New-York tribune., 1912-01-17
EQUITABLE TRUST TO GET
TRUST Co. Of AMERICA
President KreCh Offers to Buy
100000 of Stock at
1915 a Share.
DIRECTORS FAVOR MERGER
Consolidated Institution To Be
Fifth Largest in the City in
Point of Deposits-Deal
Recalls Panic.

The Equitable Trust Company, II present
plans shall be successfully carried through
will soon take over the Trust Company OF
America known the country over as the
institution which in the panic Of 1907 with-
Raood the most severe run ever suffered
by a bank in the United States. ana re-
Gently brought into renewed notice through
the testimony given before the STANLEY
steel committee regarding the real reason
for the acquisition Of control OF the ZEN
nessee Coal, Iron and Railroad Company Dy
the United States Steel Corporation. Inc
Equitable after the merger will be the hfth
largest trust company in the city in point
OF deposits.
Oakeigh Thclne president Of the trust
Company of America, announced yesterday
that he had received from Alvin w. Krech'
president of the Equitable Trust Company
an offer TO purchase all Of the &OW'"V
stock of the Trust Company Of America at
Ss75 a share. The directors and such stock
holders as he had been able to see Mr..
Thorne added, favored the offer and he was
going to submit It to all Of his stockhold-
ers. The stock mas recently been 825' or
S225 a share, bid.
Mr.. Krech. who, with his associates,
about year ago purchased from the
Equitable Life Assurance Society its l49ol
shares Of stock of the Equitable Trust
Company, giving them full control OF the
institution, said yesterday afternoon that
he had begun negotiations with Mr. Ihorhe
Immediately after the Equitable Building
fire, which deprived his trust company OF
home.
The company had outgrown its old ON
ces. II had been realized for some time ana
In making the search for new quarters
made necessary by the fire, IL had been MS
desire 10 establish the Equitable Trust
Coupany in a permanent home. II the pro-
tected merger with the Trust Company OF
America should go through. the ofhces OF
the enlarged Equitable Trust Company
would be in the banking rooms now occu-
MED by the Trust Company of America, at
No 81 Wall street.
Personal Offer by Krech.
The offer to the Trust Company Of Amer
ica's stockholders, Mr.. Krech continued
had been made by himself personally ana
the stock. If purchased, would in time De
turned over to the Equitable Trust COM
pany. The offer was conditioned upon two
thirds Of the stock being turned over by
February 15, and If that condition should
be met a special meeting Of the stockhold-
ers of the Equitable Trust Company "ouid
soon thereafter be called, to act upon the
nroposed transfer of the Trust Company
Of America stock
The Equitable Trust Company, Whlch Is
occupying temporary quarters in the ola
Carnegie Trust Company Offices at NO 10
Broadway, has 100000 capital stock,
which, II is believed, will not be Increased
as a result of the merger. It's statement
as Of December q showed Sl,S065p surplus
and undivided profits and deposits ol %fV'
sS46e5. The statement of the trust com
many of America as of December 5o' ISL,
showed surplus and undivided pronts oil
ss163. $50 and deposits Of 81 ,S3I,3S0. It's cap
ital stock is g, OOO Among the resources
shown in the statement is SwVVO real
estate which represents the companys III
vestrnent in the building at NO. 81 wall
street. which II owns. The building is val
ued at $4,000, ,OOO and there is 2'V1VJJ
mortgage on it, held by the trust company
The run on the Trust Company OF Amer
ica, which began a day or two after the
failure Of the Knickerbocker Trust COM
pany. on October %. 1907, continued for
about ten days during which period about
$4,000 600 was paid out to depositors II
was a time of unprecedented strain, ana
after the panic was over much credit was
given President Thorne for his part in saw
ing the institution. for which he worked
almost continuously.
After the storm was over and the COM
pany saved Mr.. Thorne made a statement,
in which he said that his company had
prepared for the coming panic months in
advance and when the CTisi: came had a
cash reserve largely in excess of legal re-
ouirements. The examination Of the as
sets made by a committee Of bankers, he
continued had disclosed that no officer or
director had a loan with the company in
excess Of the legal limit, and that neither
the president nor any company with which
he was associated had any loan whatever.
The panic practically ended on Novem-
bsr 6, 1907 enrly IN the morning Of which
day the late Edward King, president Of
the Union Trust Company, issued state
ment that arrangements had been made
for placing a majority of the stock of the
Trust Company of America and the Lin
coin Trust Company temporarily under the
control of a committee Of trust company
presidents, and that full financial support
would be given both companies.
With that announcement came one from
Judge Gary chairman Of the board Of the
United States Steel Corporation, that that
company had arranged to buy the major
ity Of the Tennessee Coal and Iron Com
pany's stock at par, giving for 1t its own
sinking fund per cent bonds.
Never Owned Tennessee Stock.
The Trust Company of America had been
commonly credited with holding a large
amount Of Tennessee stock, almost the en-
tire issue of which was controlled by
a group of capitalists and the market posi-
ton Of which was such that the stock was
not regarded as readily marketable col
lateral Mr.. Thorne issued this statement:
The Trust Company Of America has never
owned a share of Tennessee Coal and Iron.
II has outstanding loans made to RESPONSE
BILE parties on Tennessee Coal and Iron
stock as collateral, to the total amount Of
$50 900, all Of which loans are amply Sc
cured.
The late John w. Gates, who was heavily
interested in Tennessee Coal and Iron, tes-
tilted before the Stanley committee last
May that he regarded the sale Of the Ten
nessee Coal and Iron stock TO the Steel Cor
poration as a forced sale. Asked what
financial power forced ii, he answered that
he surmised that the transaction followed
the finding of too much Tennessee Coal
and Iron as collateral in one of the banks.
This bank he added, which was the Trust
Company OF America. wanted $4,000, 900,
"and they got It,"
Merged with Many Others.
The Trust Company OF America. which
ts about "a lose its cornorate identitv In