The Montgomery advertiser., 1901-06-29
BANKERS GO
 TO THE WALL Marquand X Co. Make an
 Assignment. SUSPENSION EXPECTED Scarcely a Ripple Caused in
 Wall Street. The Failure Was Caused by the Elm barrassment of the Seventh Ma
 tional Bank-Rsceiver
 Frank s. Smith Talks.

New York, June 29.-The failure oi the firm of Henry Marquand & Co.,. bankers and brokers. the name oi which has been connected with the em- barrassment of the Seventh National Bank. was announced on the Stock Exchange today. The firm made an assignment to Frank Sullivan Smith The assignment was without prefer ences. No statement of assets or lia- bilities was made with the assignment The failure was without appreciable effect upon the stock market.
 Frank Sullivan Smith. the assignee, reached the office of the firm shortly after ,1e o'clock and at 1 assumed charge. He conferred with the mem- bers of the firm and began a system atic investigation of it's books and im- paired finances.
 Frank B. Poor, partner in the house of Marquand & O., 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 caused scarcely ripple of excitement. It had been anticipated for the events attendant upon the closing of the Sev- enth National Bank had let in strong light upon the affairs of the firm.
 During the first fifteen minutes of trading on the Stock Exchange, the following transactions were made for the account of the suspended firm:
 Five hundred shares of Pennsyl- Vania 500 shares of Bergen County Gas. 300 American Car and Foundry and Il shares each of Laclede Gas, preferred. Atchison preferred and Kan sas and Texas preferred. Seven thou- sand dollar par value of Missouri Pa cific 5s of 1917 and 4.00o Iron Noun tain 5 per cent bonds were also dealt in for their account.
 At 1e:3o o'clock Manager Doherer, of the clearing house. said that all oi the banks had cleared as usual, and that no further difficulty was antici- pated in banking circles.
 Inquiry at the local ofice of the Pittsburg, shawmut and Northern rail road brought an assurance that there would be no disastrous consequence ss far as the railroad was concerned.
 But did not Marquand & Co. finance the railroad?" was asked.
 "Oh, yes" was the reply of the off, cIal. but they have the bonds and we have the money" He added that Marquand & Co.,, had merely handled the bonds of the road. but did not con- trol 1t.
 Henry W. Taft. of the law firm of Strong & Caldwalder. attorneys for in behalf of the suspended house. He said:
 "I cannot at this time give any fig r1res on the liabilities and assets of Marquand & Co. We have as yet had no time to look over the situation and 1t will be several days before a clear idea will be obtainable. Much depends on the disposal of the securities. and particularly the inactive securities. held by the firm.
 "A general view at this time gives a very favorable impression. but natur- ally the great question Is as to col- lateral held by the house on its out standing loans. I believe the creditors of the firm will fare very well unless there is a slaughter of some of the firms securities. I 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 as to the affairs of the firm. but I be- lieve 1t will take couple of days to do it.''
 The firm of Henry Marquand 6 Co. consisted of Henry Marquand, who Is the son of Henry c. Marquand. 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 callLag of stocks loaned them for delivery and they were obliged to buy heavily in the open market. At the same time the actions of the Clear ing House Committee and the Comp troller of the Currency put official dis approval on securities in which the firm had large investments and which fig ured as part of the collateral on the loan of $1. .6O0.000 from the Seventh Ma tional Bank and which caused the sus- pension of the bank.
 The failure was expected all day yes terday and caused no surprise yester- days late rally in the market was at- tributed to buying for their account to cover short contracts.
 Frank s. Smith, assignee of the firm of Marquand & Co.,. said this afternoon that he had been going over the books and lists of security of the firm but that probably several days would elapse before a statement could be given.
 Mir. Smith said the firm had many excellent securities and added that he had called personally upon the creditor interests requesting them not to sacri- flee any of the firms securities which they held as collateral for loans. MT. Smith said under the circumstances he did not think any of the creditors would suffer.