Los Angeles herald., 1907-10-21
ALL BANKS
IN NEW YORK
ARE SOUND
CLEARING HOUSE REPORT IS
ENCOURAGING
OFFERS AID TO ANY INSTITUTION
UNDER SUSPICION
Charles w. Morse Retres from Conn
panIes In Which He Figured as an
s officiaI--MIilliSen suc-
i ceeds HeInze as
By Associated Press.

A1bOCAhtoA A~oos
NEW YORK, Oct s2O.-At late hour to-
night the Associated Press was assured by
the clearing house commission tnat tne'
8einze-M Morse I Thomas Interests had peen'
eliminated from the banking organizations
OF New York, and In the light OF TINS 1act
the Clearing House association announced
its readiness to lend all necessary aid to-
any of the banks which have been under
suspicion. the clearing hoaise investigation
having established their solvency.
II is believtd that this action Will pre-
vent any crisis in New York banking cir
cles. :,
William H. Havemeyer, ione of its d.
rectors, was today elected to the presi-
dency of the National Bank or Nortn
America, succeeding Alfred ID. curtis re-
signed.
n js understood that the Mercantile Ma
tional bank will undergo process OF SLOW
liquidation. =,
At q special meeting of the board of di-
this afternoon Seth M. Milliken was elect
ed. president of the bank, to. succeed 4.
Augustus Heinze, resigned.
At the same time William SKINNER ano
Gerish II. adilliken were elected additional
vice presidents. Gerish III. Milliken being
added to the board of directors.
The clearing house commission met with
The directors of the bank and the two
boards were in session for about rour
hours Later William H Shearer, man
ager of the Clearing House association,
on behalf OF the association'saVe oul ING
following statement:
All Banks Solvent
"a committee of the Clearing houss
association has examined the seVerai
banks of the association that nave peen
under criticism and find them solVei.'
THE clearing house commission mas oe-
cjded to render them such assistance 10
meet their deposits as the COMMISSION
may thing necessary.
Neither the members of the board OF
the Mercantile bank, nor the clearing
House would add to the statement. Inc
statement of Mr.. Shearer is, however,
taken to mean that the clearing house
commission is perfectly satisfied with the
reorganization of the Mercantile Nation
al and will see that the bank Is enabled
to meet any crisis that the widely pup-
lshed story about its condiuon Ioilow-
ing the collapse of the Heinze corner In
United Copper may force 1t to face
After the meeting of the Mercantile
National directors, E. r. Thomas, one or
+ha directors announced that he had
disposed of all his holdings in the Hamil-
ton bank to a syndicate composed OF
men interested In the bank. This action
had been expected
While none of those connected with the
Mercantile National or the clearing
house would discuss any phase of the
matter today, it is known that 1t Is the
helief of the clearing house commission
that the election of Mr.. Milliken as head
of the bank will relieve the uneasiness
in the financial district and the action
was taken today that it might have a
ouieting effect on, the market on the
openinR of the stock exchange tomorrow.
Charles W. Morse today announced
his resignation from the directorate OF
every local bank which he was connected
with. He gave out the follow1nt formal
statement:
Morse Resigns
lowing to connections with the affairs
of the Mercantile National bank and the
seemingly disturbed condition of the pub
lie mind, 1 have determined without the
slightest suggestion of solicitation on the
part of any one that my resignation from
the various boards of directors of the
other banks with which L am associated
might be for the best interests of the de-
positors, stockholders and others inter
ested In those banks. Accordingly.
have this day rendered my resignation in
all. banks In which / have been serving
as director"
Mr.. Morse was connected with the fol-
lowing institutions: National Bank of
North America. New Amsterdam Nation
al bank Barfield National bank, all of
which he was vice president, as well as
director; Mercantile National bank, Gar
field Sale Deposit company, Fourteenth
Street bank, New Amsterdam Safe De-
posit company, New York Mortgage &
Security company. New York Produce
Exchange bank. Title Insurance Com
pany of New Work, Van Noordan Safe
Deposit company, and Van Noordan
Trust company, in all of which he was
a director.
In addition to these financial institu-
4,.k- .A11 T.
the American Ice company the Ameri-
can Ice Securities company, and the
Consolidated Steamship company, which
latter company controls the most i'm
portant coastwise steamship lines, in
cluding those operating between the
United States and Cuba and the West
indies.
Mr.. Morse also controls the Peoples
and Citizens lines of Hudson river steam
boats.
Copper Couse of Trouble
The principal source of the serious dis
turbance in the stock market last week,
was traced finally to the copper world,
but before conditions had become suf-
ficiently well defined, the financial mar
ket was made nervous by all kinds of
rumors of trouble that was threatening.
The result was seen in the range of
quotations published, which presents the
siderable list of important stocks.
Foreign money centers were kept well
supplied with all the alarming rumors
current and originated others on their
own account, sending sufficient stocks
for sale to this market In the meanwhile,
and restricting credits to New York in
many ways.
Under these circumstances something
like relief was felt when the circum-
stances became known regarding the
market position Of United Copper stocks,
and a futile attempt to corner that stock
and to administer chastisement to the
bear party which had been interfering
with the liquidation in the stock. The
reduction In the dividend on Anal
gamated Copper for the quarter from two
to one per cent naturally aggravated the
bad effect of the United Copper episode,
and successive reductions in the price of
the metal kept open the root of the dis
turbance. The reduction in the price of
the metal failed to bring any effective
buying, and the possible limits of the fall
remained undisturbed.