New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-22
STOCKHOLDERS WILL SUE.
DIRECTORS OF THE AMERICAN LOAN AND
TRUST COMPANY. BLAMED.
HISTORY OF ONE OF THE CoMPANY's LOANS
THE RECEIVER GETS PERM SSIoN TO
PAY A DIVIDEND.


PAY DIVIDEND.
The publication Of ]. Edwards slmmons's report as
receiver of the American Loan and Trust Company
raused considerable stir in financial circles yesterday
Judge Barrett in the supreme Court granted Mr.
smmouss application for permission tO pay dividend
of 35 per cent TO the preferred creditors. The same
Judge substituted W. W. Flanagan in place of the
American Loan and Trust Company as trustee under
"a trust mortgage executed by the North and East RIVER
Railway Company upon its property to secure tho
payment of S25OOO0 of bonds which have been issued
one Of the unpaid loans that attracted most atten-
tion was that Of Henry Buckhout the vice president
of the Third National Bank. In the receivers report
this appears Sl7.762 80, due on June l. Against
IL as collateral the company took $4,000 of East
Shore Terminal Company first mortgage bonds at d
Der cent. Mr. Buckhout formerly cashier Of the
Fourth National Bank, when o. d. Baldwin was It's
president 1t Is understood that the history Of the
loan is as follows: When James 4. simmons, John :.
Silver, George II. Pell and Others who had been con-
nected with the sixth National Bank began to be hard
pushed. I'm September, 1890, Silver was permitted 70
overdraw his account at the Third National Esnk Tor
B17 800 ON september "a Mr.. BuckbCut secured a
personal loan from the American Loan and Trust
Company for ST. 400. That same day he drew u
check for the full amount to John 5. silvers order
Silver Immediately paid it over % the Third National
Bank, thus making good his ovei7irah. Inc ho'e
given by Buckhout came due Oh January "a III was
renewed for four months with interest added mahug
the total Sl7.7G3 o. This note was due Oh June l.
When the receiver took charge he found Mr. BuchhOus
note among The assets. II Is understood that Mi.
Ruckhont denied at first ali knowledge Of the note.
lint finally admitted having drawn IT, 1t was not
paid however when ii fell due, and the receiver has
now sued for the recovery of the amount
Mr. Buckhout seen yesterday and rad his al
tention drawn 10 the receivers report lie Sa'u ha'
the money was obtained in the course OF legitimate
'yl,o 4llQ
story connected with the loan and Mr. Buckhout re-
asserted that il was business transaction ana re-
marked that he had nothing else to say Asked with
regard 10 the collateral, he said that negotiations were
nov in progress TO take 1t up. lie declared that the
bonds were worth from 50 10 81 L., ana that inc
company has always earned and paid dividends upon
them lie also said that the company expected 10
make arrangements with the Clyde steamship COM
many that would increase the value of the bonds
irbe bonds are not listed the stock Exchange and
arc difficult to sell in the market. ,,
John >. silver, when ashcd about the lOal s1iu
that the money not obtained IOf nm, thdt ms
name did not appear on the check dawn as4is' Ine
Joan aud that he did not receive the proceeds. ne
added that he paying up his Indebtedness 10 ue
Amercan Loan and Trust Company ana SOON ""u'u
According to the receivers report, the stock Of the
american Loan and Trust Company VIII ne enheH
wiped out, but the Brooklyn sOckhOdeIs 40 ho' pro-
pose 10 lose their money without slfhggie i neS
hold about Onefourh Of the stock hdeF me leaaer.
lship OF John b. Jenkins and c. h. staples they nav
taken active steps 10 protect their interests They
sbeieve that the directors left the management Of
Raffairs too much TO the executive Omceis, ana
ttbey propose 10 hold the directors personally
responsible for their negligence Mr.. jenkins SAID
In accordance With the advice ~ counsel, d com
mittee of stockholders called on Mr.. simmons last
Thursday and asked him TO bring suit against the
directors. He said he wOad be quite Wiling TO do SO
nf we would give definite information rs 10 whom he
Eshoud sue and precisely what grounds Our counsel
hs now engaged getting up this lnf0rmeuoh 1or MN
q have no doubt he will act. In any event. the
directors will be sued -,
The directors of the trust company elected at the
last general election in May, 1890, We're: John L.
hlacanley, George +. Hart. w. c: Andrews j. r. Blair
Nv p Anderson, J. Aldrige, j. b. Kinney, Charles
EParsOns q. a. Evans, q. f. Iawcs, J. : ThulStOn,
Ia F. Tracey, J. s. silver T. 5. Goodrich p Merrill
All Clark T. c. Platt, q. ID. Baldwin and Il. p slade