The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-30
YESTERDAYS BIG FAILURE.
THE VIEW YORK STATE LOAN AND
TRUST COMPdNY BROKEN.
The Bankrupt Institution Put bv Its Directors
In the Hands Of n decentralization TO
be Paid Heavy Loss 60 the stock FOLDERS.

The Bankrupt Institution Put bv Its Directors
In the Hands Of n Reccivcr-Dcpositor- TO
be Paid Heavy Loss 90 the stockholders.
The New York state Loan and Trust
Company has virtually come to an end. and the
stockholders will get about twenty Ave cents on
dollar OF the original investment. Two weeks
ago a meeting OF the stockholders was held,
and they decided that the affairs Of the concern
we're In such q discouraRlng state that there was
no inducement to carry 1t on any longer A dts
cussioD was had, and, with the exception OF one
man, all were In favor Of disorganizing the COM
pany For two months past, doposltors had been
Withdrawing the amounts due them. and at the
time OF the meeting every claim against the COM
pany had been paid In full. II was decided e.
take the propcr legal steps for placing the al irs
In tho hands Of receiver. Accordingly petit
tion asking judge Donohue TO grant an order to
show cause why the corporation sh II not he
dissolved. was presented In court yesterday The
petition was signed by Samuel ID. Biboock,
Henry NJ Toher, W. Bayard Chtting, Frcderi X
Schuchardt, Edward J. woolscy, Christopher &.
Baldwin, W. II. Tillinahast, William NJ. Yer.
milye, and David Jones, majority OF the direct
ors. The Court granted the order, and appoint
Cd the Central Trust Company as receiver, which
| institution Is to act tho same "a a single ind-
vidual intrusted with a similar responsibility.
| II will he an Instance very uncommon, of one
trust company settling up the afiirs OF another.
Accompanying the order to show cause was an
other order-a supplementary provision ap-
pointing Ale exander Cameron referee to take tes-
tmony relative to the dissolution, condition,
and administration OF the company.
me New IvIK state LQ IN aud Trust Company,
which comes 70 such disastrous termination,
was organized In iS1l ana everything went on
| prosperously with II until the financial panic Of
1873, when II was seriously crippled Securities
| which had been purchased at HIGH prices, de-
| clined greatly In v luc. II was hoped that tho
corporation would recover from the effects OF
this reverse, but instead OF getting better,
matters grew worse. Some Of the securities de
| clined In value to almost nothing. The original
were Invested in railroad :bonds and other secu-
| mites Of the wild cat order Many
pers ms and compauies to whom advances were
| made became unable to repiy and the company
| has thereby sustained large losses. The assets
are largely composed OF such securities IA are
| not easily convertible into cash. and the value
| of which cannot be exactly ascertained, owing
| to the present depressed stat OF business
| From these causes the stock and properly OF
| the cor aoration became 50 reduced that II was
| unable to anord reasonable security To those
| who dealt with II and the petitioners therefore
| say that they deem II In accordance with the in
,ereets OF the stockholders that the company be
| dissolved.
| II is stated that there ere no encumbrances
| upon the property. and no creditors whose claims
are admitted or allowed. The schedule Of assets
appended to the petition describes the charac-
ter OF securities In hich are invc sted the funds
OF an institution which administered and held
for safe keeping many estates. Among them
are seventeen notes OF the Calumet Company,
aggregatng $1,000
II. Sandford & Co. owe sei0oO; s. S Dobbin,
Se0,OO; Mary z. NJ. Pelmer, $3O.lq6 ID. r. MUIR
pny * Co, $1,000; Rochester, Nuuda and Penn
syvania Railroad Co m mpany $l3,ty1 .55; II e. Mutt
x Co. $1,000; Memphis Water Company, $TU.36l;
New Orleans. Mobile and Texas Railroad Com
pany, t2o.O00: Milwaukee, Green Bay anu NJ
Railroad, <5I1g3-33; loans on company stock,
81 80; on stock owned by company. $lsa.'ssO
Chicago and Portage Railroad Company. $l2.Uo
| Mr.. Henry A. Smythe. the President OF tue
| company, recently went to Florida, and coDse-
quently the directors were compelled to close
u9 without his assistance. 1t Is understood that
he sent letter to the interested per
sons here. agreeing TO abide by any
thing tnat they ut to do In the busi
| ness. Mr. Smytne was elected President of the
| corporation when u VS. organized IN 1870. and
has held the once to the present time. One OF
the directors and principal stockholders Ueinl
called upon by sun reporter last evening, said
that he wished II understood that the concern
owed man or woman a dollar and that the
stock holders were the only losers. A loss OF
seventy-nve per cent Of the original invest ment
, he thought. was bad, and some OF tue stock
holders were barely aDle to stand the loss bui
they had done the honorable thing and paid Of
all claims-which, the director thought, wa:
much better than some OF the suspended saw
was at 50 Wall street, where elegant rooms We
fitted up. the enterDrise originally starting OF
with quite u flourish OF trumpets. The invest
ment OF money in uns fe securities was dis
countenanced by some OF the stockholders, anc
about the time OF the panic OF 1873 some change,
in the Bo4rd OF Directors were made by th'
Efforts of dissatisfied and indignant stock
. holders. But the changes did not retrieve u
fortune. IL the securities had been sold anC
, the corporation wound up Immediately afte
, the panic, the stockholders would have realized
at least Nifty per cent but the President and
, few others prevailed to let the business be con
/, tnued Methods OF economy were prIct ise q
The number OF clerks employed was reduced
| and salaries cut down. The director witt
, whom the reporter conversed thought that /
| the company had continued year longer, thi
, stockholders would have had nothing at all I,
| show for their original investments.