New-York tribune., 1910-01-06
FIX MERGER TERMS
THREE BO4RDS AGREE
Guaranty Trust Company
Plans A1cait Ratification.

The terms of the proposed consolidation
of the Guaranty, Morton and Fifth Avenue
trust companies were made public last
night by Henry P Dawson, of j. P. Nor
gan G. Co, following meetings of the
boards of the three companies held yes
terday afternoon for the official adoption
of the resolutions covering the merger
agreed TO last Monday by the directorates
OF the three institutions. The terms, as an
nounced by Mr.. Dawson, are as follows:
The Guaranty Trust Company is TO in
crease its capital stock TO s5,0o0,0o0 OF the
increased capital stock there Will have
been offered before the merger. to the
stockholders of the Guaranty Trust Com
pany, for a pro-rata subscription at par,
S, 100, ,000 leaving available for exchange for
shares of the Morton Trust Company and
the Fifth Avenue Trust Company, as pro-
The stockholders of the Morton Trust
Company, to De entitled to exchange their
stock for stock of the Guaranty Trust
Company, at the rate of four shares of
Morton Trust Company stock for three
shares of Guaranty Trust Company stock.
If all of the stock of the Morton Trust
Company is exchanged, new stock of Guar
anty Trust Company will thus be issued to
the amount of $3.50 900.
The stockholders of the Fifth Avenue
Trust Company, to be entitled to exchange
their stock for new stock of the Guaranty
Trust Company. at the rate of two shares
of old stock for one share of new stock.
If all of the stock of the Fifth Avenue
Trust Company is exchanged, new stock of
the Guaranty Trust Company will thus be
issued TO the amount of $0,0oO,OoO
The following is summary of the fnan-
cal position of the three companies, as
shown by their reports:
Guaranty Trust Company-Capital stock,
100000: surplus and undivided profits De
cember 81, 1909. $780, 005 deposits January
4. 1910. S75.6l4,000; net earnings, 1909 Sl,62S,-
lS9; market value Of stock. from latest pub
The Morton Trust Company-Capital
stock $1,000 surplus a and nd oo undivided
It's January 4, 1910, So, 100000; net earnings,
1909 $l,079,U00; market value of stock, as
shown by the latest published sales, $3.50.
ital stock, 100000; surplus and undivided
profits, December 81, 1909, $l,932,575; de-
fro m latest publ shed sales, $3.50.
Upon the completion of the merger, pro
trust companies is exchanged. the Guar
anty Trust Company will have capital
stock of 100000, and a surplus, including
$2i 10000
The stockholders of the Guaranty Trust
Company, after the merger, are invited
to deposit their stock under a voting trust
agreement, dated January 3, 1910, and to
continue for five years. the voting trustees
son and William II. Porter. Transferable
voting trust certificates will be issued to
represent stock deposited under such
, agreement.
a meeting of the stockholders of the
three trust companies has been called for
Tuesday. January %, for the purpose of
notifying them of the above merger. Levi
P. Morton viii be the chairman of the
new board, and the merged trust COM
panies will represent probably the biggest
trust company in this country. The new
board will be composed of twentyfour
men The Guaranty Trust Company now
has a board composed of fifteen men, some
of whom will resign.