14287. National Trust Company (New York, NY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
December 1, 1877*
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
1cf34ed7af986ad9

Response Measures

None

Description

Contemporary articles (1882–1883) discuss the company's receivership under W. J. Best and an investigation into alleged falsified assets. Newspapers cited a run on the Trust Company on December 5, 1877 and a request by President Mangum for ten days' notice on deposits. The bank was placed in receivership and wound up rather than resuming normal operations, so the sequence is a run leading to suspension/closure and receivership. Dates for the original run and the receivership are taken from mentions in the articles; exact appointment date of the receiver is not explicitly given in these clippings.

Events (4)
1. December 1, 1877* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension/cessation of normal operations followed the run and was tied to insolvency and discovered falsified/overvalued assets under company management (D. R. Mangam implicated).
Newspaper Excerpt
Mention of the run and the company's subsequent troubles; receiver later appointed and company wound up.
Source
newspapers
2. December 5, 1877 Run
Cause
Bank Specific Adverse Info
Cause Details
Run contemporaneous with allegations of false/overstated assets and management misconduct (excessive valuations and fictitious loans under management of Mangam).
Measures
President Mangum requested that ten days' notice be given on all deposits (to limit withdrawals).
Newspaper Excerpt
Newspapers of December 5, 1877, were produced, which mentioned the run on the Trust Company and the request of President Mangum that there should be ten days' notice given on all deposits.
Source
newspapers
3. August 7, 1879 Receivership
Newspaper Excerpt
Mr. Best had on deposit in that company the assets held by him as receiver of the National Trust Company. '...upon Mr. Best's last accounting on August 7, 1879, the Court directed that the sum of $87,172.19 be placed to the credit of the action...'. (Articles 1882–1883 discuss W. J. Best as receiver and investigations into his accounts.)
Source
newspapers
4. September 12, 1882 Other
Newspaper Excerpt
The Senate Committee on Insurance resumed its work of investigating alleged abuses in receivership managements yesterday, the case of the National Trust Company being taken up. (Multiple articles from Sept–Dec 1882 recount hearings and investigations.)
Source
newspapers

Newspaper Articles (10)
1. September 12, 1882 New-York Tribune New York, NY
Article from New-York Tribune, September 12, 1882

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# SCRUTINIZING RECEIVER BEST'S ACTS. The Senate Committee on Insurance resumed its work of investigating alleged abuses in receivership managements yesterday, the case of the National Trust Company being taken up. The committee met at the office of Charles H. Russell, one of its members, at No. 52 William-st. There were present the chairman, Joan J. Kiernan, Mr. Russell and Joseph Koch. William J. Best, the receiver of the National Trust Company, and his clerk were the only witnesses examined. Little of importance was elicited from Mr. Best, who said that he was unable to remember important facts without refer-ence to his books and papers. These were with regard to the sums of money paid to lawyers by him, the receipts during his administration and the disposition of the assets of the company. Mr. Best was allowed time to ascertain these figures from the books of his office, and he promised to supply the committee with the fullest information. Hiram B. Ingersoll was briefly examined first, and testified that he was a clerk employed by Mr. Best in the latter's receivership of the German Savings Bank of Morrisania and the Mechanics and Traders' Savings In-

2. September 17, 1882 New-York Tribune New York, NY
Article from New-York Tribune, September 17, 1882

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TWELVE PAGES. THE NEWS THIS MORNING. FOREIGN.-Fort Aslan surrendered to General Wood yesterday: the commander at Aboukir announced his readiness to lay down his arms; Thanksgiving services will be held in the churches of England to-day. The Rev. Dr. Edward B. Pusey died yesterday. Hanlan has accepted Ross's challenge to row for the championship. An unknown schooner sunk near Ontario, and the members of the crew were lost. DOMESTIC.-Delegates to the Saratoga Convention were elected yesterday in the counties of Cayuga, Saratoga, Ontario, Steuben, Niagara, Schenectady, Orleans, Livingston, Yates, Ulster and Otsego; Judge Folger's home county chose Cornell delegates. Delegates to the Syracuse Convention were elected in the counties of Orange, Tioga, Steuben, Tompkins, Orleans, Oneida, Cayuga, Dutchess, Onondaga, Albany, Ulster, Broome and Saratoga. The boot and shoe factory of J. Richardson & Co., of Elmira, was burned yesterday; loss, $300,000. Serious accidents occurred on the Philadelphia and Erie Railroad near Watsontown, Penn., and on the Lake Shore Railroad near Berea, Ohio. The Republican Congressional Convention of the IIId Wisconsin District has broken the deadlock by splitting in two. CITY AND SUBURBAN.-Joe Murray, Glenmore, General Monroe, Skylark and Ike Bonham won the Coney Island races yesterday. A reception was given to the British Team at the 7th Regiment Armory. Several interesting matches were shot at Creedmoor. The Senate Insurance Committee investigated the National Trust Company receivership. Attorney-General Russell decided that an action could be begun to remove the directors of the Metropolitan Railroad Company. The Richmond County Republican Convention was turbulent. Gold value of the legal-tender silver dollar (412½ grains), 87.24 cents. Stocks opened active and with higher figures, but the market was feverish and erratic, and closed weak. THE WEATHER.-TRIBUNE local observations indicate warmer and clear or fair weather Temperature yesterday: Highest, 78°; lowest, 57°; average, 67¾°.

3. September 18, 1882 New-York Tribune New York, NY
Article from New-York Tribune, September 18, 1882

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THE SUNDAY TRIBUNE. Leading features of interest in the various de- partments of THE SUNDAY TRIBUNE of yesterday were as follows: Egypt. Further details of Arabi's defeat; rejoicings in England. Foreign News. Political and personal topics in Lon- don; Japan and Corea; wrecks at sea. Politics. Congressman W. A. Wood's candidacy for Governor; election of delegates to Saratoga and Syra- cuse; politics in other States. Stockaolders. Opinion on the rights of stockholders, by Attorney-General Russell, in the Metropolitan Ele- vated Railroad case. Receiver Best.-Official investigation into the man- agement of the National Trust Company. Saturday at Sheepshead.-A good day's racing on the Coney Island course. Obituary. Sketch of the career of the late Edward Bouverie Pusey, D. D. Creedmoor.-Interesting matches Saturday; recep- tion of the British team by the 7th Regiment. Local Miscellany. General Sporting News. Henry George's Appeal to the President. Broadway Note Book. The personal notes and notions of a Broadway lounger on men and things and the country round, Rural Life of England. Captain Mayne Reid on Eng- lish emigrants to the United States and the British colonies. Pacific Coast Topics. -Notes on business, politics and social matters in California. New Publications.-Review, with interesting extracts, of Miss Kate Field's Life of Fechter. A Ramble in England. William Winter on the foot- prints of history on famous fieids. Charles Reade. Some account of his practical philan- thropy. Sir Garnet Wolseley.-Archibald Forbes's account of the great General's life and achievements. A Close Shave. One View of the Russian Jews. Dying Words of the Great Home Interests. Science for the People. Religious Intelligence. A Glimpse of Cairo. Egyptian Ghosts. Curiosities of Evidence. Foreign Ideas About Americans. Bismarck's Esthetic Tastes. News topics of the day were thus summarized: FOREIGN. Fort Aslan surrendered to General Wood on Saturday; the commander at Aboukir announced his readiness to lay down his arms; Thanksgiving services were to be held in the churches of England yesterday. Dr. Edward B. Pusey died on Saturday. The Rev. Hanlan has accepted Ross's challenge to row for the championship. An unknown schooner sunk near Ontrio, and, the members of the crew were lost, DOMESTIC.-Delegates to the Saratoga Conven- tion were elected on Saturday in the counties of Cayuga, Saratoga, Ontario, Steuben, Niagara, Schenectady, Oricans, Livingston, Yates, Ulster and Otsego; Judge Folger's home county chose Cornell delegates. Delegates to the Syracuse Convention were elected in the counties of Orange Tioga, Steuben, Tompkins, Orleans, Oneida, Cay- uga, Dutchess, Onondaga, Albany, Ulster, Broome and Saratoga. The boot and shoe factory of J. Richardson & Co., of Elmira, was burned on Saturday; loss, $300,000. Serious accidents oc- curred on the Philadelphia and Erie Railroad near Watsontown, Penn., and on the Lake Shore Rail- road near Berea, Ohio. The Republican Con- gressional Convention of the IIld Wisconsin Dis- trict has broken the deadlock by splitting in two. CITY AND SUBURBAN.-Joe Murray, Glenmore, General Monroe, Skylark and Ike Bonham won the Coney Island races saturday. A reception was given to the British Team at the 7th Regiment Armory. Several interesting matches were shot at Creedmoor. The Senate Insurance Committee investigated the National Trust Company receivership. Attorney-General Russell decided that an action could be begun to remove the directors of the Me- tropolitan Kailroad Company. The Richmond County Republican Convention was turoulent. Gold value of the legal-tender silver dollar (412½ grains), 87.24 cents. Stocks opened active and with higher figures, but the market was feverish and erratic, and closed weak. Copies of the paper may still be obtained at the office of THE TRIBUNE or by mail. Price, 5 cents.

4. October 22, 1882 New-York Tribune New York, NY
Article from New-York Tribune, October 22, 1882

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HE DECLARES THAT D. R. MANGAM WAS THE MAN WHO WRECKED THE NATIONAL TRUST COMPANY. The State Senate Insurance Committee yesterday resumed the investigation into the National Trust Company receivership in room No. 38 of the Federal Building. Mr. Cruikshank, formerly cashier of the company, and Mr, Mangam were recalled and examined briefly, after which Mr. Best, the receiver, was questioned by Mr. Ecclesine, the committee's counsel, and by his own lawyer, Mr. Bangs. In reply to Mr. Ecclesine he stated that he had received no compensation since August, 1879, and had made no application, though the papers in his last accounting were now in the hands of the referee. What amount of available funds have you now in your possession 1" Mr. Ecclesine asked. Mr. Best was about to answer when Mr. Bangs interposed, saying that he would advise the witness not to answer the question, inasmuch as the Senate had transeended their power in attempting to constitute a court. With that," he added, "I will leave the witness to do as he pleases." renew the question," said Mr. Ecclesine. Mr. Best-I think in the neighborhood of $113,000 OF $114,000. What assets remain unrealized 1" Mr. Best went through the list of claims held by him as receiver which are in litigation, and gave the status of each case. and told the history of the assets which he considered worthless. After each item he was required to tell whether he had pursued the principals where the securities were insufficient, and to give his reasons for not doing 80. Mr. Bangs interrupted the examination at one point to say that under his advice it was Mr. Best's settled purpose not to appear before the committee in any of their investigations into other receiverships held by him until he had tested the constitutionality of the Senate's action in sending out its members as a court. Mr. Ecclesine wanted to know if Mr. Best had anything more to do in the case than to realize on the HILrealized assets of the trust company, Mr. Best replied that he had not, but was unable to say how long the pending ligitations would last. At their end he would close up the company's affairs in less than forty-eight hours. He had on deposit in the United States Trust Company the sum of $109,819 89, a large part of which, however, was in the form of special deposits for which certificates were in court. as security in pending suits. He did not think it advisable to distribute the balance among the stockholders. as the dividend would be very small and the cost of the distribution large. To Mr. Bangs Mr. Best stated that the report made by D. R. Mangam on December 7, 1877, to the trustees, showing a balance in favor of the company of $30.000, was fair and he pointed out and explained the alleged over-estimates. One item was $53,000 of interest on entirely fletitious loans: the others were excessive valuations of securities, to prove the real market value of which at the time he submitted a mass of correspondence relating to bids and sales. 'One of the witnesses before the committee, Charles E. Orvis," said Mr. Bangs, "in his testimony said that the National Trust Company had been wrecked, implying that the company was to be regarded as a ship. Now, Mr. Best, when you took charge of that ship was she afloat or on the rocks !" Mr. Best-She was badly wrecked, and had been for several years. How was her rigging. tackle and apparel?" In a bad condition. " How was the manifest of her cargo I" It was false." To what extent had there been a falsification of the manifest There was an excessive valuation of $700,000." a Then do you consider that you were a wrecker or salvor think that I got more out of it than anybody else could have done." You brought into port what was left of the wreck, did you not 1" "Idid." Or course not with the masts all in and the rigging perfect, but as you found her. Now what do you think of Mr. Orvis's remark-was it true or false 1" "It was a falsehood." In view of all that you have heard and learned, who would you say it was that wrecked the ship, have her cargo overboard, and made up the false manifest "I would say that D. R. Mangam was the man." The committee will meet again to-morrow at 3 p. m., when they hope to conclude the examination of with neeses in this case.

5. October 24, 1882 New-York Tribune New York, NY
Article from New-York Tribune, October 24, 1882

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# THE AFFAIRS OF THE NATIONAL TRUST. Another day was spent yesterday by the Senate Insurance Committee in cross-examining Receiver Best, of the National Trust Company, and W. B. Shattuck, for many years a trustee of that company. Mr. Shattuck was chairman of the finance committee at the time that the Chicago, Danville and Vincennes Railroad bonds were purchased by the Trust Company. As usual there were several tilts between Mr. Ecclesine, counsel for the committee, and Mr. Bangs, counsel for Mr. Best. In nearly every case, Senator Koch defended Mr. Bangs. When Mr. Bangs said that he proposed to offer a printed pamphlet in evidence as being the report of Mr. Best, the committee decided against him, and the lawyer attempt-ing to argue the question, Senator Russell said: "Mr. Bangs, I as one of the committee decline to discuss any questions with you." After the adjournment of the committee, it was said that Mr. Bangs was only allowed to defend Mr. Best by the courtesy of the committee. Mr. Best was asked if there were not first mortgage bonds of the Chicago and Eastern Illinois Railroad to the value of $298,000; second mortgage bonds to the value of $87,500 and 428 shares of stock valued at $42,800, in the possession of the company when he was appointed receiver. He said that there were those securities. He had sold the first mortgage bonds at 52½ and divided the rest of those securities pro rata among the purchasers of those bonds. Newspapers of December 5, 1877, were produced, which mentioned the run on the Trust Company and the request of President Mangum that there should be ten days' notice given on all deposits. This run, Mr. Ecclesine contended, was brought about by Mr. Best as a part of the scheme to wreck the company. Mr. Shattuck testified regarding the purchase of the Chicago, Danville and Vincennes bonds. He said that the Trust Company purchased $300,000 of these bonds, and that members of the executive committee purchased the remainining $100,000 of them. The whole issue was $2,500,000. They were purchased at 85 per cent. Although they were sold by himself to the company, Mr. Shattuck asserted that the proceeding was perfectly legitimate. Mr. Bangs—Then you fulfilled both functions—selling the bonds, as a broker, for the highest possible price you could obtain and buying the same bonds, as a trustee of the company, at the lowest possible price? Mr. Shattuck—Yes. Mr. Bangs—Were you never, as a trustee, tempted by the hope of a large commission from the railroad company? Mr. Shattuck—Never. Mr. Bangs—At the time of that purchase did the Trust Company have $1,000,000 invested in Government bonds as its charter directed? Mr. Shattuck—I don't know. Mr. Bangs—Did it have at any time? Mr. Shattuck—It did.

6. October 28, 1882 New-York Tribune New York, NY
Article from New-York Tribune, October 28, 1882

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# THE NATIONAL TRUST INVESTIGATION. The State Senate Committee on Insurance concluded the hearing of testimony in the investigation of W. J. Best's receivership of the National Trust Company yesterday, and adjourned until after the election. John A. Stewart was the last witness called. He testified that he was president of the United States Trust Company, and that Mr. Best had on deposit in that company the assets held by him as receiver of the National Trust Company. "There are are two accounts," said Mr. Stewart; "one is in the name of W. J. Best, Receiver National Trust Company. To the credit of that account there is on deposit the sum of $46,846 45. Another account is in the name of the Superior Court: The People of the State of New-York against the National Trust Company. It amounts to $62,973 44. It is subject only to the orders of the Court. At first there was only one account, but upon Mr. Best's last accounting on August 7, 1879, the Court directed that the sum of $87,172 19 be placed to the credit of the action with a title as given. From that sum enough has been paid on orders of the Court to reduce the amount to $62,973 44, which draws 3 per cent interest." The committee adjourned until Thursday, November 9, at 2 p. m. Mr. Kiernan, the chairman, said yesterday that the next investigation would be into the receivership of the Security Life Insurance Company. He added that he had been requested by prominent Wall Street men to investigate the administration of the receiver of the Manufacturers and Builders' Bank.

7. December 30, 1882 New-York Tribune New York, NY
Article from New-York Tribune, December 30, 1882

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THE COURTS. RECEIVER BEST'S FEES. Justice Lawrence, in the Supreme Court, Chambers, yesterday made an order directing William J. Best, as receiver of the National Trust Company of New-York, to show cause on January 2, 1883, why the amount of his fees should not be settled by the Court. The order was made on the petition of the Attorney-General, which recites that about one year after the appointment of Mr. Best as receiver a referee was appointed to pass his accounts. Mr. Best set up a claim before the referee for $36,766 73, and the claim was allowed by him. The Attorney-General thought that the fees then allowed to Mr. Best were excessive and began proceedings to have them reduced to the statutory fees to executors for similar services, namely, to $17,521 42. The Court fixed Mr. Best's fees at this amount. The Attorney-General asserts that it has since been discovered that Mr. Best had previously received $52,039 29. The object of the order to show cause granted yesterday is to have the Court pass upon the right of Mr. Best to receive this last named sum. It is also stated in the petition that all the creditors of the company have been paid off and that there remains a surplus of about $300,000 to be divided among the shareholders. Claims of creditors to the amount of $1,734,642 44 have been paid.

8. January 24, 1883 New-York Tribune New York, NY
Article from New-York Tribune, January 24, 1883

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# RECEIVER BEST'S BIG FEES. The argument on the motion recently made by the Attorney-General for an order resettling the order by which William J. Best was allowed about $88,000 for his services during thirteen months as receiver of the National Trust Company, was had yesterday before Justice Barrett in the Supreme Court, Chambers. Deputy Attorney General Keeler appeared for the motion and Francis N. Bangs for Mr. Best. The order propose to be resettled was made by Justice Donohue, and Mr. Bangs maintained that Justice Donohue knew what he was doing when he made the order and must be considered to have thought Mr. Best entitled to receive $88,000 for what he did. Justice Barrett said he would not review Justice Donohue's action. The order must either be resettled before Justice Donohue or an appeal from it must be taken to the General Term. It is not known which course the Attorney-General will pursue.

9. March 30, 1883 Staunton Vindicator Staunton, VA
Article from Staunton Vindicator, March 30, 1883

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A MAN who is lucky enough to be appointed receiver of an insolvent insurance company in New York has a right to consider that he has struck a bonanza. A report made to the Legislature Monday shows how the receivers and the lawyers gather in the funds that ought to go to the policy-holders. Wm. J. Best for instance was charged with the duty of winding up the affairs of the National Trust Company, and he and the eminent counsel employed tucked away nearly $125 000 in their pockets. But he was modest in comparison with Henry R. Pierson, who has been receiver for twenty bankrupt corporations, and absorbed $1 800 000, has failed to account for $535,703, and has paid out to creditors $11,551.957. In one instance he charged $55,612 for paying a dividend of $3.169 A Mr. James D. Fish paid a dividend of $284,394, and turned in a bill of 594,596 for doing it. There are many other fat jobs shown up in the report, but these are enough to illustrate the misfortunes of policy holders who fall into the hands of receivers under the New York law.

10. April 15, 1885 The Farmer and Mechanic Raleigh, NC
Article from The Farmer and Mechanic, April 15, 1885

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....Mr. W. J. Best, of unenviable railroad fame in North Carolina, has added further to his questionable laurels. He was appointed receiver of the National Trust Company of New York, and has brought the stockholders to grief. Out of the assets he has pocketed $125,000 as commissions and fees, and left only about $90,000 for the unlucky stockholders, which they are now attempting to recover.—Exchange. And yet it is scarcely three years since the Farmer and Mechanic was denounced all over the State, because we denounced the gift of a seven-million dollar State railroad to this same Bill Jay! We were held up to the public gaze as an enemy of the Democratic Party; and there are men who yet believe that we were hostile to it; because we felt too proud to deny such slurs in view of all we have suffered in behalf our party. But time's whirligig brings all things to them that wait.