New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-13
TRUST DIRECTORS RESIGN.
SELLING THE STOCK TO THE PRESIDENT.

WHY CHANGES wEKE MADE IN TEE AMR ,IcAN
LOAN AID TRUST COMPANY.
regular meeting of the directors of the Ameri.
can Loan and Trust Company, No. If3 Broadway,
was held yesterday The vacancies in the board,
caused by the resignation recently OF George IT,
Potts, president Of the National Park Bank. Fred
eric A. Potts and Frank G. Ilollins were filed
by the election of Peter wyckof director and
large shareholder Of the First National Bank Of
Brooklyn; George A. Evans, managing director ol
the Bethlehem Iron Company, and ex-Judge Gram
vile T. JIawes. james s. Thurston,
treasurer of the company, was elected
secretary in place Of William ID. Snow, recently
resigned, and q seat in the board was given to him
on account Of his Office. The other business was
said to be of a routine character.
The atteiapt to magnify the Importance Of the
designations was hurt by the facts that they were
made week or two ago and that George H. Potts
offered to buy control OF the company. Mr. Potts
said that he resigned because he was not in full
sympathy with the management. i did not like
he said, the way in which President Hazard con-
Quoted the business and offered TO buy his stock
and that of his friends or sell him mine. Tho
result was that few of sold our stock and
resigned from the board. Our designations do not
af1ect the condition OF the company, which is
shown to be sound by the report of the bank
examiner"
THE OFFFR TO BUY MADE BY SYNDICATE.
Frederic A. Potts said that the offer to buy
control Of the Trust Company made in behalf
of strong syndicate which would have been
pleased If IL had been successful The offer was
made before the bank examiner completed his in
vestigation which was unusually thorough and
exhaustive. The capital has not been impaired
and the company is every way sound. have no
doubt that it will continue to be prosperous con-
Germ. My father and were dissatisfied with the
mana agement and frankly expressed our opinions
TO President Hazard. We offered to buy control
OF the company or sell him our stock and he took
In reply to inquiries about the particular cause
OF complaint, Mr. Potts remarked that he was un-
willing to be cr0ss-eAamined. I" The Grovesteen
& Pcl loans" he remarked, may have had
something to do with our decsion but We not
IN harmony with the management on other matters.
public interest and besides it is now an old story.
There can be no possible question about tho
solvency of the company"
PRESIDENT HAzAH STATEMENT.
President Hazard said that in the main the state
ment of the elder Mr.. Potts was correct He did
offer to purchase his dIazard's stock, but, the
president backed by friends sufficiently to
troll the Trust Company, the only alternative was
for the Mcssrs. Potts and Mr. Hollns to sell their
stock to him. Mr.. Hazard stated that the extent
OF the Grovesteen 4 Pell loans was overestimated
IN some OF tile evening papers, but he declined to
say what was the correct amount.
1t is not true that the loans are principally
secured by East and West Alabama bonds said
Mr.. Hazard. They are a mixed collateral and I
consider them perfectly safe The bank examiners 8
report shows that the institution is perfectly sound
and the whole matter is only family affair. Mr..
Potts showed his confidence in the company by
Offering to buy MY Stock
Another director said: THE trouble arose not
simply cut of the Pell loans, but is the outcome
of desire the part of Mr.. Potts to control tho
mana cement of the company. Mr. Potts was
member Of the executive committee and had cog
nzancc of the Pcll loans when they were made
in the regular course of business. He does not
seem to have discovered their Objectionable
character until after Grovesteen x Pelrs failure.
As matter of fact Mr. Hazard sick on and
on good part of last summer and Secretary Snow
responsible for some Of the loans. think
that the objections Of the Mcsss Potts 10 the prcs-
dent were partly due to a desire to advance the
interests of Mr.. Snow. Mr.. Hazard and his friends
simply were too strong for the other faction.'