New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-17
SELLS TRUST
Control of Mercantile Costs the
Bankers Trust Co. $9,576,340.
MERGER EXPECTED LATER
New Institution Would Be the
Largest Trust Company IN
the Country.

ARRANGEMENTS have been made IL became
known yesterday for the SAFE oS
Equitable Life Assurance Society Vi -,
controlling interest In the Merca"'
Trust Company, amounting to l2,Sf sna'e'
out Of the total 10000. the purchasers pe'"s
a group OF investors among whom are seF
era Of the chief stockholders OF the banh
ers' Trust Company. The transfer oI .'''7
control. il is understood. will be followed IN
time by the merger OF the Bankers anu
Mercantile companies. which woulu I'dn'
the new institution, on the tasis VI
present deposits of the companies '"o
largest trust company in the country
The purchase price was $40 shd'e'
which makes the sum TO be received o9 TIC
Equitable Life ss.576.340 The ruling quo
tation for Mercantile Trust stock rece'li9
has been 725 bid and 735 asked, the price
paid by the purchasers OF the controi oe
ing, therefore. only little above the mar
bet level The minority stock is ratnei
widely scattered. among about loo hoider9.
BENJAMIN Strong, jr.. vice-presideht "a
the Bankers Trust Company, represehtin7
the purchasers said yesterday that the
sa le had been authorized at meeting OIL
tho Fnuitable's directors on THURSDAY IN
accordance with the requirement OF the
Armstrong law that life insurance COM
NAMES must divest themselves OF tneir
ownership of all stocks before the end OIL
this wear The sale Of the MercantIe
stock as soon as a responsible purchase
could be found he added, was merely IN
accordance with the Equtable's pohcy "a
abiding strictly by the law.
The Mercantile Trust Company, accord
ing 10 the figures shown In its statement
as Of June Z, on the call or the state gu
perntendent OF Banks. has yb.pe'oot ue-
nosits its capital being 100000 and us
surplus and undivided profits N.62o,olE Inc
Bankers Trust Company. with Sw""o
carital stock. has S.929. $50 surplus ana
profits and deposits of S94oS2.632 The COM
bined deposits figure $50. 1855. comparing
with the sl46a.621 deposits Of the Guar
antv Trust Company, at present the larg-
est institution in the trust company field
the Farmers Loan and Trust Company
being second.
The Morgan interests are dominant IN the
Bankers Trust Company, among the di-
rectors Of which are Henry p DAWSON
Thomas w. Lamont and William H. Por-
ter. OF j. p Morgan & Co, and George w
Perkins formerly a member of that hrm.
The same interests control the Guaranty
Trust Company. with which were merged
tho Morton and Fifth Avenue Trust com
panies a year and a half ago. Mr.. Morgan
Is now also the owner of the controlling
interest In The Equitable Life. through his
purchase of the majority stock from
Thomas T Ryan.
a few months after the retirement Oh
Henry c. Deming a president Of the Mer-
camille Trust Company. in April 1907 pc
cause Of III health. plans were announced
for the merger Of that institution with the
E,n,iitable Trust Company under the name
Of the Mercantile Trust Company. WIN
Alvin W. Krech. president of the Equitable
Trust, as It's president.
Litigation was begun by minority STOCK
holders of the latter company. but the
Court of Appeals. i'm April. 1898, pronouhccd
the merger legal. The merger proposal
was voted down by the stockholders OF
Lo,h institutions AT adjourned meetings
few weeks later and the directors issued
statements announcing that they had come
10 the view that n would be for the pest
interests OF both companies 10 maintain
separate existence The presidency Of the
Mercantile Trust was filled a few months
ago by the election Of William {. Poillon.
the vice president