New-York tribune., 1901-07-21
DIRECTORS MAYACT MONDA Y.
SEVENTH NATIONAL OFFICIALS TO CON
SIDER MR.. DAWES'S ORDER-PLAN
OF REORGANIZATION SAID TO
HAVE BEEN ABANDONED.

The directors of the wrecked Seventh National
Bank held no meeting yesterday, and nothing can
be done before tomorrow in the way OF compliance
with the latest requirement Of the Controller OF inc
Currency that securities of the bank which were
transferred to the Bowling Green Trust Company
previous to the failure shall be returned ana thal
E. R. Thomas and Edwin Gould, who advanced W.
20S.O0 secured loan to the bank shall be placed
the basis of creditors proving claims for div-
dends. 1t is expected that the directors VIII meet
tomorrow. but what they will do in response "
the ultimatum of Controller Dawes is uncertain.
E. R. Thomas said yesterday that he had nothing
add his statement of Friday evening. he
has said that the securities of the bank were trans
ferred the loan of 81, ,20S 000 ION the pest
legal advice" and it is expected that he ana MT.
Gould will make fight against being placed among
the unsecured creditors. Mr.. Thomas CONTENDS
that he and Mr.. Gould paid to the bank the
81 aOS 900 for collateral which had been put up oy
Henry Marquand & Co. security for thelr loaii'
hoping to get the bank out of trouble and prevent
its failure. and the bank transferred SooooO Oh ts
( securities to secure Mr.. Thomas and Mr. GouIo
against loss In dsposing of the Marquand securi-
ties Controller Dawes has declared that the trans
action affects the rights of the depositors OF the
bank and that unless the directors provide iuiius
pay all depositors in full within two weeks tne
receiver will institute suit to protect the rights
of the depositors.
AS to Controller Dawes's estimate of the trans
action to Mr.. Thomas and Mr.. Gould against
loss. Edwin L. Kalish, of counsel for creditors or
the bank, said yesterday: This our original
contention. and feel that the Controller of the
Currency will have no legal practical dif1cultes
in sustaining his position. We are not in posi-
ton where we can crticise Mr. Thomas's legal
advice but the general opinion is that Mr. Thomas
was not only ethicaly but also legally wrong in
this matter. We do not mean that Mr. Thomas
should lose his money That would not be right
But hold that Mr.. Thomas is merely an unse-
cured creditor and such should share pro rata
with other creditors of the i'll fated bank
A man whose connections with the bank enable
him to speak with authority said yesterday that
the directors had abandoned ell plans for reorSan-
izing the bank. THE doors of the Seventh Ma
tionaI Bank will be opened for business
again." he added. and the plan adopted by ,t Ine
& probably @ will be one n % If Daes Such
liquidation would involve the payment In run Oh tIe
among them the Heaths. will hail the decision OF
Mr. Dawes with satisfaction. because II the seculi
Trust V Company w are returned to the bank there
will be required smaller assessment on the STOCK
their friends who concerned in the loan prob
ably will make fight TO retain the securities, al(t
their best plan will be TO take over the affairs OF
the bank for liquidation. pay off the creditors IN
full and realize what they on the banks
securities That could be done under the voluntary
liquidation plan, without litigation"
Forrest Raynor. the temporary receiver of the
formation TO give about the banks affairs. VIII
lam H Kimball; the former president of the bank,
said yesterday that he present at the time
Of the transfer of the banks securities. and he
ne dldnt wish to make any comment on the mat
ter He was asked whether Mr.. Raynor. the re-
consideration In tabulating the assets OF the bank.
and he answered that he did not know Mr.. kim
$4,000 between the value of the money advanced
by Messrs. Thomas and Gould. 81 ,2OS,0oO and the
to indemnify them for the amount which is given
at s,23SOOo, and he was asked whether the $4,000
Green Trust Company for securing the advances
IN time OF need He replied that he did not know.