New-York tribune., 1882-09-29
MR.. BESTS RECEIVERSHIP.

THE SENATE COMMIT EE.S lNQOlhl
THE RECEIVER REPRESENTED BY CoUNsEI-scoPE
OF THE COMMITTEES wORK-DE. RUPPANERs
TESTIMONY.
William j. Best appeared yesterday before
the State Senate Committee who investigating his
receyership of the National Trust Company with +. \.
Bangs as counsel The lawyer in giving notice of his
retention In the case stated that he understood the
matter from the newspaper reports oi the testimony
taken thus far the committee were directing thcr III
quiry mainly to two points: What were the circuIn-
connected with the appointment of MI Best as
receiver and what has been Mr. Bess conduct rs re-
ceiver since his appointment He submitted that the
necessity OF the appointment was question outsde the
province OF the committee it had been passed upon
10y the Court He asked that ne be enlightened by the
committee rs to their authority for proceeding as they
had been doing Senator Russell referred Mr. Bangs TO
the Senate resolution printed on the suhpGnas served
by the Sergeant Arms Mr. Bangs read the resolution
as follows
Pesorrd That the subject rcports Of gross wrongs and
Injustice on the part ~ receivers Die and T. hereby
referred to the standing Committee on ln'hidIoe, anu
that they have power 10 send Tor persons ana pAleis
whose duty IT shall Ice to investigate the TRANSACTIONS ana
proceedings OF receivers appointed by ordcroI the courts
Of MI suoh in solvent corporations yet unsettled
and which have hcen closed within hye years tt past
stocLhoer, and 10 report the result of such eyamina
ton to the Legislature with such recommendations hs
the committee may deem proper
Under this resolution Mr. Bangs claimed that the com
mttce could only inquire into complaints mado by
creditors or stockholders 0f the National Trust Company
against Mr. Best aud he asked who were the complain
anita and what the charges. Mr. Best he snld
wss willing to be investigated and was indeed proud
OF bis administration Of tie National Trust Company
but he WAS entitled to know what he had TO defend him
self against Chairman Herman assured Mr. Bangs that
his inquiries should have proper consideration from
the committee at special meeting and that hc should
have an answer but he declined to interrupt the
co,rs. OF investigation that had been pursued.
Dr. Anthony Ruppaucr was then called "A "A witness,
and the examination begun by Senator Russell y
few moments later Mr. Ecclc~ne, who had been con
ducting the examinations previously for the chairman
tns Mr. Kicrnan individual counsel and with the con
sent OF the c0mmittcc came into the room and took
part in the proceedings. Mr.. Bangs again objected
lie wanted to know whom Mr. Eccesinc represented,
and being told said there no warrant for such
committee 10 have counsel r. however Mr.. Ecclesne
represented the accusers of Mr. Best, the
latter was entitled TO hear all communications be
tween the committee anu Tue counsel Ha, ,.. ''
denied that any accusation had been made ana pointed
ont that tie Limitation 70 inquiries where coinlhh' :
| had been made by creditors or stockholders referred
only that bad been closed within iVc years ast
mast Mr.. Herman added that the committee before
beginning their work had secured am opinion from ih'
Attorney General rs 10 'i ., I'I, nli, ,; ~ ~
hermit Mr. BaugS o examine IT, The examination theli
Ur Tuppancr .'.id that he was the hollcrof 100
shares of Stock i'm tDc National Trust Company. md had
into the hands of Mr. Best He attended nearly "i "i
the meetings of the trustees and Was one OF me com
|
closed, to - lmnc the asset ana Sc"uc-
| on hand. The committee found in.i ON IIt,lu'ni III
assets liabilities OF about fjOOoo. II" hii hHd
sufficient confidence in the company 10 place with It
nnNiouS transfer the trust 10 thc United states li~
bat Il took him TN May 1, l77o, To do it. He had paid
the company one hail OF one per ccu imt S - 70 -o
accepting the trust ana conl Ion on l"o Ini.s'
collected. lie Thought lac sond he ehticd 4" lrcG:Ne
Iii property back again without cost - ana Mr ',gs ~,
encouraged if 20 the opinion. ON May J. A0"cN'I, NJ
Best took hin. the office or his counsel Mt Hinl ne
deatrrcd but Mir snythr told him If me- didn't Ike II hl
could and hc would defend the ca,e Dr. huplanei
then drew ch'ck I"i r'"V uhu' W 80 , %l ii i ~
that the amount OF commission Ice LETT 10 lhe decision %
John 4. Stewart. president OF the United state, Iru-
| COMPANY. They went 10 him together and MI StcWai
said that the usual commission tor accepting trust Wa
check 10 Resi- a. for ~ - and The $500 chccl
was destroyed. The fund was then transferred 10 th'
United states Trust Company ana the same 'oihnSsoI
Mr Bangs cross cxamined Dr. Ruppaner at erea
banking affairs and the value OF stocks ana aiso oI III
complaints against Mr. be,l re- ie1oiLra 1 M rr r
against lr. Best hc considered. however that ic It
ownership had been avery lon- 4nd very tNpch.iE\l
deceived by Mr. Best as 10 tne amount of dividends ihl
were TO receive ana ihc Lne o lAer il n'l re "i''
WIS never given notice az the sale OF tnr securities tlh
we're IN Ice Sold shoud have rad the same privilege
that smaller stockholders tnan myself had OF nuyln-
some of the sccultir, to cover m! losses III. l"Wl
bought some and did Mr.. Moore. who is dead 1t wa
Ic that told that hc had iu this manner covered hi
LOSSES. / called Mr.. Best thoToupou and hc ohcrc'
me some tnat he had not been able to DISPOSE ot.
notice lad been given TO tl" Stockholders. am sure h
securities would hnyc brought better prices. Tn
EXPENSES have eaten up much that now see LITTLE
prospect OF the ,tockl oidcr- getting anything .
" Nhy do you consider the rrcciNer,ip expensive Z
| Nr Blng- asked
~ thousht lt" replied Dr. Rupuncr "a pretty
| expensive pu,inc,. when WIS asked to pay Mr Ies
| 5000 for walking from the National Iri-t Company
down 10 the United states Trust Company.
The witness denied That with surplus "i only TtoOo'
rs found by the committee, ~ifinkl2r of one ANA one
half per cent would necessarily nGkc the company IL
| solvent II would depend on circumstances.
An adjourned meeting of the Insurance Committee wa
held at the metropolitan Hotel yesterday nit"rhopn
! had been announced uIat the committee would III
| vc-ti-atr the rcccINcr,hlp al th" Luc Railway; bu
none. of the witnesses being rrc-"nt the examination
wis deferred until uitcr the Investigation ot th
| National Trust Company has been concluded. Rcsolu
tiOn- adopted appointing hub. committee o
Senators kcrnau. Koch and Lord. with tull power Z
designate the companies now IN the hands ol receiver
which shall examined. with the date and place iO
each examination There also Resolution adOptc'
which approved the procdu-, OF the committee as in
they related 10 the National Trust company, the III
quiry 10 which viii be Resumed at Ip:3O d. M to day