The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-05-23
OWES $4,000, 600
Merchants Trust Company of
New York Closes Its Doors.
The Concern Had a Capital Stock
of $5OO,OOO.
ORGANIZED IN 1899.
Stock Was Worth 290 Two
Years Ago.
Held $4,OOO,OOO in Hudson
Valley Ry. Bonds.

New York, May 23.-The door of the
Merchants Trust company of this city
was closed today
The Merchants Trust company has a
capital stock of s50O,OOO and owed de-
positors about $1,000, 900. An examina-
tion of the company's affairs was made I
by the state banking department on /
December %, last. The report of the I
state banking department showed that |
the company's book surplus of 81. 1873, ,737 /
mad been reduced by the examiners to |
S1,074, 548. While the examiners had in
| creased the value of some of the Sc
eurities held by the company they threw
out some others as valueless and re-
duced the valuation of others.
The company is trustee of a $4,000, 600
consolidated mortgage bonds on the
property of the Hudson Valley Railway
company which is consolidation of
trolley lines around Albany, Troy, Sara
toga and Lake George. The bank ex-
aminers accepted the company's valua-
ton of the securities of the Hudson Val
ley Railway company held by it. The
company was organized in 1899. In May
1903 the stock reached a high point, 29o
pelng bid for it. Edwin Hawley was
president of the company at one time
Collections Were Bad.
The company was closed by order
OF r d Kilburn, state superintendent
OF banks, notice to that effect being
posted on the doors.
1t was said today that the closing
OF the institution was due to inability
to secure payment of certain large
loans on which the collateral consisted
of securities of the Hudson Valley
Railway company. The company was
a participator in the Hudson Valley
Railway company syndicate to the ex-
tent of S533.5OO.
Reports that the company woald be
obliged to discontinue business were
current in Wall street yesterday and
affected the stock market in the late
dealings yesterday afternoon. Samuel
Untermeyer, counsel for Jacob L.
T Phillips, president of the Merchants
Trust company, gave out the follow
ing formal statement:
In view of the publicity that has
been given to the efforts of the COM
pany to increase its cash resources and
to the unmarketabIe character of GER
tain of the securities which it holds as
collateral, for large loans, I have ad-.
vised the president to recommend the
suspension of business, so as to pre-
vent a run on the institution.
Mr.. Phillips has been president for
only a few months The loans that
have crippled the cash resources were
not made under his administration and
he has responsibility for them
Ever since Mr.. Phillips assumed office
his efforts have been directed toward
inducing those under whose admins
tration the loans were made to take
them out of the institution. This has
not yet been done.
1.-THE president will probably make
} a statement later.
The officers of the company are as
/ follows: President, Jacob l. Phillips;
vice president, Cassius W. Wi0kers;
secretary and treasurer, Frederic 2.
Davis; assistant secretary and assistant
treasurer, Jacob G. Coyne-
One of the directors was Dr. John
P Mum, physician to the Gould
family.
Prices of stocks advanced on the re-
port that the Merchants Trust com
pany was in the hands of the state
banking examiner. Advance knoWl-
edge of this trouble was supposed to
account for yesterdays selling OF stock
l and it was thought that 1t mad been
overdone. Fhe buying of stocks died
out before the end of the hrst hour
on the stock exchange and gains were
pretty generally lost again.
on January / the company's stock
and bond investments amounted TO
S1.471, ,312, including the following
Hudson Valley Railway syndicate par
ticinatine. S533500; United States cot
TON duck stock, 100000; $lO1, 600
r virginia Passenger & Power company
frsf bonds; 5000. 600 of the Chitten-
. den Power company nrse poliuS' az nf
7 s5OO.OO0 of the bonds of the city OF
+ There was no excitement about the
e bank today. A group of twenty per
sons sought admission to the oInces.
E but when they found the doors closed
and the notice posted they went away.
! young Makes Statement.
s san Francisco, May 23-J; B;
: Young. president of the Goldield
. Bank and Trust company, declares he
had nothing to do with DrlnSlhS
about the crisis in the banks altalrs-
He declares that he was opposed 20
+be manner in which the bank was
conducted by its cashier and directors
According to Young, he sold MS STOCK
Il in the bank and denies that he fed
from GoldfeId. On the contrary he
eax-S he came to Sna Francisco for a
brief trim and that he intends to re-
: turn as soon as possible he does nor
Y believe that the liabilities OF the pahtA
d will exceed $1,000 600 and says thal II
(. should have assets enough to meet tnls
S amount
Receiver Is Named.
= Albany. n. Y. MAY 23.-Upon the ap-
: plication of Attorney General Mayer,
y Justice Cockrane Of the supreme court
: here today appointed Douglas Roblnson
and the New York Trust company 3 q
receivers of the Merchants Trust COM
many The bonds of Mr.. Robinson were
axed at $500, ,00o. Under the law the
fII1st eompany's receiver is not required
to give q bond -
s Merchants Trust company is enhanced
nv the important effect which the fall-
11re entails on the affairs Of the bud'
son Valley Railway company NO one
r in Albany is in position 70 say nov
! it will affect the Hudson valley ran
(, yvav whose offices are at Glens Fails
Z Addison B. CoIvin Of that place being
= its president --.,,..-