The Oskaloosa herald., 1901-07-04
A BIG FIRM ASSIGNS.
Marquand & Co., Brokers, Of New
York City, Go to the Wall.

New York, June 29.-The failure Of
the firm of Henry Marquand g. Co.,
bankers and brokers. the name of
which has been connected with the
embarrassment of the Seventh ma
tional bank, was announced on the
stock exchange Friday. The firm
made an assignment to Frank Sulli-
van Smith The assignment was with
out preferences. No statement of
assets or liabilities was made with the
assignment.
The failure was without appre-
ciable effect on the stock market.
Frank Sullivan Smith, the assignee,
reached the office of the firm shortly
after ten o'clock and at once assumed
charge. He conferred with the mem
bers Of the firm and began system
attic investigation of its books and
impaired finances. Mr.. Smith prom
ised to make public statement later
in the day.
Says Suspension Was Anticipated.
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 ere
ated scarcely ripple of excitement.
1t had been anticipated, for the events
attendants upon the closing of the
Seventh national bank had let in
strong light upon the affairs of the
firm.
No Further Trouble Feared.
At 10:30 the manager of the clear
ing house said that all of the banks
had cleared as usual and that no fur
Their difficulty was anticipated in bank
ing circles.
Inquiry at the local Office of the
Pittsburgh, Shawmut & Northern
railway brought out an assurance that
there would be no disastrous conse-
quence as far as the railroad was con-
cerned.
''But did not Marquand & Co. finance
the railroad?" was asked.
"oh, yes" was the reply of the Of
fetal, "but they have the bonds and
we have the money"
He added that Marquand e. Co. had
merely handled the bonds of the road,
but did not control it.
Creditors Won't Suffer.
Frank S. Smith, assignee of the firm
of Marquand G. Co., said Friday after
noon that he had been going over the
books and lists of security for the firm.
but that probably several days would
elapse before a statement could be
given. Mr.. Smith said the firm had
many excellent securities, and added
that he had called personally upon the
creditor interests requesting them not
to sacrifice any of the firms securities
which they held as collateral for loans.
Mr. Smith further said that under the
circumstances he did not think any of
the creditors would suffer.
Statement of II. w. Taft.
Henry w. Taft, of the law firm of
Strong & Cadwallader, attorneys for
the assignee, made the first statement
in behalf of the suspended house. He
said:
81 cannot at this time give any figures on
the liabilities and assets of Marquand &
Co. We have as yet had TO time to look
over the situation and It will be several
days before clear idea will be obtainable.
curities, and particularly the inactive Sc
curities, held by the firm. A general view
at this time gives a very favorable i'm
preston, but naturally the great question
is as to collateral held by the house on its
outstanding loans. ! believe the creditors
of the firm will fare very well unless there
is a Strengthening of some of the firms Sc
curities. / cannot say at this time any
thing as to the resumption of the firm
That will depend upon the developments
careful statement as to the affairs Of the
firm, but believe it will take couple of
days to do it."
The firm of Henry Marquand & Co.
consisted of Henry 2Larquand, who is
the son of Henry G. Marquand, and
Frank B. Poor, son of the former presi-
dent of the National Park bank.
The railroad guide shows that Frank
S. Smith, the assignee for Marquand
e. Co., is vice president and general
counsel of the Pittsburgh, Shawmut
& Northern. Henry Marquand is first
vice president of the company.
The admitted embarrassment of
the firm in connection with the Sew
enth national bank failure resulted
in the wholesale calling in of stocks
lOdutu ~ tuGh lOE uG4lNGEAs anu lutN
were obliged to buy heavily in the
open market to cover. At the same
time the actions of the clearing house
committee and the comptroller of
the currency put official disapproval
on securities in which the firm had
large investments and which figured
as part of the collateral in the loan
of 81 900, 900 from the Seventh national
bank and which caused the suspension
of the bank.
The disturbance in the stock market
caused by the embarrassment, and
which depressed prices, worked to the
firms advantage so far as it showed
profits on their contracts, but the
blow to their credit deprived them of
resources to take advantage of these
conditions.
The failure was expected all day
Thursday and caused no surprise.
Thursdays late rally in the market
was attributed to buying for their
account to cover short contracts.
Eight Deaths from Heat.
New York, June 29.-New Workers