New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-10-19
MERCANTILE BANK
DIRECTORS RESIGN.
ME-. RIDGELY CONSIDERS
PRESIDENCY OFFER.
Clearing House Committee to Lend
Aid-Chdnge of Stock Control
Demanded.
Demanded.

Demanded.
The directors of the Mercantile National Bank
,rosuuably on the suggestion of the Clearing
House committee, yesterday placed their written
designations in the hands of the president of the
Clearing House Association. Alexander Gilbert.
for such action as he might deem it desirable TO
take regarding them. and the Clearing House
committee extended assistance TO the institu-
tion. which it declared to be in a solvent condi-
ZION. although its surplus is impaired
william p. Ridgely. the Controller of the Cur
rency to whom the directors have offered the
presidency as successor TO +. Augustus Heinze
came over from Washington and spent the day
here but up a late hour in the evening had
not been able to return definite answer to the
proposal Mr. Ridgely, who is the choice Of the
Clearing House authorities for the office in
conference during part of the morning with the
Clearing House committee, and in the afternoon
held long consultation with A B. Hepburn,
president Of the Chase National Bank, and II.
P Dawson. vice-president of the First National
Bank. Mr.. Ridgely. when seen late in the day.
said that If he should accept the presidency Of
The Mercantile National he wanted TO be in
position where he could be in complete control
without any entangllng alliances In assuming
this position, IL was learned from other sources.
he is IN complete accord with the views of the
Clearing House committee.
The condition precedent to his taking the of
fee Il IS understood is the formation of
syndicate. acceptable to the Clearing House
committee, which shall take over a substantial
stock interest in the bank. Such syndicate has
not yet been completed, and upon the success or
failure Of the efforts to form it is understood TO
rest the question of the acceptance or declina-
ton by Mr. Ridgely of the offered presidency.
MORSE MAY FORM SYNDICATE.
Charles W. Morse it is credbly reported. Of
fered TO form a syndicate which should take
over IN the interest of Mr.. Ridgely the 6.0O0
shares Of the banks stock owned by Mr. Heinze
but this offer was not acceptable to the Clear
ing House. it is said, which is OF the opinion
that the best interests of the institution require
the elimination from it's control of the capital
fists who have of late been chiefly influential in
directing its policy.
At the meeting of the Clearing House COM
mittee yesterday morning were present Alex
snder Gilbert, president OF the Clearing House
Association and present of the Market and Full
ton National Bank; ]. Edward Simmons, presi-
dent of the Fourth National Bank; w. A. Nash,
president OF the Corn Exchange Bank; Dumont
Clarke president Of the American Exchange
National Bank and Edward Townsend. presi-
dent of the Importers and Traders National
Bank, the latter three being members of the
committee.
OTHER BANKS DISCUSSED.
It is understood that the condition of certain
other banks in this city was discussed at the
meeting. but so far as could be learned no def
mite action in regard TO these institutions was
taken. When seen later in the day Acting
Chairman Nash said:
The chief purpose Of our meeting this morn
ing was to consider the question Of assisting the
Mercantile National Bank. We found the bank
solvent and therefore decided 70 come TO its
assistance. AS a matter of fact, its condition
was rather better than We expected"
Mr.. Nash expressed the opinion that recent
developments had cleared the atmosphere. He
said emphatically that changes in several local
banks might be Of distinct benefit. The Clear
ing House committee met later in the morning
in conference with the Mercantile's directors.
Miles N. O'Brien, vice-presdent and acting
president OF the bank, said
THE banks affairs in excellent shape
and the Clearing House committee has reported
10 the board of directors to that effect Reports
that the Mercantile's surplus has been i'm
paired by the purchase or loaning Of funds on
non-negotiabIe securities are absolutely un-
founded. may say further that Mr.. Henze
has not disposed OF any of his stock in the
JaL-h WHICH sun StdIluS III MS HdiIle MI
RidgeIy called to-day and met the officials and
directors Of the bank"
REASON FOR DIRECTORS ACTION.
One Of the directors said yesterday: "At the
meeting Of the board yesterday the directors got
up. one after another and said that their great
est desire was TO do what was for the best in
terests Of the bank, and that in order to restore
its character-if il may be said that its charac-
ter has been damaged-it might be found ad-
visable TO install a new management. They
therefore thought II best 10 tender their resig
nations, with the object Of not hampering ar
rangements for the banks future. and did go
tender them, placing them at the disposal of the
president It was suggested that, resigna
tions Of directors are accepted only by the board
Of directors. the resignation Of the entire board
would create a complication so the matter was
held over At the meeting to-day Of the di-
rectors and the Clearing House committee the
directors again spoke OF the advisabilty of their
retirement and presented their written resgna-
tons to be held at the disposal Of the president
OF the Clearing House committee. They are
still directors"
+. Augustus Heinze, when seen at the Wal
dorf last night reiterated his statement that he
was in control Of the Mercantile Bank and said
further that he had not sold one share of his
stock in that institution
Mr.. Heinze appeared to be much perturbed by
the action of the Clearing House committee In
taking up investigation Of the affairs of the
bank. He said that the committee took upon
itself the task of examining the books of the
bank, knowing very well at the time it started
In TO DO that the institution was perfectly
solvent
The list Of directors who have handed in their