The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-15
EXIT TIE NATIONAL TRUST.
<ryrGED DEFICIENCY or sEvEN HUN
DEED THOUSAND DOLLARS.
rh. company iu the Hands Of n Receiver
ueport OF the Essssiuer-A startiins Ex-
hisit-Gross Mssmausseseat OF the Com
Stockholders nad1 i'stces the Losers.

hibit Gross Mtsmnnaeese est OF the COM
.,u, Stockholders nadx -l'stces the Losers.
MI william J. Best, who had for some
doysl cen examining the affairs Of the National
Tn. mpany wac appointed ts receiver yes
hrI, Throughout his examination he was
rer,ately visited byanxious trustees inpuirlnx
sat. iir actual condition Of the institution. but
Il wa. o. unit, Wednesday that he was able to
giv, any ut them definite answer. Then he
uld tom that he was about 20 report that the
Iu-it,.uou l. insolycni. The trustees werc as
toD.,li a. Thy had been assured by their Of
lecr4 ,hat the company was sound meeting
nj itc trustees was called. and on Thursday
pommii,ce called upon Mr.. Best for detailed in
formation To this committee Mr.. Best showed
hi, preliminary report. and thcy returned to the
other trustees satisfied that the only safe course
woull he to wind up tho institution without
dclay.
ic..arday the gentlemen who composed that
con .,tec applied 70 Justice Donohuc for the
rpr.iutncnt Of receiver. recommending Mr..
b., !,r the position. and the Court made the
apluinimcni. MIR d st Is To- give bonds In
SzJt.OlO. H. will deposit all moneys received
W. him. g.. cNress of f5O.0U0. in the Unitod
ST. Trust Company.
NJ Br4t snys that there has been gross mis-
management. and that the def icncy may be
Safely set down at 100000.
Tic National Trust Company was chartered
specially on the 18th Of April. 1867. but it did
lot ~ into business until nearly two years
Mtcr It, inrorp1rators were: Barnet L. Solo
mon john q. Preblc Oliver Carpenter. Thomas
u Read. Thomas A. Vyse. Jr.. Sylvester c.
pnrkhurst. Angus, Soleliac. Andrew J. Wood.
Henry Within Charles Minz,z,hrimcr, George A;
d. DARLING, Joseph Z. Orvls. Eier " .Hnugh-
wnnl william A. kobbe. Lewis J. Phillips,
wilam b. shattnck Charss s1rlnner Doyid c
ter. William ). Whitlock, Dennis VI. Fitch. John
Thu MIll AGrGh9ww} IIooleyy JrY John o. White
Thomas ": shannon. Ehensz"r y. Winslow.
ppeio, De Wolf A. ble,,ker Banks, DAME l.
Elisha A. PacESr. and George lesley. s."'' w.
For some years the business of the company
wos % ehception"lly good ana Il paid EefGq3r
until July last. The panic Of 1879 crippled 1t
moro or less, and the depreciation In Securities
Mangam has been lie Prcsidont since II began
bu-ine-s The capital Is fl.ooo9o0, ond the
trustees are also respons bic. Hence depositors
vii receive dollar for d9as. the only losers
be-, wm, +; Alien, en- J Join ii l. Neshcr.n : nNSpsISorn r
J. Haincs Samuel \. Constant George II. Shcr-
wsu Anthony ,Ruppaner, Barnet l, solomon.
Pssnl,e@aip aoR RB"W%sFi2it, VII William NJ EEyalts'
5 Ter6ell, Jabez L, Munseli q sorge 4, Fellows,
IhSmqi.s, ". shannon, ~ Alfred u, Darling YIN.
]. Loarcy, y and Hs%Ty y 'Sii"nii = "O0''' '0'''"
Appended il Mr.. Bast's rapport:
..siI.: when began the examination Of the
National Trust Company II was my expectation
t9 present YOU early this week statement Of
gr's-ed discovered many eyiden 'es of malad:
mnistration on the par of the 9ni'ers. and
CATION over broad field OF transactions, com.
picated in character. the solution of which
made necessary a minute and searching ansly-
To ascertain the value OF the stock invest
psny % has "I involved " wed sr nj deal of correspond @
snce and personal investigation.
This part Of the work is stili in progress. and
my balance sheet | am able to state now that
the, condition of the company is most critical.
A large portion Of the collatoras are wholly un-
known. and some have no value whatever As
swhole, they are % very diyersiiiSd In character
cepted. The acton OF the offi,crs in loaning
upon or Investing in such securities was In
and has resulted disastrousy. The conscqucn,
impairment OF he e cabi."l ~ nay be safely plafei
pnly in exceptional cases has the capital been
ipyestcd in accordance with the provisions oi
the fhsrer a1o section OF whiSn; as amended
tn capital shall he invested III bonds and MORTGAGES
OF sarncunIersd real estate within iie state OF New
sot of the United States Of th' STATE Or IN The
iS be- .ti f b Ss s OF % IN s ac s
.s's' =. may be required or N use o. ne COMPANY N
il, tuansss
On the 18th inst tho company had invested In
Si sIa1s 6r YSS 5ons man Of 'S be ana
ratet cities OF this State. nor OF the State itself
Instead; found 5000 900 Of the third mortgage
ar not quoted at the Stock Exchange ;s9l 900 oi
N fret mortgage bonds Of the Carondect
VA made in in 6"tober, and Which are are now Of:
& hrs e oRs Fscc k~ay ti'a Oi Msour %s and
kATh is about Is. Fifty ihousani dollars oi
g. 'lr-t mortgage bonds q the Central Pacific
branch worth s6. Seventy five thousand dol,
lars OF the fret mortgage bonds OF tue Waikiki
Valley Railroad. for which there are no quota
Iocs Of the Lake Shore and Michigan Southern
kailioad quoted at about 60. and 1913 shares Of
lhe stock OF the Missouri Pacific Railway, which
has not yet paid dividend, and which Is dealt
" only by few persons immediately interested
In tho rpai. tn. bonds and mortgages agRre-
gate 5000, the property covered by them not
pong worm ns required by law, twice the
Among the lQans have found several that
Were virtually closoi yours ago. the persons to
whom they Wore made having failed. leaving to
tho company only the coliaterals which should
have been promptly converted into cash The
value OF these coatsrals fell far short Of the
sum5 loaned upon them
haVOrthOlass tho arrears OF interest ware
added to four loans Of this class and the aggre-
gate amount transferred 10 the account OF one
Hioto'h' put hctuaiiy represented the company.
IhA TRANSACTION took place in June, 1874 the
smn sT,o1n, remain,ns open 70 'hs ..aYy The
Without interest, the coliatcrals bcin. worth
Or2SniSy mis&yt not Sd5 & than ,sS0oo o,nar
mrlueS and violations Of law. but those men
4 med will doubtless enable you 10 decide ms to
1 a