The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-06-27
THE BANK FORCED TO CLOSE
Suspension of the Seventh National
of New York

a Notice Posted That the Institution
Is in the Hands Of the Comptroller
of the Currency-UnabIe to Liqui-
date It's clearinghouse Debt
NEW YORK, June 27.-The Seventh Ma
tionaI Bank closed its doors at 1890
O'Clock this morning. The bank opened as
usual at 10 O'Clock. but half an hour later
the doors were shut. and the following
notice was posted on them:
This bank is in the hands of the
Comptroller Of the Currency.
HORACE FORREST RAYNOR.
National Bank Examiner
The crash in the Seventh National was
not surprise to Wall Street since its
condition became known on Tuesday by
its DELAY in settling a clearing house debt
of S9S3000- But when the announcement
of the closing was made a sharp selling
movement was started on the exchange
William n Cromwell. counsel for the
hank. said that work is being done in pre-
pairing a statement Of its condition, which
would probably be made public today
All the other clearing house banks made
their exchanges at the clearing house this
morning as usual Bankers said that they
did not expect the development of any
further trouble
The following official statement was
made at the clearing house regarding the
affairs of the Seventh National Bank:
at the clearing house this morning,
the Seventh National Bank came in debt
or $644, ,I0S g5l The clearing house commit
tee has bean in session since 9:30, awaiting
the results of the clearing When it was
found that the debit balance WIS 50
heavy. ting committee communicated with
the officers of the bank and was informed
that the board of directors was in ses-
sion and that a decision would be arrived
at within fifteen or twenty minutes as to
the action OF the bank IN consequence
of this statement, the clearings were held
back thirty minutes
At I0.45 a NJ ". Nelson Cromwell, Ed
win Gould, and Mr.. Thomas, president OF
the bank. came into the clearing house
and informed the committee that, in view
Of the heavy debit balance, and for other
reasons. it vas considered wise that the
bank should temporarily suspend
.-Fhe clearing house committee thereup-
on directed the manager of that institu-
tion to eliminate from the clearings al
operations of the Seventh National Bank
A member Of the clearing house commit
tee says that at this mornings meeting
the name of no institution other than the
Seventh National Bank was referred to
The following notice was later posted or
the doors of the Seventh National Bank
Checks drawn by the Manhattan
State Hospital VIII be paid az the
Chase National Bank Drafts drawn
BIZ the St Lawrence County Bank Of
Canton. \. y. viii be paid at the
Chase National Bank
Sifted down, the troubles Of the Sev-
enth National Bank were in large
measure due to AIarquand & Co. and tbs
troubles Of the latter were the eulnaina-
ton of d series Of hard knocks given them
IN the past two years by interests con-
trolling the coal combination which has
sought to smash the firm and thereby pre-
vent the completion of the Pittsburg
Shavvrnut and Northern Railroad. which
owns 5000 acres of independent Goa
lands.
The troubles OF Narquand & Co. which
led up 10 the troubles OF the bank. fur
nish most interesting chapter.
Two years ago the PittsbuTg, ShawHlu
and Northern Railroad Company was IN
corporated representing the consolidation
OF FIVE or six independent coal mines. Th'
company has 35.0e9 acres Of coal lands il
Elk. ClearfeId, and jefferson counties
Pennsylvania It's capital is SC, Gol 900. It.
Offices are al leo Broadway, just above
Marquand & Co.'S. John Byrne is presi
dent
To transport its own coal the com
pany decided to build a road from Soto
Point on Lake Ontario. to poin
twenty-five mics south Of Brookfeld. il
Jefferson county, Pa, using the Penusyl
Yanfa Road for a short distance whel
the TWO roads would run parallel. Il
ali. the line would cover $50 miles. O
this rs miles have been completed an.
the company is hauling $500 tons Of Goa
daily when all its plans are complete
Ii VIII move between S015 and 900 ton
daily.
Marquand & Co undertook the tas1
OF financing the undertaking, expecting
70 put about g 2-610005 OF their own none
into the scheme IN all Sf2, ,GJ9, ,0J3 il
bonds was issued. Marquand & ca
have taken S6.G530g9 Of these at par. a
the property is incomplete, these bond
are not high class as collateral, anr
there is no general market for them, T
complete all of its plans the Shawmu
Road requires about 10000 more
Ever since We took hold Of this roa
We have been knocked hard" said Mr
Poor, by those who are opposed to al
Independent coal line Nobody can real
lie what we have been up against W
expected TO put up 100000. but wer
asked for s5,0oG.Ooa"
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