New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-15
PRICE THREE CENTS.
PAYN'S WEALTH DISCLOSED
MAY SERIOUSLY AFFECT HIS CONTEST
FOR INSURANCE SUPERINTENDENT
POLITICIANS DISCUSS RESULT OF srArn
TRUST COMPANY EXAMINATION
GOVERNORS ACTION NOT
IBT TELEGRAPH TO THE rRrBuNE.1
QUESTIONED.

QUESTIONED.
IBY TELEGRAPH THE TRIBUNE1
Albany. Jan. 1.-THE disclosure made as the
result Of the examination Of the affairs OF the
State Trust Company Of Nev-TorE that Louis r
Payn the Superintendent of the Insurance De-
partment, had secured a loan from this trust
company to the large amount of S4350O0 that
ex-Lieuterant Governor Sheehan had loan OF
$4,000 and Anthony y. Brady. OF this city. a
loan Of $7S5.OOO was the main subject for dis
cusson among the leading politicians here
to-day.
Mr.. Payn was at his home in this city to-day
and reading the Sunday newspapers. con-
tanning accounts of his relations with the State
Trust Company. when Tribune correspondent
visited him. In reply to inquiry about the
loan Mr.. Payn said that in the course OF the last
summer he was called suddenly to Europe by the
dangerous illness of his wife. and had to make
arrangements TO guard his business interests
while he was away He did not know anything
about the State Trust Company except that from
it's official statements he judged it to be q
solvent institution. He added:
The loan I obtained was nearly half million
dollars and was made upon gilt edged collateral
All the stocks put up were dividend payers
There was also 100000 worth OF bonds The
collateral and note gave amply covered the
loan There is no dissatisfaction with the loan
on the part of the trust company 50 far as
am aware 1t still exists-abOut half a million
doilars-and am ready 70 take IL up at any
time the trust company demands it. I am no
speculator in stocks. If a thing is selling below
what 1 cOns4er il worth. il 1 have the money
buy It. The loan made to by the State Trust
Company a strictly business AFFAIR, such
as any business transacts daily, and
doubt IL the public has the slightest interest IN
it, any more than they would a loan TO any
other business man.
Mr.. Payn's campaign to hold the office OF
Superintendent OF the Insurance Department.
however. makes his personal affairs Of interest
to the public, perhaps far more so than he could
suspect The disclosure OF the loan TO him by
the State Trust Company and it's large amount.
therefore, may form an element in the rather
warm contest at present over the Office OF Su-
perintendent of the Insurance Department.
MAN OF WEALTH.
Mr.. Payn's friends say that while he has had
many financial vicissitudes, he Is now a man OF
considerable wealth. as made evident not only
by the stocks and bonds he deposited with the
State Trust Company. but also by his purchase
recently Of eight hundred acres OF land for
dairy farm near his present costly mansion at
Chatham-where fortnight ago his wife died
They say that in 1876 as the result of the busi-
ness depression following 1878. Mr.. Payn had
to make assignment and then surrendered
to his creditors his paper mill at Chatham. his
house. his jeweiry-in fact. every dollar he had
Then followed his appointment as United
/
then needed Office badly. for he had no
money. President Grant on his part it is de-
clared desired resOlute man like Mr. Payn as
marshal, in view of the bitter contest over , :
presidency Mr.. Payn worked hard to clear or
his debts. and by 1879 had paid most OF his
creditors.
In recent years. Mr.. Payn's friends say, he
has made money rapidly through his possession
of newsboard mandatory at Chatham-the
/ baiD TO
board factories. it is understood. have estab-
lshed business combination which is in the
nature of a trust" although one founded upon
a patent right which protects their profits.
GOVERNOR ROOSEvELTS ACTION
The fact that Governor Roosevelt directed
that an examination should be made into the
affairs of-the State Trust Company naturally
interests the politicians who are concerned about
the contest over the office of Superintendent OF
| the Insurance Department Nevertheless. since
| Governor Roosevelts attention was formally
called to the loans of the State Trust Company
by Abram King, it certainly appears that he
| could adopt no other course than 10 transmit
Mr.. Kings complaint 20 Frederick D. KiIburn.
| the Superintendent OF Banks. Whether Mr.
Payn had been concerned or not. undoubtedly
the Governor would have taken this action. II
therefore cannot be justly declared. in the
| opinion of politicians. that the Governor had
any political motive IN SenOlnS MI hLlnS COM
| plant to Superintendent KiIburn- Indeed. the
| Governor may have considered that he con-
| ferred a favor upon the Superintendent OF the
Banking Department by informing him OF the
/ complaint which sad been made.
| Doubtless also. Superintendent KiIburn felt.
when he appointed Avery D. Andrews. the Gov
| ernors personal friend, his deputy to look
into the condition of the trust company, that
the Governor would feel pleased that such an
excellent agent was appointed for this service
| The report Of General Andrews is awaited here
with much interest.
CONTEST GROWS INTENSE.
The contest over the office of Superintendent
Of the Insurance Department grows more in
tense every day It was jOcuarly said to-day
that the revelation OF Mr.. Payn's large wealth
might cause him some trouble with patriots In
the state Senate who argue that only poor men.
who need offices should be granted them. and
that rich men, therefore should be excluded
| There seems to be an impression that the Repub-
| Iican Senators are divided upon the question OF
| sustaining Superintendent Payn or OF voting for
some other Republican for the office and there
fore the Democratic Senators may decide the re-
suit OF the contest.
| Senator Ellsworth. the Republican leader IN
the Senate. II is declared viii vote for ex-Lisu-
/ tenant Governor Saxton IL he is nominated for
/ Superintendent of the Insurance Department.
and the same statement is made about Senator
Higgins. of OIean: Senator Humphrey. OF War
saw: Senator George A Davis. of Buffalo; Sem
ator stranahan. OF Fulton. Senator White. OF
| Syracuse and Senator Brown, OF Watertown
/ MIR. Saxton is named because OF the general i'm
1 Nft-af, ba 4or~efv7 tad