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THE MINNEAPOLIS JOURNAL.
PRICE TWO CENTS. MUST THE NORTHWEST HELP NEW YORK BUILD THAT CANAL? MARQUAND & CO. ASSIGN Result of Bank Suspension in New York. f AILURE NO SURPRISE Wholesale Calling In of Stocks Loaned to the Firm. FATAL BLOW TO THEIR CREDIT lluniuand A. Co. Had to Bay Very Heavily in 'the Open Market to Cover. New York, June 28. —The failure of Hen ry Marquand & Co.. bankers and brokers, the name of which has been connected with the embarrassment of the Seventh national bank, was aaonunced on the stock exchange to-day. The firm made an as signment to Frank Sullivan Smith. The assignment was without preferences. No statement of assets or liabilities was made with the assignment. The failure was without appreciable effect on the stock market. Frank Sullivan Smith, the as signee, at once assumed charge. He con ferred with the members of the firm and began a systematic investigation of its books and impaired finances. Mr. Smith promised to make public-a statement later in the day. Frank B. Poor, partner in the house of Marquand & Co., said that Mr. Smith was in charge and that he would say nothing about the affairs of the firm. The formal suspension of the firm created scarcely a ripple of excitement. It had been an ticipated, for the events attendant upon closing of the Seventh National bank had let in a strong light upon the affairs of the firm. During the first fifteen minutes of trad ing on the stock exchange the following transactions were made for the account of the suspended firm: Five hundred shares Pennsylvania, 400 Ber gen County Gas, 300 American Car & Foun dry and 100 shares each of La Clede Gas pre ferred, Atchlson preferred and Kansas & Texas preferred, $7,000 par value of Missouri Pacific 5s of 1917 and 4.U00 Iron Mountain 5 per cent bonds. Other Banka Unharmed. At 10:30 o'clock Manager Doherer of tlie clearing house said all of the banks had cleared as usual and that no further diffi culty is anticipated in banking circles. Inquiry at the local office of the Pitts burg, Shawmut & Northern railway brought out an assurance that there would be no disastrous consequences as far as the railroad was concerned. "But did not Marquand & Co. finance the railroad?" was asked. "Oh, yes," was the reply of the official, "but they have the bonds and we have the money." He added that Marquand & Co. had merely handled the bonds of the road but did not control it. Henry W. Tuft, of the law firm of Strong & Cadawallader, attorneys for the asignee, made the first statement in behalf of the suspended house. He said: Speak* for the Suitpended. I cannot at this time give any figures on the liabilities and assets of Marquand & Co. We have as yet had no time to look over iho situation and It will be several days before a clear idea will be obtainable. Much de pends upon disposal of the securities, and particularly the inactive securities, held by the nrm. A general view at this time gives a very favorable impression, but, naturally, the great question is as to collateral held by the house on its outstanding loans. I believe thf creditors of the firm will fare very well unless there is a slaughtering of some of the Irn'l securities. I cannot say at this time anything as to the resumption of the firm. That will depend upon developments of the next few days. We will prepare a careful statement as to the affairs of the firm, but I believe It will take a couple of days to do it. The firm of Henry Marquand & Co. con sisted of Henry Marquand, who is the son of Henry G. Marquand, and Frank B.Poor, son of the former president of the National Park bank. Frank Smith, the assignee for Mar quand & Co., is vice president and gen eral counsel of the Plttsburg, Shawmut & Northern. Henry Marquand is first vice president of the company. Cause of Embarrassment. The admitted embarrassment of the firm In connection with the Seventh National bank failure resulted in the wholesale calling in of stocks loaned to them for de livery and they were obliged to buy heavily in the open market to cover. At the same time the actions of the clearing-house committee and the controller of the cur rency put official disapproval on securities in which the firm had large investments and which figured as part of the collateral 1n the loan of $1,600,000 from the Seventh National bank and which caused the sus pension of the bank. The disturbance in the stock market caused by the embarrassment and which New York City Officials Indicted New York, June 28.—Two indictments were returned by the grand jury to-day against Fire Commissioner John J. Scannell, charging him with neglect of duty. Another indictment was returned jointly charging Commissioner Scannell and Wil liam L. Marks with conspiracy. It is alleged that nearly all supplies for the fire department had been purchased through Marks. There are three counts in the indictment against Commissioner Scannell. One is a charge of evadipg the law and the other is for defrauding the city, and the third Is neglect of duty. The indictment against Marks charges him with connivance with Commissioner Scannell to defraud the city by selling inferior goods at the highest prices. It is also charged that the commissioner gave Marks excessive commis sions. Bail was fixed at $2,500 each and was furnished. Marlborough Oov. Gen. of Canada Urnw York Sun Spool ml Smrwlom New York. June 28.—A rumor is current here that the Duke of Marlborough Is to be appointed very shortly to the post of governor general of Canada, and the report is causing a good deal of discussion among the fashionable set, some of the mem bers of which are considerably worked up over the idea of the young American duchess reigning as mistress of Rideau Hall at Ottawa, in the place formerly occupied by King Edward's sister, the Princess Louise, Duchess of Argyll. More Armenian Massacres Likely mmw York Sun S/tvotat Smrvlmau St. Petersburg, June 2S. —Dispatches from Erzeroum state that great consterna tion prevails throughout Armenia on account of the recently reported seizure of a quan tity of cartridges-consigned to a well-known Armenian. The seizure was ordered by the customs authorities of Constantinople. This action is regarded as a njere pre text for murderous assaults on the Armenians by the Bultan's soldiery. Previous tb&s<acres have been foreshadowed by similar events. credit deprived them of resources to take advantage of these conditions. , The failure was expected all yesterday and caused no surprise.' Yesterday's late rally in the market was attributed to buy ing for their account to cover short con tracts. Terrible Shrinkage. One of the enterprises which have been financed by H. Marquand & Co. Is the gas depressed prices worked to the firm's ad vantage bo far as it showed profits on their contracts, but the blow to their and electric company of Bergen county. This stock, which is listed on the stock exchange, sold on Monday of this week for lulV*. compared with the high record price of 101% on June 19. The first sale this morning of 300 shares under the rule for the account of the failed firm was at 30 on a cash sale. Subsequently it sold at 32 for cash and at 30 and 45 the regu lar way. CHECKS KITED Trouble In Sight for the Seventh National Buuk'a President. Washington, June 28.—The failure of the Seventh National bank of New York is likely to be more serious in results for some of those connected with the bank than appears on the surface. Money has been loaned to three times the value of the capital, the surplus and undivided profits, on securities of uncertain value. Checks have been kited by the certification of President Kimball, who seems to have been the usual one man running a bank that gets into trouble. The amount in volved in loans which has brought the bank under the disapproval of the con troller of the currency is $1,600,000. The check certified by the president of the bank to Marquand & Co. was for $300,000, on the risk of having that amount made good before the close of banking hours. The certified check was kited by a check, for a like amount on another bank. For the kiting of the Marquand check Former President Kimball may have to deal later with the department of justice. For loaning money on securities not fully matured the directors will have them selves to blame. The gravity of the fail ure is emphasized in the fact that the capital of the Seventh National bank is $3uu,uOO and the surplus and undivided profits are $234,000. The transaction for which the bank has been closed is more than three times this amount. HEATH OtSTED Brother of Perry S. Jfo Longer Bank Vice President. Hamilton, Ohio. June 28.—Following the failure of the Seventh National bank of New York the directors of the Miami Val- I ley National bank of this city reorgan- I ized the institution by ousting Vice Presi ! dent Fletcher Heath, who had been acting i president of the institution. The direc tors then selected E. W. Whitaker as president and Cashier Bake as vice presi dent. Helena Firm Lo»e» Heavily. Special to The Journal. Helena, Mont., June 28.—The A. M. Holter Hardware company, of Helena, was caught for $26,000 by the failure of the Seventh Na tional Bank of New York. FREE THE JOUNGERS A Mammoth Petition for Their Par don Is Presented. ARCHBISHOP IRELAND SIGNS The Petition Will Be Considered by the Board of Pardons July 8. George M. Bennett, the Minneapolis at torney, called on Governor Van Sant this morning and presented him with the Younger problem in the shape of a mon ster petition for the parole of the fam ous brothers. It is an extension of the old petition which was signed by Senator Davis. The last name on it is that of Archbishop Ireland. Mr. Bennett called on the distinguished prelate this morning and presented the petition, which was promptly signed. The petition calls for a pardon, but will be used In the campaign for a parole un- | der the provisons of. the Deming law. Mr. Bennett will appear before the board i of pardons at their next meeting, July 8, and speak in support of the parole ap plication, which has already been in dorsed by the board of prison managers. Two Technical Qnegtions. There are two technical questions to be passed on before the board takes u£ the case on its merits. One is, did the bill legally pass? It will be remembered that the house called the bill back, and that it was never signed by the governor. It is | printed in the laws, but the legality of its course has been ciuestioned. The other question is the one raised by Chief Justice Start when the bill was in the governor's hands: Dcs the bill impose on governor's hands: Does the bill impose on warranted by the constitution? Should the chief justice raise this point, he will probably not have to act under the bill, as according to all precedent paroling is not an exercise of the pardoning power, which is the only extra Judicial duty the j constitution.imposes on the chief Justice. Hamilton, Bermuda, June 28.—The Brit ish transport Armenian, havljig on board the first shipload of Boer prisoners to be quartered on Darrels and Tuckers island here, arrived in these waters to-day. It is rumored that there is much sickness on board. FKIDAY EVENING, JUNE 28, 1901. IN SPITE OF THE POLICE Loomis Convicted of Running a Gambling-House. HE'LL TAKE AN APPEAL A Stay Granted by the Court for That Purpose. GAMBLERS USED CHIEF'S OFFICE Their Ag-eut Made Propositions for (ouipromUe While at the City Hall. Charles Loomis was this morning con victed of maintaining and operating a gambling house at 113 Washington avenue S, and was fined $75 or eighty days in the ililli^ NNNNx r^\ WHAT IN THE WORLD IS UNCLE MARK UP TO? workhouse. The gambling property con fiscated by the deputy sheriffs, which was introduced in evidence in court, was or dered destroyed immediately. Its esti mated value is nearly $1,000. The attor ney for Loomis secured a stay of thirty days and will appeal the case. Deputy Sheriffs Testify. When the trial of Loomis was reopened before Judge Holt this morning Deputy Sheriffs Anderson and Wald told of their visit to the gambling house on June 25, when Loomis was arrested, and the para phernalia confiscated. This property, con sisting of a roulette wheel and table, a faro outfit, poker and crap tables and a large quantity of chips and playing cards, was brought into the court room. Mr. Larrabee objected to its introduction in evidence, but was overruled. Mr. Anderson described the arrest and said that Loomis, while leaving the place with the officers, said that he would like to save two eets of chips which "had cost him $35 and $40." This was the first piece of evidence tending to show the ownership of the property in the raided house. Gamblers' Agent T«ed Chief's Office. Josie Christians, the sister of the com plaining witness, told of her visit to the gambling-house with young Christiana when they asked restitution of the money lost. She told substantially the same story as the complaining witness of their two or three visits ther and the con versation with the attaches of the place. In addition she told of the attorney for the "house" who wanted to conciliate the Christians by the payment of $50. The in terviews with the chief of police and the mayor's secretary were also recounted. She said that it was in the office of the chief of police that she again met the attorney for the Rambling-house. There the attorney offered to "give them an other chance" and said he would pay her $75 to drop the case. This was refused. Subpoena, for Kbert. At this point the state announced that it was reasonably certain that they knew the attorney for the house, and that a subpoena had been issued for Charles Kbert in this connection. The clerk said that Officer Washington Pierce had re ported that after diligent search he had been unable to find Kbert. The state ex pressed its desire to have the testimony of Ebert introduced. "But to be frank," said Assistant City Attorney Waite, "I have not much confidence that he will be found." Mr. Larrabee moved for the dismissal of the case aeaiust Ijoomia on. the ground that the evidence Introduced did not show, because there was a house used for gambling purposes at 113 Washington ave nue S, and even that Loomis had owned chips in the house, that Loomis main tained and operated that gambling-house. Judge Holt denied the motion. Loomis was found guilty and was fined $75 or eighty days and costs. Upoli petition of Attorney Larrabee a stay of thirty days was granted looking to an appeal. Judge Holt ordered the paraphernalia destroyed forthwith. Great Police Investigation. Assistant City Attorney Waite has been so overwhelmed with work during the past few days that he has not been able to give his undivided attention to the in vestigation ordered by Judge Holt. He has, however, done everything that could be expected under the circumstances, and has called in, one by one, the police offi cials under suspicion, the employes of the clerk of the municipal court and the dep uty sheriffs who had a hand in the raid of Loomis' place. Clerk Allen of the municipal court has also been asked to state his information. The information gleaaed in this man ner must necessarily be about the same as that which has been published, and unless something unexpected develops It is prob able that the report of the city prosecu tor will be made not later than Monday, perhaps to-morrow. CROPS DAMAGED Hot Winds Reported to Have Wilted Western Minn. Grain. Rain Came Just in Time to Prevent a Severe Loss. The first damage to the crop by hot winds is reported from western Minne sota. For a distance of fifty miles along the Minneapolis & 'St. Louis road, from Boyd, Minn., to Revlllo, S. D., the fields were swept by a prairie simoon Tuesday. The thermometer at one point registered 110 early in the day. Traveling men say that the wind" came like a blast from a furnace and completely wilted the grain. The following day the weather was cool er and rain came to the rescue, making a combination that saved much of the grain from destruction and it is now thought that the damage will not be great. W. H. McWilliams, superintendent of the elevators of the National line, is back from a trip through North Dakota. He says that crop prospects generally are as good as they are painted. There has been too much moisture in places, es pecially in the country directly north of Fargo. Flax is backward, the result of too much cool weather earlier in the sea son. Grain men are of the opinion that the number of harvest hands will be Buffl clent to take care of the crop. Advices from Michigan, Illinois and other eastern states which have always sent a large number of men to the northwest, say that the movement will be large this year. The farmer is very solicitous about the hay crop and is anxious to see the men arrive early. Charles Wells, of St. Louis, who has been making a tour of several of the northwestern states for information on the flax crop, says that although flax is backward in North Dakota the yield will be big, and that North Dakota will lead all states in flax production this year. : DUTCH CRISIS Cabinet Resigns Became of Adverse Election Result*. The Hague, June 28.—The cabinet has resigned In consequence of the recent elections by which the government sup porters lost thirteen seats. HILL'S IDEAS THEIR TEXT Burlington Officials Take Up a New Study. 'COMMUNITY'IN EFFECT Gen. Sturgis Comes to Learn Hill's Accounting System. IT IS THE ESSENCE OF ECONOMY Being a Careful Statistical Record on All Phasen of Railroad Operation and Expense. Actual work toward unifying the Great Northern, Northern Pacific and the Bur lington systems has commenced. The first step was taken Tuesday, when General Arthur Sturgis, of the Chicago, Burlington and Quincey railroad system, came to St. Paul to learn President Hill's system of accounting. Mr. Sturgis' pres ence in the city was unknown save to a few railroad officials who met him at the Minnesota club. He returned to Chicago last night and it is understood, will im mediately arrange for the introduction of the new method of accounting over the Burlington system. The visit of Mr. Sturgis, it is said, was not without some embarrassments to him, as it not only involves the abandonment of a method which he has been years in building up on his own system, but it involves the accepting of instructions and information from a much smaller system, for the Great Northern's gross earnings are only half as large as the Burlington's, and its mileage is in about the same pro portion. Hill's Statistical System, Mr. Hill's pet system, which was adopted by the Northern Pacific as soon as Mr. Hill's influence was felt in the affairs of that company two years ago, is in reality a system of statistics, whereby monthly comparisons may be made to show in crease or decrease in every branch of the operating department. It has little or nothing to do with traffic, but is confined almost exclusively to figures dealing with actual cost of running the road. It makes division superintendents responsible for economies in operation, maintenance, con struction, betterments, train service, and, in fact, everything coming under the head of operation. Cost of transportation, cost of maintenance of stations, wages and I economies therein —all matters are j watched by the division superintendents, who tabulate the results each month. The divisional statistics are then sent to the auditor of distoursments and he in turn dissects them Into their various classifications for the use of the president and other officials. In this way any proper official of the company may at any time tell how much more or how much less the operating expense was for any stated month, in any branch of the department, either purchasing, construction, operating or maintenance. System Promote* Rivalry. The system also promotes rivalry among division superintendents, for. it is well known that the superintendent making the best showing always stands highest in Mr. Hill's favor. The aim of every system of railroad is, of course, to operate full trains' with full car loadei, as this makes a tremendous difference in operating expenses. In the one item of coal consumed and the cost thereof, the workings of the Great Northern system may be shown to advan tage. The problem of railroads is to run the largest ton mile 9 pe* ton of coal, as fuel is the heaviest item of ooeratinje ex- 16 PAGES-FIVE O'CLOCK. GREAT WATERWAY ACROSS NEW YORK Proposition That It Be Made at the Expense of Every State in the Union. Northwestern Congressmen to Agree Upon This Scheme to Transport Western Grain. Albany, N. V., June 28.—Mr. Bond, state engineer, is authority for the statement that a few days ago he received a visit from two engineers, who brought him & let ter of introduction from Mr. Hay, secretary of state. These gentlemen said the ob^ ject of their visit was to secure a copy of Mr. Bond's recent elaborate report upon the probable cost of constructing a barge canal across this state, and other statistic* bearing upon that subject in his possession. They stated that practically every state in the northwest was in favor of the con struction of a larger canal over this state for the sake of lowering the cost of trans portation of wheat and other western products to eastern markets. The failure of the canal men of this state last winter, however, to come to any agreement upon a plan for canal Improvement was discouraging to western shippers, and therefore they now thought an appeal should be made to congress to improve the canals of New York at the expense of every state in the union. The western engineers said that it was believed west that a 21-foot canal should be built from Buffalo to Lake Ontario and then from Oswego, on Lake Ontario, to the Hudson river. A canal of 21 feet depth would cost about $300,000,000. The United States, the western engineers said, would have to undertake it. New York state could not be expected alone to accept such a financial burden. <$> Further, the western visitors said that before congress met again, <S> <3> in their belief, the congressmen from the. states of Indiana, Illinois, <£> <$> Wisconsin, Minnesota, lowa, South Dakota, Nebraska and North Da- <i> <s> kota would come to an agreement upon a policy of canal improvement <»' <$> to be undertaken by the United States government, and that this policy <6> <§> would include a 21-foot canal from Lake Erie to Lake Ontario, and <£> <«> from Lake Ontario to the Hudson river. <s> Runs on Banks in Saxony &j*w York Sun SgtttclmlSepvlom ■ ":''■.■'-.] '"' ■ ''..-..■ [. , .'■ ..•//.'■- ■...'■'. S^ Berlin, June - 28.—The excitement throughout Saxony over the failure of the Leip- j ziger bank ia stm unabated. There is a run on private banks throughout the king dom. There are rumors on the bourse here of the impending failure of various in dustrial and commercial undertakings connected with the Leipziger bank. -• V - • : Leipsiz, June 28.—Dr. Gentzich, another director of the Leipzeiger bank, w*a arrested to-day at the instance of the public : prosecutor. ;' c . Bryan's "Note" to Followers Special to The Journal. Lincoln, Neb., June 28.—Mr. Bryan issues a note of advice to his followers in. thl* week's Commoner. He says: Do not allow a man to be placed upon any committee, precinct, county, state or national, unless he is a believer in the Kansas City platform. If a man opposed to the Kansas City platform is sent as delegate to any con vention, he should be bound by instructions and should have associated with him a sufficient majority who are sound on the platform. If a man objects to instructions, leave him at home; no democratic delegate will object to an expression from the voters whom he seeks to represent. The reorganizing element seeking tosecure control of the party does not openly proclaim its hostility to the Kansas City platform, nor does it pro pose a platform for the consideration of the voters. Its plan of operation is to put forward candidates for the party organiza tion who are not in harmony with the principles or purposes of the party. They work under cover of a desire for harmony, but it is the harmony which the burglar desires when he hopes that the members of the family will not awake until the valuables are removed from the house. The democratic party has made its recent campaigns, beginning with 1896, al most without money, and yet the party has polled a larger vote than U ever polled when it had a large campaign fund. If the men who deserted the party in 1896 or in 1900 are put at the • head of the party before they give evidence of change of heart, they will drive more voters away from the party than they will bring to it. Tragedy Ends in a Wedding Special to The Journal. Fergus Falls, Minn., June 28.—The happy culmination of what threatened to be ft serious tragedy took place at Pelican Rapids this week in the marriage of Bernt L. Ophus and Miss Tilla Sjogren. Two years ago the young lady wished to break off the engagement, and returned Mr. Ophus a ring which he had given her. The two were attending a Fourth of July picnic at the time, and the young man, feeling that life was not worth living, retired to a secluded spot and endeavored to commit sui cide. He shot himself in the breast, but the bullet struck a rib and glanced off. The crowd rushed to his rescue, but he stood it off and sent another bullet into his body and fell unconscious. Medical aid restored him to health, the young lady repented of her refusal and the wedding followed. Danish West India Sale Coes Mmw York Sum Saaolm/ Smrvfom, Washington, June 28.—State department officials assert that a treaty for the ac quisition of the Danish West India islands by purchase will be submitted to con gress next winter. It is now undergoing final touches and will soon be complete. Mr. Swenson, the American minister to Denmark, has held several long con ferences with Acting Secretary Hill recently, and the Danish minister, Mr. Brun, is also a frequent visitor. The negotiations are understood to have progressed beyond the point where there is any serious danger of failure. U. S. Flouring Mill Co. Foreclosure New York, June 28.—Decrees of foreclosure of the mills of the United Stateg Flour Milling company have now been entered in all states and districts with the exception of the southern district of New York, where a decree will be entered July 1. It will then be necessary to advertise the sale of the properties so that it will prob ably be six weeks before the various plants of the old company can be turned over to the Standard Milling company, the successor corporation. In the case of the Hecker- Jones-Jewell Milling company, which is also in the hands of a receiver, & foreclosure will not be necessary, because that company is in a solvent condition," and it Is ex pected that the receiver will be discharged at an early date. pense. It is one of the most uncertain fea tures of railroading, as the direction of the wind, the weather, quality of coal sup plied, condition of track, number and steepness of grades, etc., must all be con sidered. The superintendent who can get the best results out of these conditions and whose statistics show the wisest economies is the most successful. In the Great North ern system of accounting, the president can tell at a glance the average number of ton miles per ton of coal on every divi sion for every week in the year. COMING TO MINNEAPOLIS. , Special to The Journal. ; Sioux City, lowa, June 28.— T. ■H. Green.-lor many : years secretary of th» Tolerton & Stet son : company, wholesale grocers, of this city, will go to Minneapolis Boont to , take charg* of the business of the \ Dunham '. &;■ E*«tmaa company, which .he > has * recently ' purchased. He goes into possession July 1.: ' - f , ■■'".■;' ' • • ;'i' ■',—