New-York tribune., 1901-07-13
BANK STOCK ASSESSED.
HOLDERS OF SEVENTH NATIONAL, MUST
PAY 100 PER CENT T-REPORTED
FRICTION AMONG DIRECTORS

Washington, July 12-The Controller of the Cur
rency has levied assessment of 100 per cent on
the SUooO capital stock of the Seventh National
Bank of New-York. Controller Dawes received to-
day the preliminary report from the receiver OF
the bank. The receiver says that his estimate
the value of the assets is. of course only approx
mate He estimates the amount which finally Will
be recovered for the depositors from the assets.
including stockholders assessment. at about W
cents on the dollar. The receiver says that his
estimate of the value of the Marquand collateral
b bank iess 'nan 'ha' made by the directors OF 'ne
Controller Dawes said to-day that all transac-
bank just prior to It's failure are being carefully
isgai rights Of the dspostors YIN be protested in
ans no reference h to any Of the Investigations
now being made into the question Of the existence
are under the charge OF the Department OF JUSTICE
President Thomas OF the Seventh National Bank
when yesterday afternoon in regard 10 this
news from Washington said: II have nothing 20
say In regard what will come to the creditors
That is a matter for Mr.. Raynor. The board Oh
directors is in practically continuous session. con-
siderng plans of reorganization That would In
volve a payment IN full Of the claims Of all credi-
tors We may have something to say In a few
days"
Mr. Raynor was too busily occupied to be seen-
William Nelson Cromwell. special counsel Tor the
bank declined to comment on the decision OF
Controller Dawes. William H. Kimbali FORMER
president of the bank, said: I'VE were prepare0
for that assessment but the statement thal the
creditors will receive only 50 cents on the ooiiar
IS a very conservative estimate OF the assets
Mr. Kimball added In answer to questions ina.
as the Seventh National Bank had only rev si'an
stockholders who would be unable to pay ehe
assessment there would be an exceptionahy sni'
number Of stockholders II any, wiped out
yastorday there was disclosed for the first time
the alleged reason for the delay on the part OF the
directors In agreeing upon plan OIL feh''s
the bank person who protested to know, anu
who is In excellent position for peihs wen N
formed said that 1t not a lack OF funos' OUT d
1aok ~ harmony among the directors. which stood
In the way of reorganization. According u ii'''
two factions had developed among the oreo'ois q
the meetings already held. one 1acuoh. he ~
was headed by Perry S. Heath ana rietchei
Heath and Guy G. Major. another Oh 'he VI, =
the other faction being made up OF T.. ~ hH
,res,dent of the bank; William H Taylor tniru
v,ce-president of the Bowling Green trust oo'n.
pany representing the Gould interests anu o
of town director Mr.. Stable. the represeH'a.'e "
tho interests Of Alexander Mcdonald. according to
,b,s story stands aIoof from both facuohs All
were equally willing to put up any funos he'es'ass q.
for the purpose of getting the bank out oi 'ne
present difficulties, it was said
.Au these men" continued the speaker nave
regulations to look out for. They are ALSO iie u "
money who have no difficulty in raising any i"hoS
o.,ar, Tbere Ia no difficulty any difference
ON that noint According information that mas
come to me- the differences have arisen over INC
or,ro, of the liquidation which probably Will ensue
,r, ,,ahu,ties of the bank above assets amount IN
round figures to 81 O000. The capital STOCK o Sn
10 NJ eIhscribed and otherwise, amounts TO Svo,.
Whether the bank goes into Voiuiits' i,.sr tba
~ into the hands OF a permanent receiver .e
s,ocLholders will be obliged TO cover tnis atousi.. w, .
The voluntary subscription needed VIII mus oe Oh
about $500 OO0 For the party that gains eonr, -
and can axe over the affairs or the oaIh AoI p
noses OF l,oudation subscription 10 thdt aou,i III
heed not necessarily be loss Even II ulS Ga 0Ti
lateral with the bank to great eSte.i, nn"ar
consst OF securities marketable and such PaPSr.
~ properly nursed and boistered up, phin5
II they have some great rnoheyeu ii,eie ~
,bau, can become extremely valuable
Asked which faction was the strohseI eii' - a.
80 MOS, likely TO come of with the victory TINS m
rornant said: 1T hardly De d quesItio... ~, -
strengfh In order go into voluntary nquiuaots ~
% S.rs r,,s, he n unanimous decision on the pa't oi
the directors else the bank Will nave 70 - ~
the hands OF a permanent receiver AS a 10, ne nc
Mcdonald interests unders,a@no no eey weyv creditor
other purpose IN view than TO see every 81 . ~
naid in fnil and the bank steered honoraoy OUT vi
Mr Cromwell when seen in regard 20 'nls n1I, s,a.J
ment said: You may say that MI. - ~ an tSa
news nothing about any lack OF harmony IN the
board Of directors. 49,, l., ... oeca of
president Thomas was found In 'ne othGS 80, .,
wIiliam n Taylor at the Bowling Green Ir"Ss -
Company Mr. Thomas and MI IayIoi w. Meie GO - -
conferences Both denied the story Oh hii1A''' COY
ing there was truth in H. -, r,-.uouar.s
ToIIovinp the announcement OF the SontI Ioilei
sssessuent a bid OF per cent Tor lVU sh'i 1-,oa
the banks stock was made on tne cur ~,
nar,a ~ the bidder was not divuged. but the onei
was said TO be genuine.
No statement has yet come from the o,nn' h ~
Arm OF Henry Marquand Co FRANK . SIirr, tn, T is
assignee assisted by an expert acc0ua'aI' ~ ,hs
Sns,Iy at work on the books. According 10 tiie
iatas; Information given out by him, statement o
asssts and liabilities of the Arm may De ISSUED
early next week.