Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-06-29
BROKERS FIRM FAILS.
Henry Maryland & Co. Of New York Involved
by Seventh National Smash.

New York, June 2S.-The failure of
the firm of Henry Marquand 4 Co.,
bankers and brokers, the name OF
which has been connected with the
embarrassment of the Seventh Ma
tiOnal Bank, was announced ON the
Stock Exchange today. The firm
made an assignment to Frank Sullivan
Smith. The assignment was without
preference. No statement of assets or
liabilities was made with the assign
ment.
The failure was without appreciahle
effect on the stock market. Mr.. Smith,
the assignee, assumed charge of the
firm shortly after 10 o'clock ana began
4 syste ma tic investigate of the state
of its books and impaired finances. Be
yond saying that Strong & Cadwalder
would act as attorneys for the assignee
he would make no statement. He
promised. however to make public a
statement later in the day. Frank Il.
Poor. a partner. said that Mr.. 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 excitement
attendant upon the closing of the
Seventh National Bank had let in
strong light upon the confidential af-
fairs of the firm.
During the first l. minutes of trad
ing on the Stock Exchange the follow
ing transactions We're made for the ac-
count of the suspended firm: Five hun
dred shares Penn. 900 Bergen County
Gas. 600 Amer lean Car and Foundry
and 100 shares each of Laclede Gas Pfa..
Achison Pfd.. and Kansas X Texas
Pfd. Seven thousand dollars par value
of Missouri Pacific IS of 1917 ana 1000
Iron Mountain ; per cent. bonds were
also dealt in for their account.
At 1850 o'clock Manager Sheroy of
the clearing house said that all of the
banks had cleared as usual and that
no further difficulty was anticipated
in banking circles.
The firm OF Henry Marquand * Co.
consisted Of Henry Marquand. who is
the son of Henry q. Marquand. and
Frank r. Poor, son of the former pres
ident 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 stocks loaned
to them for delivery and they We're
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 disapproval on
securities in which the firm had large
investments. and which figured rs part
Of the collateral in the loan of 81 500, 900
from the seventh National Bank and
which caused the suspension of the
bank.
The disturbance in the stock market
caused by the embarrassment and
which depressed prices, worked to the
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 yes
terday and caused no surprise. The
junior partner admitted Il doubt yes
terday 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.
Frank Sullivan Smith. assignee of
the firm of Marquand Il Co, said, this
afternoon, that he did not think any Of
the creditors would suffer.