New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-06-30
THE MARQUAND COLLATERAL
MR.. SMITH. THE ASSIGNEE. CONFIDENT
THAT SECURITIES ARE GOOD AND
WILL NOT BE SACRIFICED.


An expert accountsst, with a corps of assist
ants was at work yesterday the books of the
banking and brokerage firm of Henry Marquand
& Co. who made assignment on Friday.
Though the examination will be continued day
and night the assignee, Frank Sullivan Smith,
said yesterday that in all probability no schedule
could be filed or statement made for several days
TO come Mr.. Smith positively declined to make
even approximate estimate of the assets and
liabilities of the firm. saying that he not
yet in position to speak on that point.
In regard to a report to the effect that the
liabilities would reach $S.O00O0O, he said that
he did not believe they would come anywhere
near such enormous figure.
"As far the loans Of the firm are concerned"
continued Mr.. Smith, the creditors are protect
ed by the best kind of securities The securities
OF the firm on those accounts are much better
than I expected. They could all be realized on
without loss tomorrow. should the creditors so
desire"
Mr. Smith went on to say that on Friday he
had visited dozen trust companies and firms
holding securities put up by Henry Marquand
& Co. for loans From all OF them he had
ceived assurance that there would be no slaugh-
ter Of those securities
They have all been most kind" he added,
"and have come forward in the most generous
spirit to our assistance. Their cooperation will
simplify matters considerably and make it easier
TO adjust Matters
Does that mean that the firm will be able to
pay dollar for dollar?" Mr. Smith was asked.
II cannot say that" was the answer. While
the securities OF the firm are splendid l do not
yet know how the firms account with the Stock
Exchange stands. We have not come to that
yet"
NJ ddal 4I,o+4
local creditor banks and trust companies which
he had not yet had an opportunity to see and
that he had every expectation that the officers
OF these institutions also would accede to his
request that the Marquand collateral held by
them should not be sacrificed. After he had
made satisfactory arrangements with the cred
itors in this city he would open communication
with the out-of-town creditors. There is said
to be large number of creditors OF this class,
the claims of most of them being for relatively
small amounts: and it is understood that most
Of them residents OF suburban towns in New
Jersey.
When the assignee described as excellent the
securities held by the creditor firms and insti-
tutions collateral for loans OF the firm he
wanted it clearly understood that the securities
held by the Seventh National Bank were not
included.
Frank p. Poor, Junior member of the firm Of
Henry Marquand & Co. arrived at his office
early yesterday morning. and at once began
sisting the assignee and the accountants to clear
up the tangle. He appeared as cheerful as a
man could possibly be under the circumstances.
but declined TO discuss the affairs Of his firm.
When asked about the transfers of real estate
recorded on Friday by his partner. Mr.. Mar
Quand, to the father OF the latter. he declined
TO talk You must see Mr.. MarQuand about
that" he said. Mr.. Smith. in answer to the same
question. said he presumed Mr.. Marquand had
transferred the real estate with the object OF
protecting TO extent the elder Mr.. Mar
Quand against loans made by the latter to the
firm in its time OF stress.
John Byrne president Of the Pittsburg, Shaw
NUT and Northern Railroad Company, gave out
yesterday a statement in part as follows in reply
to criticisms that his extreme conservatism had
prevented the completion of that property and
the listing Of its securities which would have
made them marketable and perhaps averted the
trouble Of Henry Marquand & Co.:
1t is pertinent criticism, and while do not care
particularly for II: It is perhaps proper for to
ultra conservative but long experience has taught
me thst an uniaid RAJ! Is better asset in an
undeveloped property have refused to forward
was undertaken without having the money in hand
Within he limits Of it's cpa af eeG nee ito ef o
its Indebtedness and if in this the criticism
There was a time, relying upon the successful
rangements made for the sale Of the first block OF
bonds, when perhaps would have gone forward
but for the first year delayed through
legal complications in uniting the several proper
ties in the States of New-York and Pennsylvania
but upon the removal Of this difficulty the period
taken by had been carried into the second year
by which time evidence appeared to me which justi
fed conservative policy, the wisdom OF which
willing 10 leave TO the owners Of the property.
Instead of building railroad / turned my
resources and attention 10 the acquisition and de-
Veopment OF the coal field OF the value Of the
property when completed and legally united there
can be question, the opinions OF William Bar
clay Parsons, chief engineer OF the Rapid Transit
road, or underground tunnel. upon whose expert
report the Pennsylvania properties were acquired
and OF Mr.. J. T. Odell, late vce-president of the
Carnegie road, would am satisfied, confirm yet.
under all the circumstances, feel my policy has
been wise, the exemption of the property from
the unfortunate developments during the last week
demonstrated.
The property is now in clean shape for fits owners
TO do with IL what in their Judgment seems best