The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-06-28
Result of Bank Suspension
in New York.
FAILURE NO SURPRISE
Wholesale Calling In of Stocks
Loaned to the Firm.
FATAL BLOW TO THEIR CREDIT
Narquand a Co. Had to Buy Very
Heavily in the Open Market
to Cover.

New York, June 2s.-The failure Of Hen
ry Marquand & Co.. bankers and brokers,
the name of which has been connected
with the embarrassment of the Seventh
national bank. was announced on the stock
exchange to-day. The firm made an as
signment to Frank Sullivan Smith. The
assignment was without preferences. No
statement OF assets or liabilities was made
with the assignment. The failure was
without appreciable effect on the stock
market. Frank Sullivan Smith, the as
signee. at once assumed charge. He con-
ferred with the members of the firm and
began a systematic investigation of it's
books and impaired finances. Mr.. Smith
promised 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 would say nothing
about the affairs of the firm. The formal
suspension of the firm created scarcely
ripple of excitement. 1t had been an
ticipated, for the events attendant upon
closing of the Seventh National bank had
let in strong light upon the affairs OF the
firm.
During the first fifteen minutes of trad
ing on the stock exchange the following
transactions were made for the account of
the suspended firm:
Five hundred shares Pennsylvania, 400 Ber-
gen County Gas, 300 American Car & Foun-
dry and 100 shares each of La Clede Gas pre-
ferred, Atchison preferred and Kansas &
Texas preferred. $1,000 par value of Missouri
Pacific 5s Of 1917 and 1000 Iron Mountain
per cent bonds.
Other Banks Unharmed.
At 1890 o'clock Manager Doherer Of the
clearing house said all Of the banks had
cleared as usual and that no further diff
Guilty is anticipated in banking circles
Inquiry at the local Office of the Pitts
burg, Shawnut e. Northern railway
brought out an assurance that there would
be no disastrous consequences as far as
the railroad was concerned.
But did not Marquand & Co. finance the
railroad?" was asked
"Oh, yes" was the reply of the official,
''but they have the bonds and we have the
money"
He added that MarQuand & Co. had
merely handled the bonds Of the road but
did not control 1t.
Henry w. Taft, of the law firm of
Strong & Cadawallader attorneys for the
assignee, made the first statement in behalf
Of the suspended house. He said:
Speaks for the Suspended.
cannot at this time give any figures on
the liabilities and assets OF Marquand & Co.
We have as yet had no time to look over the
situation and it will be several days before
a clear idea will be obtainable. Much de-
pends upon disposal of the securities, and
particularly the inactive securities. held by
the firm. A general view at this time gives
faxO h1t
the great question is as to collateral held by
the house its outstanding loans. 1 believe
the creditors OF the firm will fare very well
unless there is a slaughtering of some of the
firms securities. I cannot say at this time
anything to the resumption of the firm
That will depend upon developments of the
next few days. We will prepare a 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. con-
sisted Of Henry Marquand, who is the son
of Henry G. Marquand, and Frank B. Poor,
son of the former president of the National
Park bank.
Frank Smith. the assignee for Mar
quand Co., is vice president and gen.
eral counsel of the Pittsburg, Shawmut
Northern. Henry. Marquand is first vice
president of the company.
Cause of Embarrassment.
The admitted embarrassment of the firm
in connection with the Seventh National
bank failure resulted in the wholesale
calling in of stocks loaned to them for de-
livery 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 controller of the cur
rency 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. 500, 900 from the Seventh
National bank and which caused the sus-
pension of the bank.
The disturbance in the stock market
caused by the embarrassment and which