Morning Oregonian., June 28, 1901, Page 2, Image 2

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THE MORNING OKEGONIAN, FRIDAY, JUNE 28, '1001
BAK' CLOSED, ITS DOORS I
SEVENTH, JTATJOXAL, .. OF lfJW
YORK, IX HANDS OP EXAMINER.
The Difficulty Was Due to La rare
Advance Made on. Security of
an Jtfnxnnrjcetable Character.
NEW YORK, June 27. The Seventh Na
tional Bank of New York closed Its doors
shortly after 11 o'clock this morning The
Controller of the Currency appointed a
National Bank Examiner as temporary
receiver, and the directors immediately
took steps to reorganize the institution.
The failure of the bank was precipi
tated by the Inability of its management,
after the refusal of the Clearlng-House
to come to its aid, to comply with the
conditions Imposed upon it -by the Gov
ernment officials In the Controller of the
Currency's department la "Washington;
also by the enormous withdrawal of funds
by country banks which kept their ac
counts with the Seventh National. The
direct cause for the suspension was the
-inability of the ba.nk to pay its .debit bal
ances at the Clearlng-House. This:, debit
balance amounted" to $664,109. The cause
-of its debit at the Clearlng-House,' which
aggregated $946,474 against its credit
thereof of xmly $302,365, was the receipt
through the banks of this city of large
checks drawn by country bankers on the
Seventh Is atlonal drawn because of the
rumor of weakness that had been abroad
for some days. The Clearlng-House com. '
mlttee met early this morning, and a de
mand for prompt settlement was made
on the Seventh National. The directors
of that .j institution decided It would be
impossible to meet the demand. The
bank then suspended payment.
On Tuesday, It seems, the bank was
notified by Controller Dawes that he had
been informed that Henry Marquand &
Co,, of this city, had a loan approximat
ing $1,600,000 In the Seventh National, and
.unless the loan was taken up and cash. de.
.posited for it in the bank by Saturday,
he would appoint a receiver. Marquand
& Co. were unable to meet the demand,
and the receiver was appointed today.
The future of the bank is In doubt. It
is said the depositors will lose nothing.
Perry S. Heath, ex-Assistant Postmaster
Qeneral, and his brother, Fletcher S.
Heath, are interested in the bank to a
considerable extent, and are members of
the board of directors. Members of the
Clearlng-House committee say that no
other banking-houses will be affected.
Marquand & Co. announce that they will
continue business. The bank was the de
pository for postofflce funds In this city,
Taut the department Is said to be amply
secured.
After the suspension of the bank the
following statement was made at" the
Clearlng-House:
"At the Clearlng-House this morning
the Seventh National Bank came in debtor
lor 5644,108 95. The Clearlng-House co'm
mlttee has been In session since 9:30,
.awaiting the results of the clearings.
When It was found the debit balance was
so heavy the committee communicated
with the officers of the bank and was In
formed that the board of directors was in
session and that a decision would be ar
rived afwithln 15 or 20 minutes as to the
action of the bank. In consequence of this
statement the clearings were held back 30
minutes. At 10:45 A. M. Nelson Cromwell,
with Edwin Gould and Mr. Thomas,
.president of the- -bank, came Into the
Clearlng-House and informed, the com
mittee that in, view of. -their heavy debit
balance and for other reasons It was con
sidered wise that the bank should tempo
rarily suspend. The Clearlng-House com
mittee thereupon directed the manager of
that institution to eliminate from the
clearings all operations of the Seventh
National Bank."
A member of the Clearlng-House com
mittee says that at this morning's meet
ing the name of.no institution other than
the Seventh National Bank was re
ferred to.
The -Seventh National Bank was the
custodian of the funds of the New York
postofflce. Assistant Postmaster Morgan
said:
'The postofflce Is amply protected.
HVhen the account was opened the bank
put up 4250.000 in Government bonds as
security. The present state of the post
offlce account with the bank I do not
know, t)ut I am investigating It."
At 11:20 o'clock the officials of the em
barrassed bank posted the following no
tice: "Checks drawn by the Manhattan State
HPspltal'will be paid at the Chase Na
tional Bank. Drafts drawn by St. Law
rence County Bank, Canton, N. Y., will
be paid at the Chase National Bank."
The Seventh National Bank was orig
inally the old Seventh Ward Bank, and
was established In 1S33. For a long time
control of the institution was held by
John A. McAnerny. a Southerner, who
was president of the bank. In May, 1898,
changes In the directorate being made at
the same time. Joslah Qulncy, of Bos
ton was one of the directors elected.
August 2. 1899, Mr. McAnerny resigned
the presidency and Vice-President Kim
ball was chosen in his stead. Fletcher S.
Heath was elected vice-president. The
officers and directors are as follows: E.
R. Thomas, president; Fletcher S. Heath,
vice-president; George W. Adams, cashier;
directors, George W. Adams, Eugene BIs
eell, Thomas M. Boyd. Fletcher S. Heath,
Perry S. Heath, Ersklne Hewitt, William
H. Kimball, Alexander McDonald, Guy
Q. Major, William P. Orr, Joslah Qulncy,
Frank Ht Raey, John A. Sullivan, W. H.
Taylor, Samuel Thomas.
It was said this afternoon that the
Seventh National has quick assets of
about $1,500,000. It was further reported
that the depositors will not lose anything.
Shortly after 1 o'clock Frank B. Poor,
of Marquand & Co., announced that his
firm was in much better financial posi
tion than it had been during the morn
ing. This was taken as an inference that
the firm had received assistance, but Mr.
Poor would pot talk on that subject.
Mr. Cromwell said the bank could have
paid its debit balance in the .clearing
house today, but that the bank officers'
Advice closed Its doors, as it would not
have been right to receive the money of
depositors during the present unsettled
condition df affairs. Guy G. Major, for
merly president of the American Iilnseed
OH Company, is one of the directors of the
Seventh National. He said it would be a
couple of days before it would be known
whether the bank could ever resume busi
ness. "Not a depositor will lose a dollar,''
said he. "Whatever the stockholders lost
ihey are able to lose, and will accept their
losses, with smiles."
Another director said 'that the bank
would be reopened in eight days. " Adver
tlsements were printed in the afternoon
papers offering to buy Seventh National
Hank stock. The offer was made by a
broker, who said he was acting for Gen
eral Thomas.
Marquand & Co. were prominent in tha
flotation of the Pittsburg, Shawmutt &
Northern Railway Company, of which
John Byrne is president, and Henry Mar
quand -vice-president. When Mr. Byrne
was seen late this afternoon he was asked:
' "Are Marquand & Co. likely to be seri
ously injured by their large holdings in
the Pittsburg, Shawmutt & Northern Rail
way, and In case of their difficulty by
reason of .this. Is. there any loss likely to
result fa the bond and stockholders?"
"Mr. Byrne said that he could not see
how any loss could possibly occur.
'The road," he added, "passes through
an old section of country having a large
population. In addition to this, large
manufacturing Industries are on its line
of" road. Th road also owns and controls
3S.000 acres of choice coal lands, from
which coal Is being taken from 13 col
lieries, producing about 3500 tons of coal
a day. Six new mines will be opened
this -Summer, and" lay next year we will
have a 'producing capacity of SOOO tons a
day. The railroad is "built lri first-class
manner, with 85-pound steel rails. Is well
equipped, having 2500 coal and other
freight-cars, in addition to Its passenger
equipment. The property cost about
$6,000,000, all of which It Is abundantly
able to take care of, and Is worth at least
$10,000,000. The property Is not for sale.
Large silent Interests In the property
united with abundant capital are ready
to take it from Marquand & Co. and
continue the development and complete
the road on the original plans. The Iron
Mountain Railroad, promoted, owned and
built by "Marquand & Co., Is today one of
the most valuable links In the Gould sys
tem. In view of that success, the present
house of Marquand & Co. were certainly
justified In taking up a very much more
promising property."
Postmaster Vancott has been instructed
to deposit the money order funds for the
present In the Subtreasury, and a new
depository to. take the place of the sus
pended bank will be determined on by
Postmaster-General Smith In a few days.
The postmaster is not permitted to let the
money order balance In the bank exceed
$300,000, arid In cotripllance with the re-
quirements he forwarded to the Treasury
last Tuesday $110,000 excess.
William Nelson Cromwell, special coun- j
sel for the bank, gave out the following
statement for President Thomas, and 1
added that he was engaged in preparing
a plan for reorganization of the affairs
of the bankt and that it was believed a
satisfactory plan would be presented at
an early date:
"Edward Thomas, president of the Sev
enth National Bank, stated that the dlf
cultles of the bank were due solely to the
making by the previous executive offi
cers of large advances to Marquand &
Co., and that the security thereon was of
an unmarketable character, although of
considerable intrinsic value; that upon
the urgent application of the board, he
and his associate, Edwin H. Gould, had
furnished financial assistance upon ade
quate securities, and upon the assurance
that the obligations of Marquand & Co.
would be made good by this morning;
that the firm named had, however, failed
to fulfill expectations, and, while he and
Mr. Gould and some of the directors were
willing to furnish further financial aid,
It was not deemed by them as just either
to the depositors, stockholders or the pub
lic to invite deposits and credit until the
affairs of the bank were again placed
upon an absolutely safe basis; that for
this purpose reasonable time was neces
sary, and, to prevent unfair preference or
advantages, the board determined, with
the advice of the counsel, to suspend the
operations for the present."
During the afternoon an Informal meet
ing of officers of important banks was held
at a down-town club and the suspension
pf the Seventh National and Its rela
tions with other financial institutions was
thoroughly discussed. A tacit understand
ing that all Interests should be protected
was arrived at.
"No one else," said one of the conferees,
"W.H1 be allowed to fall. No Institution,
I may say. Is in peril, but measures have
been devised to give ample protection.
We have got this Incident out of the way
and X see no danger ahead. The Seventh
could expect neither aid nor sympathy
from the associated banks."
The Times will say tomorrow (Friday)
that from sources having absolute know
ledge of the facts it was ascertained be
yond peradventure that General Samuel
Thomas, who Is 111 at Dobbs Ferry, ad
vanced the $983,000 to settle the debt bal
ance of the Seventh National at the clearing-house
Tuesday. It was also estab
lished that $200,000 was advanced by Edwin
Gould to help the bank. What security
the lenders received could not be learned.
STATEMENT BY THE CONTROLLER
Failure Due to Heavy Loans Made
on Doubtful Security.
WASHINGTON, June 27. Controller
Dawes today ordered the closing of the
Seventh National Bank of New York and
appointed Forest Raynor, bank examiner,
temporary receiver. Later the controller
made the following statement:
"Controller Dawes stated that on Tues
day he. received word from the National
Bank Examiner that Henry Marquand &
Co. had recently become Indebted in a
sum approximating $1,600,000 to the Sev
enth National Bank of New York, which
was secured by collateral of a doubtful
nature. Upon receipt Wednesday of
further information regarding the nature
of the collateral securing the loan he
sent a telegram, to Mr. E. R. Thomas,
president of the Seventh National Bank,
as follows:
" 'I have just received Information from
the National Bank Examiner that Henry
Marquand & Co. have loans of large
amount In your bank, approximating' $1,
600,000. Unless promptly and satisfactor
ily assured that this loan will be taken
up and cash therefor put Into the bank
by Saturday night, June 29, I will ap
point a receiver for the bank. Please con
fer with your board of directors and an
nounce this to them.'
"In explanation of- the conditions im
posed, the controller stated that while ad
vances had been made by the directors to
the bank, they had been made upon the
credit of good securities owned by the
bank, but that no such advances affected
the bank's solvency while the Henry Mar
quand paper remained. It was necessary,
therefore, in the performance of his duty,
promptly to Impose these conditions be
fore further withdrawals of deposits were
made. The controller stated that the
Marquand loan Is partially secured, and it
Is hoped that the loss to the depositors
will not be large."
Controller Dawes say there is no pos
sibility of the Government losing any
thing by the doping of the Seventh Na
tional. The. following Is the statement of the
resources and liabilities of the Seventh
National, as shown by the report of Its
condition at the close of business April
24. 1901:
Liabilities
Capital stock $ 300,000
Surplus and undivided profits 234,406
Circulation outstanding 29S.500
Due to trust companies and sav
ings banks 412,727
Due to National banks and bank
ers 974,210
Individual deposits 5,238,03$
United States deposits 210,383
Total liabilities .$7,668,265
Heeources
Loans and discounts $2,767,179
Stocks, securities, claims, etc.... 133,332
U. S. bonds and premiums 571,474
Banking-house 5,000
Cash on hand and with other
banks 4,191,279
Total resources $7,68,265
Caused Surprise to Perry Heath.
'SALT LAKE CITY, June 27. Ex-First
Assistant Postmaster-General Perry S.
Heath, when shown the Associated Press
dispatch announcing the suspension today
of the Seventh National Bank of New
York, said that the action of the officials
waB a surprise to him.
"I received two telegrams this morn
ing," .said Mr. Heath, "both of which
stated the bank was in good condition
and had plenty of funds on hand. I can
not Imagine what kind of a snarl they
have got Into. Of course, there are out
standing loans, but so far as I know they
are of the gilt-edged kind, and the b'ank
has had no outside entanglements.
"No, the bank has no stock accounts that
I know of. The men In control are among
the best and shrewdest In the financial
world, and I am confident the affairs of
the institution will be straightened out
quickly. I have not the slightest Idea
what has brought about the suspension.
It is a great surprise to me."
No Final Decision Yet.
MUNCIE. Ind., June 27. Fletcher S.
Heath, vice-president and one of the
largest stockholders In the Seventh Na
tional Bank of New York, telegraphed
his brothers and parents here today with
reference to the closing of the bank. He
stated that the final action of .closing
the bank will not be decided upon until
matters which have arisen unexpectedly
have been adjusted, but that the credit of
the bank and that of the stockholders will
not be permanently affected.
SUPPLIES FOR THE NEEDY
RELIEF TRAIN REACHES KLK
HORIf FLOOD DISTRICT.
Railroad and Telegraphy Situation
la Good The Storm In Tazewell
County, Virginia.
BLTJEETELD. W. Vo,, June 27. The
railroad and telegraph situation tonight
Is good, considering the second wash
out of last night. The laborers,' number
ing 3000, repaired all washouts for tem
porary use as far as "Vivian, the point
reached yesterday. The relief train has
reached Elkhorn and supplies are being
furnished to the needy. Railroad officials
at Bluefield say the road will be opened
for traffic Saturday night. Many desti
tute families are leaving the field.
The complete list of the dead, as they
have been found and as compiled by the
Bluefield, Dally Telegraph, is as follows:
John Lewis.
. Mrs. Nellie Smith.
Anna Smith.
Mrs. McKay.
Mary .May.
Charles Shelley.
. Sam Polndexter.
John Ballard.
Bettle Brown. 7"
William Trigg.
Jacob Rlfiln. , . .
John Bannister.
Mrs. Mary Foller.
L. B. Christian.
Mrs. Bertha Anderson and two small
children.
William Cheatham.
Guy Gaines and wife.
A. L. Beverly and wife., '
Unknown white man, minus head.
John Van Dyke.
Edward Van Dyke.
Mrs. John Hookes, two children.
P. B. Blankenshlp.
R. J. Beaver.
F. W. Booth.
Paris Craig.
Unknown man and boy.
This list numbers 34, and It Is believed
that as many more bodies are still In the
debris and driftwood.
THE FLOOD IN VIRGINIA.
Loss of Life in Tascwell County
Greater Than First Reported.
ROANOKE, Va., June 27. The flood of
last night at Pocahontas did hot cause
any loss of life, so far as Is known.
The most damage was to railroad tracks.
The storm in Tazewell County seems to
have been worse than at first thougnt.
Dryfork, which has been entirely cut oft
from outside communication since Sat
urday up to this time, has added three
more victims to the death list. Their
names are: Booth, Beavers and Blanken
shlp. The unfortunate men were at the
hom.e of young Booth, a son of one of
the drowned men, and were trying to save
the household effects when the house was
torn suddenly from its foundation and
carried down the stream.
The body of Mrs. Hopper, the section
foreman's wife, who with her two chil
dren was drowned at Pounding Mill, was
recovered two miles from her home, lodged
in a tree. The body of a Mr. Tate was
also recovered. The damage in Taze
well County Is estimated at all the way
from $125,000 to $700,000
News reached Tazewell last night of
the finding pf two unknown persons in
an enormous drift below Rlchlands. They
are believed to be father and son. The
list of dead so far as known at Tazewell
follows:
John Van. Dyke.
Edward Van Dyks, '
Mrs. John Hboper.
Two children of Mrs. Hooper;
. Tate. ' ,
. Blankenshlp. ', ..
. Booth. . .
. Beavers and son.
Paris Craig, colored.
Burying the Dead.
DAVIS, W. Va., June 27. The burying
of the dead from Saturday's flood con
tinues. It Is impossible now to Identify
any bodies recovered. Three more bodies
were found last evening on Jacobs'
Branch, a tributary of Dryfork. Thou
sands of laborers are now' at work in
the vicinity of Welch making repairs to
the Norfolk & Western roadbed and the
tracks. A conservative estimate of the
loss of life along both the Elkhorn and
Tug Rivers Is about CO.
Temporary Tracks Washed Atvay.
BLUEFIELD, W. Va., June 27. Infor
mation was obtained today that the dam
age done In last night's flood was consid
erable. The temporary tracks laid from
Ennls to Vivian were badly damaged.
Trains are running only to Coopers to
day. Destitute miners with their wives
and children are walking out of the val
ley. It Is not believed that any lives
were "lost In the second flood, as the peo
ple took to the mountains early enough
to make good their escape.
INDUSTRIAL STRUGGLE.
German Writer Discusses Ameri
can War of Trade Conquest.
NEW YORK. June 27. A dispatch from
Washington to the Times says:
Consul Mahln, of Elchenberg, Austria,
has sent to the State Department an arti
cle recently contributed to the Munich
Allgemelne Zeltung, by Dr. Alexander
von Peez, under the title, "The
Struggle for Industrial Supremacy."
After reviewing the progress of Eng
land and Germany In commerce arid
manufactures, Dr. Peez passes to the
United States, "rising in the new world
with sinister rapidity." He says among
other things:
"The three competing countries now
suffer from obstacles which hinder their
free movement. Germany has China,
England has the Transvaal, America the
Philippines. From appearances, the
United States will be the first to throw
off Its burdens. After that country shall
be free from the Philippine War, Its In
dustrial advance upon Europe will be fully
manifested."
Further on Mr. Peez cays:
"What should first be done In defense
is to follow the example In regard to
tariffs and trade treaties which the Unit
ed States has set for us. At the Euro
pean seashore (England Is included here
in) a tariff ehould be established counter
to that of the Union, while European
nations should arrange tariffs touching
each other which would not materially
differ from those now existing.
"What will the United States do? That
is her affair. We only follow her exam
ple. A people so young, acute and rich
in future possibilities as the citizens of
the Union will find boundaries to their
aspirations only when they see their at
tempta at further conquest will be met
with vigorous resistance."
Testing: Colorado Quarantine Law.
DENVER, Colo., June 27. Judge Hallet,
of the United States District Court, today
granted a writ of habeas corpus in the
case of Edward H. Reld a cattle shipper
of Omaha, who was convicted in the Dis
trict" Court of Arapahoe County yester
day of having violated the Colorado stat
utes by shipping cattle into this state
from Texas without having a signed bill
of health from a cattle Inspector, and was
sentenced to six months' Imprisonment In
the county jail. Reld refused to pay a
state Inspection fee after having received
a clean bill of health from the Federal
Inspector, In order to enable the National
Livestock Association to test fhe validity
of the Colorado law requiring the inspec
tion of cattle shipped through the state.
The writ was made returnable Saturday
next. Should the United States District
Court sustain tha decision of the state
court, the National Livestock Association
will appeal the case to the United States
Supreme "Court. '
GOMEZ AT TAMPA.
He Says There Is Notalng; Slanaist
cant In His Visit.
TAMPA, Fla., June 27. General Maxi
mo Gomez arrived here tonight from Ha
vana and left Immediately for New York.
General -Gomez said he was especially
delighted once more to set foot on Ameri
can soil, as he felt that he was among
friends. He said his people were busy In
rebuilding their- wasted and devastated
island and only desired peace, for their
prosperity and happiness would, follow.
He positively declared that there was
nothing significant in his trip to the
United States' at this time. He was sim
ply on private business, he said, and
gratifying a desire to see many friends
once more and renew ties of friendship
which he made In the states many 'years
ago.
CUBAN TOBACCO INDUSTRY.
The Crop Is the Wealth of Pinar
del Rio Province.
NEW YORK, .June 27. The Pinar del
Rio correspondent of the Tribune says:
The Cuban tobacco farmer Is not un
like the Western wheatgrower or corn
raiser. Rains or droughts have a great
deal to do with the view he takes of the
tobacco Industry and of his own condi
tion. When the rains come at the right
time and when the dry spell lasts .Just
long enough, he is fairly cheerful and
does not have a gloomy opinion of farm
ing In general, and for the tobacco In
dustry In particular. When the seasons'
are dislocated and there Is too much
moisture at the wrong time or too much
dryness at the right time, he Is a pessi
mist, and thinks that tobacco growing Is
going to become one of the lost arts In
Cuba. The last two seasons have been
only fair, and prices have been hardly up
to the average, yet In this region there
Is no disposition to talk of turning the
tobacco lands into something else.
The crop Is the wealth of this prov
ince, and will continue so In spite of oc
casional discouragements. The removal
of the export tax- by direction of the
Washington authorities has helped to rec
oncile rthe growers' to an average return
when they hope for an exceptional one.
The crop last year was about 460,000 bales
of 110 pounds each, but the price was a
low one. The exact figures are not yet
obtainable for this year, but taking the
island as a whole the crop may be a little
larger, with prices a shade better.
Tobacco differs from sugar In that the
Cuban producers of the leaf have not so
much to learn as the sugar planters, and
there is not the field for Introducing more
modern methods that exist with sugar. In
the case of tobacco, economy of produc
tion probably has' not reached Its limit,
yet there Is no wide discrepancy between
what It actually cqsts to deliver a bale
of tobacco to the factories in Havana
and what it should cost. The methods of
cultivation are simple, and If future eco
nomics are to be effected they will be
chiefly In drying, shipping and warehous
ing rather than in actual cultivation. An
Incidental help has come from tho
.Weather Bureau reports, that system
having been extended by the American
authorities under the Signal Service corps.
In the matter of production, however,
Americans do not find that they have
much to teach the Cubans or the Canary
Islanders. Two young fellows, one from
Iowa and the other from Tennessee,
bought a farm a few miles out of Pinar.
The plants developed splendidly, the
leaves were green and the tobacco field
looked finer than any 'In the region. Nev
ertheless, their neighbors warned them of
various mistakes they were making. The
warnings were unheeded until the buyers
began coming through the country look
ing up the-choice crops. They made no
bid for that pwned by the Americans.
The latter fpunjd that the leaves crumbled
to powder at the touch, and, their crop
was practically valueless. The Cuban to
bacco growers do not themselves know
how to describe their way of analyzing
the exceptional qualities of soil, atmos
phere and moisture which give the Vuelta
Abajo leaf Its primacy, but they know
when a crop Is deceptive and they know
how to handle it so as to secure the
largest return. The Americans, too, will
know next year, for they will follow the
advice of their neighbors.
It Is the general testimony that 'the
Vuelta Abajo district Is likely to Increase
Its production within the next few years,
though not phenomenally. The lands
which were In the Initial process of de
struction when General Grant discovered
the flavor of guano In his cigar and called
the attention of the Cuban producers to
It at that time had been thoroughly
fertilized; so that for years the crop was
tainted. Some of them were left un
touched. Now It Is stated that a consid
erable portion of tobacco lands which
have been rested through a series of years
are being cultivated again, and that
the quality of the leaf produced Is
excellent. Ordinarily good tobacco lands
do not need much resting and the alter
nation of corn crop Is sufficient.
TARRIED TOO LONG.
Life. Lost In a. FrelRht-House Fire
' Near Buffalo.
BUFFALO, June 27. One life was lost,
several men were more or less seriously
burned, and property valued at $100,000
was destroyed by fire which totally con
sumed the westbound frelghthouse of
the Lehigh Valley Railroad at Tlfft Farm7
this afternoon. Some of the 270 laborers
who were at work tarried In the build
ing too long and were forced to jump
from windows Into the Blackwell Canal.
All were rescued, excepting Pletro Zalso,
an Italian laborer. The steamer Henne
pin caught fire and was damaged to the
extent of $25,000. The Lehigh Valley
freight sheds and contents were valued
at about $75,000.
Oil Tank on Fire.
DECATUR, Ind.. June 27. The fire which
was started at Preble Tuesday night by
lightning striking a tank of the Standard
Oil Company, containing 50,000 barrels of
oil, is still burning. Three hundred men
from this city, Huntingtbn, Montpeller
and Lima, O., are fighting the flames, and
making efforts to save five other tanks
that contain over 30,000 barrels of oil.
Joe Klntz and V. D. Lowton, of Lima.
O., were loading a cannon to shoot the
burning tank, when It exploded, and they
were fatally burned. The loss to the
Standard Oil Company alone will reach
$vu,O0p. Many of the Inhabitants have
been1 badly burned.
Coal Chutes Bnrned.
CHEYENNE, Wyo., June 27. The 'big
coal chutes of the Union Pacific at Med
icine Bow have been entirely destroyed
by fire. The conflagration Is supposed
to have ren started by sparks from an
engine. A large amount of storage coal
was consumed, also two steel coal cars,
which were being unloaded.
Ex-Cadet Cressy Pardoned.
WASHINGTON, June 27. Moved by
strong appeals for clemency, the Pres
ident has granted a pardon in the case
of Calvin Joy Cressy, of California, who,
while a member of the fourth class of
the Naval Academy, was convicted of
hazing and summarily dismissed from
the Academy. Judge Advocate Lemly
holds that the pardon of Cressy will not
operate to restore him to the Naval Ac
ademy. A curious marriage was recently Celebrated
at Grocholetz, In Poland, where a peasant at
the a?e of 88 led to the altar a maiden of 18
Summers. Among- the 200 guests Invited to
the wfddlng were 11 sens of the bridegroom by
former marriages, the eldest being GO years old
and the youngest 41. There were also 63
grandchildren, 30 great-grandchildren, 21 chil
dren of the rojrth generation and 4 of the
fifth.
ILLNESS OF THE POPE
VATICAN OFFICIALS ANXIOUS CON
CERNING HIS HEALTH.
Attending- Physician Does Not Leave
the Pontiff's Bedside Tho
' Lelpsic Bank Failure.
PARIS, June 27. A dispatch to the Petit
Bleu from Rome 'announces the pope t6 be
seriously ill, and says that Dr. "Lapponi,
his attending physician, does not leave
the pontiff's bedside. Vatican officials
are anxious concerning the pope's health.
NOT ILL-TREATED.
Boer Prisoners Are Sheltered and
Fed in. British Camps.
NEW YORK, June 27. Public apathy In
England respecting the South African
War is illustrated, says the Tribune's
London correspondent, by the Indifference
with which Sir Henry Campbell-Banner-man's
parallel between the clearing ope
rations ih South Africa by British troops
and those in Cuba by the Spanish gener
als is regarded. Nobody finds -It necessary
to point out that whereas the Cubans
were driven out from their homes into
encampments, where they starved and
perished from pestilence, the Boers have
been sheltered and fed In laagers under
the protection of British garrisons.
Lord Milner says that these Boer ref
ugees have received medical attendance
when they required It, regular rations
have been served out to them and In many
Instances their children have been sent
regularly to school. There have been some
exceptional instances but the processes by
which districts have been cleared have
been essentially different from those em
ployed by the Spanish generals In ex
tirpating the Cuban population. Consid
erable progress has ben made toward
pacification of the Dutch colonies, many
mines about Johannesburg are In opera
tion and the farmers around leading rail
road towns are assuming their usual oc
cupation and sending supplies Into the
market.
Lord MUner has Improved In health since
his return to England In spite of the con
stant pressure of business with the Co
lonial Office and unceasing social Invita
tions. He takes a broad view of the sit
uation In South Africa and Is hopeful that
the end of the war will soon be reached
and reconstruction measures adopted.
Bqcrft Attack Richmond.
RICHMOND, Cape Colony, June 27.
A large force of Boers, commanded by
Milan and Smlt, attacked Richmond at
daybreak, June 25. The fighting lasted
until dusk, when the Boers retired on the
approach of British reinforcements.
THE LEIPSIC BANK FAILURE.
One Director Arrested and Another
May Be Taken Into Custody.
BERLIN, June 27. It ttirns out that the
report of the Lelpzlger Bank, published
yesterday, was misleading. Reliable In
formation shows that the sum of 111,000,
000 marks, which forms the bulk of as
sets, Included 87,000,000 marks lent to the
Cassel-Treber Troknung Company, of
which only a small part can be realized
upon.
The Tagefolatt today says t!he Lelpzlger
Bank quite recently advanced another
15,000,000 marks to the Cassel-Treber
Troknung Company after It was known
that the latver was insolvent. Repre
sentatives of the leading banks of Berlin
say there Is no doubt all the stock of the
Lelpzlger Bank and Its reserve, amount
ing to 63,000,000 marks, are lost. The
Dresden and Lelpsic Bourses refuse to
handle the Lelpzlger Bank stock. The
policy of the Lelpzlger Bank's board of
directors has fpr years been such as to
lead to the beller that other arrests on the
charge of culpable negligence will follow
the taking Into custody of Herr Exner.
The members of the board of directors in
clude some of Lelpslc's wealthiest citi
zens. The Berlin, Lelpsic and Dresden
morning papers express the highest in
dignation at the conduct of the Lelpzlger
Bank directors, and demand a searching
investigation.
LEIPSIC, June 27. Herr Exner, director
of the Lelpzlger Bank, which suspended
payment Tuesday, June 25, has been ar
rested. The Public Prosecutor Is investi
gating the affairs of the bank.
COAL TAX BILL.
Agreed To in the House of Common
by a Majority of 80.
LONDON. June 2S. After a prolonged
debate and considerable disorder, the
House of Commons, In committee, at 2
o'clock this (Friday; morning agreed to
the coal tax bill by a majority of S6. An
unseemly scene occurred when the Irish
members accused the chairman of the
commltee of partisanship In falling to se
cure a proper hearing for the opponents
of the tax.
A. J. Balfour, First Lord of the Treas
ury, Informed a deputation of Unionist
members that the government had de
cided to drop the educational bill, owing
to the congested state of public business,
and that he would reintroduce the bill
early next year.
Kins: Edward's Racetrack Winnings
NEW YORK, June 27. King Edward
will not be seen at any sporfing event
until the regatta at Cowes, says a dis
patch from London to the World. Though
he Is restricted by official useage from
attendance at the horseraclng, he has
taken a deep and practical Interest In
every great meeting. It Is rumored that
he has already won over 20,000 since
the season began. " He was a big winner
as the result of backing Mr. Whitney's
horse Volodyovskl for the Derby. He
was so Interested In the rest of that race
that he had a private wire run from Ep
som Downs to Marlborough House,
Has Emperor's Indorsement.
GLASGOW, June 27. The members of
the Institute of Naval Architects, who
attended today's session here, were grat
ified by the receipt of messages from
Emperor William and King Edward. The
former telegraphed that the promotion of
shipbuilding and International commerce
Is calculated to "knit closer kindred na
tions, moved by the same spirit of en
terprise, and has all my sympathy. I
wish every success to the useful and no
ble work In which you are engaged."
Suspected Anarchists Released.
VIENNA, June 27. The report pub
lished In the United States that an
armed anarchist had been arrested while
waylaying for EmDeror Francis Joseph
with sinister intentions, is quite unfound
ed. Two suspected anarchists had been
arrested at Bruck (In Lower Austria, 23
miles northeast of Vienna.) One was Im
mediately liberated, while an examina
tion of the other failed to prove he had
criminal Intentions.
Kina- Edward's Coronation.
LONDON, June 27. A proclamation of
King Edward, Issued today, announces
that his coronation Is to take place on a
day not yet determined on in June next,
and that the ceremonies shall include
only such as are traditionally solemnized
in Westminster Abbey. This officially ex
cludes the King's champion and numer
ous ancient usages In connection with
the procession.
French Senators in a Duel.
PARIS, June 27. An as outcome of the
altercation which they had In the high
court (Seriate) yesterday, during the se
cret deliberation after the close of the
trial of the Marquis de Lur-Saluces, Sen
ators Lee Prevost-De .Launay and Au-
coin ought a duel with pistols this morn
ing. Two shots were exchanged without
result.
Trial of Earl Russell.
LONDON, June 27. In the House of
Lords today the Lord Chancellor, Lord
Halsbury, announced the receipt of a let
ter from the Recorder, setting forth that
a true bill had been found against Earl
Russell on the charge of bigamy, and
moved the appointment of a committee
to arrange the procedure in tho case. Tho
motion was agreed to.
No Cause For Spanish Alarm.
LONDON, June 27. In the House of
Lords today, during the discussion of the
requirements of Gibraltar, the Under For
eign Secretary, Lord Cranbourne, declared
there was not the shadow of founda
tion for the apprehension existing In some
quarters In Spain of possible aggression
on Spanish territory.
Charity Fete in Paris.
PARIS, June 27. There was a charity
fete today at the" Petit Trianon, made
famous by Marie Antoinette. The fete
was organized by the Countess de Cas
tellans and other society ladles, who, at
tired In rustic cusioms of the period, re
produced scenes from the life of Marie
Antoinette.
Anstrlan Minister to Mexico.
VIENNA. June 27. Count Gilbert Ho
henwart von Derlachsteln has been ap
pointed Austro-Hungarlan minister to
Mexico. Diplomatic relations between
.Austria-Hungary and Mexico, lnterrupteu
since the year Emperor Maxlmllllan was
shot, are thus formally re-established.
CompromlRlng Manchester's Debts.
LONDON, June 27. A meeting of the
Duke of Manchester's unsecured creditors
approved the proposal for a compromise
at 12 shillings 6 pence on the pound ster
ling. The other creditors will be paid
In full when the accounts are settled, and
the bankruptcy will be annulled.
Sopner Portrait Sold.
LONDON, June 27. A portrait of Lou
isa, Lady Manners, afterwards Countess
of Dysart, by Sopner, was sold at auc
tion this afternoon for 14,450 guineas.
Pluoruc at Oporto.
MADRID, June 27. It is reported that
12 cases of bubonic plague and four
deaths from that disease have occurred
at Oporto, Portugal.
CHILEAN ELECTION.
Jermnn Xlelsco, Libcinl, Had a Large
Majority.
SANTIAGO DE CHILE June 27, via
Galveston, Tex. The result of the pre
liminary elections Tuesday for a Presi
dent to succeed Senor Errazurlz, whose
term has expired, shows that the Liberal
candidate, Jerman Relsco, a relative of
Senor Errazurlz, secured a very large
majority over the Conservative candidate,
Pedro Montt.
Election Riots In Chile.
VALPARAISO, June 27. Election riots
have occurred here at the ports of Con
cepclon and at Autofogasta. At the lat
ter port the police last night fired In a
Rlesco procession, killing three men and
wounding several others. The perfect
of police of Autofogasta has been Im
prisoned and the population threaten
to lynch him.
NEW SYSTEM OF MAPS.
Project of the Bureau of American
Republics.
NEW YORK, June 27. A special to the
Tribune from Washington says:
With the view of facilitating develop
ment of closer commercial relations be
tween the United States and the other
countries In the Western hemisphere and
familiarizing producers with the geogra
phy, natural resources, railways, lines of
marine communication and other essen
tial knowledge, the Bureau of American
Republics has undertaken the preparation
and publication of a series of maps on a
scale of 50 miles to an Inch, covering this
continent.
The first set? of these maps, treating of
Mexico, has just been Issued and Is bound
to be useful to Importers and exporters
particularly and. In fact, to all who have
Interests In that country or contemplating
trade or Investment with our nearest
Southern neighbor. One of the maps pre
sents the political divisions of Mexico, Its
states, railroads, waterways, the distribu
tion of minerals so far as prospecting has
revealed their location, custom-houses,
overland and submarine telegraph connec
tions accurately plotted from official sur
veys by the Mexican Government and the
United States authorities, the coast line
and harbor being taken from the hydro
graphic charts of the United States Navy.
The other maps on the same ground work
indicates, by the various colors and con
tour lines adopted for all United States
Government maps, the elevations of all
parts of the republic and the distribution
of Its agricultural features, showing what
sections are wheatgrowlng, and those
adapted to coffee, cotton and other prod
uots. The similar map of Brazil Is about com
pleted and those of Guatemala and Costa
Rica are well advanced.
Proof of Father Aniado's Guilt.
MEXICO CITY. June 27. The Depart
ment of Justice will send to the Spanish
judicial authorities proofs of the guilt
of Father Amado, awaiting extradition
from Spain. The father of the girl who
was abducted by Amado Is a lawyer In
Guadalajara and will prosecute the cler
gyman for his crime.
RHEUMATISM MICROBES.
English Investigators Think They
Have Found Some.
A good deal of evidence that rheumatic
fever is an Infectious disease has accumu
lated within the last 10 years, and, while
that theory Is not yet to be rtgarded as
fully established, it has apparently
gained some,ground even this Spring. The
Philadelphia Medical Journal refers to it
as "the more generally accepted view," to
which the lactic acid and nervous origin
explanations have given place to some
extent.
One of the reasons for suspecting that
this disorder might be Infectious Is that
several cases will often occur In the
same house, and It Is peculiarly prevalent
In large communities. Again it has been
asserted that the mortality and frequency
of rheumatic fever fluctuate In the same
way as those of erysipelas and scarlet
fever.
Now, infectous maladies are all attrib
uted to mlcro-organlslms, and as soon as
suspicion was excited the search began
for bacteria which should prove to be
characteristic of the malady In question.
One expert huntPd In the blood; another
directed his attention to the tonsils; a
third examined the synovial fluid, or lu
bricant of the joints; a fourth tested
other secretions, including exudations from
the- heart.
The first definite declaration of a dis
covery was made In 1S91, when Bonchard
and Charrln. believed that they had found
In the joint fluid a certain well-known
organism hitherto associated with sup
puration. This was the staphylococcus pyo
genes albus. The presence of this microbe
In the joint would not prove much, con
sidered by Itself; but In 1893 St. Germain
succeeded In producing an Inflammation of
the joints by Inoculating an animal with
staphylococci. Of course, a single In
stance would not settle the question, but
the experiment was highly suggestive, to
say the least. Since that time several
other Investigators have found microbes
In the blood or secretions. Sometimes
these organisms were identified as the
"aureus," or "citrus," instead of the "al
bus," but they were staphylococci. Occa
sionally, however, another microbe that Is
characteristic of pus, a streptococcus, was
found.
The latest Investigations which bear on
this subject are those of Poynton, and
Paine, and are reported In the Lancet
of May, 1901. The Philadelphia Medical
Journal summarizes them without com
ment. These men assert that they isolated
dlplococcl In 16 cases. Cultures were
made of organisms found In rheumatic
nodules or swellings, and were Injected
Into the veins of rabbits. In consequence,
tho little creatures had pains In the Joints
and Inflammation of the valves and cov
ering of the heart. The fluid In their
Joints and some of the brain tissues re
vealed the presence of the dlplococcl.
Poynton and Paine think that the nodules
or rheumatism are a particularly charac
teristic feature of that disease.
It will be observed that the results of
this latest inquiry differ from those pre
viously obtained. Streptococci look like
chains of beads of practically uniform
size. Staphylococci suggest rosaries, one
organism longer than the other occurring
every so often In the series. Dlplococcl
are usually half round objects, and come
In pairs They sometimes look like the
halves of a pea, slightly separated. The
pneumonia germ Is dlplococcus. and Is
pointed on one side like a raisin seed.
But there are many other points of differ
ence besides those of form. One takes a
certain kind of stain which will not affect
another. One must be cultivated In a
manner unlike that required by another,
and so one. But the most Important dls
tinctlon, of course. Is that between the
effects produced on the human system
when the latter Is Invaded. The other
characteristics are Important only as
means of identification.
It appears, then, that Poynton and
Paine do not attribute acute Inflammatory
rheumatism to the same organism, as do
their predecessors. Further study Is es
sential, therefore, to establish which of
them Is right. More experiments are
necessary to clear up several phases of
the matter. The natural history of the
newly found dlplococcu? should be fully
worked out, so as to differentiate It dis
tinctly from all other microbes, and If
Its responsibility for rheumatic fever
finally be established. It will then be
highly desirous to try to make an anti
toxin that will have a curative power.
Meantime, It should be noted that thee
researches do not apply to "muscular
rheumatism," or "myalgia," whose nature
and cause still remain a mystery. As yet.
no one can say positively whether It Is
a product of beer, beefsteak or the
weather. Conservative physicians confess
that "Its pathology Is obscure."
TO AID MACHINISTS.
Executive Conncll of Federation of
Labor Authorizes an Assessment.
WASHINGTON. June 27. The execu
tive council of the American Federation
of Labor today authorized an assess
ment of affiliated organizations for the
purpose of aiding the striking machinists
In their contest for a nine-hour day. A
circular letter will be sent out imme
diately and it is estimated that $50.(00
will be secured In response to the first
call.
Machinists Retnrnlnff to Work.
NEW YORK, June 27. A special meet
ing of the finance and strike committee
of the National Metal Trades Association
has just been held to hear reports as to
the progress throughout the country of
the strike of the machinists. . Reports
were read from members of tire associa
tion In the particular cities which showed
that dally strikers In nearly every d rec
tlon of the country were returning to work
unconditionally. After the meeting I!
was said that the belief was general that
the strike would be ended In about two
weeks.
Refused to Recognize the Union
DAYTON, O., June 27. At a mejthff-of
the molders and metal polishers "unlors
the final proposition of the National Cash
Register Company to Its striking employes
was refused, and the company at once de
cided to operate the concern as an open
shop In the two departments affected.
The union employes In other departments
will remain at? work.
c
Th public houses of London. If set stile bj
side, would reach a distance of something ilk"
7ft inl'lfs.
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