The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-09-17
RECEIVER BEST'S PER CENT.
MORE THIN S5e, 900 FOR ABOUT SEVEN
MONTHS SERVICE.
The a Fairs OF the National Trust Company
First Examiner and then Receiver-Trus-
tee, Buy,nv ssnur,,, "t Private S",.



The State Senate Committee on Insurance,
OF which Senator John ]. Herman is Chair.
man. met again yesterday In the Office Of
Senator Russell SO William street. The testi-
mony Of William ]. Best receiver OF the Ma
tional Trust Company. was continued.
Mr.. Best said that the assets which had been
In his hands amounted to 81. 734. 642. OF which
$75307G was cash on hand at the timo OF his
appointment. He got for his services as re-
ceiver OF this company from December, 1877.
to June. 1878. $50. 03926. This amount was al
lowed on report made by tho late John s.
Lawrence to Judge Donohue. it being 8
per cent. OF the assets. No part Of
this amount was used for paying counsel.
There was paid as counsel fees from December
1877 to juno 30. 1878. $2.250. Of which 50. 900
went to McKeon & Smith. and $3.50 to Thomas
A. Hendricks Of Indiana as a retaining fee in
sutlinvovng 100000. Mr.. Best got. as addi-
tional compensation for his services as receiver
$50. 766.77 for services between January. 1873
and August. 1879. This was allowed by Judge
Donohue. and did not include payment OF
counsel fees. For legal services in the time
between June. 1878. and August, 1879. SIG. 44O.l6
was paid to McKcon & Smyth.
Ex-senator Thomas c. L. Ecclesine. private
counsel for Senator Herman. by permission Of
tho committee. examined Mr.. Best who testi-
fed further that his examination OF the trust
company's accounts before his appointment as
receiver. when he investigated it's affairs undcr
the direction OF Superintendent Lamb. showed
biites, to Gepositors. s2i7 .S74 %. This is was
posiors were ST 6Ss. 6ti Is. and estimated value
OF the assets was ~ ,S7d 336.0l.
the was mot that SIMPLY an
Mr.. Ecclosine.
Mr.. Best said he could not answer. He had
nnt ihn .tD ia, th.,p .,,tf al
and go on. The trustees had frequent meet
iings in regard to the matter. and knew what
suit with them, He informed them Of the facts
GGsveelopcSd by hts examination, He denied that
OF n receiver. He had not advised against such
proceeding. Mr. Best said that he. had oh.
the assets of the company by consultation with
W. T. Allen. j. $. Lowrey. and =. $. Conant,. on
his hands. Part OF the securities of tho company
wore sold % some of these gentlemen at private
sale. lnt MIR, Best claimed the the prices OBJ
some NJ the seeuriti les have since sold at much
higher rate. Mr.. Best said he sold all the Sc
snG them largely in papers that reached
Investors. In some cases he said he had been
them from sacrifice He had reported tho
names Of al the purchasers. Mr. Best said
SOS 900 o. dhicsso and Eastern Pa Pacific fi first
, sSn1s AZ y PER sent said Of III hsr ace
isi.ea that 1t was fair price ut the time. The
highest previous pr &c he had heard OF was -.
witness believed these bonds Were bought in by
some Of the trustees of the company, but he
that !, number OF gentlemen had been asso-
catei 10 buy Up these securities. There
81 Ss as Fst f GF taS
many sold IT rriyat? sale to Comnodore Gar;
NHlt Dad nj has In hn find
was Commodore Garrison who already owned
more than 90 per cent. OF the stock.
owha, was the necessity Tor selling the, securite,
ny the Court to sell these securities i" pay
2Hg IT, order for the sale was based nhe aprli'a
9-WaSt At" was ""I lie immediate and pressing necessity
that induced To apply for the ORDER A-To pay the
Eva, ,,srs any Intervention by The creditor. asking
t. the oliic, isily for payment advertised the "le in
Q.IYou had assets of recognized marke, value' A.
Very tsw Of the assets hal recosnizea ,arte value
cent. United states bonds were there mott Ayes;
p9rhsrS wery nnety@ne first TortsHge bond: Of the
rsS fnS"a A 6 ,Ss T., rc
o-Bnt you paid the dividend in January, ard these
say that sfter the depositors had received -
rities in the depressed condition Of the market, A.
They Were pressing me for payment for the balance Of
QDo think it WAS wss exercise Of your di.srs
vains' Al sold the .esuriiies ior than ihrr had
regarded rs good by some of the best informed men
Q-Dii it 50 happen that the gentlemen YOU consulted
10 the value Of those s.cur.s were the ones who
to sell these securities; A-No sir, they never re
'Q-I see yoa hai ca.h in hand, s777o; in ,he shoe
sSnk. sia.ao4 y Tho N.rs,an,; h"ne si". IN he
and this cash and those nogssss on real estate It did
not require any grent exercise of discretion To r,sl
'T II r hs cS os "I pFaS'Sn
Q-Al that remained Tor You to do waste exercise
sound md ws 10 M II ns or nH;
nsd msrk a ; MIN, "a, ,ns ims H a., rr Of su,
to rel for .aa nr %yMT m
' on aSs '"I INsS az h".e lie
a h MTrf to- "Ss Ys S' s
Charles +, orvs. who was one OF the official
bank and insurance examiners at the. time
insolvent testified that in his opinion that
company was perfectly solvent at the time Mr.
MIR. Best had made tho company appear to be
Il sn With thats IS the
4 ~ surpius OF $4,000, and showed, when
the cSd have '2 Been 'Ga
clurcd insol vent by the same m"thodS
Mr.. Best had employed to show that The Ma
of tho opinion that the directors might have
either reduced their capital or made up the
deficiency and Como on with the business until
the value of their securities was restored in
stead of letting those securities be sold ut such
"A sacrifice. He could not explain why Bank
Superintendent Lamb appointed Mr. Bnst to
examine the trust company instead Of employ
ing one Of the regular bank examiners, Mr.
Orvis Snid no was positive that ut the time Mr.
Best took hold Of the National Trust Company
as receiver, the institution wns not insolvent
and that it was wrecked by Mr.. Best, lie es-
timat.d that $3.50 would havo been II fair
allowance for thorough examination OF tho
institution.
Darius il, Mangum who was President Of tho
National Trust Company at the time it was
declared nsolycnt testified that the first no
know of Mr. Best was when that gentleman
walked intolthc Office with authority to examine
the institution. The trustees had meeting
and appointed Judge Allen, Mr. Conant. and
Mr.. LoWery to consult with Mr., Lamb as to the
best course. Tho next thing he knew was that
those gentlemen had agreed 70 the ppontment
of Mr.. Br-t IA receiver lie. snid he WAS
positive that the resources of the company
| wcro at that time ample to pay not only al the
depositors. but 10 nearly pay tho stockholders,
| Iic said that Mr.. Bo5t got hold of 100000 in
| cash, and there was about Il million dollars Of
good assets besides He attributed the prccip-
| itaton Of the antiquities Of the company to the