New-York tribune., 1908-05-17
BROOKLYN BANK PLAN
TO OPEN ABOUT JUNE Is.
Scheme for Union zcith international
Trust Com pnnu Com nLete.


Bank and the International Trust Company, news
Of which exclusively told in The Tribune has
been completed and copies of the plan mailed
yesterday TO all Of the stockholders of the two
| institutions with the request that they vote for
its adoption
The plan. which was evolved by s Stanwood
Menken. of the law firm of Philbin. Beekman &
Menken provides for the reopening of the Brook
lyn Bank about June 10 It provides for
a complete reorganization of the board of di
rectors such basis that the directors
will, by their names and connections, he guar
antee Of the safety of the reorganized bank Will
lam Cow, now under many indictments because Of
his backing transactions. and the so-called Cow
interests will he entirely eliminated.
There will be a president for the bank
who is we'll known in banking circles, and. ia
fact, thorough housecleaning is planned. The
name Of the new president will be kept secret
until the plan is actually carried into effect.
Accompanying the letter sent TO the stock
holders are statements of the financial condition
Of the International Trust Company and the
Brooklyn Bank, Of April IS, 1908 The state
ment the Brooklyn Bank shows among its
resources, which total s2153,37o 81, the following
items:
TsT6nors Tens Ioo 80
Real banking lot.........- 1900 90
Due from the Inernatona1 Trust company s2i 7ss 50
The liabilities of the bank other than to its
stockholders. aggregate sl,ss65os A. It's chief la
b;ties follow:
Individual depostors s15a1s
Due various banks. 5742a 81
Cash account e'.. 1Sas 10
The International Trust Company has assets Of
s1.o12e16 "a. according to statement prepared on
April p, 1908 The following are its chief assets:
Borough Bank deposit ...:......-...... 45s 800 90
Oriental deposit available. 2sS37 2s
cash on hand to rec.ivers' account .:: 1880 90
Its liabilities are estimated at s45s, ,s99z5. which
include its debt the Brooklyn Bank and sa7-
SIS IS to depositors. The statement of the Inter
national Trust Company does not include in its
assets the $3.50 shares of Brooklyn Bank stock, OF
a par value OF s16S 600.
A consolidated statement OF the condition OF both
institutions present shows total assets of s2.776
SO IS and total liabilities other than receivers
fees and expenses of s20g3 65S 81, thus seemingly
showing surplus of S742,0 81. In addition to this
the statement SAYS 1T is estimated that the
equities in property and items not included in or
charged off will bring the total surplus up TO sp-
pro1imately 100000 which, Of course, is subject
to receivers fees and expenses"
If cash is obtained suggested in Mr.. Menken's
nlar, of reorganization, the following amounts will
be Immediately available for payment of depostors
and the transaction of new business:
Cash in hank. S55 SOS Sc
rom sale Of bonds 10000 90
realization on loans secured by Stock Fix ,sz mn m
Loan from company .............-' 10000 90
-.., ....................s 81, ,436. sos So
The liability of s2oS3e SIS 81 is subject to deduc-
tion of about s1ne9 for setoffs owing 10 the fact
that the deposors are still indebted to the bank in
+ba+ sum 70 that the net liabilities may be reck-
oned at valuation OF about 81, ,s35e 600. The letter
TO the stockholders states:
Owing to the of organ cation OF the Inter
e0ted 70 take over the assets of the Brooklyn
Bank and the financial situation of the interna-
iarge portion Of its capital is tied UP in the Bor-
psT4iaI payments as provided for in the Boropgh
bank plan of RESUMPTION i has been decdeo , ina tnSt
me tns orr 81 both institutions would provide for
the opening Of h 5he bst ba by OF the ranser to
the Brooklyn Bank Of all of the assets or me IN
70 nTocre funds for the payment of ali the cred
ifors Of the International Trust Company ana OF
T # 9be i. adopted it is s3gparemot NJ
The Rrnoklyn Bank the bank would. under such
conditions have capita. ano Of ,5e PecsiTerSRips
IT, ,s,,n,,,,ste the plan the assents of all the
r,tnorf,v stockholders Of the bank to the sale OF
their stock TO the international Trust company
and the assent all the stockholders Of the Inter
national Trust Company to the transfer OF the
compsny's assets are necessary.
The International Trust Company pledges Itself
under the proposed plan 10 purchase all OF the re-
rnaiuinR stock of the Brooklyn Bank AT par ana
nay for this stock within two years after June ID
neyt and to distribute this stock among its stock
holders immediately upon receiving IT Such pay
nent is 10 be secured by deposit of the stock
bought with a responsible trust company ana me
ob1iqation Of the International Trust Company
The letter further states:
The Brooklyn Bank. recapitalized, Is to re
reorga To the personnel OF l,s
directors and officers by having as chief executlV
of47cer a favorably known and responsip!e paIh
ofTcia1 formerly connected with one or the pIPulr
nent hanks this city. and is 70 have poaiq o.
directors thoroughly representative OF the pest |
business interests In Brooklyn -,
if the reorganization is effected as above the
OF the depository commt.ee WI ooS I
soested in the retention of the business ana soo1
,5i, of the Brooklvn Bank. The basic feat ture or
is 10 reorganize the Brooklyn Bank Doth
20 "a initial and cement. so as 10 proNlde lI
a. r,e6tafa nayment of all the depositors, ana 70
IrdrSe a management which VIII be an absolute
= peerrance of the stability of the bank as q re-
9ou.Jlia institution entitled 10 the respect or the
ppnserystive citizens Of Brooklyn.
The 25oD.o lean TO be secured from trust com
-. riu he got under agreement which pro-
-. thu, during time the loan Is outstanding
~ affairs OF the hank shall be conducted py an
z,sor,, committee. which committee the trust
connanv making the loan shall nave nlehipersnp'
;. .r,her loans should be necessary TO proVloe
= oosb the letter states that such addltohai
- o., ne raised as required
- ,o.te, closes with a appeal TO the STOCK
-. 20 send in their assents promptly as 'LS
;,,ers have imposed a time limit OF ten "a!
oorMc hNE CUT OFF,