The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-23
$26O,OOO,OQO BANK
MERGER PLANNED
Amalgamation Of Liberty Ma
ti0naI and New York Trust
Under Way.
CAPITAL OF $10,000,000
Institution Will Take Name Of
the Trust Company in
the Project.

Negotiations looking. toward the mer-
the New York Trust Company into an
institution OF $3.50, 900, 900 resources and
SO. 100000 capital with the title of the
New York Trust Company are under
way, according to simultaneous an
nouncement yesterday by Mortimer N.
Buckner president of the New York
Trust Company. and Harvey ID. Gibson.
president Of the Liberty National Bank.
The principal stockholders Of both In
situations have been consulted and they
are unanimously in favor Of the CONSOLE
dalton. AS result a committee OF six
has been appointed to work out the de-
tails Of the merger, to fix the asset and
the book values of each and make rec
concentrations to the boards of the two
financial institutions. When the project
has been passed upon by the two boards
the subject will be presented to all the
stockholders for fomal action, which
may not take place before the latter part
Of January
Among the officers of the new institu-
ton will be Otto T. Barnard, chairman
of the advisory board to be created
Mortimer N. Buckner, chairman OF the
directors. and Harvey D. Gibson. presi-
dent.
The committees, which are working
out the details. are composed Of the fol-
lowing persons: For the New York
Trust Company. Dean Sage. F. N. Hoff-
stot. president of the Pressed Steel Car
Company. and Darwin P. Kingsley,
president OF the New York Life Insur-
ance Company and president Of the
Chamber OF Commerce Of the State OF
New York; for the Liberty National
Bank, William II. Porter. OF ]. p. Nor
gan & Co.. representing the stockhold-
ers: Thomas e. Cochran, Of J. p. Nor
gan & Co., representing the Liberty Sc
curities Corporation. and Grayson NJ. p.
Murphy, representing the directors.
The New York Trust Company has
100000 Of capital stock with a mar
ket value Of around 500 and the Liberty
National Bank has 100000 of capital
stock with a market value of around $40.
The project is to have the New York
Trust Company increase its capital
$2.000.000 to 100000 that the shares
OF stock OF each company may share
equally in the new company. 1t Is I'M
derstood that eventually the latter will
have quarters in 100 Broadway. In
which three floors are being remodelled
for banking purposes.
The New York Trust Company and the
Liberty National Bank. through the in
timacy Of their presidents, have for con-
siderable time been sharing in making
large for either bank to handle separ-
ately. The purpose of the merger under
the name of the New York Trust Com
pany - to acquire the asset value of
THE words New York; and enable the
new institution to conduct it's business
on the broader base OF the State laws
affecting trust companies. A national
bank is limited in It's loans to any single
Individual to 10 per cent. of capital and
surplus. but a trust company can loan
UP to 10 per cent. unsecured and up to
rs per cent. of capital and surplus IL
the loan be secured.
According to last Saturdays bank
statement the New York Trust Company
had. on November Is. 100000 of cap
ital stock and $11.719,400 of surplus and
undivided profits $s4.2S7, 900 loans, dis
counts and investments SCI. 500, 900 time
and demand deposits. At the same time
the Liberty National Bank had $4,000, 900
In capital, s7.658.900 in surplus and I'M
divided profits. s9s,a5o,ooo in loans dis
counts and investments. and S74,144,O 900
In demand and time deposits.