Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-11-11
TRUST COMPANY
FOUND SOLVENT
Experts at Morgan Conference
Declare Assets Equal
Liabilities.
ASSOCIATION is WORKING.
Plans Of Clearing House Followed In
Ndiusunr Involved Conditions AMI
win Restore Confidence.

with reference to conditions pre-
vaiHnr ln Ncw York since the financial
trouble Of the last few weeks the New
York Herald has the following 20 say;
certain conditions have TO be met by
the Trust Company 81 America before
the unlimited assistance Of the Trust
company association is extended. The
organization ms well as MIR Morgan
and his associates are now fully con
WINGED OF the solVency Of the Trust
Company Of America. II has capital
stock OF g.. 00l. 900 and had surplus OF
$4,000. 100. AZ the Morgan conference
exportg made "a rigid investigation OK
lts assets at the going prices. II was
found that the assets at present were
sufficient TO pay on the depositors and
show a surplua Oi ft.0o0.000. THIS sur
plus indicated oi course. that the cap
ital stock OF 12.00O.000 was unimpalred,
aud that the great surplus of sl0,oOV,0uO
was reduced about 81 900 900 at the eX-
tremely low valuations at which Sc
curities are now selling A similar
investigation u the lincoln Trust COM
pany showed that the surplus of that
Institution had been wiped cut, but
that the capital was Intact
PAID OtT MILLIONS.
II was found also that the Trust
Company of America in its magnii-
cent fight TO crush the run Of deposit
tors and stem the tide OF adversely mad
paid out in the last two weeks slightly
more than $40 600 600. According 90 IT'S
last statement the total deposits Of the
company were s51Sf5.0Q0 80 that there
are now left about Sl1.00O.000 due ~
depositors. In order TO provide cash
for the future necessities of the COM
pany the Trust Company association
b. now making terms with the board Of
directors. Il was said last night that
the executive committee OF the Trust
Company OF America considered the
terms somewhat onorous but was will
Ing 60 do everything 70 save the fair
name Of the company.
CHANGE ~ DIRECTORATE
Il is understood In this connection
that the Bankers aud Trust Company
association believe 30 is necessary that
there shall be a radical change la the
boz rd OF directors, aud that eacr one
OF Them shall 30 his best to put the
company la cash, In other words the
association is following precisely the
same steps as the Clearing Hose as
sociation took ln the case or the MeF-
House association had advanced the
bank sufficient cash 10 meet It's bal
ances. the directors were told To pay
m their loans and place the bank In
cash. Al the same tine the directors
Of the Mercantile placed their resigna-
lions in the hands or the president OF
The clearing house 10 assist IN clearing
the atmosphere.
HOME DOCKS" FIGURE.
IN the paying on Of loans which some
directors and other large borrowers OF
the Trust Company OF America had
with the institution many interesting
matters came TO light. 1t was found
that IN the famous Tennessee Coal ana
Iron pool. which held the control Of
that property. there We're many lame
ducks" who were unable 10 take up
their loans. having become widely OK
tended IN the recent crash In prices.
Bankers said the Tennessee Coal 4 Iron
loans we're a distinct menace to the se-
curity market, and that the removal
20 strong quarters Is one Of the best
tests that j. = Morgan has accom-
plifhed since he assumed control Of the
financial situation.
HARRIMAN ENTERED
T.. a. Hartman ala something 10 re-
lieyc the situation iu the Trust Compa-
49, OF America which came 10 light yes
terday. and the incident al the same
time served 90 disclose whore lies the
control of the Central OF Georgia rail-
road. ON the day when troubles we're
piiing up thickN for the Trusl Conn
pany ~ America. 20 Wua suggested thai
Mr. Hartman might take up loan h.
had Bon mat Institution enc chief 0f the
collateral 90 which was 10000 shares
OF Central eff Georgia stock
The capital pf that company is only
$1,000 0oO consisting NJ Cd 600 shares sd
that % WIS Immediately seen that the
sale to Messrs. Thornc and Perry was iu
r0ali'. sale to Mr Hartman with
those men acting as agents
Mr. Hartman went t0 J. A. Morgan
a Co.. ana there placed as add tionll
collateral 90 the 2O 900 shares 1f Central
Of Georgia, 300 shares OF tho Della ware
a. Hudson. q 600 shares of the Union Pa
cinc preferred and 1.000 shares oi
Union Pacific common stock The COM
troll ~ tho Central cot Georgia D. now
held hy the loan in the Morgan Office.
hat BE- o. believed it Nil sooner or later
revert lo Mr.. Hartman and that this
Wil occur when the loan Is paid
Ar Hartman yesterday refused fo
comment on Coo central 90 tieurgiu
natter H. said he was going to leave