New-York tribune., 1899-12-19
DCES

The embarrassment Of the Produce Exchange
Trust Company is ascribed by well informed
bankers To loans made by It on securities or the
United states Flour and Milling Company the
International Banking and Trust Cohpah'' INC
American Writing Paper Company or Spths-
field Mass and the Florida Central ana feh'"-
sular Railroad underwriting. The large item %
syndicate loans included In the trust COM
ranv's statement yesterday Is belleNed 10 co'e'
many OF these engagements. The company -
understood to have loans OF S4Vobo on lh'ei
national Banking and Trust Company s'ooN'
while the underwriting OF the FIoriua Ne"tl"i
and Peninsuar involved about slf"oo. lIe M
trust company some time ago TOOK 3''V'VV'
bonds Of the United States Flour and Milling
Company. and It's total advances on TINS account
according TO some estimates yesterday nave
been about S2O00OOO
State Bank Examiner Judson last week made
an examination Of the company's affairs
F. D. Kilburn, superintendent OF the state
Banking Department said yesterday in regard
to the Produce Exchange Trust Companys
trouble:
A special examination Of the Produce Exchange
Trust Company made by the Banking Depart
ment on December This examination was be
cause Of rumors in regard 10 the COMPANY when
I'm circulation in and about val StIeet -. IL
was completed on the 9Th, and had an interview
with the president. Mr.. Beal. and the yice-rresi-
dent Mr. Scudder. that day with reference 10
the companys condition | told them that they
steps should be taken to foruiy themseINes aeaISt
large Withdrawals. which believed would resuIt
ON account OF me rnhors csto dIou Io,ns verv Sc
verely and pointed out the fact that they had hot
mand which would probably be made. learned
last night that Mr.. Beall did not communicate my
suggestions to his Board OF Directors. and. except
one or two who had learned something from other
sources as TO the condition OF the COMPANY none
lion until Saturday afternoon or yesterday even
Ing. The result was that not sufhcient time re-
mained TO make arrangements, which believe
otherwise could have been made TO tide the com
pany over. =, ,..,.o. ,i t otd
in full.
AT the ofice OF City Chamberlain keenan, yes
terday II was said that the city had about $50
600 on deposit with the Produce Exchange
Trust Company but Deputy Chamberlain
Campbell said he was Of the opinion that the
city would not be a loser.
Il have just been talking with Wall Street
men" he said, "who tell me that every cent is
secure The city is lucky that it did not have
100000 on deposit, as IT often has
ANGRY AT CLEARING HOUSE.
At least two OF the trust company's directors
are openly blaming the Clearing House Assoca
tion for pushing them to the wall The com
pany several months ago withdrew from con
nection with the Clearing House, and announced
that IT would collect free of charge out Of town
checks for its customers. Some Of the leading
trustees, among them W. A. Nash president Of
the Corn Exchange Bank. resigned from the
Board on this action being taken. The offer 10
collect country checks without charge attracted
TO the company the business Of number OF
small country banks but II had also the effect
OF exciting suspicion and starting rumors, and
when the present stringency in the loan market
came along some of the trustees say. other
banks and trust companies refused to help the
to accept it's stock as collateral This caused
lot of people who had bought Produce Ex-
change Trust shares margin when its capi
tai and surplus were raised to S5,OO,0O0 last
July to throw their stock upon the market. It's
price was thus forced down. rumors increased.
customers withdrew their deposits and the
suit was inevitable.
Thomas A. Mcintyre. OF the firm Of Mcintyre
& Wardwell. said yesterday that neither he nor
his firm owed the Produce Exchange Trust
Company one dollar. that he believed the trust
company TO be perfectly solvent and that he
thought the closing OF it's doors unneces-
sary and a mistake. He declined to say more.
but from other sources 1t was learned that there
Is no love lost between Mr.. Mcintyre and Mr..
Gould. and that they differ widely as to their
estimate of the value of United States Flour
Milling Company stock. which forms one of the
syndicate loans" which the Banking Depart
ment connects with the collapse of he trust
company. member Of the committee In
charge or the bank. who would not allow his
name to be used. declared that the company
loan to the Hour milling syndicate does not