New-York tribune., 1907-10-19
DIRECTORS RESIGN.
Continued from first page.

committee, answered that no such dmand had
been made, but that the Clearing House com
mittee probably had suggested the step. He
continued: Knowing that the deposits had
fallen off from S19,OOOOOO to $11,OOOOOO since the
present management came into control of the
bank, and that the bank was a little short of
cash. and in view of the notorety. recently.
growing out of the United Copper episode, the
| directors thought 1t best to clean house and
| accordingly they resigned tentatively so as to
put no obstacle in the way of the rehabilitation
of the bank"
The Clearing House committee he con
tlnued, in answer to further questions found
the surplus impaired, but the capital of $4,000,
OoO intact The surplus is impaired because it
IS represented in part by what bankers call
SLOW notes. which are collateral not easily
marketable. 1t is next to impossible to estimate
with any degree of accuracy the extent of the
impairment, since estimates always differ con-
slderably as to the value of slow notes
When the Ninth National Bank got into
trouble years ago. for instance among the col
lateral found by the receivers were titles to
property at Marble Hill. north of Fort George
which seemed at the time of little value, but
which inside of two years was sold by them at
a very large profit"
The offer of the directors of the Mercantile
National Bank to resign in body, the banker
usual; and the fact that their retirement might
have been suggested by the Clearing House
committee did not warrant the inference that
that body had thereby made itself responsible
FOR the banks welfare, as the Clearing House
committee had no authority to ask or to accept
the resignation of bank director
MERCANTILE's SURPLUS
The surplus of the Mercantile National Bank
according to the bank statement OF last week,
stood at S5,O43,6OO. The bank had q debit bal
ance of $704,0 at the Clearing House yester-
day morning. and the aid given the institution
by the Clearing House yesterday amounted, it
is learned on good authority, to about 100000.
The Clearing House committee. according to
an officer Of n bank prominent in the Clearing
House Association. in its examination of the
Mercantile Thursday found loans of about
$2,0O0.000 TO the Heinze interests. Some of
these loans stood in the name of +. Augustus
Heinze and others, it is reported. in that Of
Max f. Schultze. of Otto Heinze & Co.
In the collateral for these loans. it is under
stood, were blocks of American Ice stock. Con-
soldated Steamship bonds and United Copper
stock. Mr.. Heinze. IT may be remembered. said
several days ago that the Mercantile National
accepted United Copper stock as collateral in
mixed loans.
BANK DEPARTMENT SATISFIED.
iner said yesterday afternoon said that that Of
flee accepted the Clearing House committees
findings on the condition OF the Mercantile Ma
tonal as correct. and not itself at present
examining the bank. The last examination had
been made month so ago. when the hank
had been found in practically the same condition
as that reported by the Clearing House COM
mittee. There more national bank exam
iners in the city just than ever before at
,E,Fr
examination of all national banks VIII be made.
and that in the future the inspection will be
more vigilant than has been the practice here
tofore.
L. w. Mott. the new State Superintendent OF
Banks. was In the city yesterday. He
nounced that he had appointed Benjamin
Haight. of New Berlin confidential examiner
in the department Mr.. Haight formerly IN
the Controllers department as examiner OF
court and trust funds; in his new position he
VIII be an examiner OF building and loan asso-
Citations.
MOTT KEEPING WATCH.
Mr.. Motifs secretary said that Mr. Mott was
keeping a close watch on the banks here Ru-
mors OF coming trouble among banking institu-
tions were current during the day, but none of
them could be verified. and In the late after
noon It appeared probable that there would be
no suspensions. This impression was reflected
where q recovery In prices was in progress dur
ing the final hour of business.
Justice Blanchard in the Supreme Court yes
te-day granted attachment for S1OS,OI5 81
against property Of the State Savings Bank Of
Butte Mont. in favor of the Mercantile Ma
tional Bank Of this city for balance alleged to
be due on d demand note of $1JO,00O made by
the State Savings Bank March ., 1907. The
Sheriff Is directed to levy any funds or prop
erty Of the State Savings Bank found in this
city Sullivan & Cromwell. Of No 40 Wall
street are attorneys for the plaintiff.
MERCANTILE STOCK SALES.
There was sale of Mercantile National Bank
stock on the curb shortly before the close Of the
market at 1S0 against the last previous quota
ton Of 1870 bid, 300 asked. 1t was quoted after
the sale at 175 bid, $50 asked.
The feature Of the trading the curb in the
copper and allied stocks a sale of $1,000
shares of United Copper common at II and $1,000
of the preferred at %, and drop of 30 points
in Guggenhem Exploration stock, which sold at
l20 against the last previous sale last week at
40. The last named stock offered at 12J
several times during the day. with no takers
1t sold as high as 300 last year and was sup
posed to be closely held by the Guggenheim
interests.
The changing hands of so much United Cop
per stock without breaking the price was looked
upon as the shifting of account. Gilliat
Schroeder offered the stock in blocks of 5000
shares and it was all taken by w. H. Burger
& Co. Stock Exchange house. 1t was doubt
less part of the Strengthening out operations Of
the recent attempted corner by the Heinzes
Hays & Hershfeld, counsel for Otto Heinze &
Co. made the following statement There will
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