The Providence news. (Providence [R.I.]) 1891-1906, 1903-07-16
STATE OFFICIALS
SEIZE ASSETS.
Interstate Trust Company's Cash in the
Hands of New Jersey Bank Commits
sioners-Local Capital Interested.

tablish a line OF assets by an exchange
OF stocks and bonds and by alleged de
posits with one another. II is shown.
however. that the Interstate company.
| with practically no business. proposes 10
| hoat 10000. 900 OF cola teral trust mort
| gage bonds and 10 increase its capital
stock from $1,000 10 IS. oo0. 600. and this
the commissioners says is sufficient TO
raise suspicion as 10 the motives
| prompting such a transaction.
SAYS STOCK is WORTHLESS
The Interstate company was organized
| last December. and at that time de-
| post OF 100000 In cash was made with
the National City Bank OF New York as
| payment for the capital stock. but the
| commissioner charges that the deposit
was soon Withdrawn. and that in fact
none OF the stock was ever actually paid
| for. After a protracted exa animation OF
the companys affairs the department
found that on June 10 last It's resources
amounted 10 ss2ls and It's liabilities. in
cluding capital stock. to sllsOo, showing
deficiency OF fl097s1
trial balance taken by the company
on June q showed resources of s127. 40, OF
which sllo.5i0 was given as consisting Of
stocks and bonds. Investigation showed
that the stocks were SOS shares OF the
Fidelity Title and Trust company OF
Stamford. carried at $s4 64o and 1896
shares of the Central Trust company,
carried at s45,soo The commissioner
charges that all OF this stock is worth
less. and says OF the trial balance that II
is false. elusive and purposely padded
to deceive and mislead."
The charge is made that the Sl0o. .ooo al
legged to have been paid in for the capital
stock was furnished by Prindle. weeden
a. Co, OF New York, a firm controlled by
hOdan .
was afterward withdrawn by them and
applied 10 their own uses. The Fidelity
company OF Stamford the bill says, was
promoted by Leonard Imboden q Co. OF
New York, who. with the Interstate COM
pany, undertook to underwrite and A.
nance IL, in return for which the Fidelity
company agreed TO pay a commission OF
ten per cent on Its authorized capital
stock Of Sis. 0C0 All that the Interstate
company has 10 show for this commission
is credit on the books OF the Imboden
company.
In charging that the stock OF the FL
deity company Is worthless. the bill OF
complaint narrates that a report made by
IL on June shows that II had on de-
posit $4,000. purporting TO have been
made by the following Institutions
Cherokee Nationsl Bank SIS. 900. National
Bank OF Copmerce. Fort Worth $4,000 |
and New Castle Trust company $4,000.
No business reasons appear can be /
ascertained," says the bill, why institu- !
tlons located so far distant from Stam- |
ford should deposit such sums Of money /
there and the same cannot be and are not /
ordinary deposits made In the regular |
course of business in the Fidelity COM
pany.'
SAYS IMBODEN NOT IN 1T.
Leonard Imboden occupies a magnif-
cent suite OF offices that take up the
entire ninth floor OF the building at 25-27
Pine street.
The main office is divided by a brass
and glass partition. behind which could
be seen a young woman whose chief duty
u seemed TO be TO answer a rather busy
telephone. On each side were large pri-
vate offices. one OF which was furnished
with mahogany directors table and
covernss Of e oce. ssRss Wsr. ans
beautiful harmony OF rich green. In fact
he main object OF the decorator seemed
to to be to produce upon the beholder an
When a reporter called at the offices
yesterday afternoon he was met by
nan who said he was Mr.. Imboden's rep
Mr.. Imboden is now In the Southwest.
and he has been there since the middle
# June. cannot imagine why Mr.. Inn
he affairs OF the Interstate Trust com
)any He does not own cent OF stock
n IL, is not an officer in II and has had
He Was asked sG i Il he he Rad RGmNo9 Sny idea why
he attorney general had taken proceed
nes against the Interstate company
Not the slightest, merely know the
'Will you state what Mr. Imbodens
business is?"
lie operates entirely in the Southwest.
mostly IN Texas"
Edward NJ Prindle and Arthur p. Wee
zen. according to the Corporation Direc-
M ~ a., p=f,,
en- x Co. MIR. Weeden Is described In
he directory of directors as Trust !
Z the Fidelity Title and Trust company.
he Interstate Trust company and tho {
securities Trust company.
IL the Interstate Trust company Of Jer-
ey city has an office In that city the
ess directory failed 10 locate it The
ompanys name does not appear in the J
elephone directory. and nobody. doing ! I
nows anything about the concern could
e found last night {
The Bank Examiners report shows a
rat the control OF the Fidelity company =
nominaly I'm the Interstate company.
nd the control OF the Interstate company
nominally In ,he Banden company. the
liter being the successor of Prindle Wea
en Co. The directors of the Banden '
lmpany, as shown by the charter. are y
PIN j. Banisan, b. l.. Arbecam. J. p .
erls Charles J.. Kingsley and H. y.
'n or a wealthy rubber maenate Of Prov
ence. who died leaving m estate OF sew
'al million dollars. While the depart :
ent lacks ~. itive information on that
oint there Is a strong suspicion that
n. Banigan has not been fully apprised
the character % the venture IN which
? embarked. and 10 is hinted that his
cans attracted Imboden and his asso-
ates.
Mr.. BANrGAN's STATEMENT.
Mr. John J. Banigan OF this city wn-,
nrroached by a reporter IN regard 10
Il connection with the company stated
rat the Interstate company voted 10
asolve last Tuesday and paid dollar Tor
'llor on All they owed according 10 =
port submitted 20 the directors
He said he was not 4 rector and
aver had been. Tho company he stated
ould do no more business except TO set
2 accounts.