The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-06-28

- This bank is IN the hands Of the
controller OF the currency.
FOREST RAYNOR,
National Bank Examiner.
At the same time Wfliam Nelson
Cromwell, the banks attorney, gave out
the following statement. In Justice 10
/ the depOsitors and stockholders of the
seventh National bank William Nelson
I Cromwell, the banks attorney. has ad-
vised the bank to suspend payment"
This action was taken after a pro
tFacted conference in the directors
room Of the bank. which was partiCi-
pated in by the new president, Edward
r. Thomas, eE-President William H
KimbaIl, Edwin Gould, Lorenzo Semple,
who is one OF the directors, and sew
eral other members of the board.
The statement Of the Seventh Ma
I tiOnal bank for the week ending June
p. 1901, to the clearing house was as
follows:
Capital .... 80. ........... IS 376. 500
Net profits ...-.. .......... 2S4,400
Loans . 80. 90. o. ............... 4, 407 100
Specie ...........- 5oI,l 200
Legal tender -.-.-..- 4fl, tUO
Percentage of reserve. $4,000. % 4-1O
After the suspension of the hank the
/ following statement was made at the
Z
this morning the Seventh National
| bank came in debtor S644 ,10S-95- The
clearing house committee has been in
session since $3.50, awaiting the results
} of the clearing. When it was found
/ the debit balance was so heavy, the
committee communicated with the Of
! icers of the bank, and was informed
! that the board Of directors was IN ses-
sion, and that a. decision would be ar
rived at within fifteen or twenty mln~
{ = N the action hank
/, consequence of this statement the
clearings were held back thirty min-
uteS.
cat 1915 ann. Mr.. Nelson Cromwell,
! Mr.. Edwin Gould and Mr. Thomas,
/ president Of the bank came into the
/ clearing house and informed the com
! miUtee that in view Of their heavy
/ debit balance, and for other reasons, 1T
I was considered that the bank should
{ temporarily suspend. The clearing
( house committee thereUpon directed the
/ manager of that institution 10 elimi
nate from the ClearingS all operations
! of the Seventh National bank.
Had PostodIce Funds.
The Seventh National bank was the
/ custodian of the funds of the New
/ York postoffice. Assistant Postmaster
{ Morgan said.
The postofdce is amply protected.
/ When the account was opened the bank
! put up S250, 000ein government bonds as
security. The present state of the post
! Offices account with the bank do not
4 know hut 7 am investigating it..
I At 1920 O'Clock the officials of the
/ embarrassed. bank posted the Following
] notice:
4 Cheeks drawn by the Manhattan
/ state hospital win be paid at the Chase
4 National bank. Drafts drawn by the
! St. Lawrence county. bank, Canton, y,
] Y. Will be paid { the Chase National
4 bank.
] Among the institutions having close
] business relations with tbe seventh Ma
-t-tiOnal was the stock brokerage firm OF
Z Marquand & Co. Frank s. Poor of the
firm made the following statement
! after the banks suspension.
From the outlook just now j thlnk
4 we are going on. AT the same time
we cannot tell. JusC now every thing Is
/ uncertain in the business world, puJ
believe we VIII get through
/ The Seventh National bank was orig
inally the old Seventh ward bank, and
was esta blished in 1888. For lone
+ time control of the institution was held
I by John A. MCAnerny, 5Outherner
who was president Of the bank
In May 1898. First Assistant Post
1 master Perry s. Heath practically &c
: quired a controlling interest in the
stock OF the Seventh National. and or
July 4 William II. I[imbalt resigned as
national bank examiner to become Ylet
president of the seventh, seVeIa
changes in the directorate being made
AT tlIe same time. Josiah Quincy OF
Boston was one OF the directors elected
then.
Omcers of the Bank.
On Aug. 2, 1899 Mr.. McAherny re
signed the presidency. and Vice Presi
dent Kimbau was chosen in his stead
4 Fletcher S Heath was elected vice
are as follows: Il. r. Thomas, presI
dent; Fletcher s Heath, vice preSl
dent; George w. Adams cashier DI
rectors-C4eorge w adams, Eugene
Heath, Perry s. Heath. Erskipe Hewitt
William II. KinbalI Alexander MELON
aid, Guy O. Major William P orr
Josiah Quincy. Frank II. Raney. JOIN
A. Sullivan, w Taylor. sanue
Thomas.
Later it was learned from an author
itatiVe source that the bank has on de
post $207 600 of postal funds an @
which is simply secured BY bonds.
The announcement of the suspension
caused only a ripple in the stock mar
ket. The first selling of stocks Whicl
followed the announcement OF the sus
pension Interrupted a RECOVERY in price
and caused a reaction OF 70 24a point
in some of the principal stocks. Th
Offering Of large sums Of money on tn
exchange at 6~per cent and large buy
ing orders pla0 oct W The market raj
I lied prices and Ter the stock marke
uulIt OuL SAl4tCAA ISL iii LII A4li-A
In banking cil'ciess II was said tina
the Seventh National heavy debit bal
ance today was tn eresutt of the new
{ of the banks embarrassment on Tues
!. day being telegrapl1ed throughout tn
: country Interior institutions haVln
money deposited with the seventh dreA
0n the bank and these drafts, anscom
( ing in at the same time we're too nue.
FLOR the Institution
In Hands Of ComptroIIer.
1 The suspended Institution IS IN tia
{ hands of the comptroller ~ the cur
2 rency. who has appointed Forest Ray
i.nor as Temporary receiver. MIR. Ray
nor's examination II the loans OF tn
bank is understood to have proved tina
) ! the collateral back Of them was wea
lin some Instances. The objection r
: the bank examiner to these eollatere
Il Cromwell % advise the suspension