The Panola weekly star. (Sardis, Miss.) 1882-18??, 1886-02-13
vHe aHAar rvHo

sala the Fssssst stssHs N the wsbash
Tss#@s FefE#isx tire fssls ~ Ire t#sssssH
FHHA.stseseHaf Hefssa's tlsssssfe@ aiIli
itss fiss Years 70 ftwH.
NEw YpHk, Feh s--The resolution
passed Al The meeting ai the Grant tand
contributor on October ~, taking the
management u the tand oal n NE
hands u ueufae Jdnea and appointing
the United siatss Trust Company tfus
tee ~ the fund, produced the immediate
Impression IN The public mind that
thereafter I'll wpnf he smooth sailing
Nevertheless, anAH has been atfuek
which promises 20 Hfave ~ awkward
ane u will he remembered that that
nitatlnn was not NJ Grst harmonious"
Jay Oauld and George Jones' becoming IN.
yolved In fat contributions, bnt dr0tge
Jones managed ta-evplaln that he had
Invested s2iG,11 NJ the fund in Wabash
consolidated mortgage bonds, worth nj
par only siss,n0o, the purchase having
been made from Governor Morgan who,
In consideration of an additional premium
0f two and one.half per cent, guaranteed
principal and interest at seven per cent.
Tor ten years. George Jones did not
prove good hand nj explaining hnan.
cIal transaction, and Henry Day kindly
camo to his relief by telling all about the
guarantee, Informing the contributors
that II was perfectly good and that
the excess Of interest over that of an or.
dlnary investment would soon work down
the premium Of $3.50 and 80 on. 0l.
iyet Hoyt expressed his regret that by his
advice, sS2 900 Of the fund had been In.
vested In Nlckel.Plate first mortgage
bonds, hut said that he would al any time
give cash for the investment. The m.
shot OF the meeting was that Judge Noah
Davis and Henry Day were appointed
committee 10 draw up deed OF trust aud
appoint the United States Trust Company
the trustee Of the fund. When the deed
Of trust had been prepared, John A,
Stewart, President Of the United States
Trust Company, fatty refused to allow
The company 10 assume the re.
sponslble position Of trustee
with such securities, and suggested
"clean cash" In lieu thereof. oliver
Hoyt replied promptly that he would
substitute s92 900 In cash for the Nickel
Plate bonds. But the harasslng question
was what TO do with the eiss,00 Of
Wabash bonds. They had defaultcd In
the payment Of their interest for several
months. Recourse was then had 20 the
guarantee Of Governor Morgan TO ascer.
tain II through that the principal, the
slse, 900, could be recovered The guar.
antee provides that II within the specI.
fed period Of ten years the bonds should
become due, the bonds should be repur.
chased for the principal, with interest
up 10 the time Of the demand. Nv
the terms Of the mortgage under
which these Wabash bonds are issued
they become due six months after a de.
fault In the payment OF interest on any of
the bonds, provided that majority of tho
owners Of the outstanding bonds declare
In writing that II Ia their desire that the
bonds shall become due. But a majority
Of the boDdbolders have not, IN writing,
expressed their desire that the bonds
shall become due. The executors Of the
Morgan trust, therefore, contend that tho
bonds are not legally due and that they
can not, In the proper discharge OF their
ttbHAf tfttHttN tft ElNNFttN VI uU1uf NUiu
by Governor Morgan TO the Grant fund,
unless the courts decide that the bonds
are legally due, at least TO the extent of re.
gniring the enforcement Of the guarantee.
They have suggested that friendly suit he
brought 10 test the question, and that
course Us at present under discussion.
Mr.. Jones was aware VI this technical oh.
lection 10 reclaImlng the bonds under the
guarantee as far back a. August, hut for
reasons best known 30 himself said moth.
Ing Of II at the meeting Of the contrlbu.
tors In October. Mr.. Hoyt was 10.
dignant when he heard Of the objection
and cited letter written by Henry Day,
one Of the executors Of the Morgan es.
tate, published In the Tribune some time
before General Grants death. In which
Mr.. Day saidi "Eyen n any flaw could
be found In the guarantee from legal
point OF view, under no circumstances
would the executors repndlate Governor
Morgan's written promise which he him.
self regarded as sacred obligation"
Mr.. IIoyt thought this statement rather
inconsistent with the present attitude Of
the executors Of the Morgan estate. n
the friendly suit IA brought and the decl-
sion does not compel the retaining of
the bonds under the Morgan guarantee,
then another meeting of the contributors
win be called TO arrange for the appoint.
ment of other trustees. Messrs. Jones
and Hoyt are stlll eustodians Of The fund.
II Is conceded by Mr.. Hoyt that there Ia
no likelihood that majority Of The bond.
holders will aak that fhe bouds he IA
clared due before the expiration Of the
Morgan guarantee, on March J., 1891
Then the bonds win have no more than
there market value. The bonds mature
In 1892 The effort that Messrs. Jones
and Hoyt are now making 10 get siss, 900
IN cash, outstanding that the guaran.
tee lnsures a payment Of seven per cent.
for Ave years longer, seems IN admission
that the investment was badly planned.