The farmer and mechanic. [volume] (Raleigh, N.C.) 1877-1885, 1882-09-20
Beats Bouncing Big Bin!

Beats Bouncing Big BIZ!
You have heard about the New York
Bank and Railroad ''Wreckers; :" mer
who couspired t get Receivers to
"wind-up" the business of corporations
OF course, to 10 this 10 IL months time
necessitates tie selling of bonds, stocks
and material, At public auction, at grea
sacrifice. The ''wreckers' buy them W
at immense profits
These things have become SO notorious
that a committee of Investigation was ap
pointed by the New York Legislature
One of the matters investigated was ths
National Trust Company of which
Col" VIM. J.. Best, President of thu
Midland n. C. r. r., was appointed
Receiver" in 1877, by Judge Donohae
The Senate Insurance Committee met IL
Senator Russelrs Office, SO William ST.,
Saturday last. Col. Best took the stand
and swore that during the five months
ending June, 1873. he collected from the
assets Of the concern, 81, 734, 642. Fol
his services he received $50, O79.29; and
for services during the next fifteen
months, ending August, 1879. he rsceiv'
ed $50, 766.85. Total, $sS. $3.50 y. and
incidentals. Pretty good pay for ls
months work, especially as he didn't dc
all the work! He testified that he paid to
lawyers "as regular counsel fees" $1S,
$50. 10; and for special counsel 1868
or a total of $22. 3O9. sc for lawyers ad-
vicel This nugget, also, was at Bank
expense. Mr.. Best added that when he
took charge, he found the Trust Company
had 1888. O76 on hand, in cash,-a neat
pile!
We COPY from the New York World as
follows -
''On cross-examination, Mr.. Best said
that in January, 1878, he paid a dividend
of SO per cent. In April of the same year
he had been obliged to sell securities for
81 per cent. of their face value which af-
forwards realized more than their full
Ualue. When asked why he had sold
such valuable securities at such a low fig
ure, Mr.. Best replied that he had been
forced to it by a pressure brought to bear
upon him by depOsitors. When asked if
the depositors had held a public meeting
and requested him to pay them further
dividends, he answer ed in the negative.
He said the Individual depositors had
called at the Office and clamored for q
dividend.
Charles E. Orvis testified as follows: Il
was bank examiner in 1872. | examined
every bank and trust company in the
State with the exception of the National
Trust Company. l know of no reason
why the National Trust Company was
not examined unless it was desired to
confer some favor upon Mr.. Best"
Orvis wen on to testify that there was
no need to wreck" the Trust Company,
or to sacrifice their securities" He
said:
"At the time of the alleged insolvency
the National Trust Company had plenty
of money. The only excuse for the al
legged insolvency was the rating down Of
securities. | think the National Trust
Company was pertectlv solucnt at the time
1t ,cent into alleged bankruptcy. There
might have been a slight diminutiOn in
its capital, which in those days of panic
was an often occurrence with many other
institutions, as securities were not on
ready sale. l was regularly appointed
Bank Examiner on a salary and received
commissions on examinations of trust
funds. My commissions on any trust
fund examination neUer exceeded $40. |
do not know what Receiver Best's ex-
penses we're; but had 1 Examined the
National Trust Company's affairs $3.50
uouldhau been ample compensation and
perhaps 5000 UOuld haze been sufficient. I
could not hare reported the National
Trust Company as insolUent. There
might nave beer a slight impairment.
which the directors and stockholders
could have made up or overcome by &C.
cepting smaller certificates of stock. |
heard that the sum paid Mr.. Best for
the examination Ud very large, and also
that Mr.. Best's expenses ucre large. My
opinion is that the condition of the Ma
tional Trust Company did not warrant
the appointment of a receiver. Laying
aside capital stock, it had ample means
to pay all depositors. The excuse that
the depositors were clamo:ing for divi-
dends was a very poor one. There were
securities that could have been turned
into cash without sacrifice and pay every
dollar to depositors.
Mr.. D. R. Mangun was next sworn. He
said Il was President of the National
Trust Company. Mr.. Best had intimated
that the capital stock was impaired. A
committee was appointed to confer with
Mr.. Best, and Mr.. Lamb. Superinten-
dent of the Banking Department., and
report what was best to do. | appoint
ed as such committee Trustees Allen.
Constant and Lowry. They made a bar
gain to pat Best IN as receiver. The first
| knew of their action was next day,
when Best was announced as being re-
ceiver. | turned over to Best $500, 600
in money and an amour: of call loans
and assets which [ cannot remember"