New-York tribune., 1900-03-13
6O-62 West 23d St.

by A1ram ng agops the the
of General Andrews. personally examines go ,ae dse
ascertaining its condition the close of business
January Il and Hq9rRMg IN m M 6 m yhe as charge t9 m
submitted by him and in his petition praying that
fairs to be honestly and fairly made. Before re-
citing the results of this examinatlon VIII 20 i''
After outlining the history of the company since
It's organization in 1889. Mr. Kilburn mentioned the
loans to which exception has been taken, and con-
tinuing. said. quoted
You will notice that General Andrews charac-
as Objectionable as understand it, because it does
not express a consideration. The following Is the
form of obligation and guarantee; .e,, ,e 1904
ITO the State Trust Company.
Gentlemen: Please take up and pay I9r w oWe45s MY
thousand shares of the preferred stock OF Ih5
to you by that company at par. and hold same
for my account l win reimburse you on demand
the date Of payment and all expenses iafFalnS
I'VE hereby guarantee the performance of the
:PH6MAs r s. 2 ElPENESF' y. RTASl'
President Johnston testified before me that the the
made but by this think he must have meant 70
be M that the 1a6 by was M shea al
transaction transferred from advances to loans
Ryan and whitney, amounting to 5000 600 were paid
on January Is and that Of Mr. Widener on January airy
director is interested in it, 49,, ,
Such a guarantee given subsequent to the max.
Ing OF an obligation would perhaps require proof
that there had been consideration IN order 10
ath ecuting ths' the obsaton think there can be
question that 1t was valid and a saffen ,S WHY
this loan never passed upon by the Board
f the trust Company was due to the fact that
thirds of the membership of the Executive SoHInlt
tee had been at the discussion or the mat
The Shea loan was arranged for by Elihu Root
nd q
mittee of the trust company and also its counsel
loan was made he had no knowledge OF suspicion
that in the interest OF directors or the trust
While he did not suppose that Mr. Shea was the
a ns in pr@ reality to ~ the Electric Vehcle Company
the banking law has never been interpreted as
which might also be director in the trust COM
Beyond ali question this loan was Illegal. because
excessive and because In part II was made indIreet
defended or excused by me in this aspect, and yet
think but Just tho to 6sD he trust g TO %bg
control that any serious loss because of 1t was
The aTe Ioan of 10000 to the Metropolitan Traction
Company is without collateral the borrower carry
sl5OO,eOO The loan was reduced TO 100000 the day
The loan loan to Louis F Payn was demand loan
of S435 40 as on which a payment OF slOoUO had
immedateiy G1 following the Examination made by
+ seered Sy tg estmatd 10 be
s35O625 and by the guarantee of William c. Whit
In all the assets of the trust company find only
one item Of $4,000 which l am satisfied Is unco-
to which have not been able TO satisfy myself
of the approximate value of the collateral securing
The surplus Of the State Trust Compsny. includ,
any time by the Board Of f. Directors to the formal
loans n held by the Company were the one to Mr.
Shea for 100000 and the one 10 the Metropolitan
OF the safe and the legal loans the examiners
make no de detailed list but only aggresa5e them m;
the loan Mr.. Shea and to the Metropolitan Trac-
suggestion that they were In existence or that the
State Trust Company had any loans whatever
vized ,l by 1I: Mr. Kings King rePTesentations ,,.
public attention to AFFORD any disquieting infor-
given it was Certainly due to those bringing the
signed to inJure the state trust Company. has as
suredly been such best calculated 70 accomplish
pedient for the State Trust Company to continue
refer it 10 the Attorney General to institute such
Of insoivent Corporations So far as the company is
concerned am confident that the action taken by
II individuals merit seyerer treatment the courts
take cognizance of Illegal acts.
General Avery u Andrews yesterday was un-
willing TO say whether or not the published ex-
tracts from the report OF Superintendent Knburn
TO Governor Roosevelt his investigation Of the
State Trust Company We're accurate.
When the attention OF II. NJ. Francis. secretary
OF the state Trust Company, was called TO the
implied attack Secretary Root in the reports
about the alleged illegality of the loan To Daniel
H. Shea, private secretary OF Thomas r RYAN. he
said: ANY reports published rejecting Secre-
tary Root are solely for political effect. ana are
designed to hurt him and the present AdminiStra-
ton The loans made by this company which were
investigated by the State Superintendent OF Bank
ing ancient history. and bringing them for
ward Is simply thrashing over old straw"
AT THE IRVING PLACE THEATRE
The Golden Cage" modern drama In four
acts, by Felix Philipp was performed hv the