New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-16

came to give his check for 100000 to Mr.. Payn.
| This man said that Mr.. Payn wrote to Mr.. Whit
ney personal and pathetic letter saying he was
in deep financial waters. and was threatened
with the loss of his fortune If he could not raise
| a large sum of ready money. He begged Mr..
| whitney, on whom he admitted that he had no
claim, to lend him 100000 Mr.. Whitney, moved
| by this appeal, did so out Of the kindness of his
heart. This letter is now in the possession of
| Superintendent Kilburn. it is said.
MR. wHITNEY's STATEMENT.
William c. Whitney. when seen last evening
at his home in this city, No. 81 Fffth-ave.
| said:
1t is true. believe, that the State Trust Com Com
pany d.d loan to Mr.. Payn money, but IN SO doing
Which, M fP PayR supported the loan It is not
usual Tor trust & fber Customer but
in this the trust company has shown It's
now acquainted With the character and amount
Of collateral which MI Pawn put up as security F
protecting the trust company. and II Mr. Klburn
WITH regard to the $4,000 loan made to the
syndicate OF which I am member This loan
certain that this in anyway % violation Of the
law in that it exceeds the 81 10000 limit aifn9 baT
Thought of at the time we souId easy have Spit PIT
Of which would have been well within the pre-
scribed limit, II thought that as the loan
was made TO a syndicate and not to an individual
the law this point would not apply - .
worth almost double the amount Of the loan. When
the matter brought to my attention | wished
burns request the matter was temporarily allowed
to stand II was. This afternoon, however,
Thomas F. Ryan and myself paid our shares OF
this loan-SS00. 900 each-and Mr.: Widener will pay
reduce ice the femainder of the loan to within the
legal limit The directorates OF the trust companies
members Of other financial corporations, the bust.
money. I do not feel sure that in such cases it
would be illegal for them to borrow money upon
utions in which they happened to be ed directors
made this pn to and cited Humber Of es
of men engaged in business. who were also direct
stitutons should not consider it wrong for them
to borrow money,
While bankers in some quarters are expressing
serious objection to the invasion Of the privacy
of the trust companys loans politicians are
searching for political material in all Of its
ramifcations. For example. THE Brooklyn
Eagle" says:
out Of the Investigation. ordered BY r- Governor
pany is likely to spring sensation elton which may in
Of INSURANCE, but other and more prominent poll
is a mere incident and while ii comes TO the
Governor most opportunely and gives him material
Re head e of he the
statements made this morning Thn r by Charles F.
| the Payn matter will be overshadowed by dis
Mr.. Bacon who is a very excftable man. and who
this morning was evidently under great nervous
se S by bs5
| loans had been made also to Attorney General
GTiggs This, he said was done at the instance
ton inc company anu VINO aSSS'so IN It's 0'S"''Aa-
BACON's REPORTED STATEMENT
THE Eagle" goes to quote Mr.. Bacon as
follows:
Elihu Root was counsel for the Metropolitan Trac-
tion Company He Is still stakeholder and d.
rector in the State Trust Company. Ten of the
of the American Surety Company. II was probably
easy for Mr. Payn 10 get his loan: You see II the
to be done under the direction Of the sGper dHe
hat MI a8n was only E few months
ney General Griggs also got about $780, giving as
collateral Electric Storage.
Mr. Bacon also made this statement on the
alleged relations between the State Trust Com
pany and the American Surety Company, and
also concerning the loan to Mr.. Payn. He said
in part:
are IN the surety pany the
can Surety Company could not lend the money to
the superintendent Of That %ou ~
hs sEe been n eca but M Pay9 cod go down
which was practically the same concern. Mr. Pawn
%as osn What a. s a Me u de S that it
perntendent of Banks get man from the Union
Trust Company or any reliable company to ex-
anime this collateral that the State Trust Com
pany now has and replace the inferior part OF II
with such as the good companies themselves would
require. We make this demand as minority stock
nolders We believe that there between 81 OO0
600 and 100000 by securities that NO COR
servative company would lend
STATE TRUST AND AMERICAN SURETY
= The inside history of the relations between the
State Trust Company and the American Surety
Company is this: About two years ago last 6s
Sem3er a syndicate was organized. consisting of
- e: Smith, Elihu Root, Thomas F. RYAN
william G; Whitney, P. A. B. Widener Anthony "
Brauy ana other capitalists, most of whom were
connected with the Metropolitan Street Railwav
Company The purpose of this syndicate was n
buy controlling interest in the State Trust Com
pany6 which then had deposits amounting to SO
At that time. and for some six seven years pre-
Vious, FRANCIS s. Bang the president on tha
company, and Maurice g. Decker the secretaT,,
Its deposits in large part consisted OF Euardiansbin
funds, executors funds and savings bank fiIndsP
Its MANAGEMENT was extremely conservative ana
It's policy was not TO lend more than $3.50 900 10 any
one person or corporation no matter how high the
loans was OF the highest order, following the ex-
ample or such concerns as the Union Trust Com-
Trt5af