The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-15
A Receiver for the National
Trust Company.
DISASTROUS AND ILLEGAL LOANS.
Dissolution Of the Oriental
Savings Bank.
ARREST OF THE CLAIRMOyTS PRESIDENT.
The Time Of Trial for Holders OF
Large Securities.

The affairs OF the National Trust Company whose
Offices are at the corner Of Broadway and warren
street. have been placed in the hands OF Mr. W. j.
Best an receiver deficiency In the accounts OF the
CORPORATION being estimated at $500, 600 On Wednes-
day last Mr. Best in the capacity of Special Examiner
OF the State Banking department. informed the trus-
tees that would be his duty TO report unfavoraby
OF the concern TO Superintendent Lamb, IN Albany.
On the same day the Board Of Trustees had meet
Ing, and a committee consisting OF Judge Allen,
OF Albany; Messrs J. s. Lowrey and $. s. Constant,
invited Mr.. Best Thursday to act as receiver
upon the company going into liquidation. Mr. Best
gave yesterday the following statement TO the press:-
any selection receiver OF the National Trust
Company was am informed, made upon the applica-
tion Of q committee appointed at a meeting OF the
Bourd OF Trustees, which was held on Wednes-
day. l consented reluctantly TO accept the
trust, and only the instance of . number
OF trustees, who, like myself wore disappointed
and chagrinsd the developments brought to light
By my investigation. These gentlemen, on being in
formed the condition OF the company promptly
decided to go into liquidation, and solicited my
aid closing up the affairs OF tho company.
have informed acting Superintendent Lamb OF
ths matter, and have also forwarded TO MN
. preliminary report Of the compapy's con-
dition In few days shall complete my balance
sheet and viii at submit II TO the stock
holders and creditors. The depostors, feel conf
dent will be paid in full but legal forms which must
be comphed with will delay payment for short
timen
JUDGE APPOINTS BEST
The apr LEGATION for the appoin tmept of a receiver
was made by Messrs Acr, ). s. Constant and
Joseph s. Lowery. Tho petitioners set forth the
company inability 10 pay It's debts as they matured
ana became due and recommen ded that 1t should go
into liquidation The petitioners were represented by
their attorneys Messrs. Marsh and Wallace Upon
the hearing OF counsel Tor the corporation, in
the person OF Mr.. John Ii. " Arnold, Judge
Donogisue restrained tho company from doing any
further BUSINESS ordered it into liquidation and ap-
pointed The Court also directed that Mr.
Best should furnish satisfactory bonds 10 tho amount
OF $500, 900 as security for the performance OF his
trust. The receiver At The same time instructed
to deposit Tor sale keeping, in tho lands OF the
United States Trust Company, all moneys collected
over above the OF $50, 600. which amount
migbi remain in tho custody Of the receiver. Mr.
Best stated that his bond or the required sum was
are Ady filed out, and would be executed and placed
on Tile to-day.
Although The newly appointed receiver would not
without consulting superintendent Lamb, make any
Statement Of the company's condition, he intimated
the part of persons whom he declined TO name.
MI. d. X. Mangam, president OF the company de-
g med positively yesterday to say anything about It's
THE coxpAsY's RECORD
The National Trust Company came into existence on
April 10 1867 under special charter which was legal
lied by legislative enactment Its charter was modi-
led and amended IN several particulars gu April -
1870, and May a. 1872. TIs company nrst began
business 10 1869, and up Till the present time MI D.
X Mangam has, It appears, DISCHARGED me duties OF
concern aDe TO pay an annual dividend oil eight
per cent which amounts ia the aggregate to The SUN
OF $SO0,OOO.
Following Is the report OF Nj. Best, as special ex
amner 10 the superintendent oil the Banking Depart
ment:-
sR-when began the examination Of this company it
early this week state
Ias many q
extend my nvestig Of transactions
ana as % Of s
for period Of several i9 mt. the value the
pany has great % = and per-
aud may delay a the completion Of any
e Critical !" s action
upon your part large portion oi the eoiaterais are
Whole they are very aiSsrssd in character ana many
them never should have been accepted
The action OF The Officers ~ ,o.n,ns upon or investing
company. and has RESULTS dsastrousy he consequent
100000. is clear that on, exceptional
provisions the charter, section q which amended
Is s7S Dscva ss as on ssa s@s s
estate within the state o. New YORK worth double
Inited states or OF tins state or IN the stocks or
be issued by the Legislature o. in such real
for the OF the in the erection
suitable building in which 10 carry on rs business on
rue an The es%psny had invested 10 United states
Of The Incorporated cities OF ms state nor u the state
Missouri Pacific Kai,vsy which
at The saex ~ , s n ns 1oaS ans ss
asfsSt was made IN oe,Sesr and which Are no. oasrea
land construction bonds the market value Of waich
Ssn S r.ene Railroad OF caornia saS Joaquin valley
ss s o 10 % s' Sss @ no
lions oog shares Of soo each Of tue stock :" the .ss
and 1915 shares Of the stock Of the Missouri raeiae
aud which is Dealt il only BY few persons inmedlaey
Interests in he road he bends ana no,ss"ges ngsrs
worth required ~ law twice the amount q the loans
having failed s1vas 10 he company only tie eoa,sras
which should promptly converted into
Tine ,aas se's .ss% tel @ ss i.
arrears Of interest we're .a4ed 70 Jour loans
account Of ndsidua who not peeuniariy inter.
transaction TOOK place June, 1874.
g ops 70 tn nay % Inc 1ew s s upon
probably. not than s''pooe nigh. add nis
mentioned viii doubtless cns1e you 10 decide a. 10 the
sxseney il closing VIII 70 ssy in ceSai Of many d
the trustees ,hs, from Tue evidence before me believe
Indeed them have their surprise
my ex revealed have lie honor 80 remain
yGu' i oSs.f"i n isssa Special Examiner
To HrsRr L. LAMB Acting Superintendent Banking De
THE ORIENTAL SAVINGS BANK cLosED-ITs
oFFIcLgs REQUEST ITS DISSOLUTION.
superintendent Lamb yesterday put The Oriental
Savings Bank No s3O Grand street. into the hands OF
the Attorney General. with request that pro-
ceedings be Instituted once for closing
{ up The bank has been losing deposits rapidly
that Its president and board o. tratces themselves
consent TO us dissolution. rney wrote the following
letter 10 Mr.. Lamb yesterday
OHfLSTAL SAVINGS BAsK
43O GRAND STREET, Nkw DIRK, Dec. - 1871,
Hon. n. l. LAMB
DEAR sIR-In adopting the resolution to discontinue.
which herewith forward TO you, beg leave 10
set forth briefly the considerations which have in
auced Us to take this step. Ihe Oriental savings
Bank was organized ths year lc7L Among the
ffustees designated the cEarer Incorporation
one or more whose had wide Gotouety being
ideptled with the Tweed hipg. No ~ tho persons
referred however had any connection with the bank,
or Wa a member Board OF Trustees and the
thoroughly ot0nstitued prior tue opening
OF the bank. the original names could nos
be expun gcd from and their there
gave color insnuaon that tile bans creature
the King. This Suspicion though unfounded seriously