New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-06-16
TOREVOKE IT'S CHARTER
Proceedings against Bankers and
Merchants Securities Com pany.

trenton. June 10 (SpeciaD.--Attorney General
wcCarter at the instance of the Department Of
ranking and Insurance. began quo warranto
,,rcceedings in the Supreme Court to-day TO re-
like the charter of the Bankers and Merchants
securities Company, which has Offices at Nos.
"A and 46 Broadway. New York, and in the Cen
.,,-v Building Newark. The technical grounds
,,non which the application Is based is that the
company has been exercising banking and trust
,owers not conferred by its charter It having
hsen formed under the General Corporation act
NJ 1896 and not under the special acts govern
,nr banks and trust companies.
The company Incorporated in New Jer-
sev last January. the corporators being J. ".
Brunton. of Jersey City; F. W. Mackey, of
Newark and F. r. Dunn. of Rutherford, N J.,
and Denver The attention of the Banking De-
,arruent was called to the concern through the
receipt of some circular pamphlets in which it
Was stated that il was Incorporated in New
Jersey with authority to carry on certain lines
If business not included in the powers conferred
by the General Corporation act. L. r. Vreden-
blrgh an examiner, was sent out by the de-
rartment 10 investigate. When he called at the
Newark office he informed by Mr.. Brun-
ton one Of the corporators that he had severed
his connection with the company. and that most
mr. all OF its business was transacted at the new
office. Inc examiner lDeI went TO new 1Ork
and met a. P. Grother the supervising exam
iner" Of the company, and Mr.. Mackey. its presi-
dent.
Following some conversation relative to the
affairs Of the company. both Mr.. Mackey and
M Grother expressed a willingness to submit
10 an examination Of its affairs, provided it
was shown 10 be properly under the supervision
Of the department, but asked time TO consult
counsel upon this point The examiner called
again the following day and renewed his demand.
which was met by a further request for delay
and evasve answers to his questions. Presi-
dent Mackey suggested that the company might
be voluntarily dissolved and reincorporated in
another state. adding that it had done no bust
ness as transfer agent trustee in loaning or
dscounting and had issued no certificates and
guaranteed stocks or bonds. The offer TO
voluntarily dissolve the charter was never made
good although, under pressure from the Bank
ing Department, the secretary did write to the
Secretary of State. saying that the company
hereby SurrenderS its charter" The officers.
however. refused or failed to comply with the
form required by law for valid dissolution. A.
B. Thompson, treasurer of the Provident Saw
ings Life, Of No 346 Broadway, who had tenn
porarily acted secretary and treasurer of the
company, said that George II. Bruce, lawyer,
OF No 800 Broadway, who his personal
friend. informed him that finance corporation
Just organizing wanted a competent accountant
perhaps to keep them. Mr.. Thompson was adj
Tised that the work could be done evenings.
Later through him. Mr.. Rodgers was induced
TO accept a position as vice-president of the
company.
Mr.. Bruce gave the examiner a list of the deeds
and stocks which We're understood to be the
assets of the company purchased from Grother.
The deeds We're not accompanied by any evidence
OF title and there nothing to show their
value. Neither were they recorded at that time.
The principal piece of real estate appeared TO be
a tract of land in West Virginia said TO contain
$4,000 acres. but its description was unsatisfac-
tory TO the examiner
The Bankers and Merchants Securities Company
has occupied the second floor Of No. a
Broadway for a few months, but has had no bust
ness. far other occupants Of the building
know. a representative of the concern told a
Tribune reporter yesterday afternoon that the con-
Arm was organized by Arthur p. Grother who was
= cf the city. He said the charter of the COM
any was surrendered fully three weeks ago. and
e Secretary Of State OF New Jersey Informed OF
h fact
Having obtained charter to do a banking busi;
ness but having business. he added, we dld
10 submit TO examination by the BANK
ing Department Of New Jersey We therefore sur
rendered the charter when we got notice that the
Banking Superintendent wanted 10 examine our
books That's all there is to say"