The New York herald., 1877-07-10
ANOTHER FINANCIAL FIzzLE.


sUspENsIoS OF TIE MERCHANTS LOAN ASD
Trust COMPANY OF PArEgsoS-TuE pEPosI-
Toas' PROSPECTS.
To the astonishment OF great many people IN Patcr.
son, ~ j., the following notice yesterday found
wacred IN the insiio OF one OF the windows OF the
banking concern chartered BY the Legislature o! New
Jersey under the name and title Of the Merchants
Loan aud Trust Company, and located at the corner
OF Marke, ana Division s,recis:-
MYRcmANrs' LOAN AyD rgrsr COMPANY.
On account OF unexpected financial reverses, tho di
rcctcrs o. ns insitu.ion decide 10 suspend business,
satisfied thu, this course viii insure iull payment TO
dsp"stors and large proportion, n not The whole TO
stockholdera by order of lhe Board.
). +. fRESfoN, Treasurer.
Dated PATERSON y. j.. July o. lsis
Paterson has long been noted for It's manufacturing
facilities. IL. has turned the bcs. railroad loco
motives, it celebrated for It's silk ana worsted works
aud II Is none the less conspicuous .or the pnjlic spirit
manifested by It's citizens on al occasions. The Mcr-
chants Loan ana Trust Company commenced business
III December. 1872, with a capital OF sloo 900 paiI in
II had all tho privileges OF bank with tho exception
OF issuing notes.
HOW IT CAME GRiEP.
Some time man by the name OF Hand VITO
was Tax Commissioners in Paterson. evled tax upon
the company, amounting 10 about $500, when the
actual assessment Should have been abou, 81 0oo
alleged that certain officers OF The bank
coniederates IN the fraud ufon The soyeTn-
men Instead OF Hand receiving indemnl0cl-
ton from the State OF this
confession and pardon from the Governor, tho facts
OF the case were made 10 appear so much IN favor Of
the accused that thcy were acquitted and Hand rcscn-
tenced Tor tho iull OF his ntment Bar not
withstaadng this legal acquitancc of the officers
company pubic dislrus. was engendcrcd aud ITS
dcposs l. low that according TO the statement OF
OF It's officers yesterday, II deemed expSdcnt
to suspend business altogether.
gI
s'W hat was The reason OF your suspension. ~ asked
HERALD reporter oi Mr.. Preston, tho treasurer
1--WE wcnt into voluntary liquidation bccau SC our
capital is lied up Ia real estate We Obtained TINS
secure paper ana as collateral Tor loans. loans
dw'nded down 10 $4,000, and making no money ws
concluded TO close up
'iiad you any large operGtorsg''
Yes We took largo amount OF real estate from
Ar. David h. Beam q shoe man, largely Interested
real estate. We discounted $50. 900 OF his paper and
took mortgage Oh ms properly as collateral, which
mortgage VIC had 10 pay. Sixty thousand dollars mas
been offered lor the same rropcriy same prep
erty that has been appraised oy Ihc New York Mutual
Lite Insurance Company Al sll0,O00.n
"Cannot you rcaiLe anything from u 20
"Wc cnnnot realize anything without great
sacrifices"
''what will you do with your dcposllors:''
We shall pay de.ostors IN lu.l as soon as the law
Mr.. HOWARD, ono OF tho pircctors-rnat Is moro
than some banks can say that go into liquidation.
Mr. PRESTON tcontnuina)-Wc owe nothing to speak
OF, and should have wound up in short time had
that action been prcciptaled by large and unexpected
uralts upon u.s.
OPINIONS OTHER PATERSON FIyAycrERs
Mr. James Jackson, cashier OF the second National
Bank OF Paterson, said TO the HERALD reporter
capital stock OF the Merchants Loan Trust Com.
pany is 500 600, originally all paid IN IN From
the developments of tax frauds connected the
stitution about year ago. tho deposits down TO
very low irurc From investments made their money
has been locked up and rendered unavailable For
want OF available funds to meet Inc drafts OF their cs
toners suspension ensucd. Checks, amour ting TO
So, 6O0 coming through tho First National Sank OF
Paterson wcnt TO protest. This The first practi.
cal indication OF tho want OF soundness in tho
pnny.
''What Is the amount OF deposits ia the concorn ?'
| asked the reporter.
'Fron So QUO TO S47 900 includ ng the Savings Bank
department rhc principal dopostors three
lOur OF their people. They hold the bulk or Ger
tan'y halt, OF the deposits Inc remainder OF
deposits are divided among very small accounts, IN
clunS those OF clerks, weaycrs sik ma, mechanics,
and They probably only their inter.
cs., the principal being ia all nkchoo1 paid full,
''What are the assets OF tho company"
''lt has assets sufficient To cover al lls liabilities or
course there Is ITS real estate which 10 exactly
available IN Paterson at present. Bricks not col
atcrals for cash nowadays unless they bricks Of
gold or silver"
ARE
The president OF tho company 10 SIr. G. l.. Lambert,
large silk manufacturer, OF the arm OF Dexter Lam
bort a. Co. He Is Il man OF considerable means Tho
treasurer Is Mr. James f. Preston, who went to Paer-
son IRON Connecticut four or i've years ago and
who the leading spirit oi the Institution
MIR. A. A. Hopper Tor time the o-called backcr,
but he has recently had lltle to do with 1t. hc
democratic politician and turiman. Mr.. Robert Nc
Culoch, the heaviest loser, II there be loss Is
plumber. Mr. DAVID Henry, stockholdcr, Is "a demo
cratic politician and builder. J. G. Todd, OF tho
directors, an iron manufacturer OF undoublcd wealth.
The effects OF the suspension will neither wide
spread nor disastrous. Very few necessitons people
made deposits Ia tho concern because was con
sldercd an institution for the deposit OF the SAVINGS OF
the poor