The Owosso times. (Owosso, Mich.) 1897-1926, 1905-05-26

The item of stocks s5s, 400 is made up of $50 900
Owosso Carriage Company stock and $500 OF
Owosso Sugar Company stock.
Among the bills receivable and overdra fits
are included notes and overdrafts. secured and
unsecured, of Chas. ID. Stewart aggregat.
ing O,2l656 notes OF NJ. L. Stewart Sc
cured and unsecured. aggregating s45,O9O.s9,
and of L. Irving Stewart aggregating
Si,67419. The securities held by the Bank
against G. ID. Stewart indebtedness consist OF
Owosso Carriage Company stock $4,000, Life
Insurance $4,000 and American Seeding
Machine Company and Owosso Sugar Company
stocks amounting to $4,000 The security
held against M. L. Stewards Indebtedness con-
slsts of $4,000 Owosso Carriage Company
stock.
The amount OF Owosso Carriage Company
stock owned by the Bank Is $4,000 and the
amount held as collateral is $4,000, The
amount owing to the bank from the Carriage
Company on notes and overdrafts is $50 9l325
The notes and overdrafts of Chas d. Stewart
include about $40, 900 made up of losses incurred
by the Bank and properly chargeable to profit
and loss account, and also include real estate
improvements and taxes on Bank properties
and losses on Ann Arbor right of wsy pur-
chases. A large part OF both the M. L. Stewart
and G. d. Stewart notes represents moneys
which went into the Owosso Carriage Company.
Thus they include $4,000 paid for stock when
the capitalization of the company was increas-
ed from $4,000 to Sc, oC0, and which was after
wards surrendered as worthless when the COM
pany was reorganized on 100000 basis. They
also include $4,000 of losses on Carriage Com
pany accounts, worthless notes and settle
.ments and $40 600, turned in to the company by
e. ID. Stewart in 1904 to tide over the financial
difficulties OF the Owosso Carriage Company.
The above in all makes total Of upwards of
$4,000.
The affairs OF the Owosso Carriage Company
are responsible for the condition OF the Banks
assets.
In 1901 1t developed that the Carriage
Company had sustained losses to the exten D.
OF $4,000, which more than wiped out its
capital and surplus, This included $4,000 of
stock, then held by the bank as collateral to
notes of M. l.. Stewart and o. ID. Stewart and
inflicted upon the bank other losses of up
wards OF $4,000. The Carriage Company's
capital stock was then increased to 100000,
and the company practically reorganized.
M. l.. Stewart and @. ID. Stewart took $4,000
of the stock, borrowing that amount from
the bank. $4,000 Of the stock was taken by
Mr.. Hopkins and Mr.. Whaley, the bank I'D
vancing to them that amount of money on
the stock, which was afterwards turned over
to the bank in cancellation of their notes.
This accounts for the $4,000 OF stock now
owned by the bank.
The bank also holds the notes of Sidney B.
Pratt for s59i0.65 and Frank l.. Whiting for
$i995.o7, each secured by Carriage Company
stock before It's reorganization on the $780,.
600 basis, which stock is worthless.
The Audit Com pany, OF New York, exam
ined the books OF the Carriage Company In
April, 1906, and from their report covering
the period from August, 1908, to December,
1904, the Carriage Company suffered losses
amounting to $50, 06o.53. While the company
was In financial need during that period
MIR. Stewart assisted the company to the ex.
tent OF $4,000.
IL was the report OF the Audit Company
made on April 18th that caused the bank to
at once suspend. UP to that time Mr.. stew.
art expected to be able to make good his
notes and overdratts and that the Carriage
Company would be able to make such n
sho wing as would make its stock, held by
the bank, q valuable asset. But this report
made 1t apparent that the bank could no
longer carry the load, and It suspended tho
next day.
with the exception OF the unsecured, M.
l., O. ID. and l.. 1. Stewart notes aggrcgating
about $4,000, the Pratt and Whiting notes
for s79oe.sa, and the Carriage Company stock