New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-02-18
1T WILL BE REORGANIZED.
ACTION OF THE AMERICAN LOAN AND
TRUST COMPANY.
THE DIRECTORS DECIDE ON ENERGETIC MEAS
CRES-JAMES A. BLAIR WILL PROBABLY
BE TIE NEW PRESIDENT

TILE DIRECTORS DECIDE on ENERGETIC MEAS
uREs-JAMEs A. BLAIR WILL PROBABLY
BE- TIE NEW PRESIDENT.
The directors and large stockholders Of the
American Loan and Trust Company took con-
ccr'cd and important action yesterday toward plac-
| lnS their company firm basis. They held
two harmonious meetings and agreed on rcorganiza-
! tion and change in the list Of officers Of the
company. II was not decided fully on what basis
the reorganization should he made but propo
h.tioa was favoraby considered of reducing the
capital 81 oOO. 900, TO half that amount 1t was
! also suggested that money lie advanced TO make
mp the deficiency should there he one, when the
! bank examiners account should ne made public.
1t seemed to be generally ACKNOWLEDGED that
the capital has been impaired. though not to the
amount published yesterday. \ conservative
estimate placed the impairment at from 100000
10 $500. 900. 1t WAS authoriativcly announced
late last night that sufficient money had been
pledged TO carry the company through to-day.
About S2OOO0O was advanced yesterday TO meet
the run during the day. and the belief was cN
pressed that The company was now reaching
the end OF rough lane.
The first meeting was held downtown in the
afternoon. and the second uptown in the evening
There were represented 1900 of the 5000 shares
REORGANIZATION was readily agreed on, and the
r. n probably will be decided to-day. and the
rctrcmcnt Of the present officers will follow. II
was generally reported, and the report was con-
hrmc1 by one of the largest men in the company.
that John l. Blair the wcli-known railroad mai
and director the compai,'. had insisted on the
election of his nephew, James A. Blair. to the
presidency Of the company as a basis OF rcorgan
| ization II was reported that the designations OF
4 .,Lo .Hc Ea ~, ,uIap ia
sired II Is known that James s. Thurston, the
secretary Of the company. offered his resignation
some months ago, when several directors resigned.
| The company. however il Is said insisted that
Mr. Thurston should remain in office. There
were other changes talked Of in the management
of the concern, but il was not learned what they
were
1t was thought that the company would not
lose absolutely in to investment in the Decatur,
Chesapeake ard Ncw-Orlcans Railroad. but might
realize considerably. The investment vas S36l.-
| 600 on Ss6I,o0o of thc railroads bonds as col
lateral. II w, said that the East Tennessee, Nr-
glnia and Georgia Railroad had once offered TO
take up the bonds for $2Gl,00 and that the
offer might be- renewed Colonel Srice and
samuel Thona, are however, away from town at
present II was also said that the Louisville and
Nashville mght bid for the bonds. The Decatur
would make a valuable acquisition for either of
these roads
II was understood in Wall Street yesterday that
James A Blair was likely to become president of
the American Loan and Trust Company. Mr..
Blair has been making many inquiries about the
company. which tended 10 confirm the report that
his uncle would insist upon his election to the
presidency Mr. Blair is a native OF ONO ana
about thirty-cisht years old. He Is energetic. and
has had considerable success in managing the IN
tc.csts of John l. Blair. in Kansas. where ne lived
until recently. He is president OF the Kansas
City and Southwestern Railroad, vice-prcsident of
the Kansas City Cable Company and president OF
the Fidelity Trust Company of the same city. lie
came to this city in May and is a member OF the
lrm Of Blair & Co., bankers NO. 10 "ali-S'' oi
which his uncle is the head
The company opened its doors at No. 10
Broadway as usual yesterday and another run
began. But the company met all demands, though
payments of arQc amounts were not always made
promptly 1t was generally understood in wall
Street that S2O0,0O0 in advances was obtained
for tile company through the efforts OF the dlI
rcctOrs and cX-Judge Granville /. liaWeS counscl
of the trust. IL was generally helleNed that
Russell Sage furnished large amount TO tne
directors taking their collateral, while they paid
his money into the company.
Different statements were made as 10 the ques-
tion of the impairment of the company capital
President Baldwin's temper was certainly nm
paired. He refused 10 discuss the anars OF the
company for publication and ordered some re-
portcrs out of the building. Secretary lhurston
directed a sharp remark at Mr.. BALDWIN Tor inns,
but declined To speculate on the amount 10 Whlch
the capital was impaired, or wncther IL hau oeen
affected nj all He did say that since the run
began the whole amount of Withdrawals aegre-
gated S2.720, 900, and he inquired Win satlslac-
tion what company in the city could stand that
and Vet receive deposits and make loans NO one
answered the conundrum. George a. Evans, vice
president of the company was quoted as express
ing conviction that the capita was hot impaired,
The loan of $4,000 10 the Decatur chesapeake
and Ncw-Orcans Railroad was mace on Inc ral!-
roads bonds for $4,000 as collateral. Inc road
was unfinished yet and work had bccn stopped III
November, but it would cost only $4,000 or
500 900 to complete its construction, and the bonds
would then be Salabc.
a prominent Wall street capitalist slld yester-
day: think that the company VIII pun through
all rght | understand that the directors are
consulting as to the best method OF rcnedying any
possible impairment of capital ana provHlng
strong surplus | am satisfied that there mas Decn
nothing wrong in a corrupt sense with the man
agcmcnt. IL mistake TO lena thcir inhds
50 that they could not readily be calleu 10, Tor
trust company ought always 10 nave us assets IL,
shane where they could readily DC converted
into cash. This Decatur road passes through
fine part Of the southern country ana me Ihe I9ad
will in the end pay well. IL would De a ueslraolc
anuistion 10 the Memphis and Charleston, ana
uerh,ns 10 another Ii the capital stock OF the
trust company we're cut in two and fIesh money |
raised by new issue OF STOCK l'S "'"''' ''"''
soon be put into good shape ptr r.
Suncrintendcnt Preston. OF the STATE BANK IN
amininc Department. said that the eNaininatiO"
Of tho company'S condition was ciosed al ~ p pr ~,
.ainos Of the securities were yet 10 he determined
before il could bc oscertained whether IN: capiai
was sound impaired. lie sald eihphi,tli1caLiiS
that there was no foundation III the published
sensational story that he had come here to eX- |
anime another trust company