New-York tribune., 1901-07-01
CAUSE OF THE FAILURE.
ASSIGNEE OF HENRY MARQUAND & co.
EXPLAINS IT.

Frank Sullivan Smith, the assignee of the
banking and brokerage firm of Henry Marquan6
& Co.. who made assignment Friday. said
yesterday afternoon 70 a Tribune reporter that
he thought the primal cause of the failure of the
house was its transactions in industrial stocks.
He further said that he of the opinion that
a statement regarding the exact condition of the
firm would not be ready before Wednesday.
The house" said Mr. Smith. was very
heavy holder of industrials and when the banks
ceased to consider them good collateral the firm
sold its industras at a sacrifice. Industrials
ceased to be popular last year Among these
stocks held by the firm were American Car and
Foundry. Steel and Wire and also Air Power
Continuing. Mr. Smith said 1T is practically
impossible for me to say when a statement re-
garding the exact status Of the firms affairs will
be readw I think It will not be ready before
Wednesday next 1 am not taking anybody's
word for the firms affairs I am going to rely
upon the investigation of the chartered account
ant who is coins the books of the
house. AS to the statements that have been
made that once employed as counsel for
the firm, l wish to say that never was counsel
for the firm and never had a retainer of the
firm. For some years have had a pleasant re-
latonship with Henry Marquand. He is an ad-
mirable man. I have well margined account
with the firm. which did not withdraw"
REAL ESTATE TRANSFERS.
do you know the details OF the real estate
transfers in which Henry Marquand and Henry
G. Marquand figured and which were recorded
Friday - was asked
II told by Mr.. Ward of Robinson. Biddle
& Ward, that the real estate transfers recorded
last Friday, in which the names OF Henry Mar
quand and Henry G. Marquand appeared were
old matters and were made considerable time
before the firm failed Mr.. Ward is a brother
n-law of Henry Marquand. Frank b. Poor,
junior member of the firm, also recently figured
in real estate transaction In New-Jersey I
asked Mr.. Poor about this New-Jersey realty
transaction. He said that he had transferred
some property in New-Jersey to raise money to
put into the firm. He also said that he realized
$4,000 from the sale of this property; that this
sum he put into the firm, and that the buyer
of his property in New-Jersey had got a good
bargain. He thought that he could save the
firm from going under. know that he did have
some additional funds on Wednesday and
Thursday. He thought all day Thursday that
the firm would pull through He said that he
got the money from the New-Jersey deal"
Can you tell ne anything about the mort
gage given by Henry Marquand to the Colonial
Trust Company which recorded on June 81
last?"
Il heard about six months ago that the Colo
nial Trust Company took security from Henry
Marquand & Co for all the Indebtedness then
and previously incurred by the firm, and that
Henry Marquand had given mort2ge to the
trust company covering his interests in the
Guernsey Building. For some reason unknown
this mortgage not recorded until the other
day
INDEBTEDNESS REDUCED
Il also understand that the Indebtedness of
Henry Marquand & Co. to the Colonial Trust
Company reduced about six months ago
from $250,000 to $4,000. 1 am also informed
that Henry G. Marquand advanced to Henry
Marquand & Co. from first to last 81 500 600"
Have you anything to say about the assets
and liabilities of the firm?"
My impression is that the liabilities and as
sets have been greatly overestimated The onlv
examination that l have been able to make is of
the loan account, and that has been by personal
interview. l have not yet seen the receiver of
the Seventh National Bank. / do not know the
condition of the firms account with the bank
but L consider all of the other loans well Sc
cured. The collateral for these latter loans were
satisfactory and 1 satisfied that there will
be no sacrifice of the collateral by hasty and in
Judicious sales
Has the failure had any effect on the health
of Henry G.. Marquand?"
Il learn that Henry G.. Marquand is a man
We'll advanced in years, and that he has been in
feeble health for some time / do not think that
he would be able TO travel at present to this
city,