New-York tribune., 1901-07-04
THE SEVENTH MAY RESUME
IF EXAMINERS REPORT rs FAVORABLE,
THE BANK TO BE PUT ON SOLID
BASIS-DIRECTORS MEET.

The Board OF Directors of the Seventh Ma
tional Bank. the doors Of which were recently
closed by direction of the Controller or the
Currency, met yesterday at the Office Of William
n. Cromwell, special counsel Of the bank. Perry
s. Heath, formerly First Assistant POSTMASTER
General, who is a director OF the bank, had
come from Washington to be present at the
meeting His brother. Fletcher s. Heath, vice
president of the bank. was also present
No formal statement Of the conclusion reached
was issued after the conference but IT is learned
from high authority that everything now de-
pends on the nature of the report TO be sub
rnitted to the Controller of the Currency by the
national bank examiner who is now investi-
eating the accounts Of the institution. If that
report is favorable, it is declared the bank VIII
resume business, certain capitalists not mere
tofore identified with the institution furnishing
a large part of the S40o0VoO or sopooOo
necessary to put il solid basis One feat
ure OF the plan contemplates the purchase, dol
lar for dollar of the account Of Henry Mar
quand & Co. A large part of the securities
pledged with the bank by this firm as collateral
for loans are at present unmarketable, but it is
believed that they will become marketable ana
valuable If properly handled
Edwin l. Kalish. of the law firm of Lindsay,
Kremer Kalish g. Palmer who has been re-
tained by number of depositors TO begin civil
action against the directors of the bank, said
when seen after the board had adjourned:
The action of the directors plainly indicates that
so a n m eay say tha the by
Nj, Thomas day or two prior TO the sue ot as
the price of purchase for collateral surrendered
% MI am very gaa % the money and
ne should lose it, but he should be consioeIea 60
should share pro ra:a with the other creditors We
had not contemplated any action before Bank EN-
frne. then that viii end the whole matter. and any
suit part would be unnecessary
Captain w S. Ball. Assistant United States Dis
trict Attorney. who yesterday delegated by
General Burnett TO assist National Bank Examiner
Raynor in the examination Of the affairs OF the
Seventh National Bank. spent yesterday morning
in 9 preliminary examination of the books or that
institution He will begin work in earnest to-
morrow and if any wrongdoing is discovered viii
report at once to District Attorney Burnett.
Henry ". Taft counsel for Frank Sullivan
Smith. assignee of Henry Marquand Co, when
asked yesterday afternoon when a statement or
the assets and liabilities OF the firm might be
looked for answered that il could not be made
up until efter National Bank Examiner Raynor had
completed his inquiry into the banks AFFAIRS ana
the assignee had had opportunity TO see certain
checks and securities of the firm now in the BANK
possession. The fact that certain houses In this
transactions with Henry Marquand & Co. might
also some delay in the issuance of state
ment.
The assignee Mr. Smith. said yesterday that the
of town creditors of the firm had all been COM
muncated with, and all of them. without excep-
ton had promised stand with the larger cred
itors in the city and hold TO their collateral The
out of town creditors of the firm for the most part
hold collateral for loans blocks of the attacked
Mr.. Smith said that far as the loans
were concerned the affairs Of the firm and the Sc
crlrities were much better than he had hoped. He
would not, however. venture any statement OF the
liabilities and assets until he had examined the
Stock Exchange accounts and the accounts Of
customers for whom the firm had acted brokers
on the Exchange. Mr.. Smith pointed to the fact
that bonds of the Pittsburg. Shawmut and North
ern sold yesterday auction for 65 as proof
Of ne strength of this security.