Merchants Trust Company (New York, NY)

Episode Information

Episode UID
4754227691265
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
475422769 hash
Start Date
May 23, 1905
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a65fd09f11172a87

Response Measures

None

Events (2)
1. May 23, 1905 Receivership
Newspaper Excerpt
State Bank Examiner Judson took charge of the Merchants' Trust Company this morning. Douglas Robinson ... was appointed receiver of the Merchants' Trust Co.
Source
newspapers
2. May 23, 1905 Suspension
Cause
Government Action
Cause Details
Closed by order of State Superintendent F. D. Kilburn because the company was unable to realize on large loans and market certain securities, prompting suspension to prevent a run.
Newspaper Excerpt
The Merchants' Trust Company ... closed its doors this morning. A notice: The Merchants' Trust Company is closed by order of F. D. Kilburn, state superintendent of banks.
Source
newspapers

Newspaper Articles (25)
1. May 23, 1905 Evening Star Washington, DC
Article from Evening Star, May 23, 1905

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BUSINESS SUSPENDED Merchants' Trust Company of New York Closes Doors. STATEMENT ISSUED UNABLE TO TURN SECURITIES INTO CASH QUICKLY. President Phillips Exonerated From All Blame in the MuddleReceiver Shortly. Special Dispatch to The Star. NEW YORK, May 23.-The Merchants' Trust Company, which has its main office at 346 Broadway, and a branch at 300 West 59th street, closed its dors this morning. Shortly before 10 o'clock, the usual hour for opening the bank, Samuel Untermeyer, counsel for the company, emerged from a meeting of directors and announced that upon his advice the officers had decided to suspend the business. By 10 o'clock there were a dozen persons in line, as usual, waiting to draw out money, and a similar number ready to make deposits, but the tellers' wickets were not open. Bank Examiner A. C. Judson was behind the counter, and about ten minutes after the time the bank should have opened he posted on its doors the following notice: "The Merchants' Trust Company is closed by order of F. D. Kilburn. state superintendent of banks." While Mr. Judson was posting up his notice, Mr. Untermeyer was preparing the following statement, which he issued shortly thereafter: "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 so as to prevent a run on the institution. "Mr. Philips has been president for only a few months. The loans that 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 these loans were made to take them out of the institution. This has not yet been done, but it may be done. The president will probably make a statement later." President Jacob L. Phillips said at the time Mr. Untermeyer issued the foregoing statement that the directors were still in session and that as soon as they concluded their meeting a statement would be issued by the president, probably early in the afternoon. Until the issuance of his statement he said that he did not care to discuss the company's troubles. Receiver Shortly. Bank Examiner Judson said that a receiver would probably be appointed shortly upon application to the attorney general. Mr. Judson added that it would probably be a week or ten days before the state banking department completed its present examination of the books, and that until that time he was not at liberty to discuss the affairs of the bank. As the bank counters transacted no business this morning there were no new deposits accepted and no money paid out. The number of patrons at the trust company's offices this morning, as It closed, was normal. None manifested any anxiety. If anyone present suspected that the company was in serious trouble he did not show it. Not until the news of the company's suspension spread rapidly through the dry goods and the financial districts was there any commotion at 346 Broadway. The Present Officers. The present officers of the Merchants' Trust Company are as follows: President, Jacob L. Phillips; vice president, Cassius M. Wicker; secretary-treasurer, Frederick P. Davis; asistant treasurer, Jacob J. Coyne. Directors: George C. Batcheller, Ronald K. Brown, John Cantlege, George C. Clarke, Frederick P. Davis, Thomas L. Feitner, Charles J. Follmer, Edwin Langdon, John P. Munn, Jacob L. Phillips, James E. Reynolds, Henry Sampson, David S. Walton and Cassius M. Wicker. The company has been in operation about six years. Its statement at the close of business December 31, 1904. showed that It had a capital stock of $500,000, a surplus of $1,000,000, undivided profits of $198.737 and deposits amounting to $3,367,617. It had loans amounting to $2,074,000, cash on hand in banks of $1,481,608, and it had $507,500 worth of New York city bonds and about $980,000 worth of other stocks, bonds and investments. A person familiar with the affairs of the company said today that the principal cause of the suspension was the inability of the company to realize rapidly upon large loans it had made upon bonds of the Hudson Valley railroad and some Rutland property. This financier said: "The Merchants' Trust Company has as collateral $1,200.000 worth of bonds of the Hudson Valley railroad, a system of trolley companies operating between Albany and Saratoga, and it loaned about $700,000 worth upon some Rutland property. Meeting of Directors. "When the directors met this morning about 9:30 o'clock, there was a disposition on the part of those present to make heroic efforts to weather the financial gale which they expected would follow the rumors in circulation about the Merchants' Trust Company ever since late

2. May 23, 1905 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, May 23, 1905

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Merchants' Trust Company Taken in Charge. BY NEW YORK EXAMINER Receiver Appointed at Albany-Rutland Enterprises Are Largely Interested in the Failure. New York, May 23.-State Bank Examiner Judson took charge of the Merchants' Trust company this morning. The institution was closed on the advice of the bank's council who feared a run. It has been the subject of rumors for some time. Yesterday afternoon it was rumored that the bank was in difficulty, and the report was maintained for the slump in the stock market which then occurred. This morning the statement was published that a special meeting of the stockholders had been called to vote on the proposed doubling of the capital stock, and the announcement caused the closing of the doors. It is probable that a receiver will be appointed sometime today.

3. May 23, 1905 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, May 23, 1905

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Merchant Trust Company Closes. New York, May 23.-State Bank Examiner Judson took charge of the Merchants' Trust Company at 10 o'clock this morning. It was stated by Samuel Untermyer, of counsel for the Merchants' Trust Company, soon after (the doors of the institution had been closed, that the trouble would probably prove only temporary. "I think the company will be able to pull through all right," he said. The main office of the company is at 346 Broadway. It has a branch office at 300 west 59th street. On December 23, 1904, the examiners statement showed that the company had $611,053 in cash, and large deposits and loans. The total assets allowed were $4,103,343 and the liabilities were put at $2,959,888. The company was organized in 1899, by Edward Langdon, who was then president of the Central National Bank : Some years ago the prosperity of the company was at low ebb and Helen Gould and other members of the Gould family went to its rescue. Dr. John H. Mumm, who was Jay Gould physician, remains a director. The trust company is trustee of a $4,000,000 consolidated mortgage of the property of the Hudson Valley Railroad Company which is a consolidation of trolley lines around Albany, Troy, Saratoga, and Lake George. The concern has been the subject of rumors in Wall street for some time. It was reported that there had been some bad investments and that as a consequence there were some securities in its strong boxes of little or no value. Douglas Robinson, a brother-in-law of President Roosevelt has been appointed receiver of the Merchants' Trust Co. The law does not require the filing of abond by the trust company. Albany, N. Y., May 23.-Banking Superintendent Kilburn today rendered an opinion that he had come to the conclusion that it is inexpedient for the Merchants' Trust Company of 345 Broadway, New York, to longercontinue business, and he has therefore reported to that effect to Attorney General Mayer for the latter official to take action. Superintendent Kilburn reports "thatin the circumstance a receiver can handle the matter better than the trust company."

4. May 24, 1905 Weekly Arizona Journal-Miner Prescott, AZ
Article from Weekly Arizona Journal-Miner, May 24, 1905

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PRESCOTT, ARIZONA, WEDNESDAY, MAY 24, 1905. IN CE NEW YORK BANK IS B INDICTMENT OF " FORCED TO NEW WOMAN" RE LEADER SUSPEND CHICAGO, May 23-Mrs. Alice B. NEW YORK, May 23-The MerStockham, 70 years old, one of the chants' Trust Company ofthis city was first women in the west to introduce the closed today on an order from the Li "new woman" idea and head of the ltimatum state superintendent of banks because it made loans amounting to $1,250,000, Stockham Publishing Company, 70 upon which it was not able to realize Dearborn street for many years, has Be been indicted by the federal grand sufficient money to pay the depositors jury together with the manager of and save the capital of the company from impairment. her publishing company, Edward B. Upon application of the state atBeckwith. They appeared at the United States District Court clerks' torney-general, Douglas Robinson, a brother-in-law of President Rooseoffice, and each furnished cash bail in the sum of $1000. The woman has been evelt, was appointed as one of the rea public speaker and the advocate of and an attempt is ceivers of the company. veries by non union The company's loans, which had no freedom of thought for years and was ready market value, were about $850,r unions employed instrumental in introducing the sysorder their men to 000 on security to Hudson Valley tem of teaching children to work with on-union material. their hands at the old Cook County Railroad Company, Glenns Falls, N.Y., e is settled in a and nearly $400,000 to the Rutland Normal School some years ago. penters, stonemasons Street Railway Company and the ChitShe has been indicted on a charge organizations are of using the mails and express comtendent Development Company of Rutinvolved. land, Vt. panies for the purpose of circulating wes depositors The trust company literature which, in the opinion of the ng Probable. about $2,200,000. federal officials, is unmailable. Dr. of increased rioting The stockholders are liable for $500,Stockham has been recognized as a ed by the spread of 000. reputable physician in Chicago for lumber districts, The bank examiner said today that years, and some of her books are conhe river front, and a sufficient sum could be realized to sidered authorities on certain subjects. for the fierce mobs Her friends declare that she has done pay the depositors in full. ough it on former within the loat for months

5. May 24, 1905 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, May 24, 1905

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HAS $2, 000,000 IN DEPOSITS MERCHANTS' TRUST COMPANY OF NEW YORK CITY SUSPENDS BUSINESS. New York, May 24.-The doors of the Merchants' Trust company of this city were closed during the day. The Merchants' Trust company had a capital stock of $500,000 and owed depositors about $2,000,000. The company was organized in 1899. In May, 1903, the stock reached a high point, 290 being bid for it. Edwin Hawley 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 that the closing of the institution was due to inability to secure payment of certain large sums on which the collateral consisted of securities of the Hudson Valley Railway company. The company was a participator in the Hudson Valley Railway company syndicate to the extent of $553,500. 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 so as to prevent a run on the institution." Mr. Phillips has been president for only a few months. The loans that 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 towards inducing those under whose administration the loans were made to take them out of the institution. This has not yet been done. Douglas Robinson, a brother-in-law of President Roosevelt, has been ap. pointed receiver of the Merchants' Trust company.

6. May 24, 1905 Evening Journal Wilmington, DE
Article from Evening Journal, May 24, 1905

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NEW YORK BANK HAS SUSPENDED Merchants Trust Company Loaned $1,250,000 Upon Bad Collateral WAS UNABLE TO REALIZE ON IT New York, May 24.-The Merchants' Trust company of this city was closed by the order of the state department of banks because it had made loans amounting to about $1,250,000 upon which it had not been able to realize a sufficient sum to pay depositors and save the capital of the company from impairment. Upon the application of the state attorney general, Douglas Robinson, a brother-in-law of President Roosevelt, was appointed one of the receivers of the company. All the company's loans which had no ready market value were about $850,000 on securities of the Hudson Valley Railway company, of Glens Falls, N. Y., which is a consolidation of trolley lines in the vicinity of Albany, Troy, Saratoga and Lake George, and nearly $400,000 to the Rutland, Vt., Street Railway company and Chittenden Development company, of Rutland. The trust company owes depositors about $2,200,000, and according to the state bank examiner has available assets, other than in the Hudson Railway company and the Rutland companies, of nearly $1,300,000; that it will be necessary to realize $950,000 to pay depositors. The stockholders are liable to the extent of $500,000. With that amount the state bank examiner said that a sufficient sum should certainly be realized to pay depositors in full. The announcement that the trust company was closed followed a meeting of the board of directors. There was a line of clerks of business firms waiting to draw out deposits when the state bank examiner notified them that no further business would be transacted. No excitement ensued, and those who sought admittance later went quietly away when they were informed that the banking office was closed. Assistant State Bank Examiner Judson said: "In round figures there was on deposit in the main bank of the company about $1,300,0000, confined almost exclusively to business men. The 59th street branch had on deposit about $700,000. No other institution is involved in the closing." The state bank examiner said that the banking department discovered discovered two years ago that the trust company held $4,000,000 worth of securities which had no ready market value, besides guaranteeing loans of a Richmond, Va., company to the extent of $750,000, of which it since has been relieved.

7. May 24, 1905 Daily Press Newport News, VA
Article from Daily Press, May 24, 1905

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Condition of Uncertainty and Mystification Exists. bhons SHORTS THE ONLY BUYERS Market in Torpor During Latter Part of noar Day and All Advances Were Yielded Under Very Light Pressure of SellIng-Closing msm Prices. (By Associated Press.) NEW YORK, May 23.- varying fluctuations of the price level on the stock exchange today reflected a condition of uncertainty and of a good deal of mystification of the speculative mind. The mystery continued to center around the source of the effective and imposing selling of yesterday. It became evident very quickly today that neither the impairment of margins or the nervous feeling aroused by yesterday's weakness liad resulted In any considerable accessions of the selling pressure. Public announcement was made almost Immediately of the suspension of the Merchants' Trust Company and professional bear traders followed the invariable rule of buying stocks to COVer short-contracts when the bad news which induced the short selling had come out. When the urgent demand from the shorts had been satisfied the scarcity of any other buying became conspicuous and hesitation and uncertainty drcame the speculative mind again. Immediate news of the day had little tó do with the course of prices. An easier tone in the grain markets gave an admonition that yesterday's crop searcity was probably overdone, and today's weather reports from the grain belt were better. The difficulties of the Merchants' Trust Company had been generally understood for some time and their origin in old standing conditions deprived the incident of any power for violent effect. The ease of money was unaltered but sterling exchange continued to advance. É The market was practically in a torpor during the latter part of the day and all of the day's gains were yielded under very light pressure of selling. The closing was easy and some of the market leaders were below last night. Bonds were irregular. Total sales, par value, $2,980,000. United States bonds were all unchanged on call. Total sales of stock, 1,803,800 shares. Closing prices:

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

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FIRM OWES OVER TWO MILLIONS Doors of Merchants' ust Company of New York City HAVE BEEN CLOSED. It Is Said This Action is Due Owing to Inability to Secure Payment of Loans on Hudson Valley Railway Securities. New York, May 24.-The doors of the Merchants' Trust company of this city have been closed. The company was closed by order of F. D. Kilburn state superintendent of banks, notice to that effect being posted upon the doors. It was said that the closing of the institution was due to the inability to secure the payment of certain loans, on which the latter consisted of securities of the Hudson Valley Railway company. The company was a particaptor 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 upon the street Monday and affected the stock market in late dealings that afternoon. Samuel Untermeyer, counsel for Jacob L. Phillips, president of the Merchants' Trust company, gave out the following statement: "In view of the publicity that has been given to the offorts of the company to increase its cash resources and to the unmarketable character of certain securities which it holds as collateral for large loans, I have advised the president to recommend suspension of business Se as to prevent a run on the institution. Mr. Phillips has been president for only a few months. Loans that crippled the cash resources were not made under his administration and he has no responsibility for thme. 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." Officers of the trust company are as follows: President, Jacob L. Phillips; vice president, Cassius M. Wicker; secretary and treasurer, Frank P. Davis; asssistant secretary and treasurer, Jacob C. Coyne. One of the directors was Dr. John P. Munn, physician to the Gould family. The Merchants' Trust company had a capital stock 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 port of the state banking department showed that the company's book surplus of $1,188,737 had been reduced by the examiners to $1,074,548. While the examiners had increased the value of some securities held by the company, they threw out some others valueless. The company is trustee of $4,000,000 consolidated mortgage on the property

9. May 24, 1905 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, May 24, 1905

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MARKET STOCK FEATURES THEN PRICES RALLY BRISKLY, DROP OFF. Buying-T Investment Considerable Covering by Shorts-Som DisintegratCo.Trust Weather Merchants' evidences ed Crop Report Slightly Unfavorable. of shorts there were and a continuation after While yesterday the market about of covering investment brisk rally slumped buying, again to again. the a opening selling prices. was in evidence is going to do are is Just Bear what the market "the little fellows" will something to that determine. that there not able was said yesterday regarding na- the It an announcement affairs of a satisfactory be likely to be Equitable next week, which sentiment will on this 20,than improve ture Wall general street situation. phase of the firms dealt in less sales slightly exceeding 000 Arbitrage shares purchases in this market, and being scatterthat began ing. The good class of Monday buying was and carried eventhe last yesterday's hour market, the market. but over in into its impress for on stocks, to This tually made was no bidding they were offered. short which covering, to they There condition were taken led, as in the the bulk end, of the adto due was vance was due. attack on prices of the closThe early announcementhants Trust to ing the of expected the doors Stocks, of the news however, came out. began specula- The company. rise as soon this as the was that early some formation was reason had of on Monday impending failure. share list tors of the bank's reaction in the to a material for The in late a great the measure morning buying and a due subsidence of and short account London by net of both the long of position with the 40,000 result to from sudden a buyer shifting sales on to balance seller, of about the interpret by shares. Those who sought of the stock Steel market shares with probable course States the ease watching United perplexetter by being bid up. ocwere much they ran off, recessions which it was which the sharp the late trading more or less of an apparentificial curred From during that there character was to the early the from learned rally. as could hand, be the company suspension was So far details at 'Trust s lending those on meagre of the Merchants instance of reckless similar Exchange to another enterprises the Produce the winter con- of were Trust +inside brought which company facts to were grief that such in the difficulties and to that of the a 1899. vince of every The a special one falled character, bank was an isosomewhat or not Trust the lated There case case. is doubtless doubt as left than to whether the it, have Mer"boom uncomton other ortable small may concerns not, times,' like affecting and the to Leather altogethepare been chants' using too the liberal for similar laws reckon- and deChicago the them, United States directors on their clared ing. The Sugar, and regular Northwest was the Perhaps and Minued contini speculative To an this extent, stocks. the least rise in rise was unon the which governmental reported and cotton cotton. doubtedl crop based bulletining the agricultural wheat growth, though injure it. is in the weekly kind belts, of weatherd that it may not distinctly recorn delay Further and Ohio, from Indiana ported in is the and much planting in as as necessary and states first named and Iowa Nebraska. wheat Winter generally continues of rust although complaints promising, are refrom straw portions and short celved. cona More conditions weather favorable the the have week part latter during rapidwheat spring improve caused is this ly, satisnow crop and making on in factory North where Dakota damaged by and fields some flooding Scattered in are Dathin of the South satiskota. wheat advancink in and heavy though in vallow some Factorical frosts rein will the damage leys well. Washington cover, and is by was Dick This Brothadvice given by & to Co. ers their vesterday: customers is "In the our becomand while ing prices we not go would of may at the time. After sales advise of the few days past violent declines is side the There short dangerous. be furany from rally sharp to be are there seriunless shoudrives and unfaments unforeseen unway." ous ther vorable development in a THE FRIENDLESS FOR

10. May 25, 1905 New-York Tribune New York, NY
Article from New-York Tribune, May 25, 1905

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DELAY SAVES DEPOSITORS so INSISTS MR. KILBURN. Says Merchants' Trust Company Will Pay in Full. Otto T. Bannard, president of the New-York Trust Company. one of the receivers of the Merchants' Trust Company. expressed yesterday the belief that the customers of the falled institution would receive the full amount of their deposits, although probably not for a considerable time. In addition to the assets, in realizing on some of which there might be necessary a good deal of delay. there was the stockholders' 100 per cent liability. amounting to $500,000. The loans on the Hudson Valley Railway and Rutland Street Railway properties are regarded by competent judges as good, although slow. W. B. Ellison, counsel for the Merchants' Trust Company, declined yesterday to make any statement as to the alleged conspiracy among the directors, but it is understood that the situation is about as follows: The Merchants' Trust Company was Interested to the extent of $1,250,000 in the Hudson Valley Railway Company and was in receipt of a standing offer for its interest of $750,000. The directors were. however, convinced that they would within six months be in a position to get $1,300,000 for this collateral. and therefore determined to hold on. The trolley company, it is declared. is in a flourishing condition. and the reason its accounts do not make a better showing is that certain expenditures that might have been charged to capital were met out of income. HUDSON VALLEY COMPANY MAY BE SOLD. It is thought to be not unlikely too, that the Hudson Valley Railway Company, the line of which crosses the Delaware and Hudson's tracks at five different points, may be taken over by that company, just as the New-York Central. the NewHaven and other important steam railways have acquired trolley systems paralleling and competing with them. Two weeks ago, it is alleged. the whole condition of the Merchants' Trust Company was laid before Superintendent Kilburn. with the request for authorization of the increase of the capital stock from $500.000 to $1,000,000. Mr. Kilburn assented. it is said, on condition that the interests of the depositors should be protected. Two of the directors of the trust company are. however, said to have gone into Wall Street last week. trying to raise heavy loans, a step which gave rise to rumors which resulted in the suspension of the company. It is asserted that if the additional capital had been secured there would have been no reason to close the doors of the trust company. The New-York Trust Company yesterday. as receiver, took possession of the Merchants' Trust Company, William V. King. third vice-president of the former company. being assigned to take charge of the main office of the concern. and A. S. Webb. jr., second vice-president. to the branch office at Broadway and 59th-st. A conference of directors of the Merchants' Trust Company was held yesterday morning at the main office, but it was said afterward that no action had been taken. Ex-President Langdon held conferences with some of these directors, but subsequently refused to make any statement. State Bank Examiner Judson was asked yesterday afternoon about a statement made by a lawyer that proceedings might be brought against certain of the directors under a section of the banking act, which provides that no corporation of like kind, or the employes of such corporation, shall loan more than 25 per cent of its capital stock and surplus to any one person or corporation. In reply Mr. Judson said: This section does not apply to any loan made by the Merchants' Trust Company. It refers to loans made without collateral. Moreover, many of the loans of the Merchants' Trust Company were underwritings, to which twenty or thirty names were appended. and in no case has more than the legal sum been loaned to any one person. I do not think that the law has been violated in any way. When asked about the action of the State Superintendent of Banks in allowing the Merchants' Trust Company to continue for two years after he had discovered its condition was unsatisfactory, Mr. Judson said: By SO doing the Superintendent has saved the interests of the depositors. If the trust company had been thrown into the hands of a receiver two years ago the depositors would not have realized 30 cents on the dollar. The securities would have been slaughtered. as securities always are when they are thrown on the market. Now, I think the depositors will realize 100 cents on the dollar. "Has the letter of the law been complied with?" Mr. Judson was asked. cannot criticise Mr. Kilburn. He has been indorsed by three Governors, and that means that he is a pretty good man. He acted solely in the interest of the depositors. and his reason for acting now was simply to prevent a run on the trust company. which was already just beginning when I took charge yesterday.' MR. KILBURN'S STATEMENT Albany, May 24 (Special).-F. D. Kilburn, State Superintendent of Banks, to-day discussed the affairs of the Merchants' Trust Company, and declared that his'firm belief was that the depositors would be paid in full. Mr. Kilburn said: When I discovered the condition of the company about two years ago, I exercised my best judgment, and. instead of closing the company. thought it best to relieve it of securities which, if forced to a sale at that time would in all probability have netted the company less than was finally raised upon them. For example, $2,267.000 invested pronerties was.collected and in ad-

11. May 26, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, May 26, 1905

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BOSTON BANKERS IN HUGE FAILURE Nearly Two Millions Liabilities with Less Than $200,000 Assets. Boston, May 26.-Seventy-one banks and trust companies, most of them in Massachusetts, but several located in various parts of the country, are among the creditors of the banking firm of Burnett, Cummings & Co., this city, which has filed a voluntary petition in bankruptcy, with liabilities placed at $1,714,348. The assets are stated to be uncertain. The creditors have been given to understand that they will not exceed $200,000, if, indeed, they prove to be of any value whatsoever. The bankruptcy petition is the heaviest ever filed in this district. Explains the Cause. J. T. Auebach, counsel for the bankrupt firm, said that the cause of the failure was the building and financing of the Concord & Boston Street Railway company, the Middleboro, Wareham & Buzzards Bay Street Railway company, the Lowell & Boston Street railway and the Bristol County Railway company. These roads were in thinly settled districts and were unable to make suitable connections with roads running to Boston. The four companies were placed in the hands of receivers and their notes became valueless. Auebach said also that the bank's financial crisis was hastened by the buying of the Hampden Trust company of Springfield and of the Taunton Safe Deposit & Trust company of Easton, both of which, unknown to the firm, were in serious financial straits and were placed in the hands of receivers. The refusal of extension of credits then made a continuance of business impossible. Banks as Creditors. The secured creditors number eightyseven and the unsecured eighty-one. There are thirty-two Massachusetts savings banks in the list of creditors and thirteen Massachusetts national banks. One of the heaviest creditors is the Worcester Five Cents Savings bank, with a claim of $80,600, Other banking-institution creditors are the Danvers Savings bank of Danvers for $26,700, the Millbury Savings bank of Millbury for $26,600, and the International Trust company of Boston for $44,495. All these claims are in the secured list. Among the western institutions affected are the Chicago Savings bank, Chicago, $30,390; the State Savings bank, Ann Arbor, Mich., $20,314; the Western Trust & Savings bank, Chicago, $11,896; Fort Dearborn National bank, Chicago, $7,866, and the State Bank of Chicago, Chicago, $10,425. Helen Gould a Loser. New York, May 26.-Chief among the developments from the failure of the Merchants' Trust company is the statement that Miss Helen Gould and her brother Frank were induced by fraudulent practices to invest in the securities of the Virginia Passenger & Power company of Richmond, Va., on the securities of which the trust company made heavy loans, and that they have charged George E. Fisher with taking $2,000,000 to which he is not entitled. Their charge is in answer to his suit for a receivership for the Virginia Passenger & Power company, of which he was a promoter. befine AMILS of Mineral City Bank Closed. Canton, May 26.-The People's Deposit Bank of Mineral City, Ohio, closed. its doors today. The president of the institution says loans of about $50,000 have been made by the bank to W. L. Davis of Canton, whose heavy loans are said to have caused the suspension of the Canton State bank yesterday. Directors of the Mineral City bank say it will resume business in a day or two. Failure in Cincinnati. Cincinnati, May 26.-Holzman & Co, bankers and brokers in the Union Trust building and members of the New York Stock exchange, assigned to. day to Lepman & Levi. Alfred Holzman, a member of the firm, says their assets and liabilities are about equal, at $100,000. He attributes their embarrassment to the rumors concerning the loss of $55,000 from the reserve fund of the German National bank and to the recent run on the Union Trust company bank. Now Another Ohio Bank. Washington, May 26.-The First National Bank of Barberton, Ohio, has been ordered closed by the controller of the currency on the ground that the bank is insolvent. The capital stock is $50,000. snn VIVDL

12. May 26, 1905 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, May 26, 1905

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FRAUD CHARGED BY THE GOULDS Sensational Sequel to the of the MerFailure chants' Trust Company MULCTED OF $2,000,000 Promoter of a Virginia Traction Concern Charged With Crooked Dealings Special Dispatch to The Call. NEW YORK, May 25.-Chief among today's developments from the failure of the Merchants' Trust Company was the statement that Miss Helen Miller Gould and her brother, Frank, had been induced by fraudulent practices to invest in the securities of the Virginia Passenger and Power Company of Richmond, Va., on which the trust company made heavy loans, and that they had charged George Fisher of 37 Wall street with the taking of $2,000,000 to which he was not entitled. Their charge is in answer to his suit for a receivership for the Virginia Passenger and Power Company, of which he was the promoter. Up to the time that he floated this company little or nothing had been heard of him in the world of "high finances." He was in business in Rochester before going to Richmond and taking the traction company in hand. While Fisher was floating the securities he went to Dr. John P. Munn, the Gould family physician and president of the United States Life Insurance Company, and, it is said, through Dr. Munn interested the Goulds in his traction project. Not long afterward Fisher became one of the directors of the Merchants' Trust Company and later a member of its executive committee, which had practical control of the investments of the trust company. It is charged by the Goulds that they were induced to invest securities on the strength of padded monthly reports of the company's earnings and that he bought up hundreds of dollars' worth of street car tickets in Richmond for several months for the purpose of "salting" the receipts of the corporation.

13. May 26, 1905 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, May 26, 1905

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# ten days ago the Paulist Fathers had a large deposit with the company but it had withdrawn its funds because of uneasiness produced by frequent changes of the company directorate. A dispatch from Rutland, Vt., reports David Fox, general manager of the Rutland Street Railway Co., and Chittenden Development Co., which borrowed nearly $400,000 from the Merchants' Trust Co., as saying the failure would have little effect on the undertakings of the corporations. The corporations, he said, were on a paying basis. To defend himself against what he thought might be taken as a criticism, Edwin Hawley, president of the trust, before Jacob L. Phillips was elected issued a statement denying that loans and purchases of stock to which the suspension of the company had been ascribed, were made in his administration. "Those transactions," he said, "were made three years before I had anything to do with the management of the concern." "There was," said Mr. Judson today, "on deposit in the main bank of the company about $1,300,000, confined almost entirely to business men. The Fifty-ninth street branch had on deposit about $59,000 among about one hundred depositors, the majority of whom had only savings accounts. No other institution is involved by the closing-not even to the extent of one penny. The company has in cash about $300,000 on hand. "It is certain that assets will cover all liabilities to the extent of paying the depositors and stockholders in full if the assets can be marketed at par."

14. May 27, 1905 Chicago Eagle Chicago, IL
Article from Chicago Eagle, May 27, 1905

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# Loans Wreck Bank. Its money frittered away on the securities of almost worthless companies organized by its officers, the Merchants' Trust Company passed into the hands of a receiver in New York. The receivers are Douglas Robinson, brother-in-law of President Roosevelt, and the New York Trust Company.

15. June 1, 1905 New-York Tribune New York, NY
Article from New-York Tribune, June 1, 1905

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TO CARE FOR SECURITIES. MERCHANTS' TRUST PLAN. Special Meeting To-morrow-Past and Present Directors Invited. A special meeting, to include both past and present directors of the Merchants' Trust Company. it was learned by The Tribune yesterday, has been called for to-morrow to consider the question of underwriting the Hudson Valley and Rutland securities, on which the company lent upward of $2,000,000. At the meeting, it is said, the directors will be told that these securities cannot at present be disposed of, at least for anything above a fraction of the amount of the loans. Should they agree to "take care" of these securities, the directors, it is said. will be told that an assessment of the stock will be entirely unnecessary. The proposed taking care of the securities will be part of a plan to be formulated at the meeting for the rehabilitation and the reorganization of the company. Every living director who at any time has served on the board has been invited to attend. and a lively session is looked for. The call was sent out yesterday. W. B. Ellison, the counsel of the company, when seen at his home by a Tribune reporter last night, said he would not admit that any call had been sent out, and declined to discuss the matter in any shape or form. Should the plan to be formulated meet with success an application may be made to prevent/the appointment of a permanent receiver. It had been expected that this appointment would be made on Satfurday. Louis E. Spencer, secretary of George E. Fisher. promoter, of No. 37 Wall-st., expressed indignation yesterday at the introduction of his name into the failure of the company by counsel for Frank J. and Helen M. Gould. Mr. Spencer said: I deny that I have made any statement that I have had any dealings with the Merchants' Trust Company. I never borrowed a dollar from that company, nor do I owe the company a dollar. I wish to be left out of this controversy entirely. Said Mr. Fisher: I wish to state that nearly every statement made by the Gould lawyers is a misstatement. Mr. Battie states that $1,000,000 was lost in the Merchants' Trust stock. That is not so. Mr. Gould made $20,000 by the sale of 500 shares of stock, and his net loss, as I understand it. was only $110,000. I never mentioned Miss Helen Gould's name in this case. I bought some bonds from Frank J. Gould, and I gave him a check for $50,000, which is one-half of the money invested. Mr. Gardiner's statement of a loss of $130,000 is incorrect because he fails to subtract therefrom the $20,000 profit made by Mr. Gould. In the syndicate formed in April, 1900. there were 200.000 shares of stock subscribed, 100,000 of the Richmond Passenger Power Company, of which Charles A. Gardiner was the chairman. He received for that $80,000 in consolidated bonds and $200,000 in preferred stocks, and a bonus of $100,000 in common stock. I may say here that my personal attorney was Charles A. Gardiner. Suits have been brought in Virginia against Mr. Gould. and judgments have been secured there against him. He has never been able to win a case in Virginia. George Gordon Battle told the reporter that he never remembered having said that $1,000,000 was lost in the stock. "As to the suits in Virginia," Mr. Battle added, "I am not personally familiar with them. but it is my belief that the judgments went just the other way." The report that a banking house seeks to buy the Hudson Valley securities, to obtain control of the railway company, could not be confirmed from any authoritative source.

16. June 1, 1905 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, June 1, 1905

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# NEWS OF VERMONT More Important Events Grouped for Free Press Readers-Rutland St. Railway and Chittenden Power Inspected. A thorough inspection of the plants and property of the Rutland companies, which were bonded for nearly $400,000 by the wrecked Merchants' Trust company of New York, was made Saturday by Otto T. Bannard, one of the receivers of the defunct concern, and Edward Lauterbach, a prominent New York lawyer. They were accompanied by Senator A. R. Page and John W. Herbert of New York, A. B. Colvin of Glens Falls, Henry Bryant of Boston, an engineer, General Manager David Fox and Treasurer Charles H. West of the Rutland Street Railway company. The party rode over the various lines of the street railway company in a special car. The visitors, who reached Rutland Saturday morning, returned to New York at midnight, but refused to make any statements for publication. General Manager Fox says the visit would have no immediate effect on the street railway or gaslight companies. Work on the Chittenden power house was stopped for an indefinite period by General Manager Fox previous to the coming of the officials, but the result of their visit probably will not be made known for several weeks. # BRIGHAM ACADEMY COMMENCEMENT. The events of commencement week at Brigham Academy in Bakersfield, which are to open Sunday afternoon, June 4, with the baccalureate sermon by the Rev. G. W. Hunt of St. Albans, are as follows: Monday, June 5.-The annual reception of the third year class to the seniors will take place. This is the reception of the year and a good orchestra has been engaged for the occasion. Tuesday evening, June 6. -The class night exercises will be held; and the events of the week will close with the graduating exercises Wednesday evening, June 7. The members of the class are Glennah M. Burnell, Kate L. Chaffee. Grace W. Danforth, Lillian E. Davis. Anna J. Isham. Zoa B. Marcett, Zora A. Marcett, Frances M. Mead, Rena M. Wetherell, Fanny M. Gates. Mabel E. Gates, Myrtie G. Stone, Laura S. Gover. Charles L. Cutting, J. Herman Cutting, Constant C. Hinerth, Delmar D. Durgin, John W. Lunna, Lee W. Sinclair, Arthur H. Soule, Oscar A. Wheelock, G. Edward Hyde, Luther T. Smith. # DYNAMITE EXPLODED IN HIS HAND. Darwin, the 12-year-old son of Mr. and Mrs. George Pelkey of Pittsford had his hand badly lacerated by the explosion of a dynamite cartridge Saturday morning. The boy found the cartridge and lighted it with a match, holding it in his hand. The explosion which followed blew off the thumb and first and second fingers at the first joints. # MOTHER FURNISHED BAIL FOR MAN WHO WHIPPED HER BOY. Joshua Miller, who is employed as a farm hand on the Rufus Spear farm in Highgate, was arrested Saturday on the charge of ill-treating Jude, the 13-year-old-son of Mrs. Rufus Spear. The lad was sent for the cows Friday night and, not returning home, a search was made for him, and he was found at the home of Mrs. William Kane, his sister, who lives at Highgate Springs. He had been pounded until he was badly bruised. Miller was arraigned by Justice of the Peace Melvin E. Barr and State's Attorney W. R. Austin. He was found guilty, but was released on bail of $350 for his appearance at Franklin county court. Bail was furnished by Mrs. Spear, mother of the boy. # BIRD PROTECTION IN VERMONT. The subject of bird protection is growing more and more interesting in Vermont as the benefits are known to agricultural and horticultural pursuits, says a Brattleboro correspondent. New bird laws are the result of the organization of Audubon societies, and conditions opposed to indiscriminate slaughter of birds have been created by the ceaseless efforts of these societies in educating and interesting the children in the humane methods of caring for and protecting insect-eating and song-birds. The report of Mrs. F. K. Barrows of Brattleboro, State secretary of the Vermont Audubon society, to the national association of Audubon societies, shows satisfactory progress along educational lines. Several branch societies have been organized during the year in various sections of the State, the latest of these having been organized in Castleton, Proctor, Essex Junction and Springfield, Williamsville, Putney and Brattleboro having previously organized societies. The State society has sent its traveling libraries into a number of towns during the past year and these have been the means of disseminating much interesting information among the pupils of the public schools, which has reached the homes with good results. In Brattleboro there has been much individual work, which has induced bird study and protection. Birds are welcomed to the home in many ways. Houses are built for their occupancy and suitable food is provided to attract them. Last winter, notwithstanding the extreme cold and great depth of snow, flocks of robins were induced to remain here by regular feeding. Teachers in the public schools have encouraged the placing of shelves outside the school windows for birds, who take their daily luncheons therefrom, to the pleasure and education

17. June 15, 1905 New-York Tribune New York, NY
Article from New-York Tribune, June 15, 1905

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NEW OFFER TO MERCHANTS' TRUST. Syndicate Would Buy Hudson Valley Securities for $623,000. Directors and ex-directors of the failed Merchants' Trust Company yesterday afternoon held another protracted conference in the office of W. B. Ellison, counsel for the company. and adjourned to meet again to-day. It was learned yesterday that a syndicate headed by ex-State Treasurer A. B. Colvin, who is president of the Hudson Valley Railway Company, had offered $623,000 for the securities of that company held by the Merchants' Trust Company. These securities have a par value of $2,577,500. The Merchants' Trust Company has $500,000 in various city bonds and $400,000 in cash, and with those and other resources, it is figured, there would be enough added to the $623,000 from the Colvin syndicate to pay off the depositors in full and have something over for distribution among the shareholders. It is this proposition which the directors are now considering. If it should be accepted, it is said, the shareholders may form a syndicate which would take over the trust company's Rutland securities and hold them for a better market. It was declared by one of the directors yesterday that the depositors were secure in any case, and it was now a question of saving something for the stockholders. A report that the New-York Trust Company, one of the receivers of the Merchants' Trust Company. had made an offer to purchase the securities held by the latter, was authoritatively denied.

18. June 20, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, June 20, 1905

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TO SELL RAILROAD STOCK. Merchants' Trust Company Trying to Get on Its Feet. New York, June .TT directors of the suspended Merchants' Trust Company today voted to accept the offer of $850,000 made by a syndicate for the Hudson Valley Railway Company stock, which is held by the trust company. An official statemnet which was given out after today's meeting says that a it now remains only for the consent of the court to permit the sale to be obtained. It adds that in event of the sale being completed the $850,000 thus obtained added to $300,000 in cash on hand $500,000 in New York city bonds held by the company and $300,000 promised by certain of the directors to be advanced for the purpose will enable the depositors to be paid off immediately. It is the intention of the board of directors after the depositors are paid to apply to the courts for an order directing the directors to turn in the other securities to another committee to be named by the stockholders and approved by the courts. They expect that this committee will be authorized and empowered to merge such remaining securities as they best can and that the stockholders will be finally paid a substantial portion, if not all, of the value on their stock.

19. June 21, 1905 The Forest Republican Tionesta, PA
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MERCHANTS TRUST COMPANY. Sale of Hudson Valley Stock Will En able Directors to Pay Off Depositors at Once. New York, June 20 - -The directors of the suspended Merchants' Trust company have voted to accept the of fer of $850,000 made by a syndicate for the Hudson Valley Railway company stock which is held by the trust company. An official statement which was giv. en out after the meeting says that it now remains only for the consent of the court to permit the sale to be obtained. It adds that in event of the sale be ing completed, the $850,000 thus obtained added to $300,000 in cash on hand, $500,000 in New York city bonds held by the company and $300,000 promised by certain of the directors to be advanced for the purpose, will enable the depositors to be paid off immediately. It is the intention of the board of directors, after the depositors are paid, to apply to the courts for an order directing the receivers to turn over the other securities to a committee to be named by the stockholders and approved by the courts. They expect that this committee will be authorized and empowered to merger such remaining securities as they best can, and that the stockholders will be finally paid a substantial portion if not all of the value of their stock.

20. July 20, 1905 The Providence News Providence, RI
Article from The Providence News, July 20, 1905

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# RECEIVER APPOINTED FOR # RUTLAND STREET RAILWAY Burlington, Vt., July 20. -The appoint- ment of David Fox as received for the Rutland Street Railway company of Rut- land, was made today in this city, by Judge Hoyt T. Wheeler of the United States circuit court. Mr. Fox is general manager of the street railway company. The appointment was made as the result of the petition filed with the court here yesterday by Douglas Robinson of New York, receiver of the Merchants Trust company of New York, asking for the naming of a receiver.

21. August 4, 1905 Camas Prairie Chronicle Cottonwood, ID
Article from Camas Prairie Chronicle, August 4, 1905

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# NEWS OF THE WORLD # SHORT TELEGRAPH ITEMS FROM ALL POINTS OF THE GLOBE. A Review of Happenings In Both Eastern and Western Hemispheres During the Past Week-National, Historical, Political and Personal Events. Secretary Wilson of the department of agriculture says he will not resign. Commander Theo Burgdorff, U. S. N., retired, died recently in Philadelphia from a complication of diseases. United States Senator Lodge was received by King Edward at Buckingham palace Saturday. He was presented by Ambassador Reid. A cablegram from Havana states that Cuba had instituted a rigid quarantine against all gulf ports from Tampa to Sabine river, Texas. The normal school of British Columbia will be located in Vancouver on one of the two blocks recently bought from the Canadian Pacific railroad. The receivers for the bankrupt Merchants' Trust company of New York are directed to pay all depositors of that company 40 per cent of their deposits. Telegraphic advice from Washington, D. C., states that the Italian ambassador to the United States branded "Duke" Joseph Rossi of Spokane an imposter. A strike of the New York house-smiths and bridgemen, which stopped work some weeks ago on the new East river bridge at Blackwell's island, has been called off. General Booth of the Salvation Army has returned to England from his trip to Australia. He is in excellent health. General Booth will soon start on a 2000 mile motor tour. Montreal. A New Foundland pulp mill merger has been effected with a capital of 1,000,000 pounds. Control is held by British capitalists and 1,500,000 acres of pulp land are included in the deal. At a recent meeting of the Phoenix Trades and Labor council, it was decided to have a celebration of Labor day there this year, as usual, it being the sfth annual celebration to be held in Proenix, B. C. The Chinese Reform association of Victoria has sent a lengthy cablegram to the Chinese emperor, in care of the British minister at Pekin, congratulating him upon his birthday and wishing an "early restoration of powerful, loyal China." Reports that a combination has been effected of streetcar building companies, including some of the largest concerns in the United States, are confirmed. It is stated that the consolidation will be capitalized at $54,500,000. Norfolk, Neb.-A row boat carrying Miss Annie McBride and Carroll Powers was swept over the dam in the Elkhorn river and both occupants were drowned. The boat floated into the swift current and became unmanageable. Colonel W. J. Bryan states that he will soon start for a trip around the world. The trip will last from one to two years. He will join Mrs. Bryan in Japan, for which country she has started. It is expected he will travel east. Fernie, B. C.-James Gill, the Cranbrook alleged embezzler, has received his preliminary trial at Cranbrook before Government Agent Armstrong. Only one charge was made, that of stealing $508 from Lord Cobham, the owner of the Cranbrook townsite. The newspapers of India continue to criticize Mr. Broderick's dispatch to the viceroy regarding the change in the position and duties of the commander in chief and the military member of the council in tones strongly antagonistic to the secretary of state. Admiral Kataoka has been honored by a message from the mikado expressing satisfaction with the efficiency of the army which was landed on Sakhalin island despite the unfavorable state of the weather, thereby laying the foundation for the occupation of that island. Mr. E. H. Harriman and party are taking a trip through the Yellowstone park. After a short stay in California he will visit Japan, sailing on August 16. He said his stay in the orient will continue so long as he cares to stay and that he has no definite plan for returning home. The Canadian government has approved the bill of the British Columbia legislature granting to the Sumas Development Co. the land comprised in Sumas lake in consideration of the company building a dyke along the Fraser river to keep the waters from overflowing the Sumas prairie. A crayon drawing on canvas, almost life size, of Carrie Nation, was discovered in the Kansas state historical rooms in ruins. The act had evidently been done during the night. The glass and frame were smashed into bits and the canvas slashed almost beyond recognition.

22. August 6, 1905 Evening Star Washington, DC
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MERCHANTS TRUST STATUS. Statement of Vice President King About Rumors. NEW YORK, August 5.-An answer to questions asked yesterday of the receivers of the Merchants' Trust Company by depositors of that company who organized a protective association was today made by Vice President King of the New York Trust Company, whose company is one of the receivers. "If the depositors will come here," said Mr. King, "we will give them any information we have about the affairs of the Merchants' Trust Company. They have not been near us, but are taking statements that they get elsewhere as truth. There is very little truth in them." About the offer of $2,200,000 for all the assets of the trust company, said to have been made by E. Clarence Jones & Co., and brought up in the depositors' questions, Mr. King said: "I will say that Mr. Jones has not made any offer of any kind to the receivers." He then adds: "As to the one million we are supposed to hold in cash and city bonds, we cannot make a distribution of the city bonds. Some of them are on deposit at Albany, and thus out of our hands. About $125,000 of the cash we have to pay out is on preferred claims, such as moneys held in trust and the like, which must be paid in full before any other money is distributed. When the 40 per cent dividend is paid there will remain $50,000 cash on which to work along. The receivers have thought it best to retain this sum to be used in case any depositor makes a successful dispute in the courts of the amount of his claim and we are ordered to pay more than we have sent him the check for." The questions of the depositors asked whether there was not on hand $1,000,000 in cash alone, besides $100,000 in New York city bonds. and also about $1,000,000 in bids for Hudson Valley railroad and Rutland railroad securities.

23. August 6, 1905 New-York Tribune New York, NY
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WANT NEW RECEIVER. Merchants' Trust Depositors Expected to Ask for Change. It is expected that at a meeting to be held tomorrow night by the members of the Merchants' Trust Company Depositors Protective Association it will be voted to petition the Supreme Court at Albany for the removal of Douglas Robinson and the New-York Trust Company as receivers of the defunct Merchants' Trust Company. There are two branches of the depositors' association, with a membership of 500. They express deep dissatisfaction with the manner in which the affairs of the company are being conducted by the receivers. A committee was appointed. consisting of Isaac Pennamacoor, president: James I. Moore, secretary; Gustave Keese and W. T. Irwin, for the purpose of presenting to Douglas Robinson and Otto T. Bannard, president of the New-York Trust Company, a list of questions. the answers to which they think will be of interest to the depositors. Mr. Robinson and Mr. Bannard, the committee was informed, were out of town, so a letter was addressed to them. asking when they could meet the committee. Some of the questions refer to sales of some of the Merchants' Trust Company's assets for much below their market value. and in some instances for even less than was offered. One instance of which the depositors complain is the sale of four hundred shares of Tefft-Weller Company stock at 56, though 65 had been offered and the stock was quoted on the market at 70. Another cause for complaint was the sale by the receivers of the lease, furniture and fixtures of the uptown branch of the Merchants' Trust Company for $6,200. though $8,000 was offered and a certified check for that amount was tendered by the person who made the offer. These same chattels had been disposed of at a previous sale for $6,100. which sale the depositors had set aside by the Supreme Court. The depositors' committee also asks if it is not true that E. Clarence Jones & Co. bid $2,200,000 for all the assets. Vice-President King of the New-York Trust Company said yesterday regarding the offer of E. Clarence Jones & Co. for the entire assets: "Mr. Jones has not made any offer of any kind to the receivers." Benjamin Franklin, counsel for the depositors' association. said to a Tribune reporter yesterday that with a proper handling of the assets of the Merchants' Trust Company the depositors and other creditors ought to receive dollar for dollar.

24. August 13, 1905 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, August 13, 1905

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said to have been conveyed to Mr. Jones that if he would abandon his position in Seaboard Air Line and come into the Blair-Ryan camp he would find the ma- chinery greased to his satisfaction in the neighborhood of the Merchants Trust company. He decided, however, to stand pat and to not only stick to Mr. Williams but to protect his interests in the Trust company to the very best of his ability. It is shrewdly surmised that persons friendly to the Jones combination are supplying the fuel for the fire which is driving the Blair-Ryan receivers out into the open. From what can be seen it is clear that the receivers have been doing some very clumsy work and by their acts have given the opposition plenty of ammunition for a vigorous cam- paign. If the Merchants Trust company insolvency does not yet yield a first class financial scandal there will be disappoint- ment in Wall street. Once more the columns of the financial pages of the newspapers are full of wise talk about the west and the south "bor- rowing" enormous sums of money from the New York banks with which to move the crops. The south will do considerable borrowing in this center, it is true, but the west will be only drawing down its balances here which are heavier now than ever before, according to most estimates. The rest of the country is becoming more independent of New York year by year and when it draws funds for local or sec- tional use it is merely employing its own cash resources the same as an individual depositor might do. The country at large is in very little need of coming to New York for "help." There is a close communication between the great international banking inter- ests of the old world and the new, and it may be said with full knowledge of the facts that this mighty influence is strongly for a restoration of peace be- tween Russia and Japan. The financial powers of both hemispheres have gone about as far as they care to in extend- ing credit to the battling nations. From the broader viewpoint there is more money in peace than can be made in milking the treasuries of Russia and Japan. The whole world is in a health- ful and satisfactory trade and industrial position. A colossal war however remote the acting scene may be from the great currents of commercial activity, is nev- ertheless a distributing element and the weight of money is against further con- tinuation of the struggle. ### Not So Green, "Your father has reached a green old age, hasn't he?" "It's old age, all right, but if you think it's green just try to sell him a gold brick."

25. August 29, 1905 The Sun New York, NY
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# MERCHANTS' TRUST ASSETS SOLD. Hudson Valley Railway Interests to Take Them—Another Slice for Depositors. GLENS FALLS, N. Y., Aug. 28.—Interest headed by former State Treasurer Addison B. Colvin and John W. Herbert, the president and the general manager and vice-president, respectively, of the Hudson Valley Railroad Company, have agreed to purchase all the unsold assets of the defunct Merchants' Trust Company of New York; which include 11,000 shares of Hudson Valley stock, par value $1,100,000; demand notes of the Hudson Valley Railway, $746,861.70, secured by Hudson Valley bonds, par value $861,000; 275 of the bonds, $275,000; 110 North River Railway bonds, $110,000; 1,100 North River Railway shares, guaranteed by the Hudson Valley Railway, $110,000; supplemental notes given by Hudson Valley Syndicate, $115,500; car trust notes given by same syndicate, $16,500, and accrued interest on above securities, about $50,000. Mr. Colvin declined to name the terms of the purchase inasmuch as the papers have not yet been executed. This will be done at a conference to be held in New York Wednesday. He said that the agreement was mutually satisfactory to all interested. It has, Mr. Colvin said, been approved by Attorney General Mayer, who was present for a part of the time at the conference held in Albany Saturday when the agreement was reached. The receivers of the Merchants' Trust Company in pursuance of the court order will make a payment to depositors on Sept. 15, probably of 25 per cent Depositors have already received 40 per cent.