Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-08-17
THE ST. ALBANs FAILURES.
Statement Of tho Trust Company's
Affairs

Auhlfs.
The trustees of the st. Adams Trust com.
pany have at last given the public general
statement of is affairs. 1t is hard to sec
why the statement could not have been made
a week ago. The substantial part of it is as
follows; The directors are now happy to
be able 10 say that the assets of the st. Al
bans Trust company will be, so far rs can be
asccrtainod, in no wise affected, directly or
indirectly, by the failure, except in the fol-
lowing particulars The Trust company, at
The time OF the suspension, had on deposit
with the Vermont National bank the sum of
900, and held demand paper to the
amount Of $4,000 which was secured
by pledge Of the stock of that llank. When
This paper was discounted, the stock of
the Vermont National bank was consid-
cred TO be more than par, and the security
was regarded ly the officers of tho Trust
company, the inspector Of finance and by
the business community generally as of the
highest order. 1t is of course hoped that
considerable portion Of this Sj5, 900 may yet
he saved to the Trust company but should it
proyc n total loss that loss will fall 'upon the
| stockholders, and not the dcpositors.
The Trust company holds considerable
amount OF paper, much less than has been
fumorcd, however, on the Norwood Lumber
company, of Norwood, N. Y. As security for
payment OF this paper the entire property of
That company, both real and pcrs )nal cmbrac-
ing all that the money was borrowed to pur-
chase and large amount besides, has been
conveyed to an assignee for the benefit of the
Trust Company, and eminent counsel advise
| lhat THIS conveyance caunot be set aside or
disturbed by any proceedings whatsoever.
The property consists Of about 10000 acres
OF valuable timber lands, three large mills,
with unsurpassed water privilege and ma
chnery, all in the highest condition of .ellic-
icncy, lumber, logs, teams and other proper
| ~ TO very large amount, and a business in
the manufacture and sale of lumber which is
firmly established and being conducted at
large profit. Men of sound business judg-
ment and without prejudice who have exam
| med this property arc unanimously of the
opinion that, properly managed, and iudici-
ously sold, should a sale prove necessary, it
is undoubtcd security not only for all liza
billties to the Trust company, but great
deal more. AS still further security for this
paper, and his endorsement thereon, Mr.
Lawrence Brainerd has conveyed TO trus-
tee for the benefit of the Trust COM
pany, in addition to his interest in the Nor
wood property, all his other property of
every kind, consisting of valuable real and
personal estate in st. Adams and Georgia
and lands in Swanton and in Minnesota.
The other assets Of the company arc the
ordinary assets OF such institutions, such as
real estate, mort cages, notes, bonds, etc., a
considerable amount OF which can be made
almos, Immediately available for the deposit
ors, while some will require more time for
realization, but upon which no considerable
loss is anticipated
The closing of the Trust company was
rendered necessary by the closing of the
bank, because the two institutions being
situated as they were run upon the Trust
company you'd have been inevitable, and
with SEQ, 600 of ready funds, and also the
$50, QUO OF paper which was supposed to be
available as cash at any moment if required,
locked up by the bank suspension, the assets
could not have been at once converted into
cash to an amount sufficient to meet u run
without dagger of serious loss. 1t was
therefore deemed best for the1interests of the
depositors to close and as having been thus
compelled TO close lis doors no course re
mains but to wind up the affairs of the com
pany, the officers will at once cooperate
with the proper authority for the appoint
mcnt of receiver, who will declare divid
end from the assets Immediately available al
soon as possible, to be followed by others rs
fast as they can be prudcn,ly rcazed.
MIR. BraiUcrd.
Mr.. Lawrence Branerl is also out with ;
, card in which he says "Thc news of Mr.
Barlow's failure came upon me us upon 9TH
; crs with the most appalling suddcnLess, ant
my first thought WAS for the security of the
, depositors in the Trust company. | ownc,
a large interest in a large and valuable prop
erty in Norwood, y. y, which was sccurit,
to the Trust company for the payment o
r certain loans made upon ii, and in my judg
4 mcnt was and is now most ample security
for these loans. The great danger was tina
parties holding paper of Mr.. Barlow's en-
dorscd by me might in some way attach III,
interest IN that property and so impair it
: value as security to the Trust company. II
prevent the possibility of such a result,
have been working night and day and lav
u accomplished it.
c Il have done, and shall continue to do, all
can do to protect the interests of the deposit
A ors"
al The Southeastern.
MIR. Chapman, who has been examining til
Southeastern road on behalf of a New Yor
C syndicate, has told Mr.. Barlow that he woul
0 report favoIaby to the syndicate and recon
. mend the purchase Of the road; and that
decision would doubtless be given by Satul
1t day.
# Barlow's Ecnariis-I Canadian Pa
/, ciic's Attitude.
u ST. ALBANs, Aug. 12.-Bradley Barlow
u reported as saying last night that he fe
u pretty sure the dcposilors Of the Vernon
II National Bank would be secure. When ask
II ed regarding the Trust company he said
II did not care to state. There are complaint
< in Montreal because Barlow does not assun
o his place there as president of the Sou,hoas
J. ern road while negotiations are progressing
. Railroad men state that the Canadian Paciti
VI desires nothing OF the Southeastern but wilt
IS is due. But they are, however, intcrposin
II every possible obstacle to prevent the sale
u the road to the New York syndicate. Thcr
Is are no new developments regarding the Tru
company. President Brainerd returned frol
le New York last night.
u Reports from Montreal and points on Il
" Southeastern railway seem to indicate tn,
II an endless intrigue has been begun by cred
X tors forthe possession Of Mr.. Barlow's C
VI tate, and that the outcome will be int
=, minabc and extensive litigation. A numb,
lt of attachments have already tcen put on Il
~ railroad property, bonds and stock Of bol
10 the Southeastern and Montreal, Portland at
" Boston roads. AT Montreal three attac
&c ments have been made, two being on all NJ
y Barlow's stock in the Southeastern al
lc Montreal, Portland and Boston ralwa
Creditors residing in the States are also mo
e ing to secure themselves. 1t is said tn
C. eight locomotives have already been scizt
!, on the road between Newport and Richfor
u VI, to satisfy the claims Of various parti
a., against Mr.. Barlow and his company.
e. MIR. HOWARD AND THE UNIvERs
IL TH.
a