New-York tribune., 1905-06-01
TO CARE FOR SECURITIES.
MERCHANTS TRUST PLAN.
.Special Meeting To-morro7c-Post
and Present Directors In1ated.

! .necial meeting to include both past anu
nresent directors of the Merchants Trust COM
pany it was learned by The Tribune 9es'eiuaS
has been called for tomorrow to consIuel 'H'
question OF underwriting the HUDSON Naie'
and Rutland securities, which the coinpah'
lent upward of s., 100000. At the meeting II 10
said the directors will be told that these se
curities cannot at present be disposed Oh a'
least for anything above a fraction or ti.9
amount of the loans
Should they agree to take care or these Sc
curties the directors it is said will be told that
an assessment of the stock will be entirely uh-
necessary The proposed taking care OF the Sc
curities will be part of a plan to be forn'uiateo
at the meeting for the rehabilitation ana the re-
organization of the company. Every living di-
rector who at any time has served Oh the board
has been invited to attend and livery session
Is looked for. The call was sent out yesterday.
w B. Ellison the counsel of the company
when seen at his home by Tribune reporter
last night said he would not admit that any call
had been sent out and declined to discuss the
matter fr anv shape or form. Should the plan
to be formulated meet with success an appIca-
ton may be made to prevent the appointment
Of a permanent receiver. 1t had been expected
that this appointment would be made on Sat
urday.
Louis f. Spencer secretary of George E.
Fisher promoter of No. 81 Wall-st.. expressed
Indignation yesterday at the introduction of his
name into the failure of the company by coun-
sci for Frank J. and Helen NJ. Gould. Mr-
Spencer said:
I deny that I have made any statement tnat !
have had any dealings with the Merchants Trust
Company. never borrowed dollar from that
company, do I the company a doilaf'
wish be left of this controversy entirely
Said Mr. Fisher:
7 wish IN state that nearly every statement made
by the Gould lawyers is a nisstatement MI: Bat.
tie states that 81 10000 lost in the Merchants
$4,000 by the sale of 500 shares of stock and his
net loss as 1 understand 1t. only $4,000.
! never mentioned Miss Helen Gouds name In
this case. 1 bought bonds from frank J.
is one-half OF the money invested;
Mr.. Gardeners statement OF a loss or *iSoO1V IS
incorrect because he fails to subtract thererom the
coo profit made by Mr.. Gould.
In the syndicate formed in April, 1900 there were
200 shares of stock subscribed, 10000 of the Rich
mond Passenger Power Company. of which Charles
A. Gardiner was the chairman. He received for
that $4,000 in consolidated bonds ana ScoVo IN pre-
ferred stocks, and bonus of Sl6o,0W in common
stock l may say here that my personal attorney
was Charles A. Gardiner.
Suits have been brought in Virginia against MI
Could and judgments have been secured there
against him He has never been able to win case
in Virginia
George Gordon Battle told the reporter that
he never remembered having said that $1.o0o'o0O
WAS lost in the stock. "As to the suits IN VII
ginie Mr. Battle added, Il am not personally
familiar with them, but 1t ID my belef that the
judgments went just the other way
The report that a banking house seeks to ouy
the Hudson Valley securities, TO obtain controi
of the railway company, could not De cohiIrIheu
from any authoritative source