New-York tribune., 1911-04-17
.RA|NEY AFTER ASSETS
Of CARNEGIE TRUST CO.
Director OF His Concern Thinks a
Rival Bid of S. 100000
RidicuIouSIy Low.
BIG CUSTOMERS TO DECIDE
Bankers Syndicate Provides for
Full Payment of So, 100000
to Small Depositors
at Once.

The Liquidation and Realization com
pany Of No ie5 Broadway. is looking care
fully over the assets of the Carnegie Trust
Company. II is understood with view to
bidding for them But Roy 4 Rainey.
president of the company wants 70 kno"
what extent the state Banking Department
has committed itself 70 the offer alreadv
made bv the Assets Realization Company
director Of the liouida alton company sara
yesterday with regard 70 this offer:
II 10000 is the correct figure. as print
ed. the Assets Realization offer seems
ridiculously low at least from what nave
seen personally Of the assets
Last Thursday-s fact printed AT the time
in The Tribune-s syndicate of bankers
made the Ranking Department an ofer
for the assets of the trust COMPANY. "hicn
included a guarantee that the small de-
positors should be paid In full az once and
the large depositors in due course. Yes
terday the details Of this offer became
known. E. Clarence Jones E. Co. bankers.
Of No. 1no Broadway. made II. A powerful
syndicate is az their back. u Is believed
those with less than sl0"n tied M in the
bank BY the terms of the offer all these
persons would receive their full accounts
In cash AZ once. But such consummation
would depend upon the consent Of the sew
enty-one depositors who have more than
$1,000 each In the bank. condition %
The Jones offer would he their agreement
20 wait for al least part 81 their money
until the slow assets could be realized
upon.
Offer to liouidate in Two Years,
To pay them on. gradually the assets
would ell be deposited 10 begin with I'm
trust company in New York city. which
should see 70 a participation pro rata ny
the deferred payment depositors in the re-
ceipts from all assets. such participation 70
reach I'm two years the full face value OF
their deposits To guarantee full payment
in two years the liouidators offer TO de-
post 81 10000 in cash.
The trust company had about four thou
sand small depostors on It's books when IT
closed its doors on January T. Inc ciaifnS
OF these four thousand. mostly clerks and
stenographers in the financial district az
gregate 10000 II is known that the re-
ceiver has collected about enough ALREADY
10 pay off these depositors I'm full
on the other hand. the seventy-one large
depositors among them the Madison Trust
Company. Twelfth Ward and Nineteenth
Ward banks with claims amounting 10
81 O0o, 90: New York city, with claim OF
S65o.0o the American Snuff company with
A deposit OF S40oOo0: the Northern Bank
with $3.50 Coz: the Public Bank. claiming
s2oO.CCo. and the United States Fidelity and
Guaranty Company, with a deposit of slV'-
900. made demands in all amounting to
about 100000
Another condition attending the offer Of
the bankers represented by +. Clarence
Jones & Co is that the Banking Depart
ment use its influence to adjust the dept
Of the Carnegie Safe Deposit Company to
the trust company. The safe deposit com
pany owes the trust company 100000 ana
the trust company holds 40 per cent of the
stock OF the safe deposit company. There
is an agreement in existence providing that
this debt of $1,000 he paid at the rate OF
one-third Of the safe deposit company
earnings each year. According to the re-
norris Of the Banking Department. these
earnings do not exceed 80 On year. at
o.bicb rate according TO the terms Of the
agreement. il would take forty wears 10
nav the debt and in the meantime the trust
companys depositors would have to wait
for their money
Still another condition is that the Dyer
note for 1896 900 he settled I'm some way.
The Ranking Department Is negotiating al
ready ~ have one of the guarantors of this
note take " up The settlement OF this
ohlieation IS also condition Of tho Assets
Realization offer.
The remuneration stipulated in the Jones
rronosition Is All profits on the assets over
and abo.e the deposits up 10 10 per cent
Of the assets face value and counsel fees,