New-York tribune., 1907-10-20

pany and the 10Th Ward Bank ceased to clear
through the Mercantile National Bank yester-
uaE' IL was said that the action of the Ham
li'on Bank was taken to protect itself. ION and
after Monday" MIR. Montgomery continued, the
hamilton Bank will pay its checks over the
counter on presentation, the same as the
jority Of the big trust companies and banks in
the city do. This bank is essentially an uptown
institution. and for the present at least il will
attend to its clearing business This
action on the part Of the uptown banks will
probably make them independent as they ought
TO be"
1t was also said that these banks took the
initiative in Withdrawing from the Mercantile
as their clearing bank and that the usual Gus
tomary notices from the Mercantile followed
informing the respective institutions that It
would no longer clear for them.
The Van Norden Trust Company will not in
the future clear through any other institution.
The Nineteenth Ward Bank has made arrange
ments TO clear through the Fourth National
Bank.
William O. Allison yesterday announced that
he had secured control of the Consolidated Ma
tional Bank. of which he has for some time been
a director Orlando F Thomas is president Of
the bank. among the directors of which are T.
Augustus Heinze, E. Z. Thomas. Robert Ma
clay and O. F. Thomas 1t is understood to be
Thomases from the control Of the Consolidated
National Bank.
DIAMONDS AS SECURITY
Several Maiden Lane jeWelry houses are
among the Mercantile Nationals customers. and
FIJI going through the banks collateral the Clear
ing House committee found. it is said, number
of diamonds which had been turned over to the
bank as security for loans to some Of these
jewellers. AS far known. memorandum in
dicating the identity OF the expert who passed
upon the value of this collateral was found.
F A. Heinze, it was said yesterday in quarters
which should be we'll informed, bought from
Edwin Gould and his associates. when control
Of the institution passed TO him from them.
1900 shares of Mercantile National stock pay
ing for it $500 share A large part of that
block Of stock, It said, is now in the pos
session of the Bowling Green Trust Company. of
which Edwin Gould is president. as security for
loan Of $3.50 900 negotiated with the company
by Mr.. Heinze
One of the plans considered al the confer
ence between Mr.. Ridgey and some Of the prom
inent local bankers day or two ago, when It
seemed probable that he would succeed Mr..
Heinze president of the Mercantile National.
provided a sufficient could be raised TO
acquire enough stock to give him a free hand
in the management OF the bank, was the forrna-
yesterday. This company, according to the plan.
was to have S500000 capital stock and was 10
hold controlling amounts OF the shares of the
Mercantile National Bank and certain other
banks and trust companies commonly cIassed
as controlled by the Heinze and allied interests
Issuing its debenture bonds against such
stock 1t was recognized that the plan to be
OF value 10 the situation must be put into exc
cution at once. and considera ton OF il
ITag cot arda -l,ar,
found that IN the case Of some Of the institu-
tions much OF the stock necessary to be OBJ
tanned was hypothecated and therefore could
not be promptly turned over.
STATE OFFICERS INVESTIGATE.
State Treasurer Hauser and two officials Of
his department. with Mr. Shaible of the State
Controllers office. came TO New York early yes
terday morning TO about the states money
in the city banks. especially 100000 the State
Treasurer has deposit In the Mercantile Ma
tionaI Bank.
Mr.. Hauser made appointments with various
officials OF the Mercantile Bank the Clearing
House and the Clearing House committee.
Mr.. Hauser received all the assurances he
needed that the states money was perfectly
safe. 1t was said that the Clearing House COM
mittee told him that II would be better TO leave
the money in the Mercantile Bank, and that
there was no chance OF any impairment of the
deposits. It was even said that the members
Of the committee asked him to leave the money
deposited there
Mr. Shaible, who acting for Controller
Glynn, also assured OF the safety Of the
states deposits In the Mercantile. and he re-
ported forthwith to Mr.. GIynn
The directors Of the Mercantile are TO hold a
meeting to-day at the banks offices, in the
Western Union Building. 1t is understood tha,
there viii be no meeting OF the Clearing House
committee to-day. but that that body will have a
conference before the opening Of business to-
morrow.
Harry Content and Maurice S. Wormser who
agreed on Friday to act as q committee in set
tling the accounts OF bankers and brokers with
Gross & Kleeberg, received several such ac-
counts yesterday. Gross & Kleeberg will take
no legal steps against Otto Heinze & Co, It is
understood in advance Of the meeting to-mor-
row Of the creditors Of the latter house which
suspended several days ago 1t is now reason
! ably certain that the governing committee OF
! the New York Stock Exchange will make
searching investigation OF the accounts of brok-
ers who sold United Copper stock to Gross &
Kleeberg, with the object Of learning whether
those brokers acted for Otto Henze & Co This
inquiry may be extended TO include transactions
| through which Boston houses were sufferers
STOCK MARKET NERVOUS
The stock market exhibited continued signs Of
/ extreme nervousness yesterday throughout the
! brief hour session and closed weak with
! several prominent issues making new low rec
ords for the year and movement. although the
general list held a trihe above the low prices
registered in Fridays decline. The favorable
! bank statement with its increase of over Sc
| OO0OGO in cash. had absolutely no effect on