New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-02-04
STILL TRUSTEES or TUE GRANT Fund.
srLF-ArpoINTED TRUSTEES" STILL IN PRt-
DICAMENr.

srrF-.ppOINTED "TRCSrEFS' STILL IN PRt-
DICAMENT.
The resolution passed at the meeting of the
Grant Fand contributors on October %, taking the
management Of the fund out OF the hands of George
Jones and appointing the United States Trust Company
t1usee of the fund.- producef the immediate impression
Oh the public mind tLat thereafter all would
be smooth sailing. Nevertheless IA snag has
been struck which promises to prove an
awkward one II will he remembered that that meeting
was not at first harmonious" Jay Gould and George
Jones becoming involved in fat contradictions, but
George Jones managed to explain that lie had invested
$4,000 Of tho fund in Wabash consolidated mortgage
bonds worth ut par Ory $lSSOOO the purchase havlh-
been made from Governor Morgan. who, in consdera
ton Ofan dilonal premium of pig per cent guaranteed
principal amt interest att per cent for ter years Geor
Jones did Prove a good hand at explaining fnail
cial transaction, and Henry Day kindly came 10
his reet by telling all about the guarantee. informing
the contributors taa 1t perfectly GOOD ana that the
excess of ordinary inves mcnt
would work down The premium OF $2sOOO' ana 81
on Ohvcr Oyt express his regret that by his advice
$50 900 OF the fund had boon invested in Nickel Plate
first mortgage bonds but said that lie would at any tine
give cash for The ushot of the meeting
was that Judge Noah Davis and Henry Day We're ap-
pointed committee draw up deed of trust, appoint
ing the United states Trust Company the trustee OF tho
fund.
When the deed of trust had been prepared John A.
Stewart president of the United States Trust Company
naty refused to allow the company 10 assume the re
sponsbe position of trustee with such securities and
suggested " clean cash in lieu thereof oliver Ho!t
replied promptly that lie would substitute $4,000 IN
cash for the Nickel Plate bonds But the harasSing
question was what 20 do with the $lssOOO of wabash
bonds They had deaulted in the payment OF their III
,erest for several months Recourse was then had to
the guarantee of Governor Morgan to asccr
tain if through that the principal, $lsS,0OO
could lie recovered The guarantee provides
that If within the specified period OF ten
years the bonds should become duo the bonds
should be repurchased for the principal with interest
up 10 the time of the demand
BY the ter of the mortgage uudcr which these Wa
bash bonds issued they due six months after
default in tue payment Of interest any OF the bonds
provided that majority OF the owucrsof the out
standing bonds declare in writing that 1t Is
their deslre that tho bonds snail become
due. But majority OF the bondhoders
have not, in writing, expressed their desire that the
bonds shall become due. The executors OF the Morgan
estate therefore contend that the bonds not legally
due and that they cannot in the proper discharge OF
their trust reclaim the $lSsOO0 of ponds sold by Cover
Morgan the Grant fund unless the courts decide
the bonds legally due at least TO the extent
quriug the enforcement of the guarantee. They have
suggested that friendly suit he brought TO test the
question and that Is at present under discus
Mr. Jones wa, aware Of this technical objection to re-
aiming the bonds under the guarantee as far back as
iuthlug OF 1t at the meeting OF the contributors IN
October. Mr.. Hoyt was indignant when he
heard Of the objection and cited letter
wren by Henry Day. Of the executors OF the Nor
Gan estate, published THE TRIBUNE time before
General Grants DEATH III which Mr. Day said: Even
any could be- found in the guarantee from legal
nniut of view undrr no circumstances wOud
tors repudlate Governor MOrCan'S written promise
winch he himself Regarded as sacred o3lSdtoh' Mr'
IIOyt thought statement rather Inconsistent Win
the present attitude the executors OF the Morgan
estate. Ii the friendly suit Is brought
and the decision compel the retaining OF the
bonds under the Morgan guarantee then another meet
ing contributors viii be called to for the
appointment OF her trustees M.ssrS. jon and HCyt
are still custOdins or the fund. IL conceded by
NIL Hoyt that likelihood tn majority III
the bondhotrs will ask that tie bonds ID. declared due
the expiration Of the Morgan guarantee Oh March
J. lS9l Then the bonds have more than their
market value The bonds mature IN loJ2. The effort
that Messrs. Jones and HOyt now making To get
$685. cash, nOtwith tindnI that the guarantee
isures payment of per cent for nvc years longer,
seems AN admission That the investment was badly
Planned