The Savannah morning news., 1901-06-29
MARQUAND eco. FAIL
AFTER DRAGGING DOWN SEVENTH
NATIONAL BANK,
HAD FINANCED A RAILROAD.
THE ROAD HAS THE MONEY AND
THE BANK HAS THE BONDS,

The Failure Anticipated and Caused
NO Excitement ON the Stock Elk
chanGe-The FIRMS Loans Called
in and Their Stocks Sold Down.
Their 81 100000 Touch on the
seventh National Was Probably
for the Pittsburg, Shawmut and
Northern Railroad.
New York, June 8.-The failure of the
firm of Henry Marquand & Co., bankers
and brokers, the name of which has been
connected with the embarrassment of the
Seventh National Bank, was announced
on the Stock Exchange to-day. The firm
made an assignment to Frank S. Smith.
The assignment was without preferences.
No statement of assets or liabilities was
made with the assignment.
The failure was without appreciable eff
feet on the stock market.
Frank Sullivan Smith, the assignee.
reached the Office of the firm shortly af-
ter 10 o'clock and at once assumed charge.
He conferred with the members OF the
firm and began systematic investigation
of its books and impaired finances.
Frank B. Poor, partner in the house Of
Marquand & Co, said that Mr. Smith was
in charge and that he could say nothing
about the affairs of the firm. The formal
suspension of the firm created scarcely A
ripple of excitement. 1t had been antici-
pated, for the events attendant upon the
closing of the Seventh National Bank had
let in strong light upon the affairs of the
firm.
at 1880 o'clock Manager Scherer of the
clearing house said that all of the
banks had cleared as usual and that no
further difficulty was anticipated in
banking circles
Inquiry at the local Office of the Pitts
burg, Shawmut and Northern Railway
brought out an assurance that there
would be no disastrous consequence as
far as the railroad is concerned.
But didn't Marquand & Co., finance
The railroad?' was asked.
'Oh, yes" was the reply of the Off
ctal, ''but they have the bonds and we
have the money
He added that Marquand & Co., had
merely handled the bonds of the road,
but did not control it.
Their lawyers Statement.
Henry W. Taft of the law firm of
Strong & Cadwallader, attorneys for the
assignee, made the first statement in be-
half of the suspended house. He said:
Il cannot at this time give any figures
or the liabilities and assets of Marquand
& Co. We have yet had no time to
look over the situation, and it will be
several days before a clear idea will be
obtainable. Much depends upon the dis
posal of the securities, and particularly
the inactive securities, held by the firm
A general view at this time gives very
So Ill
great question is as to collateral held by
the house on its outstanding loans be-
lieve the creditors of the firm will fare
very we'll unless there is a Strengthening
of some of the firms securities. cannot
say at this time anything as to the re-
sumption of the firm That will depend
upon the developments of the next few
days. We will prepare a careful statement
as to the affairs of the firm, but I believe
1t VIII take couple of days to do it,
The firm of Henry Marquand & Co.,
consisted Of Henry AIarquand, who is the
son of Henry G. Marquand, and Frank B.
Poor, son of the former president of the
National Park Bank.
The Niger in the WOOdpiIe.
the railroad guide shows that Frank
S. Smith, the assignee Tor EiafquaIsca &
Co, is vice president and general counsel
of the Pittsburg, Shawmut and Northern.
Henry Marquand is hrSt vice president of
the company.
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
for delivery and they were obliged to buy
heavily in the open market to cover At
the same time the actions of the Clear
ing House Committee and of the Con-
troller of the Currency put official dis
approval on securities in which the firm
had large investments and which figures
as part of the collateral in the loan of
81, 100000 from the Seventh National
Bank and which caused the suspension
of the bank. The disturbance in the
stock market caused by the embarrass-
ment, and which depressed prices, work.
ed to the firms advantage, so far as 1t
showed profits on their contracts, but the
blow to their credit deprived them of
resources to take advantage of these con-
ditions.
Receiver Smiths Statement.