The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-29
NARQUAND Z GO. FAI
BANKING HOUSE WHOSE PAPER
CAUSED SUSPENSION OF SEW
ENTH NATIONAL BANK
FAILURE HAD BEEN EXPECTED
PRODUCED ONLY A RIPPLE OF Ex-
CITEMENT ON FLOOR OF
STOCK EXCHANGE
FIRMS CONTRACTS ARE CLOSED

NEW YORK, June 2S.-Tne failure of
the firm of Henry MarQuand & Co.,
bankers and brokers' the name of which
has been connected with the embarrass-
ment 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 preferences. No statement of
assets or liabilities was made with the
assignment. The failure was without an
preciable effect on the stock market
Frank Sullivan Smith, the assignee.
reached the office Of the firm shortly
aiter 10 o'clock and at once assumed
charge. He conferred with the mem
bers of the firm and began a systematic
investigation OF it's books and impaired
hnances. Mr. Smith promised to make
puphc statement later in the dav
Frank B. Poor partner in the house of
Marquand & Co, said that Mr.. Smith
was in charge and that he would saw
nothing about the affairs of the firm.
Ihe formal suspension of the firm Great
ed scarcely ripple of excitement. 1t
had been anticipated, for the events at
tenuant upon the closing of the Seventh
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 fol-
lowing transactions were made for the
account fthe suspended firm.
Five hundred shares Pennsylvania, 44O
EetSen County Gas, 400 American Car
and Foundry and 100 shares each of
Iaclede Gas preferred. Atchison nre-
ferred and Kansas & Texas preferred
Seven thousand dollars par value of
missouri Pacific 5s of 1917 and $4,000 Iron
Mountain per cent bonds were also
dealt in for their account.
BANKS ALL CLEAR.
AT 1870 O'CLOCK, Manager Dohrer. of
the clearing house, said all of the banks
had cleared as usual and that no further
difficulty is anticipated in banking cir
cles.
Inquiry at the local office of the Pitts
burg, Shawmut & Northern railway
brought out an assurance mat there
would be no disastrous consequence as
Tar as he railroad was concerned.
But did not Marquand & Co. finance
the railroad?" was asked.
"Oh, yes,' was the reply of the official.
but they nave the bonds and we have
the money!
He added that Marquand & Co., had
merely handled the bonds of the road
and did not control it.
HeRry W. Taft, of the law firm of
StroaR & Cadwallader attorneys for
the assignee, made the first statement
In behalf of the suspended house. He
said:
Il cannot at this time give any figures
on the liabilities and assets of Marquand
& Co. We have as yet had no time to
look over the situation, and it will be sew
eral days before a clear idea will be OBJ
talnable.- Much depends upon the dis
posal of the securities, and particularly
the inactive securities, held by the firm.
n general view at this time gives a very
favorable impression, but naturally the
great question is as to collateral held by
the house on it's outstanding loans
believe the creditors of the firm will
rare We'll unless there is a slaughterIng
of some of the FIRMS securities [ can
not say anything at this time as to the
resumption of the firm That will de-
pend upon the developments of the next
few days. We will prepare a careful
statement as to the affairs of the firm
but believe it will take q couple of days
to Go it."
The firm of Henry Marquand & Co.
consisted of Henry Marquand, who is
the son of Henry G. Marquand, and
Frank b. Poor, son of the former pres
hent Of the National Park bank
The railroad guide shows that Frank
S. Smith, the assignee for Marquand &
Co, is vice president and general coun
sci of the Pittsburg, Shawmut & North
ern Henry Marquand is first vicse pres
ident of the company.
FAILURE WAS EXPECTED.
The admitted embarrassment of the
firm in connection with the Seventh Ma
tional bank failure resulted in the whole
sale calling in of stocks loaned to them
4or delivery, and they were obliged to
buy heavily in the open market to cover.
At the same time the actions of the
clearing house committee and the con-
troller of the currency put official disap-
proVal on securities in which the firm
had large investments and which figured
as part of the collateral in the loan of
81, 100000 from the Seventh National bank
and which causd the suspension of the
bank
The disturbance in the stock market
caused by the embarra assment and which
depressed prices, worked to the firms
advantage so far as it showed profits
on their contracts, but the blow to their
credit deprived them of resources to take
advantage Of these conditions.
he failure was expected all yesterday
and caused no surprise. Yesterdays late
rally in the market was attributed to
buying for their account to cover short
contracts.
One of the enterprises which have been
financed by H Marquand & Co. is the
county. This stock which is listed on
the stock exchange, sold on Monday Of
this week for 1011z, compared with the
high record price of 1015s on June 19. The
first sale thfs morning of 800 shares under
the rule for the account of the failed
firm was at 80 on a cash sale. Subse-
Quently 1t sold at 80 for cash and at 40
and 45 the regular way.
Frank S. Smith, assignee of the firm
IA q said a
that he had been going over the books
and lists of security for the firm. but
that probably several days would elapse
before statement could be given out.
Mr. Smith said the firm had many ex-
cellent securities, and added that he had
called personally upon the creditors in
terested, requesting them not to sacrifice
any of the firms securities which they
held as collateral for loans Mr.. Smith
further said that under the circumstances
he did not think any of the creditors
would suffer.
Start for the North Pole.