Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-21

holders Of Union trust company paper
visited the Manhattan bank to-day, but
as no funds had been deposited to the
credit OF the company they were COM
pelled TO return without money. Mr..
Barbsrger, cashier OF the bank, could
not positively say how much money had
been paid out yesterday TO those holding
ehsegH o. ths Trtsf eotdpanS. He
Thought the araOtint large, and exceeded
half million dollars. He considered
the depositors of the company had taken
! = sensible course BY suspending until
Monday, and said they were making ex-
4 traordinary efIotts 70 Aenvsrt their seefs-
rites into money. He thought the diff
culties Of the institution could be over
come when their securities were con-
verted into greenbacks.
The Commercial says 1t was not known
that Carleton, the. secretary Of the Union
! Trtist Company WIS 3 defsulter until
! some lime yesterday evening, when his
! absence began to give rise to suspicious.
j He remained at his desk till twelve
/ O'clock yesterday, conyersing freely but
| exhibiting signs OF excitement and trepi-
! dation. He left the Tri3st com pany say
1 Ing be Was TOD tnNeil TO tefnainI and
/ desired some rest. When it was neces-
sary to consult him in regard to certain
! matters be was not to be found, and then
/ it was that the trustees began to suspect
he was defaulter. Under a hurried ex-
animation into his affairs. it soon became
certain he had bean Using securities 70
cover the personal purchases he had
made, and loans to relatives and friends
on securities, which were regarded as
very doubtful. One loan Of twenty
thousand dollars to his father, Rev.
! DIR. Carleton, OF Methodist Book Concern
notoriety, the security for the one loan
it Is understood is good, but there are
| others that are Of no great value. He
\ hzd his favorites among bankers and
| brokers, and loaned large amounts to
them on securities that it will be diff
| cult TO realize on, and this fact it is sup
posed led the trustees to close their doors
! this morning and secure time to make q
/ thorough examination into the assets
and security OF the company. 1t is well
known that Carleton has had almost the
entire management OF this great finan-
cial institution. The president, Mr..
! rockingham, has been absent in Eu-
rope since early in the spring. Carleton
4 was regarded as thoroughly honest and
/ exemplary young man. He has been
secretary Of the Union Trust company
since 1869, and the concern has grown
to be an immense financial institution
under his secretaryship. The company,
it is understood, hold large blocks of
Lake Shore securities, and unless Com
modOre Vanderbilt steps in and gives
relief, there is but little hope that the
Union Trust company will open for busi-
ness on Monday.
THE COMMITTEE OF BANK PRESIDENTS.
NEW YORK, September 20.-The COM
mittee Of bank presidents appointed to
| perfect a plan Of relief in the present
| condition Of affairs, is composed OF Fred
erick d. Tappan, @. B. Leysry, George
| S. Cole and G. F. Hunter. A special
dispatch from Washington says Seere-
| tsry Richardson leaves Washington this
4 evening for New York. A conference
will be held tomorrow morning at the
/ sub-tressury to determine what action
he will take in the matter.
A PLAN OF RELIEF.
New YORK, September 20.-ShortIy
before noon, in the midst Of the panic,
! the governing committee of the stock
exchange determined to close the ex-
/ change. Immediately afterward there
was meeting of committees Of the as
soeiated banks at the New York clear
| ing-house, and it was voted by all the
associated banks that they would issue
| certificates pledging the association as
whole, these certificates to be issued by
the manager Of the clearinghouse to
any associated bank against the depos-
| its OF the banks, securities or assets.
| The effect Of this action is to enable
| all solvent concerns in the financial
| community to convert their assets into
money temporarily and without any
sacrifice To themselves. The stock ex-
! change ordinarily is simply medium
| for converting securities into cash. In
/ the prevailing panic the scarcity of
money prevented this from being ac-
! complished, securities being offered for
/ sale at constantly decreasing prices
/ without finding buyers, except to the
enormous loss Of sellers. By the issue
| OF the bank certificates any bank can
realize money upon its assets, and
will thus be able to extend to
| its customers all the aeeommods-
| ton for which they can find
security, without compelling a sacrifice
OF the assets offered. The whole ma
| ehinery, therefore, of conversions, Is
once more set in operation, and is likely
! to run smoothly; and all concerns which
have assets will find difficulty in con-
verting them into money. This action
OF the banks at the clearinghouse meet
ing gave rise to a feeling OF confidence
on the street, that no additional fall
ures were likely to occur, and the i'm
preston obtained that the panic was
| over. The leading foreign-exehange
| firms, such as Brown Brothers, August
Belmont, and Henry Clews & Co., do
not give any sign Of feeling the pressure
of the past three days crash.
| CAUSE OF THE UNION TRUST COMPA-
EY's FAILURE.
To the too close adherence to the
strict letter of the law by Assistant
Treasurer Hillhouse may be partly
traceable the early suspension of the
Union Trust company. 1t is under
stood that the Trust company made a
last offer to the department Of a million
| fiye-twenty bonds, desiring therefor a
million dollars in greenbseks, te meet
the fierce drain upon their deposits.
The company assured the department
that as the official hour was twelve
O'Clock for offering bonds, this million
should be offered at such figures as would
| insure their acceptance by the treasury.
This private offer was not accepted, and
the doors OF the Trust company were
| closed. Other disasters quickly followed,
and the affairs OF the Union Trust COM
pany are worse than most people will be
prepared TO hear. The amount of
CARTOONS DEFALCATToN
is larger than at first supposed. 1t is
| said 1t will exceed five hundred thous-
I nd drllara The 1frankxrs f,s,
I considered the question Of appointing a
receiver. Carleton has been traced to
4 two or three different hotels in town,
over into Jersey city, from whence he
/ took the train Of the New Jersey Cen
tral railway last evening. The directors
! have made no effort to secure him; the
/ sfforCs made to trace his whereabouts
| have been maae by private individuals.
I A member Of the governing committee
Of the stock gave it as his sopinion, when
! questioned, that
! PUBLIC CONFIDENCE WAS RETURNING
this morning, and the excitement. would
I have died away without further serious
disaster but for the suspension of the
/ Union Trust company.
! By the time the doors Of the First
/ National bank of HobOken had opened
| this morning about fifty depositors had
assembled TO demand their money. The
tellers went to work and closed accounts
as rapidly as possible. The crowd mean
while increased in size, until net less
than one hundred and fifty depositors
were awaiting their turn. The deposi-
tors are making arrangements to hold
q meeting early in the week. 1t is said
/ that of two hundred and seven thousand
dollars which the bank has on deposit
in New York large share was in the
| hands of the bank of Commonwealth.
sPRAGUE NOT A DEFAULTER.
New YORK, September 2O.-It was
rumored this afternoon that a large
amount of city funds is deposited in one
of the suspended banks, and that some
county funds were with the Union Trust
company. Counsel for Ex-City Treas
urer Sprsgue, Of Brooklyn, has sent the
| following letter to the comptroller of that
city. 1t is apparent that neither
1 Sprague or Rodmsn is Gefaulter to the
| city. You are required to take notice of
| this fact. You will not therefore make
any disposition of any of the property
| transferred to you by Mr.. Sprsgue, as he
was deceived and in error. In that re-
spect, the comptroller says for the
present he will retain the property.
ALL RIGHT AT THE HUB.
BOSTON, September 20.-The financial
alarm In New York is the principal top
ic Of conversation, but so far does not in
terfere with business.
STILL HOLDS OUT.
1 xC.oryv,s,.1ony Garfav,,i,ar On = I