Waterbury evening Democrat., 1905-05-23
CLOSED THE BANK.
Ixaniner Orders Dif New York Insti-
 tution Shut.

New York, May 23.-The doors of the Merchants' Trust Company of this city were closed to-day
 The Merchants Trust Company had capital stock of $5OO,OOO and owed depositors about S2,0OU,UOO. An ex- animation of the company's affairs was made by the state banking depart ment on Dec. 2rd Iasr. The report of the state banking department show ed that the company's book surplus of S1,198,737 had been reduced by the examiners to $1.O74,54S. While the examiners had increased the value of some Of the securities held by the company, they threw out some others as yalueless and reduced the yaIua- ton of others. The company is trus- tee of 4,OOO. .OOO consolidated mort gage on the property of the Hudson Valley Railway Company, which is a consolidation of trolley lines around Albany, Troy. Saratoga and Lake George. The bank examiners accepted the company's valuation of the securi- ties of the Hudson Valley Railway Company held by it. The company was organized in 1899. In May, 1903, the stock reached a high point, 291 being bid for it. Edwin Hawley was president of the company at one time
 The company was closed by the state banking department The fol. lowing notive was posted:
 Merchants Trust Company ii closed by order of F. D. Kilburn, Su- perintendent of Banks. A. c. Jud- son. Assistant Bank Examiner
 It was said today that the closing of the institution was due to inability to secure payment of certain large loans on which the collateral consisted Of securities of the Hudson Valley Rail way company. The company was a particiWtor in the Hudson Valley Rail- way company syndicate to the extent of 35S3,5OO.
 Reports that the company would be obliged to discontinue business were circulated in Wall street yesterday and affected the stock market in the late dealings yesterday afternoon.
 Samuel Untermeyer. counsel for Jacob l.. Phillips. president of the Mer- chants Trust company. gave out the following formal statement:
 ..In view of the publicity that has been given to the efforts of the con- pany to increase it's cash resources and to the unmarketabIe character of cer- tain securities which it holds as col lateral for large loans. I have advised the president to recommend the sus- pension of business so as to prevent a run on the institution
 MT Phillips has been president for Cnly a few months. The loans that have crippled the cash resources were not made under his administration and he has no responsibility for them. Ever since NIT Phillips assumed ofiice his ef- forts have been directed toward induc- ing those under whose administration the loans were made to take them out of the institution. This has not yex been done.
 "The president will probably make a statement later"
 The officers of the trust company are as follows:
 President. Jacob L. Phillips; vice- president. Cassius M. Wicker; secrc- tary and treasurer, Frederic P. Davis: assistant secretary and assistant treas urer. Jacob c. Coyne.
 One of the directors was Dr John F. Mum. physician to the Gould family.
 On Jan 1. the company's stock and bond investments amounted to &1.411.- 312, including the following: Hudson Valley Railway syndicate participation sJ33. goo; T.. S. Cotton Duck stock s1O.- co; s10l.0O Virginia Passenger and Power company first bonds; s2o0O of the Chittenden Power company first bonds: and 100000 of the bonds of the City of New York
 State Bank Examiner Judson sald that a receiver would be appointed tr- day on the application of the attorney general. There was 10 excitement about the bank to-day. A group of twenty persons sought admission to the offices early. but when they found the doors closed and notice posted they went away.