The Washington herald., 1907-10-19

Entire directorate of the Mercan-
tile National Bank Of New York
forced to resign, owing to develop
mentS in the Heinze financial diff
culties.
Comptroller of the Currency
Ridgely is in New York, but has
not as yet accepted the presidency
Of the bank.
\ William c. Whitney was involved
in a questionable transaction in
street railway stock in 1899. accord
ing to testimony given before the
Public Service Commission hearing.
The New York stock market, in
the course Of a million shares ses-
sion, reached low marks for the
year in many Of the leading stocks.
New York, oct. 1s-In the confused and
perplexed financial situation. created by
the decline Of the Helnzes. the principal
developments to-day were the resignation
Of all the directors Of the Mercantile Ma
tional Bank. az the instance Of the clear
ing7house committee; the virtual assump-
tion by the clearing house OF control over
that institution. negotiations for the insu-
tuition Of a new regime in the bank, and
a violent break in the stock market. due
largely TO the csIling Of loans by various
banks
There were, too. revelations affecting
the Heinze manipulation OF United Cop
per. which showed that unhappy traasae-
ton in an even more sordid aspect
/ In regard to the Mercantile. the situa-
iion was made all the more confusing by
conflicting statements between Charles ".
/ Morse, a very heavy stOckhoIder in the
Mercantile. and the controlling power in
string Of banks and in the Consolidated
Steamship Company; Comptroller Of the
Currency William b. Ridgely. who has
been invited to become president. and F.
Augustus Heinze. who resigned as presi-
dent On thursday.
Mr.. Morse declared very emphaucauy
this afternoon. and reiterated the state
ment tonight. that Nh. Ridgely had &c
! cepted the office.
Denies He Has Accepted.
! Mr.. Ridgely said that he had not ae-
/ eepted making the statement on leaving
the Offices OF the Chase National Bank at
/ 6 O'Clock, after a long conference with
! President 4. B. Hepburn, of the Chase
National, and Vice President Henry P.
Dawson. Of the First National. Mr.
/ Ridgely adding that be would surely not
come 70 a conclusion tonight.
Finally Mr.. HeinZe. at the Waldorf, to-
night said he had not sold a share Of
stock. and was stnl in control Of the
Mercantile Bank"
In connection with this confusion Of
utterances. it became known that in
Z
take the position that, without any re
Election on the banks with which the
Mercantile Is associated. Il Is, in their
Judgment. advisable that II start out
anew. independent and free from the con
troll of the Morse, the Thomas. or the
Helnze banks.
This difference OF opinion, it was be
e e, Lott -
the conflict OF tongues. The situation.
it was said by clearing house represent
atives late tonight, was complicated, and
I'D 20 midnight had not been Strengthened
out
Holds Long Conference.
William B. Ridgely. Comptroller OF
the Currency. was in the city for the
first time since he was offered the pres
ideney Of the Mercantile National Mr.
Ridgely. consulted with officers of the
bank and had numerous conferences with
/ bankers prominent in the Clearing House
Association, but at the close of the day
declared himself still undecided as 10
whether or not he would accept the pres
idency It was altogether probable, he
i au0Gu, IlAJ ne WOulu not reach ue-
csi0n before Monday.
AS far as coming 10 a decision IN the
matter is concerned" said Mr.. Ridgeley,
L can only say that I am still consider
ing the proposition. can give no inti-
nation regarding acceptance or declins-
ton of IT, II 1 DO accept It, however. ]
will be assured that the control Of the
institution rests In my hands or in the
hands of parties associated with me, and
that the bank is relieved Of its old con
nections It will be an entirely indie
pendent bank"
Among the loans Of the bank the ex-
aminers found loans to F. Augustus
Heinze, on his brokers. Other directors
Of the bank, it was reported, had loan
accounts with it.
The amount which under the banking
laws bank may loan TO any one indi-
vidual is 10 per cent Of the combined CAPT
tai and surplus, provided that amount
does not exceed so per cent Of the bank S
capital In the case Of the Mercantile,
Continued on Page 3, Column 4.