The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-06-28
Principal Debtor of Heath .
Bank Makes Assignment.
Failure Due to Closing Of the
Seventh National.
LITTLE HOPE HELD OUT
Outlook For the Firms Credit
Ors Is Not Promising.
Hamilton, O., Bank Takes Warn
ing and Gusts Heath.

New York. June 2s.-The failure Of
the firm of Henry Marquand & Co,
bankers and brokers, the name of
which has been connected with the EN-
barrassment of the Seventh National
bank, was announced on the stock ex-
change today. The firm made an ass
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 assignee,
reached the Office Of the firm shortly
after 10 o'clock and at once assumed
charge. He conferred with the MEM
bers Of the firm and began a systematic
investigation of its 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 could say
nothing about the affairs of the firm
The formal suspension Of the firm Gre
ated scarcely a ripple of excitement
It had been anticipated, for the events
attendant upon the closing Of the Sew
enth National bank had let IN strong
light upon the affairs of the firm.
During the first fifteen minutes of
trading on the stock exchange the fol-
lowing transactions were made for the
account of the suspended firm. 800
shares Pennsylvania, 400 Bergen County
Gas, 800 American Car and Foundry,
and 100 shares each of LaClede Gas pre-
ferred AtchisOn preferred and Kansas
& Texas preferred. Seven thousand
dollars par value of Missouri Pacific IS
OF 1917 and 200 Iron Mountain per
cent bonds We're also dealt in for their
At 1880 Manager Doherer of the
clearing house said that all of the
banks had cleared as usual and that no
further difficulty was anticipated in
banking circles.
Inquiry at the local Office Of the Pitts
burg ShaWmut and Northern railway
brought out an assurance that there
would be no disastrous consequence as
far as the railroad was concerned
But did not Marquand & Co. finance
the railroad ?" was asked
On. yes. was the reply Of the Ofh-
cial but they have the bonds and we
have the money"
He added that AIarquand & Co. had
merely handled the bonds of the road
put did not control it.
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:
I cannot at this time give any fig
ures on the liabilities and assets of
Marquand & Co We have a Is vet had no
will be several days before a clear idea
viii be obtaina Bile. Much depends upon
the disposal Of the securities and par
tlcularly the inactive securities. held bv
the firm. A general view at this time
gives 9. very favorable impression, but
naturally the great question is as to
collateral held by the house on its out
standing loans. / believe the creditors
OF the firm will fare very well unless
there IS a slaughtering of some of the
Iirm's securities. [ cannot say at this
tine anything as to the resumption of
the firm That viii depend upon the
developments Of the next few DAYS. We
viii prepare 3 careful statement as to
the affairs Of the firm. but I believe it
FFlll 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. Marouand and
frank B. Poor, son of the former presi-
dent Of the National Park bank
The Railroad Guide shows that Frank
= smith, the assignee for Marquand &
Co is vice president and general coun-
sci Of the Pittsburg, Shawmut &
Northern Henry Marquand is first
vice president of the company
The admitted embarrassment of the
nrm IN connection with the Seventh
National bank failure resulted in the
wholesale calling in of stocks loaned to
theln Tor delivery and they were
Obliged to buy heavily in the open mar
ker TO cover At the same time the ac-
lions OF the clearing house committee
orllclal disapprova1 on securities in
Which the firm had large investments,
ana Wnlcn inquired as part of the col
lateral In the loan of $1,000 600 from the
seNehtn National bank, and which
caused the suspension of the hank
The disturbance IN the stock market
caused by the embarrassment and
which depressed prices. worked TO fhe
nrm advantage so far as it showed
profits on their contracts. but the bloyzr
To their credit deprived them ~ 70
sources to take advantage of these con
ditions
The failure was expected all dav YES
terday and caused no surprise Yes
terdays late rally in the market was
attributed to ouy lg for their account
10 cover short contracts
one or the enterprises SWhich have
been nnanced by H. Marquand & Co is
the Gas and Electric company of Ber-
gen county This stock which listed IN
the stock exchange. sold on NTonda~- (,f
tnls week for 1914 compared with the
nigh record price of 1918 on June ia
The first sale this morning of 800 shares
under the rule for the account of t7a
failed firm was at 30 on a cash sale
subsequently it sold at 80 for cash and
At 40 and IS the regular way.
HEATH TURNED OUT.
Hamilton, Ohio, June 2s.-The dirac-
tors OF the Miami Valley National bank
or Hamilton as soon as they heard of
the embarrassment of the Seventh Ma
tional bank Of New York determined to
remove all suspicion against their bank
MIAc4 might arise from the fact thar
Eietcner Heath, vice president of the
seventh bank OF New York was also
49,. elce PRESIDENT Of the Miami Valley Ma
tlonaA Dank and acting president A
meeting was called and a reorea MIA
Ion OF tne bank was effected. whereby
&Aetcnsr Heath was not only ousted