New-York tribune., 1891-02-19
A BIG DEFICIT FOUND.
THE AMERICAN LOAN AND TRUST COMPANY
CLOSES ITS DOORS.
APPLICATION FOR A RECEIVER - DAMAGING
STATEMENTS MADE By Mr.. CAH1LL,
STATE EXAMINER.

80 p. m and shortly aftcrward was taken
possession of by Superintendent Charles NJ fres-
ton, of the State Banking Department. Papers
were served on the company, for the Attorney
General, to show aiise why receiver should not
be appointed At & p. m. Mr.. Preston was aoie
to make statement for publication which showcd
an apparent impairment of S656,'s0 " III Vle
capital Of 81 100000. There were. however, some
apparent qualifications to the situation. which
were that certain of the company's assets tha'
Mr.. Preston had estimated at low figure might
be realized upon to-day in full and also that GER
tain prominent Wall Street men might come to the
assistance of the company.
The sudden suspension of the company was
caused by the uneX pectcd demands of three savings
banks for deposits aggrcgating about S2S),o0o'
The company was unable to meet the demands,
and while the officers Of the concern were discuss
ing the demands Of those who presented theu
Mr. Preston appeared and took the company IN
charge. The suspension caused surprise, because
the sanguinc claims made by directors and stock
holders on Monday and Tuesday nights and the
fact that the company had been able to raise
money to tide it over Monday and Tuesday hau
created an impression that the American Loan
and Trust Company would weather the Storm
and undergo a reorganization which would place
it In safe and strong hands
The day seemed TO open promisngly for the com-
pany. and the chief interest that attached TO the
corporation during the morning was the question
Of rcorganzation Confidence in the companys
officers was shattered. however. when demands for
deposits were made by the Union Dime Savings
Bank. Of this city. for $4,000 the Monroe County
Savings Bank. of Rochester for $4,000, ana the
Onordaga Savings Bank. Of Syracuse, Tor Sl9o'-
600. The crisis had been reached. ana the COM
pany could not overcome the situation. Worh
was sent TO Mr. Preston, and soon as he grasped
the condition Of affairs, he took Official acton
and assumed charge Of the company lhe ou'er
doors were closed, and for long time groups of
people stood on the sidewalks peering through
the windows. The news quickly spread over
10 Tn. and a food of inquiries followed.
Rumors affecting the integrity OF other IN
stitutions arose. but were discovered to be base
less. At the time the suspension was ordered
meeting was going on Of the directors and stock
holders and some capitalists, who were consider
ing the ways and means Of reorganizing the COM
pany. They were thundcrstruck by the news
but soon set to work to ascertain the exact stua-
tion As soon as they had secured the necessary
information they decided 10 meet to-day and see
what could be done to rcorganze the company.
II WIS. OF course, difficult TO gain access TO
the offices Of the American Loan and Trust Com
many. and Mr. Preston and Mr.. Cahill were busy
until p. m. Mr.. Preston made long state
mcnt. which was in part rs follows:
The closing OF the company was brought ABOUT
bv the unexpected demands OF certain savings
bank, for deposits subject 10 call. ! cannot give
the names OF the banks or the amounts OF money
demanded hut | heard that the sum was from
5000. 900 10 100000 Ii was large enough -
cause the company 10 suspend business. "hllc
the discussion was going on between the of'cers
II the company and those presenting the drafts.
received word that there was trouble with the
American Loan and Trust Company. was not
sent for exactly, vet ! received word mat the
company was in more trouble When I learned
that the company was unable TO pay the money
demanded. / determined to take possession Of the
institution
"Mr. Cahill and have been here ever since try
ing 10 find out the value Of the assets Of the com
pany. This examination Of the affairs of the
American Loan and Trust Company was made
after the close of business Friday. and it showed
that th. assets were s.. .lGS, O3s OS. This amount
was determined after making certain deductions
on bonds and colaeras, after making inquiries
outside the company as to their value. These
bonds and collaterals are made up Of small
amounts: there are SO many Of them that could
not name them now. Now the company lent
S2l32i5O 81 on collateral the value Of which
We figure TO he 81 ,jl3,637 81. All these col
lateras are secondary 10 promissory notes some OF
which were given by directors in the company
We cannot give the names OF these directors. Inc
other assets owned by the company are bonds.
mortgages. bills purchased, bills receivable, cash
on hand and cash in bank. On Friday there was
81 $50 on hand and S20G,jsj 90 in banks sub
ect 10 check Since rhc tronFSc in the company
began il has called in a good many loans.
The Liabilities are : Capital Sl.000,O00; due
70 dcpositors. SI.sl3I6s 81; tclcrs' certificates,
8l,1 80 sc, and rrasurcr's checks. $4,000, which
makes n total of S2s2i,S?7 30. This makes,
by our figuring deficiency OF $6j6,7So So. II
is fair for Inc 10 say that since the American Loan
and Trust Company closed its doors today
have been waited on by several large capitalists,
representing big corporations. From what they
said 10 me | have strong reasons for relieving
:hat il is posi- that certain securities which
cstimatcd nj n low figure may he paid tomorrow
in FULL If this is done it will reduce the deficiency
to $icJ.0O0. The same men expressed STRONG
hopes that the deficiency might he made 9ood py
the stockholders, and the company put on It's icct
again. This was talk but it was made by men
who do not talk for fiIc purpose of hearing them
selves speak. The creditors are, of course, pro-
lcclc"' lor Inc stocNuoI"'IS 'c ""' w. "
fcicncy. The future Of the company depends upon
what these men do tomorrow.
The reason for the difference between the reg
ular examinations made in October when surplus
was shown, and the one made on FRIDAY Is that
that certain loans not maturcd were accounted n,
GOOD at the October examination, as Is usually
done These have since fallen due ana Dcch
charged 10 the surplus account. In me E'St eN-
omirotion tbrsc items wrrr thrown ont. They in
ciudc certain railroad securities which were con
sidcrcd good in October. because the railroads.
we're either running or in course OF construction
,t that time but since then they have failed or
have not been completed. Other securities have
leen depressed on account Of the recent panic III
the money market - A., ,.,
The report of Mr.. Cahil which was hled with
The application made to Judge lngraham, III tIc
Supreme Court Chambers, for the appointment ol