The sun., 1908-11-30
JENKINS TRUST co. TO QUIT
HAS Not PROSPERED UNDER
k ITS NEW NAME LAFAYETTE.

Superintendent Of Banks 10 Take Pesses.
siOn-Trust Company Presidents OF
BEeekIyH Advised IAquIda tisO- De.
positors' Prospects Are Not stated.
The Lafayette Trust Company. under
which name the Jenkins Trust Company
Of Brooklyn was roorganizsd. with its
main Office at Gates and Nostrand
avenues and branches at Coney Island
and Ridgewood, will go into the hands
Of the Superint endent OF Banks this
morning for liquidation. Inability to
raise additional capital for it's branches
under the new State law is assigned as
the reason, The company has already
paid 76 per cent. Of the amount due to
old Jenkins Trust Company depositors,
having anticipated the last payment two
months.
The decision to 60 out Of business was
announced last night at the Brooklyn
Club by Harold A. Davidson, the presi
dent. after a conference lasting nearly
all day at the home of Charles A. Boody,
president of the Peoples Trust Com
pany who lives at 1877 Joralemon street.
This conference was attended by the
heads of all the Brooklyn trust COM
panies and was for the purpose Of decid-
ing whether it would be worth while for
the other trust companies to try TO pull
the Lafayette Trust Company through.
The conference broke up at about
o'clock, when it was announced that a
statement was being prepared. At Ii
O'Clock President Davidson gave out
this statement:
'The proposed increase OF the capital
Of the Lafayette Trust Company 10 meet
the requirements Of the new law for the
operation OF existing branches, has
proved unsuccessful. Three branches
have already been closed and for lack
Of additional capital two more must now
be abandoned.
"A continuance OF business under
these circumstances is impossible. The
advice Of a number OF presidents Of
Brooklyn trust companies was sought at
a conference held at the residence Of
Charles A. Boody. 1t was the consensus
OF opinion that liquidation must ensue
and that this can be expedited more eco
nomically through the Banking Depart
ment under the recent statute than other
wise.
The Superintendent of Banks has
been, consulted and will take possession
tomorrow for the purpose OF efecting
such liquidation
1t was learned that the deposits Of the
trust company have shrunk from - 900 900
at the time it opened last April to
81, ,4oo. 900.
President Davidson declined to cay
whether or not he believed the old de-
positors Of the Jenkins Trust Company
and the new depositors in the Lafayette
would be paid in full.
The Jenkins Trust Company was one
OF the chain OF Jenkins banks which closed
in the week of the Knickerbocker Trust
Company run last year, and for which
the Attorney General had a receiver ap-
pointed on November l6. 1907. John
G. Jenkins. Jr., now on his trial in
Brooklyn for embezzling the company's
money. was the president, On April 5
last Supreme Court Justice Belts
handed down an order permitting the
company TO resume notlater than April
70. His decision was based on report
by Banking Superintendent Clark Will
Jams. that the company's assets were
81, ,sO2. .7l24e, and the liabilities. including
the estimated expenses Of the receiver
ship. $3.50, ,524.22. leaving the capital
intact and a surplus of $ie.1ss.2t. The
board Of directors were REQUIRED to de-
posit Jointly directors fund OF $lO0, 900
prior 10 the resumption of business. This
fund was to be made rspayabe only out
of surplus which might be accumulated
in excess Of $3.50. 900.
Harold A. Davidson was elected presi-
dent and the institution reopened on April
l5. The new officers. in addition to Mr..
Davidson and Mr. Adams. were H. B.
Scharman and Lewis H. Irwin. first and
scond vice. presidents. and Joseph Lough-
lin secretary. The old company had
about 5000 depositors, most Of whom had
assented to an instalment plan Of drawing
upon their deposits. Banks were to be
repaid within ninety days and depositors
in ten monthly ihstalments.