-
peated last evening NJ T. Rodman the Secretary and
late Deputy City Treasurer, and Thomas H. Rodman Is
al Alderman Of the Sixth Ward, who never had any
connection with the Company. ]. Carson Breyoort Is
also erroneously mentioned as a director.
A noteworthy circumstance occurring yesterday fur
nished some clue TO the value of the securities in which
Mr. Mills had dabbled Messrs. Muller, wilkins Co..
Rucoueers OF this city yesterday sold IS shares OF $1,000
each in this city, Of the New-Haven MddletOwn and
Wimautic Railroad. The price brought was $500 per
share and the market value Of these bonds seems TO be
about so per cent.
DKPOsTORs IN TIE SECRET WITHDRAWING THEIR
Monty IN TINE.
The statement that the condition of the
Brooklyn Trust Company has long been known to
certain members OF the Ring, aud that they availed
themselves Of this knowledge TO draw ont the funds
belonging them, reiterated and with particularly
Of names and dates. 10 is alleged that scarcely one Of
the Ring has large account now remaining with
The Trust Company. The Oceanic Club bears much
The same relation TO the Ring Of Brooklyn
as the Americas Club did to the Ring of this city, 1t s
asserted that not long the Treasurer Of the club
informed Of the condition Of the Trust Company and
withdrew the funds Of the club. That Register Nc
Iaughn withdrew the city funds under his charge
the Monday preceding the suspension and was induced
20 them because OF the bad effect 1t would have
Oh others is no secret.
Mr.. MuLss RAILROAD sPEcULATIoNs.
Tie Haven, Middletown and Wilimantic Railroad
extends as name implies from New-Haven 70 Will
mantle and proposed 10 form link IN the New
York and New England Road. It's length IS about 50
miles. The first section Of the rOad-frOm New-Haven
TO Middetown-was begun in 1863 and finished in 1870
The work was done under the supervision Of Edward
Lyman The length Of the first section is 22t miles.
The Company by its charter was authorized 10
Issue bonds to be first mortgage the
road 10 an amount only equal to half the
total amount expended the road After the compile
ton OF the first section work begun the second
pection between MddletOwn and Willmantic. One con-
tractor after another failed however to do the work
To pay the expenses bonds forming first mortgage had
been issued to the amount 100000 About Novem-
M svau fudu nv OTnaW
Rnanciers to look az the affairs OF the railroad.
The advantages TO be gained by its construction
were presented to him in glowing light, and
it was proposed TO him TO join In taking
up the contract for finishing the road The fancy of Mr.
Mills was attracted the speculation, and he engaged
10 Join IN the affair which gave promise OF enormous
profts poo" was formed and Messrs. Mills and
ROdman engaged in the business with man named
Richardson and others Iu the contract however, the
name Of Mr.. Mills does not appear; $4,000 was sub
scribed aud put into the "pOol" 1t was understood
that this ring was pay from this sum for the COM
peton OF the road For their work the subscribers 70
the pool we're 10 be entitled to all the first mortgage
bonds then remaining-about t25O,O0O-and also the
bonds raised the various towns These bonds formed
a second mortgage amounting TO 100000, and were
conditional be good only upon the completion OF the
road by the ring. The road at last finished and was
very thoroughly built This may be inferred when 1t Is
staed that its cost less than s200O per mile. 1t
has bridge over the Connecticut River costing S25OO
aud all the work done in the same way regardless Of
cost The $4,000 worth Of first mortgage bonds were
taken for 75 per OF their value by Mills and his
partner in exchange for the funds Of the Brooklyn
Trust Company. ROdman's Connecticut town bonds
amounting 70 S34 600 second mortgage bonds which
the road is built by the ring The
$1,000 worth Of second mortgage bonds were deposited
In the Trust Company 10 be put in the market when
the road finished In order 10 reimburse the ring
and give them in addition, enormous profits COM
ri 20 hn va