The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-05-06
DEP0SIT0RS WHO COMPLAIN.
THE SUSPENDED LBERTCIN TRUST
COMPdNT or NEWARK.

0rteNhnefh htttufe tue efhud Jury
Tho action OF tho dcpositors OF tho derunct
Lfc Insurance and Trust Company Of Jersey
CITY in laying their grievances before the Grand
jury, seems TO have furnished n suggestion
which is likely to be- followed. Several OF tho
depostors in the American Trust Company Of
Newark, which suspended business on the 9Th
of january lust. announce their determination
to 20 before the Grand Jury.
The American Trust Company is an outcome
OF the Bloomfield Trust Company. whose char
ter was granted by the Legislature in April.
1869 about which time that OF the International
was granted also. Like tho International. II
did several kinds of business not usually within
the scope OF savings institutions. II was au-
thorized to aid. by loans contractors and man
ufacturcrs; 10 receive the notes bonds. obliga-
tons and accounts OF States and individuals.
companies and corporations. and the same to
purchase. collect adjust. and settle. aud also to
sell or dispose OF them" And. like tho Inter
national. II was this very surplus Of rope by
which the American Trust Company was finally
hung IN. Among It's assets are about 100000
Of stock in the New York and Oswego Midland
Railroad and the Watching Railroad. a third
MORTGAGE of 900 on a Bellevllle quarry. and
about $50 900 in second mortgages on the tac-
tories OF Mrnninger and Cornelius Walsh. Re.
publican candidate Tor Governor against Joel
Parker in 1871.
Edward $. Wilde OF Bloomfield seems to have
the company, which was not fully organized for
usncss until Nov. |, 1871. supplemental act
having In the mean time been passed changing
its name to the American Trust Company. Its
nominal capital WAS 5000 900. John McGreRor.
wealthy cOthier. who has been very couspic-
uous in Democratic politics. and who was n
candidate for the nomination for Governor Mt
the last election. was the first President M
thanlcl Niles Of Morris County. Speaker OF tho
Assembly in 1871. was made Vice-President.
Mr.. McGregor resigned TO pay visit to Scot
hFatr aln tai Dr.a. dan In ia afnU MI
About two years ago Mr. Niles resigned The
| yice-Pres dency. and was succeeded by &. n;
lockwood. n manufacturer OF coach lamps, and
| said to be worth half million. Mr. W. A.
whitehead President OF the trustees OF the
| state Normal School. anu man Of high rcpute
| in Newark. was treasurer from the beginning
| to tile close
The Board Of Trustees at the time OF the sus-
| pension was rs follows.
Daniel " Lyon Thomas Langsiro,h Paul BUCHANAN
Joel PARKER Matthias Dodd Job 5 cranc John Ne
r. E1 <'aS a LAM Ed%u2H opp pf fS&,r E
SS assr Jane. wmR s:n Henry Il de- c jss
Chambers, Alexander TurnbulL Jas bentley. Adolph
Xsass cha" feabody VIM S' Roboiham, james wIs
| Jr James Peck. and j. Reeve sayrc.
Upon the application OF Cortlandt Parker
representing the trustees Chancellor Runyon
| granted an injunction restraining the company
| from doing further business. and George Will
kinson, President OF the Manufacturers Insmr-
ance Company was appointed receiver. The
depositors complained when they found that
the names Of President d. NJ. Lyon and Vice.
| President c. \. lockwood whom they charge
with being responsible in part for the alleged
mismanagemcnto OF tho company. appeared as
cever's report was filed with the Chancellor
| about two weeks ago. Tho dcpositors have
| furnished with u list. showing that the deposit
| tors are about 400 in number. and that the de-
posts aggregate about $4,000: and the Chan
| ccllor says that the assets seem to be almost
Receiver wilkinson said that something
| could probably be realized out OF the securi.
| tics in time. II left to the management Of the
| officers Of the company. hut very little could be
| got out OF them at forced sale by the receiver
| In his opinion tho disasters of the company
| arose from foolish Investments made. however
| when business was good, real estate nctive. and
| money plentiful that six-sevenths ~ the trans
| actions which brought about It's failur" were
| made more than five years ago. This declara-
| ton OF the receiver IL in accordance with the
| profess I'd belief OF number Of the depositors
| that most of those transactions we're made
| under President McGreEor; and they aver that
| the company had been practically bankrupt and
| without credit enough 10 borrow $4,000 for sew
| eral years past, and that the conduct o
| the active managers IN going on receiv-
| ing deposits under the circumstances was
| culpnhy Negligent. Tho opinions OF some
| Of Newark loading business men 20 to con
| firm those 90 the drposltors. Several Of the
trustee were advised 10 resign. and did resign
| Eumors of serious difficulty began To find be-.
| lief about the 1T Of january last. A wrck be-
| fore the tank closed It's doors Treasurer White
head, y u alleged, assured several ~ I'll,
| alarmed deposturs TINT Il had ample means {,
meet it, Liabilities. ana that. even II the stock
holders should suffer. all dcpositors should l.,
|
| ward. uhuut s. 600 Of which in small amounts
was received within day or two before the sus
| pension
Il was rumorcd among the depositors las
week that the receivers report WIS withheld foi
the present in order to give the trustees time :,
raise money among themselves to pay the SIS.
| Goa Of deposits in full. The aggregate wealth
| of the ihirtY-tWO trustees Is estimated Mt from
So OOu 600 To 5000 900. But those who had
most NJ stake were chagrined 10 learn from the
receiver that only about tl4 900 had been ra sec
for this purpose. and that the applicatOn OF TIM
amount was TO be- confined 10 those who had no
are indignant. They called n meeting Of de-
positors Tor last evening at 270 Market street
Newark. to consider what had best he done.
This is the fifth savings institution that has
failed recently in Newark. The heaviest was
the Newark Savings Institution. whose liabil
ties were estimated AT go OOO 900. This has
paid 40 per cent. and. II Is said will pay 40 pei
cent. more. The Peoples Savings Institution
ties were honestly disposed OF for $3.50 900. ant
| 1t paid % per cent Of the balance; the remain
der was n dead loss. Some OF the director,
were indicted and tried. but the prosecution
them. The Republic Savings Bank. which hat
n deficiency Of about 5000 600. honestly paid of
its depositors. Tho Dime Savings Bank ha,
paid its depositors ~ per cent OF the 81 200, OOl
Il will nay any more, Its President was Johi
McGregor, the first President Of tho American
| Trust Company,
The remark Is attributed to Chancellor Run
Won that the failure Of the American Trus
Company to pay its drpostors in full would be
dscreditabe not only TO the company but TO th'
city 81 Newark
At their meeting last night the depositors M
Grand Jury and request an indictment Of tn
trustees. A committee was also appointed I,
consider the subject OF bringing n evil sui
against the trustees.