14725. Merchants' Trust Company (Albany, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 23, 1905
Location
Albany, New York (42.653, -73.756)

Metadata

Model
gpt-5-mini
Short Digest
c9f50849

Response Measures

None

Description

Articles report the trust company's doors were closed and receivers (Douglas Robinson and New York Trust Company) were appointed May 23, 1905. Closure followed discovery of large uncollectible loans secured by Hudson Valley Railway securities — bank-specific adverse asset problems. Newspapers mention suspension to avoid a run but do not describe an actual depositor run prior to suspension; therefore classified as suspension followed by closure/receivership.

Events (2)
1. May 23, 1905 Receivership
Newspaper Excerpt
Upon the application of Attorney General Mayer, Justice Cochrane of the supreme court has today appointed Douglas Robinson and the New York Trust Company as receivers of the Merchants' Trust Company. The bond of Mr. Robinson was fixed at $500,000.
Source
newspapers
2. May 23, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Investigation found large unpaid loans (~$2,000,000) secured by Hudson Valley Railway and Rutland properties bonds that proved unmarketable or valueless; inability to realize on collateral led to suspension.
Newspaper Excerpt
I have been advised and have determined that it is in the interests of the depositors to close the institution, and accordingly called a meeting of the directors for this morning, as a result of which we have suspended business.
Source
newspapers

Newspaper Articles (9)
1. May 23, 1905 Evening Star Washington, DC
Article from Evening Star, May 23, 1905

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Article Text

President Phillips' Statement. President Phillips made the following statement at 11:30 o'clock: "I have been the president only since January of this year, having assumed the office on the express understanding that I was to be permitted to retire as soon as a suitable president could be selected. "Prior to that time, in 1904, I had been a director and vice president, but was very seriously ill during most of the year, and had no special knowledge of the affairs of the trust company. "When I took office in January of this year I began an investigation of the assets, which has been recently concluded. As the result of such an investigation 1 have been advised and have determined that it is in the interests of the depositors to close the institution, and accordingly called a meeting of the directors for this morning, as a result of which we have suspended business. "Among the assets which I found on taking office were a large amount of 5 per cent first mortgage bonds of the Hudson Valley Railroad Company and a large block of bonds of the Rutland properties of Vermont. including the street railway, gas and ele light works. "The rust company had made loans on these two classes of securities at different times, which are still unpaid, amounting together to over $2,000,000. "We have been repeatedly assured since I took office that these securities are worth almost if not the entire amount of the loan, but all efforts to realize on them have, up to this time, proved futile. If they have any such value there is a large surplus." Receiver Appointed. ALBANY, N. Y., May 23.-Upon the application of Attorney General Mayer, Justice Cochrane of the supreme court has today appointed Douglas Robinson and the New York Trust Company as receivers of the Merchants' Trust Company. The bond of Mr. Robinson was fixed at $500,000. Under the law the trust company, as receiver, is not required to give a bond.

2. May 23, 1905 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, May 23, 1905

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Article Text

OWES $2,000,000 of Merchants New York Trust Company Closes Its Doors. $500,000. The Concern of Had a CapitalSt IN 1899. ORGANIZED Two Years Ago. Stock Was Worth 290 Held in Hudson $4,000,000 New was Merchants York, Trust May 23.-The The closed today. company of door this of the positors stock of company has tion capital of Merchants the about $2,000,000. $500,000 Trust and owed city deDecember banking was that the The report on state by the banking state 23, last. department affairs department An examina- made the had company's been reduced book surplus showed $1,198,737 of $1,074,548. by the of out curities held the by value of examiners some of had and of others duced creased some the While others the the company examiners they the threw inis The of company consolidated property company of which the mortgage Hudson Valley bonds $4,000,000 on the trolley toga lines around Railway The aminers and Lake Troy, Sara- of accepted tion ley Railway of the securities the bank valua- excompany company Hudson 1903 the stock was organized held in 1899 by it. The being reached In Val- May bid for it. high Bad, president of the Edwin Hawley point. was 290 The Collections Were at one time. of that effect on the posted banks D. ompany Kilburr notice closed by order doors It was said to inability of large certain payment to of secure the today that due the closing being on the loans which consisted of of Hudson securities Railway a tent participator company in the The Valley was Reports of $533,500. syndicate to the Valley obliged to that the company would exaffected in the stock business be dealings afternoon market in the late and Phillips. Trust company. president of the for Jacob Samuel ing In formal view state statements gave out the Merchants' followf been pany given to the the Dublicity that to the to increase its efforts of the has tain unmarketable cash comcollateral of the securities character of and vised for large which it holds certhe president loans. have suspension vent a of business to recommend the 'Mr. run Phillips on the has institution as to prehave only a few months been president for not he has made crippled under the his cash The resources loans that Ever since no Mr. esponsibility administration for and his efforts have Phillips assumed them. whose administhe loans inducing tration those under been directed toward office has This them not yet out been of the institution were made to take 'The president done a The statement later will probably make follows: vice officers Presi of the company are secretary president Cassius Jacob W. L Phillips: as Davis: assistant and treasurer Frederic Wickers er treasurer One Jacob C. secretary Coyne and assistant Gould P Munn. of the directors family. physician to was the Dr. John Prices of Stocks stocks Went Up. state port pany that the Merchants' advanced on the rebanking was examine in the hands of Trust the comis account edge of this trouble was Advance knowln and it was for yesterday's selling supposed overdone. thought that it of stock out before The the buying of stocks had been on the stock exchange end of the first hour died pretty On generally lost again. and gains were January to amounted including al and bond investments 1 the company's stock $1,471,312 Hudson Valley Railway the following ticipating. ton $533,500 United dicate par& or Virginia duck Passenger stock. $100,000. States $101,000 cotfirst bonds a. den Power company $200,000 Power of the company ChittenNew York $500,000 of the bonds first of bonds the city and of There group bank today. was no A excitement about the but sons when sought they admission of to twenty the offices. peraway. and the notice posted found they the doors went closed 23.-J Young Makes Statement May San Francisco Young, Bank and president Trust of the Goldfield bringing the in crisis the about had nothing to compan do with declares he the He declares manner that he was bank's opposed affairs. to conducted by its which the bank According to Young. cashier and directors was from in the Goldfield bank and denies he sold that his he stock says he came to Sna On the contrary fled he brief turn as trip and that he Francisco intends for of the bank liabilities believe that soon the as possible. He does to not exceed $100,000 will amount. should have assets enough and says to meet that this Receiver Is Named plication Albany of N Y Attorney May -Upon the aphere Justice today Cockrane of the General supreme Mayer and the New appointed York Douglas Robinson court pany receivers of the Merchants Trust company Under fixed at The $500,000. bonds of Mr. Robinson Trust com- were to_give a bond. trust just company's receiver is the not law required the Local les Merchants' interest Trust in the failure of the by the important company effect enhanced ure entails on the affairs which the failson Valley Railway of the Huder ein Albany is in a position company No one it will affect the Hudson say how & way, whose Valley aits Addison president. B. Colvin offices are of that at Glens place Falls. being railState Bank Superintendent Kilbur

3. May 23, 1905 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, May 23, 1905

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Article Text

AFFECTED THE STOCK MARKET. Deuglas Robinson and N. Y. Trust Co. Appointed Receivers- Statement By President's Counsel. STATE BANK SUPT'S STATEMENT. Delayed Taking Action, He Did so as Net to Throw Securities on Market At Enormous Loss. Albany, N. Y., May 23.-Upon the ap. plication of Atty. Gen. Mayer, Justice Cockrane, of the supreme court, here today appointed Douglas Robinson and the New York Trust company as receivers of the Merchants' Trust company. The bonds of Mr. Robinson were fixed at $500,000. Under the law the trust company as receiver is not TOP quired to give a bond. Local interest in the failure of the Merchants' Trust company is enhanced by the important effect which the failure entails on the affairs of the Hudson Valley Railway company. No one in Albany is in a position to say how it will affect the Hudson Valley Railroad, whose offices are at Glens Falls, Addison B. Colvin of that place being its president. DOORS ARE CLOSED. New York, May 23.-The doors of the Merchants' Trust company of this city were closed today. The Merchants' Trust company had a capital of $500,000, and owed depositors about $2,000,000. An examination of the company's affairs was made by the state banking department on Dec. 23 last. The report of the state banking department showed that the company's book surplus or $1,198,737 had been re* duced by the examiners to $1,074,548, while the examiners had increased the value of some of the securities held by the company, they threw, out some others as valueless and reduced the valuaLion of others. The company is truetes of a $4,000,000 consolidated mortgage on the property of the Hudson Valley Railway company. which 18 a consolidation of trolley lines around Albany, Troy, Saratoga and Lake George. The bank examiners accepted the company' valuation of the securities of the Hudson Valley Railway company held by it. The company was organized in 1899. In May, 1903, the stock reached a high point, 290 being bid for it. Edwin Haw. ley was president of the company at one time. The company was closed by order of F. D. Kilburn, state superintendent of banks, a notice to that effect being posted on the doors. It was said today that the closing of the institution was due to inability to secure payment of certain large loans on which the collateral consisted of securities of the Hudson Valley Rallway company. The company was a participator in the Hudson Valley Railway company syndicate to the extent of $533,500. Reports that the company would be obliged to discontinue business were circulated in Wall street yesterday and affected the stock market in the late dealings yesterday afternoon. Samuel Untermeyer, counsel for Jacob L. Phillips, president of the Merchants' Trust company, gave out the following formal statement: "In view of the publicity that has been given to the efforts of the company to increase its cash resources and to the unmarketable character of certain of the securities which it holds as collateral for large loans, I have advised the president to recommend the suspension of business NO as to prevent a run on the institution. 'Mr. Phillips has been president for only a few months. The loans the have crippled the cash resources were not made under his administration and he has no responsibility for them. Ever since Mr. Phillips assumed office his efforts have been directed toward inducing those under whose administration the loans were made to take them out of the institution. This has not yet been done. The president will probably make a statement later." The officers of the trust company are ns follows: President, Jacob L. Phillips: Vice president Cassiva we Wink

4. May 24, 1905 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, May 24, 1905

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Article Text

Receivers Chosen. Albany, May 23.-Upon application of Attorney General Mayer, Justice Cochran of the supreme court has appointed Douglass Robinson and the New York Trust company as receivers of the Merchants' Trust company. The bond of Mr. Robinson was fixed at $500,000. Under the law the trust company as receiver is not required to give bond.

5. May 24, 1905 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, May 24, 1905

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Article Text

Receivers Appointed. Albany, N. Y., May 23.-Upon the application of Attorney General Meyer, Justice Cochrane of the supreme court here to-day appointed Douglass Robinson and the New York Trust Company as receivers of the Merchants' Trust Company. The bonds of Mr. Robinson were fixed at $500,000. Under the law the trust company as receiver is not required to give a bond. Local interest in the failure entails upon the affairs of the Hudson Valley Railway company. No one in Albany is in position to say how it will affect the Hudson Valley Railway, whose offices are at Glens Falls, Addison Colvin. of that place, being its president.

6. May 24, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, May 24, 1905

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Article Text

TRUST COMPANY GOES UP SPOUT Merchants of New York City Unable to Pay Depositors, RECEIVER IS APPOINTED INSTITUTION IS NOT A TOTAL WRECK. Albany, N. Y., May 23.-Upon the application of Attorney General Mayer, Justice Cockrane of the supreme court here today appointed Douglas Robinson and the New York Trust company as receivers of the Merchants' Trust company. The bonds of Mr. Robinson were fixed at $500,000. Under the law the trust company as receiver is not required to give a bond. Local interest in the failure of the Merchants' Trust company is enhanced by the important effect which the failure entails on the affairs of the Hudson Valley Railway company. No one in Albany is in a position to say how it will affect the Hudson Valley railroad, whose offices are at Glens Falls, Addison B. Colvin of that place being its president.

7. May 24, 1905 Palestine Daily Herald Palestine, TX
Article from Palestine Daily Herald, May 24, 1905

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Article Text

Receivers Chosen. Albany, May 24.-Upon application of Attorney General Mayer, Justice Cochran of the supreme court has appointed Douglass Robinson and the New York Trust company as receivers of the Merchants' Trust company. The bond of Mr. Robinson was fixed at $500,000. Under the law the trust company as receiver is not required to give bond.

8. May 25, 1905 Gainesville Daily Sun Gainesville, FL
Article from Gainesville Daily Sun, May 25, 1905

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Article Text

Receivers Are Appointed. Albany, N. Y., May 24.-Upon the application of Attorney General Mayer, Justice Cochrane, of the supreme eourt here today appointed Douglass Robinson and the New York Trust compsBy as receivers of the Merchants' True company. The bond of Mr. Robinson was fixed at $500,000. Under the law the trust company AD receiver in not required to give a bond. Local Inter eat in the failure of the Merchauts' Trust company is enhanced by the im portant effect which the failure entells upon the affairs of the Hudsion Valley Railway company. No one is Albany is is a position to say how It will at feet the Hudson Valley fullway, whose offices are at Gless Falls, Addison Celvia, of that place, being its president.

9. May 26, 1905 The Ocala Banner Ocala, FL
Article from The Ocala Banner, May 26, 1905

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Article Text

Receivers Are Appointed. Albany, N. Y., May 24.-Upon the application of Attorney General Mayer, Justice Cochrane, of the supreme court here today appointed Douglass Robinson and the New York Trust company as receivers of the Merchants' Trust company. The bond of Mr Robinson was fixed at $500,000. Under the law the trust company as receiver is not required to give a bond. Local interest in the failure of the Merchants' Trust company is enhanced by the important effect which the failure entails upon the affairs of the Hudson Valley Railway company. No one in Albany is in a position to say how it will affect the Hudson Valley railway, whose offices are at Glens Falls, Addison Colvin, of that place, being its president.