The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-08
MADE COLER AGREE TO RESIGN
uoSTIIE TRV ST 60. DIRECTORS
rJpGRT THEIR PROCEDURE
nney do Not Paint u as a Voluntary Act
In Fact One OF Them Demanded n
Resignation In writing, 10 he Used
when Handy, hut Took Verbal Promise.

when Handy. hut TOOK verbal Promise
Some intimate and highly interesting
.,,o;,s Of Bird s. Coler's connection with
,ho Guardian Trust Company, from the
,.oaidencv of which he announced on June
., Ms voluntary resignation, are set forth
a., "personn and confidential circular
.hicb was sent on June to stockholders
orthe company by Ernest c. Brown, David
porrct, King and Carroll p. Bassett, di-
.oc,ors who were hostile to Coler.
Mr. Coler. it will be remembered, sought
tho presidency of the company with a
nromjse to quit politics and 10 get his
friends to provide the money to increase
The capital and surplus each from $500 600
10 sl.OooOOo The circular quotes him as
saving
am out Of politics for good. | have
Hanged 10 get back into business. and If the
stockholders accede TO my demand for all
III, proposed increase Of capital. ! shall give
the trust company all my time and thought.
can and will make it great and successful
Institution
Nr. Coler was to pay in the extra $1,000. 600
on Sept 10 last. On that date, 50 runs the
circular. Mr.. Coler obtained on notes with
the new Guardian Trust stock certificates
Az collateral $780, from seven banks
known as the Morse banks" On the
same day he deposited with these banks
a like amount of the trust company's money
which drew only per cent. interest.
Just before Dec. "a. says the circular,
a director heard rumors that these loans
were TO be called He visited Mr. Coler,
who said that the rumors probably arose
from the fact that he was buying Morse
ont" On the oath Mr.. Coler informed the
director that he had fixed the matter up
with Morse, had taken over his interests
and had his resignation from the board.
1T now appears, however" reads the
circular, that a syndicate had been formed
composed of seven directors, r. W. Jones,
Jr W F. Balkan, George T.. Green, G. W..
Fairchild. Ludwig Nissen, Hotch &
Barber and Mr. Coler" The syndicate
agreement and trust company stocks Were
deposited on Dec "a with the National
Shoe and Leather Bank and the Consolidated
National Bank, and $500 600 was there bor-
Yowrd and an equal amount of trust COM
pany money was left on deposit ,..,
These transactions show how faith
fully Mr., Coler kept his agreement with
fin, stockholders. the circular comments
During the time these funds were so locked
M demand loans brought from to 30
orccnt
On March Ernest C. Brown demanded
oi Mr. Coer that these loans and locked up
funds he sifted by the directors. After daily
meetings II was decided that the only way
90 clear the situation was by reducing the
capital and surplus to the old figures, $500
coo each, in force before Mr.. Coler took hold
,omake a great and successful institution of
the Guardian.
Al the meeting at which this was decided
according to the circular, the following
dialogue was held between Mr.. Brown and
Mr. Coler:
unM in the hands of the sub-committee
Ncs.rs. r. W. Jones. Brown and l.. H. Fai-
MIR. Coler--I will give my resignation when
asked for by the board Of directors.
Mr.. Brown-That won't do: your conduct
Justiies the demand now make on you for
your rcsignation WI you give it, whsn
dciianded by the Executive Committee
Mr., Brown will not accept this: demand
that Won place your written resignation in
he hands of the subcommittee to be pre-
sNntcd and acted on by the board at the dis
Oelion Of majority Of the subcommittee.
Mr. Coler-This would ruin me and blast
my future. Do not demand my resignation
u writing. ] will give II when the Executive
Committee calls for 1t.
Mr.. Brown insisted and Mr.. Coler pleaded
until. when Mr.. Brown asked if his promise
could be relied upon, Mr.. Coler said:
am a member of the Stock Exchange;
Mr. Parker and MIR. Chapman are members
and know that a man who breaks his word to
fellow member might as well 80 out Of the
Street My future is here and j shall be
ruined If fail to keep my promise
The stock reduction was carried out.
Mr. Coler resigned and the report has
reached Wall Street that he is about to take
up political acrobatios where he left them
in order to make great and successful
institution" of the Guardian Trust Com
panv.
WAS she resigned?" asked the clergy
man of the widower he was consoling in
Attic ton
Resigned? She had to be-" said the
mOurner.