New-York tribune., 1907-10-20
MORSE FORCED OUT.
Continued from first page.

e.. mas required to make up the difference
s'1 o., the cash available and the debit bal
- the bank TO the Clearing House. That
80 "ranoe amounted TO S11370O0, toward which
.szociated Banks contributed about 5000
10 which was advanced in the form of a regu-
,oan. secured by acceptable collateral.
MR. RIDGELY DECLINES.
u-,uiar, B. Ridgely Controller of the Cur
.., il was announced in the course Of the
.s,a-noon from washington. declined the offer
= ,he presidency of the Mercantile. which had
Zen made 10 him two days previously by the di-
tors Seth ". Milliken. it was learned late
IN the DAY. had virtually assumed charge of the
institutions affairs
A B. Hepburn, president Of tho Chase Ma
.ionsl Bank, and once Controller of the Cur
,.,cy. defined last night in the following state
oant the powers of the Controllers office in the
natter Of examination of national hanks:
The criticisms of Controller Ridgely for the
condition which exists in the Mercantile Ma
,,onsl Bank are unjust and made under a mis-
,nnrebension of the powers and duties Of the
controllers Office Any Irregularities in banking
the Controller may and should crticise but so
long as q banks capital is unimpaired and it
meets its current obligations there is little more
that he can DO
1T is no part of the duties of the Controller
JOCK aIleI lIlo interests or stockholders. In
insisting upon good banking he does incidentlv
protect stockholders, but the stockholders are
expected to look out for themselves They are
responsible for the board of directors. and tho
directors are responsible for the officers and
management According to the report Of the
Clearing House committee. the bank has its
100000 Of capital unimpaired and a very
considerable surplus. The troubles Of the hank
arise from official bad management and the con-
nection OF such officials with unsuccessful out
side speculations such as no one. least Of all a
hank Official should engage in.
The Controller cannot remove bank officials
mder existing laws. and it is very doubtful II
he should possess such powers I feel very,
oonhoent tnat the records OF the Controllers
Office viii show that whatever acts have been
committed in the Mercantile in violation of law
or good banking have been properly criticised.
Should the bank fail to settle its debit at
The Clearing House or pay checks upon demand
II viii he guilty OF an act of insolvency Tho
Controller may appoint a receiver Should its
capltdl 90 impaired. he may levy an assessment
upon The stockholders to make good such i'm
pairment Should bank be under its reserve
ne may notify the bank to make good and II II
falls for thirty days TO do so he NAV appoint a
receiver. Bearing in mind that this bank has a
large capital unimpaired and very consider
able surplus, il IS evident that the Controller
has done all he could or should have done under
the circumstances
Mr.. Miiken, who IS head Of the drygoods
house OF Deering. MilliSen & Co, is one OF the
Oldest directors OF the bank in length of ser
vice At his home, No. 800 Madison avenue
last night, he said: NO definite plans have
been made as yet regarding the control of the
rank but steps will be taken tomorrow to put
us sHalrs In good shape. The bank is perfectly
Solvent and if IT'S business were wound I'D to-
MORROW IL would come through all right. I'm 70
he present :ifne me fate or the bank has been
n The hands of tie Clearing House committee
VI even If the committee did not come to its
assistance. after Tomorrow it would be able To
continue business. There is no danger of the
hank closing :ts doors"
ANNOUNCEMENT OF AID.
Ihe announcement yesterday that the neces-
saTy aid would be given the Mercantile National
Bank was made after the adjournment AZ et,o,,+
II e n" OF special meeting Of the Clearing
hease ccnlmitte. at which the general banking
slt1etio" vas gone over The position Of the
Clearing House committee is understood n he
'hat heip cannot be expected 20 be extended
Indefinitely 10 the Mercantile, and that +bo+ a.
stitution will soon be obliged to depend on tts
own resources. Among the customers NJ .ba
uanE are many merchants, a number of whom,
1t is learned, have. ct The request of Mr Mil
Aken, anticipated payment Of their loans with
the bank Through their paying off these loans
before maturity they have materially strength
ened the banks cash resources A great deal
oepends, it was said last night by a banker.
upon the course which the country banks, hav-
ing the Mercantile as their New York corre-
spondent may decide TO pursue as heavy with
crawals Of their balances would, of course, by
30 much weaken the MercantiIe's position.
F. Augustus Heinze gave Que the following
Statement last night at his home
Mr.. Heinze said his attention had been called
20 what purported 10 be a quotation from him
IA some or the morning papers and wanted 10
cay That he had been misquoted.
What he did say that he felt the Mer-
camille was entirely sound, and that under pres
snt conditions of unrest the public should be
rant
Statements had been made in the press not
aJlrbuted to the Clearing House committee
W4Ach he did not consider were correct. The
newspapers quoting Mr. HeinZe gave the i'm
preston that mis- remarks referred to members
ot the Clearing House committee
This Is untrue, and is unfair to Mr.. Heinze
as 10 the eminent gentlemen composing the
committee
lalrs TO the committees investigation fully and
Voluntarily, and one connected with the in
lnttee in any way We are fully conscious and
Apprec!ative OF their timely and public spirited
assistance.
NOTICE TO HAMILTON BANK.
The Mercantile National Bank it was
Iearned late last night, has given notice to the
Hamilton Bank that it Will no longer act the
iatter's clearing agent. The Hamilton Banks
main Offices are at No. 215 West 125th street
and If operates four branches in Harlem and
The Bronx. Its president IS Edward r. Thomas
and among its directors are Stanley Clifford
INIT COTVp