The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-17

Mpposed, coupled with the admission by
Albert II. Davis, president OF the corpor-
btion. that he does not know whether the
proceeds of the sale OF these securities
we're turned into the treasury. The other
Eas an !ncipient run upon the Central
Trust company, OF which Col Con- was
pntil recently president, resulting in en-
Iorcement OF the rule which requires a
notice. of 90 days before withdrawal Of
On Monday more than 200 was drawn
put by depositors OF the Central Trust
company.
II also was discovered that in its last
statement the Central Trust company had
Included among It's assets 2575 shares OF
the capital stock or the Commercial Cor
poration, which Is scheduled at $25, ,750. the
main security OF which is said TO be
ts.o0o worth OF the bonds OF the Home
DEsvELoPMENTs SUMMARIZED.
Developments of the past few days may
be summa rized TO date as follows:
That the assertion made by counsel for
the corporation that no membranes had
been placed on any OF its properties since
the early spring Is incorrect. Two tracts
Of land have been mortgaged to pay debts
OF the company. nearly $4,000 having thus
been realized.
the hands OF Col. Isaac l.. Con- for In
vestment by Harriet p. Gladding, now
deceased, and which was originally placed
into shares OF the Home Realty company,
which are believed TO have no value
The 5000 OF insurance realized through
the death OF Arthur Marchant, when oc-
CURED on April 1. the policy having been
written in the office OF Isaac l.: CON q
Co, has been converted into bonds or the
Home Realty company through the & ei
forts of A. A. Normandin from the onice
OF Isaac L. Goff a. Co., and Everett a.
Dunham. who is said TO be the president
OF the Commercial Corporation, one or
the companies in which Col: Con Is inter-
ested. The bonds are not secured.
That Col Isaac l.. Com and Everett n.
Dunham Induced French Catholic priest
to purchase 5000 worth OF the same
tSst ponds the s'p properties % OF the Home Realty
company were free from membranes,
and that funds were needed Tor immeui-
ate building operations wnlcn nR 0reE W1Sld snd end
large profits TO the investor.
That a widow who deposited $500
with the Home Realty company, to be
applied to the payment of her con-
tract for a home. was induced 10 90
40 by Col Isaac l.. Gof and that the
same has not TO her knowledge, been
applied to the reduction OF the mort
gage upon her home. but is, she fears,
TO figure in the claim against the
Home Realty company.
THAT BOND ISSUE.
That instead of $4,000 worth OF the
bonds OF the Home Realty company
having been issued, there has been
another and a supplemental special
issue Of $4,000. and the president or
the Home Realty company does not
know that the money realized from the
sale OF these bonds went into the
treasury of the Home Realty COM
pany.
That nearly $4,000 worth OF these
bonds were or are in the possession or
the Commercial corporation, OF which
Everett A Dunham is said to be the
president
That Everett A. Dunham has So
licited purchasers of Home Realty
bonds to convert the same into shares
of stock I'm the Commercial corpora
ton, the value of said shares being
speculative.
That various members OF the Cath
Ollie clergy have been solicited TO pur-
chase Home Realty bonds. Col Isaac L.
Gofr personally interviewing the pros
pective clients.
That because of the unrest occa-
stoned among the depositors in the
Central Trust company, of which Col
Isaac L. Goff was until recently the
president, and because OF the business
relations that corporation had with
the Home Realty company. a run was
begun which caused the Central Trust
company to suspend payments yester-
day and TO require a 90-day notice
from those desiring to withdraw ac-
counts.
That among the assets OF the Central
Trust company is an item of loans
and discounts" s21,15s.16." which is
made UP In part so President Ward
says, "of the notes which priests have
given, and are therefore good.
That, while President Ward assert
ed that the depositors of the Central
Trust company should feel no uneasi-
ness about their money, as the only
obligation which the company has of
the balance OF a note, which Is amply
secured, by it's last statement to the
bank examiner OF this state Is held
2575 shares OF the stock OF the Com
mercial company, valued at $25,7bO,
the latter named company having at
least $4,000 worth of the unsecured
bonds of the Home Realty company,
according to the representation which
Everett A. Dunham made before the
creditors meeting last Thursday.
CENTRAL TRUST COMPANY.
Alfred p. Ward, president and treasurer
OF the Central Trust company, declared
that the suspension OF payment was sole
ly I'm the interest OF depositors. He was
emphatic in his declaration that the bank
was perfectly solvent and stated that the
assets were almost double the liabilities.
He said:
I've have required the 30 days notice
from our depositors because they were
Withdrawing their money too fast Ihete
IN no question as TO the solvency OF the
company, for all our assets are OF the
best character. But the fact that $1,000
was taken out yesterday indicated that
we would be compelled TO take advantage
of the reservation which we have made,
and today we have demanded notice be-
fore settling up accounts.
"By the fgures made out Monday after
the close OF business we hal In cash 5000.
our deposits in savings aggregate about
500 600 We have mortgages OF frst-class
variety TO the amount Of $4,000 and loans
and accounts OF $1,000 These loans are
all OF the best class. and the majority OF
them are for small amounts. The largest
one. for $1,000. Is a secured claim. We
hold collateral worth $4,000 and stock
worth s25,750
'our assets are. therefore. worth about
s215.ooo and our liabilities are not much
more than half that amount still we
could not. as no bank could. pay all our
depositors IL they all demanded payment
at the same time. and II we tried TO real
ize on our assets Immediately there would
naturally be some shrinkage. We. there
S.1 hat n hest thing N ~,