The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-05-26
ONCE DIRECT0RI|N
TRUST COMPANY.

Frank Jay Gould was O. director OF
the collapsed Merchants Trust Com.
pany in March, 1903, when the directors
decided to Invest sso4,65 OF the deposit-
tors money in the bonds OF tho Hudson i
Valley Railway, At that time the dircc-%
tors had already loaned $s4s,s6l. upon tho
company's bonds,
N Gould was then heavily interested In y
the Hudson Valley Railway. He was !
ambitious to. DO trolley road mag
nate. He had Just taken hold OF con-
solidation OF trolley and electric light
and mower companies In and about Itlch- 4
mond, Va, known as the Virginia Pas-
sengcr and Power Company. The Mer.8
chants. Trust Company had boon loaded
up With $500, 900 OF the bonds OF that cor
poration, which developed into q. colossal Z
failure. 81 rs.
81 When tho State Banking Department
learned how the depositors' money had
been squandered upon tho securities Of A
young Mr.. Goud's Virginia Passenger
ana Power Company. vigorous protest
was made. Tho result was that mems \
bers Of the Gould family paid 81 10000 \
In cash into the treasury OF the Trust
Company and took back the 81, ocOoO,e
OF questionable bonds.
Tho loss OF 100000 which the little 4
trust company sustained through trans-
actions with tho Virginia Passenger and
Power Company crippled It badly. Tho
loss It sustained In Its deals with tho
Hudson Valley Company wrecked It.
Stockholders Make Threats.
There arc ITO stockholders " the her-S
chants Trust Company. They will prob
ably lose every dollar they paid Tor the 4
H00,0oo OF capital stock, and are in inml-
Gnent danger Of being assessed for! ar ans
49, Low
Is required to pay the depositors In fun. a,
4 The great body OF stockholders who
bought their shares as an investment and
knew nothing about the high finance
tricks are indignant. Some 3of them say
that the Goulds and the directors re-
sponsible for the extraordinary tranhac-!
tons should be held responsible FOR tho
losses. It is not improbable that. suits
to compel restitution OF the wasted MILL
lions will be instituted. Some OF tho;
stockholders favored the more radical
course OF taking the matter into the
criminal courts 5,t .S 3 sls
During all tho time that the funds OF
the Trust Company were being squan-s
dered upon tho Gould securities the.
counsel for the Merchants, Trust B Con.
pany& was Charles A. Gardiner, personal
counsel OF George j. Gould and other
lmembers OF the Gould family. He re-
tired from the company about the tlmo
crank 81. Gould left the directorate.
Though Gould left the directorate, the
interests OF tho Goulds in the Merchants
Trust and tho Hudson Valley Railway
did not cease. Edwin Langdon, who 1s
regarded as Gould man." continued
TO be the dominating force in the COM
pany, even after5he gave up tho presl-
dency. Another Gould man left In the
Trust Company was DR., John P. Num-
the Gould's family physician. a third
Gould man put into the company was
Cassius NJ. Wicker, one OF its vice.
presidents All three OF these men are.
directors OF the Hudson Valley Railway
Though the bonds Of this company are
now unmarketable. and the last sale was
INit3is a fact that the directors OF the Mer-%
| chants Trust Company have only
s1,13o,0oO OF the bonds to represent cash
payments and loans OF $1.251. 4Ss.--New
York World. M