New-York tribune., 1917-06-23
Canadians Buy
Control of the
Merchants Natl
The Syndicate Headed by
George Coffin Warner
Disposes of Stock

Canadian capitalists have purchased
control of the Merchants National
Bank of New York The deal was con-
summated through the Royal Bank Of
Capeia. 1t involved the transfer of
20.00l shares of the Merchants Ma
tiona stock, or one share in excess Of
half the banks capital, owned by in
terests represented by George Coffin
Warner, which early in the year wrest-
ed control of the institution from the
old management headed by Robert NJ.
Galloway. The price paid for the stock
is said TO have been sl43 share.
The transaction is regarded a7 one Of
the most important of its kind which
has taken place in Wall Street in years.
IL gives Canadian interests, which have
been depending on this country for a
good deal of financial assistance since
the war started, an opportunity 10 do
business directly with a bank which
they control, and it is expected that
broader market for Canadian securities
will in time be developed here through
this agency.
Canadians on Directorate
Three or four new directors repre-
senting the Canadian syndicate will be
added 70 the board of the Merchants
National, but no other changes, il is
said, are contemplated for the present.
Theodore +. Burton, former United
States Senator from Ohio. who was
elected president last January by the
Coffin faction, is expected to continue
in that office.
When the Coffin syndicate, composed
of about $50 members. acquired control
of the Merchants National they intro
duced a new feature in the admins
tration of New York bank by the ap-
pointment of an advisory council, the
members of which were George {. Van
Tuyl. jr.. president of the Metropolitan
Trust Company, chairman; Joseph W.
Hartman. Dean Sage, Of Zabriskie,
Murray, Sage & Kerr; Anthony r. Ku
ser. of Newark; Frank G.. Crowell. of
the Hall-Baker Grain Company, of Kan
sas City, Mo-, and Waldo Newcomer,
president of the National Exchange
Bank of Baltimore.
II is now understood that the chief
purpose Of this committee was to act
for the new board Of twelve directors in
selling control. This work having been
accomplished, the committee viii prob
ably dissolve.
Several Attempts to Sell Bank
It was learned yesterday for the first
time that the Coffin syndicate had made
several unsuccessful attempts TO dis
pose Of the majority stock since 1T OBJ
tained control. early in the year. The
first negotiations. il is said, failed when
Count Won Bernstortf was dismissed as
ambassador 10 this country from Ger
many. Later the declaration Of war
against Germany caused another deal
70 be dropped Negotiations with the
Canadian syndicate were delayed as
result of the Liberty Loan campaign.
The New York syndicate. which
agreed TO undcrwrite the sale of the
Merchants National stock now held by
Canadian interests, had made a pay
ment Of p per cent 70 the shareholders,
which will now be returned TO the syn
dicate members.
The Merchants National Bank was
founded in 1903, and is the third oldest
bank in New York It's articles of in
corporation were drawn up by Alex
ander Hamilton. Il has a capital of
S2,000.00O and a surplus of $500, 900.
Deposits total about 500 100000.