The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-24
MERCHANTS TRUSTEE. CLOSED
MAY REQUIRE STOCK ASSESSMENT
TO PAY DEPOSTTORS.
Deposits Are Nearly - 400 900 -HudsoA
Valley and Rutland Men in tho Board
wanted to Keep Open-Dankins DO
partmeat Has Receivers Put In Charge.

The Merchants Trust Company Of 80
Broadway and 800 West Fifty ninth street
was ordered by tho State Banking Super
intendent, little after 10 o'clock yesterday
morning, to close its doors. Tho cause OF
It's suspension was tho tying up Of money In
securities Of companies In which some OF
tho directors are interested. Some Of these
securities the trust company bought, aud <
ON some 1t made large loans. The State
Bank Examiner would not say yestsrday >,
that the company could pay itA dspositors |;
in full without an assessment on tho
stock. Whether all Of tho stockholdsrs !
were good for such an assessment was :
doubted yesterday by lawyer represents
ing the interests that came last into tho 4
oompany's directorate. He said that . =
number Of the stockholders were dummies. y
On the application OF Attorney General s
Mayer, Justice Cochrane In Albany ysstsr-!l
day appointed as receivers Of the CONF
pany Douglas Robinson, President Rooss. n
vet's brother-in-law, and the Now York 4,
Trust Company, of which Otto 7. Barnard \
Is president The receivers took charge u
late yesterday afternoon, Mr.. Robinson 4
giving bond Of $500 900. Edward Lauter. A
bach was appointed counsel for the re--ds
ceivers.
The company has more than 5000 dspoei- Al
tors and deposits of some 32.l0O,0eO. Tho D
money Is likely to be tied up for several 4
months while the securities are disposed y
Of. Those that are n5t readily marketableH
are bonds of the Hudson Valley Railway /
Company, the Rutland Street RAiwAyS4
Company and the Chittenden Develop.
meut Company. The concern had In vested :?
and loaned on Hudson Valley Railway
securities nearly 81 800, 900 and about 500 900
In the others. None Of these securities u "
listed, and while they were put down by the 4
bank examiner In the last statemant Of ;;
the condition Of the company at what the !,
company valued them at. it is very doubt
full II they will realize as much, aocordh u
to the ban king officials. A few bonds II =
Hudson Valley sold at "a recently.
Al,7OO, 900 IN TROLLEY LINE LOANS.
The statement Of the co1npany's condi-
ton at the close Of business ON Monday
shows that it had deposits Of $2,ll7.O0O, tS57-
757 in cash, $5O7. 800 In New York city boads, i
and SsO9.sl2 in other stocks and bonds,
included among which are Hudson Valley
bonds. valued by the trust company at 1884, Z.
s25, Chittenden Power Company bonds, put 4,
down for 500. 900, Rutland Street Railway ]
bonds, estimated at $4O, 900, Virginia PassanssN
ger and Power Company, $50, 500. and lowe
Central, estimated It 4ai,63S. Dsusnd 4
loans at the home offloe and the branch 4
foot UP to S130. 100; time loans. eS,eeo. bilie I!
purchased, 81. 4ss, and Syndicate loans.
demand Sl,7le,iss. i
The latter represent tho loans made to 4
tho Hudson Valley and Rutland companies |
on their own securities. Mercantile loans 4
arc down as $l49.37s. Two iteuas. namely. !
REORGANIZATION advances, amounting to
31l eS1, and claims against the Virginia !
Passenger and Power Company, amounting 4
to Sl5, 1888. which are listed among the as
sets, are said to DO practically worthless. 81
The capital stock was 500, 900 and tho sur-N
plus is put down as 81 100000.
OLDER DIRECTORS WANTED TO KEEP OPEN. u.
The order OF the State Banking Superin- !
tendent followed meeting OF the directors :;
at which were present all but one Of the
present board. These are the present
directors: George c. Batoheller, Ronald
X. Brown. John Carledge, George g.
Clarke, Frederick p, Davis Thomas l.. u
Feitner, Charles j. Follmer. Edwin Lang
don. Dr. John P. Mum, Jacob l.. Phillips,
James E. Reynolds Henry Sampson, David
$. Walton. Cassius NJ. Wicker,
There was considerable opposition to
a suspension on the part Of some Of tina
directors, principally those who had been
with the company when it went into Hud-
son Valley and Rutland They insisted
that the securities would turn out all right
in time President Jacob l.. Phillips. who
came in on Jan. /. last was present with his
LAWYER Samuel Untermyer. Mr..
Untermyer advised Mr.. Phillips that BUSH
ness ought to stop. 1t was then that A. Z.
Jucison, the State Bank Examiner, put the
A. 4 i thar me ttuN
at the branch in Fifty-n street There
we're no signs of a run at either Of the Offices.
COMPANY IN TROUBLE PROM THE START.
The company has been in trouble ever
since it started. It's money was almost
put into securities which tao
Banking Department viewed with sus-
picion at the time the company made its
first statement Investments and loans
we're in the hands Of the executive COM
nittee. The members OF this committee
hat bought and made loans on Hudson
Valley Railway, Virginia Passenger and
Power and Rutland bonds was made
N Of DR.. John P. Mum. Edwin Hawley,
Edwin Langdon, who was then PRESIDENT
George C. Clarke and Frank c. Travers,
he latter now dead. Frank Gould, then
director Of the trust company, was presi-
Company. DR.. Mum was director OF
he Hudson Valley company and the Rut-
and Street Railway Company. Mr.. Lang
lon was also director of the Hudson Valley
company and Of the American Tube and
Stamping Company and the Tefft Weller
Company. In all of these concerns the
company invested and to the trolley COM
panies it made large loans. Mr.. Clarke
3 president Of the Tefft Weller Company.
Edwin Hawley was director Of the Hudson
Valley company and is said to control
t largely.
Frank Gould was not on the executive
BOARD. George H. Wise, president Of the
Rutland Street Railway Company, was
iirector OF the trust company. Mr.. Could.
Mr. Wise and Mr.. Hawley are all out OF the
company now and are said to have disposed
II whatever they held of its stock Mr..
iawley had succeeded Mr.. Langdon as
PRESIDENT in january. 1907 In July Of last
rear he handed in his resignation, which,
however. was not accepted until january Of