Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-05-23
AFFECTED THE STOCK MARKET.
psuslas Robinson asd N. Y. Trust Co
Appointed Receivers Statement
ny Prssldests Counsel
STATE BANK supr's STATEMENT.
Delayed Taking Aetloa, lie Did so as
Not TO Throw Securities on Market
At Enormous Loss,

Albany N, ", May 2S,-upon the APP
pllcatlon Of Atty, Con, Mayer Justice
CocNanc, Of the supreme court here
today appointed Douglas Robinson ana
the New York Trust company nv re-.
colves OF the Merchants Trust COM
pony. The bonds of Mr. Robinson were
fixed at 100000 Under the law the
trust company as receiver Is not ~.
quIred TO give a bond,
Local interest IN the failure Of tho
Merchants Trust company Nv enhanced
by thu important effect which the fall
ure entails on the AFFAIRS Of the Hudson
Valley Railway company, No one In
Albany is In % position 10 cay how II
win affect the Hudson Valley Railroad,
whose Offices are at Glcns Falls, Addl'
son b. Colyin OF that place beng us
DOORS ARE CLOSED,
New York, May 2S,.-Thc doors Of tho
Merchants Trust company Of this city
were closed today,
Tho Merchants Trust company had u
capital of 100000 and owed dopositorS
about s200O000, An examination OF tho
companys affairs WaB made by the
state banking department ON Dec, "
last, The report of the state banking
department showed that the compnnyB
book surplus OF sl,lDS,i37 had been re-
duced by the examiners 10 Sl0N,bW,
while the examiners had Increased the
value of some Of the securities held BY
tho company, they throw out some oth-
prs as y0luclese and reduced the Nqlun-
ton " others, The company IN truoteh
Of Si,000,000 consolidated mortgage ON
the property OF the Hudson Valley
Railway company, which ", consolI-
dalton OF trolley lines around Albany
Troy Saratoga and Lake George, Tha
bank examiners accepted the compnnyB
valuation OF the securities of the llud-
eon Valley Railway company held by H..
The company was orga nizcd IN 1893
I'm May, 1908 the stock reached u hgh
point 200 being bid for H. Edwin liaw.
ley was president OF the company ut
one time,
The company was closed by order OF
j. u, kllburn, state superintendent OF
banks, notice 10 that effect being
posted on the doors,
1t was said today that tho closing
Of the institution was due TO inability
60 secure payment Of certain large
loans on which the collateral consisted
Of securities OF the Hudson Valley Rail-
way company. The company was q
participation In the Hudson Valley Rail-
way company syndicate TO tho cxtcn,
OF iJ33,b06,
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 untcrmeyor, counsel for
Jacob !" Phillips, president Of the Mer'
ChlhlS Trust company, gave out the
following formal statement,
IN view Of the publicity that has
been given 10 tho efforts Of tho com.
puny TO Increase its cash resources and
70 tho unmnrketablo character OF Ger.
IAN OF the securities which II holds M
collateral for large loans, I have ad.
Nlsod the president 20 recommend tho
suspension OF business 80 M 20 pre-
vent run on the institution.
Mr. Phillips has been president for
only a few months. the loans M
nave crippled the cash resources wero
not made under HIS administration and
ne mas 10 responsibility for them Ever
luce MI Phillips assumed Office his
,HoTls nave been directed toward IN
uuolng those under whose ldmnIstra.
non we loans were mado TO take them
Guy OF me institution, This has not yet
been done,
Tho proeIdont VIII probably make a
h'nMlement later"
lne officers OF tho trust company arc
ns follows President, Jacob l., PM.
llps' wee president, Cassius W. Wick-
ecetotaty ana treasurer Frederick
Davis assistant secretary and as
tlstant treasurer, Jacob &, Coync,
Vno OF the directors was DR. John
a. Muhn, physician TO the Gould family
w January ! the company'a stock
wa pond Investments amounted 10 ST..
h"S including the followingI Hud-
ron valley Railway syndicate partcI-
phllng sb3a,bOo, United states Cotton
,Hek stock, tlo0,0ooi 100000 Virginia
nstenger and Power company frat
bonds PO0,0 Of The Chittcndon Power
nlst bonds 100000 OF the bonds OF Inc
Guy OF Now York;
ihcfe was no excitement about the
pNnk today A group Of 90 persons
Fought admission TO the Offices, but
,mnon lhoy found the doors closed and
INV NOTICE posted they went away,
BANK suPT's, STATEMENT,
Albany N r., May 2s,.-sto,e Bank
io,nn hlVWrn touNy gave out the fol.
lowing Gtat0n,ontl WV '''
m examination Of the Merchants
dIueI company made two years ogo
disclosed the fact that its management
,"a loaned on ana purchased securities
,hc amount OF about n, OOO, 900 which
"a no ready market. value besides
s.ulonleeng loans made In tho interest
W Nlchmond, Va, company TO Inc
Nent OF 100000 About $4,000, 900 OF
,neso oans and investments was on
WVuti''es OF Richmond companies,
noVu, NboOO0 were invested I'm tho
Wcutl'lee of Richmond companies,
about Nbo'o0O were Invested IN Inc 20.
Wutl,'es or any loaned 10 the Hudson
nn1'cg Hallway company ana nearly
Wyuooo 70 the Rutland, Vermont
rroe, railway company and TO Tho
,on,,,endcn Development company, tho
Wi ps'ng q holding company of the
eovos o. lighting, power and railway
'Vnn1,pnnlos located In Rutland.
con wnu convinced that 10 put trust
,,ppn,nany IN tho hands " n receiver at
NV, ,lhe would necessarily result I'm
to,ow,ns these securities on the mar
a.. hnu nv mn enormous loss 10 the