New-York tribune., 1903-02-18
RIPS OFFICERS LOANS.
Then and Directors Buro1Ced Large
Sums from Monmouth Company
ITS INVESTMENTS CALLED ILLEGAL
tBr rrLEGrArH 10 THE THIBUNE.I

Court OF Chancery to-day for the appointment
OF a receiver for the Monmouth Trust q Saie
Deposit Company Of Asbury Park, which cioseo
its doors on Friday. The total assets OF the
company are placed at $4SJ.059 and its haolli-
ties including capital stock of 100000. at s'-9-
16S A rule to show cause why a receiver
should not be appointed made returnaoie
before the Chancellor on Tuesday
Larue Vredenburgh, examiner of the Bank
ing and Insurance Department, to-day submit
ted the following schedule Of it's assets and liza
bilities Assets-Bonds and mortgages. $-oovo'
stocks and bonds. $50 945; loans and discounts.
1893, ,3I9; overdrafts, S11.O7O, furniture and
fixtures 81 900; real estate. $1,000; cash on
hand 1858; cash items, S505S; due from other
banks. s1O425: accrued interest receivable.
S3, ,627: total s4s5,O59.
Liabilities-CapitaI stock. 100000; deposits
and certified checks, S325, 1893; due to other
banks. $9455: bills rediscounted, $33,s2O; bills
payable. 100000.
OF the deposits Ss7, ,69i are of the class known
as savings or time deposits, and $23I.o1O are
demand, or part time deposits. Certificates of
deposit amount to 1896. and certified checks to
S252
The examiner in his report attributes the COM
panys present condition to illegal and unsafe
Investments He finds that the ten officers and
notes for sums aggregating S141,1 as follows:
President A c. Twining. s124o1; Treasurer D.
C. Cornell, SS.721: George F. Kroehl. $61,32O
G. B. NJ Harvey, So, sol; s. A. Patterson, Sill,
22O; r. A Tusting, $5,Ol9. w. j. Harrison,
So 100; r r Smith, S7OO; w. K. Ryan and A.
s. White, nothing. He points out that the Off
GERS and directors are liable on paper in the
aggregate to more than the entire nominal capl-
tai. surplus and undivided profits The report
continues:
This large. hsbility. Of the directors and par par
the subject Of repeated Criticism by your repre-
sentative. and of criticism and Iemonstrancss by
s4TaSca Witch RaRe been entiFe
The liability Of NJ Harvey is not beyond d his abi-
The Liability b M Of Mr. Twp i 50 Tse s n his
5fiiity to pay is extreney doubtful Further
more, there other liabilities of Mr.. Twning.
tional Bank Of asbury Park. which your repre-
sentative is informed amount to about so This
oans 90 shares Of the F. f. Schulz ManHfact1r5
ing Company, of par value of a.Soo, but having
The liability of Mr.. Kroehl as payor is partly
Ppa pppar hf gns6 en e I @ upon me
under which he is doing business in New York
Ehether there was any ether perSen wish f Georgs
th Fo91s 5o sh9 nm Of the Hem Kroeh pape
Il seems TO be generally believed that G. F Kroehl
fos %h2s " pspr r sg1e Iae Rh s
The amount signed George 2. Kroehl'' is s15,5oo
payor. s2O20o. consists of two notes-one OF which
is for $4,000, upon which there are four other
nine other payers. Upon these last two mentioned
ns Ss no o r. rhoqgf5 % 10 nofe of pan which he
liable as payor without tndorsers- They are
formsd ha T spf5 Kroeh IS able as payor to the
First National Bank 70 the amount Of about so 900
and as indorser TO the same Institution 70 q Ike
amount. making altogether liability on the part
addition to a sight draft Of s carried as cash
% m aRd rosb on which bbd M R5f has we're Fger
both T4sEf The aS h pager to
the acceptance OF much Of Mr.. Twining.s paper.
The paper of H ". Cornell a brother Of Treasurer
p The TasPoEns5ity Of neither nor Of
both warranted the acceptance of such q large
amount of their paper.
TIE report says that on February 13. the day
the First National Bank was closed by the ex-
aniner, the trust company purchased Ss1 shares
of the stock of the national bank for S44S1o, or
S117 share. It is reported that the stock sold
in Asbury Park recently at $40
The examiner says he also found loans to the
Frazier Mountain Copper Company. Of New
Mexico in which Mr.. Twining interested,
amounting to S22,5oo. He condemns such an
investment as imprudent, There was also a
loan on the stock of the copper company of
5000 to F. S. Shepherd. The collateral was
% 600 shares of the copper company's stock
thus leaving margin. required by the
trust laws of 1899. This loan the examiner
brands as Illegal He adds:
Mr.. Shepherd is esteemed honest and
ne OF hgh 9gt 6 sa noes net Ipp9S ao
There is authentic information as TO whether
there is intrinsic value 10 his stock.
Among other loans which the examiner con-
siders excessive and unsafe are these: W. II
Beegle maker S17.55o. indorser $1,000. Samuel
Johnson maker S37.250. indorser $4o.s90; FL
heron Hotel and Cottage Company. maker
So 600 irdorser S14.116.
Il have not had the time opportunity. he
SAYS carefully to investigate the value OF the
paper held by the company as security for
loans and discounts but / am satisfied from
such inquiry I have been able to make tnat
there will undoubtedly be very material
shrinkage in this item. But, allowing all such
paper at its face value. the deficiency found III
the value of other assets is sufficient TO make
large and dangerous impairment OF capital %
Wit S4i 100 as is shown in the statement OF
actual condition
Aehurz, Park n j. Feb. 1.-THE action Of
| Colonel Harvey in rendering certified check
| 10 cover all the notes Of which he is the maker
held by the Monmouth company was commend
cd here on all sides The Trust company holds
| Colonel Harvey's paper worth $50 To offset
this he has cash balance of $4,000 The
moment he learned of the company's trouble
he arranged with Mr.. Vredenburgh to take up
the outstanding oblisa tions To-day he sent ia
state Ranking Commissioner BEETLE q certified
check for ST b01. making total OF So--opl sent
IN the pepa rtment of Banking and Insurance
TO meet his full liability as a director.
MI Twining and Mr.. Cornell. OF the company.
and Mr. Kroehl. president OF the bank. iett
here to-day for New-York- II is thought that
they went there to get financial AID