New-York tribune., 1905-06-29

NEW
portion of the the business Ssan s Of the eAbs MeT
business but in the year ls after fuil discussion
mined to give np the safe deposit business and to
sell out the safe deposit lease and its interest in
the safe deposit business to another company This
was done partly for the purpose of reorganizing
the business Of the Mercantile e Trust M company my
but mainly because. as result of the panic OF 1913
it necessary for the Mercantile Trust Com
pany to procure c3ns1deeno,e amount oil casn IN
In order to make this purchase the Mercantile
iiai ie eROoi' ssSS The Lease now criticised
then in sxstenee asd vas assned to and f
The subscription books TO the Mercantile Safe De-
posit Company stock were opened for subscriptions
after due published notice. and director and
wen as every director and stockholder in the
itself invited subscribe TO the stock of the
Mercantile Safe Deposit Company. Owing TO the
panys business; an9 TN fee PeI4aFy i9 ber sqP tL
scrbed for and personally took and paid for nearly
all of the stock of the Mercantile Safe Deposit
As the result OF this s2oOoeo in cash was paid to
safe deposit vaults and for the goodwill Of its safe
deposit business and the remaining $1,000 @ was was
posit Company He subsequently offered this stock
him This offer was declined after the directors of
the society and its legal advisors had looked
the best interests Of the society instead of purchas
criticised.
In October. 1877. two years and four months be
fore the date fixed by Superintendent Hendricks.
the second lease now complained of was made TO
the Equitable Safe Deposit Company. of Boston
was $4,000, all subscribed for and taken by my
the Equita ble Life Assurance Society, the society
having option of taking this whole stock at
reoaes Of the soce Mis- stock was transred
by my father to the Mercantile Trust Company AT
par.
SALE OF SAFE DEPOSIT STOCK.
reported that the capital stock of the Equitable
be estimated as at or near its cost value but that
the committee thought . it had @ pTospeetve value
be converted into a large and valuable cash asset.
Equitable Life Assurance Society in whatever
benefits the Mercantile Trust Company will explain
able help in proftabiy developing ihe assets of
The COMMITTEES recommended that the Equitable
Safe Deposit Company should be reorganized on
make the safe deposit vaults more attractive the
society should rent the building adjoining its
the rented building to rooms for the accommo-
daton Of renters in the safe deposit company.
The Mercantile Trust Company still being in need
of cash, for the reasons above STATED. my father
Boston, and paid the Mercantile Trust Company
for the stock of the Equitable Safe Deposit Com
all of which paid by himself and associates,
anu % the ,1 greatfr RaT s by hnSe n 1884 owned the
building in St Louis known as the Equitaole
surance Society on June 1854 preserving the right
to lease safe deposit vaults sn such building shou
leased to the trust company In 1885 the Missouri
capital sfoek of $1,000 All the directors and
stockholders Of the EQUITABLE Life Assurance SO.
the two safe deposit companies already. organized
we're invited to subscribe to this capital stock; stock
Of the missouri safe Deposit Company met with
General z fitzgerald aid wy We're % obliged to G su6scr6e for
and did subscribe for and take practically Lne
$4,000 was paid to the Mercantile Trust Company
r5s m IGT p is fb ana g goo e w ss ana e9os
pany, as required by the laws of Missouri. The
the funds Ct the Mercantile Trust Company my
father stepping into the GAP, and furnishing the
higher prices than the stock was then considered
1t VIII then be seen from the foregoing that the
three leases criticised by Supern tenaent Hendricks
under the circumstances related above, subscribed
for and took the stock of the three safe deposit
companies.
SAVED CREDIT OF TRUST COMPANY.
It will also be seen that for the purpose of saw
ing the credit of the Mercantile Trust Company
into The TeaauTy Of IS the Meroante TTsf COM
panya for these three sale deposit companies the
his pocket. This transaction represented
profit of s55oO00 in cash to the Mercantile Trust
As result of these transactions the Equitable
Mercantile Trust Company valued in the market at
ab0gt SlGQ6 instead OF having lost The the sum SUI i0 OF
vestment in this stock in 1875. that the Equitable
eens dreey from n3@ ths orgaaton @ and
chase OF these three safe deposit companies by my
father and from the persona! pecunlary Tlsk Whlch
he took in order to save the Mercantile Trust COM
Whatever the pecunary results to the society
may have been from the leases. considered oy
TINS @ PGln1 af Il does T net follow that because
Sc
they were unfair wnen made, The fairness OF
ese Ffna6 f6 bv ths deetor Of the autabi Life
Assurance Society at the time they were MADE am
l. is obvious that no safe deposit company Wouo M
enter into lease OF premises OF the nature re-
quired by them unless for long time: so G [aT aS
the premises leased to it were formerly used as
coal bunkers and for the storage Of old lumber
and rubbish and it is doubtful whether they could
have been made TO pay any income except III 'iie
Again It must not be forgotten that the expend-
lures of the society, charged by oupepalrre
improvements in property owned by the society az
for bV the safe deposit company and are now up
to date and complete. that corresponding eN5
the net rent viii be correspondingly increased ~
must also be borne in mind that ren fH9 in the
dividends paid upon their several eapltal stochS rs
father in organizing what was then a new and con
sidered to be a hazardous business and in building
1hem Thar vaue 9 20 is manly in the GOODWIN Of the bust
ness thus established and maintained by him.
FATHERS PERSONAL RISK.
In short great pecupiary personal risk to
pany businesses. then asset considered OF httIe
or value and in which neither the society nor n9F
the Mercantile Trust Company nor any OF theli
directors or stockholders, were willing to invest
fberf5y the Syu3abe LITE oeiey and
dentally. erecting the safe depoSlI business lIoiii
In view of these facts, maintain and thlnk II
cannot be gansaid that no Just criticism can Pe
entered into not for the purpose OF persona gar