The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-24

pany got from the GouLds was about 81 100.
0OO, the trust cofnk any losing about 500 .C'
on the whole d. al. frank Gould and htler
Could are dited With putting up mos
of the money TO relieve the con pany OF int *
set uritias.
Strikes on the Virginia trolley lines hac
CAUSED deficit In 1913, ana strikes a.st
Afflicted the hudson valley tro.ley lines
u was said yesterday by representative
bf the Banking Department that ha'd
day had passed since then That the d. Part
n1ent had not asked the company ii II had
disposed Of the Hudson ana l.utand Sc
curl, les. When Mr.. Phi Ups assumed Once
he tried to find market for hem HeNe,a.
offers we're made. one Of them h ms Tor
the Hudson Valley bonds at bout ~, OF
ii 900, 900 for 81 200 900, but the dlrectors
refused the offer.
r. NIB. PHILLIPS ADVISED SUSPENSION.
Certain of the directors and members
Of the executive committee. SAID Mr.
Phi. ips Yesterday, repeatedly assure me
that these securii les were all right hese
gentlemen had been for ma ny years identl-
Acd with the company and were supposed
TO b most familiar win the zoe Ms, @hich
were negotiated under their administration
and not under mine, They encouraged me
% believe that they cou d be di' posed OF
40 ss to almost If not entirely liz ulCate the
debt. Among these gentlemen were MT
Hawey, DR.. Mum and Mr. Langdon.
z President Phi Ups said that in view 81
the un1narketa he character OF he securi-
t. and the large prop rtion they bore to
the assets he had not felt justit'd In con
tnuine the businees, and for that reason
bad recomme nded a suspensisn. ,,
II the Hudson Va LEY loan can be worked
out said he, -the depostors may he PAID
in full and a surplus left for the STOCK, even
Il the rest prove worthless
It was said yesterday that while most
Of the loans which have caused all the
trouble were direct loan, TO the companies
whose securities are held as cola teral. d
few OF them were loans to indivldual''
These loans, according to one of the ex-
srniners, were on the Rutland securities.
Il did not come out yesterday who these
individuals we're. 1t was limited yeiter.
day that several su.;s might grow out OF
the present trouble.
Il was estimated Yesterday by one on
Mr.. Phjllips's size that $4,000 mi-ht be
realized on the Hudson Valley securities
and about 100000 on the Rutland proper
ties.
HAwLFY HANDS 1T TO LANGpoN
sThe trout le was net used by the
Gould leans" said Edwin Fl. vley ye-fer-
day. Il settled ell tn sc when l va = resi-
dent. It was 8, me l. ans mac e Lie lArgII
don was president that l had t. c. r1y.
don't want to discuss them. I WAS not re-
spc nsible IL them in any wsy. lam not Il
dfreottr and not even u st, ckh der
COUNSEL DEFENDS HUDSON VALLEY oANs.
william B. Ellis If II Broaowty, who
b q unset for the c. nrtrv, gave y;
vas virtually Mr. Langde us Size CT TIE
a6sir yesterday.
ssnd the eli sing tf The institute, n by the
State Bank Exi mirer was VI .ust: lie
Huds Valley Rs Lwly rrcTerty is tre
which needs { My a little tire to feNel r.
and It will be gced in es'rent. f'r ne
IL J.
900 GO q bonds as G Itter' l. /, is lie
nme O. Sc with the hutli I'd RI Ter'!es,;
The Superint endert o b nis knew III
about this and has been in t UGH with us
Il several ears. He ma6et n exi mint,i'
himself three weeks E, and At That tine
which we PR ~ sed 10 make. There was
net a word Of W. rning # m him of what
he has de- ne t. day There are sever
Do pie connected with the mTany who
ire trying t. run TO cover and make l. I
Il noise at the same time for purpc Sc.
which they d. Mt make ear, That is ell
I can say now.
] Il was state vest erday by friends OF
MI. Langdo that the Delaware and Hud-
son Railrc ad WIS after the Hudson Valley.
TWO TEARS TRYING TO GAVE THE COMPANY.
Ed. Kilburn, Superinten lent Of the State
Baplilo Department, mace this statement
yesterday:
An examination of the Merchants Trust
Company, made something over two years
ago, disclosed the fact that it, nanagement
hsd Tpo OF aa wSch hnd
no ready market value. besides guaranteeing
loans made in the interest Of Eichmond,
About 81. 3oO. 900 OF these loans and invest
ments were upon securities of Richmond
About $50 was invested in
Valley Railway Company. and nearly 100000
10 the Rutland vt Street Railway Company
md to the ehendsn b RSGgfopmsn5
located in Rutland.
T.; con has to pvt the t1Rst
would necessarily result in throwing these
.ecurities on the market and In an enormous
jud ement, which sub.eaiient events have
JUSTIFIED, that it would be better to try to
relieve the trust company Of these securities
thus far resulted in the payment by ~"
Rk hmond companies Of ss.?s7 600. or the
sotye h a.'t o bs ssved h from nt sd
guarantee Of s75o0JO
In the meantime syndicate. has been
VALLEY Rail way prosertv by which it was
agreed to advance $40. 900 for the purpose Of
putting that property IN better share. THIS
tieths. OF this however. there was raid to
the trust company 100000 upon its indebted
The deposits of the trust company to-day
are about 81 2n0.ooo. It's available as.et@.
aside from the amount invested in the Hud son
Valley and Rutland properties. amount to
about 81 300 900, so that out of Hudson Val
iev and Rutland properties ard ont Of the
liability Of etockhc ldcrS it will he necessary
~ realize about 90 900 IN order to pay de-
posttors. The trust COnnanv holds Huds"n
Valley bonds to IT," amount of nearly 800 ,oD0,
and 1t substantially owns the Rutland proper
ties In which hanc been invested nearly Il
million dollars. These securities in conncc-
ton with the liability Of stockholders to the
amount OF $500. 900 should certainly be SUM-
ciert 70 pay dnnostors in full
While the Hudson Valley and the Rutland
companies are probably in better shan" ard
worth more TODAY than ever before, the trust
hns not been able No to the nressnt
70 realize upon. these securities (Which are
not quick assets, sufficient sum to pay de-
positors and save the capital of the trust
troin iinrairnent
For this reason ! ha"" come tn the Concln-
no, that it is neXpedicnt for the trust connany
VI longer continue in business. and have
reported the matter 10 the Aucr-
for his action. | think in tho
G rCum stances q receiver can handle the mat
ter better than the trust company.
TO REDUCE SUEZ RATES