The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-21
ATTACK COLER IN TRUST co.
THREE DIRECTORS TRYING TO
PUT HIM OUT OF GUARDIAN.
But Ma Jority Is With Him and Says He
and the Company Are An Right-Alle-
cations That Cash Was So Deposited
as to Omen Way for Personal Loans.


Of the Guardian Trust Company, OF which
he became president last fall, has been
called into question by several directors
and stockholders, and two OF the latter,
William H. Walker and f. Ellinger have
served on Mr. Coer complaint in suit
Of some kind, presumably for an account
ing, the answer to which is due in the su-
preme Court in this city on Monday.
The directors, who are in open opposition
to Mr. Coler, and who have demanded his
resignation. are Ernest c, Brown, David
Bennett King and Carroll P. Bassett At
Mr.. Browns request George /. Skinner.
the Deputy Superintendent OF Banking,
visited the city on May and spent several
days looking into the affairs of the com
pany, He is said to have reported 'haC
there was nothing wrong.
The three directors named have sent
out to stockholders requests for proxies
for special stockholders meeting they
expect to call, which proxies authorlHs
the recipient:
name. upon any and all motions resolutions
or acts, for the purpose OF securing the icn
turn OF any moneys TO tne com3u mE T y nv
reason Of any misuse of the funds Of he com
pany by one or more OF its Officers or
and in removing any officer or director, who
may have been coneerned, in the syndicate
loans upon the toeE OF n s reetop To
fer or dispose Of any stock Of this company
standing in his name. or to INN eeionsin ne
ar that may be under his control. or TO JON
in any my request or cali for meeting of stock
holders for any purpose
Mr.. Brown said last night:
when Mr.. Coler entered the company
1t was stipulated that he and his friends
were to provide 81 ,oOO,0Oo OF new capitai.
in,
taken up on Sept. Is. On Sept. is there
was deposited in seven banks. including
the National Bank Of North America, where
500 900 was placed, the Bank Of New Am
sterdam another 32O0,000. the Gansevoort,
Garfield and other Morse banks, S77e,ooo
in nil of the trust company's money.
"From each bank, as he admitted 10 me
later Mr. Coler secured a loan OF the amount
of the deposit, secured by his trust COM
pany stock and his personal notes. and the
stipulated 100000 was turned over 10
ION Dec. Fl, Mr. Coler formed syndicate,
Including r. W. Jones, DR., George W.
Tairchild, Ludwig Nissen. George f. Green
and others, 10 take over this 3ooo,ooo OF
stock.
was ali withdrawn from the Morse banks,
where it had drawn per cent. as mac i've
deposits, and 500 900 was put in the Shoe
and Leather Bank and 500 600 in the Con
solidated Bank. from which TWO oan ,ss
the syndicate then borrowed money on its
syndicate agreement and other security
and took up the 81 100000 OF stock, whcn
stock then was also deposited with these
two banks as security; 80,
Il Was informed that tnese moneys oii
deposit were unavailable to the company,
and on March last l wrote TO MIR; Coier,
demanding that a meeting be called on
the 10th TO divorce the trust company's
moneys from the syndicate's operations.
<,l> ~ will
Jones and L. H. Fallows. / was put on q
committee to bring about the reduction o.
the capital stock as the only means OF
effecting our end.
At this meeting Mr.. Coler promised si,t te
resign if two of the committee requested
II "a a mart of the reorganization plan.
INV committee of three reported that
$500 600 Of the company's money was prac-
ticaily unavailable owing to personal trans.
actions of MIR. Coler with the depository
| we're really withdrawn a precipitation OF
| the company's stock on the market would
I'VE recommended that the capita be re.
| d,lced to $500 900 and the surplus TO $oCOGO'
and notified the directors that Mr.. Colel
had promised to resign if we asked. Mr.
Jones refused to sign this report;
! aThe capital stock was reduced bu
Mr.. Coler did not resign when Mr.. Fallow'
and requested him to do so. Nor has NJ
turned over the, ,es1T shares OF o,, s,Ge,
| we were to take from him. In my opiilioi
he should do both at once.
Mr.. Coler said last evening that he mas
seen Mr.. Browns circular and knew thai
accusations were made Of improper use o
the trust company's funds. =,
Il have nothing to say about II, ne salo
Except that the company is in an excellen
financial condition.
Ut has done as good a business as an.
other company Of the sort of the same age
The character Of the men who have s'gne;
the reply to Mr.. Browns circular Is enougl
to satisfy any man acquainted with suc
subjects that the company Is all right
Their answer must suffice for mine.
The answer to which Mr.. Coler relsrre,
was signed by R. w. Jones Jr., r. ". WOO!
and j. II. Parker, and said that the "insinu
tions in Mr.. Browns proxy request wer
upiustifiable;" that the imaginary wrong
had been carefully considered and by
vote OF 10 to 3 the board OF directors ha
passed this resolution:
P,solre6. That the board deprecntes tn
language OF the resolution heretofore onere
Ibv Mr. Brown. attacking Coler.s menace
mentl and lost as sSsndaiIous sna , Gn'a ad
I'M RH1saired, That the board. after full d';
s cuid RESOLUTIONS, believes that the interest
Of the company have been well oonserts
by the action OF the officers ana t to crit ~
ESQ are entitled to the warm thanks of II
hoard for their unselfsh efforts in the con
panys behalf. ;., .,o .,
no,,ncement that If any stakeholder d'
sired detailed information OF the motive
~ Mr.. Browns letter and full eHhibitlc
az the affairs of the company he shou
: call upon the officers OF the company al
also inspect it's assets and records.
, F-.Tax Collector II. Ross Appleton {
BROOKLYN, first vice-president OF the con
many, said last night:
his work honestly, competentiy ana we
, We have Endorsed everything he has done.
sThis company has done better than ar
l other trust company organized in Ne
York last year All our office fittings a.
? Maid for and other expenses in connectio
With launching such an enterprise covere
and there is a snug little earned surpl'
of $4,000 a., ,ou,s,v has no,
? orpnniued Mr.. Coler has not had one ce
r | Of salary. | arm supporting, him CeSan
g.. 7 know he il absolutely and unassailab
, right in this matter. ca.
sTbe banking Department OF the sta
. has already decided that there is no bal
| for these allegations Of mismana gemeI
4 Ia am in favor, however, Of a thorough al
I ing in the courts.