New-York tribune., 1900-01-19
THE STATE TRUST LOANS.
Mr.. JOHNSTON DECLARES THEY WE'RE
AMPLY SECURED.
ANNOUNCEMENT MADE AFTER A CONFER
ENCE-R A C SMITH SAYS HE OWES
THE COMPANY NOTHING.

y,
the following statement in reference 70 the loans
and the responsibility Of the borrowers:
Ny attention has been called 10 the astonishing
performance in a morning paper of publishing the
private business or the cllentS OF this nstIJutlon
1t Is 70 be noted that the values OF the collateral
to the loans were not given and Intentionally so
all amply secured as the Superintendent of Banks
has already certified
being the real party to these transactions; II Is
to each and every one of these loans The loans
We're all made in the regular course OF the com
1t is a remarkable circumstance that from Albany
We near tlat the of1clal reports are c9nndehttai Ia
all the same the proceedings against this institu
there has come. into the possession of persons
instead Of being I treaed as co1dentsI are daily
distorted for the morning papers with false i'm
@ the f0mPagg has . not snosi sailed have qaa nan
than at any time within three months.
WHAT r A c. SMITH SAYS.
When r a. c. Smith was seen by a Tribune
reporter yesterday afternoon at o'clock he
said
notice that reports have been circulated linking
Trust Company, who have secured loans on what
me company coilslu5rs perIecsly al!Ps a.
terested in these loans. I free to say that DO
wanted to borrow money could 60 elsewhere and
get geI II on more aqyantage4us Terms Ine5e stfa
Trust have done their responsibility.
One result of the publicity given the business
transactions of the State Trust Company during
the last week is that a number Of large customers
Of the trust company have become indignant that
their business matters have been exploited before
U4ePgand PrseGy gy 9oR9son 9oSg Ro is az Fons @ 10 5G
statement on behalf of the trust company tonight
When the attention of H NJ. Francis. secre-
tary OF the trust company was called to the re-
port that Attorney-GeneraI John W. Griggs had
secured loans of $4,000 and $1,000 on Chicago
Union Traction preferred and common, and on
Electric Storage, on the recommendation Of
EIihu Root Secretary of War. he said:
Mr.. Griggs, is one Of our many customers. Any
suggestion that he has ever had any transaction
with this company that was not absolutely above
said about Mr.. Root. They the kind Of
touch There is no Justification for all this agita-
ton about this company.
Mr.. Root it may be noted, before he entered
the Cabinet, was counsel for the Metropolitan
Street Railway Company, the leading interests
in which are so closely identified with the State
Trust Company Mr.. Root Is still counsel for
the trust company.
Another man interested in the State Trust
Company said yesterday that the statements
that the company had used in making such
loans, as were published, any Of the estate and
trust funds held by it were altogether untrue.
These funds he declared, were all invested in
approved securities the income from which the
company as trustee, palQ 10 the DeneuClarleS.
Referring to the worth Of the securities held by
the company as collateral for outstanding loans,
he said that a statement sent 10 Albany a few
days ago showed average margin of more
than 40 per cent between the value OF these Sc
curities at ruling quotations, and the total
amount represented by the loans made against
them
William c. Whitney. one of the directors of
the State Trust Company was seen last night
There was no conference Of the directors to-
day about the affairs of the State Trust Com
pany. I was busy with other matters all the
afternoon"
NOT OPEN TO CRITICISM. SAYS WHITNEY.
Does the recent management Of the trust
company meet the approval of conservative
men like yourself?" Mr. Whitney was asked.
Under the circumstances could hardly be
expected to criticise the management. even if
it were open to criticism, and I do not consider
that it is open 10 criticism, the answer.
Charles P. Bacon. counsel for Abram King
whose petition to Governor Roosevelt brought
about investigation OF the trust company
said yesterday that he waiting until the
report of the State Banking Department with
reference 70 the State Trust Company has been
made public.
General Avery D. Andrews yesterday after
noon declined to say whether or not the list of
borrowers with their respective collateral, pub
Hshed yesterday morning, accurate. The
disclosure Of the list, he added could not have
occurred in this city, for one here except him
self and his stenOgrapher had seen his report
one copy of which had been sent by him to the
Governor, the other being locked up in his own
Office safe.
SOME OF THE LOANS MENTIONED.
Some of the more interesting loans, as appears
by the list referred 10 by President Johnston
are: To Daniel H. Shea. private secretary OF
Thomas F Ryan, S20OOOOO, for which 10000
shares Of Electric Vehicle preferred stock and
10000 New-York Gas and Electric Light, Heat
and Power stock were given as collateral. This
loan reduced a few days ago to 81
100000 David D. Malloy. S5SO00 secured
by $50 bonds Lynchburg Electric, 1.495
Columbia, Ga. y. d. DaboH, $35OOO
William F. Sheehan. $4,000; secured by 10
bonds Norwalk Street Railway leo NOrwalk and
Southern, 1000 NOrWalk Street Railway. 3 800
Norwalk Gas Company, $641 Il NOrwalk and
ceivable. Henry p. Booth, $6OGOO; secured by
30 bonds Standard Gas and 30 bonds
American Mail Steamship Company Henry D.
MaCdOna, $4O,469; secured by 100 shares Dis
tilling Company of America preferred and 800
shares of the common stock Of the com
pany. Colonel George 3. NJ. Harvey. $4,000;
and Milling Company. % bonds of the Atlantic
Coast Electric Company, 3 bonds Of the New
York and Staten Island, and l 900 shares pre-
ferred stock of the Havana Electric Railway
Of the United States. $4,000; secured by 1T5
shares OF Chicago Union Traction preferred and
81 common and 5000 secured by 100 shares
Electric Storage 5. NJ. Rice, president of the
Dstilng Company Of America $4,000 with
% 721 Distilng Company of America common
stock and 1897 preferred stock as collateral
DistiIliug Company Of America. S2JOOOO coIat-
eral 900 Hannis Distiling Company. Miner Q.
Keith SO 600 with notes for $4,000 as security
Edison Electric Illuminating Company. $50 OOO
with a note aS collateral Mextcana Metal Com
many $40 600 secured by 80 bonds Nswtcana