The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-10-22
BANK PRESIDENTS OF NEW YORK
SAY HIS METHODS WILL NOT
BE TOLERATED.
NIlLLlKEN ELECTED
Chosen President Of Mercantile Ma
tionaI Bank to Succeed Copper
Magnate--Heavy Loans Made to
Heinze and Notwithstanding House
Provides to Meet Deficit of Bank.
(By Associated Press.l

(By Associated Press.)
New York, Oct. 21--A most favor.
able sentiments in business and bank
ing circles resulting from yesterdays
changes in various bank manage.
ments and the promise OF support
made by the clearing house associa.
tion received somewhat OF set back
today when IL became known that the
debit balance of the Mercantile Ma
tional bank at tuhe clearing house
was $1,9O0,OO0 and the debit balance
Of the National bank of North Ameri-
ca was s85O,0OO.
These figures indicated that heavy
Withdrawals from the two banks were
being made and the total was refer
red to by one member of the clearing
house association as unexpectedly
large and disconcerting. 1t was an
nounced in short time, however, that
the clearing house association would
extend assistance to the Mercantile
National and the National bank Of
North America
MiIIil<en President.
Seth N. Milliken, the newly elected
president of the Mercantile National
bank, said today that counting out
the Heinze and Morris loans, the as
sets Of the bank are $1.40 for every
dollar OF liabilities and that the loans
in question were Of value. SUNDAY j
meeting OF the bank presidents sue
ceeded in finally eliminating the
Heinze, Morse and Thompson inter
ests in several Of the clearing house
banks and announcing that each was
in solvent condition.
A sum Of $10,0Oo,o00 was pledged by
a score OF individual banks to extend
aid to these banks and render such
assistance to meet their deposits as
the clearing house committee may
think necessary. The deposits of the
banks were represented at the Sunday
conference amount to $1,250,000. The
men, 80 in number every one a prac-
tical banker, decided upon the mea-
sures for eliminating the interests
which had been under criticism, which
measures later in the day were car
ried out.
Put Up Stock for Control.
The methods that have now been
eliminated fron, the local banking
situation are development Of the,
last decade. These consist of buying
a bank, then putting up the stock re-
presenting that control as collateral
for funds to buy contro! Of other banks
and continuing the process until the
result is pyramid controlling banks
and their deposits. The crisis, it is
declared, was a serious one but the
cure extended Is expected to be COM
plete. Manager ssherer Of the clearing
house said today that institution had
the situation under control, that all
the undesirable elements had been
elimated and that from this time dat
ed a new era in New York banking.
1t was aficially denied that it would
be necessary to issue clearing house
certificates in order to secure sup
port for the banks which had been un-
der criticism.
United Copper, a Heinze security,
advanced two points today from TX
to 91s.
Seth M. Milliken, the new president
of the Mercantile bank, questioned as
to loans made to F. A. Heinze and
Charles M. Morse, said It was expect
ed that they would repay them as
soon as they were able
Start Bankruptcy Proceedings.
A petition in involuntary bank
ruptcy was filed in the United States
district court today against the firm
of Otto Heinze 6 Co., brokers, whose
suspension from the stock exchange
was announced last week after they
uetu 1SldSCu " aCScpL Iu0 D1oSh - VI
United Copper stock purchased for
them by the firm of Gross & Kleberg!
The petitioners are William Ro-
bothan, assignee for the firm of GROSS
& Kleberg, with a claim of 1925, ,073,
Leo Wise, who has an assigned claim
from Edward v. Brokaw, and Frank
A. Baraby, who has an assigned claim
from Hirsehfeld s. Stein for $2,1O9.
They allege that Otto Heinze & Co.
made preferential payments to the
claim OF the Mercantile national bank
of 100000 in assigned securities and
other preferential payments aggre-
eating about 100000. 1t is also al
legged that other valuable securities
were assigned to F. Augustus Heinze