The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-29
THE INTERNATIONAL TRUST.
ARE COMMISSIONERS HAYT AND ASSOCI-
ATES TO NE INDICTED9
Taking Deposits until the Very Day OF the
Suspension, and. II IL Charged. Obtaining
the Deposits Under Fraudulent Pretences

The Grand Jury OF Hudson County, N. j.,
finished yesterday their investigation OF the af-
fairs OF the International Trust Company. and
they arc expected in court this morning to
make their presentment. A throng OF excited
dopostors was about the Court House in Jersey
City last evening when the Grand Jury adj
journed after protractcd session. and rumor
was rife that President Ezra A. Hayt
and his associates. or some OF them. had
been indicted. A depositor who had testified
before tho Grand Jury said that the jury
reached tho conclusion early in tho proceed
ings that the directors had committed the in
dctablO offence Of obtaining money by false
pretenccs. for they the directorsl positively
know. after Master in Chancery had invosti
gated the Trust Company's condition, that II
was insolvent; yet they advertised up to tho
day tho doors closed that there was an
unimpairod capital Of 100000. Depositors
testified that they made deposits within
week OF tho Trust Company's sus-
pension. only after personal assurances
from officers OF the company that It was
in a healthy condition Tho jury were per-
picked said the depositor referred to. by a
question Of expedency. Some OF the Trust
Company's directors had assured certain de-
positors that II left alone they would soon pay
another dividend; II indicted. no more pay
ments need be expected. This gave n new turn
TO affairs. and yesterday afternoon an infiuen-
tial delegation OF depostors were urging tho
Grand Jury to give the directors longer time.
II was urged that two more Grand Juries would
sit before the alleged crime was outlawed. and
that the threat Of future indictment would serve
To- stimulate the directors to great exertions TO
do Justice 10y the dsposltors. some Of TIE grand
jurors II was said. intimated that they had
roth Ing to do with the matter OF future dtvi-
deuds. and that II was their duty when crime
had heeD brought to their knowledge To indi't
the offenders Irrespective Of consequences.
think they have II in their hearts to indict'
said clerical witness after session with tho
Jurors. You will see in the morning."
The Grand Jury's Investigations Of the Trust
Company's condition. II Is understood. covered
only 80 much OF It's AFFAIRS as were KNOWN hy
acting Master in Chanccry Washington Is. vii.
liams who made a report on the subject several
months ago and by the committee representing
| the 300 depositors. The Rev. Spencer VI. Rice
Of Grace Episcopal Church. Jersey CITY. and the
Rev. Mr. Parnialee n Baptist minister. hoth de-
positors. took an active interest In the matter.
| The Rev. Mr.. Rico represented u large body Of
| the depositors before the Grand Jury. II was
| shown 10y tho deuositors tina, even on the very
day the company failed. iis advertisements In
| vitlng deposits were displayed. Tho character
Of these advertisements may be inferred from
an extract from one OF the company's circulars:
The bank i DESIGNED or AL casses In the community
and omen to all thus enabling the industrious aud rg
ral. BY conmencins eatt ~ NE win SAVING lev dol
lars. To make provision tor time 81 need Parents may
them delo.iors teach them the advantage OF hahit' "
oiny which will BE- remembered through life.
The Rev. Mr.. Rice was ono Of the Intcrna-
| tional Trusts latest victims. Having few
| tnOusAnl dollars tllAt ne wished To place MutfN
| II would draw interest. he decided 10 divide 1t
| between two banks. He got statement OF the
International Trusts conditions which showed
an unimpared capital OF s2uOOOQ. That being
| a larger amount than the other bank claimed
| Mr. Rice gave the International the larger por
| ton Of his money. borrowing 800 TO enable
| him to make a deposit OF AN even 81. 900. At
| that time the bank had long been insovent
although doing business, In fey days came
| 81 900 in n similar way. depositing her money
| ON assurances that the bank was solvent A
bers OF the leading churches OF Jersey City.
The present directory OF the International
HnYss in9an y o. ]s e HSg
=. j. Steward Nelson Dunbar. Bennington f.
Randolph, Charles p. Dcshler. \. $, Patterson.
| Isaac w. Scudder. L. ID. Carr. +. c. Delavan
| and c. VI. Field. Since the company began
business in the spring Of 1869. Commissioner
| Hayt. who was its founder. has been its Presi-
| dent, aud, according 10 the testimony OF Mr.
| Williams. responsible tor It's management and
was peculiar. and was Of character. Mr.
| Williams says. that ought never to have
been granted. 1t combined tho functions
| Of savings bank. and tho result wns
! that the one department dragged the other
| in 1873. II had proved n loss from the begin
| ming. In the efforts 20 get bushes II had taken
| in exchange for policies real estate in various
| parts 81 the country, stone quarTrs. or what
| ever other property II could get Water fronts
nni other pIQp-t,y ~ osW .oG6 AZ nal been takan
| pany's assets. Investigation proved that they
| would not sell Tor half that sum, and that some
OF the property had no market value. The
| company WAS compelled 10y It's charter to re-
| insure its risks on going out OF business and IL
| turned over its policies for reinsurance To the
United States Life Insurance. Company
| OF this city. To secure its indebtedness
10 the latter company 1t gave mortgages
| on all Of its best real estate. There
was then left for the security Of the savings
| bank depositors. as assets of the banking de-
| partment. all the unstable real estate. the bulk
| Of II being the Oswego property. Mr. Williams
| thought. from his investigation, that the COM
pany could have wound up all its business in
1873. without loss 10 the depositors but for four
years II tried to stave or the suspension that its
| losing business clearly foretod to be approach
| ing, With It's enormous load OF unavailable
| real estate and the overdue notes Of its own di-
rectors, to the amount Of 100000 the lnterna-
deposits until little more than year ago when
| Chancellor Runyon intertcred and directed an
| Investigation 10 be made. Mr.. Williams found
| thought II possible that GO cents on the dollar
might then be realized by 4 good receiver,
| President Hayt begged for leniency. and asked
| that committee OF the directors be allowed to
| wind up the business. as they could convert the
assets TO better advantage than receiver. Mr.
Hayts request was granted. After several
| months. the directors asst fall paid a
dividend Of 20 per cent; Nothing more
was heard from them during the win
ter. The depositors began 10 clamor
and threaten. The Grand Jury convened. and
the bank = affairs were called TO their attention.
| ried visit 10 Jersey City. and II was announced
| that fifteen per cent more would be paid tho
| 70 60 into the investigation and an effort has
| been made TO have the exact condition Of the
| bank at the present time made known 1t is
| said that for some Of the notes held by the
! bank. which appear in the assets no value was
ever given and TINT the persons giving them
| only lent them as a personal accommodation to
| Mr. Hayt. who promised 10 return tho notes or
| their cash equivalent. One Of these notes.
which the signer AYERS was so lent has been
returned, he says. by Mr.. Hayt within a few
| days, Commissioner Hayt came over from
| Washington Yesterday and is at the Metropoli-
tan Hotel in this city
Other peculiar investments by Commissioners
| Hayt, which. 1t is learned are among the Inter-
| nationals assets. nre $50 shares Of the German
American Warehousing and Storage Company
Of Brooklyn. Of which Mr., Hayt was one of tho
founders. The value OF this stock Ia placed nj
tl1.3l404 1t has no market value. Six hun
dred shares Of stock in an oleomargarine com
pany in which Mr., Hayt was Interested also APP
pear on the bank books. Loans Of more than
10000 were made on them. These transac-
lions some OF the depositors propose to bring
out In civil suits should tho indictments fail 10
accomplish their object.
The company now owes its depositors about
| tl75 900.
Gen. HaEen Mt shiloh.
In the Stanley Hazen court martial yesterday
the examination Of exGov Palmer was resumed. The
witness stated that IlAzens brigade In place which