New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-27
BLAMES G0ULDS.
DENIES RESPONSIBILITY.
Says Frank j. Squeezed Merchants
IruSt-Hint of Rescue Fund.

George Z. Fisher of No 81 wall-st.. on whom
the blame is laid by certain interests for the
collapse of the Merchants Trust Company,
through his attorney yesterday made long
statement. in which he replied 20 various allega-
lions and attacked the actions of Frank Jay
Gould and Miss Helen 81 Gould in the case Oh
the Virginia Passenger and Power Company anu
the Merchants Trust Company. 1t was learIeu
that the formal motion to make the receivership
of the trust company permanent "ouiu oe
argued al Hudson on June 3. Efforts are being
made however. TO extricate the company before
that date. and It was said yesterday that Dr.
John P Mum had hopes Of being able to induce
a capitalist 10 put S5.OO0O00 into the property
a report on which DR.. Mum last night refused
10 comment.
Otto T. Barnard. president Of the New-fork
Trust Company. one Of the two receivers OF the
Merchants Trust Company. started last night
for Rutland Vt. TO look over the Rutland street
railway properties. upon which the failed instl-
tuition has made large loans. Mr.. Barnard VIII
return 10 the city on Monday. and later in the
week will make similar examination Of the
Hudson Valley Railway Company
Mr. Fisher against whom four indictments
for larceny are pending In relation to the South
ern Textile Company's failure yesterday morn
ing denied having any connection with the Hud-
son Valley Railway Company or with any OF us
securities or with the Rutland Street Railway
Company and the other properties and securl-
ties classed as Rutland properties, except inso-
far as he was an underwater for the bonds Of
the Rutland company. He also denied that he
had anything to co with the promotion of the
Southern Textile Company. but added that after
the company had been organized he was in
duced by false representations to put $4,000 or
$4,000 in the company. which is still there.
He also stated that the charges against him
self were the result of the fling of indictments
which he knew to be absolutely groundiess, and
TO have been inspired by the enmity of persons
responsible for the failure of the Southern Tex
tile Company.
EZRA A. TURTLES STATEMENT.
Ezra A. futile, of TuttIe, Flint & Nichols,
No. 100 Broadway. counsel for Mr.. Fisher gave
out statement at his clients Office yesterday
morning saying in part:
Since 1889 Mr. Fisher has devoted himself en-
tirely to the development of the Richmond
Street Railway and power system. He took
hold Of the properties at the instance of the
widow Of Maurice Flynn MI Fisher develope9
the property. organized other companies and
prepared, extended and transformed the entire
system, both Of lighting and Of power, Of Rich
mond and the neighborhood. He spent millions.
in 1899 and 1900 of the franchises were
terminating, and he organized a company,
known as The Richmond Passenger and Power
smaller companies near Richmond. under
franchise granted by the city. DR.. J. P. Mum
equally interested IN the enterprise with
Fisher. The bonded Indebtedness on the whole
property 100000 first mortgage and
S1U0000 on second mortgage The capital
stock authorized was 100000, Of which ST.
100000 issued-S1 100000 as common and
S2eo0O0 as preferred. The Merchants Trust
Company trustee under the first mortgage
for 100000; the Atlantic Trust Company was
the trustee under the second, debenture,
mortgage OF S1.0O0000. In April 1900 a sub
scribing syndicate was organized for 81, 000.00
Of which Charles a. Gardiner chairman and
TO which Frank J. Gould subscribed 500 600
II is worthy OF note when Gould denies con-
nection with the enterprise, that as early as
April, 1900 he was interested in 1t to the
amount of 100000, for which he got bonds
and stock which he afterward sold in whole or
az any rate in large part. at a profit through
Mr.. Fisher.
Who approached Mr. Gould?" Mr. Tutt1a
was asked.
MI. Fisher answered this question saving.
Either the Merchants Trust COMPANY or nr