The Washington herald., 1907-10-20
MORSE QUITS BANKS.
CONTINUED FROM PAGE ONE.

generally. He refused to discuss. also.
the action of the clearing house in ref
erence TO the examination OF two OF his
Institutions
clearinghouse Assistance.
The Mercantile was again assisted by
the clearing house It had a debit bal
ance of 81, ,137, 900 at the clearing house IN
the morning arrangement of clearances,
and the clearing house advanced more
than S900,G90 to enable it TO meet it's Oh
/ legations
The clearing house after this payment,
took pains to make It clear that the
clearing house banks were only assisting
the Mercantile from day to day They
had not bargained to go further, il was
declared; and the general assumption was
that unless plans for a rehabilitation Of
the bank are perfected meanwhile, the
clearing house will withdraw its support
Monday or Tuesday. S. NJ. Mill!ken, Of
DeeTing & AIiliken. one Of the directors
Of the bank. appeared to-day to take
great interest In plans for the continu-
ance Of the banking business.
Weekly Bank Statement Favorable.
The weekly bank statement showed a
surprisingly favorable feature in the gen
eral situation. There was reported q de-
crease Of S6,50O.0O0 in loans. and. notwlth-
standing the Withdrawals Of cash from
the Mercantile, an increase in the az
gregate cash holdings of about $4,000
These changes brought the surplus re-
serve up to $l1.1S2.0b0. the largest amount
since last May. and an increase Of &C.
$4,000 over the preceding week.
The Mercantile, In its report Of reserve,
was far below the legal limit On the
other hand. the First National Bank
showed the surprisingly large reserve Of
80 per cent, and the National City Bank
was not far behind, with % per cent
Most Of the other banks showed them
selves IN an exceptionally good position
As stated to-day, bankers, important In
clearing house circles, were considering
on Friday a plan whereby support could
be given TO Mr.. Ridgely in the purchase
Of a controlling interest in the Mercan-
tile and the rehabilitation IF the institu-
ton
Sixteen thousand shares Of the 10000
lOf the banks capital stock had been Of
fered 20 Mr.. Ridgely, and the bankers
discussed several plans for financing the
purchase Of this stock and placing Mr.
Ridgely IN control. One plan was so far
advanced that a draft Of it was made on
paper and submitted to several bankers.
II contemplated the formation OF a hold
ing company. with a capital Of $500,000, TO
take over the bank stock holdings not
only Of the Thomas-M0rse- -Heinze combi-
nation in the Mercantile. but OF the
Thomas holdings in various banks. the
Heinze holdings in other banks. and the
Morse holdings The holding company
was to issue debeHture bonds, TO be Sc
cured by the bank stocks 10 be acquired,
and was 10 pay the interest on the bonds.
and accumulate funds for their retirement
from the dividends on the banks stocks.
In the course Of the consideration Of
this plan inquiry was directed toward
the whereabouts Of the stockholders OF
the persons from whom the stock was 10
be purchased. It was ascertained. Il was
said that the stock was widely distrib-
uted, and much OF IL was In banks in
one town and another as collateral for
loans Obviously. il was impossible for
the many loans % be taken up and the
stock put In shape for delivery In
time 20 make the plan Of any benefit.
With the greatest expedition. IL would
have been impossible 10 carry the trans
action through I'm less than two weeks.
Immediate action was necessary.
Almost COnCuTrently with the abandon
ment of the plan the other plans We're
abandoned for an equally important
reason.
It was the purpose Of these bankers
prominent On the clearing house 10 sepa-
all its recent affiliations. whether with
the Heinze banks. the Thomas banks, or
the Morse banks. on no other condition
would they support Mr.. Ridgley in acqui-
sitIon OF the stock u the bank. and 70
was IntImated on the quiet plainly. that
under no other condition would the clear
ing house continue 60 accord support TO
the bank.
SuspiciOns Are Aroused.
Presently one and then another OF
the bankers came to the conclusion that
Mr. Morse. after deciding that Heinze
must 90. and. perhaps. accelerating his
departure. himself conserved the idea OF
getting Mr. Rldgely 20 step into the
breach, save the bark with the clearing
house support. and. incidentally. place IT
uIitE Ills tDNUDt- " neither OF hot lUe
bankers were positive that this was the
case Is not known, but # at least appear
ed probable enough n them % induce
them % abandon the Ridgely idea.
Mr. Ridgely, for all these reasons. was
told that these clearinghouse bankers
withdrew their offers OF support Mr
before his departure for Wash
inrton late Friday night. had plenty Of
70 learn the sentiment Of the
clearing house, and declared that he
would not take the position without the
clearinghouse support Otherwise. finan-
cial support It was said to-day, was Of
fered 10 Hill in the transfer Of owner
ship In q big block Of Mercantile Bank
stock. pledged as security for a loan
This transaction could have been effected
without any great expenditure on Mr..
Ridgely's part He announced his final
declination to-day In Washington. after
receiving word that the plans for support
from clearinghouse bankers had fallen
through.