The Washington herald., 1907-10-19
HEINZE REVELATION
STIRS WALL STREET
CONTINUED FROM PAGE ONE.

with a capital Of 100000 and surplus Of
81 000. 600. the largest Individual loan would
thus be S7O0,O00 Il was said by promi-
nent clearing house banker that the ag-
gregate of these loans to few directors
was approximately S2,O0O,OO0.
Secured by United Copper.
Some loans in the bank. it was said,
were secured by United Copper and other
stocks in which the Hainze party IS inter
ested, but it was not declared that the
loans OF the directors were on such col
lateral 1t was recalled that on Tuesday
F. Augustus Heinze said that United Cop
per had been accepted at the bank as col
lateral
That the deposits Of the bank had
shrunk from Sl9.OOO.O00 to 81, coo 900. that
it was short of cash. and that it had suf-
fered from the notoriety achieved by its
for the institution of Il regime entirely
independent Of the recent controlling in
fluences.
Action Has Good Effect,
The only stock market rally Of the day
ensued after the announcement Of the
designations, indicating that the energetic
action Of the clearing house had an in
spring effect on general financial senti-
ment. The designations were placed IN
the hands Of Alexander d. Gilbert, presi-
dent Of the Market and Fulton Bank. and
president of the Clearing House Associa-
ton. None Of them was accepted. so that
all the directors still remain responsible.
nor viii any of them be accepted until at
the meeting Of the directors when the
new administration Is installed.
As a matter Of form. Of course. the
designations could not be accepted by the
clearing house, for that body does not
own the bank. but must be accepted at
a meeting of the directors. directors re-
signing in turn. AS a matter Of fact. the
designations are binding. for, as has been
said, the clearing house can close the
bank by Withdrawing support.
There has been no recent precedent for
the action Of the clearing house commit
tee. but a close parallel Is found IN the
experience OF the Mechanics and Traders
in 1891. This bank at that time sustained
drain on its resources similar 10 that
on the Mercantile this week The clear
ing house came 10 the support Of the
bank. and at the instance Of the clearing
house committee President Thalmesslnger
and several Of the directors resigned
They We're succeeded BY an administra-
ton headed by Ignace Beskowitz and ap-
proved by the clearinghouse authorities.
New Low Marks Reached
The stock market, in the course Of a
miIlion-share session to-day. showed nqui-
dation that was extraordinarily extern
siye and was the most costly liquidation
Of the year, II was liquidation At the
lowest prices Of the year, for even the
high prices Of the day were well below
the average Of prices al the low points
Of the March and August slumps From
noon until after O'Clock the liquidation
was heaviest. the market breaking Wide
open and new low records being recorded
m0mentarily
Greatest attention was being directed
to the liquidation in Smelters. which, in
sales Of ll2.000 shares. closed with a net
loss OF G7-S points for the day. At the
same time, the stock of the Guggenheim
Exploration Company, an allied concern,
sold down 20 us. which is fifty-two points
below the price ON the last previous sale
prior 10 to-day The aggregate OF trans
actions IN the latter stock were. however,
but ninety five shares. and were thought
10 represent the liquidation Of one indi-
vidual who was bringing this speciality
TO market out OF season.