The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-28
PERRY HEAIH'S BANK
CLOSES IT'S DOORS
Continued From First Page.

| continued From First P0UA
Another director said that the hank
"oulo De re-opened in eight DAYS
advertisements Were printed i'm tba
AFTERNOON papers Offering to buy Seventb
national bank stock The offer vas
MADE by broker who said he was a,.tir,,
for Gen Thomas '7 o'''6
state Superintendent of Banks EiIburn
thls afternoon held a consultation u,ith
H 1aIk Examiner Raynor at the Seventh
| NATIONAL. He said ne had consulted with
! Mr.. Raynor for the purpose of ascerfa{r,
| ing whether any other bank was in,,oI,,,5
anu alSo that he was satisfied this was
not the case.
| ASSETS AND LIABILITIES
Inc following statement of Habnffe,
ana resources was given out tonight at
| the bank: CT
Resources-Loans and discounts 81 500
aoF;St United States bonds to secure cir
S S5i az and deposits, $550OCO premiums,
$z 4f4.l4; stocks and securities S12l go *;
banking house. $4,000; due from hanks
$4oo'S2l.SS; cash and exchanges. SlO5 .2S:
per cent United States redemption
1und. S7,l5O; total s., 165,5S012
l4la6llit1es-Capital stock S5O8COl. sur
Pius, $l5O,OOO; profit and loss account Sg7
lS4; circulation, $4,000 deposits 4i27'-
1862; total, 3d. 5S0.12.
CAUSE OF THE SUSPENSION
William Nelson Cromwell, special coun-
sci for the bank gave out the following
statement from President Thomas and
"Uueu mat he was engaged in preparing
| a plan for reorganization Of the affairs
OF the bank and that it was believed a
satisfactory plan would be presented at
an early date.
Mr.. Edward r. Thomas. president OF
ne me 9eHenth National bank, stated that
the difhculties of the bank were due
solely TO the making by the Dre,,ioIig
!
Messrs Marquand 81 Co., and that the Sc
| curly thereon was of an unmarketabIa
! character, although of considerable in
tLihSlc value. That upon the urgent an
! pllcatlon of the board, ne and his as
| sociate, Mr.. Edwin II. Gould had furnish
eu financial assistance upon adequate Sc
cu1ties and upon the assurance that the
ODllgatlonS of Marquand &, Co would be
maze good by this morning That the
mr. aTm named had, however, failed to full
! nj expectations, and while he and Nh,
! Gould and some one of the directors v1erc
/ Willing to furnish further financial ala
/ II was not deemed by them as Just either
~ Inc ueposltorS, stockholders or the
EbDhc TO invite deposits and credit until
! tue affairs of the bank were again uIaced
upon an absolutely safe basis
mat for this purpose reasonable time
| was necessary and to prevent unfair
! preference or advantages. the board de-
| termined, with the advice of counsel to
suspend operations for the present"
RECEIVER APPOINTED.
WASHINGTON, June 27.-Comptroller
| Dawes today ordered the closing of tbe
seventh National bank, Of New York. and
appointed Forest Raynor, national bank
examiner, temporary receiver.
! Later the comptroller made the follow
! ing statement:
Comptroller Dawes stated that on
tuesday he received word from the ma
tlonal bank examiner that Henry Mar
quand 81 Co. had recently become indebt-
ed In a sum apprOximating 81 500 900 TO the
seventh National bank of New York,
winch was secured by collateral Of 2
doubtful nature. Upon recent on Wednes-
day Of further information regarding the
nature OF the collateral securing this
loan ne sent a telegram to Mr.. r. r.
thomas, president Of the Seventh Ma
| uonal bank, as follows:
have just received Information
from the national bank examiner that
Henry Marquand & Co have loans of
large amount in your bank approximate
ing $l,6O0O00. Unless promptly and sat
lstactorily assured that this loan will be
taken up and cash therefor put into the
bank by Saturday night, June o. [ will
appoint a receiver for the bank Please
convene your board Of directors and an
nounce this to them
In explanation OF the conditions inn
posed comptroller states that while ad-
Vances had been made by the directors
10 the BANK they had been made upon
the credit Of good securities owned bv the
| hank but that no such advances Affect
ed the banks sOlvenCy While the Henry
| Marquand paper remained. 1t was neces-
Sdry, therefore, for him, In the perform
ance Of his duty to PROMPTLY impos,.
these conditions before further with
( draWals of deposits were made TN,
comptroller stated that the Marouand
loan is partially secured and It hOped tbat
the loss to depOsitOrs will not be large
postmaster VanCott, Of New York ha7
been instructed to deposit the money
order funds for the present in the sub
treasury at New York and a new de-
poshtory to take the place of the sus-
pended bank will be determined on bv
the postmaster general in a few DAVIS
The postmaster is not permitted to let
the money order balance IN the bank AZ
coed 100000 and in conformance with the
requirements he forwarded to the treas.
ury last Tuesday $4,000 excess.
WHAT PERRY HEATH SAYS.
SALT LAKE, Utah, June 27.-Former
first assistant postmaster general. Perry
S. Heath, when shown the dispatches an
nouncing the suspension TODAY OF fba
Seventh National bank. of New York,
said the action of the officials was a sur
prise to him
II received two kilograms this morn
ingJ" said Mr.. Heath. Both stated that
the bank was in good condition and had
plenty Of funds on hand. 1 cannot
imagine what kind OF a snarl they have
got into OF course there are outstanding
loans. but so far as I know they are OF
the gilt edged kind and the bank has
had no outside entanglements.
Now the bank has no stock accounts
that 1 know Of. The men In charge
there are among the best and shrewdest
in the financial world and 1 am conf
dent the affairs of the institution Will be
Strengthened quickly. 1 have not the
slightest idea what has brought about
the suspension. 1t Is great surprise
to me-"
MUNCIE. Ind, June N.-Fletcher 8.
Heath, vice president and one OF tho
largest stockholders in the Seventh Ma
tional bank. Of New York. telegra pied
his brothers and parents here today with
reference to the closing OF the bank.
He stated that the action Of the closing
of the bank was decided upon until mat
ters that have arisen unexpectedly have
been adjusted. but that the credit OF the
bank and that of the stockholders viii
not be permanently affected