14041. International Trust Company (Jersey City, NJ)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: February 11, 1878
Location: Jersey City, New Jersey (40.728, -74.078)

Metadata

Model: gpt-5-mini
Short Digest: 966a23b8

Response Measures

Full suspension, Books examined

Other: Later criminal indictments of officers; examiner's report and likely appointment of receiver noted.

Description

Articles report a run/withdrawals following failures of other Jersey City banks that led directors to seek Chancellor Runyon's protection; the company was restrained (suspended) on 1878-02-11 to wind up business. Examiner's report (June 1878) shows insolvency and probable appointment of a receiver; officers later indicted (1879). Closure/winding up rather than reopening is implied.

Events (4)

1. February 11, 1878 Run

Cause: Local Banks
Cause Details: Heavy withdrawals following failures of the Jersey City and Dime Savings Banks and general distrust; steady daily drain on deposits
Measures: Directors applied to Chancellor Runyon for an order restraining the company and to wind up affairs; court ordered no payments without approval and appointed a special master to examine assets.
Newspaper Excerpt: the suspension is caused by withdrawal of deposits... since the failure of the Jersey City and Dime Savings Banks, there has been a run on the International
Source: newspapers

2. February 11, 1878 Suspension

Cause: Local Banks
Cause Details: Directors petitioned the Chancellor to restrain business because they could not safely meet withdrawals without great sacrifice of assets; much of assets in mortgages and illiquid real estate.
Newspaper Excerpt: The International Trust Company... suspended business yesterday, under an order from Chancellor Runyon.
Source: newspapers

3. June 15, 1878 Other

Newspaper Excerpt: Washington B. Williams, Special Master in Chancery, filed... his report of the condition of the affairs... probable that a receiver will be appointed by the Chancellor. The report shows assets insufficient and large losses from real estate investments, implying winding up of the concern and likely permanent closure of the bank's operations.
Source: newspapers

4. May 6, 1879 Other

Newspaper Excerpt: Indian Commissioner Hoyt and two other officers of the suspended International Trust Company, of Jersey City, were indicted there yesterday for conspiring to defraud depositors.
Source: newspapers

Newspaper Articles (12)

1. February 12, 1878 The New York Herald New York, NY

Article from The New York Herald, February 12, 1878

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streets, Jersey City, was closed yesterday by an order of Chancellor Runyon. The application was made by three of the directors, Ezra A. Hoyt, Charles D. Deshier and Bennington F. Randolph. There is a surplus of $124,000, but the difficulty is that the assets are largely invested in mortgages which cannot be called in quickly. The Chancellor declined to appoint a receiver, as all the deposits will be paid with interest after a little time. The directors who made the application were actuated simply by a desire to wind up the business of the institution in an honorable way, and thus anticipate any "ruu" that migut be caused by the general distrust and depression of the times. The following is the Chancellor's order:In Chancery of New Jersey.-Between Ezra A. Hoyt. Charles D. Deshier and Benningtou F. Rundolph, complainants, and the International Trust Company. defendants. on bill, &c. The complainants in this suit having filed their bill to secure an equitable distribution of the assets of the corporation among the depositors and creditors of the institution and others, if any. entitled thereto, and praying the aid of this Court in the premises. from which bill it Kppears that the assets of the above institution, consisting of cash in bank and in office. bonds and mortgages and real estate, other louns and investments and accrued interest, amount in the aggregate to $315,572 13. and that there are due depositors $154,383 19, and for loans $37,100, in the aggregate $191 433 19. It is ordered by the Chancellor, in view of the particular matters in said bill set forth, and especially the fact that it is impossible for the said institution to Day its depositors and others, the creditors at this time, without great sacrifice of its assets and greatly endangering its ability to pay all such its depositors and creditors in full, that the said institution and the officers hereof do. until the further order of this Court. abs olutely desist and refrain from paying any of the moneys of the institution or disposing of any of its assets to any person or persons whomsoever, except for current expenses, including salaries of secretary and janitor and rent of office, such expenses. however, to be paid only on the approval of Mr. Jacob Weart, one of the masters of this Court. until the further order of this Court. it is further ordered that Mr. Washington B. Williams. one of the special masters of this Court. do torthwith enter upon and make a complete examination of the assets and ities of all kinds and descriptions of said institution, and as to the just management of the affairs thereof, and report without unnecessary delay to this Court the result of such examination. with a schedule of said assets giving their present value, and a schedule of the amounts que or to grow due from said institution to depositors and others having claims against it. THEODORE RUNYON, C. FEBRUARY 11, 1878.

2. February 12, 1878 The New Orleans Daily Democrat New Orleans, LA

Article from The New Orleans Daily Democrat, February 12, 1878

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SHERMAN'S WORK. Closed Business. JERSEY CITY, Feb. 11.-The International Trust Company closed business to-day and will probably pass into the hands of a receiver. The company claims to have a surplus of $124.600 over all liabilities. The suspension is caused by withdrawal of deposits. The International Trust Company Snspension. JERSEY CITY, Feb. 11.-Chancellor Runyon this morning issued an order restraining the International Trust Company. of Jersey City, from doing any further business. The bank has not failed and has a surplus of $124,000 over all liabilities of whatever description. The trouble is that since the failure of the Jersey City and Dime Savings Banks, therelhas been a run on the International. and its securities consisting largely of bonds and mortgages, the directors could not realize upon them readily, and so could not meet the steady daily drain. Under the circumstances they thought it best to seek the aid of the Chancellor. as was done in the case of the Newark Savings Institution. No receiver will be appointed and the officers of the company will be allowed to wind up its affairs. All depositors will be paid in full.

3. February 12, 1878 New-York Tribune New York, NY

Article from New-York Tribune, February 12, 1878

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BUSINESS EMBARRASSMENTS. THE INTERNATIONAL TRUST SUSPENDS. A JERSEY CITY CONPANY TO WIND UP ITS BUSINESS -A SURPLUS OF $124,000. The International Trust Company, at Montgomery and Washington-sts., Jersey City, suspended business yesterday, under an order from Chancellor Runyon. The order was applied for by some of the officers of the bank, who, although there IS a large surplus, do not believe the bank could stand a heavy run, or safely continue paying its depositors on demand. The application was made by Judge B. F. Randolph, E. A. Hayt and C. D. Deshler. who state that the assets in mortgages, loans and property amount to $315,572 13, the liabilities $191,433 19, due depositors, $154,333 19, and loans, $37,100. There is a surplus of about $124,000, but much is in mortgages and cannot be quickly called in, therefore the Chancellor grants the petition, and orders nothing to be paid out without an order from the Court. Special Master W. B. Williams is ordered to examine into the affairs and management of the bank.

4. February 13, 1878 The New York Herald New York, NY

Article from The New York Herald, February 13, 1878

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INTERNATIONAL TRUST COMPANY. An investigation into the condition of the International Trust Company of Jersey City, which has just suspended, shows that the depositors are completely secured. The charter was granted by the Legislature in 1868, under the title of the International Life and Insurance Trust Company. No use was made of it, nowever, till 1870, when a supplement was passed giving power to receive money, Day interest and other privileges accorded to savings banks. Then the company commenced business. After a few months the insurance business was abandoned and the policiès were transferred to the United States Lite Insurance Company. As a purely banking concern it was a success, some of the stockholders advancing large sums in addition to the moneys of depositors. The investments were chiefly in real estate, and but for the depreciation in the value of property the institution could have maintained a flourishing business. The 'run" on the bank some time ago forewarned the directors, and 11 wasthen feared that if the drain on the bank should continue sudden foreclosures would be necessary, and the property involved might not realize the amount of the encumbrance at a forced sale. Under the order of the Chancellor no claims are to be satisfied till the depositors are paid off. There will be a surplus of several thousand dollars to meet all other claims.

5. June 15, 1878 The New York Herald New York, NY

Article from The New York Herald, June 15, 1878

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INTERNATIONAL TRUST COMPANY. HEAVY LOSSES THROUGH REAL ESTATE INVESTMENTS-PROBABLE WINDING UP OF THE CONCERN. Washington B. Williams, Special Master in Chancery, yesterday filed with Chancellor Runyon, of New Jersey, his report of the condition of the affairs of the International Trust Company, of Jersey City. This institution was chartered as a life insurance company. as well as a bank of deposit, and most of the investments shown on the examiner's report were taken during the continuance of the lite insurance business prior to 1872, when that branch was closed by transter to the United States Life Insurance Company, and since then the business conducted by the institution was simply receiving deposits and making loans on collaterais and mortgages. The business was not conducted as a savings bank and there are no investments of the kind a savings bank is required to hold. A capital stock having been paid in the directors considered themselves entitled to act as a private banking institution and loan on any kind of security they chose, with the View that any loss would tall necessarily on the stock and not affect depositors, The depression in real estate has been gradually diminishing the assets ever since 1872, and has resulted in a loss of all the STOCK, and probably a considerable loss on deposits. In February last the directors of the bank made application to the Chancellor, setting forth that while their books showed an apparent surplus of $130,000 over their liabilities 10 depositors 11 would be impossible to pay all claims on demand at that time without great sacrifice, endangering their ability to pay in full. The examiner has worked since February and his report, fred yesterday, shows the actual liabilities amount to $177,476 05, exclusive of some interest, of which $82,100 are secured and must be paid In full, being loans due the United States Lite Insurance Company and the Second National Bank of Jersey City. There are some contingent liabillies on guarantees which may never amount to anything and are not taken into account. The assets at their present estimated values are as follows:Mortgages $20,500 00 Real estate. 65,500 00 Bills receivable and balances due on stock subscriptions 47,980 02 Furniture, &c 780 00 5,037 03 Accrued interest to January 1, collectable. Cash 7,028 01 Total $146,825.06 The morigages are on property in Oswego, N. Y., Yookers, N. Y., and Westfield, N. J. The real estato consists 01 property which the bank has bought in on foreciosure and 18 situate in Oswego and Westchester county, N. Y., Bethlenem, Pa., and Union county, N. J. 11 IS probable that a receiver will be appointed by the Chancellor.

6. June 17, 1878 New-York Tribune New York, NY

Article from New-York Tribune, June 17, 1878

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THE INTERNATIONAL TRUSTS CONDITION. A. B. Williams, Master in Chancery, filed his report Saturday, upon the suspended International Trust Company of Jersey City. The actual liabilities aggregate $177,476, exclusive of interest due. Of this amount $32,100 is secured, being loans due the Second National Bank of Jersey City, and the United, States Life Insurance Company of this city. There are also some contingent liabilities on guarantees, W hich were not taken into account, Mr. Williams believing they will never amount to anything. Mr. Williams estimated the assets at $146,825, including mortgages, $20,500; bills receivable and due on stock subscriptions, $47,980; real estate, $65,500.

7. May 8, 1879 The Cincinnati Daily Star Cincinnati, OH

Article from The Cincinnati Daily Star, May 8, 1879

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the world, will not sail to-morrow, as was first announced, and no definite day has yet been fixed for that purpose. Five hundred persons had promised that they would go on the expedition, but only forty have as yet paid the necessary deposit. The steamship can not sail with less than two hundred, to pay expenses. TWENTY FOR TALMAGE. Twenty of the Brooklyn Presbyters have announced that they will vote to acquit Mr. Talmage, and ten that they will vote to convict him. Fourteen have not yet exp pressed their opinion. INDIAN COMMISSIONER HOYT INDICTED. Indian Commissioner Hoyt and two other officers of the suspended International Trust Company, of Jersey City, were indicted there yesterday for conspiring to defraud depositors. FAILURE OF WHITEMORE, PEET, POST & CO. Notice was given yesterday by Whitemore, Peet, Post & Co., one of the oldest dry goods and woolen commission houses in the city, that it was unable to meet its obligations. Liabilities, $500,000. FAVORING PROTECTION. NEW YORK, May 8.-In the paper delivered before the Iron and Steel Association, and printed here to-day. A. B. Stone makes an earnest argument upon the good effects of a protective policy, and gives some interesting statistics to show that agriculture, especially in the growing West, is indirectly stimulated and advanced by the development of all manufactures, particularly by the development of the manufacture of steel and iron. SEVEN BOYS MISSING. Seven boys from five to twelve years of age from various directions in this vicinity are reported missing to-day at police headquarters.

8. May 9, 1879 New-York Tribune New York, NY

Article from New-York Tribune, May 9, 1879

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FRIDAY, MAY 9, 1879. THE NEWS THIS MORNING. FOREIGN.-Parole won the Cheshire Stakes yesterday, defeating Reefer, the favorite. The Afghan Ameer has arrived at the British camp. = The Khedive has decided to refuse the French and English demands. - A Nihilist printing press has been discovered in a Government office at St. Petersburg. DOMESTIC.-A banquet in honor of Minister White was given at Syracuse last night; there were 250 guests at table. The National Colored Convention at Nashville proposes to organize a permanent society for the protection of the colored The Socialists at Chicago declare that man. there is to be a. great strike this year. = The jury at Belvidere, N. J., has declared exSenator Cornish guilty. = The Pope has appointed the Very Rev. Lawrence S. McMahon Bishop of Hartford and the Rev. John Vertin Bishop of Marquette. In the Assembly yesterday several sections were added to the Street RailThe Episcopal Convention at Philaway bill. delphia has condemned Ritualism by 125 majority. CONGRESS.-The Senate passed the House bill yesterday to enlist 750 boys in the Navy annually; the question of giving Spruille Braden a place among the ensigns of the Navy was debated at much length, many Republicans opposing it : Senator Morgan advocated the Caneus Army bill in a speech three and a half hours long; Mr. Edmunds will speak to-day. In the House, the bill to enforce the Eight-Hours law was killed by a vote of 52 to 103; the Silver bill was debated by Mr. Fisher, Mr. Kelley, Mr. Mills and Mr. Chittenden; Mr. Kimmel offered an amendment that the silver dollar contain 460 grains; Mr. Chittenden's speech was applauded. CITY AND SUBURBAN.-Mr. Talmage was acquitted of the charges of falsehood and deceit by a vote of 25 to 20: Dr. Van Dyke made an appeal and Mr. Talmage delivered a characteristic speech. Indian Commissioner Ezra A. Hayt, the indicted President of the suspended International Trust Company, of Jersey City, was held for trial. Notrace has been discovered of "Red" Leary, the escaped bank burglar. It is estimated that $270,000 of the liabilities of Whittemore, Peet, The Post & Co., are due to New-York banks. English cricketers defeated the American team by a score of 253 to 139. Gold value of the legaltender silver dollar (41212 grains) 84.59 cents. Stocks active, and after opening weak improved and closed strong. THE WEATHER-TRibunn local observations indicate cloudy weather, possibly followed late in the day by increasing cloudiness. Thermometer yesterday: Highest, 69%: lowest, 48°; average, 58°.

9. May 9, 1879 New-York Tribune New York, NY

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LOCAL MISCELLANY. A BANK PRESIDENT INDICTED. EZRA A. HAYT, OF THE SUSPENDED INTERNATIONAL TRUST COMPANY, HELD FOR TRIAL. Just before the Hudson County Court at Jersey City adjourned yesterday afternoon, Indian Commissioner Ezra A. Hayt, president of the suspended International Trust Company of that city, entered the court-room, accompanied by the Hon. Charles Siedler. Judge Garretson presided. DistrictAttorney McGill read the indictment, which sets forth that Mr. Hayt, as the president of the International Trust Company, and also as one of its directors, on March 1, 1879, published a statement that the International Trust Company of Jersey City had a paid-up capital of $200,000 for the security of its depositors, when he well knew that the statement was false. When Mr. McGill finished reading the bill. which contains two counts, Mr. Hayt pleaded not guilty, and Judge Garretson placed his bail at $5,000. Mr. Siedler became his bondsman, and Mr. Hayt left the court-room and returned to this citv. His friends in Jersey City declare that the indictment was made through political motives, and that a body of men in Washington are persecuting him. Ex-Governor Bedle, William Muirheid and Flavel W. McGee, of Jersey City, have been retained as his counsel. F. D. Karr and C. M. Field, the other indicted officers of the company, will probably be arraigned to-day. Owing to the engagements of Presiding Judge Knapp, the indictments will be tried before Judge Garretson in the Court of General Sessions.

10. May 13, 1879 Daily Press and Dakotaian Yankton, SD

Article from Daily Press and Dakotaian, May 13, 1879

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COMMISSIONER HAYT INDICTED. Through the disposition of most of the newspapers to cover up the crooked transactions of Indian Commissioner Hayt, the public has not been apprised of the fact that he was, on Tuesday, May 6th, indicted by the grand jury of Hudson county, New Jersey, for the distinguished part he has taken in defrauding the public through the medium of the International Trust company, of Jersey City, of which he was pres. ident. The New York Sun of May 7th gives an account of the operations of this wonderful reformer and of his indictment by the grand jury, as above stated. The International Trust (mpany, of which Commissioner Hayt was president, was organized in 1869 as a savings institution and a life insurance company. The developments show that Commissioner Hayt exercised absolute control over the investments and operations of this company and during all the years of his management it never did anything but lose money-the people's meney not Hayt's. In 1873 the life insurance business of the concern was abandoned and by this change the assets of the savings institution were 80 impaired that it was from that time in a condition of practical insolvency. Notwithstanding the dangerous shape of its financial affairs the bank continued to take in the savings of depositors until about a year ago, when an official investigation betrayed its rottenness and the institution went to the wall, leaving, after a payment of thirty-five per cent to depositors, $175,000 still due to the poor people who had placed their earnings within its vaults. The charges among other things, recite that Commissioner Hayt advertised the entire solvency of the bank, and invited deposits from children and laborers, when he knew it was insolvent; that the company of which he was president received deposits up to the day the bank closed its doors, when the examiner's report had previously shown that it was an insolvent concern; that an appearance of soundness was kept up by the use of notes and other papers borrowed by Commissioner Hayt for the purpose of covering up deficiencies. These are a few of the points in the criminal action brought against the Indian commissioner. They are of a particular interest in this locality, the abiding place of a number of honest men and faithful public servants whose characters bave been ruthlessly assailed at the instance of Commissioner Hayt and who are now resting under the ban of his unfounded charges. Our sense of right and of justice, in the light of the past events, teaches us to believe that every man is innocent until he is proven guilty, and we do not deny that even the commissioner of Indian affairs is entitled to a suspension of public judgment until the end of pending trials is attained. But as he has judged other men, 80 will he be judged, now that misfortune has overtaken him. Cold hearted, cruel and suspicious himself, and having excercised these qualities to the utmost limit of the power he possesses, he can hardly expect from an outraged public the same degree of clemency which would be extended to a man who had done less to provoke retaliation-who had permitted a little of human sympathy and of human kindliness to enter into and neutralize the harshness of arbitrary official acts. Commissioner Hayt'sresignation has been expected for some time past, but as it is net forthcoming now that the indictment is made, it would be well for the interior department to apply to him a vigorous dose of his own bitter medicine. Upon the unsubstantiated charges of Gen Hammend, (who, by the way is another de funct savings bank hero) he removed, and by bayonet force expelled from the Indian conntry, several of the most competent ano honorable Indian agents in the service of the government, and seized their private proper ty. Though legal investigation has show these charges to be untrue he has made no even the recompense of a confession of hi error, but insists that courts and juries an public sentiment have corruptly intercede in behalf of his innocent victims. It would we say, be a righteous judgment, to apply Commissioner Hayt the same pitiless ru he has 60 often invoked in his dealings wit his subordinates. Though Commissione Hayt is now no more unfit for the position b holds than he was before the indictment W made, the knowledge of his sins renders h a scandal in the eyes of all nation he is of no particular value to th could be well enough spare has yet done is to make a gre this, the public will no sham than realit

11. June 17, 1879 New-York Tribune New York, NY

Article from New-York Tribune, June 17, 1879

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LOCAL MISCELLANY. # INDIAN COMMISSIONER HAYT'S DEFENCE. # TESTIMONY GIVEN AT THE TRIAL OF INDICTED # BANK OFFICERS IN JERSEY CITY. The trial of Indian Commissioner Ezra A. Hayt, the president, Francis D. Karr, the secretary, and Charles M. Field, one of the directors, of the suspended International Trust Company, on a charge of publishing and circulating false statements in reference to its assets, was continued in Jersey City yesterday. District-Attorney McGill, in reply to the motion made by ex-Governor Bedle to have the Court direct the jury to acquit the defendants, contended that the State had proved the indictment; that the evidence showed that while the company advertised that it had a paid-up capital of $200,000 for the security of its depositors, over $28,000 of the capital was in the shape of notes. The wording of these notes showed that the money represented by them was not considered as paid in. Mr. McGill alleged that the defendants induced hard-working, honest persons to intrust money to their keeping nder representations that were wholly false, and conducted the business of the company with an utter disregard of common prudence and integrity. Judge Garretson overruled the motion to direct the jury to acquit the defendants, and Flavel McGee opened for the defence. The first witness was E. C. Delevan, formerly one of the directors of the company. He testified that he was a lawyer in this city, and was the official counsel of the company when it was organized. He advised the giving of notes to supply the original capital of $100,000, and considered that in law it was a payment of the capital. Francis D. Karr, one of the defendants, testified that at the time the company suspended he was the secretary and one of the directors. The "copy" from which the tape measures were printed was written by him. By the statement on the measures he meant that the International Trust Company was the only savings bank in the State with a capital of $200,-000 for the security of its depositors. He considered the $50,000 represented by the notes as so much paid-up money. At the time the company suspended he had $800 on deposit, and also $300 of a church fund of which he was the treasurer. Mr. Havt had $1,200 on deposit of his own money and $3,000 of funds of which he was trustee. On December 31, 1876, the capital of the company was impaired to the extent of $58,229, and in July, 1877, the impairment was $75,861. By impairment of capital the witness meant the stock was below par. He paid his stock subscription in cash, and he still believed that the unconverted assets of the company would pay all of the obligations. Commissioner Hayt then testified that he understood by the tape measures that the company had a paid-up capital of $200,000. He did not intend to misrepresent the affairs of the institution by circulating the measures. The notes for $50,000 of the capital were taken by the advice of ex-Chancellor Zabriskie and E. C. Delevan. He never attempted to stop the circulation of the measures as an advertisement. Ex-Congressman Hardenberg, the president of the Hudson County National Bank of Jersey City, testified in reference to the value of property at Union Landing, Ex-Chancellor Williamson, formerly one of the directors of the company, testified that when the company was organized he paid a pertion of his stock subscription with a note. This note he paid in 1874. He had no doubt that all the notes given for stock subscriptions when the company was organized were good. Within the last six months ex-State Senator Noah D. Taylor, who gave a note for stock, had become insolvent. At the time the company suspended the witness had $300 on deposit, his son had $1,300, and his wife $13,000. Charles M. Field, one of the defendants, who is a member of the firm of Field, Morris, Fenner & Co., the auctioneers, of New-York, testified that he knew nothing of the circulation of the tape measures. At the time the company suspended he had nearly $8,000 on deposit belonging to the United States Dairy Company, of which he was the treasurer. E. F. C. Young, cashier of the First National Bank of Jersey City, testified that up to last October the Hon. Noah D. Taylor was considered solvent. James C. Clinton and Gilbert E. Parsons testified to the value of property owned by the company. Their estimates were much larger than those of Examiner Williams. The case will be continued to-day.

12. June 18, 1879 The Sun New York, NY

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BANK OFFICERS ACQUITTED. END OF COMMISSIONER HAYT'S TRIAL IN JERSEY CITY. he Struck Jury Find Ifm and Messrs. Karr and Field Not Guilty of Misstating the Amount of their Bank's Paid-up Capital. Mr. John R. Dospassos began the sumning up for the defence of President Hayt, ecretary Karr, and Director Field of the International Trust Company of Jersey city ten minitem before-11 o'elock. Two of the defendants, said. although residents of other States, ame promptly to New Jersey when summoned. 'hey had thrown open their office and their ooks to the free inspection of the Public Prosecutor. The tape measure containing the ssertion that the company had $200,000 of aid-up capital for the security of depositors vas not authorized by a resolution of the Board, Directors, and there was no proof that either the defendants was present when it was aken out of the bank by any of he witnesses or other depositors. The lirectors had ventured money in real state. That their business proved a losing one vas not a. proof of dishonesty. If the stockolders meant to defraud, why didn't they put the valuation of their real estate on their books, and go on? Why did they allow their ooks to show a deficiency, and then volunarily call in the Chancellor ? To convict these three defendants the jury, Mr. Dospossos said, vould have to believe that they sat down and consulted about the issue of these tapes. Two of the three had sworn that they were not concious of any wrong doing, and Mr. Field testiled that he had known nothing whatever about he tape. Williams. the examiner appointed by Chancellor Runyon. had testified that no fraud the part of the company could be discovered rom its books. President Hayt had not reeived a salary since 1878. but had given careul attention to its affairs, and an examination vould show that beyond the first investments real estate. made in the flush times when everybody believed they were good, the affairs of the bank had been very successfully managed. The only persons legitimately interested the prosecution were the stockholders. The lepositors were not interested at all. because hey would be paid back every dollar of their noney. Ex-Gov. Bedle told the struck jury thatthecompany had been organized in 1868 with as good naterial for business and integrity as could be zot, that it was hoped it would be able to cope with some of the larger life insurance companies in New York. Three of the directors were gone to their reward, but had left behind hem the fragrance of good names, both in busihess strength and in integrity. He thought it hard to use against Hayt and Karr and Field ust what Chancellor Zabriskie, Hosea F. Clark. nd Blakeley Wilson had done. These men had been directors of the International Trust Company, and, like the defendants, had given heir notes in payment of capital. After a few years the company ceased to do A life insurance business. but its savings bank department was continued. In 1877. finding that their liabilities ncluding those to the stockholders, were in exess_of their assets. and it then being a time of panie among all savings bank depositors, they resolved to suspend business. They did not want the larger depositors, who are usually nore alert than the smaller ones, to draw out heir deposits and leave the others in the lurch. Washington B. Williams was appointed by Chancellor Bunyon to examine the bank's affairs. He represented the Chancellor. and vas therefore a judge. He was appointed to Ind out the worst. He found out the worst. and reported it to the Chancellor. and the Chancellor knowing the worst allow.