The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-05-07
THE INTERNATIONAL TRUST.
COMMISSIONERS H1YT AND DIRECTORS
CARR AND FIELD INDICTED.


W ~ J.s
them Responsible for the Banks MIsman-
agoment-Hayrs Various transactions.
The Grand Jury Of Hudson County. N. j.,
decided. at their session yesterday afternoon.
to indict President Ezra A. Hayt. Secretary +.
d. Carr. and Director G. NJ. Fields Of the Inter-
national Trust Company of Jersey City.
The company was organized in 1869. with
Hayt for President, and he has ever since excr-
csed an absolute control over the investments
and operations Of the concern. BY its charter
the company was authorized to transact and
combine the business OF q savings banks with
the business OF life insurance. For several
years II ondeavored to perform these distinct
and conflicting functions. but without any
profitable results from either department. Con-
sequenty In August. 1873. the directors held n
meeting. at which they renquished their in
surance business. and transferred their poll
cies to the United States Life Insurance Com
pany. The most valuable real estate owned by
the International Trust was mortgaged to
ruinous. extent for the purpose Of securing its
transaction. by encumbering its best property, so
impaired the assets OF the concern as to render
ultimate failure inevitable. The only accounts
lott Tor the depositors were some real estate in
Oswego and some worthless mortgages. De-
spite its practically insOlvent condition of
affairs. the company continued in business un-
I'll almost year ago, when Chancellor Runyon
ordered AN Investigation that revealed IFS true
financial standing Master in Chancery Williams
who conducted the examination. discovered
over $40 900 due TO tho company on notes OF its
own directors; Water fronts and unimproved
representing $3.50 900 OF values. although they
were never worth more than 5000. At the
Ur .nsss s te secIqry oI 'e n
Carr. G. NJ. Fields. II, s. Terbell, ID. J. Steward.
Nelson Dunham, Bennington i. Randolph
Scudder and L. c. Deoom. prominent charge
against Hayt was that he had prepared various
tire sovency OF the bank and inviting depos-
its from children and laborers.
On Thursday last Mr. Randolph visited Pros
He urged his age and reputation. discaimcd
any personal dishonesty. and begged for len:
himself powerfully in Randolph's Interest. and
several other influential citizens have made
efforts TO prevent his indictment. Isaac W.
Scudder.an old lawyer and highly esteemed citi-
zen Of Jersey City. has not yet been indicted He
had little 10 do in the management ot the insti-
tuition. and the Grand Jury did not reach a de-
cision In his case and in those of Messrs. Ran
dolph and Terbel
The efforts OF Indian Commissioner Hayt and
his friends TO avert indictment have been siren
nous. After Hayt learned thatth Rev. Spencer
NJ. Rice and the Rev. DIR. Parmlv were going to
bring the law 70 bear upon the directors he hur-
ried from Ashington TO Jersey City and caused
dividend Of Is per cent. 10 he declared. This
made a total payment to the .depostors Of 35
per cent but still left due to them about $l75-
900; The Grand Jury. however, decided TO
probe the rotten institution and summoned
witnesses before them 10 find out how it was
that the company had received deposits up
to the day its doors closed when II knew
months before. by the examiners report that il
was ineolvent As a last hope. Hayt and his as
sociates went TO the depositors who had test-
hed, md told them that the company would
speedily pay another dividend II the proceed
ings were then stopped. but that were indict-
ments found. the depOstora need never expect
70 get another penny. Il is said that some OF
the more troublesome depositors were even
privately promised their money in full. II they
would urge the Grand Jury to withhold an in
ened circumstan css' and the promises Ind their
effect delegation OF depostors last week
went again before the Grand Jury and urged
them not to indict Some OF the Jurors. how
ever. insisted that their oaths required them Ia
present all violations OF law that were laid be-
they voted TO indict the directors above'named'
IL is probable that in the course Of the trials
OF the indicted officers some very curious trans
actions VIII be explained. Certain directors
who were not indicted. IL is said. will be called
upon 20 show that the International Trust was
long kept up on notes and other bapers borrowed
by Hayt for the purpose OF covering up defcien-
cies In the cash OF the bank that those notes
were not discounted In the course of business.
and that the persons giving them never got
any equivalent for Them. In an eNamina-
tion In a suit brought against Hayt by
was director. Hoyt made nfldavMt" M"in That he he
WAS indebted to Mr. Steward. one Of the Inter.
nationals directors. for more than 800 600.
and 70 other persons In large amounts. A part
ot the Trust Company's assets are 10000
shares Of the German American Wharehousing
Company OF BROOKLYN. in which Hayt WAS
the controlling spirit. Hayt. II is said.
got hold Of the charter Of the Warehousing
Company at a low figure througHJames WIZ
son. n former clerk OF his. Through Wilson he
got also large sum In the Commercial
tOleomargarinel Manufacturing Company =
stock. which he nut into the International's as
sets. Hayt's son-in-la Patterson, is also
IN the oleomnrgarine business. ale Due.
Hayes 5 Commissioner OF Agriculture, has
lately been sending out circulars recommend
ing the use ot oleomHrgariue. His Office is in
the same building with Hnyt's In Washington.
Mr.. Terhell. one OF the directors OF the Inter-
national Trust. has been an examiner OF dry
goods tor the Indian Bureau.
Indian Commissioner Hayt arrived In the
city yesterday. and stopped at the Park Avenue
Hotel. He went away again last evening with
his carpet bag. taking northern train. il was
said at the hotel The clerk understood that he
was going TO Albany.
No arrests will be made, It ia understood until
bench warrants have been issued.