New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-24
MERCHANTS TRUST CLOSES
DEPOSITORS ARE SAFE
Viii Receiue so and Probably 100
Per Cent of Deposits.

probably 100 per cent on their deposits Inability
to obtain payment of loans to more than 5000 600
on per cent first mortgage bonds of the Hudson
Valley Railway Company and large block of
bonds OF the Rutland properties of Vermont is
mainly responsible for the closing of the banks
doors.
The announcement before the opening of business
on The STOCK Exchange yesterday morning that the
State Banking Department had taken charge Of
the Merchants Trust Company had a favorable
effect on the stock market There some SELL
Ing al the opening, which caused fractional declines
in various issues. but the execution of heavy buy
ing orders. representing in large part covering by
shorts speedily turned the course of prices upward
As the heavy selling Monday was principally
due to the market menace of the failure known
10 NJ impending so the recovery yesterday followed
the removal of that menace The advance IN nr,ces
continued until noon, substantial gains being made
throughout the list: but in the afternoon trading
graaual decline occurred. the close. however
showing net advances for the majority OF issues
Present officers of the company as well as State
Banking Examiner Judson assert that these loans
were made under the administration of Edwin
Langdon, the first president Of the company. Ac-
cording 10 Mr. Judson. the bank has liabilities Of
some 100000. the assets including $500 600 cash on
hand. $4,000 New-York City bonds and 100000 for
which the stockholders can he held liza BILE This
would be equivalent TO s. per cent of the deposits
including the Hudson Valley and Rutland securi-
ties, on which II is believed at least 30 per cent
and . per cent. respectively, can be realized
The New-York Trust Company and Douglas Rob
inson. President Roosevelt's brother-in-Iaw. have
been appointed receivers by the Attorney General
at Albany.
Following Applicant for assistance and their
refusal, the closing of the banks doors had
been anticipated in Wall Street for several weeks
the Street receiving the announcement with relief
Leo II. Wise is also a director of the Rutland
Street Railway Company, DR.. John P. Mum is vice.
president and director of the same company. and
both Or. Mum and Mr.. Langdon are directors of
the Hudson Valley concern.
President Jacob L. Phillips of the institution re-
oeiyes credit for having come out in the open and
closed the institution he had made up
his mind that affairs were in a bad way. 1t was
stated that he did not withdraw his own
deposit.
PRESIDENT PHILLIPS STATEMENT
President Phillips of the company made a state
ment in which he says in part:
Among the assets which I found on taking office
bonds OF the Hudson Valley Railway Company and
l3 v oroek OF bonds OF the Rutland properties
electric light works. The trust company had made
times. which are still unpaid. amounting together
70 over E2c9Cc0 We have been repeatedly as
worth almost if the entire amount of the loans
but all efforts realize on them have Up to this
there Is a large surplus.
" nile was in the hospital. and just after 1 had
unoereone aser serious operation II appears from the
: SL@1 was made for the securities in the Hudson
valley loans, on which aDout $L20.OOo is owing
almost earning its fixed cbare tsl iS properly is
terest Oh the bonds If this loan IAN he 1919 tL
out the depositors may be paid in full and sur
worthless SUM- even Il 'he 0'her proves
State Bank Examiner Judson said that the loans
Tore made under the administration Of Edwin
l.angdon who was president from the company's
organization until 1872, wher Edwin Haw,ley sue
ceeded him. himself resignng in 1904.
FOR ~ least a year the State Department Of
Banks has been keeping close watch on the
Gerchants' Trust Conpany's business and par
Icularly the Rutland and Hudson Valley Sc
curjieS For several months the department has
had daily statement of the cnplpany's business
Father DAILY treasurer OF the Paulist Fathers
Eaid that until about ten days ago that body had
large deposit with the Merchants Trust Ccrnpany
but that II had Withdrawn funds from that con
Germ because Of uneasi''ess produced by the vari-
Gus and frequent changes Of the company's d.
rectorate.
DEPOSITORS NOT EXCITED
There was little anxiety among deoositors
There We're few women among them. M.ny in
the crowd small tradesmen. a large part Of
the group about the doors home safe" de-
positors, who have small steel safes provided by
the company. which holds the keys
The Corporation Directory for 1905 gives the
following list Of officers Of the company: President
directors George c. Batchelier Ronald K Brown
Feitner Charles j. FoiImeT Edwin Langdon. John
= Mum, jacob l. Phillips James +. Reynolds.
Wicker The capital is 10000 The officers of the
administration just preceding the present one were
President Edwin Hawley; secretary. Frederick P.
Davis: directors, Michael F. Bannin. John Cart
ledge, George {. Clarke. Thomas L. Feitner Ed
win Hawiey. Charles W. Jones, Edwin Langdon
John p Mum; Jacob l. Phillips James Z Rey
Travers. D. S. Walton and Leo H. Wise.
Mr. Hawley said he not responsible for any
O. me loans that said 10 have crippled the
institution. Those transactions. he said were
With the management of the concern. Neither
Prank J. Could, Mr.. Hawley. Mr. Sully nor GUY
Phillips, all Of whom directors January /
lsli Is now connected with the company.
According 10 the report for 1904 the stock and
bond investments Of the company included the fol-
lowing items, the amounts IN the order named rep
1esentlng the par value. the estimated market
value and the book value; Chittenden P. Co. 1st
10000. 10000. 100000: Va. Pass and Pow. Co LIST
cons. S10l 600 S $50 $55 $50; Iowa Central SIS COO
~ 90. $4,000; Taft. Weller Co. pfd, $40 600 1872 go
s2ees Tefft, Weller CO. com. Sl5oo0 g 600, 50 900;
Am Tube and Stamping So 500 g $50, s.. 250
a. Pass and Pow. Co. pfd., SS,VO 81, 81: Va.
Pass and Pow. Co com. 5000 81, 81; L. S Cotton
Duck Corp. SGO-0gJ $4,000, 5000
Albany May 23.-Local interest in the failure Of
the Merchants Trust Company is enhanced by the
important effect which the failure entails upon the
affairs Of the Hudson Valley Railway Company.
No IN Albany is in a position to say how Il
viii affect the Hudson Valley Railway whose offices
being its president Prominent among the stock
holders said TO he J. W. Herbert and G. a.
Helme. OF New York. and Peter Mccarthy Of Troy.
SUPERINTENDENT KILBURN's STATEMENT
State Superintendent Kilburn this morning in a
Statement said:
] was convinced that to put the trust company
a the HANDS Of receiver at first would necessarily