Waterbury Democrat., 1901-06-28
BROKERS CAUGHT.
We're Pulled Down By Failure
 of New York Bank.
MADE AN ASSIGNMENT TO-DAY.

signee Took Charge of the Accounts l He Promises to Issue Statement After a Thorough Investigation. l New York, June, 2S-The failure of
 the firm of Henry Marquand and Co., bankers and brokers, the name of
 which has been connected with the
 embarrassment of the Seventh Nation
 al bank was announced on the stock
 exchange to-day. The firm made an
 assignment to Frank Sullivan Smith.
 The assignment was without prefer
 ences.. No statement of assets or liz
 abilities was made with the assign ment.
 The failure was without appreciabl8
 effect on the stock market. Mir Smith, the assignee assumed charge of the firm shortly after 10
 o'clock. and began systematic inves-
 tigation of the state of it's books and compared financies. Beyond saying
 that strong and Cadwalader would act
 as attorneys for the assignee he would
 make no statement. He promised,
 however, to make public statement later in the day.
 l ffanks sB. Poor, partner, said that
 MT smith was in charge and that he. could say nothing about the affairs of
 the firm. The formal suspension of the
 firm created scarcely "a ripple of ex- citement. It had been anticipated for
 the vents attendant upon the closing of I the Seventh National bank had let in!
 strong light upon the confidential af-' fairs of thepfirm.
 During the first fifteen minutes of
 trading on the stock exchange the fol-
 lowing transactions were made for the l account of the suspended firm; 800 | shares Pennsylvania, 400 Bergen coun- l ty Gas, 600 American Car and Foundry
 and 100 shares each of Laclede Gas
 preferred Atchinson preferred and
 Kansas and Texas preferred. l Seven thousand dollars par value of
 Missouri Pacific fives of 1917 and 4,OOO
 Iron mountain five per cent. bonds
 were also dealt in for their account. | At 1O.3O o'clock Manager Sherer of | the cdearing house said that all of tho
 banks had cleared as usual and that no further difficulty was anticipated in banking circles.
 Inquiry with the local office of the Pittsburg, Shawmut and Northern | railway, as to the effect of the failure upon the railroad brought out an .as- surance that there would be no dis astrous consequences as far as the rail<
 road was concerned.
 But didn't Marquand & Go finance the railroad? ?" was asked. "Oh yes" was the reply of the official. but they have the bonds and we have l the money"
 He added that Marquand and com
 pany had merely handled the bonds of the road but did not control it. New York, June 2S.-Henry W.
 Taft of the law firm of Strong x Cad- walader, made the first statement in behalf of the suspended house. He said;
 T cannot at this time give any fig ures on the liabilities and assets of Marquand X Co Much depends upon the disposal of the securities, and par- ticularly the inactive securities held by the firm. A general view ait this time gives very favorable impress sion, but naturally the great question is as to collateral held by the house on it's outstanding loans. I believe the { creditors will fare very we'll unless there is a slaughtering of some of the firms securities. cannot say at this time anything as to the resumption of the firm. That will depend upon the developments of the next few days. We will prepare a careful statement of the affairs of the firm, but it will take couple of days to do it."
 John Byrne, president of the Pitts burg, Shawmut and Northern railway was caller at the office of Marquand 6 Go. He conferred with the mem- bers of the house and the legal repre- sentatives of the assignee, but declin- ed to make 8 statement to the press
 The firm of Henry Marquand < Go consisted of Henry MaIduand, wllo is the son of Henry G./hfarquand, and Frank B. Poor, son of the former president of the National Park bank
 The admitted embarrassment of the firm in connection with the Seventh National bank failure resulted in the wholesale calling in of the stocks loan- ed to them for delivery, and they were obliged to buy heavily in the open stock market to cover. At the same time the actions of the clearing house committee and of the controller of the currency put official disapprovaI on securities in which the firm had large investments, and which figured as part of the collateral in the loan of $1, ,6OO,OOO from the Seventh National bank and which caused the suspen- sion of the bank.
 The disturbance in the stock mar ket caused by the embarrassment and which depressed prices, worked to tho firms advantage so far as it showed profits on their contracts, but the blow to their credit deprived them of re- sources to take advantage of these conditions.
 The failure was expected all day yesterday and created no surprise. The junior partner admitted a doubt yesterday as to whether the house could avoid suspension. Yesterdays late rally in the market was attributed to buying for their account to cover short contracts.
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