Knickerbocker Trust Company (New York, NY)

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New York, Oct. 23. A run etartel on the Trust Company of America when the doors opened today. but the allied trust companies It is announced agreed to advance fifteen million dollars to the American at once, This, with eleven million dollars said to be in the company's vaults, it is averred will be sufficient to meet all demands. If the Trust Company of America meets today's demands all the bankers will he able to weather the storm. The Knickerbocker Trust Company today placed in the state banking department's hands to rthe attorney general to hold an investigation and sea If it is necessary to appoint a receiver. The stock market opened demoralized with wide price variations. Call money was quoted at 40 per cent Edward C. Benedict was today appointed receiver for the brokerage firm of Mayer & Co., which failed yesterday for six million dollars.

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MONEY POURS INTO WALL ST

Co. Government, Financial Institutions and Capitalists operate in Relief Measures. DEMORALIZATION IN STOCKS CHECKED. Morgan Firm and Banks Lend $25,000,000-Run - on Trust Company of America Likely to End To-day-Three Solvent Harlem Banks Suspend Payment. J. P. Morgan & Co. lent $25,000,000 on the Stock Exchange floor just before the close yesterday, thereby checking the demoralization in the market and starting a sharp rally. Stocks closed firm after selling down to new low records earlier in the day. Secretary Cortelyou deposited in the banks as much of the promised $25,000,000 of government money as was asked for. The run on the Trust Company of America continued, but all depositors were paid in full and there were signs that the backbone of the run had been broken. The directors of the Knickerbocker Trust Company discussed forming a $5,000,000 pool to guarantee the deposits, and appointed committees on receivership and securities. Three small banks in Harlem suspended payment on account of the scarcity of specie, but announced that they were perfectly solvent. There was a small run on the Lincoln Trust Company, but it met all demands.

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FIRST NATIONAL OF BROOKLYN AND SIX OTHER BANKS CLOSE

SITUATION AT A GLANCE.

Secretary Cortelyou said after the close of banking hours:

"The situation is good. This is the third day, and I see no setback of serious import. I shall probably remain in the city all day tomorrow, and if there is no critical development—which I see no sign of at this time and do not expect by any means—I shall return to Washington."

The First National Bank of Brooklyn, a Clearing-House institution; the Williamsburg Trust Company and the Jenkins Trust Company of Brooklyn, with numerous branches, suspended temporarily. The solvency of the institution has not been questioned.

President William A. Nash, of the Corn Exchange Bank, said:

"The outlook is decidedly better, and I think the crucial point has been passed. The failure of the smaller banks is not disturbing. They did not have much cash on hand and it was better for them to suspend than to stand a run. They are perfectly solvent and will be able to resume business when the present hysteria subsides."

The International Trust Company, of No. 206 Broadway; the Brooklyn Bank and the Borough Bank of Brooklyn failed to open their doors for business.

The Union Dime Savings Bank, Thirty-second street and Broadway, with deposits of over $27,000,000, has given notice that it will require thirty days' notice in writing of intent to withdraw. Other savings banks have adopted this course.

J. Pierpont Morgan and half a dozen bankers raised a pool of $10,000,000 late this afternoon which was loaned on call on the Stock Exchange to protect the market.

International banking houses have arranged to import between $10,000,000 and $15,000,000 in gold from Europe.

The Lincoln Trust Company, the Trust Company of America, the Colonial Trust Company and the Harlem Savings Bank safely weathered runs. The trust companies received substantial aid and the Harlem Savings Bank took advantage of the sixty-day clause.

Secretary of the Treasury Cortelyou placed about $8,000,000 in New York banks during the day, a total of $30,000,000 since last Friday.

Superintendent of Banks Clark Williams said that conditions have improved and will continue to improve if bank depositors are reasonable.

The stock market passed through a precarious, feverish day, closing in a skyrocket finish that sent the general range of prices away above yesterday's final quotations.

State Bank Examiner Leonard stated that the Lincoln Trust Company is in a solvent condition.

An officer of the Hanover National Bank suggested that Gov. Hughes proclaim special holidays enabling the banks to close next week to allow the arrival of gold from abroad. Gov. Hughes, over the long-distance telephone, said he had no power to order such holidays.

A shipment of $2,500,000 in small bills was received from the United States Treasury in Washington.

Ernst Thalman, Otto T. Bannard and Gen. Henry C. Ide were appointed temporary receivers of the Knickerbocker Trust Company.

Before the close of the stock market Halstead & Hodges and Van Emburgh & Atterbury, brokers, loaned on the floor of the Stock Exchange $10,000,000 of the syndicate money at 50 per cent.

The amount pledged by the Clearing House banks to the aid of the Stock Exchange will be between $12,000,000 and $15,000,000.

Williamsburg and Jenkins Concerns, Belonging to the Jenkins String of Banking Institutions, Temporarily Close Their Doors.

THERE WAS VERY LITTLE EXCITEMENT AT EITHER BANK

Borough and Brooklyn Banks and International Trust Company Had Been Forced to Suspend Earlier in the Day.

In rapid succession the Williamsburg Trust Company and its branch on Fulton street, Brooklyn, the Jenkins Trust Company and all its branches and the First National Bank of Brooklyn closed their doors this afternoon for lack of ready cash.

In each instance it was announced that the suspension was temporary and that all the institutions would reopen as soon as currency for carrying on business could be secured.

All the institutions that are affected belong in what is known as the Jenkins string of banking companies which enjoy the best of reputation. It is stated that they are absolutely solvent.

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Knickerbocker Will Pay

Special to the Herald. New York, Oct. 30.-The Knickerbocker Trust company has announced that it will pay dollar for dollar to its cerditors. The banking conditions are getting back to normal, and the runs are practically over.

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BANKS NEED NO AID

Continued from First Page. that it would get what it had paid for. After a meeting between the two sides in the office of Judge M. J. O'Brien, it was announced that another meeting would be held at noon to-morrow. Justice Lester W. Clark, of the Supreme Court, Richmond County, to-day appointed George L. Rives, former corporation counsel, as the third receiver for the Knickerbocker Trust Company, in place of President Otto T. Bannard, of the New York Trust Company, who declined to serve. Mr. Rives will qualify to-morrow by filing a bond of $500,000, and with the other receivers, Ernst Thalman and Gen. Henry C. Ide, will take over the conduct of the company from the State banking department.

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WHEN BANK FAILED Scenes During Run on Knickerbocker Trust Company. DEPOSITORS CALM AND QUIET Owners of Small Shops, Mechanics and Clerks First Take Alarm-News Was Spread Rapidly and Line of Depositors Soon Grows-Many Rich Were in Line

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s of the temporary receivers, was the scene of much activity. The experts employed by depositors' committees were going over the books and listing assets.

The receivers likewise had men at work, and reported satisfactory progress. The Knickerbocker directors were working on a new plan to have the general committee of trust company presidents, which is in charge of the Lincoln and the Trust Company of America, take a hand in the rehabilitation of their concern.

More than $7,000,000 in gold bars and coin, which had been held twenty-four hours on the North German Lloyd liner Kron Prinzessin Cecelie, was transferred to various banks on guarded trucks.

The sub-treasury advanced practically the full value of the gold coin deposited there. The United States assay office made an advance of 90 per cent on the bullion.

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FINANCIAL SITUATION IN SYNOPSIS.

Wednesday.- Corner in copper securities engineered in New York City by the F. Augustus Heinze interests collapses and stocks slump heavily. Gross & Kleeberg, brokers, forced to suspend. Otto Heinze & Co., brokers, unable to settle with other New York Stock Exchange firms. Thursday.- After conference of bankers at home of Charles W. Morse, F. Augustus Heinze retires as president of Mercantile National Bank. State Savings Bank, of Butte, Mont., a Heinze institution, closes its doors. Friday.- On demand of the Clearing House Association the entire directorate of the Mercantile National Bank, of which F. Augustus Heinze, Charles W. Morse and E. R. Thomas gained control last January, resigns. Mercantile Bank requires aid in clearing debit balance of $754,000. Stocks reached lowest point of the year. Saturday.- Charles W. Morse resigns as director and trustee of fourteen banks and financial institutions, among them the National Bank of North America. Sunday.- Bankers held all day conferences and Seth M. Milliken is chosen president of Mercantile Bank. Monday.- O. F. Thomas resigns as president of the Consolidated National Bank. William R. Montgomery succeeds E. R. Thomas as president of the Hamilton Bank. The National Bank of Commerce notifies the Clearing House that it will cease to redeem checks for the Knickerbocker Trust Company, and Charles T. Barney retires as president of the Knickerbocker Trust Company. Tuesday.- The Knickerbocker Trust Company forced to suspend payment following a run by depositors and after $8,000,000 is withdrawn. Marcus Mayer & Co., stock brokers, with liabilities of $5,000,000, forced to suspend. George B. Cortelyou, Secretary of the Treasury, goes to New York City to take charge of financial situation. Wednesday.- Depositors start a run on the $80,000,000 Trust Company of America and withdraw $8,000,000. Westinghouse Electric and Manufacturing Company, with liabilities of $100,000,000, forced into hands of receiver. Pittsburg Stock Exchange suspends trading operations. Thursday.- With stock market demoralized, Mr. J. P. Morgan and associates save situation by sending $27,000,000 to be put out as call loans. Twelfth Ward Bank, Hamilton and Empire City Savings Banks suspend payments to protect depositors. Friday.- United States Exchange Bank, of Harlem; Borough Bank, of Brooklyn, and Union Trust Company, of Providence, R. I., close doors. Eight banks and trust companies in Manhattan and Brooklyn suspended payment. The Clearing House decided to issue loan certificates which will be used in the settlement of bankers' balances. Reassuring statements as to the financial situation were issued by leading business men and Government officials. The savings bank presidents decided to require sixty days' notice from depositors for the withdrawal of funds. Confidence being restored, President Roosevelt issues semi-official reassurances. No cause for further alarm. Whole country prosperous and good times will continue.

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Suicide Made Will, Then Died. Charles Tracy Barney, former head of the Knickerbocker Trust company of New York, the big concern that went to the wall in the panic of a monthago. committed suicide last week by shooting himself. After he had done the shooting, still retaining consciousness, he summoned his lawyers and made a new will, disposing of $2,000,000 worth of property, of which his wife was made sole beneficiary. In half an hour he was dead.

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An additional $900,000 preferred stock of the American Locomotive Company has been admitted to quotation on the New York Stock Exchange. The preferred stock now outstanding amounts to $25,000,000, the total authorized issue.

The Westinghouse Air Brake Company has issued a circular to its stockholders calling attention to the special meeting scheduled for December 3, to take the necessary legislation for the increase in the capital stock from $11,000,000 to $14,000,000 and the payment of a stock dividend of 25 per cent. therefrom.

Since the premium on money has declined somewhat there has been less of it in demand.

Of the 100 most active railroad and industrial stocks only seven sell above 100 per cent.

The average price of twenty active railroad stocks got below 82 yesterday, the bottom price of the year. This decline, 139, the top figure last year, shows an average loss of 57 per cent.

A. G. Hackstaff, vice-president of the Illinois Central, has gone to Europe to talk with foreign holders of the Illinois stock. Nearly all of the foreign holders gave their proxies in Fisk's favor. Mr. Hackstaff is a member of the proxy committee.

Reports from business centres received this week by R. C. Dun & Co. indicate considerable improvement, more especially in monetary conditions.

The committee representing the directors of the Knickerbocker Trust Company announced an outline of its plan for the resumption of business by the company. Under this plan, if it is adopted, the capital stock of the company is to be increased from $1,200,000 to $2,000,000.

Fred D. Underwood, president of the Erie, made the following statement: "The statements made in print and on the street that the Erie Railroad is to apply for a receivership have no foundation and are utterly false. Financial arrangements have already been made to meet all its anticipated requirements, and the business and the earnings of the property are better even than they were last year."

A meeting of the board of directors of the Merchants' Association, of New York, largely attended, at which, among other things, the present financial situation throughout the country was discussed and the secretary of the association has been instructed to communicate the views of the directors to all the prominent commercial organizations in the United States.

New York bankers in discussing the action of the Bank of France in breaking off negotiations which had for their object the shipment of from $15,000,000 to $30,000,000 of gold to help remedy the United States monetary stringency, think that the Bank of France has made a big mistake when they refused to deal with any one but the government of the United States, which, it is pointed, has about $230,000,000 in the national banks, and does not need any assistance.

Railroad earnings for the first two weeks in November for all the railroads in the country have not been up to the standard of former years' earnings.

The Pittsburg Stock Exchange remains closed on daily action of the directors, and it is likely to remain closed until the first of the year.

In interviewing a large number of the local brokers it is found that the rumor saying that the U. G. I. of Philadelphia is going to get control of the Public Service Corporation is all "hash."

Post & Flagg say: "About the best that can be said of the present situation is that as each day goes by, things become fundamentally better, and we are nearer the end, but we must exercise patience for long while to come."

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New York Trust Companies and the Panic.

The most remarkable development of the banking business of New York City during the past ten years has been the growth of its trust companies. By paying interest on deposits, thereby attracting business, by not observing—not being obliged to do so by law—certain safeguards required of the national banks, as, for instance, in the matter of reserves, they have cut heavily into the banks' business. In New York City alone they have deposits of hundreds of millions. To be able to make money after paying the high interest on deposits that they paid, they were naturally obliged to take chances and run risks that no conservative banker would approve. They engaged in ventures, underwritings, development schemes, etc., that nothing but the amazing prosperity of the past decade prevented from failing disastrously. Now, the public knew all this in a vague way, but the public always insists on astutely waiting for the horse to be stolen before locking the stable door. But when Mr. Barney resigned as president of the Knickerbocker Trust Company, it believed that all it had ever heard about the business methods of certain trust companies was true of the Knickerbocker. The run began—somebody asked for a dollar!—and then there was panic-sheer, blind, unreasoning fear.

Of course, the suspension of payment by the Knickerbocker Trust Company, an institution with $62,000,000 of deposits, was the signal for runs on other institutions; and not only in New York City, but elsewhere, trust companies and banks closed their doors. After sleepless nights and much thought, the majority of the banks of the great metropolis of the United States decided to issue Clearing House certificates. Other cities followed the example of New York—anything in order not to have to pay out the money that they did not have!—Edwin Lefevre in the January Everybody's.

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HEINZE ARRESTED.

(By United Press.) NEW YORK, Jan. 7.-F. Augustus Heinze, the former copper king, whose speculations and the subsequent crash of his interests and run on the Knickerbocker Trust company, were the beginning of the financial stringency, was arrested today, charged with the false certification of a check. He was held in $50,000 bail. The check was on the Mercantile National bank. Heinze entered a plea of not guilty to the indictment.

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The Name "Knickerbocker."

How many persons outside the circle of the Stock Exchange, when the dreadful news was flashed across the wires that the Knickerbocker Trust had suspended payment, could have correctly named the commodity in which the trust deals? Remembering, perhaps that the Knickerbocker Club of New York is composed of millionaires, we should probably have avoided associating the trust with the tailor. The New York financier's fondness for the name, whether for clubs or banks, is a tribute to the genius of Washington Irving, who just a century ago entered triumphantly into the field of English literature with his burlesque history of New York under the fanciful name of Diedrich Knickerbocker. - Dundee Advertiser.

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KNICKERBOCKER TRUST CO.

Charles Tracy Barney, deposed president of the Knickerbocker Trust Company, millionaire promoter, social leader, clubman and one of the best known men in New York City, shot himself because of his inability to endure the blot upon his business reputation which he feared would result from the suspension of the company. He had been at the head of the trust company for many years and had seen it grow from a comparatively obscure concern to one of the leading financial institutions of the city. Then, almost without warning, came the crash. The resignation of Mr. Barney as president of the Knickerbocker was accepted by the directors and the next day the great trust company, with obligations to its depositors amounting to nearly $7,000,000, was forced to suspend payment.

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MARK AND THE HAREM.

Mark Twain is the most incurable jokesmith in this or any other planet. Persons who think that this statement is too far-reaching will please peruse the following letter with regard to the Knickerbocker Trust company. Note what Mark says about a receiver."

"To the Other Depositors: "The time is very short. Mr. Grover Cleveland, a depositor, has approved the Satterlee plan for resumption, and it seems to me that ought to satisfy every depositor that that plan is safe and wise. If we accept it we shall lose no part of our money; if we do not acept it the Knickerbocker will be turned over to å permanent receivership. I have already tried a permanent receivership once and did not like the result. It costs more to keep a permanent receivership than it does to keep a harem. Anybody who has had experience in these matters wil indorse this statement. In the long run-in the very long run-we got some of our money, but not enough to keep a harem with All the depositors said so, and were disappointed, and there was much regret. If we accept the Satterlee plan, and do it immediately, it will be well for us; if we refuse we invite and insure a shrinkage which the patients will not find enjoyable. I have not been invited to say these things, still it has seemed worth while to say them. Very respectfully your,

"MARK TWAIN."

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MACHINE COMPANY RECEIVER

American Typesetting of Stamford Upset by Knickerbooker Failure. Stamford, Feb. 20.-Application was made in the superior court to-day for the appointment ofa receiver for the American Machine typesetting company, the president of which is Robert Kerr. The company has an authorized capital stock of $500,000. of which stock to the amount of $140,000 is issued. The application to have the company placed in a receiver's hands is made by Mr. Kerr, whose claim of $18,700 against it is the largest of any of the creditors. Another large claim is that of the Merganthaler company for $8,660. Mr. Kerr holds $50,000 worth of the company's bonds, and it is stated that owing to the failure of the Knickerbocker Trust company of New York, the trustee for the bonds the company has been unable to obtain money.

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Knickerbocker Trust to Resume

New York, March 7.-The Knickerbocker Trust company, which suspended business at the beginning of

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MAYOR BUSSE TO OUST ANARCHISTS

Mayor Busse, of Chicago, has taken steps to keep all anarchists out of the city.

District Attorney Jerome, of New York, says the charges against him are false.

In the New York to Paris automobile race the American car is far ahead of the others.

The janitor of the Collinwood school declares he fastened the doors open at the first alarm of fire.

The incident of the seizure of the Japanese steamer Tatsu Maru by China has not yet been settled.

John F. Stevens, ex-engineer of the Panama canal, says the big canal will be of little value after it is finished.

Admiral Goodrich says American battleships are equal to those of any other country but could be made much better.

China is about to spend $60,000,000 in naval construction. The government will also borrow large sums to be used in railroad construction.

An alarm of fire at Lees Summit, Mo., caused the 400 school children to rush out of the building in a panic. No attention was paid to the fire drill.

Hearst papers are accused of inciting anarchy.

Portugal seems to be drifting toward a republic.

Colorado has had 29 homicides already in 1908.

Black Hand leaders are meeting their match in New York.

The death list in the Collinwood disaster has reached 174.

Japan says she will use force with China only as a last resort.

The Knickerbocker Trust company, of New York, is to reopen.

Nine Chinese have been sentenced to death in Boston for murder.

The Interstate Commerce commission will enforce the 9-hour law on all railroads.

Franklin's house in Paris has been demolished to make way for a more modern building.

Professor Quackenbos, ex-professor of Columbia university, announces that he had a medicine that will make bad men good.

A part of the battleship fleet is scheduled to return by way of the Suez canal and will also visit a number of European countries.

Illinois Central directors are working on a plan to raise $30,000,000.

King Edward is on a visit to France and called on the French president.

Two women have been arrested at Napa, Cal., for passing counterfeit money.

The Interstate Commerce commission says it is not opposed to the Fulton bill as has been stated.

Charges have been filed against Chancellor Day, of Syracuse university, for speaking ill of President Roosevelt.

Suits for the illegal cutting of timber have been filed in the United States court at Helena against several firms.

Governor Johnson will dedicate the monument erected by the state of Minnesota on Shiloh battlefield on April 10.

A monument and statue of Shakespeare will be ready for the 300th anniversary of his death and will be erected in London.

A petition signed by 40,000 persons asking pardon for Captain Van Schaick, under 10 years' sentence for criminal negligence in causing the wreck of the steamer Gen. Slocum, whereby over 1,000 lives were lost, will be presented to President Roosevelt.

The first consignment of Easter bonnets from Paris has arrived at New York.

A fire in the suburbs of Tokio burned 400 houses and caused a loss of $2,500,000.

The house committee on expositions favors appropriating $500,000 for the Japanese fair.

Japan threatens to use force unless China surrenders absolutely in the matter of the seized steamer.

Nine anarchist leaders have been arrested in Chicago.

John McCourt, of Pendleton, has been recommended for United States district attorney for Oregon.

Foreign diplomats discredit stories of our military weakness and consider Roosevelt a military genius.

The third of the Pennsylvania company's tunnels under the East river, New York, has been completed.

Nathan Vidaver, deputy state attorney general for New York, has been arrested charged with attempted blackmail.

A receiver has been appointed for the Western Maryland railroad on account of the rate law. This is another of Gould's lines.

During his cruise on the Mediterranean Emperor William will visit King Victor Emmanuel, of Italy, and Emperor Francis Joseph, of Austria.

Mexico and Guatemala have adjusted their diplomatic difficulties.

An attempt is being made to sell the Jamestown fair site to the government.

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So St

Johnsbury Ide has got to fight for his $75,000 fee as receiver of the Knickerbocker Trust company. It's now become a game of Ide-and-seek. Still the fee appears to be his under the law, and ought to be found.

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KNICKERBOCKER ORDER

Court of Appeals Refuses to Rescind Action on Receivers' Fees. New York, June 30.-The appellate division of the supreme court, Brooklyn, today, refused to rescind its order reducing the fees of the temporary receivers of the Knickerbocker Trust company, and also refused to allow the matter to be taken before the court of appeals. When the Knickerbocker was permitted to resume business, Justice Clark of the supreme court set aside a large sum, out of which were to be paid the fees of counsel and receiver. There were three receivers and each was to receive $75,000, under the terms of Justice Clark's order. The matter was taken before the appellate division, and that body on June 5 reduced the compensation of each receiver from $75,000 to $20,000 and that of counsel from $75,000 to $20,000.

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George W

Wickersham, who has been mentioned for the position of Attorney General in the Taft cabinet, is a prominent New York lawyer. His most recent connection of public interest was his work as counsel for the receivers of the Knickerbocker Trust Company.

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21. Knickerbocker Trust company in New York opened its doors after a suspension of 5 months.

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FINANCIAL RECOVERY OF KNICKERBOCKER (By United Press.) NEW YORK, June 9.-Directors of the Knickerbocker Trust company, which was forced temporarily to suspend in the financial crisis of 1907, have voted to anticipate payment on August 1, on 25 per cent of their surplus certificates. Only a short time ago directors anticipated payment on the company's certificates of deposit, leaving outstanding only surplus certificates held by depositors under the reorganization plan. The company's recovery has been one of the most rapid ever # witnessed in the financial district.

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Wonderful Recovery of Bank

New York.-Directors of the Knickerbocker Trust company, which was forced temporarily to suspend in the financial crisis of 1907, voted on Tuesday to anticipate payment on August 1 on 25 per cent of their surplus certificates. Only a short time ago the directors anticipated payment on the company's certificates of deposit, leaving outstanding only surplus certificates held by depositors under the reorganiaztion plan. The company's recovery has been one of the most rapid ever witnessed in the financial district.

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M'CALL'S FERRY PLANT

BRINGS $2,000,000

After a long series of financial troubles and forced receivership caused by the collapse of the Knickerbocker Trust Company, of New York city, the McCall's Ferry Power Company, near Columbia, was sold at auction at Lancaster yesterday by Henry P. Brown, the master appointed by the United States Court, to William M. Barnum, for $2,000,000. It is understood that Mr. Barnum represented about 90 per cent. of the stockholders. It was the only bid.

The decree of sale grew out of equity proceedings between the McCall Company, and the Knickerbocker Company of New York, trustee of $10,000,000 mortgage. The property was sold under a decree of the United States Circuit Courts of the Eastern District of Pennsylvania, the Southern District of New York, and the District of Maryland, the sale being personally conducted by Mr. Brown.