New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-06

FROM THE CONTROLLER
Although no official statement of the affairs
OF the Tradesmens National Bank has been
made by National Bank Examiner w. H. KIM
ball. the developments yesterday were OF a re-
assuring character SO far as the deposltors and
stockholders are concerned. In the opinion OF
Mr. Kimban the impairment OF the banks
capital will not exceed $2JoGp, and II certain
securities held by the institution for money lent
realize their present estimated value the llquida-
ton Of the bank will be satisfactory 10 all per-
sons interested
Mr.. Kinoball and his assistant S D. Bullock.
together with the entire clerical force or the
bank were busily occupied all through the day
with the examination OF the books and securi-
ties. and IT hoped that by last night sufl-
cient progress would be made to draw up
rough statement of the true condition Of affairs.
The work has taken longer than was expected.
and late yesterday afternoon Mr. Kimball an
nounced that II might be several days before
he would be able TO make his report The
directors will meet just soon as his report is
received and take action on the policy 10 be
pursued so far as the future Of the bank is con-
cerned
THE LOAN TO MR. MACNAUGHTAN.
IL became known yesterday that since the last
examination Of the bank. and. in fact. within a
few days the institution had lent about $4,000
TO James Macnaughtan end other allied inter
ests on security consisting Of four thousand
shares OF the Wool Exchange and an unknown
number OF shares or warehouse receipts of the
New York Wool Warehouse Company. In con-
nection with this there were many sensational
rumors put in circulation yesterday. The report
that James Macnaughtan. knowing that the
bank was going under. had taken advantage OF
his position as president of the bank to obtain
this large loan was absolutely denied by Mr..
Kimball. He said the loan had been made by
the bank as a strictly legitimate transaction,
and the only question was in relation to the
value Of the security held by the bank. On this
point il may be mentioned that the stock of the
Wool Exchange not quoted in the open
market II is said that. a fair estimate Of val
uation the building of the Wool Exchange is
,,p7sA 8, 900 900 Agsjnst 1bis, IS stated. the
Equitable Life Assurance Society holds mort
gage of 100000 The Exchange has no other
debts and on this basis the equity IN The build
ms it owns is $500 600 The capital of the Elk
change is 81 900 coo Of which $4,000 is held In
the treasury a reserve. OF the outstanding
stock amounting TO $4,000, it is understood
the MacnaUghtan brothers only short time
ago held S5500O0. On the basis of the hSures
Just mentioned David H. Bates. vice-presdent
of the bank. and Mr. Kimbal both estimated
the value of the stock Of the Wool Exchange at
$50 a share. 1t is said that Wall Street hrm
which makes a specially Of unlisted securities
quoted Wool Exchange stock at above par on
September II. which was before the announce
ment of the suspension of wool sales.
If the stock Of the Exchange can be sold at
nor the four thousand shares held by the bank
would bring $500 600 and the reported loan Oh
$4,000 would be amply protected outside OF
the value of the securities OF the New ork
Wool Warehouse Company said to be held oy the
bank On the basis of $50 a share the "ooi
Exchange stock in the bank would represent
$4,000. leaving 100000 to be made good Oy
other securities.
Morris j. Hirsch, of the firm OF Blumehstlei
& Hirsch attorneys for the bank when seen al
his Office at 5 p m yesterday. said that 'he
value of the stock of the Wool Exchange would
be amply sufficient TO protect the loan OF S34o-
600 He knew nothing regarding the value OF
the warehouse company's securities. II the bank
held such security he not in a position 10
confirm the information, and If the BANK heio
any of the warehouse receipts. ii was fully Sc
cured by the wool in storage MT Hlrsch eX-
pected that a meeting Of the directors OF the
bank would be held to-day
ALLEGED WORK OF ENEMIES IN WALL ST
President Macnaughtan made a statement to
the reporters during the day in which he al
legged that the embarrassment of the bank had
been brought about through enemies In wall
Street He said he would have some sensational
statements to make before the week was over.
Mr. Macnaushtan spoke OF having MADE apply
cation for money at the Chemical National Bank
to secure which ne offered bills Of acceptance.
His request was denied by President Williams
Of the Chemical. who reported the matter. ac-
cording 10 Mr. Macnaughtan. TO the Clearing
House officials Mr. Macnaughtan explained
that he had sought relief in order to be ready
for any emergency. Deposits to the amount Of
S50O0OO had been Withdrawn, and this drain
over the counter had reduced the banks cash.
If the bank We're allowed to finance its own
affairs ii would be able to meet every claim
within sixty days Mr. Macnaughtan considered
the Wool Exchange in excellent condition He
declined TO discuss the loan made on the WOOL
Exchange stock and other securities in Whlch
q and his brothers were interested.
stakeholder Of the Exchange. in converse ton
with Tribune reporter yesterday, deplored the
poor judgment Of those persons who had at
tracted public attention by announcing the sus-
pension of the wool sales and Of the issue of
1.-THE Wool Record" the organ OF the Exchange
He said The Wool Record" by gradual cutting
down, might have stopped publication without
causing any stir. As for the wool sales. they
had been practically abandoned since last Feb
ruary. and the public announcement last week
was unnecessary. As matter OF fact, l. had
called down all the present trouble for the bank
and Exchange
CAME WITHOUT WARNING.
One OF the officers of the Wool Exchange, in
expressing his surprise al the closing Of the
bank remarked that TO his personal knowledge
there had been no warning of the institutions
shutting down. On Tuesday morning the treas
urer of the Exchange had sent down deposit
which had been refused This the best in
dication possible that the trouble was entirely
unexpected The same officer is authority for
the information that the MacnauShtan Brothers
L. Nh Nnrk NNNl WarnhnlIsD Conn