The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-05-24
TRUST COMPANY
DRIVEN TO WALL
ness men. The Fifty-ninth Street branch
had on deposit about 500, co.,
mo other institution is inVolVed oy
Continued from First Pageo

ness men. The Fifty-ninth Street branch
had on deposit about 500, 600.
mo sother institution is involved oy
the closing. s.is 4,
at is certain the assets would cover az
$,,obll,tles to the extent OF paying the
5denositors and stockholders in full If
The assets can be marketed at par. sew
eral months will be required for the re-
caivers or receivers to get the affairs OF
the company In shape approaching u
more or less final state OF preparation lor
settlement. = ~
state Bank Superintendent F. p. III
burn gave out the following statement.
.'An examination of the Merchants Trust
COMPANY made something over two years
q ~ disr,osed the fact that it's manage
ment had loaned upon the purchased so =
ourities 10. the amount Of about S4OOo, ooo.
which had no ready market value, besides
guaranteeing loans vide In the interest,"
OF the Richmond (Vn.) company 70 the
extent Of s750.0oo. About s9,3Go,ooo OF
these loans and !investments were upon Sc
curities OF Richmond companies ABOUT
sS50.00O were invested In securities u
and loaned to the Hudson Valley halfway
Company and nearly 100000 to the Rus-
land (vt) Street Railway Company and
10 the Chittenden Development Company,
the latter being a holding company OF the
stock OF lighting, powlr and railway COM
panies located in Rutland.
~ was convinced that to put the trust
company in the hands OF receiver at
that time would necessarily result IN
throwing these securities on the market
and in an enormous loss to the trust coH-
pany and it was my Judgment, whlcn
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
and has thus far resulted In the payment
by the Richmond companies OF s2261,oVo
or the entire debt, less $4,000. Inc
trust company has also been relieved from
Its said guarantee of s750,ooo
''In the meantime, a syndicate had been
formed by those Interested in the Hudson
Valley Railway, .pf4opertW.by which 1t was
pose OF putting that property in better
shape This amount was paid In by this
syndicate OF which the trust company
maid Observation-Disclosures. Out OF this. how
ever, there was paid to the trust company
$1,000 upon its Indebtedness"
Stock and Investments.
The officers OF the trust company are
as follows: President, Jacob l.. Phillips;
Vice President. Cassius NJ. WICKER; Sec
rotary and Treasurer, Frederic p. Davis;
Assistant Secretary and Assistant Treas
urer Jacob G. Coyne.
One OF the directors was DR.. John p,
Mum. physician to the Gould family.
On January lst. the companys stock
and bond Investments amounted to ST.
l7l312 including the following: Hudson
Valley Railway syndicate participation
t533.5Oo; United States Cotton Duck
stock 100000; SOL 900 Virginia Pnssen-
ger and Power Company, first bonds
100000 of the Chittenden Development
Company. first bonds. and sbOO0OO OF the
bonds OF the city of New York,
State Bank Examiner Jndson said the
loans believed 10 be responsible for the
banks trouble were made under the ad'
minstration Of Edwin Langdon. who was
president Of the company until 1902. ant
that Edwin Hawley and Mr. Phillips were
not responsible for them.