The sun., 1901-06-29

reappeared and made the following brief
announcement
The firm OF Henry Marquand 4 Co. has
made an assignment without preferences
TO Frank Sullivan Smith Of 5< Wall street
And so 1t Is over" remarked some one
in the outside ONCE. Mr.. Poor smiled
and returned to his private office. The
early announcement OF the failure made
Il possible for IL TO be announced at the
opening Of the Stock Ex xchange, As soon
ms the failure was officially known there
stocks were bought and sold for the firm
under the rule" At the end Of the day
IL was found that s4.474 shares had been
bought and sold An analysis OF the
transactions showed that the firm was
pretty heavily short OF number OF stand
ard stocks. The following Is the record:
Sales, 5000 st. Louis and Iron Mountain
6 per cent. bonds, 1900 Missouri Pacific
5 per cent trust bonds. 400 Gas and Electric
Company OF Bergen County. 100 Iaclede
(as. ., st. Louis and Southwestern Rail-
road, 500 Pennsylvania Railroad. Total'
la.024
i6 Delaware and Hudson. 800 Console
dated Gas, 500 Pennsylvania Railroad.
800 Brooklyn Rapid Transit 5000 Anal
vamated Copper, 900 American Tobacco.
4s5O United States Steel common, 900
American Car and Foundry common. 500
American Sugar common. 100 Atcflson
preferred. 200 Atchison common, lU0 Iowa
Central preferred, 200 Missouri. Kansas
and Texas preferred. 500 Peoples Gas. 100
Southern Pacific. 200 st. Lout. and South
western 5Op Tennessee Coal and Iron.
1000 Metropolitan Street Railway. 700 ST.
Paul common. 200 Eric common. 400 Man
haitian. Total. 20,450
As,or n, purcb aaa pd aalea had bepn
completed these in a position TO know
said that the firm would come out a little
more than even on the transaction. FOR
some days Marqpand & Co. were selling
short stocks like New York Central. Con-
solidated Gas and Amalgamated Copper:
1t was said yesterday that profit would
be probably returned on the purchases.
since the short sales had been at prices
somewhat in advance OF the general run OF
prices yesterday. The heavy short selling
of the firm was explained yesterday as being
one Of its last desperate Efforts TO get hold
of ready cash On Tuesday the hrm asked
some Of the concerns TO whom 1t had sold
stocks on the previous day to allow the
aales To stand as loans, since the stocks
could not be borrowed for delivery.
That request was the first definite indl-
cation OF the firms true condition. ana IN
almost every case delivery Of the stocks
was insisted upon. They got through
Tuesday by buying stocks to cover the out
standing contracts, and the purchases
were continued on Wednesday and Thurs
day through Henry Content 4 Co. But
IL was all simply game OF robbng Peter
10 paw Paul and could not 60 on forever:
Il was said yesterday that Mr.. Poor realized
this on Thursday afternoon and he told Mr..
NIaruuani that there was no use fighting
any longer and insisted that the only thing
to do was 10 make a general assignment.
Whatever one of a dozen causes may
4 f-. % . ~ "a
the real cause must be traced to the al
tempts Of the firm TO promote new and I'M
certain enterprises. An instance OF this
j. furnished in the firms purchase OF bonds
Of the Plttsburg. Shawmut and Northern
Railroad This road runs through tho
coal regions Of Pennsylvania. IL uncom-
peted and is antagoni2ed by some OF the
greater coal roads. The bonds OF the road
were offered for sale and Marquand Il
Co. bought 100000 of them " par. with
bonus Of IS per cent. in the stock OF the
road What the firm was able to float
these bonds at is not known. but it Is said
that they were not able TO dispose OF many
Of them at the price at which they bought
them.
The firm was also interested in the Hack
ensack Land Company, In the Marquand
Building Company and in the Gas and
Electric Company Of Bergen County: The
HaCkensnCk Land Company was in the
business Of improving HackensaCk. with
the idea OF attracting residence there and
selling villa sites NJ large profits. Not
much is known about the Marquand Build
ing Company, but it Ia supposed that its
particular business was the building OF
villas and less pretentious houses in Hack
ensack. The Gas and Electric Company
OF Bergen County was supposed TO have
valuable franchises and TO control the
lighting privileges over about two hum
dred square miles in Bergen county. Only
short tlmc ago the stock OF this company
was selling at 1917 and iO2, To show
what happens 10 certain kinds Of stock
when forced sales Of IL are necessary, II
need only be mentioned that 900 shares
Of this stock were sold yesterday. under
the rule" for $50 share, and 100 more
shares at s32 share
There was a good deal OF talk through
the Wall Street district yesterday about
certain check-kting processes alleged TO
have been INDUCED in by MarQuand h Co
between tho Seventh National Bank and
the National Park Bank President Dela-
field OF the latter institution was asked
by a Sun man yesterday If he knew anything
about what happened 10 a 10000 check
drawn by Marquand y Co on the Seventh
National Bank. certified by that Institution
and presented n few dayH ago to the National
Park Bank for deposit President Della
field did not care to discuss the subject
for publication, further than TO say that
the check and enough collateral amply to
secure It's payment was still in the posses-
sion Of the National Park Bank From m
officer Of one Of the Clearing House banks.
however. more detailed statement was OBJ
tanned This man said:
A check for s30O,O0O was drawn on the
Seventh National Bank by Mlrquani Il
Co.. certified and deposited In the National
Park Bank Marquand * Co have been
customers Of the National Park Bank for
some time. but their account there has al
ways been small. When so large a check
as the one in question was presented 1t was
questioned. and then the officers Of the
bank decided that they could not accept
It on the mere certilcr Son of the Seventh
National Bank Ii vs. returned TO the
Seventh National with tho statement tina,
the check could not be received unless i,
we're returned with sufficient collateral
of a kind approved by the National Park
with security furnished by the Seventh
National. and. as ! understand IT, the Ma
tonal Park now has the check and th'
security"
1t was said yesterday that the requiring
of security to accompany check sen
for deposit Is certainly an unusual mcthoC
OF procedure and that n further eSpana
ton regarding the S3n0,00O check woulC
have 10 be made before the transaction
would be- pcrfeCtl" clear One well-knowI
banker made this explanation.
The probabilities are that IL Presden
Delahrd hadn't sat down on that $500, ON
check MarWln1 Il Co and possibly IA,
seventh National might have continue,
ON for little longer. ] suspect that thi
IL.