The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-29
F. S. HEATH OUT OF ONE BANK
HIS STOCK IN A HAMILTON, O., IN-
sTITUTION DISPOSED OF.
Reorganixed by the Election Of New
Onicers-Three Men who Were Not
Directors of Seventh National.


firm of Hepry Marouand & 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 assignment TO Frank Sullivan Smith.
The assignment was without preferences.
No statement OF assets or liabilities was
made with the assignment Frank Sullivan
Smith, the assignee, reached the Office OF
the firm shortly before 10 o'clock and at
once assumed charge. He conferred with
the members OF the firm and began a sys-
tematic investigation OF its books and Inn
paired finances. The formal suspension OF
the firm created scarcely a ripple OF ex-
citement. IL had been anticipated, for the
events attendant on the closing of the Sew
enth National had let I'm strong light on the Z
affairs of the firm. During the first fifteen
! minutes OF trading on the Stock Exchange
the following transactions were made for
the firms account: Three hundred Amer
ican Car and Foundry and 100 shares each
OF iaclede Gas preferred. Atchison pre-
ferred and Kansas g. Texas preferred.
Seven thousand dollars par value OF Mis-
souri, Pacific fives OF 1917 and 1900 Iron
Noun tain per cent. bonds were also dealt
in for their account.
Henry Taft, Of the law firm OF Strong q
Cadwallader. attorneys for the assignee.
made the first statement in behalf OF the
suspended house. He said: II cannot at
this time give any figures on the liabilities
and assets OF Marquand & Co. We have as
yet had no time 20 look over the situation.
and 1t will be several days before clear
idea will be obtainable. Much depends
upon the disposal OF the securities, and
particularly the active securities held by
the firm. A general view at this time gives
a very favorable impression. but naturally
the great question is as TO collateral held
by the house on its outstanding loans.
believe the creditors OF the firm will fare
very WELL unless there Is slaughtcring OF
some OF the firms securities. 1 cannot say
at this time anything as to the resumption
Of the firm. That will depend upon the
developments Of the next few days. We
will prepare 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. con-
sisted OF Henry Marquand, who is the son
OF Henry c. Marquand. and Frank II. Poor
son OF the former president of the National
Park Bank. The Railroad Guide shows
that the Frank S. Smith. the assignee for
Marquand * Co, is general counsel or the
Pittsburg. shawmut &c Northern. Henry
Marquand is first vice president OF the
company.
The admitted embarrassment OF the firm
in connection with the Seventh National
Bank failure resulted in the wholesale call
ing in OF stocks loaned TO 1t for delivery.
and the firm was obliged TO buy heavily in
the open market to cover. At the same
ms he n
mittee and the controller of the currency
put official disapproval on securities In
which the firm had large investments and
which figured as part OF the collateral in
the loan OF 81 600,000 from the Seventh Ma
tional Bank, and which caused the suspen-
sion OF the bank. The disturbance In the
stock market caused by the embarrass-
ment, and which depressed prices. worked
to the firms advantage. so far as IL showed
credit deprived the firm of resources to
take advantage OF these conditions. The
failure was expected all day yesterday and
caused no surprise. Yesterdays late rally
in the market was attributed TO buying for
the firms account 10 cover short contracts.
One OF the enterprises which have been
financed by II. Marquand a Co. is the Gas
and Electric Company Of Bergen County.
This stock, which is listed on the Stock
Exchange. sold on Monday OF this week for
Of l0lss on June 10. The first sale this
morning of three hundred shares, under the
rule for the account Of the failed firm, was
at 30 on a cash sale. Subsequently IL sold
for cash ar 10 and at 46s. regular way.
Inquiry at the local office OF the Pitts
burg Shawmut K 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.
"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 it.
Frank s. Smith. assignee OF the firm OF
MarQuand * Co. said this afternoon that
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