The Montgomery advertiser., 1907-10-22

 $ EEsToRED The Fsaneial Situation Shefs Improvement. Ngs RUNS ON TIE BANK New YorE Clearing House Com < mittee at Work, sar. Miiiiker Now President Of Mer- cantiie National says Progress
 Is satisfaetory--Expeets
 Heinse to Pay.
 2

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 banking situatio1. which for several days has threatened some of the lead ing speculative banks and has caused apprehension throughout the banking community, showed Improvement today.
 There was no heavy run on any of the banks, but business proceeded without evidence that public confidence was seriously shaken, and the reports of the clearing house, although not very favorable as to the bank chiefly affected of late. the Mercantile Na- tional. showed on the whole that noth- ing in the nature of banking crisis was imminent.
 Chief interest centered in the meet ink of the clearing house committee. which balances the debfts and credits of the various banks. thus furnishing ness status. The committee made up of leading bankers of New York, met at 10 o'clock and was in session more than an hour. It soon became known that the debit balance of the Mercan- tile National Bank amounted to about Sl. 900 GOO. which was considerably more than the clearing house had expected. However, this unfavofable item was offset by the fact that the debt of the bank represented the business of the last week, when the Heinze-Morse re- zine was in control. Therefore. the clearing house took prompt steps to meet 1t, thus giving the new manage ment the support which had been prom ised.
 The debit balance of the National Bank of North America was found to be ss60,0o0; of the Mechanics end TFAdefs Bank. $430.o0o. and the New Arnsterdam National Bank, sz00,o00. These balances were not such as to re- quire the assistance of the clearing house. as the banks themselves were quite able to handle the amount.
 When the committee adjourned af l p. m.. 1t was enncunced that all obli- gationsi of the day had been met. Tn view of tic foregoing altuation. the sentiment in and about the eleafing h0use wae one of buoyaneS and com fyfaenee, and atatn was soon reflected by q marked improvement in tiie stock market. 93F
 Manager Sherrer said that the clear ing house now had the situation well in hand and that the general status of banking in New York would undergo decided Improvement from now as a result of the safeguardb adopted.
 At the Mercantile National Rank bus iness went on as usual without abnor- nal calls on the paying teller.
 An involuntary petition in bankrupt cy was filed in. the United States Dis trict court today against the fifm of otto Heinze and Company, brokers, whose suspension from the stock ex- change was announced last week after they had refused to accept block of United Copper stock purchased for them by the Arm Of Gross and Kleeburg.
 There has been a disagreement be- tween the two firms as to whether the claim of Gross and Kleeberg against Otto Heinze and Company ia legal. The petitioning creditors are William HN'Robotham as assignee of /. the firm of Gros sand Kleeberg, with a claim of $325. 5.3T3; Leo Wise, who has an assigned claim from Edward VI. l, BrokaW. in the sum of sixty cents. and Frank A. Baraby, who has an assigned claim from Herseheld and Stone for 32,s01. They aliege that Otto Heinze and Company made preferential pay- ments to the Merchants National Bank of 92:Oe0.000 against securities and also made other preferential payments, which aggregated about sl0o,ooo. It is also claimed that valuable securities were assigned to F. Augustus Heinze and Arthur P. Heinze to secure ante cedent indebtedness and because of an anticipated suspension of the nrm by the stock exchange. The appointment
 
 The clearing house committee today advised the acceptance of the resigua- tions of eight directors of the bank :. This was done and i've new directors were selected. The other vacancies on the directorate will be filled later. The directors elected on the Mercantile National Board: George H. Hargent. Jamee D Nichols, F. w. Woolworth. Charles Perkins and G "A. Hatch. Mir. Glass resigned the ofiice of vice presi- dent of the bank. which was accepted.
 Argument on the petition of the ap- poIntment of receiver was put over until Wednesday at the request Of counsel of the firm.
 The only weak features in the stock situation today were the stocks and bonds of the Consolidated Steamship Company. The bonds sold at IS 5-S, a decline of 3-4 from Saturday. T6ts is the company in which Charles w. Morse is the controlling factor. United Copper A. Heinze security. advanced two points today. 12 to 1-2.
 Seth M. Milliken, the new president os the Mercantile National Bank. was in charge of the affairs today, He said that the afrairs at the bank were pro- gressing satisfactorily.
 Questioned as to loans made to +. A Heinze aRd Charles " Morse, Mir. Mflliken said 1t wasa expected that tley would repay the loans made to them as soon as they were able.
 We would expect that or any one'r added MT. Milliken.
 Edward O. Eldridge, cashier of the Nav Amsterdam National Bank. said today that there was no more than the uauai business being done in the way | -S aanosft wtthdra walls.