Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1914-09-24
amend charters without further re-
ducing the restrictions fixed by the
founders of the State.
Bankers Trust Company.
st. Louis Post-Dispatch.

| An investigation into the collapse
of the Bankers Trust Co., which for
| eight years was the wonder of St
Louis fnanciers, discloses that re-
markable system of high finance
bookkeeping created a fictitious
financial condition which. resulted in a
fictitious value for its 5000 shares OF
capital stock. The stock was quoted
on the stock exchange for $3.50 a
share on April "a, last. Six weeks
ago, when the exchange closed on ac-
count of the European war, the stock
was selling at less than $40, depre-
citation Of $4,25O,oOO in it's market
value.
Hundreds of persons, mostly in st.
Louis and southeast Missouri, hold
the stock, which they purchased at
prices ranging from $1OO to 1926 a
share. This high price was the market
quotation in February, 1918.
| The investigation included an audit
of the trust company's books by
Westermann, Trader & Co., certified
public accountants, and an appraisal
of assets by committee composed of
Fl. P. Hilliard, president of the Gen.
tral National Bank; E. M. Hubbard,
cashier of Boatman's Bank, and
George W. Clarkson, president of the
Grand Avenue Bank.
The trust company is now in the
hands of State Bank Commissioner
Mitchell, who took charge of it after
a receivership suit. The trust COM
pany did not receive deposits, and its
business consisted chiefly Of railroad
building, in owning bank stocks and
in handling real estate transactions.
The audit and appraisal and addi-
tional facts disclose that the COM
pany's stock was maintained at a
fictitious value through expert book
keeping, and that officers of the trust
company sold large blocks of their
personal stock at a high valuation inn
mediately before the affairs of the
company were revealed to be in such
shape that the stock rapidly declined
in value from $3.50 share to less than
$40.
The stock began to slump on the
Stock Exchange May l, when the
S;a uIuai qal taa Ioay ICY o;nta;ed I 81" oua', o9n
waars wn,ri usa mas passed pS Pefore tbs that % time
yo%S' SaS saSS Wa at % Zoo a ahara for % seyaraI
nonnths ~ nou s Il ~ dronned r to s1e5 and tban
10 r,iSlu feil ,ntiI within IN davs II was
aaiIi,,. aapiuiy ! "a nae @ Y 49," Z o''S = "''7
oIs NJ g or " ,s,.ar tba recorie
~ the tha cannnany show that II the six
months nreceding tba nassino If the
d;uidands ] .Gharlas q Marsh ufoe,nres;.
dant n tbe comnanv and one nf the
active % a. managers Of its affairs reduc.
cd his stockholdinus from AK shares
~ oso sberea saIling oo6 sharas and
Tobn n FrankIin nresident who in
literatnre sent ont bv the comnanv
waa described as its idrivinp force i
sednced @ his holdin@s hetwea5 Noven-
her 1913 and Nav e. 1914 from 6Cl0S
shares IL 55s4 shares selling 444 shares
nf stock
IN Nav D 1914 Franklin addressed
! lattar IL tbe stnnkhoIders in an ef-
sort Vito ~ oalm tbe fears as to the solidar-
;tu M 81 the Rankers, Trust ~ Tn this
ietter he said. owe think to- sell the
stooL Of this time at the nresent
ms rket onotations ia making q fool
;sh seorifice u The informat;on in
in in the @ nossess;on of tbe post Disnatch
10 tboi hatween Nav and Nav 3
Prank sold 23o shares Of stock he
haid
Tha ond;t elbows the svstem nv
,r;,iob @ tha stoclr was held st q hioh
nrica on the Al Lonis Stock Exchange
mas t thia. '
me board Of directors in 1907 had
ssad ] rasointion nrovidinp a a. ner-
pant o anarterlv divIdend sRonld he
noiJ I For q numher of Years If has
baa, onston,arv to declare an extra
RI ,istnnas d;1idend of d ner cent.
n,a,;no o, nor cent Maid annually on
tha @ ataot 8 20 f''-'
VT The comnanv received a large in
oome from its interest and commits
sinns and frono dividends IN the
stoaLs ownad bv N The records chow
thot With tha aycantinn ~ one IN two
uaars - " tbis incoma was not snfficient
M, tIa On nar cont dividand Each
eam ~ p. " o tha - caTTonanu,s T ay;Stance fha
sudit dit shows the sarninps aceonnt
mo q ;ncreased 70 an amou1t eoual to
or orr more ore than necessary to overcome