The sun. (Wilmington, Del.) 1897-19??, 1901-06-28

must furnish the balance due the clear
Ing house. k 9st
'srhe reply came back that the Sew
enth's board was in session and in a
few minutes would arrive at some def
mite conclusion as TO what the bank
would do. The clearing house commit
tee kept back the exchanges for 80
minutes. At the expiration Of that
time we were informed that some Of
the officers of the bank were coming
to the clearing house to communicate
with the committee.
Mr.. Thomas, the president and Mr..
Edwin Gould accompanied the direct.
Ors, who also had with them Mr.. Will
liam Nelson Cromwell as their legal
adviser. They came before the COM
mittec and stated that, In view Of the
large debit balance and other matters
in relation to the banks position, II
had been deemed advisable by the
board to temporarily suspend pay
ments With this announcement the
clearing house committee directed the
manager OF the association to eliminate
from the clearings all transactions with
the Seventh National bank.
AZ the doors Of the bank were closed
the following notice was posted:
This bank Is in The hands Of the comptroller OF
the currency, HORACE FORBEsT RAySoR.
National Bank Examiner.
An immense crowd Immediately gath
cred IN front of the building. which Is
on the southeast corner of Broadway
and John street. In few minutes
there was danger Of a blockade OF
street cars and passenger traffic. 1t
became necessary to call for several
policemen to keep the crowd moving
The following notices We're then
posted
Checks drawn by the Manhattan State hospital
will he paid al the Chase National bank. Drafts
drawn by the st. Lawrence County bank Of Can.
ton, n y, will be paid at the Chase National
bank
Drafts drawn by the First National bank OF
Butte, Mon, on the Seventh National bank will
he paid al the New York bank
Drafts drawn by the Nayesink National bank Of
Red Bank N. j., will DO paid at the Chase Ma
tional bank
The cause Of the failure Of the bank
Is believed to be due to the acceptance
of collnterals which are not quick as
sets. In other words. the bank. under
its new management, sought business
not only with the United States gov
eminent, having been fortunate enough
TO secure the deposit account of the
New York postotiice. which some days
amounts to MS much as $3.50, 900, but 1t
also looked for business among indus
trial corporations, which were not only
new. but also had stocks and other Sc
curities to sell ut the top of boom
period. Customers Of the bank drew
largely upon its resources, and for n
few hours on Monday the bank was in
delay ut the clearing house Friends
Of the bank, notably General Samuel
Thomas. advanced the money required.
about S9S30 the clearing house pay
mrnts were made. and every one hoped
that the trouble was tided over.
1t TRANSFERRED that when General
Thomas advanced the money to help
the bank out Of its embarrassment
he stipulated that his son. Edward
Thomas, rs years old, Il member of the
Stock Exchange firm of Thomas &
Post, should succeed Mr.. Kimball ms
president. The directors had no alter
native but to request Mr. Kimball's res
ignation and elect young Mr.. Thomas,
which was done.
The suspension of the bank was ac-
comGlnied by rImor that the Stock
Exchange firm Of Henry Marquand K
Go. was seriously involved in the affair
and might fail. Frank Il. Poor, the
junior member of the firm of Mar
quand u Co. when informed of the
Seventies suspension said:
We may fail and we may not"
The directors of the Seventh National
bank are: General Samuel Thomas,
capitalist, New York city; Alexander
Mcdonald, vice president Standard Oil
company: Crawford Fairbanks, manu-
facturer and capitalist of Indiana
Frank III. Ray, vice president Continent
nj Tobacco company: Il. w. Jones
president American National bank of
Kansas City; Guy G. Major president
American I.inseed company; General
w. L. Orr, president Citizens National
bank, Piqua, o.; Il. Bissell of New
York: Thomas NJ. Boyd, New York,
president American School Furniture
company: Perry :. Heath. ex-assist-
ant postmaster general: John A. Sull-
van. vice president city Trust and Safe
Deposit company of Philadelphia; H..
| r. Thomas of New York. Fletcher y
Heath of New York. vice president;
William H. Kimball of New York.