The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-10-20

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svamsasrs ur,ier ii,- sit ~rvi.suo ~ Wilisia
a. Nsah. gr-~i.n' yf tho ,"sn E,chsnss
Nstbuual Esnk aud acting chairman Of the
stcarsnG tiou-. srrr on.clud-
lns Their etsmlnation into ~. aniirs ~ ~.
Nsascosl bsnk 1t North America aud the
NsS A~uraaet,m Nsu oral Bank Mr.
Morss r-sna.nrd ~ the ~at,onal Bank "
North America from early IN the morning
until EN- o'clock last night. denying him
oslf TO all Inauirers A. ha lef' the bans
~ Declared that the institution wss per.
fectly solvent hut b"vond that rpf used
70 dsscuss the ~vrdition ~ the institutions
with which h. - connected ~ IA" banking
asuation generally
Mr.. Mor.e was reminded 81 The fact that
he stated very positively on Friday that
Comptroller of the Currency Ridgelv had
accepted the offer 10 become president Of
The Mercantile National. Mr.. Morse re-
piled that he did not vet consider that MIR
Rideely had definitely declined the pr,--i-
descy Of the Mercantile.
FORGED ~RFsIGS ArtoNs
The Clearing Houss ia forcing the re-ig-
nations Of the Heinzes and the Thomases
from the Mercantile. and Mr.. Morse from
his banking connection has pursued n
policy Of separating ~ far 49, possible the
Clearing House banking institutions from
connections Of n speculative or over ven
tureeome nature
In the course ~ the las, six months II WIS
q matter of comment that here has been
Q great curbing Of the activities Of many
men well known in the financial district
for the holiness of their operations. The
movement began when JOIN W Gates re-
tired from business laSt May. A partial
retirement has now taken place in the cases
of +. Augustus Heinze and his two brothers.
Of Orlando +. and Edward X. Thomas and
OF Charles W. Morse. The prevalent ques-
ton in the financial district Yesterday WAS
sWho's next" 49, a. g.
Criticism was also directed against the
1homases. the HeinHes and MIR. Morse for
the reason that such a large amount Of the
bank stocks owned by them were pledged
as collateral for LOANS. 1t appeared 10
have been a part of their business policy
on acquiring one bank 10 hypothecare
tNo btOCh, ubIhk lIe PlOsCtbb " bNNu'V
another bank, and 40 on round and oun
In connection with the hypothecation Of
+. Augustus Heinze's bank stock an in
teresting Incident came TO light When
MIR. Heinze and his associates acquired
control Of the MERCANTILE National they
wrested the control from Edwin Gould and
his associates and took over in the course
Of the fight for the control the Gould hold
ings OF stock. Altogether Mr.. Heiuze ac-
CURED IL 100 shares OF stock az a price since
repeatedly reported 10 have been $500 n
share. This stock, il was reported yester-
day, il now held by the Bowling Gre N
Trust Company, Of which Edwin Gould is
president, 10 secure a loan. Of 81 25o. 900
made to Mr.. HeinZe.
The idea was entertained vest erday that
Mr.. Gould aud his associates might again
como into the control of the Mercantile by
closing out the loan. Mr. Heinze, Incl
dentally, paid more for his stock. il is said,
thsn did either Mr.. Morse or the Messrs.
Thomas There was "A sale of the stock on
the curb one day this week at $3.50 a share.
Both the National Bank of North America
and the New Amsterdam National Bank in
the weekly bank statement yesterday
showed cash reserves Of but a fraction
more than 10 per cent. as compared with the
legal reserve requirement OF 70 per cent.
Whether or not the report Of these low
reserves inspired the Clearing House Asso-
citation to make the examination of the
banks is not known.
IL is possible thai the committee would
have inquired into the collateral in the banks |
In my event in view Of the, disclosures Of the
character of the collateral carried in many
loans OF the Mercantile National Bank.
Members of the Clearing House committee. !
Including William f.. Nash. chairman Of the
committee. and }. Edward Simmons. presi-
dent Of the Fourth National Bank. looked
into the affairs Of the National Bank Of North
America in person. They left the bank
shortly before II O'Clock last night. refusing
absolutely at that time To give any intima-
ton concerning the findings Of the commit
tee Or the discoveries they had made.
At the National Bank Of New Amsterdam
when the examiners departed there was the
same silence. II was understood then that
. statement would be made later.