North American Trust & Banking Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 31, 1853
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: a8c1587b

Response Measures

None

Description

The articles describe the company as having been dissolved and placed in the hands of a receiver (Leavitt). No article describes a depositor run; instead litigation over trust assignments and decrees as of Dec 31, 1853 are discussed. Thus this is a suspension/closure with a receiver assigned. Dates: decree referenced as of 1853-12-31; receiver discussed in Jan 1854 articles.

Events (3)

1. December 31, 1853 Suspension

Cause Details: Company was dissolved and in receivership; court decrees entered regarding trust assignments and securities (legal/insolvency process).
Newspaper Excerpt: Decree settled, to be entered as of December 31, 1853.
Source: newspapers

2. January 2, 1854 Receivership

Newspaper Excerpt: Leavitt, Receiver, vs. J. Horsley Palmer and others. The object of this action is to invalidate a large portion of the securities given by the late North American Trust and Banking Company before its diesolation [dissolution]. The receiver's bill should therefore be dismissed. (opinion reported Jan. 2, 1854).
Source: newspapers

3. June 7, 1854 Other

Newspaper Excerpt: This corporation was organized in New York, in July, 1838; ... it is alleged ... the bonds, mortgages and securities embraced in the second half million trust, were assigned and transferred when the bank was insolvent, and with the intent to give and secure to Philadelphia banks a preference over other creditors ... (report of suit vs. Leavitt, Receiver, June 6/7, 1854).
Source: newspapers

Newspaper Articles (4)

1. January 2, 1854 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, January 2, 1854

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Article Text

# NORTH AMERICAN TRUST FUND. SUPREME COURT-GENERAL TERM. Present—ELMONDS, P. J. EDWARDS, MITCHELL, ROOSEVELT and MORRIS, Justices. # AESTRACT OF OPINION OF JUDGE ROOSEVELT. Leavitt, Receiver, vs. J. Horsley Palmer and others. The object of this action is to invalidate a large portion of the securities given by the late North American Trust and Banking Company before its diesolation, amounting in the aggregate to nearly or quite two millions of dollars. Some of the impeached securities were in the form of bonds issued upon and secured by trust mortgages of portions of the assets of the company, and some in the form of the certificates of deposit, with the bonds as collateral. As the case extends over more than twenty-five thousand folios of printed matter, making six or seven large octavo volumes, it would be impossible in a daily paper to give even a synopsis of the whole. The holders of the bones and certificates are mainly Messrs. Palmers, McKillop, Lent & Co.; Hame & Holford, of England; the Bank of the United States and the Girard Bank of Philadelphia. Among the points declared in the opinion delivered by Judge Roosevelt, (which was of very great length.) were the following: 1st. That the banking associations formed under the general law, commonly call d the free banks, although possessed of certain powers common to special chartered corporations, not being monopolies, are not corporations within the spirit and meaning of the constitution and no subject, therefore, to many of the restrictions imposed by special statutes on corporation as such. 2. That the trust assignments made to secure the bonds, like railroad securities in similar cases, are valid mortgages. 3. That the company was not insolvent at the time of making them, nor were they made in contemplation of insolvency, or with the view of giving an illegal preference, but to raise money on assets not immediately convertible, in order to carry on the banking business. 4. That neither the bonds nor the certificates were circulating notes within the meaning of the law prohibiting the issue and circulation of bills and notes not payable on demand and without interest. 5. That the sale of the bonds they being payable in sterling money in London although under par, was not a violation of our statute against usury. 6. That the loan of $250,000, made to the company by the Philadelphia banks at the time of the suspension of specie payments in that city, being repayable in the same currency in which it was made, although a loss was sustained in converting the Philadelphia notes into New-York funds or specie, was not usurious. 7. That since the act of 1850, it is not competent to any banking association or any corporation to interpose the defense of usury, either directly or through a receiver, or to insist on, or be allowed such defense, even where previously interposed, if not previously allowed. 8. That banking associations, having an indefinite power of depos-itizing State stocks with the Controller as a basis of circulation, would seem to have an indefinite power of purchasing such stocks, and of making promissory engagements in good faith to pay for them. 9. That, at all events, advances made by third persons in good faith, at the request of such an association, to take up its engagements, are legal and valid, and create a binding obligation on the part of the association to refund, and a lawful basis to sustain a pledge of securities to redeem the liability. The receiver's bill should therefore be dismissed.

2. June 7, 1854 The New York Herald New York, NY

Article from The New York Herald, June 7, 1854

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Another Procession and Concert of the Gorman Musical Societies in Baltimore. [From the Baltimore Sun, June 6.] The vark?us German musical associations who arrived here on Saturday night for the purpose of participating in the regular annual festival, assembled yesterday morning at nine o'clock, in front of the headquarters, at R 'llman's, Washington Hall, and after forming in a line proceed along the route, under command of Major Frederick Elterman, chief marshal, down Baltimore street to Aisquith, to Gay, to Baltimore, to Hanover, to Lombard, to Charles, to Lee, to Howard, to Camden, to Entaw, to Baltimore, to Paca, to Saratoga, to Charles, to Fayette, to Gay, to Second, down Second to the Maryland Institute. The line extended nearly half a mile, there being more than one thousand persons, with three fine bands, viz: Vollandt's, Linhard's and Beck's, of Philadelphia, whilst a most numerous display of gorgeous flags, banners and penants added great éclat to the occasion. As they passed along, many windows were filled with the fair sex, who greeted them by a pretty considerable waving of handkerchiefs, and showered down upon them a perfect shower of sweet smelling bouquets. The procession was preliminary to the last rehearsal, which occupied until one o'clock in the afternoon. At night, the hall of the Maryland Institute, where the concert took place, was brilliantly lighted, whilst the rail of the gallery was most beautifully decorated with the national flag, with those dear to liberty in the old country. The performers occupied an elevated platform at the southern end of the building, which extended to the sides of the hall, and amply sufficient to accommodate the vocal and instrumental choruses, who, shortly after the appointed hour, 8 o'clock, appeared and occupied the places assigned them. The handsome flags erected on the staging indicated the several parts of the music. The bass, about 300 strong, were in front, on the right the first tenor in front on the left, the second tenor behind them, whilst the orchestral parts were ranged in six lines in the back seats, coasisting of the entire bands of the Vollandt's, Linhard's, Beck's cornet of Philadelphia, the best players of other Baltimore bands, and all the eminent professional and amateur talent of Baltimore. The music was under the direction of Professor Charles Lenschow, a guarantee that it proved a feast of harmony seldom enjoyed on this continent. Some idea may be formed from the fact that the orchestra consisted in part of 6 double bass, 6 violoncellos, 60 violims, 2 oboes, 2 bassoons, 6 kettle drums or tympanums, 2 bass drums, 3 rattle or side-drums, 3 clarionets, 4 flutes, 8 French horns, 4 cornets, 4 trumpets. 3 trombones, 2 opheclcides, with cymbals, triangles, bells, Supreme Court-General Term. Before Hon. Judges Mitchell (P. J.), Roosevelt, and Clerke. THE SECOND HALF MILLION TRUST CASE. JUNE 6.-David Leavitt, Receiver of the North American Trust and Banking Company, against Lewis Curtis and Others-This case came on for argument, a stipulation having been made between the parties that the testimony, evidence and proofs taken in the original and cross suits, known as the million and first half million trust suits, may be read and used in this cause. This corporation was organized in'New York, in July, 1838; and it is alleged during the brief corporate existence of the bank, its officers purchased on credit, including the " Beers million of Arkansas," and received in payment of its capital stock, or otherwise committed the bank to pay for about $6,809,000 of State stocks-the largest nominal capital of the bank never exceeding $3,285,000-and its largest cash capital at no time exceeded $250,000. In August, 1838, before any of the capital stock was paid for, or any securities therefor taken, and before the corporation had received one dollar in cash, its officers purchased $1,000,0 0 of Arkausas State bonds, and within three days after shipped $500,000 to London, England, to be sold or used as securities on which to raise money. It is also alleged by Mr. Leavitt, the receiver, that the bonds, mortgages and securities embraced in the second half million trust, were assigned and transferred when the bank was insolvent, and with the intent to give and secure To Philadelphia banks a preference over other creditors whose claims are still due and uppaid. The defendants contend that the North American Trust and Banking Company had authority to make an assignment, by way of mortgage, of its assets, for the purpose of raising money for its use; that the trust deeds in question were made for the purpose of providing by bonds, issued under the same, for the payment of certain debts then justly owing by the North American Trust and Banking Company, and that the trust deeds in question were executed and authorized so as to bind the

3. September 21, 1854 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, September 21, 1854

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SUPREME COURT-GENERAL TERM-Before Judges MITCHELL, ROOSEVELT and CLERKE. DECISIONS-INSURANCE AGENCY. Bentley (of Albany) agt. Philadelphis) Columbia Insurance Company (of New trial granted, C06'8 to abide event. The sub agent, the Court said, of an insurance company, even life has power to insure so as to blud the company in ordinary cases, cannot 80 bind the company in his own case; nor will the approval of the insurance made by the immediate agent of the company. under the notion that he was bound to ratify it be. cause the sub-agent had made it, be a valid ratification of the insurance, especially when the ratification was not communicated to the sub-agent until after know ledge of the loss. Mr Whitney was general agent in this city, and had power, verbally given. (which the Court held to be sufficient) to appoint sub-egents; he appointed Mr. Bentley at Albany to take and secure risks, to be approved by Mr W.; he wrote that he wished a policy for $4,000 to be executed on bisstore and stock on Quay-st., Albany; the letter WAR received by Mr. W. next day, but during the night into mediate the store and contents burnt down: Mr Whitney did not give his approval of the policy till some days afterward. and then only, he said. because he felt himself bound to do 80 in having appointed Mr. Bentley; the company refused to pay. The Court held that an agent cannot make an insurance on his own property. A land agent in being employed to sell lots is not allowed to buy them himself, nor a broker in selling stock to buy it himself, 80 an Insurance agent has no right to make insurance for himself. The advantage of an agent is to have his interests go in favor of his principal, and to do the best be can for the principal's good, which would be defeated by his having en adverse interest of his own, which was shown in this case, Mr. B. having charged but 13 cente for two months, and which Mr. W. said he would not have accepted. Decision ssabove. POWERS OF SUPERVISORS. Matual Life Insurance Co. of New-York agt. the Board of Supervisors of New-York Motion to amend petition for a mandamus so as to make it a petition for & certiorari, denied, with costs. The duty to be performed by the Supervisors, if the plaintiff be right, is merely ministerial, or clerical and in such case the mandan us is the proper remedy. NORTH AMERICAN TRUST CO.-MILLION LOAN. Curtis, Graham & Bla ebford, trustees, against Leavits. Receiver of the North American Trust and Banking Company, and others Decree settled, to be entered as of December 31, 1853.

4. December 28, 1854 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, December 28, 1854

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LA W INTELLIGENCE SUPREME COURT-GENERAL TERM.-DEC. 27 DECISIONS. Graham Blatchford &c., agt. Leavitt, Receiver of North American Trust and Banking Company.-On bill and cross-bill. First million and a half-million trust case. Mitchell, J.-An appeal does not stay the taxation of costs, nor the insertion of them on the judgment roll. Where an action was commenced in Chancery, before the code took effect, and judgment was rendered in 1853, the costs to 1st July, 1851, are to be taxed according to the old Chancery fee-bill, and after that time, according to the code. The costs are to be taxed, notwithstanding the appeal, by above rule. Pettee & Mann agt. Price & Gray, &e.-Judgment affirmed, with costs. Bellows agt. Partridge & Fessenden.-Same. Putram agt. Putnam.-Referred. C.S. Dennis, &c., agt. J. Kennedy, Halstead, &c. -Judgment affirmed, with costs. Berley agt. Newton.-Referred. Kiersted agt. the People of New.York and Trinity Church.-Referred. Morgan agt. Mechanic's Banking Association.Judgment affirmed, with costs. People ex rel Sidney H. Stuart agt. F. W. Edmonds. Order affirmed, with costs. Fisher & Denny agt. Norwich and New-London Transportation Company.-Order affirmed. Whittaker agt. Fisher, &c-Same. Denny agt. Hall & Smith.-Referred. Everson agt. Gehrman, &c.-Mitehell, J.-A partner colluded with a plaintiff, the creditor of the firm, that a suit should be commenced against the firm, and the summons be served on him alone, and not on the other partner, and that he should then make an offer, admitting the plaintiff's claim. Judgment may he entered against him alone, but is irregular if entered against both members of the firm, the other member being within reach of process. Judgment, if entered against both, will be set aside as to the one not served. Order appealed from reversed, with costs. The People ex rel Jenkins & Condit agt. Parker Vein Coal Company.-Mitchell, J.-Mandamus is not the proper remedy to compel a Company, whether solvent or insolvent, to transfer stock to a purchaser of stock. Order appealed from reversed, with costs. George A. Vogel agt. Henry Badcock.-Clarke, J. -Section 206 is more comprehensive than the provisions of the revised statutes, relative to the action of replevin. As defined and regulated by the Revised Statutes, this action was confined to cases where the immediate restitution of the property was claimed; but the code allows plaintiff, under 0 206, to claim the specific delivery of property after, as well as before judgment, making the latter similar to the old action of detinue. Judgment reversed, with costs, with leave to defendant to answer, on payment of costs, of special term, with leave to defendant to move to strike out part of the complaint as irrelevant. James Gallagher agt. Ann Gallagher.-Order at special term modified so that the cause be tried before a Jury. The report of the referee set aside, without costs. Hunt agt. Mootry-Referred. Canal Bank of Albany agt. Elias T. Harris.-Order at special term modified 80 that the motion to set aside the executions be heard in the Fourth Judicial District. No costs allowed on the appeal. Horace R. Hudson agt. Wm. S. Conant.-Judgment affirmed, with costs. Palmer agt. Watt-Referred. John H. Brower agt. Lawrence Lewis-New trial granted, costs to abide event.