New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-15

WILLIAM J. REST MADE RECEIVER OF THE NAiioNNA
TRUST coMPANY-Tlw TRUSTEES OF THE o"inN-
tai SAVINGS BANK ASH THAT 1T BE Wound ",
William j. Best was made receiver OF the Nati"i"'
Trrst Company Yesterday In his report to the bahN
Denartment he states that there have been lFregu-
larities and violations of tho charter aud that III
nsrcnts in railway securities impaired the capital
$500 900 The Oriental Savings iank VIII "'
closed at the request Of its trustees The causeS as
sored arc depreciation of real estate on which
money had been loaned, and the withdrawal Of de-
posts occasoued by the hard times
CONDITION OF THE NATIONAL TRUST.
GROUNDS FOR TUE APPLICATIONS FOR RECEIVER
EXTENT or TIKI BAD NEUTRALITY-SUSPICIOUS.
LARIrIEs AND VIOLATIONS OF THE CHARTER
a petition signed 10y Judge VIM. F. Allen, of
the Court Of Appeals Samuel ; Constant yicc-Hesd'nt
OF the National Trust Company ana Joseph Lowry
one Of tho Executive Committee stockholders each
TO the excn; dfty over was presented On
Thursday 90 Judge DonOhuc PRAYING for the ap ointment
OF William f. Best Is receiver Of the company Ihey
give as reason, for selecting hun, that tho OK
animation in which he has been engaged has made
him thoroughly familiar with the companys AFFAIRS
and that n the company il wound up It
may be necessary t. have in the confidence o.
the Bank Department receive tho 100000 deposited
there and apply It. The petition sets forth at great
length the organization OF the company It's deposit OF
reguir1ftg declares that The company has received
,Ieposts which ara usually pail demand though
under It's charter il Is entitled to ten days notice; that II
has recently ayaed itself Of this privilege aud has re
ccived notice Of withdrawal o. r7eOOoO the
FERNS on some Of which will expire Sa'nr'
day Oo-dlyl and all vIthil a few days :
thaf the deposits are ~ 100000 that The company
hns not enough on hand TO pay all demands. or in sccui-
tics which can readily turned into money, and the
company goes making payments it, funds VIII o.
quickly depleted, causing mequitaole preference Ill
favor OF the dcpOsors who come first and leaving U
company unable TO pay deposits on demand OF NOTICE.
which will render the company. IN law lusoiFeH.'
On this petition judge Douolue granted an order to
show cause VIII, receiver should not be appointed re
turnable yesterday The com 'any appeared Dl ',lSe
yesterday and did not object 20 q receiver J"'@'
Donohue appo ntod Nj Best TIE order is N the usual
form and gives Mr Best tho usual powers Of receivers
He is required give bonds ia S2o0Oo'' aad 10 pay "l
sums in lis bands over $4,000 into the United states
MIR BEsTs REPORT
Tho following report Of tho condition OF Inc company
in which seriou, charges of acknowledgement are naie
was sent by 1r. Best 20 Albany yesterday:
NAuoN,l Trust COVrANY oT THE CRY or
NEN-IORR. Nos. 26l AID 203 BtOAp-(
wAY. NLN-Y OH, Dec. Il, 1877.
SIR: when began the eT'Ul!nato on Oh ihs G"m.ai'
it was my Expectation 70 prc.eu, yog early ,l wee
proQrs .sed. sc0yercd many evidences ~ mdiumla
rston on the part Of the Sif ao Owe, "S brosd d
Of transactions, complicated IN character tAr solution on
OF the accounts Tor period OF several ycar..
Toascerian the value or the stock investments Su %
deal of CORES poudcrcc and per oua Investigation This
prt Of the work s stu ID progress ana my at!' 10.
short time the completion 81 nN "iilSr au',', ! AN ~
able 90 state ,ha TIE condition % the COMPANY Is
most critical. and demands immediate action upon your
IN part at-' portion oi lr ,D'., s,i, are N'S ,Ic
nj known and some Eay. no 'Hdr |AateNe, ~ "Ive,
never shout. have been accepted ., e..
The aci ~ ne vicrr, n loaung or Investing IN
Ct.auH TICS n. IA
tho company. and has resulted "lsa5'!ously. lhr con-
at not lc. jnsn 100000 Hence is clear that only IN
exceptional cases has th. c;lja been invested ia &C
cortancc with The groysons 81 me tI,,f sLG,i,n
whitn amended Apr $50 provides aa low, +:
90, md, real csgt, within Tire state of Ncw-
Yors Worth doub tine amount 'ned thereon. or ~ i-'
SiSSs ~, bd ~ Inc Iaroruor.cl cites %. th, stal.
autloris T.. be- ssued by lc L--.siiure. or u su.A
pan, In A., cree i.n II q sulc building w4.I 10
carr on to business.
BAD Is INVESTMENTS ~ RAILROAD BoNpS.
On the i,h inst. the company Lad iuye,t.: DID caa-
States bords less than 100000, and possessed no
sto 20 or bands OF the inc0Tp rated cities Of this state
TIE :, e Itself. ln5ie.d f1aud 100000 Of the
Thru ulrt-,.-o bono, Of tn Missouri Pacific Railway
Compcny b'ch are quoted 81 tLc STOCK Exchange:
Se1 600 OF tae frs, mortgage bonds pt the Clronl--c
Branch OF tho same I'st upon which default was
made IN October. aud wni,l are now offered at -;
&1OOo9O 81 tle southern Pacific Railway OF Mis-
sour lana sAH' ,oNs , ~ Oh bonds jhe mafa-t
gagged bDBJs = Cenua Pac.h. RlIiIo4! u California,
san JJJQ .u valley niaAth, F,.Yth S. $4,000 ~ Tine
frs myrs', 2 1 tt, lki Valley i'r
Railroad, quoted about 80; ana So sLar.s Of
stock Of the Missouri Pa rfc Railway. which has mos
vet PAID dividend an winch Is dealt in Ouy hy few
persons iHlae iilicl} lSercstet ia tac rod.
Iic bonds dul io Agaga aggregate Tt6OOp tle prop
crty covered by ihc .6not beng worth, required by
law tge n ra S i9 19a A eo-d y ycd 13as
TIE persons Eyhom they were made having iuied,
leaving 10 conpauy only the Outerdis, winch chou
of tAess collateral. T. far snort OF the sums loaned up IN
them. heyertIecss, the arrears OF interest were added
iOur loans Of TINS class, ana IN 20 SrtSalt amount
tIeaeeTTcd To the account or ono Individual VINO was
no ? .ulariiy Interested therein, bat actually Tene-
scented ~ company.
I9'ls ,rsiclon took place ia june 1874, the account
IL - $40 H. without interest, tie COlatCrts being
worth uOdhy u0t more than $4,000
ni aid 10 t4is summary 0ihdr Tregul @lueS ana
viOlat OF law. but those mentioned Will doubtless
o"a', u decide the measures necessary To be
GdOplc ~ meet the present cNigtucy. In closing WISH
10 say IN behalf + many OF the trustees that. from
not cugnzant - the transactions referred to. Indeed.
several of hem have expressed their great surprise and
indignation on account Of the mlsmaDagehcnJ which
my examination has revealed.
have the honor TO remain, etc, respectfully your
WILLAA J. BEST Special Examiner
TO lie dry J.. Lamb, esq, Acting SI erutvudcut Bank
q. lag Department, Albany, n. Y.
WHAT NATIONAL TRUST OFFICERS SAY
THEY EMPRESS A HOPE THAT THE DEPOSToRs
WILL BE PAID ~ PULL
y. r. Mungam, the president of the National
Trust Company found last evening IN The midst OF
his family at his elegant residence NO 20 West Flteth
81 He was Very much dsuclued to speak OF thc affairs
r.fs.fs..f