The news-democrat. (Providence, R.I.) 1906-1909, 1907-11-30
fcor,,nued from Page Eight }

Trust company was sl25Ooo. The receiv-
ers went TO New York. conferred with
the other parties chiefly Interested, ana
satisfied themselves as far as was pos
sible without actually seeing the proper
ties. OF the inherent value or the enter
prise OF the absolute necessity OF raisils
further money, and OF the imposslDllty
ar doing thus by the sale OF the notes In
the marhet under present conditions, anu
further that the notes TO be purchasea
nv the underwriters were well secureu'
IJpon their return they put the matter
before the court and obtained authorl'y
10 invest Sl25OO0 of the funds IN thelr pos,
session In the purchase OF such eoiia'el"'
trust notes at 81 per cent or lhelr iace
Value. upon receiving assurance that the
first million dollars TO be received from
tha sale OF such notes should be used TOR
the relief of the railroad company from
its messing necessities The purchase Oh
notes TO the amount of $l3s,SSS mas De"ll
made upon these terms and some SfO,WJ
has already been assured TO the company
with the promise of the full amount re-
oulred. The present danger OF me entire
loss or great depreciation or the TWO mn,
lion dollar investment has been aNeIteu
and the future of the enterprise VIII u9-
mend upon the efficiency OF the manage
ment and the general condltioh ol pns'
ness as affecting the money market. Inc
receivers while loath 10 take this money
from the depositors. believe that uhuer
the circumstances it was not only Just'
fable but absolutely necessary ana u,a. .
a would have been criminal 10 nave 'el
the property be sacrificed by seiusal 10
cooperate. A.. ,t.,
NJ Investments, comment with regard 10
which is necessary.
INDIVIDUAL DEPOSITS.
There is little 10 be said as to the ma
blities Of the trust company we hie
herewith schedule showing uae apploA
,mate amounts of individual deposits IN
moth the banking and the savings depart
,nenta These disclose the, to US, aston
,shing fact. that out OF the 30,96O deposits
90 ali kinds, ni1s. or nearly one-hali
ara az less than 500 each. and that these
141ls deposits aggregate but A4o'SS4oS,
There are certain matters TO which, IN
view of possible liquidation, IL seems oe-
sirable TO refer Fifteen hundred shares
of the stock OF the NauonaI bAShahse
hank and 80 shares OF United Traction ana
Ilectrtc company are pledged TO other
hanks for amounts which. being open TOT
adi,,st ment. cannot be absolutely stated
and the amount OF such Indebtedness Wii
have TO be paid in full TO redeem the
stock. AS already stated, moneys "hlch
the receivers hold I'm trust as the pro
ceeds of commercial paper collected after
the suspension must be accounted TOT 10
those 10 whom 1t belongs. Ihe corpora
sion IS empowered by It's char.er 70
ceiye from executors, adnlihls'"
sss.,oos trustees, guardians, receivers or
,ssto5ians money I'm their hands as Wen
- securities. and the charter proViues
80, ,he "a apital stock shall be pledSeu anu
s,,nh denositors shall first be indemnlneu
a. f,,u IN case of loss, from such stoen
s. - niodged In preference 10 All oeher
.l,.ors Persons OF this class nave
cash deposits aggregating A'oS-,4'e'"
thts proyision of the charter means
200 oCO the amount of the capa'ai s'oSn' a.
rasnonssble for these deposits tand ~ 10
s.p',,,,, ,,at To be decided what IL does
lean n anything). then these classes oi
dsnos,tors are preferred TO this extent.
rhe corporaton is also empowered %
,ts charter 10 execute trusts and 10 hoio
in trust, property of every oesoiip
and its capital stock Is said TO be TAKEN
ana considered as the sole secuii'y
oulred by law for the performance ol 10
S,,,,ea aa trustee Securities TO an hniouh'
..,,aI "a 40 per cent OF the entire capilaI
.,ocL are required 20 be depositeu, anu
a vo understand, are deposited with 'ho
GENERAL treasurer OF the state 10 secure
The faithful performance OF It's duties 90
trustee. and this also is said TO DO 90
curity for the repayment OF moneys ue
posited with Il by executors or other uu
tees. The corporation holds on ueposl.
its own credit as trustee unoer Na
trusts siss, s,o526s. and this, toge.her VIZ"
The amount OF the deposits by o.ner ~"
tees above referred TO, douotless mas
srs, claim upon this fund of 100000
RECEIvERS' CONCLUSIONS
To Concluding. the receivers hesitate 10
,,.La anv abatement of their own opinion
"a ~ tho condition OF the defendant cor
noration. They realize fully that propne-
c,cs es eto results In matters OF this char-
acter are seldom fulfilled, that they are
ant To discredit those who make them anu
siisapuolnt those to whom they are hi"ue'
and that reticence Is the safest couise'
They believe, nevertheless, that IL is 'he''
duty 10 give such assurance as 'nes i.o
sonably can TO the great NUMBER oi oe
-os,tors an this institution. They believe
that there Is good reason TO nope Una. u
the Union Trust company were perni''eo
"a resume business in the usual way an"
under conservative management IL oepos-
,tors would consent to leave their oeposns
until they had occasion to use theli' al"
70 make fresh deposits as heretoiore' GA
sending TO the bank the confidence whieh
A
,,,,,,iS he paId IA full. Assuming that TINS
course would be taken by depositors, .,
a assuming even that a sufficient aInouh. ol
cash could be raised TO meet the aehanos
~ depositors who will not take ,nls
course. we think further that the eap,'a.
rould be found TO be uniinpaired ana .is' wa
,here might be surplus. Tms "ouiu,
however. depend TO great eN'eh. upoa -
,ha result of the investment In NOTION Z"
sd,,thern Railway company.
II on the other hand, the coihpanf cIlparsp IN
90 he Inundated under ~ recei ,,,i se' s ~
sv. believe that the surplus ana 'ne ~,
,,ei viii be certainly wiped OUT, ,,.hSe % sIS
.,sara syti be nothing for the sto1khoieG- a.
ers and that it Will be inpossipie ~
nav the depositors in fuli; We nIe Ser III,
pstr thai the process OF liquldatlon vii VII,
10 long and tedious. Al our own Pc, pnrs y,
enA for the assurance OF deposi ",
srna nav be tempted to part with thsir
raims Tor small conslueratlon' We
express our belief that unless the the,S oSus ~,
trv In entering upon lohB pr iuJI ,,,,I
General financial depression, anu uni.ee .e
sna.tnvestment in the securlties OF lhe
sno no,,ir and Southern Railway COM
nsnv should prove TO be totai loss,
which we regard as Impossible, eO per
rent ehould be the smallest teSsohapIe
estimate of the ultimate distrlputlon,
e,l fhat n materially larger return