The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-28
Controlling Interest I'm stock Owned
by Perry :. Heath, and Fletcher
s. Heath Was Vice President.
LIABILITIES AND RESOURCES
NEW YORK PosToFFICE DEPOSITS
WELL PROTECTED BY BONDS.
Rich Men i'm the Directorate and
the Bank May BE Reopened-
Perry Heath Much Surprised.

NEW YORK, June 27-The Seventh Ma
tional Bank Of this city was closed to-day
by direction of Controller of the Currency
Dawes. who appointed Forrest Raynor,
national bank examiner. as temporary re-
ceiver. At the time the examiners
notice was posted William Nelson Crom-
well. the banks attorney, gave out the
following statement: IN justice TO the de-
positors and stockholders of the Seventh
National Bank the banks attorney has
advised the bank to suspend payment
This action was taken after a protracted
conference in the directors room of the
bank. which was participated in by Presi-
dent Edward r. Thomas, ex-President Will
liam III. Kimball. Edwin Gould, Lorenzo
Semple. who Is one of the directors, and
several other members of the board.
After the suspension the following state
uent was made at the clearing house: AT
the clearing house this morning the Seventh
National Eank came in debtor $6i4.1OS.95.
The clearing house committee had been in
session since $3.50 awaiting the results of
the clearing. When IL was found the debit
balance WAS so heavy the committee COM
municated with the officers of the bank
and was informed that the board of di-
would be arrived at within fifteen or TWEEN
ty minutes as to the action of the bank.
In consequence of this statement the clear
ings were held back thirty minutes. At
10:45 a. m. Mr.. William Nelson Cromwell,
Mr. Edwin Gould and Mr.. Thomas, presi-
dent OF the bank, came into the clearing
house and informed the committe that in
view of their debit balance and for other
reasons IL was considered wise that the
bank should temporarily suspend The
clearing house committee thereupon di-
rected the manager of that institution to
eliminate from the clearings all operations
OF the Seventh National Bank
NO OTHER BANKS AFFECTED.
A member of the clearing house commit
tee says that at this mornings meeting the
name of no institution other than the
Seventh National was referred to-
At lI:2O o'clock the officials of the en-
barrassed bank posted the following no
tice: Checks drawn by the Manhattan
State Hospital will 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 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 sus-
pension: From the outlook just now."
said he, II think we're going on At the
same time we cannot tell Just now every
thing is uncertain in the business world,
but believe We will get through" Shortly
before l o'clock Mr.. Poor announced that
his firm was In much better financial posi-
ton thaa IL had been during the morning
This was taken as an inference that the
firm had received assistance but Mr. Poor
would not talk on that subject.
The Seventh National was the custodian
OF the funds Of the New York postoffice
ASSISTANT postmaster Morgan said when
he heard the news of the banks suspen-
sion: The poStoffice fs amply protected
When the account was opened the bank
put up $25O,OOO in government bonds as Sc
curity. The bank has on deposit S2O7 900 OF
postal funds. all Of which is amply secured
by bonds.
In banking circles IL was said that the
Seventh National heavy debit balance to-
DAY was the result OF news OF the banks
embarrassment on Tuesday being tele-
graphed throughout the country Interior
institutions having moneys deposited with
the Seventh drew on the bank and these
drafts all coming in at the same time were
too much for the institution.
Temporary Receiver Raynor's examina- :
ton of the loans of the bank are under
stood to have proved that the collateral
back or them was weak in some instances
The objections OF the bank examiner to
these collateral securities Is said TO have
pension.
President Oakley Thorn, of the North
American Trust Company. which had some
business relations with the Seventh Ma
tional. said his corporation was not in any
way affected by the suspenion OF the Sew
enth National. When asked as to the ef-
feet OF the failure he said: II don't know
anything about any concern except our
own. and that, l can assure you. is all
right. II any one asks reference ] can re-
fer him TO the state bank examiner His
statement will. l sure. be taken. /
know there are rumOrs connecting us with
the trouble Of the Seventh National. but
they are merely rumors. / am happy to
say We are all right
At noon President Tappen. Of the Gallatin
National Bank. and chairman OF tfe clear
Ing house committee. said he did not think
that any firms or banks. even small ones
would fail as result of the Seventh Ma
tsonals suspension
President Alvah owbridge, Of the Ninth
National Bank. reiterated his denial of con-
nection with any OF the financial transac-
tions which inoaired the Seventh National.
Il regret the closing OF the Seventh Ma
tional." he said. Il don't believe any other
bank will be affected. in fact. | am assured
by the clearing house that none will be
The Ninth National Is in excellent shape
and there was absolutely no warrant for
the use OF i's name IN the discussion on
Tuesday"
GUY J. Major formerly president Of the
American Linseed OH Company. is one OF
the directors OF the Seventh National He
said IL would be a couple OF days before IL
would be known whether the bank could
ever resume. mot a depostor will lose a
dollar" said he. Whatever the stockhold-
ers lost they are able 10 lose and will ac-
cept their losses with smiles There was
Guilty. and that was Marquand a. Co. Aside
from this the bank had not over $4,000
worth Of questionable loans. The future
OF the bank depends largely upon the Mar
quand & CO. account being made good"
Another director said that the bank would
be reopened In eight DAYS. Advertisements
fFf Ia n frF