The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-10-20

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Ns,ional lank,ns examiners sssin -
-, e,ted the condition ~ the Nsroantil. yes
i--!sv They found mShins ~ variance
With the findings ~ IA. tl-,uus House
examiners .
uTNrsNIuLE utIPEp ,U,tN
The tlra,ing Nous. committee notified
the Mercantile. 10 ces-. clearing for other
hanks. The Mercantile cleared for the
Hamilton Rank u Thomas institution OF
which H. " Thomas ~ president. aud Tor
the Nin-t ernth Ward HANK This action,
n ~s@ explained by q banking ~exsinlner.
was taken ia account 81 the condition VI
he Mercantile and not because 81 any
alarm over the condition ~ the hanks Tor
which the Mercantile cleared. This sotiOn
10 the Clearing House COMMITTEES fOrtes
the Hamilton and the Sineteenth WRrd
banks To secure new Clearing Ho'i~e agents
on make their exchanges direct by mes
sengCr as "a number of banks do ctIstO-
MARTY The Nineteenth Ward Bsnk an
nOuncer that the Fourth National will
clear for IL hereafter; "A change for some
time contemplated.
HRPBURN on TnE CRITICISM or RID0ELy
There were criticisms 81 Comptroller
Ndgely yesterday because 81 the discovery
OF unmarketable collateral III the Mercan-
tile. II was argued that MIR. Ridgely's
examiners should have discovered the col
lateral and thrown IL out. A. b. Hepburn,
former Comptroller Of the Currency and
president Of the Chase National Bank. said
last night:
The criticisms of Comptroller Ridgely
for the condition which exists la the Mer-
camille National Bank are unjust and made
under a misapprehension Of the powers
and duties Ut the CompirOller's office. Any
Irregularities in banking the Comptroller
may ana should c~riticise, but 40 long az "a
banks capital is u~niinpairei and II meets
It's current obligations there IL little more
hat he can do. IL in no part Of the Comp I
trolIer's duties to look after the interests
Of the stockholders, In insisting upon good
banking he does incidentally protect stock
holders. but the stockholders are expected
to look out for themselves. They are re
sponsible for it's board Of directors and The
directors are responsible for its officers aud
According to the report Of the Clearing
House the bank has its 81, 900, 900
Of capital unimpaired and a very consider
able surplus. The troubles of the bank
arise from official bad management and the
connections VI such officials with unsIccess-
fIl outside speculation, such as no one, least
OF all "A bank officer. should engage in.
The Comptroller cannot remove bank
officials under existing laws. and il 10 very
doubtful il he should POSSESS such powers.
| feel very confident that the records OF the
tomptroller's office will show that what
ever acts have been committed IN The Nler-
camille in violation Of law or good banking
have been properly criticised.
should the bank fail 10 settle it's debit
AT the Clearing House or pay checks upon
demand It will be guilty OF an act OF IN
solvency and the Comptroller may appoint
a receiver Should its capital he impaired
he may levy All assessment upon It's stock
holders TO make good such impairment.
Should u bank be under it's reserve he may
notify that bank tu make good. and II it
fails for thirty days to do ~ he may APP
point "a receiver.
Bearing in mind that the bank has a
large capital uniinpaired and "A very con-
siderable surplus. il il evident that the
Comptroller has done all he should have
done under the circumstances,
Comptroller Ridgely. when Informed
Of criticisms that had been made against
him here yesterday. said over the tele-
phone last night:
MY best answer 10 criticism of my con-
duct in this matter il that after the banks
deposits had shrunk from nineteen TO
eleven millions and the bank was then eN-
amined by the Clearing House COMMITTEES
its capital was found To be unimpaired."
READY TO GUST THE TIIoMAsEs.
The bank from which. according 10 W.
d. Allison. a director. the ThomLse- are TO
be elected from control IL the Consolidated
National, which IL opposite the old home Of
the Consolidated Stock Exchange at FIX
change place and Broadway. IL WAS with
this bank that the Messrs. Thomas first
embarked in the banking business in this
city. Orlando r. Thomas is presidentvof
the bank and among it's directors are
X. and Orlando +. Thomas and r.
Augustus Heinze. MIR. Allison. individu-
ally and through one OF the officers ofthe
bank. sent out an offer some time ago TO
stockholders for the purchase Of their hold
ings. 1t was said at the time by one Of the
officers that the offer was made OF behalf
of the Messrs. Thomas, but MIR. Allison de-
clared yesterday that the contrary was the
case.
He had Just secured enough stock. he
declared. to insure majority control by
himself and his associates. and it was his
to deprive D. +. Thomas of the
presidency Of the Snstitution at the earliest
possible moment. Mr.. Allison said that
he had long taken an active interest in
the affairs Of the bank and watched its
huainesa closely.