The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-19
II CLOSED ITS DOORS.
Produce Exchange Trust Company An
nounced Suspension.
EDWIN GOULD WAS A VICE PRESIDENT
He wns Not satisfied with Its Man
nuemcnt-tssets and Liabilities
viii he In the Millions.

Exchange Trust company OF this city has
closed its doors. A notice upon the doors
says the company has suspended payment
/ pending an examination OF the books. The
notice reads:
The board OF directors OF the Produce
Exchange Trust company has deemed IL
to the hest interests OF its depositors and
| stockholders TO suspend payment pending
| the readiustmnt OF its affairs. The fol-
| lowing special committee. Edwin Gould,
/ C. p. Armstrong. George r. Bidweli Ed
! ward a. Maher and Frank Brainard, has
/ been appointed by he board OF directors
to take charge OF the property and affairs
OF the company and are In possession
thereof for the board of directors.
Almcn Goodwin.
VIM Nelson Cromwell,
Counsel for Committee.
The Produce Exchange Trust company
WIS organized a couple Of years ago with
capital stock OF S2.50o.000 aud had re-
ported surplus and undivided profits at
this time of over 81 600. Its business
was chiefly with merchants, tradesmen
and corporations in its immediate vicinity
and II was also supposed to do some of
the banking business OF the Standard OIL
company II has been designated by the
banking department OF the State as legal
depository for State moneys and NUM-
cipal money as well as for the funds of
savings banks and State banks. The off,
GERS OF the trust company are; President
Turner A. Beal; vice presidents Edwin
Gould. Thomas 4. Mcintyre and $. D.
Scuddcr secretary and treasurer, S. l..
Chamberlain; assistant secretary and
treasurer, william Laws. The trustees OF
the company are Charles Il, Armstrong,
Amzl b. Barber. Frank Brainard, Turner
A. Bcal George r. Bidwell, Charles A.
npun A II.
wing Keyser, Edward r. Ladew. Henry A,
Niece, w. Willis Merrill, j. w. hidden
dorf. Edward Maer. S, d. Scudder John
A. SHIRLEY. John Z. Truesdell, c. NJ War
ner John SHELTON Williams, r. c. Young.
Thomas Mcintyre
The following statement OF its condi-
ton was Issued BY the Produce Exchange
Trust company today
Assets-Cash on hand SllS0o0; cash in
Western National bank. 1888 600; cash IN
National City bank 100000, cash In
Western National bank Jersey City, $i26,-
600. cash in STANDARD bank. S260,000; New
York City bonds - 100000; other bonds,
Ss50.000 demand loans, $685. 900; bills re-
ceiyable. SS47 600; due from banks, $9l0,-
600 syndicate loans. $i,i23 500; time loans.
1859 900. Total assets Sll 49, 900
Liabilitios--Capital and Surplus, $4,000
600; individual deposits, s2,92S,00O; trust
funds. S2i 500: due to banks, $4,000 coo.
Total Liabilities, Sli ,6i9, 600.
\ letter from Edwin Gould dated De
cemher to the executive committee OF
tho Produce Exchange Trust company
is published. in which Mr.. Gould indi
Gated his intention to resign from the vice
presidency. The letter was written after
an examination Of the books and accounts
of the company and when he found mat
ters for which he did not care to assume
responsibility, 81
- hot lar
sums of money had been tied up in aiding
the underwriting Of certain Industrial en-
terprses until the amount so Invested, to-
gethcr with what we had agreed to FUR
nish If called upon, equals nearly the
combined amount of our capital and sur
plus. Most OF this is uncolectihe Il
needed. Is due at indefinite times and with
certain privileges of renewal to the Dor
rnwers'
The officers Of tho company declined to
see anybody or give anything out for pub
lication beyond supplementary notice
which was posted on the doors The i'm
mediate cause OF the suspension Of the
company Is it's inability to convert its Sc
ourtles into cash In time 10 meet the sud
den and abnormal demand upon It,
AZ the office OF City Chamberlain Keen
an today IL was said that the city had
about Sl5O000 on deposit with the Produce
Exchange Trust company Deputy Cham
berlain Campbell said Il have jus; been
talking with Wall street men. who tell inc
every cent is secured.
The Produce Exchange Trust company
1rst became prominent as bidder for a
Sl2, 200 600 bond Issue In opposition to Vel
milye Co. and others who ware par. OF
a syndicate that had hitherto controlled
the traffic in city bonds.
The special committee appointed to ex-
anime the affairs OF the company organ
ts.sl ~ alaas H.
man. Tho committee was In session most
all the afternoon and the carly part OF
the evening. The result of the delibera-
lions is given In the appended statement
Tho special committed consisting Of
Messrs Gould. Bidwoll Maher Bralnard
and Armstrong, appointed by the board OF
directors az the Produce Exchange Trust
company 10 look after it's assets and at
fairs, have examined the condition OF the
bank as fully as the limited time Mt its
disposal has permitted, The committee is
well assured rs a result OF such examine
tion. that every deposltnr of the company
viii be paid In full. and that large sur
plus viii remain for the stockholders. The
differences OF the company are the result
OF the locking up of an undue proportion
Of its funds in loans not Immediately real
liable but on which 1t is believed II viii,
eventually realize a very large percentage
OF the amount loaned, The committee is
endeoyoring TO effect arrangements for
the early payment OF the depostors and
also expects to issue a fuller statement at
a later date"
Baltimore, Md, December ls.--.I. WI
liam Middendorf Of Middendo-t. oliver 4 |
CO. and H. Irvine Keyser II .his city are
directors in tho Produce Exchange Trust
company of New York. as is also ]. skel-
ton Williams OF Richmond. Va. who Ia |
president OF the seaboard Air line
Mr., Middendorf, speaking of he failure, |
said "of course the news Of the failure |
is most unweloome btit II will M: be 50 |
far-reaohing as some people suppose, The |
affairs OF the concern were reoeltly lnrts- |
tigated by an expert and .ouni TO be IN
good condition, and believe the suspsn-
sion has been brought about by the un-
satisfactory state OF the money marls,.
The company was interested rs sub /
scriber 20 the syndicate formed for tts
purpose OF financing the proposed recrsEn.
izailon of the Seaboard Air i'ns, but us
suspension viii in no way impede the prog.
ress OF that reorganization. which Is row
an accomplished fact"
MUST he sHAKY.