New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-09-26
NATIONAL TRUST COMPANY.
INVESTIGATING IT'S REcEIvERsHIP'
INVESTIGATING lis hE'Ei' b"o'A
ANOTHER SESSION OF THE SENATE INSURANCE
ooMMrrrEE-rFsrIMoNY BY j. IL. v. ARNOLD
Ann ID q APPLETON


neutrality-suspicious. bf D. H. v ""'V
AND ID. g. APPLETON.
The State Senate Committee on Insurance
resumed their investigation into the receVer'mp {" he
National Trust Company yesterday at the Office o sen
stor Russell, No 81 William-st There were present
the chairman OF the committee, John j. Herman, sen
| stor Koch and Senator Russell The exami-
nation of witnesses conducted by the latter
J. L. Lowry. OF the trustees Of the company, VINO
was active In securing the appointment OF Receiver
Best had subpnnaed bnt sent notice OF his lnnp
ity TO attend the of the committee through III
ness Mr.. Best sent word that he had malaria ana cou
not be present.; by letter he requested
the committee recall Mr. Oryis, Mr.
Mangam, Mr. Cruikshank aud Mr. Mcdowell TO enable
him to crosse xanne hem their testimony or week
ago lie claimed be able disprove their statements
that the National Trust Company was not nsONeht 1T
the time of his pointment In December le 4 hhu ."'
the securities Of the company had been sold at less than
their value. His request granted Commodore 1Ii
son w ho had been subpgnaed to testify concerning MS
rurchase OF the mort gage bonds OF the Pacifc koad
of Missouri which Lad the assets oil the cou
papy was 100 feeble to attend He expressed Wiling
ness however To give testimony to any one sent by
| the committee. The witnesses examined "eie 1oAn d"
| v Arnold and Daniel & Appleton.
Mr. Arnold said that he attorney and counsel Tor
the National Trust Company from 1867 up TO the ume
when IL passed into The hands OF Receiver Best III the
fail of 1877 Mr. Best came the oce Of the company
and claiming represent Mr. Lamb as the Acting super
iptendont of the Bank Department, began an examina
ton of the alirs OF the company. After he had been
| there several days he called the members
| of the Board OF Directors together and made a
sort OF report in which he claimed to have discovered
that money mad been loaned insufficient security, ana
that the capital impaired This the witness thonsh
was before he had made report 10 the Department Mr.
Best said 10 the directors that he would send Tor MI
Lamb Mr. Lamb came. and committee OF the directors
composed Of Mr.. Lowry, Nh Constant aud Judge Allen
had a conference with him. at which the witness was
present The committee concluded that inasmuoh as
report would he made which wCdld be unfayorabe 70
the company, would be hest 10 take steps for the APP
pontment of a receiver who would be friendly with the
trustees and stockholders. There was never question
that they would be able TO pay the depositors. Mr.
Arnold as the compauy's counsel, began at once TO
draw the papers, buC on the afternoon OF the
same day Din December, 1S77), he was called over
TO the Office of the company. There he found
Mr.. Lowry, Mr. Lamb and Mr. Constant. Mr. Lowry
said that Mr. Lamb objected 10 the pan proposed a
would 30 before the Attorney with the matter
unless his suggestions were adopted However, II the
directors would consent 10 'It ;pIV. 4" IN NJ
by the supreme Court lie W. ID make no Objection; Mf:
Them 10 90 TO his attorneys. There wO.Ia
not, in NJ. Ano!ds opinion. have been The
capital Mr. Lamb avoided talking win Inn on tho auo-
iect aud two days later, nm lately after the appoint
transfer all tue law papers OF The company 10 fr,d
erick >mythe his coun- The witness did 30 Hsiad
never had any consultation with Nj Lamb about the
appointment, bat Mr.. Lamp tod MN bat cease MOu
not be pressed before the Atorhe! General u Mi pes
! were appointed by the supreme Court lie himself ndd
never had notice If the ra the securities ana had
never c,rd ANYBODY init that he mad There was not
tine slightest necessity for putting the company IN ine
hands o1 receiver; us position was Ho'
that had pulled through, nom at Of the same com
pauy 1873. There were III tne assets some -eCdrle'
not Immediately saeab.e, bus their prospective value
was well under toOd Tuc loans real csjatc few
and all the mortgages were hey ond question except
some on out-otown prop IT. winch wore taken ioI
debts He had NOT paid uicn attention to the mate OF
fees 10 Mr. Best gong only once 10 LOOK LOOK
There he fond that in one instance
Mr.. Best had once been paid certain amount ana AZ
terwdTd an increased rcthtaSe Ola Tue s'uo amount
MIR Russell said the whoc amount drawn BY MI Best
was SSs,OOoI 4hc peuuon Tor nc appointment OF re-
counsel OF Mr.. Constant, wno n 0rmed the witness mat
MI Lamb hdd said tha lie uld not want te petition 10
come nom me ONCE OF tAe con cvlHitel 49,. -,
Dauci Appleton testified that me vas irlstee OF
| the National Trust Company IA DecemOr 1871 anu
about lie affairs, perfectly spuuo ana able 70 pay al us
debts, though portion OF us capai was locked up or
| ia. time being lie did MOI FAVOR the appointment
| of receiver, ana took 10 voy active part
tees would have been wiling TO make sooa me i.nlI1
ment, bat The appointment OF NJ. Brsi was 30 AIIIicu
| tnat They had tino Tor considerations Aft"r"Id
tAcy were yer, much astons IeO. lie witness himself
had mad. some prcparatiOus 10 loan Inc company some
money. Mr. Lowry ne thought, agreed win MIN at thc
! thaf having got into The bands OF the officials
| ALBANY ID was tire best thing That could DE zone.
Mr. Appleton did not tnlnE Ia srOcl as were peJuccd
| acain,, the company were eXorUng an undue ihu
ence 10 put IN the hands OF Receiver. lie was not
present at The auction sale, but Thought he had seen an
advertisement oil IT, As trustee hc u"dDodgh .Ol another
pcrso the 10000 Chicago ami Eastern noi,. ana re
ceN bonus. II ~ each, ana ten sAal
OF STOCK, 500 lie pan IL Tor the bonds, ana
got inc WLoe III int Wiihou, So ca payment ioI me
| income bonds ana SOCK. lie uUnt remember lhAcI
about except that he M 20 pr Lowry
VINO cola MIN Mai best was oh!-cu to sell them ana
lie would aec tnat the "liutrr g't lhcm' Hir LOW!
said that hu pd more tn"n he cOuo eel lOi t"tH III
IualAct, and TINS doubtless NuC. iuc income
DOnds ana me stock nad no hdfhel Niac nc menu lh'
Tor some tut and Inen ua posed 81 tncu AT moderate
prot-tne mortgage ponds al o., thc income bonus I'll
! 20 aud Ock par. ne Was lot acquainted WIN
| to 60 with TocDInIncuG.ns the cOuIoe taken
| ne did NOT believe that the company ought
Mr. Best II an accountant; has lguie' were
correct II properly mad been put under Inc hammer
uIne it Wouio IOl nave been jcopdrhLcd by continual
Ton Vi the business
! NJ Mangam was recalled, and testified that in
November, 1877, snort Inc before Inc appointment OF
Mr. Best, the trustees .a1 appointed CON il'tce TO
examine the cOnOiuon OF ah.us, ana tDey hhd
1epo"e& os S Wa Gi S gcs was Ho in s
Office Best never made Statement 70 Inc trustees
except VerOaiy, That tnore Wasa deficiency. On the
stIc. Z tIt nc "a Il, however, committee wa aP
pointed 10 confer nun and III Lamb ana report 10
an adjourned meeting on the next day 1hey never re-
Or,ed On The dap tner appolntm III they hcld men
conference and men and here the arrangement u nave
| Mr. Best appointed receiver was mate
Mr.. Apil.lOn sad nc h4d seen the report OF the
November committee ANA believed 10 have Dcen better
| IMAM Mr. Besp-.
| III. 1aAgam said that the morning after the ap-
pOutn, ~ Oh The Committee o. Conference hc was ap
pr.d OF the lact tAat company IN the hands OF
"a receiver ana a-ked 20 ara everything over 10 h
Best lie f,l sick ana did lot leave Ills Ded Tor several
| weeks Ihem he went 10 Ir. LOwry anO SAID: " MI
Lowry. dOnt understand tins tnlng. Dd MI Lamp OF
MI Best ave your committee 10 understand tiiA hcie
wac anything wrong III me books & MI. LO"I! IePheu
Mr. Bes didn't 10 say, bat Mr.. Lamb dld"
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ARMY ORDERS