New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-17
L. F. PAYN TO Mr.. WHITNEY
THE LETTER WHICH LED TO THE STATE
TRUST COMPANY LOAN

IRUSI COMPANY LOAN.
SENT FROM HIS OFFICE IN ALBANY LAST
SEPTEMBER, AT THE TIME OF HIS
wIFE's ILLNESS = MR.. JOHNSTON
SAYS 1T TELLS ITS OWN STORY.
President Johnston of the State Trust Com
pany said last night that so much inaccurate
speculation had been printed in regard to the
letter of Louis F. Payn, In consequence of which
the Payn loan had been made that it had been
suggested to Mr.. Payn that the letter be pub
lshed Mr.. Payn had replied that he had no
objection. The letter is follows:
State of New-York,
Albany. Sept. 49, 1899.
Ny Dear Mr.. whitney: The bearer Mr. Henry D.
appleton is my chief deputy. He goes to see you
be be able to aid me Or not, Last winter bought
dred sharesfor frienGs and iess amount for nY
SELF 6 put margin on the whole, and from time to
exhausted I also hold. or my brokers do for me,
oyer qo. one thousand shares Of Metropolitan Street
could couiid get away from home for forty-eight hours
myself soe ns Ws is n9 9g 9Hd at the point O
myself from not ea Nv her 6ror r has aay to
fr1 70 nod my stocks until Wednesday My doctor in
very truly yours LOUIS F. PAYN.
so great favor as this of you but assure re Ton 91
any loss may sustain. ''i own P2YN a nSSS'
Mr.. Johnston added: This letter tells It's own
story, and there is no other story to be told
Mr Whitney was under obligations to Mr.
Payn, as the latter frankly states So far as
the trust company was concerned, the loan was
well secured and was taken at the proper rates.
For whatever personal risk Mr. Whitney chose
70 take in guaranteeing the loan the letter Is
the only explanation. There was and is no
other"
REPORT AS TO HOW 1T WAS DRAWN
The 100000 certified check which was Mr.
Whitneys response to superintendent Pavn's
appeal was, according to Mr.. Kings attorney
drawn not by Mr. Whitney, but by the Metro
politan Street Railway Company on the State
Trust Company, and was marked Construction
account" The securities put up with the State
Trust Company in addition to the 100000
check, as collateral for the loan to the Superin-
tendent of Insurance, were as follows according
to Mr.. Kings representative: Fifteen thousand
dollars NewYork and North Shore frsts, 1850
shares Electric Storage, 1,O1215 Metropolitan
Street Railway, 500 United States Express and
100 Electric Storage preferred
An officer of the State Trust Company said
yesterday afternoon that the $2,000OO0 loan
made to Daniel F. Shea, private secretary of
Thomas f. Ryan, the nominal representa-
tive Of the syndicate which the real bor-
rover, had been reduced to 81 100000 Messrs.
Ryan Whitney and Widener having paid up
their shares OF that loan, $3o0.0oo apiece.
NOT THE CAUSE OF THE INVESTIGATION
General Avery D. Andrews who examined
the trust companys affairs on behalf of Gov
ernor Roosevelt declined yesterday to discuss
he mat fer rtb to hat he paw
transaction was not the cause of the investga-
ton, bat merely development and that
the company Unquestionably solvent.
Abram King, of No. 96 Broadway. the lawyer
whose petition to the State Superintendent of
Banking led to the investigation of the State
Trust Company last week, said yesterday:
nenden Kbun W With h0T TefeTence to- the assets Of
the e State Trust COMPANY Perhaps when h he tir came
better.
H. D. Lyman, president of the American
Surety Company of New-York, said:
Formerly the American Surety Company was
quite largely interested in the State Trust Com
pany, but we have not been for many months. We
are inclined to favor them when we can as they
tenants. We have no closer relations
seven IS other other State Insurance commissioners Any
Of them at any time can walk walk IN here and satisfy
We glad to have them come, and they do not
was director in the American Surety Company
He was one of the ffty-one trustees at time
make place for some ore else Some of the diree-
tors of the American Surety Company are also di-
rectors of the State Trust Company but this com
pany is absolutely Independent and distinct from
With the Union Trust or, the United States Trust
as they are with State Trust Company.
ESTIMATED AT THEIR CLOSING PRICES.
The loan to Mr. Payn as nearly as can be
ascertained, was about $435O00 The securities
given by him as collateral, estimated at their
closing prices yesterday, have the following
value:
1,O12la Metropolitan, at 164& s1ss SOC
100 Electric Storage preferred at 1900
New-YOrk and shore hrsts (par) 1900
Check from Whitney 100000
Total $4,000
On September 1S, 1899 however the day Mr..
Payn's letter to Mr. Whitney was written.
these stocks were materially higher, Metropoli-
tan having closed on that day at 1919, Electric
Storage at 120 bid, and Electric Storage pre-
ferred at 13O bid.
KILBURN AND THE GOVERNOR CONFER.
Albany, Jan 16 (SpeciaD-Governor Roose-
welt had as one of his earliest visitors to-day
Frederick D. Klburn, the State Superintendent
of the Banking Department. and there followed
a long talk by the two officials the affairs
of the State Trust Company. Mr. Kilburn made
a statement of the result of his examination
and that of General Avery d. Andrews of the
books of the trust company.
Subsequently Governor Roosevelt stated that
Mr. Kilburn had informed him that it was not
customary for the Banking Department to dis
close the confidential reports made to 1t about
the financial condition of trust companies OF
banks and therefore he (Mr. Kilburn) should
not make his public. that of General An