Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-11
WALL STREET is SURPRISED
Capital of 100000, With Surplus
of $1O,00O,0O
DEPOSITS REACH $4,000, 900
Outline of Plan of Consolidation Sets
Forth the Advantages to Be Gain
ed by the Stockholders.

NEW YORK. January l1.-De;ails OF ar
important merger of trust companies were
announced yesterday in the practical alb
sorption by the Trust Company of Amer
lea of the Colonial Trust Company.
The Trust Company OF America, of which
Oakleigh Thorne is president. thus
sumes imposing dimensions as a financial
institution, in taking over the assets
of the sister concern 1t will have a capital
OF 100000 and surplus of 100000
While the aggregate deposits will amount
ia about s70.ooo.o0o.
Wall street which has been expecting
a change of some nature in the manage
ment OF the Colonial Trust was taken by
surprise nevertheless, at the news, as the
Colonial has fiourished under the National
Park Bank at No. pa Broadway. The
transaction is attributed to the activities
of Mr.. Thorne, Marsden j. Perry and their
associates in acquiring heavy stock hold
ings in the Colonial and reaching an agree
ment with Richard Delafeld, Cord Meyer
and their associates for the transfer OF
the Colonial from its Park Bank affilia-
lions to those of the Trust Company OF
America.
New Members on Board
At the stockholders meeting of the
Trust Company of America to be held GA
January l6 several trustees of the Colonial
Will enter the board OF the larger com
pany and John f. Borne. the Colonial
president will become chairman OF that
company's eXectve committee. The Trust
Company of America about May l Will
move into Its new building at Nos 30
and Al Wall street and will operate the
present offices of the Colonial at No s.,2
Broadway, as a branch institution.
Having acquired large stock holdings IN
the Colonial, the ThornePerry group OF
financiers offers to take over the other
shares at the rate of 500 a share. or by an
exchange OF such securities In ~ per cent
OF the Trust Company of Americas stock.
fendlng the acquisition or exchange OF this
stock. a reciprocal agreement has been en-
tered into by the two trust companies.
Outlines Proposed Plan.
Mr.. Borne, in statement issued to the
Colonial shareholders yesterday, outlined
the proposed plan as follows:
Mr.. Thorne and his associates have ac-
CURED, with my consent and the approval
of your executive committee, a large in
terest in the stock of this company and
they have made this proposition with the
idea of ultimately uniting this company
with the Trust Company of America
AT the next stockholders meeting of
the trust Company of America number
OF gentlemen representing the interests of
your company will be elected directors of
the Trust Company of America and l
have agreed to accept the position of
chairman of the executive committee of
that company and to devote my entire
time and attention to the interests of the
two institutions.
The Trust Company of America after
1t has acquired the assets of the Colonial
Trust Company-which it is to do without
increasing its capital stock-will have "A
capital of s2,0000U0. a surplus of AT least
sl0,Cc0,C00 and, based on the present de
posits of the two companies, approximately
$l0,CC0,o00 in deposits. 1t will OCCUPY it's
own building at Nos. 70 and Al Wall street
and will continue to operate the present
offices of the Colonial Trust Company as
branch, thereby continuing all the facil-
tiles to the present customers of the Co
lonial Trust Company they have and.
in addition, those enjoyed through dealing
with larger institution.
Advantage to Stockholders.
Another advantage to our stockholders
lies in the fact that the Trust Company of
America is paying dividends of 40 per cent
means that our stockholders would be en-
titled to receive on the basis of exchange
offered the equivalent of 20 per cent income
on their present stock.
Il therefore recommend to you the ac-
ceptance. of either one of the two PROPOSE
lions made by Mr.. Thorne and his associ-
ateS, leaving the selection to yourselves
committee concurs. If you will send your
certificates to the Colonial Trust Com
pany addressed to me. with instructions [
will personally attend to the exchange or
sale, as you may direct
Shareholders also received a copy OF a
letter of Mr.. Thorne to Mr.. Borne, in
which the former formally confirmed the
understanding which was reached by the
two groups of fipanciers after a series of
conferences.