Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1901-06-27
PERRY HEATH'S
BANK SUSPENDS.
Seventh National OF New York Closes
MIR. Heath, Now in Salt Lake, Talks
to the DeSeret News

New York, June 21-The Seventh
national bank was closed at 1915 TO-
day when the following notice was
posted on It's doors
wrhis bank s in the hands of the
comptroller of the currency
FORREST RAYNOR,
National Bank Examiner"
Al the same time William Nelson
cromwell, the banks attorney, gave
cut the following statement;
Sin Justice to the deposltors ami
stockholders Of the Seventh National
hank William Nelson Cromwell, the
banks attorney, has advised the bank
TO suspend payment
This action was taken after a pro-
tracted conference IN the directors
room of the bank which was particle
mated in by the new president, Edward
r. Thomas. eX-President William H.
Iilmball Edwin Gould, Lorenzo Sem
nile who is one of the directors, and
several other members Of the board,
The statement Of the Seventh Ma
tlonal bank for the week ending June
2g 1901 to the clearing house was as
follows: Capital, sS76,6Oo; net profits,
1894 400; loans, A4O7 100; specie, $751;
ZOO. legal tender, s777,7OO deposits So
~. 400; per centage Of reserve 20 40,
After the suspension Of the bank the
following statement was made at the
clearing house
DEBTOR FOR s64l 1885,
AT the clearing house this morning
the Seventh National bank came In
debtor 1914 1886. The clearing house
committee has been In session since
$3.50 awaiting the results Of the clear
ing. When It was found the debit
balance was so heavy the committee
communicated with the officers OF the
bank and was informed that the board
Of directors was I'm session, and that
q decision would be arrived at within
fifteen or twenty minutes as 70 the ac-
ton OF the bank. In consequence OF
this statement, the clearings were held
back thirty minutes. At l0:45 "A, m.
Mr. Nelson Cromwell Mr.. Edwin
Gould and Mr.. Thomas, president OF
the bank came into the clearing house
and informed the committee that in
view OF their heavy debit balance and
for other reasons II was considered
wise that the bank should temporarily
suspend The clearing house commit
tee thereupon directed the manager Of
that institution to eliminate from the
cearngs all operations of the Seventh
National bank
A member Of the clearing house COM
mlttee says that at this mornings
meeting the name Of no institution 9TH
er than the Seventh National bank was
referred TO.
The Seventh National bank was the
custodian o! the funds Of the New
York postoftice. Assistant Postmaster
Morgan said
THE post office Is amply protected,
When the account was openedthe bank
put up $3.50 900 in government bonds as
security. The present state of the post
Offices account with the bank / do not
know, but ! am investigating It,"
At l1:20 o'clock the officials Of the
embarrassed bank posted the following
notice:
Checks drawn by the Manhattan
state hospital viii be paid at the Chase
National bank. Drafts drawn by the
St. Lawrence County bank, Canton n.
Y, will be paid at the Chase National
bank
Among the institutions having close
business relations with the Seventh
National was the stock brokerage firm
Of MarQuand & Co. Frank b. Poor, Of
the firm, made the following statement
after the banks suspension.
From the outlook just now | think
We are going on, AT the same time we
cannot tell Just now everything is I'M
certain In the business world, but i be-
leye we will get through"
The Seventh National bank was orig
iually the old Seventh Ward bank and
was established In 1893. For long
time control Of the institution was held
by John A. Mcinerny, a southerner, who
was president OF the bank. In May
1898, First Assistant Postmaster Perry
8 Heath practically acquired a control
ling interest IN the stock Of the Seventh
and on July VIM. II. Kimball resigned
rs national bank examiner TO become
vice president Of the Seventh several
changes in the directorate being made
at the same time. Josiah Quincy, OF
Boston, was one Of the directors elected
then.
on August 2. 1899, Mr. McAnerny, re-
signed the presidency and Vice Presl-
dent Kimball was chosen In his stead,
Fletcher S. Heath was elected vice
president.
The officers and directors are as fol-
lows: +. r. Thomas, president Fetch
or 5. Heath, vice president; George w.
Adams, cashier. Direttors-George w.
Adams, Eugene Bissell Thomas NJ.
Boyd Fletcher $. Heath, Perry $.
Heath Erskine Hewitt, VIM. II. Kim
ball, Alexander Mcdonald, Guy @,
Major, VIM. r. Orr. Josiah Quincy,
Frank II. Raney John A. sullivan, w.
II. Taylor, Samuel Thomas.
ONLY A RIPPLE ON WALL STREET.
Later It was learned from an au
source that the bank has
on deposit S2O7. 900 OF postal funds, all
Of which is amply secured by bonds