The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-26
LAY IT TO FISHER, FINANCIER.
ROCHESTER MANS PROMOTIONS
WRECKED MERCHANTS TRUST.
Helen and Frank Gould interviewed Out
OF Friendship for Dr.. Mum ana Now
sufref for It-Ffsher Under Four
Indictments - jerome Invesuga ting.

| SuUcf IOT N-rIu0cr Uuuof Four
Indictments - jerome Investigate
In the affairs OF the Merchants' Trust
Company new financial figure came into
view yesterday. He Is George E. Fisher,
at present under four indictments in the
Court Of General Sessions OF this city for
ton with the affairs Of the Southern Textile
which are in the hands OF receivers.
Mr. Fisher comes into the affairs Of the
Merchants Trust Company through another
deal of his, namely, the Virginia Passenger
and Power Company, to which the trust COM
pany loaned 81 500 900. This loan was taken
up by Helen and Frank Gould about year
ago, and as a result the trust company got
a little longer lease Of life. Fisher when
the loan was negotiated. was a director Of
the trust company. He was eliminated later
Helen Gould is now suing Fisher, alleging
that she was induced to take over the
securities misstatements. One OF tbs
allegations ia that the receipts of the COM
pany were padded by having men employed
to ride on the trolley cars to swell them.
1t was further alleged Yesterday that
this same George L. Fisher was behind
| tiIo Oedl ny WHICH, WIS u tSl company maze
loans on an investment In the II udson
Valley Railway Company securities to the
amount Of 81 1000
Fisher first appeared as a promoter about
four years ago Since then he has rather
staggered the financial district with some
! OF his schemes. The Goulds appear to
have been the persons who We're generally
| named as hackers by him or his agents.
1 ThAry t~l
| both the Virginia deal and the Hudson
Valley deal. The fact is that they were
behind neither. according to the lawyers
for Frank Gould.
Fisher came from Rochester. He has
an office now In this city at 81 Wall street.
He is at present director of the United
States Life Insurance Company of which
DR.. John P. Mum is president. 1t Is said
to have been through the friendship he
| contracted with Dr. Mum. once the Gould
family physician that he got into the Mer~
chants Trust Company.
The Virginia Passenger and Power deal
was put through by Fisher in 1901 and
1902. He organized the company which
took over the Richmond and Manchester
and other trolley roads and companies.
Early in 1902 he succeeded, 1t ia said, in
properties, and shortly afterwa ard Fisher be-
came director OF the trust company and
director Of tho insurance company. Not
only was he made director Of tho trust
company, but he was also put on the execu-
tive committee. which, passed on loans.
The first loans to Fishers company
were made early in 1902 It was the
first big venture the trust company en-
gagged in. Loans we're made to Virginia
Passenger and Power several times
month for a good many months, the col-
lateral put up being, as was the case later
with the Hudson Valley and the Rutland
properties, the stocks and bonds OF Fishers
company. which had no market value then
and have had none since. The loans made
finally got up to close to 81 100000.
These loans were made between exanina-
tions Of the State Banking Department.
When the bank examiner first found them
he called upon Edwin Iangdon, then
president, for an explanation.
"I'll tell YOU" said Mr.. Langdon. 'Mr.
Fisher. who has recently joined our board.
knows more about these properties than
do and I'd like you to see him."
Mr.. Fisher was called upon. We're the
securities good? Well he should say so!
The trust company, said Fisher. stood to
clear 81 500 900 cold by the deal. The Goulds
were back of the Virginia company, and
the registers on the companys cars in
Richmond and other places were ticking
like clocks with the fares that were being
rung up. The securities were put down
for what the trust company said they were.
worth, but from that minute the company
got repeated warnings from the State
Banking Superintendent that it must Use
every effort TO get rid of them at the best
price it could get.
Fisher made another deal with the United
States Life Insurance Company, that COM
pany investing in about 100000 of the
securities. The Insurance examiners came
across them and refused to accept them
at any value. Then it was announced
that somebody had taken tho bonds OF
the hands of the life insurance company
at IS. That caused good deal OF wonder
in Wall Street. There is good authority
for saying that the lenefactor was Miss
Helen Gould.
Before this, after long hammering BY the
Superintendent OF Banks the trust company
got an offer even more generous than that
Of the life insurance company. 1t was
from Frank and Helen Gould. They offered
to take up the Virginia securities held by
tne tTust company AT thelr par value ana
accrued interest. just what proportion tho
brother and sister took Of this Is not known.
In spite of this generous offer, the trust
company lost $3.50 900 on the deal that was
to have been what the Shipbuilding hota-
tion was to mean for the i'll fated Trust
Company of the Republic, the former ten
ant OF the offices now occupied by the re-
oeivers OF the Merchants Trust Company.
Duncan A. MacIntyre Of II Broadway.
who is associated with Lawyer William B.
Ellison, counsel for the trust company, said
yesterday that in taking up these secliri-
ties. for which the Goulds gave something
like 81 400 900, Frank Gould and Helen
Gould were actuated by desire to help
Dr. Mum. According to his friends DR..
Mum had been taken in badly by Fishers
representations. In defense Of the State
Banking Department 1t WA said yesterday
that had Mr.. Kilburn closed up tho COM
pany then before this loan was taken up
the company could not possibly have paid
more than 40 cents on the dollar to depositors.
1t was about year ago that the Go'lds
came to the assistance Of the company.