The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-23
USED TO SLUG STOCK MARKET
PROPOSED DOUBLING or MER-
CHANTS Trust 60. CAPITAL.
Concern Has . Million Surplus on Bank.
Ins Department Figures, Which Arc
Less Than It's Own-Has Not Made


Less Than lis Own-Has Not Made
MISREPRESENTATION Meeting Called
A special meeting Of tho stockholders
Of the Merchants Trust Company has been
called for June to vote upon proposed
increase Of capital stock from s5oo, 200 to
81 ,oOO,o 900. The knowledge that some
change in the oompany's financial condition
is proposed was used yesterday as the az
fairs Of the company have been used before,
to slug the stock market.
Brokers on the Stock Exchange were
passing around stories that trust company
had applied to several Of the large banks
for loans. 1t was said that the company
had encountered difficulty in getting out
of some slow loans with which it had been
burdened. President Phillips Of the Mer-
chants Trust Company was asked IL his
concern had applied for any help. He re-
piled that he had heard that some Of the d.
he had nothing to do with their action.
A meeting Of the directors Of the Mer.
chants Trust Company will be held this
The main office OF the company
is at SAC Broadway. with branch office at
800 West Goth street.
The result Of the examination of the
company. as Of date Of Dec. 20, 1904, ia
published in the last annual report Of the
State Banking Department. In the report
it appears that the surplus shown in the
own statement, 81, los, 1877, was
reduced by the examiners to S1,074 ,54s.
While increasing the estimate market value
Of some OF the securities held by the COM
pany, the department threw out some alto
gether as valueless and reduced the valua-
ton OF others. making the net reduction
$l24, 600.
Preferred and common shares OF the
American Tube and Stamping Company
carried At valuation Of ISL, 900 by the
company are put down as valueless by
the bank examiners. Edwin Langdon,
formerly president Of the trust company
and now one of its directors, is a director
of the American Tube and Stamping Com
pany.
On the company's books common stock
of the Tefft Weller Company was carried
at 5000. but the bank examiners assign
it no value. Mr.. Langdon is a director of
the Teft Weller Company, and Director
George G. Clarke of the trust company is
president OF the Tefft Weller Company.
The trust company carried United States
Cotton Duck stock at valuation Of $40 900.
The hank examiners say that the stock
has no value.
The value placed upon bonds OF the Vir-
ginia Passenger and Power Company held
$eO, $50 to $50, 500 by the examiners. Dr..
~ l.. 49,
paniss. Edwin Hawley was president Of
the trust company year go. He ia presi-
dent OF the Iowa Central Railroad, some OF
whose bonds the trust company holds.
Their value Is scaled down by 81 500 from
the trust oompany's estimate Of S2s.l25.
On the other hand. the securities the
trust company holds Of the Hudson Valley
Railway and the Chittenden Power Com
pany, in which concerns DR.. Mum. Mr., Lang
don and other directors are interested. are
valued by the examiners at the trust COM
pany's estimate. and the $500 900 in New
York city bonds at more than the COM
pany's estimate.
On Dec. %, 1904, the examiners statement
shows that the company had s6lio5 in
cash. $2.454, 800 in deposits. including
,[iU III rare dCtOullIS Nv lllc
and q, 04s 275 In loans. Two items, SIS, 1913
for miscellaneous claims and $1l ISL for re-
organization advances were not allowed.
The total assets allowed we're A,O34, 437 :.
and the liabilities we're put at 81, 958, 1888.
The Merchants Trust Company, which
was organized in 1899 by Edwin Iangdon. who
was then president Of the Central Nationa
Bank, now merged with the Citizens Bank.
has at the present time less than 81, OO0, 900
deposits. In May. 1908, the bid for its stock
was 800 while $40 was asked, At the present
time the stock is quoted at 100 bid,
Several years ago the prosperity OF tho
company was at low ebb. and Helen Gould
and other members OF the Gould family
went to its rescue. DR.. John p. Mum.
who was Jay Gould's physician, remains a
director.
The trust C ,mpany is trustee Of 81 900, 600
consolidated mortgage on the property Of
the Hudson Valley Railway Company
which is a consolidation of trolley lines
around Albany. Troy, Saratoga and Lake