New-York tribune., 1901-07-25
BANK BEFORE GRAND JURY
TESTIMONY PRESENTED TO THE FED
ERAL INQUISITORS CONCERNING
THE SEVENTH NATIONAL.

An investigation of the affairs of the wrecked
Seventh National Bank was begun yesterday by
the Federal Grand Jury. in the Postotf1ce Build
ing. General Henry l.. Burnett, the United
States District Attorney. presented evidence to
the jury. and was accompanied by two OF his
assistants. Captain w. S. Ball and E. E. Bald
win. w. NJ. Hardt the expert accountant in
the employ of the government, who was called
to this city from Philadelphia to assist in an ex-
animation of the books of the Seventh National
Bank was said to be the first witness before
the grand jury. Forrest Raynor the bank ex-
aminer. who is temporary receiver of the bank,
was said TO be another witness. William H.
Kimball. the former president of the bank, was
before the grand jury.
Mr. Kimball had long wait in the anteroom
before he called into the presence of the
grand jury. He looked nervous and detected
as he sat leaning his head on his hand He left
the grand jury room about p. M. when an ad-
journment was taken for the day. At that time
he seemed more at ease. but he refused to say
anything about the investigation.
Before the grand jury began its investigation,
a,box containing books and files of documents
labelled Seventh National Bank" was carried
into the grand jury room. Several clerks of the
bank were in the witness room ready to appear
before the grand jury. but they were not called
nett, when seen after the grand jury had dis
continued it's deliberations for the day, said he
would not give any information while the in
vestigation was in progress. The Federal Grand
jury making the investigation is composed of
the Following: Charles F. Wetherbee, foreman;
William @. Smithers. Frank B. Taylor. Robert
w. Speir Charles Thompson Washington Nor
ton, Franklin II. Post, Henry Brewer. Frederick
w. Jackson Edward Du Bois William H. Bald
win, Sigmund Herbert. DAVID D. Wylie. Edward
Nicholson. Benjamin Palmer Samuel Kauf-
mann Philip j. MosenthaI, Morris X. Burger.
Henry H. Hewson. Henry B. Fischer. William
j. clark. Austin Finequa and ]. Milton Doremus.
After the Seventh National Bank closed its
doors in June, it was announced that the fall
ure was due mainly to loans of 81 100000 to
Henry Marquand & Co. and it was said that
checks of the firm had been overcertifed by the
bank. General Burnett recently declared that
II he obtained proof that there had been Illegal
oNercertitcation of checks he would proceed
against the bank officials. He said that a re-
organization of the bank and of the payment Of
creditors in full would not deter him from
prosecuting persons who had violated the stat
utes Of the United States, although a reor-
ganization might make some depOsitors Of the
hank unwilling TO appear as witnesses for the
prosecution.
Inquiries at the office of William Nelson
Cromwell, special counsel Of the Seventh Ma
uonal Bank, 10 when the directors who have
met there daily for the purpose OF considering
plans of reorganization would be ready give
out statement were met yesterday with the
reply. 1t will probably be couple of days yet
before a statement can he given out 1t had
been announced at the Office earlier in the week
that the directors of the bank would meet there
to-day and take action upon the latest demand
of the Controller Of the Currency that they raise
funds sufficient to pay the depositors in full.
There have been reports that plans for reOr-
ganizing the bank had been agreed upon by the
directors. and that the bank would resume bust
ness, but men in a position to know have said
that there would be "A voluntary liQuida tiOn
through which the depositors would be paid in
fun and the stockholders would get back per-
centage of the money they paid for shares.
From Frank Sullivan Smith. the assignee of
Henry MarQuand & Co. statement OF assets
and liabilities viii be forthcoming this week.
Under the law complete schedule should he
filed with the court within thirty days after the
failure II good grounds exist the court may
grant extension of time. Yesterday Mr..
Smith said that new conditions had developed
which would make il necessary for him to pc
tition the court for extension of time. The
court probably will grant our request. and we
shall then try to get the statement ready some
time next week" he said.