The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1901-07-06
MAR0UAND & co. FAIL.
Liabilities May Possibly Reach $s'-
| OOO,OOO-The Firm Figures In the
| seventh Nationals Troubles.

New York, June 29.-The failure Of
the firm of Henry Marquand IL 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.
Unofficial information was to the
effect that the liabilities will be not
far from $s,O0O,O00, of which amount
81, 200, 900 was said to be due to banks,
trust companies and other creditors,
and 100000 to Henry G. Marquandr
father of the senior member OF the
firm.
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 a system
attic investigation Of its books and
impaired finances. Mr.. Smith prom
ised to make public a statement later
in the day.
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 anticipat ted, for the events
attendant upon the closing of the
Seventh national bank had let (inN
strong light upon the affairs of the
firm. ~
At 1890 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.
Frank S. Smith, assignee of the firm
of Marquand & 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.
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:
1T cannot at this time give any figures or
the liabilities and assets Of Marquard &
over the situation and II will be several
days before clear idea will be obtainable.
Much depends upon the disposal OF the Sc
| curities, and particularly the inactive Sc
curities, held by the firm. A general view
at this time gives 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
| Oh the nrm Will Iare very well unless tnerG
Is slaughtering OF some of the firms Sc
| curities. I cannot say at this time any
| thing as to the resumption OF the firm
That will depend upon the developments
| OF the next few days. We will prepare a
| careful statement as to the affairs of the
| firm, but believe II will take a couple Of
| days to do It,"
The firm of Henry Marquand & Co.
consisted of Henry Marquand, 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
loaned to them for delivery, and they
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 disapprovaI
on securities in which the firm had
large Investments and which figured
as part of the collateral in the lean
OF $1,6oo,000 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.