New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-03

600 were nterest-paYng, and the market Nauo
of the whole fell short of the loans not less than
prepared say that the loans to Mr. GRAY "ce
frauduently placed in his name; but the examination VI
his accounts in all its ramcatons, In cohnecHou Win
the evidence of Mr. Mangam, leaves no douo' upon ny
mind that Gray had ceased TO be interested In H. m
equally certain that trustees of this company were par
ties TO it, aud that balance was paid December ~
| 1877. by Mr. MaDgam" -
Mr. Best charges Mr.. Maneam with further Irregular
lies in the purchase of Missouri Pacific Railroad Bohds,
arising from loal the Atlantic and Pacific Rairoau
COMPANY OF 100000 the collateNls being S2oooVo OF
the IMPROVEMENT Bonds OF the Missouri Pacinc hairo""
| Company. MaDgam then purchased these Dohds a'
g. but did not credit the railroad COMPANY
with the $4,000 He did not know exactly
what their value was These Improvement bonus
exchanged for the bonds of the present company
Mr. Best comments on this follows This purchase
was contaminated October 81 1879. The pilce pald LOT
the bonds by the Trust Company 30 presumably all
they were WORTH yet as Mr.. Mangam says, they were
placed upon the books Qt 80. the dinerehoe
being credited to profit and loss account III 'hs
way the assets OF the company were fctiionsy mcr,feu
$50 COO This kind lnanceriDg never fails 10 prihS
disaster 10 all who practice It, and the Na'loha trust
Company is no exception to the rule Fortunately ue
methods OF Mr.. Mangam are not followed III well mai-
aged financial institutional
Mr. Mangam gave, in his statement Of December y an
item among the assets OF this company, OF interest
SS3.o1s OF his. $4,000 error OF TIE book-
Keeper and nearly 200 more was. interest upon the
fictitious loans and loan Of Si3.oOO, on Wheh 10
interest has been PAD since June $50 ne -
NAV realize from $1,000 To $1,000. Tr real interest
asset Is therefore sl9.Ols
LOANS TO TRUSTEES.
Mr. Resi- recalls the provision OF tie mpanys charter
foyidding LOANS TO trustees He has reason TO believe
that this rule has been repeatedly violated The charter
requires loans only interest bearing bonds or dividend
paving stocks with not. less than 20 per
cent maSs: c w yoor be of ' tns law Ire
maiority Of the trustees he acquiis OF knowledge OF e-'
W. Man.am. Tie aopends a. Showing their ierlngs
lctcI Of ono Of thrm whose name be Wllhhos WI"
fTsfcc AMI Is prepared To meet 70 promptly by paying
his proportion OF any sum required 10 prevent loss 10
In CONCLUSION Mr.. Bes, srronlly cen-ues the mannse-
i.cnl 81 The trnat company, ahu plns u" ~" yn,n
ions lie saws: F.iiures. such hc National trust
Connany not only entail Immediate los. mon
i,i vlIrnls bur tend 70 disturb confidence III similar
n. tntons unauC stonahy souud. and ~ ms way worn
nid has becrne extremely So in view o recent nlI-
cal frauds. A. result 4 slnnS INVESTMENT ~ 'nrd
prisos cal Iatcd ~ develop the resource Oh ' ' tr
nv. and add 10 its pcrmau nj wealth: 10"
20 inaueurgte honest management, ami thus re-,
towards hvIug - solid f0Uudation 70 h'tr ines'l "
theme deserving the attention o our neS' inu, mr. h
seeding ont process rs well en"ish II ~ "al' u''
It nos the radical ircisve method calculated 1" rec
tabsh The finances ~ the country upon sounu nsi'.
failure, maadministrahon ana corrnp"h. ~ ~, tilr
forms must made exceptional dssrarciu an lieldN
mand nnd WINCH, uuNl' M! "' "u"p''" ~ -'''
measure"
TBE CONDENSED BALANCE SHEET
The following is the condensed balance sheet
81, ,,, non ain, -, ,bo cc,oro,v an December l. 1877:
ASSETS.
Cash IN to'o@' u
Central National liaik .,...---.-s ~ 49,, ,s ~
Unon Bank. Philadelphia. 4o,-o3 c'-i9i2 5S 10
Total .............................s 35o.7o7 -
Lolas on Plcdgc NJ S earho.
=, q ,., o., .o,ia..r.i 81 s,;g rs s;o7 700 90
D On oicr s.cun'ic 60. ,.os,o. 90 o., orc n.
lS' wi,h a e a. HS II ~ IS Ssi6 -
= coils worth less than AMI anediiioo7 90 800 -
- ~ .-....--..-.,,
Total, as '-o'''"' -
less am { carried as hcttlous loans. 'Gc.ib7 II
Total. 81 25!.,.ss, :,
Deduct aei'cy u Glars T. W. IPahSe -i''i114s -
.7-s-..-o o.
Total ... l4''2'' "a go 49, "a
w. s.earne.
sr,oy,. At Market
Tai Rate 1i'.
T. :. bonds 8. ISL" $1,000 o. l"' '-'.-' ~
49, ~ iu7i 3l3. 20 Uu
q ? boa. - . 20 ls.,.. i41t 10 go l'f.s 1880 e.
L. .. bonds. 5--o' lso'.. z.'o'o ." AVE- -''''. go
io''' STATE ,o'd.
. , o-,,. -
tax bonds. cjats $1,000 .,.,oo.
each. ............. 500 oo9 800 ~
'''''''''' ,,.,,,iorors Eoal,
, oc.-. r,,,,.' ..,,t,, ,.a,,,,e
CO. "' "''''.'" 30 Vac ''-.'. -----
;r siss ss, .ss g. a 3.5o5 % g 100 i5ao 90
On proper r,n IN y". ochaaf g. 25rj 30 %.c o.,
IIo,r.n,4. SeaJcI cy..... .o"1O 90 1t1'' r'