Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-10-20
Railroads and Smelling Drop, but Not
as Much as Expected.
BANKS AFFAIRS ARE INVOLVED
Directors of Mercantile Bank Inclined
to Be Obstinate.
RDGELEY IMPOSES CONDITIONS
Comptroller of Currency Not Inclined
to Take Charge of InStitutiOn
Unless He Can Have
Free Rein.

7
tinct lull In the financial situation in this
city today. While the price Of metal
stocks declined, the losses were not SEN
sational and the prices Of railroad stocks
we're held better than had been expected.
The affairs OF the Mercantile National
! bank were considered again at a meeting
| OF the clearing house committee. While
no official statement was made those pres
/ ent permitted il to become known that no
conclusion had been reached as to the con-
tinuance of support to the Mercantile Ma
tional bank except from day to day. 1t
was reported, but not confirmed, that fur
ther assistance to the bank depended upon
the attitude of some of the directors whose
designations were demanded yesterday
1t was said that Charles w. Morse who
is heavily interested in the Mercantile and
several other banks in this city does not
feel that the designations of himself and
of his friends should be regarded as per-
manent.
RidgIeY Wants Free Hand.
perplexing situation today faced
the bankers and hnanciers who were
trying to straighten out the affairs
Of the Mercantile National bank and
to divorce It completely from any associa-
tion with F. Augustus Heinze, its former
president. with the resignation of its en-
tire board of directors I'm the hands OF the
clearing house, that institution appeared
to control the situation and was committed
to the task OF putting the bank on firm
footing For this purpose nine clearing
house banks had promised to contribute
900 each to tide the Mercantile over
any distress which it might encounter as
result of the suspension of Otto Heinze
Co. and F. Augustus Heinze's desire TO
re-estabiish that firm.
Public interest IN the situation lay in
the action to be taken by Comptroller of
the Currency william b. Ridgeey, whose
acceptance of the presidency of the Mer-
camille was still in some doubt. II was
understood early today that Mr.. Ridgeleys
decision depended upon whether he would
be allowed free hand in reorganizing the
bank and whether he would secure the sup
port of men whom he desired to back him
in the task.
Directors Prove Stubborn.
The clearing house commission held a
meeting today to consider the affairs of
the Mercantile National bank. II was re-
ported that there was a hitch in the ar
rangements as to the banks future. due, it
was said, to a refusal OF Charles w. Morse
and his friends to consider their resigna-
tions from the directorate as permanent.
The clearing house committee was in ses-
sion only short time. At the conclusion
of the session, Mr. shearer of the clearing
house, said the debt balance of the Mer-
camille National bank this morning was
s1,lOOOOO Mr.. shearer said there was no
doubt that It would be paid the greater
part by the clearing house banks
MIR. Shearer was asked the amount by
one of the reporters of the debit balance of
the National bank OF North America OF
which c. w. Morse is president. Mr..
I SheareT replied that 1t was about s25OOOO
The continuance of the Mercantile banks
existence depends largely upon its own re-
sources. The clearing house association, /;
4 was said early today, is not disposed tQ
render further assistance unless 1t shows
increased capacity to help itself. The feel
Il ing in influential quarters is that the bank
e may yet be compelled to go into liquidation
s but the depositors would be paid in full.
Copper Market Excited.
7. Opening quotations of United Copper com.
mon stock the Heinze property. in the curl
. today were at 10, as compared with clos
ing price of 1915 last night.
On the Stock exchange copper continued
under pressure. Amalgamated Copper
. broke 214 to 44b thus breaking through the
q low price touched yesterday, American
i Smelling fell III under yesterdays closing
III lne ufSL ndiI HOuIs OuL ulu not reach lu'
e low price of yesterday
Amalgamated Copper sold as low 1855
Violent rebounds followed. but the marke
continued feversh and nervous This ton,
persisted even after the bank statement
"a in spite of its superficial favorable char
acter The heavy increase in the cash iten
was attributed to precautionary measures
by the banks.
J. Stocks again declined In the final deal
N ings, with closing weak at the lowest o
" the day in most OF the active stocks, Th
F. closing quotations United Copper com
r. mon on the curb stock market was S7s bit
10 and ga asked.
,e f. Augustus Heinze said today;
g. II still hold a controlling interest I'm tn
'r Mercantile National bank. 1 have no
parted with a share Of my Mercantl
s. stock.
r Il would like to say this about tn
le clearing house committee: They were aske
Ie to come into our bank and make a thor
% ough examination. They found it per
sF fectly solvent, and said so. Later the
added that gratuitious blow about IN
- surplus impairment. You know why the
, did that-nothing more or less than [
induce our depositors to withdraw thei
" accounts. A fine game-they were en-
deavoring to attract deposits to their ow
institutions"