New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-02
STOCKS BRING SS65,OOO.
MERCHANTS TRUST SALE.
E. Clarence Jones Gets Half and
Control of Hudson Fallen.

The sale of the remaining securities OF the de-
funct Merchants Trust Company completed by
the receivers, Douglas Robinson and the New York
Trust Company yesterday Late in the afternoon
II was announced in the office of Edward Lauter-
bach. counsel for the receivers that the syndicate
composed of A B. Colvin and John w. Herbert had
bought the securities for sS65 900 This sum. coun-
sci said larger by s250000 than any amount the
securities would have brought under the offer OF
e. Clarence Jones, and justified the receivers in
holding out against the clanor of some Of the de-
pos1tors for a speedy acceptance of the offer. All
the deposftors and other creditors whose claims
found to be valid will receive payment in full and
there Will be something left for the stockholders.
Soon after the failure of the Merchants Trust
Company, when there appeared to be doubt as to
the ability of the receivers to Sell the company's
securities for an amount sufficient satisfy the
claims Of the depostors. E. Clarence Jones offered
TO take over the securities and pay the depositors
dis reason was desire to acquire the bonds and
stock Of the Hudson Valley Railway Company,
which were held by the Merchants Trust Company
as security for loans thus obtain control the
railway company. After the receivers had sold
some of the Rutland securities held by the Mer-
chants Trust Company, Mr. Jones offered 81 800 900
for the remaining securities Many OF the depos-
ltors urged the acceptance of the offer. believing
they could be paid Immediately, but the receivers
and their counsel insisted that the offer was too
low and said the sum realized in that manner
would not be sufficient 20 all creditors Counsel
also said that the depositors could be paid in
advance Of the general creditors. Mr.. Jones made
subsequent offers. the receivers continued to sell
some securities other than those of the Hudson
Valley road but the receivers did not accent his
offers
Last evening it said by one in a position to
know the facts that Mr.. Jones was the buyer OF
one-haf OF all the securities sold yesterday for
sS65,000 He and his friends, it is said. in that
way acquired controlling interest in the Hudson
Valley The securities of the Hudson Valley which
were held by the Merchants Trust Company. IL
was announced consisted OF 1851 900. face value. Of
first mortgage bonds, taken as security for q loan
OF T4oSSl 20, and $4,000 in bonds and 100000 In
stock, taken security for a subsequent loan OF
$4,000. All these securities passed to the syndi
cate yesterday for sSa00O. together with some
blocks OF Cotton Duck syndicate subscriptions.
Tefft-Weller shares and stocks of the Virginia
Passenger and Power and Richmond Passenger
and Power companies. Mr.. Jones receiving one-half
payment of Si32500
The previous sales of securities OF the Merchants
Trust Company. counsel for the receivers said.
netted about 1880 600. and the sale of yesterday
raised the cash assets OF company to s. 3Ss COO
The depositors Of the company have received 40
per cent Of their deposits. and they now re-
ceiving an additional Is per cent The sale OF the
remaining securities yesterday will enable the re-
ceivers to pay the depositors the final So cent
Some of the claims made by se gem on
the result of the suits will depend the sum to be
ment of the Merchants Trust Company affairs;
Justice Cochrane in the Supreme Court at HUG
son yesterday denied motion to compel the receiv-
ers of the Merchants Trust Company to sell the re-
naming securities at public auction heldns .nas
of the securities and the manner of their sale IL
this decision that enabled the 10 sell
The statement that e. Clarence Jones and MS as
socates had obtained control OF the HUDSON valley
nouncement that there would be change of man
az the syndicate that the road would be run by
the present managers for some time to come