New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-02-01
FINANCIAL TOPICS.

A PROMINENT LOAN COMfANI hEilhEo'
WINDING UP THE AFFAIRS OF THE N. Y. LOAN AND
INDEMNITY COMPARATIVE INFLUENCE or RAIL
WAY LOANS AND DIMINISHED DEPosns-LossEs
OF STOCKHOLDERS.
The New-York Loan and Indemnity Com
pany is winding up its affairs preparatory to retiring
from business. This Company Incorporated under
OF the Legislature passed May 1870 and section
of its charter reads follows; The said Company
shall have power to receive, storage. deposit or
otherwise merchandise bullion, specie plate, STOCKS,
bonds, promissOry notes, certificates, ana eVi-
dences OF debts, contracts, or other prop
erty, and to take the management, custody,
and charge OF real personal estate and property and
advance moneys securities, and credits upon any
property real personal and shall have power to guar
anee the payment, puncual performance and collec-
ton OF Dromssory notes, bills OF exchange, contracts,
bonds, accounts claims, rents. annutes, mortgages,
chooses in action, evidences OF debt and certificates OF
property value, and the titles to property, real or
personal, such terms may be established by the
directors OF said Company"
The Company began business under Its charter JAN
49, 1873 with H. H. Van Dyok President At the cleo
ton in 1874 WIN. III. Foster chosen President and
John T. Banker Secretary. The original capital was
100000 but this increased to se36O0 which has all
been paid in to the Company. The Company soon be-
gan to do regular banking business receiving deposits
paying checks through OF the banks connected
with Clearing house. The deposits of the Company in
the Fall OF 1874 amounted TO nearly million
dollars. 1t is stated by some OF the directors and
stockholders that soon after the Company began bus-
ness, certain loans were made through John @ HoYt
and Andrew Mckinney, two OF their directors, on ac
count Of the new railway combination, the New-York,
Boston and Montreal Railroad. These loans amounted
to between $4,000 aud 100000, and the Com
pany took collateral security notes en-
dorsed by Mckinney, stock Of the railroad an
interest in certain real in this city together with
lien on the rolling stock OF the railroad The loaus
met at maturity and IL is reported that In the
meantime tho railroad interest In the Board OF Directors
bought up the stock OF the Company with view to con-
troll its affairs At the election in October 1874, Trenor
W. Park and several other directors were retired from
the Board, and a new organization was effected.
The Company went through the panic, meeting every
Obligation promptly, but the connected with the
change in the Board OF Directors affected the business
unfavorably, and it IL generally understood that
az the line OF deposits became smaller 1t
was evident the funds must be kept well IN
hand and could not be used TO further assist the
New-York Boston and Montreal Railroad. The nereas-
ing dsfavor OF business toward the system OF loan
and other outside organizations attempting to run
q banking business helped to diminish the de-
posts and the Board OF Directors finally de-
termincd to wind up the affairs OF the Company
The money deposit III November reached nearly
<l.O0O0lO, which has been gradually reuuceu 10
$4,000. The officers OF the Company state TINT they
have cash on hand and cash assets aDundany huheht
10 pay every dcpoHl'or III IuH on PRESENT. ou
Clearing house has received notice Of the action or tue
Board OF Directors, and Will cease to take up the checks
after Feb. 6. DepOsltorS VIII Thereafter present tuc
checks AZ the counter of the Company for payment.
The stockholders, however, are beginning 10 make
searching inquiries to the management OF the affairs
OF the Company and its complications with the New
York Boston and Montreal Railroad ne OF tue stock
holders blame the hrst President OF the company ana
directors who carried through the loan TO the rai-
road 1t Is reported mat the loss to tnG tockn1der;
for two years Besides the large loan mentioned the