New-York tribune., 1900-01-25
STATE TRUST co. s POSITION
PRESIDENT JOHNSTON JUsTIFIES HIS
POLICY AS TO MAKING LOANS.

Walter s. Johnston, president of the State Trust
Company. speaking of the effort to cause the State
authorities to take action of some sort hostile to
the trust company, said yesterday:
These men are on their last legs. They have
been compelled to abandon every charge that t had
the slightest substance in it. Tney went to GOV
ions by influential directors They are reduced
to plea of legal technicalities and to forced con-
structions of law concerning one single transac-
tion-the loan of S2OO0OOO to a syndicate of six per-
sons, IN which three of our directors were inter-
Well in the first place, this loan has been paid.
ties and the transacton is concluded. And ends.
pbe Tag Ssgas my P done t6e Th
eoliateral security to the loan was worth from %
5000 900 of Consolidated Gas bonds; and we were
aoIe @ TO place the considerable sum Of 100000 at
ed ne % m OF whose o deposits @ aver
case Of directors misusing the company, only wish
J. ma nau Few more such directors. AS matter OF
pany; bringing useful business to the company,
in it's Welfare SbnP n up Pa ana nIo to socboe m9
An9 "a II Is precisely this which has distingulshed
ment secured control pc'ris one year year ago.
Mlnd you, it is in the guise of stockholders that
forty shares They do5t like the fact that our
year ago IT that our surplus is 81 20ooo0 as
against SSOO,0o and that doing more bust
ness and better business every day. Is any one one
so blind as not TO see the motives of men who with
Pany Which has this H record to the
credit OF a single year of administrationE M g.. 80
to lend money on good collateral to partnership
association of six persons joint account in
which three of directors were interested IL
happens that the three persons not directors had
the largest interest in the syndicate and We're per-
of the highest responsibility and credit, one
are thousands of such loans in New-York to-day.
The large financial transactions of New-York call
ing for the use of money are conducted by great
firms. The individual members of such firms are
sought for by trust companies as trustees by rea-
Of their knowledge Of securities and their strong
loan collateral to a syndicate partnership in
which trustee has interest, am afraid there
Will have to be a general readjustment of loans.
From one point of view our deposIors, clients and
friends may be congratulated upon this assault
1t has caused, upon our demand an examination
little books. For three days the official
examiners have sat here at my desk while there
has passed in review before them every detail OF
our company's business. No bank in New-York
ever subjected to searching and complete
an inquiry the we not only invited, but ex-
stockholders hereafter beyond the reach of such at
tacks as the one recently witnessed
1t was reported downtown yesterday that the rep
resentatives of Standard Oil interests were soon to
be added to the Board of the State Trust Company
While the rumor could not be verified. II was
thought to be not improbable, in view of the ap-
parent combination of Standard Oil and Whitney
syndicate interests evidenced in the recent cleo
tions of directors of the New-York Gas and Elec-
trio Light, Heat and Power Company and the Con-
solidated Gas Company.
several SInali lots OF STOCK OF the 0ttle 1IusI
Company had been advertised for sale at auction
yesterday, but all were withdrawn except one block
of twenty-five shares, which sold $50. The last
previous sale was at 800.