The Washington herald., 1913-12-07
MUNSEY Trust
TAKES CONTROL
United States Trust Shares
to Be Exchanged for
Others Stock.
NOLIQUDATION PLANNED
Markets Steady-Good Bond Buying
on Local Mart-City Bank
Replies.
BY D. \. FLEMING,

ny D. II. FLEMING.
The United States Trust COMPANY
passed officially into retirement yester-
day. The Munsey Trust Company sue
cceded TO the business, the old pass
books with the United States Trust
Company thereon, were retired and all
new accounts opened were in the name
Of the .Munsey Trust Company
Two-thirds of the shareholders have
approved the agreement and the full
vote of the shareholders is asked for
Monday next at special meeting of the
United States Trust Company.
While the saving of the big trust COM
pany from the necessity of closing its
doors and preventing serious inconven-
ience and loss 10 its army of depOsitors,
with probable attendant troubles here,
there and elsewhere, is coming in for
more or less criticism from the New
York end, but the business men and the
bank officials of the lesser institutions
of the city are pleased with what hap
pened, without other banks incurring
the slightest obligations.
However il happened it was for the
best interests OF Washington and its
depositOrs.
1t is the plan of the Munsey Trust
Company to exchange its shares dollar
for dollar of the appraised value Of the
United States Trust Company shares.
It is not the intention of the company
to liQuidate the assets.
The following circular tells the story:
ITO the Stockholders of the United
States Trust Company: The directors
OF the United States Trust Company beg
II announce TO you. with the knowledge
and authority of The Munsey Trust Com
Vany, that a plan has been agreed upon
Tor a fair and impartial appraisal Of
the net assets of the United States Trust
Company, and is now rapidly going for
ward.
Every stockholder in the United States
Trust Company, in proportion to his hold
iI:gs. will have opportunity TO secure
stock in The Munsey Trust Company for
the. full value of his holdings. Account
ants are now at work marshaling these
assets and a committee representing each
Of the two institutions will appralse
the same 50 that every stockhoider in
the United States Trust Company ma"
feel sure of fair treatment
1t has been ~--eed that there will
bt. no liquidation of this company, but an
exchange of stock in The Munsey Trust
Company for the full value of stock Of
the United States Trust Company, except
that. at the option of any stockholder.
he may have his share in cash.
THE directors of the United States
Trust Company confidently believe that
whatever loss may temporarily appea"'
Will be ultimately recovered in the IN
creased value of the stock of The Munsey
Trust Company. which, with its capital
end deposits. combined with the capital
and deposits of the United States Trust
Company, will make one of the strongest
institutions in the country.
"Two-thirds of the stockholders of the
United States Trust Company haVnS
already assented to the plan, all deposits.
heginning tomorrow vii! be carried IN
tie name Of The Munsey Trust Company,
and pass books of all depositors will be
changed accordingly.
Respectfully.
BOARD OF DIRECTORS UNITED
STATES TRUST CO"
stocks Slow.
Wall Street spent a couple of quiet
hours yesterday. with few radical changes
in values other than excellent strength
in Reading. and moderate advances ir
American Tobacco, a point on virginia
Chemical and IL point on Tennessee
Coal.
The immediate opening was character
lied by firmness, but every one was look
ing for a less favorable bank statement
and figured on the practical loss of sur
plus entirely.
For a time covering sent Union Pa
cific up nearly a point and Steel, the &C
tive leaders. 5aS. but before the end OF
the first hour the trend was the Other
way. and the closings showed Union
Pacific and Steel just where they wert
Yesterday. Reading held its advance
of better than point
St Paul was a weak security, declining
SIS to 80 is, as compared with a closing
at 90 3-4 on Friday.
The bank statement was a distinct sur
prise, as it showed an actuaI increase IN
reserves of sS,641,OOO. This was accom-
plished by the reduction of the loans by
S51,OO0.OOO at the expense of S54,556,O00 ol
deposits.
Mercantile agencies report the CONNER
cial situation bettering. but the warn
weather is retarding trade. Blizzards
throughout Colorado are causing tie-up.
One of the gossip reports stated thai
the Gates oil interests in Texas would
be marketed.
currency bill will be enacted in the neal
future and that it will have a good effec
on stocks.
Becoming tired of pessimism, more rea
hopeful optimism is in sight
On the Local Market.
For a Saturday business was entirely
ket. Investment buying of bonds re
suited in the recording of s165OO face
value at 50 for Railway Is, 107 1-2 fol
Traction IS, and 9S3- for Potomac
Electric Consolidated IS.
National Metropolitan Bank sold a.
100, and three Union Trust at 1s2 H.
= Washington Gas firm at S4aS4 IA
Railway common, Sc 1-2as7
Answers Charge.
The National City Bank of New York
answering critics, who have alleged thai
New York bankers have been in tn,
habit of curtailing credits in the interes
Of larger loans to Wall Street, denie.
that it has been party to this kind o.
procedure, and elaborates as follows
Statements have been made that banks in the re
serve and the central reserTe cities have been cur
failing their loans TO commercial borrowers and in
creasng those made against stock exchange colaera
in order to strengthen their available resources IL
anticipation Of the changes that will result wheT
The pending banking legislation has become an &C
somphshed fact. We do not believe that this Is be
ing done. In any event II is not being done by tn,
National City Bank Of New York.
Our commercial loans and loans to hanks com