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The Minneapolis journal. (Minneapolis, Minn.) 1888-1939, June 28, 1901, Image 1

Image and text provided by Minnesota Historical Society; Saint Paul, MN

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83045366/1901-06-28/ed-1/seq-1/

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Result of Bank Suspension
in New York.
Wholesale Calling In of Stocks
Loaned to the Firm.
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
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
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
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.
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.
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
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.
A Mammoth Petition for Their Par
don Is Presented.
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
Loomis Convicted of Running
a Gambling-House.
A Stay Granted by the Court for
That Purpose.
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^\
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
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
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.
Hot Winds Reported to Have
Wilted Western Minn.
Rain Came Just in Time to
Prevent a Severe
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
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
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. :
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.
Burlington Officials Take Up
a New Study.
Gen. Sturgis Comes to Learn Hill's
Accounting System.
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
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-
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
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.
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' ■',—

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