New-York tribune., 1910-01-05
TALK OF MERGER
ANOTHER LOOKEDFOR
Belief That T7co More Trust
Companies Viii Join.

The proposed merger OF the Guaranty,
Morton ana Fifth Avenue trust companies
wss the principal topic OF conversation in
banking circles yesterday. and the general
opinion appeared 10 be that the absorption
of these three companies would be only the
forerunner OF bigger merger still to come,
which would include. in addition to the
three concerns mentioned. the Bankers and
Astor trust companies.
An interest identified with one of the
companies TO be merged, when asked if the
Bankers and the Astor would ultimately
be included in the combination. said that
the question of their absorption had not
even been discussed. but that ii was inn
possible TO say what the future might hold
forth in that direction.
''It is NOT safe in these times.'' he added.
ito say that such and such thing will not
ultimately come TO pass. but at present
can say that there is no indication of the
two companies you mention being taken
into the combination"
II was thought in some quarters that the
proposition to merge the Guaranty. Morton
and Fifth Avenue companies was the be-
ginning OF a movement 10 merge number
OF other trust companies. The Mercantile
and Equitable trust companies were spoken
OF in this connection as likely to be COM
bined eventually, although a proposition to
merge them, made some time ago, was
abandoned, following a lot of litigation
brought on by stockholders who objected
TO the plan. which, however, ended in favor
Of the managements of the two companies.
Further conferences were held yester-
day by the financiers who have been con-
ducting the negotiations for the merger Of
the three trust companies, at which it is
understood the final details of the plan,
which will be submitted to the three
boards for official adoption to-day. were
completed Nothing of an official nature
was given out, however, and ii was said
that nothing further in the matter would
be made public until after the meetings.
The Guaranty Trust Company sent a
circular 10 its stockholders yesterday
notifying them of a meeting to. be held on
January 19 10 authorize an increase in the
capital stock of the corporation from ST.
100000 to s3.O0O.00o. in pursuance of g
resolution adopted last Monday by the
board Of directors.
The new stock is to be offered at par to
stockholders of record at the close of bust
ness at the date of the meeting to the eX-
tent OF so per cent of their holdings of old
stock Subscriptions will become opera
tive only after the increase of stock has
been authorized, and the rights to sub
scribe viii terminate on March l. AS
the present quotation for Guaranty Trust
Company stock is 500 bid, the right 10
subscribe 20 the new stock at par is a
JUICY melon for the stockholders which
they viii probably not fail to take ad-
vantage Of 10 the limit allowed under the
terms of the offer.
Alexander J. Hemphill. president of the
Guaranty Trust Company, said that the
proposed increase in the capital stock of
the company was a necessary legal pre-
liminary step to the proposed $4,000
capitalization of the merged companies.
One effect Of the proposed merger, it is
believed, viii be to help in the settlement
Of the traction litigation now pending in
the federal courts by putting an end to
the friction which has existed between
the Guaranty Trust Company. as trustee
for the holders OF the 1880, 900 general
collateral trust bonds of the Metropolitan
Street Railway Company, and the Morton
Trust Company, as trustee for the holders
Of the sl6,604000 refunding mortgage
. bonds Of the company.