The daily morning journal and courier., 1905-05-24
MERCHANTS TRUST co.
 OF NEW YORK CLOSED
BY STATE ESUPERINTEND-
 ENT oFBANKS.
Charge That It Has Made Loans of s1s25o,0OO Upon Which It Has Been
 Unable to Realize Sufficient sum to Pay Depositors - President Roose- yeIfs Brother-in-Law Appointed Re-
eeiver.

New York, May 2s.-The Merchants Trust company of this city was closed to-day by order of the state superinten- dent of banks because 1t had made loans amounting to about s1,250, GOO up- on which 1t 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, brother-in-law of President Roosevelt, was appointed one of the re- ceivers of the company.
 The conlpany's loans which had no ready market value were about $S51000 on securities of the Hudson Valley Railway company of Glens Falls, N. r., which is a consolidation of trolley lines in the vicinity of Albany, Troy, Sarato- ga and Lake George; and nearly s400.00O to the Rutland, Vt, Steret Railway company and the Chittendent Develop ment company of Rutland.
 The trust company owes depositors about S2,2OOOO0 and according to the state bank examiner has available as- sets, other than In the Hudson Rail way company and the Rutland com panies of nearly $1 300 GOO so that 1t will
 be necessary to realize s950,000 to pay depositors.
 The stockholders are liable to the
 extent of S5o000o With that amount the state bank examiner said to-day
 that sufficient sum should certainly
 be realized to pay depositors in full.
 The announcement that the trust company was close followed a meeting of the board of directors and had been rumored for some time. There was a 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 1 the banking office was closed.
 There was no excitement at the
 branch office of the trust company up ! town. Assistant State Bank Examiner Jud- son said to-day:
 Tn round figures there was on de- 4 pUSlC4 III lile IIldIl bdiih VI tlie4 Colii- pany about $1,SOo,O00, confined almost entirely to business men. The 59th street branch had on deposit about
 $7OO,000 among about 100 depositors, l the majority of whom had only savings accounts.
 1 "No other institution is involved by the closing, not even to the extent of one penny. The company has in cash about $300,0oo on hand. | Tt is certain the assets would cover | all liabilities to the extent of paying l the depositors and stockholders in full If the assets can be marketed at par. Several months will be required for
 the receiver or receivers to get the af- fairs of the company in shape ap- 1 preaching more or less final state of preparation for settlement"
 1 The state bank examiner said to-day
 that the banking department discover
 ed two years ago that the trust com
 pany held s4,0Oo,0O0 worth of securities
 which had no ready market value be- sides guaranteeing loans of a Rich- Emond, Va, company to the extent of j$750,000. Since that time the depart
 ment has watched the conduct of the company. The Richmond, Va., com lpanies paid off their loans amounting f to S2,267 1000 and the trust company has been relieved of it's guarantee of $780, 1000.