New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-06-30
NO WARRANT FOR KIMBALL
SHIELDS DECLINES TO ISSUE ONE IN
SEVENTH NATIONAL CASE.
WILLIAM NELSON CROMWELL. SPECIAL
COUNSEL, TALKS OF THE AFFAIRS
OF THE FAILED INSTITUTION


made by him yesterday afternoon. Mr.. Crom-
well was asked first, IN behalf OF President E r.
Thomas and Edwin Gould, what was the status
OF the moneys which they had advanced to the
Seventh National. in view of the rumors which
had been CIRCULATED regarding this TRANSACTION.
Mr.. Cromwell answered that If it were not for
these misconceptions he would decline TO answer
the question, but that, in justice to Messrs.
Thomas and Gould, he considered it his duty to
say that Mr.. Thomas had previous relation
TO the bank. either as stockholder, director or
officer, although his father occupied that rela-
ton; and that Mr. Gould had no interest. even
IN the remotest degree. in the bank; but that
both were actuated by feelings of high order,
and upon the assurance that 81 100000 would
entirely meet the situation and protect all the
depositors Messrs. Thomas and Gould purchased
for cash an equal amount OF the assets of the
bank, and paid in the cash. This was upon the
special assurance that Messrs Henry MarQuand
& Co. would on Thursday morning at 10 O'Clock
pay up their overdraft This promise not being
fulfilled, Mr.. Cromwell took the responsibility,
as special counsel, of advising that the bank
not justified in receiving the deposits of the
INNOCENT public, and that it was the duty of the
board TO suspend operations until equal and
exact justice could be accorded to ALL regardless
of all previous transactions or history of the
bank. which il was not the duty Of the new
administration either to explain or justify.
Under these circumstances. Mr.. Cromwell said
IN behalf Of Mr.. Thomas. Mr.. Gould and himself
that while they made no criticism whatever
upon the previous administration they had de-
termined that their duty to the depositors. the
stockholders and the public required that they
should make an Independent and personal ex-
animation OF ali the affairs OF the bank; that
personally they had nothing to conceal. and had
-oFs to
every obligation of the bank if the result OF their
study and investigation warranted it. and in that
event the depositors need have no further con-
Germ
STOCKHOLDERS OFFER.
Mr.. Cromwell added that a full majority of the
stockholders had called him and offered to
pay the full amount of their stock: indeed, had
offered TO place their stock In his hands and
pay up an equal amount in cash
Asked about the report that directors OF the
bank had held at the waldorf-Astoria on Friday
night q conference at which plan OF reorganiza-
ton was drafted, OF its features being that
Mr.. Thomas would not be continued in the presi-
dency, Mr. Cromwell answered that no such con-
ference was held The stories about other banks
desiring TO buy the Seventh National were cor
rect TO the extent that offers had been received
from two banks. but these offers had been de-
ciined. Wall Street believes that one OF the
offers came from the Mercantile National Bank.
and that the other was made by either the Ma
t1onal Hide and Leather Bank or the Chatham
National Bank.
The impression grows stronger in banking cir
cIes that there VIII be assumption of business
by the Seventh National Bank
Mr.. CromweIFs statement, it will be noted
makes it clear that the S9S3.0oo furnished by
Mr.. Thomas on Tuesday afternoon for the pur-
. 49, Hall 5ahs, hoN
ance OF equal amount at the Clearing House
was not loan but was payment received by
the bank for securities sold by IL 10 Mr.. Thomas;
and there is the best Of authority for believing
that the $4,000 debit balance OF Wednesday
at the Clearing House paid by means OF q
similar transaction
SHIELDS DECLINES TO ISSUE WARRANT.
United States Commissioner Shields yesterday
had conference with members OF the United
States District Attorneys staff regarding the Is
suance Of warrant for the arrest OF William II.
Kinball, the former president Of the Seventh
National Bank, the charge OF alleged NAL
feasance in Office There were present with the
Commissioner Assistant District Attorneys
Houghton, Ball, Ward and Parsons. General
Henry L. Burnett, the District Attorney was
absent, being out Of town his vacation At
the close Of the conference Commissioner Shields
said that, after exanpination Of the applica-
ton for the order Of arrest, he considered that
there were not sufficient facts set forth in the
papers TO justify the issuance of a warrant It
not shown that Henry c. Rowland. who
swore to the complaint, was interested either as
stakeholder or depositor in the suspended bank.
Nor was there any statement made. save
matter OF general information and belief. rela-
tive TO the management of the bank. In this
opinion the members of the District Attorneys
staff conceded. and the application for the war
rant of arrest denied by Commissioner
Shields
Clarence J. Shearn, OF the firm Of Einstein &
Townsend, counsel for the complainant, who
made the application, said that he would sub
NIT additional papers on Monday He expressed
his belief that the published stories relative to
the failure Of the bank were sufficient grounds
on which 70 base warrant.
You have not sufficient evidence there on
which TO base a civil action. let alone criminal
proceedings" said Mr. Parsons. and in this state
ment the other members OF the District Attor-
ney's staff and Commissioner Shields agreed
Mr.. Shearn suggested that a statement from
President Thomas Of the bank should possess
some weight.
but you present no authoritative statement
from him." remarked Captain Ball.
TO WAIT FOR RURNETTs RETURN.
II was then announced that General Burnett
Duld return 10 the city early this week, and
II IN all probability no definite action would
taken by the government authorities prior
that time Mr.. Shearn and the complainant
the case thereupon left the commissioner
ofIlce.
Lorenzo Semple. who up to the first of the year
was stakeholder Of the Seventh National Bank.
was seen yesterday at his Office. in the Empire
Building. Mr. Senple is counsel of the Seventh
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