The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-24
1t is the Merchants Trust
Company.
RECEIVERS IN CHARGE
One a Brother.in-Law Of President
Roosevelt. The Company Cannot
Realize On Loans, Pay Deposit
ors and Save the Capital
From impairment.
From impairment.
(By the Associated Press. }

New York, May 23.-The Mer-
chants Trust Company of this city
was closed today by order of the State
superintendent of Banks because it
had made loans amounting to about
$1,250.000 upon which it had not been
able to realize a sufficient sum to pay
depositors and save the capital of
the company from impairment. Upon
the application of the State attorney
general, Douglas Robinson. a brother
in-law of President Roosevelt, was APP
pointed one of the receivers of the
company. The other receiver is the
New York Trust Company. The COM
pany's loans which had no ready mar
ket value were about $S5O.000 on
securities of the Hudson Valley Rail-
way Company of Glens Falls, n. Y,
which is a consolidation of trolley
lines in the vicinity of Albany, Troy,
Saratoga and Lake George; and
nearly 100000 to the Rutland, Va,
Street Railway Company, and the
Chittenden Development Company of
Rutland
The trust company owes depositors
about $4,000, coo and according to the
State bank examiner has available
assets. other than in the Hudson Rail
way Company. and the Rutland COM
panies of nearly $l,300,000, so that
it will be necessary to realize $780,
600 to pay depositors.
The stockholders are liable to the
extent OF $500, 600. With that amount
the State Bank Examiners said to-
day that q sufficient sum should GER
tainly be realized to pay depositors
in full.
The announcement that the trust
company was closed followed q meet
ing of the board of directors There
was line of clerks of business firms
waiting to draw out deposits when the
State bank examiner notified them
that no further business would be
transacted. No excitement ensued
and those who sought admittance
later went quietly away when they
were informed that the banking office
was closed. Assistant State Bank
Examiner Judson said today:
I'm round figures there was on de-
post in the main bank of the COM
pany about S1.300,000, confined al
most entirely to business men. The
Fifty-Ninth Street branch had on de-
post about $700.000.
mo other institution is involved
by the closing.
1T is certain the assets would cover
all liabilities to the extent of paying
the depositors and stockholders in
1ull IL the assets Cdi De IldEheteu 1T
par Several months will be required
for the receiver or receivers TO get
the affairs of the company in shape
approaching a more or less final state
OF preparation for settlement"
Statement by KiIburn.
State Bank Superintendent F. D..
l<ilburn, gave out the following state
ment:
can examination of the Merchants
Trust Company made something over
two years ago disclosed the fact that
its management had loaned upon and
purchased securities to the amount of
about $4,000, 900 which had no ready
market value, besides guaranteeing
loans made in the interest of a Rich
mond, Va, company to the extent of
$3.50, 600. About $4,000, 600 of these
leans and investments were upon Sc
curities of Richmond companies.
About $S50,000 were invested in Sc
curities ow and loaned to the Hudson
Valley Railway Company and nearly
100000 to the Rutland, Vermont,
street Railway Company, and to the
Chittenden Development Company, the
latter being holding company of the
stock of lighting, power and railway
companies located in Rutland.
II was convinced that to put the
trust company in the hands of a re-
ceiVer at that time would necessarily
result in throwing these securities on
the market and in an erroneous loss to
the trust company and it was my Judg-
ment which subsequent events have
justified, that it would be better TO
try to relieve the trust company Of
these securities.
''This task was at once undertaken