New-York tribune., 1908-03-28
BANKS GET PROVIDENT.
C4PITULATES
Directors Order Majority Stock
Transferred ON Books.

Following the action of the banking interests
holding majority of the stock of the Providens
Savings Life Assurance Society of New York IN
obtaining order from Justice O'Cforman yeste1
day morning. directed to the officers Of the com
pany show why they should not be on
Joined from refusing to open the books for the
transfer of stock owned by these interests. the
management OF the institution capituiated yester-
day and ordered the transfer of the stock in ques
ton This that the banking interests VIII
wrest control of the Provident Savings Life from
the syndicate headed by John J. Coyle, at the an
uual meeting April 2.
This syndicate it Will be remembered. bought
lose out of the total 1o outstanding shares of the
con1panys stock from o. f. and E R Thomas.
giving in payment 100000 in cash and NOo1"9 in
One million paI vaIue) OF Western Ice bonds
at $50 bond was included In the purchase. All
of the stock remained in the possession of the
Thomases as collateral for the notes
The Thomases hypothecated a majority Of this
stock with the Mercantile National Bank. the
Mechanics and Traders Bank. the Consolidated
National Bank and tn. Hudson Trust Company as
collateral for loans The total amount OF the stock
held by these banking institutions was 6e2 shares
being a majority of the capital stock When the
Thomas loans fell and not paid the banks
decided to stand together and protect the value OF
their collateral
To obtain title to the stock held by them.
which stood IL the OF the ThOmases, the
banks put II up at auction and bought II in but
when they went to the company TO have II trans
ferred in their own name they learned that at
special meeting Of the directors, held on March .
the eight Coy1e directors had voted TO close the
books and have them remain closed until April ?,
the day after the annual meeting This motion
opposed by Timothy l. Woodruff and five
other members of the board out was passed
nevertheless. According Sullivan & CrOm-
we'll attorneys for the Mercantile National Bank,
the books OF the company had never been closed
before and the closing not authorized by the
bylaws. The lawyers said also that the books
closed without notice being sent TO the
stockholders. required by Law
result of this action the banks, through
their attorneys. Sullivan Cromwell and o Brien,
Boardnan & Platt. obtained the order already
referred 10. directing the officers of the company
TO show cause why the books should not be
they holding meeting yesterday after
noon, and they thereupon decided to permit the
transfer of the stock owned by the banks.
Three new directors 10 be elected 70 the
board the annual meeting succeed three
Coyle directors, and the banks Will nov be able
to elect their representatives Mr. Woodruff,
who formerly president of the company, and
his associates. controlling among them over two
hundred shares Of the stock have promised 10
In conjunction with the bank. and 1t is
planned TO elect an entire OF officers
and John J. Coyle vice-president. They and the
other five Coyle directors own only thirty-nine
shares of the stock The ThOnases, is well
known. have been unable 10 deliver the control
of the company 10 the syndicate