The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-25
BROOKLYN TRUST COMPANY.
What Was Done BY tho Direetors-An Interview
with D. p. Barnard-The Affairs Of the
Company Should Be Put in the Hands
of An Asxignss-What Brook
lyn Lawyer Has to Say.

The meeting OF the directors OF the Brooklyn
Trust Company on Wednesday evening and 30
much OF the action thereat as was given to the
public through Mr.. Chauncey were the prevailing
topic OF conversation yesterday In circles afected
by the suspension OF this company. The burden Of
the talk not very creditable to the directorate.
The general impression is that, II the company is as
solvent 1t Is represented to be, the directors are
wealthy enough to guarantee the deposltors and
by this means resume payment ut once. Their
comparatively timid action has strengthened the
supposti0n that the worst Is not yet known, and
that the affairs of the company destined to 60
through the hltering ard eliminating process OF
bankruptcy In support n this view Is the Ming Of
q new petition In bankruptcy, the main points OF
which are given below. II IL said by those who
have o right to know the significance Of their
statements that this Is the only way In
which depositors will ever obtain cent
of their money; and further than that 1t is also
said that there Is an Injunction granted by Judge
Pratt, restraining the directors from paying any
money out. AL this Is. II true, very gloomy, and
looks very much as though the Brooklyn Trust
Company would follow in the steps Of the Central
Bank, whose affairs arc still In bankruptcy.
AN INTERVIEW WITH Mr.. D. p. BARNARD.
reporter OF the HERALD saw Mr.. D. P. Barnard
yesterday the attorney for the petitioner In bank
ruptcy, whose petition Is given below In course
OF conversation as to the affairs OF the Brooklyn
Trust Company he said that he regarded the petit
ton Of Mr.. Allen as collusive, and that 1t
was fled In the interests OF the directors,
principally Of Judge McCue and Mr..
Kingsley, and that It was to prevent q
full investigation reng made. He was more
convinced OF this by the manner of the officials at
the United States Clerks ONCE who did oil they
He believed that the petition he had filed would
take precedence Of Aliens, because it rected the
dsyOthe day Of Mr. Mls dea.h, and When the IN
stltution was bankrupt. The turning over the
affairs OF the company to RECEIVER was In itself
court , Judges s, who a. was thought YOU'D would
ors would be mistaken, for, II necessary. pro-
ceedings would be commenced In the United
tnd out the real state 81 atiars was to put the
affairs Of the company into tine hands OF assignee
in ne ssd that he had
pay their deposit0rs in full The Central Bank did
that But, surprising they could, they have no
power as there Is an Injunction to restrain them.
TALK WITH BROOKLYN COUNSEL
AHEs4LD reporter yesterday had an interview
Bar concerning rumor aflOat on the street
to the effect that the measures taken
to place the Brooklyn Trust Company in
tain depOsitors and others. The result Of "the
talk''was In substance as subjotned:-"ln CONVEX
nus a cef t 5e gToGS t
petition now on file with the Clerk OF the United
States Court, drawn up BY ex-Assistant District
Attorney John Allen, Is not satisfactory to them.
In other words they are desirSus OF having the Pc
titiOn eman0te from another source and IN order
to effect this end they propose to antedatc the act
OF bankruptcy on the part oil the 1rus Company
by having some depOstor come forward and make
allidavit that upon Information and BELIEF the ins
prior 10 the making out Of the petition now on file.
Can you inform me whether such a movement is ON
III am not connected with the case in any man.
Der, but have heard OF such petition as being
20 s Weh ay Us o as % s
fairness, or bias at least, In the present instance
in the minds OF some Of the depositors. For my
part. however, should say that 1t would be rum
Gus policy on the part OF the depositors to seek to
place the institution In the position Of bankruptcy
payment for an indefinite period. Tne receiver
wno IS g@ary ~ the sas Court
TO supersede him. and legal tits would fol-
low, so that Il might be months, even
at IN the premises. BY all means, III my Judgment,
through tne receiver Is the shortest way Oi uepos
os amer sI Wer to
the company was nsOlvent prior to the Hing of the
present petition (Which Is regular), do not doubt
but that they would take precedence, however"
"What would the appointment OF an assignee in
bankruptcy in this case be WORTH think your
sand dollars. not less No aarm Should be 'T felt.
The stockholders are all compelled to make good
the amount OF their stock to the depostors and as
they are capitalists and men OF good standing in
the community can see no cause Tor Alarm"
THAT may all be very true, sir. The amount of
great but at the same time individual depositors
whom talk with naturally ask, why put OF the
payment OF our money land then promise to give
us but hity cents on the dollar until the 11tn OF
August p Why not pay today Why prevaricate,
when there can lie no reasonable excuse given ior
sucn a course ~
at Is essential that the receiver, who is strictly
honorable man, should be III possession OF all the
facts, figures and account books oil the depOsitOrs,
been set down as August IL. You see the direc-
tors desire to do justice to all PARTIES"
who Inns "y nomeye t Of Sf Du' ,aen hc
lew short days ago they regarded as available
funds very naturally 'gingerly' accept the patent
tainly the experiences OF the past few years have
not been OF character much calculated to inspire
any extraordinary confidence in men in position,
when 'selI-interest can be clearly shown"
"Irue, indeed but the depost0rs are safe in this
instance. The stockholders will hold meeting
SHORTLY and discuss the case in all its bearings,
when other measures may be devised"
THE SECOND PETITION IN BANKRUPTCY.
Company was died in the CLERKS Office Of the
United states District Court yesterday by ID. p
Barnard, counsel for Henderson Benedict,
creditor OF the company. The petition Is as fol-
Court tho United states for the Eastern District Of
The reution of Henderson Benedict OF the city Of
Brooklyn In the county OF Kings and state OF New York.
respectfully shows that he is creditor Of the Brooklyn
Trust Company who for period OF twelve months next
preceding tic date OF the filing of this petition has
sd on 5asne at the city OF srSokn county q Kings
said Brooklyn Trust Company is a corporation
duly created under the provisions OF act
OF the Legislature of, tho state OF, New York.
That your petitioners demand Is provable against the
said Brooklyn Trust Company in accordance with the
provisions OF the act OF entitled IAN
bsh uniform system OF bankruptcy throughout the
United ststes, approved March 1856 that nc believes
the said Brooklyn Trust Company debts to an
amount exceeding the sum o $50 that your petite
ers demands exceed the amount OF $50 and that the
nature OF yorr petitioners demand against the said
Brooaym irnst company Is rs ioiows;-nphat on
your petitioner deposited with IN, said Brooklyn
trust Company the sum Of S75J; that between
Che said I7hdsy OF May, A. D. 1873 and the 10Th day OF
July A. d. 1873, petitioner has received from the
said Brooklyn trust Company the OF s32l account
OF said deposit; and that there remains due and
owing to your Iettioner from the said Brooklyn Trust
Company on account thereof the sum OF $3.50.
Ard petitioner further represents that within six
calendar months next preceding the date of this petition
the gai Brooklyn Trust Company id commit an act of
bankruptcy within the meaning OF said act.to wit
peIiod Aforesaid and within said distrct--to wit,