The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-05-27
Induced TO Take Over
Securities On MiSState-
ments. They Say.
ADVANCED MONEY
TO RESCUE COMPANY
Jerome Begins Investigation
Which Now Involves State
Superintendent Of Banks.
Statement Issued by At
,torneys for Fisher.
History Of Case.
Especial to The Times-Dispatch.)

Especial to The 1nes.Dlspatch.)
& NEW YORK, May 26.--Two new figures
in finance must be recognized hencsforth,
as both arc developed In connection w4.n
the collapse Of the Merchants Trust
Company. One Of themis Georg e. Fish
err with an office nt No. 81 Wall Street.
and the other Is Louis E. Spencer, who y
is closely associated with Mr.. Fisher In s8
various trolley line promotions. Both s
men are only now being introduced into 8@
the world Of finance and both seeming g.
}ly regret 1t. When District Attorney J e--lligs
rome completes his Investigation OF the an
peculiar financial methods TINT brought u
about the closing OF the Merchants rust
Company, there is probability that the s
public will know more about Messrs.
Fisher and Spencer than 1t hitherto has. h
E{ In the meanwhile the stigation will ,,t3
bring to light the peculiar connec neg ton n
Helen Miller Gould and her brother.s .s
Frank j. Gould had with the; CONF
and how they. by! advancing something 3Si
like ST. 100000. prev ented the collapse q
the company two years q 60 me rs sd@eeper5Ss @
the probo IS inserted into the % ffai RS or #
the trust Company, ,St the less enviable is VI.
the position occupied { by State su peri M as
3tendent5 OF Banks HI ilburn. kne Wo i
wears ago that the $Iof1Tail as IN any
thing hut ~ sound financial condt tio11$ L.
now appears that Tuttle Flint SSich-ts5B
OILS, representing George p. II isherS as t the
latter S counsel, organized those COM
pnnies that have brought about ne sdoWt'76
faIi ~ the Merchants Trust Company
Mr.. Tuttle to-day Issued o statement
giving 4 history Of Frank Gould s con- &i
nection withSthe Virginia COMPANY, etiu75
Ing thus: .,, ", u ~, V, ~
Indirectly that he ha q no connection With
tho Virginia Company or The 4 N s erchan CHI
Trust Company at the. time the loan 3
were held by the NJ 1erchant q si
pany, or most OF them were m ell 9 not p.
in accordance With the facts and records.E# G
II Vas learned ut the offices of George
Gordon Battle, Frank Gould's Ia wye
# TINT most or the allegations mac e s}8 py5
Mr.. Tuttle had ALREADY. been mag !, g Y Y:
suits brought against Frank Go'uid JOY, s,, N
Nv Nv the Goulds and Miss Helen Gould is:a
suing Fisher, alleging 3tha t she was q n r.
#duced 10 take over tho securities on ms
statements. One OF the ale gations y -,
the receipts of the company were re padfaed
by having men emplo oyed @ #l,de W On On
trolley cars tQ swell them =,
M ~ rs further alleged to-day that thlS t2sSE
same George Fisher was behind q ne sdeal Al
by which the trust company yHinade loans y.
on an Investment in the Hudson Vailss@ ~
g1lilrOaQ
amount OF 81, 200, 600. .G 5s58 i54
Statement BY Gould's Lawyers.
"A n behalf Of Frank Gould, his lawyers
Rattle and Marshall, made this state
.,Mr. Gould has never been directly
or Indirectly. interested in the HUDSON
Valley Railway, nor have any Hembe
OF his family ever had any dlrects o.,
Indirect interest In that company.
-. Aha lima Merchant IruSCsts
Company acquired the securities OF y ne
Virginia Passenger and Power Company 3s#
neither Mr.. Gould nor any niemp Der ol
his family had any interest in the VII.
ginia Passenger and Power IN company
nor was Mr. Gould at that time a.. d.
rector or the Trust Company. nor did 52
he have any connection, directly or IN
directly, with the purchase by the trust rust "a
Company of these securities. !.
"Mr. Gould became interested IN me
Virginia Passenger and Power CONF pahy
after the securities OF that company had
,heen purchased by the Merchants Trust
Company. He. together with Miss Helen
Gould purchased loans which the Trust
Company had made on these securities
at the par value and accrued interest," ol
such securities. 1t is obvious that thls
transaction, so far from being Injurious
to the Trust Company, was hlghty oen-a5f
eflcial to it's interests. X III i5S lf
-It Is clear from what we have stated S53
above that at the time OF TINS transac-3FT
ton neither Mr.. Gould nor any mem
ber of his family had any interest what
ever in the Virginia Passenger and Power
Company, nor was Mr. Gould a director
of the Merchants Trust Company, 50 8iif
that he was not in the slightest degree
responsible for the transaction.
Connection With the Trust Com
pany.
% n tila
Merchants Trust Company about Ju!y,5
1902. He 6ad not attend any of the
meetings of the board of directors. but
ascertained soon after he became q s3
member of the board information which
made him unwilling to continue a direc-
tor. He therefore sent In his resigna-t
ton as a member OF the board OF direo-
tors about six weeks after his election.
1t will be noted that his election as
director was long after the Merchants
Trust Company had acquired the seourl-
ties of tho Virginia PASSENGER and PoWss
Company; and 1t will be noted further
that during this period neither he nor
any member OF his family had any In
terest in tho Virginia Passenger ana
Power Company. 1t may also be SAID
that he did not Mt this time concur IN
or take any personal part In any actioh
of the board Of directors.
AFTER his resignation. and prior 20
January, 1909, Mr.. Gould, together WIKI n
Miss Helen Gould, decided to purchase
from the Trust Company at par and ac- n
crued interest certain loans which that
company had made on the SECURITIES %
the Virginia Passenger and Power Com
pany After this transaction had besa 4
Completed, Mr.. Gould again became u
director OF the Merchants Trust Cons
pany In January, 1903, and continued rs
such director until about January. 1914
Al no time while ne was drector,5
either In lpua or 1895. did the Trust Contv h