New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-07-14
DIVIDEND FOR MERCHANTS
Depositors IN Bankrupt Company
Nay Soon Get 80 Per Cent.

The depositors in the bankrupt Merchants Trust
Company. in the hands of receivers, will in all
probability within the next weeks receive
dividend amounting TO at least one-third of the
money due them
Otto T. Barnard. president OF the New-York Trust
Company, one of the receivers said yesterday that
If the receivers could not dispose of the assets of
the company, on proper terms, within reasonable
time they would apply to the court for direction 10
pay out TO the creditors dividend, probably about
IS per cent
From several sources it was learned that the re-
ceivers have refused to dispose OF the holdings Of
Hudson Valley and Rutland securities to the two
syndicates, composed in large part of former di-
rectors of the Merchants Trust Company, who
bidding for these securities at bargain figures. The
receivers have sgnifed intention TO hold the Sc
curites and take part in reorganization of the
boards of the concerns If necessary.
A few days ago at the annual meeting of the
Rutland concern. the receivers elected q board in
which they control a majority. The receivers have
likewise asked the voting trustees who control the
stock in the Herbert-CoIvin syndicate to allow
them to name six of the fifteen directors, to be
chosen at the annual meeting Of the Hudson Val
ley Railroad Company, July 10
The Herbert-Colvin syndicate which holds two
thirds of the stock of the Hudson Valley Railway
Company, has in it's membership a number OF the
directors of the Merchants Trust Company. When
the syndicate was formed a voting trust
ated, and five voting trustees were named in the
syndicate agreement, which does not expire for sew
eral months Three of the five trustees are men,
bers of the old board of directors Of the Merchants
Trust Company as representing the company own
ership OF stock.
The syndicate agreement provided for salaries to
these trustees. The insolvency of the Merchants
Trust Company does not affect the syndicate agree
ment in any way. The request of the receivers for
six Of the fifteen directors is based on the fact
that the trust company holdings of Hudson Valley
Railway stock tWO-ffths of the total amount
of that stock The receivers are not DESTROYS of
having majority in the board OF the Hudson Val
ley Railway Company. not caring TO take,
ceivers. the responsibilities of financing the in
creaSes of capital required.
Two other syndcates are now concerning them
selves in the affairs of the Merchants Trust Com
pany. one Of these is a group OF men who have
been in control of the Colvin syndicate but who
are now independently making bids for the Hud-
son Valley stock and bonds held by the Merchants
Trust Company 1t is reported that directors of
the Merchants Trust Company who promi-
nent in the management of the finances Of that
concern when 1t loaded up with the securities
of the traction company interested in this syn
dictate
The third syndicate is that headed by Samuel
Untermyer, counsel for Mr. Phillips, the last pres
ident of the bankrupt, trust company. Mr.. Inter
nyer recently made bid, which was not accented
by the receivers, for all the assets of the failed
company excepting the Hudson Valley securities.