New-York tribune., 1901-07-20
PAY At ONCE, SAYS DAWES
rfuATUM TO DIRECTORS OF THE
SEVENTH NATIONAL.
rs.cTIoNs WITH BOWLING GREEN
-orsT COMPANY IN LAST TWO DAYS
OF BANKS LIFE DECLARED
TO BE INVALID

-.,-,es C. Dawes Controller of the Currency
..ken decided stand in the matter of the
18th National Bank, and has issued a state
10 the effect that the directors must with
n'. .r,o weeks from yesterday provide money
20 which 10 pay in full the claims of all de-
'I,ors Failing that. tie Controller says in
= s,stement. the receiver, Forrest Raynor, has
% directed to institute suit to protect the
-, rights Of the depositors
Tho controller also says that he cannot, on
!. -snorts received from the receiver. deem
valid the transactions made within two
-, Of the banks failure as concerning the
..+s which were transferred 10 the Bowling
r-.sn Trust Company, as trustee. since the
.-,ssctions were made with persons who had
uledge or were charged with having knowl-
Zoe Of the banks situation
rse Controller, Mr.. Raynor and the latters
.n,sel William S. Opdyke. were in confer
.,. the greater portion of yesterday, but il
s,s not until evening that the statement was
ssued Mr.. RaynOr, who gave out the type
r-itten copies of the statement. said it was pre-
,,red by the Controller. 1t is as follows:
The Controller Of the Currency, upon the
,rs received from Forrest Raynor, as re-
ss,vsr Of the Seventh National Bank, cannot
sasm as valid the transactions made by that
80 within two days Of its failure, whereby
,--re norton of its assets were at first trans
,s-red TO the Bowling Green Trust Company, as
.-r,ee 10 secure loans OF about 81 1.20S,00O made
= the bank by or through its directors. to en-
,ble the bank TO pay a portion OF its existing
abilities, and whereby 1t vas afterward at
@rnte6 TO sell about 81 23S.0o0 of the nego-
.sbis naper held by the bank to the makers of
nc said loans of 81 .2oS,000 in order to pay such
kSs. -, ~ - ,++a,,,,+a5
,aSre of 100000 additional of the banks as
sts as security for an alleged guarantee by the
bsnk in the sum of S230opO, OF the collectlon
n the paper embraced in the attempted sale'
rbis transaction resulted in a preferential pay
rpent Of a portion of the banks Liabilities at the
fine when. as ii now appears. the panh was
.-sovent and the transaction seems TO nave
-, made with one or more directors or tne
hark or with persons having knowleose OF
charged with knowledge Of the banks situation
Unless the claims of those VINO advanced Ihis
e ole 0Ol To the bank are placed upon the basis
!, creditors proving claims for dividends the
rights of the depositors seem TO pe mahefialig
affected by these transactions.
rrrlAss therefore. the directors, witnln Two
weeks further time granted TO them Tor the
uurpose. provide money TO pay the claims OF an an
5enositors in full-which action on their part
wauls avoid the necessity and expense OF legal
-rocaadings-the receiver has been directed TO
instit1,te suit 10 protect the legal rights Of the
denositors in this connection.
r. Thomas who was elected president JUST
before the bank failed. responded TO a call on
sbe telephone at his fathers home, in Dobb's
Ferry Mr.. Thomas said that he had no knowl-
sdse of the statement, and had not thoughl
mat one was about TO be issued.
Il do not know whether or not the directors
4 be able 10 meet the requirements Of the Con-
hler." he said, after the statement had been
rad TO him. Certainly they could not antici-
us,s any such decision. There viii be meeting
r the board at IL o'clock on Monday, and no
ioubt. the matter VIII be considered then.
AS concerns the securities transferred to the
Bowling Green Trust Company, 1 am not pre-
pared to say what that institution will do about
them OF course. every possible measure will
be made TO avoid trouble and keep away from
legal difficulties"
Mr.. Thomas said his father could not be
talked with on the subject last night
Mr.. Cuthbert, the expert accountant who is
assisting Frank Sullivan Smith, the assignee,
IL the examination Of the books Of Marquand &
Co., whose failure followed the Seventh Ma
,ional's, said yesterday:
The law requires that a schedule OF assets
and liabilities should be filed with the courts
within thirty days of the time of the failure.
L not, petition must be made for extension Of
tmes We hope TO have our schedule ready in
tine"
The thirty days in the. case Of Marquand &
20 will expire next Friday. The schedule will
nave 10 contain a complete list of creditors, and
full list Of the assets, and will therefore re-
cure great deal Of work. II is understood
nat previous to the filing Of the schedule,
Wiefer statement of the assets and liabilities
VII De Issued. This, however will probably not
y forthcoming before some time next week, al
laough both Mr.. Smith and his assistant. Mr..
ssatn5ert are using their best efforts in this