New-York tribune., 1908-02-12
MAY ABSORB ORIENTAL
HINGES ON BANK REPORT.
Val Street Trust Company Plans
to Take OUer Suspended Institution.

Negotiations are under way for the taking
over OF the suspended Oriental Bank by one OF
the large Wall Street trust companies soon Sew
eral conferences have been held this week. and.
providing the report of the state bank examin-
ers shows the capital and surplus Of the sus-
pended institution are intact the merger will in
all probability go through.
Depositors in the Oriental Bank will hail this
news with delight as It means that the Iiauida-
ton OF the bank will be avoided and the de-
posits. which amounted to 81. .465. 537 35 when
the bank suspended January % will soon be
released. G. S. Leonard. the state bank exam
iner in charge OF the Oriental will report this
week TO Clark williams. State Superintendent
Of Banking. the exact condition of the bank
when 1t stopped business, and on this report the
merger depends. The report 1t is understood.
will be highly favorable to the Oriental
At a meeting Of the directors of the Oriental
last week a committee was appointed to devise
plan of rehablitating the bank and this COM
mttee, after several meetings. decided that the
best thing to do from the point of view of
stockholders and depositors alike would be to
merge the bank with some strong financial in
stitution. A plan OF consolidation was therefore
formulated and presented TO the president OF
the trust company in question. who at laid
it informally before his directors The board
will take up the question formally the
report Of the State Banking Department is
available
One of the officers Of the Oriental Bank said
he understood the special committee of directors
named last week had plan under consideration
to merge the bank with other institution
and added that he sincerely hoped It would go
through as it would be a fine thing for the
banks depositors whose money was now tied up
The Oriental. Of which Hough Kelly is presi-
dent, Is understood TO be in the best condition
cd dy1rt0 or
since the panic. Its capital stock is SloOOSo.
and it had a surplus Of S7SSS10 So when it
closed its doors 1t owed the Clearing House
81 751 351 % for outstanding loan certificates.
Its demand loans were S2,575, ,16S 6S. its time
loans S772941 20 and its bills discounted s3.146.
335 33 1t owned stocks and bonds worth $40
436 90 real estate value at 500. 100 and had cash
on hand amounting TO S904S7 30.
The bank of course, has lost heavily in de-
posits since last summer In its statement of
November, 1906 1t showed deposits Of s13.341,-
500 These had dropped to S11.0o4O63 on Au-
gust 30 last. and were further reduced by the
manic so that on December 10. the date of the
last call for the condition of state banks. the
Oriental reported deposits Of only So,oo624o 81
The bank however has an excellent class Of
commercial business. and, as one banker SAID
last night is IAN acquisition of which any large
financial institution might be justly proud
In the statement which President Kelly Is
sued when the Oriental closed us ooorS last
month. he said:
'"The directors resret that the disquiet OF the
denositors should be the reason for the closing
down Of an absolutely solvent institution. the
hook value of whose stock is to-day above 500
a share. and they trust that the near future
may disclose means Of resum1ng business Oh
satisfactory basis