The sun., 1901-07-10
NEW TANGLE IN BANK
Government officers Make Discoveries
In Seventh Nationals Books.
STATEMENT BY BURNETT.
Declares Reorganixstfon Of the New
York Institution VIII Not Az
feet His Investigation of
Its Anaisa.

New York, July 9. - United States
District Attorney General Burnett who
is representing the government In the
examination of the affairs OF the Sew
enth National bank, has applied to the
department of justice for expert ac-
countants to examine into certain
things that Captain w. s. Ball has dis
covered in the accounts of the bank.
The details of these discoveries Gen.
eral Burnett will not make public.
They were discussed by the general
and Captain Ball, and after the confer
ence the United States district attorney
said:
Captain Ball has called to my atten-
ton some discoveries that he has made
in the books of the Seventh National
bank that warrant closer investigation.
Captain Ban is not an expert account
ant, and in order that the matter may
ne investigated thoroughly ! have ask
cd for the assistance of Mr., Moxey, the
expert accountant The matter war
now. Captain Ball will continue TO
work with Mr.. Raynor until the whole
matter has been investigated, no mat
ter what the board of directors of the
bank determines to do.
Their decision to reorganize the in
Sttution would have no effect at all on
our cndeavor to find out whether there
had been n violation of the United
States statutes in the past management
Of the bank. II we find there was over
ccrtification of checks by the bank Of
licerS contrary to the statutes, we shall
proceed against them whether they
have squared themselves with their
creditors or not The only effect that
settlement could possibly have would
be to make il more difficult for us to
find depositors willing to testify against
the bank officials
Directors Hold q Meeting.
The directors OF the defunct Seventh
National held meeting at the Office
of William Nelson Cromwell, at 40
Wall street, during the day for the pur-
pose of considering further the plan
for reorganiaing the bank that was pro-
posed nj the meeting last Wednesday.
! Those present at this latest meeting
We're President Il. r. Thomas. former
I President William Kimball, General
Orr. Perry Heath, Fletcher Heath
1 james II. Sullivan and Mr. Major. The
interests Of Alexander Mcdonald We're
represented by Mr.. Stahlo.
After the conference had been in ses.
4 I1,tp -,
came ont Of the council room and said
| that while little had been accomplish
ed there was every reason TO believe
4 that the bank would be successfully
reorganized as planned and that il
would resume business at an early date
Mr.. Sullivan said also that he had nc
fear of criminal prosecution of the di
pctors of the bank by the government
4 The plan OF reorganization which was
! discussed AT last Wednesdays meeting
4 included the purchase OF all of tht
claims against the bank with money Il
be contributed by the directors anC
some outside hnanciers and then the re
sumption OF business. This included
the purchase of the Marquand claim
and the settlement dollar for dollar ol
All Of the claims Of the depositofs.
\ director said after the last meetin,
that the plan was not carried ont thei
because the amounts of all of thu
claims We're not at hand. II was sait
by the director that the money 10 carr,
ont this plan, $5,0Oo,OOO, had alread,
been pledged and that there would b,
no trouble.