New-York tribune., 1891-02-20
EFFORTS TO REORGANIZE.
AMERICAN LOAN AND TRUST TROUBLES.
SEEKING MONEY TO REpAIE TIE
IL

There has been relaxation in the efforts TO
save the American Loan and Trust Company and
its valuable charter from utter collapse notwth-
standing the closing Of its doors on Wednesday
and the announcement of deficiency OF
S656.7S0 80. Conferences looking to it; rcorgan-
izat0n were continued yesterday, and strong hopes
are express that the scheme will be effected.
No definite programme has been agreed upon, and
the negotiations far from being completed, but
to-day may bring forth important developments.
Enough has been accomplished, however. in the
way of inspiring hope that fresh capital can bc
raised TO warrant the interested persons in asking
Judge lncraham for a postponcment OF the near
ing in the Attorney Generals application for
receiver for the company. This will he done
this morning. and unless the pending negotiations
go to pieces suddenly. the State officers are not
likely to oppose an adjournment.
The stockholders who wish 10 save their
property are rallying largely around Russell Sage,
and he is using his influence 10 gain assistance
from other capitalists Mr. Sage was in con-
sultaton with Rank Superintendent Preston seek
ing information 10 help him in his efforts. y con
ference was held at his Office yesterday morning
between Mr.. SAGE and a number Of large Brook
lyn holders Of stock in the American Loan and
Trust Company: James 4. Blair, t." nephew oi
Director JOHN /. Biair also being present. Inc
Broolllyn people declare that thcy own or con
troll 5000 shares Of stock, and they expressed no
doubt that assignments could bc secured from The
whole number if Mr. Sage would take hold oil
the concern.
Mr.. Saqc las no desire to undertake the work,
lie says but he assured the stockholders that ne
wa, anxious +, help in any scheme for saving
something from the wreck even if the company
could no: hr replaced on It's feet. But il is be-
+l,o roI ~ fio
secured for the men who have been approached IN
the interest cf the shareholders. enough new
capital may hc had 10 establish the company on
PROSPEROUS basis Efforts will he made 10 secure
the co-oncration of Charles hrbuckic. the coHc'
merchant. and John !. Blair. NJ. Blair viii he III
the city today T. consul; with Mr.. SAGE as TO tAc
situation.
Mr.. SAGE said yesterday: d" 1t would he pity
for the company 10 90 down utterly. thihN
that if the assets could he nur,cd along. at I"'St
nftv cont, ON the dolIar could hc realized from
the doubtlal toms. and am not sure but the
full value Of all loans could b. recovered. there
are some securities held by TIE company when
believe would bring more than the value estimate
made by the Bank Examiner
Mr. Preston said. in the afternoon. that there
was n strong probability Of reorganization oi 'Hc
american COMPANY. and if il were effected the
The pcootiations had not taken sufficient form
for him 10 say that the reorganization would
hc carried out but hc had great hopes that It
would be- If certain bonds were taken MP,
Mr. Preston said " | do not think that more than
$500. 600 would be needed 90 place the comnan>
on its feet What gives me faith in a favorable
outcome is the earnest way IN when thc men
Interested going about the wOIk, rathcr IMAM
any definite facts now
An important point may he brought up in case
OF the failure OF the efforts az rcconStructlon'
which was sCdS>cd with some interest NeS'cr-
day The second section of t!ic charter oi Inc
American Loan and Trust Company reads Ike
this: -. ....
ton unlc., hc shall hold In his own night hiiy
shares OF is stock, and every director shall hr
personally liable for every indebtedness incurred
by this corporation t. the amount Of $5,nuo.
H. il held by some persons That under tins
clausc al Of the past and present directors may
be- mulctci for $1,000 each. and rs there nave
been ahout forty men who have served IN the
capacity of director, goodly sum might hc re-
allied toward the coinpany's deficiency \ nearly
are directors is a> follows: John l.. Mac,rla,,
Poland y. l!alard. GcoG-r : IlaIt. Alexander &.
Black, W. e. Andrews John J. Blair, ". J. Andcr-
son. Jules Aldridgc John -. KINNEY. John Ross,
lawc,. James :. Thur>ton. Thomas J.. Watson,
Rcnjamin /. Tracy. John ). Silver, Thomas I
Plait. John p Townsend, .. u. Baldwin. George
II. Potts. lanes Narnum. l.. +. !3wning,
John K. Whitney. Elias Lewis. ir. William i.
Snow and Charles t. Farley; the estates of Will
IIoXt also being considered liable
Secretary Ihnrson WAS asked yesterday 10 cN.
plain some of the differences between the special
charter OF Tie American Loan and Trust Com
pany and tie charters of trust companies or
ganizcd under the general law. He replied 60
general charter, in the first place. ties up the
capital aad nail, it 10 the floor. lN this mean
that there Is more scope in the investment OF
capital and moneys allowed under th" Old system
The theory of the old charters Is TO leave the
capital in the hands Of The capitalist. and not
in the hands of The Legislature. \ popular feature
of the new charters Is that which 1orbids the
company from lending 10 It's own directors. The
best borrowers We have had have been directors.
who have brought MS good securities, aud We
have lost no moLcy through any of our directors.
lndcr the new low - company may lend money
10 the clerk or porter OF director on his sccuri-
ties. whipping the devil around tho stump. but
it cannot deal directly with man who is in
tcrc'tcd in the company and il, property
These remarks were made in the presence OF
Superintendent Preston, who gave sign Of
appreciation of Mr. Thurstons sarcasm.
Albany, Feb. l9.-Following .s n statement of
the condition Of the American Loan and Trust
Company Of Ncw-l orll on December II last, |
which company has been closed by the State |
Banking Superintendent. This report was sworn
10 before Henry Rcmscn Ritch notary public, on
January 49, and was siSrci by the president. o.
ID. Baldwin. and the secretary, j. :. Thurston. |
The report was fled in the State Banking Depart
mCnt Oh January 20:
RESOURCES.
Bonds and mortgages ........ $4,000 !
tnIdrHot NalJ, 3DS33
loaned cIliI'cia!- .,1J3 o1J
mount loaned personal sccuriti~s s7 2$9
hand lb'rl |
Dur om bunk, 1885
other a,oct forth Schedule f.. 1852
LIABILITIES
Capltil stpcN lIlIu ~ ~
Undivided profits 2l93O
Deposit, la tl-t....- ibt - |
General deposits ul,abc o.: demand .. . sos! l73
Acccptlaccs outstanding LIS
Ir insurers check, out-t ndng ........... ESQ
t,tlpr liabilities. taNc, and rent due. O61J |
,ro,,i ... g. 9i7.2 .2Is !