15539. Broadway Trust Company (New York, NY)

Bank Information

Episode Type: Run Only
Bank Type: trust company
Start Date: October 26, 1907
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 5b29a8e1

Response Measures

Accommodated withdrawals

Description

Multiple contemporary newspaper accounts (Oct 26–30, 1907) report runs on the Broadway Trust Company during the Panic of 1907. The bank met demands, limited payments initially (payrolls first/60-day rule applied by some savings banks), and continued paying; there is no report of a suspension, receivership or permanent closure for this institution in these articles. Cause attributed to the wider 1907 banking panic (systemic/macro news).

Events (4)

1. October 26, 1907 Run

Cause: Macro News
Cause Details: Runs occurred as part of the widespread Panic of 1907 and contagion from other runs (Trust Company of America, Northern Bank, etc.).
Measures: Initially limited payments to payrolls/priority for employers; honored demands and paid out large sums over the week; officers declared firm solvent.
Newspaper Excerpt: Frightened depositors in the Mechanics' and Traders bank ... and the Broadway Trust company made a run upon these banks. All demands were met by these concerns, however.
Source: newspapers

2. October 27, 1907 Run

Cause: Macro News
Cause Details: Continued depositor withdrawals tied to broader panic and news of other troubled institutions; many withdrew to pay payrolls.
Measures: Announced honoring only demands needed for payrolls for the day; continued to pay large amounts over the week (report of $2,400,000 paid out during week).
Newspaper Excerpt: The run on the Broadway Trust Company ... began at the opening of business. An hour after the doors were opened the line contained three hundred and fifty patrons. ... 'We are solvent, but we must have time,' he said.
Source: newspapers

3. October 28, 1907 Run

Cause: Macro News
Cause Details: Ongoing, but diminished, withdrawals as confidence slowly restored by clearing house actions and gold imports.
Measures: Paid out promptly; reports indicate deposits being made nearly as fast as withdrawals.
Newspaper Excerpt: At the Broadway Trust Company's institution about seventy-five people were also in line constantly. Paying off was conducted as rapidly as possible. Officers declared the firm solvent and able to meet all demands.
Source: newspapers

4. October 30, 1907 Run

Cause: Macro News
Cause Details: Run abating as broader market confidence restored; bank continuing to meet demands.
Measures: Payments made promptly; officers continued to assert solvency and ability to meet demands.
Newspaper Excerpt: The crowd at the Broadway Trust Company was much smaller than on Saturday, there being not more than seventy-five in line yesterday morning. The depositors obtained their money at once on presentation of their checks.
Source: newspapers

Newspaper Articles (7)

1. October 27, 1907 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, October 27, 1907

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Article Text

Bankers Arrange to Issue Clearing House Certificates to All Banks ARRIVAL OF GOLD IMPORTS GIVES SUBSTANTIAL AID Banks and Trust Companies Ride the Storm of Runs Without Impairment, and the Situation Is Now Well In Hand. New York, October 26.-(Special.)-With the unanimous decision of the New York Clearing House association to issue clearing house certificates, leading financiers believe that the final steps have been taken to restore conditions in financial circles to their usual state. Of scarcely less importance as tending to restore confidence was the introduction of a resolution in the meeting of the Clearing House association applying for the readmission of trust companies to membership in the association. The announcement of the early arrival of gold imports from Europe further improved the situation today. There is a balance of $60,000,000 in our favor in the trading between Europe and the United States, and an influx of the yellow metal from Europe at this time will serve to hasten the return to normal conditions. With all these things operating to restore confidence the reaction which seu in on Friday continued unabated today. The suspension of the Terminal bank in Brooklyn, a small institution, had no effect on the situation. The Trust Company of America, the Lincoln Trust company and the other institutions which were imperiled by runs rode the storm, and their officials announced at the close of the day that tneir concerns would resume business Monday in good shape. It is understod that for the reason that Europe might get the idea that the cone ditions in New York are worse than they really are, J. P. Morgan and bankers in friendly association with them, opposed the issuance of the clearing house cer tificates, but gave way to the minority after the matter had been thoroughly threshed out Arranging Details. A committee, headed by Vice President Cannon of the Fourth National bank. was appointed to arrange the details for the issue. The final act of the meeting of the Clearing House association was the adoption of a resolution thanking Secretary Cortelyou and J. P. Morgan for their services during the time of the crisis, The regular weekly bank statement is sued today showed that the surplus which the banks had at the close of last week was entirely wiped out by the panic and that a deficit of $1,233,300 was created instead. A surprising feature of the statement was an increase of loans of $10,864,700. 11 had been expected that the enormous liquidation during the week would have resulted in a considerable decrease in this item. Frightened depositors in the Mechanics' and Traders bank. with 12 branches in Manhattan and Brooklyn, and the Broadway Trust company made a run upon these banks. All demands were met by these concerns, however. In a run on the Northern bank of New York there was so much disorder that the police had to be called. The Broadway Trust company adopted a rule that those who were withdrawing funds to pay off employes should have the first call today. General approval was given to the action of the presidents of the saving3 banks, all of which today put into effect the rule which compels the filing of 60 days notice of an intention to withdraw funds. Cortelyou's Statement. Secretary of the Treasury Cortelyou caused the following statement to be given out tonight: "On the occasion of a call on him this morning by representatives of the New York clearing house, Secretary Cortelyou asked that they convey to the clearing house his deep appreciation on behalf of the government of the courageous and high-minded manner in which they had upheld the interests, not only of the people of this city but in a sense the people of the whole country.' " Later the secretary called upon J. P. Morgan and expressed in similar terms his appreciation of the services rendered by Mr. Morgan and all who had cooperated with him in meeting the emergency. The sub-committee of the directors of the Knickerbocker Trust company, which is hoping to bring about a resumption of business of the company, met in executive session today. After the meeting Mr. Davies, the counsel for the company, said: "The committee met and after a discussion decided upon a plan of reorganization, with the end in view of resumption of business. This plan will be advertised in detail as a paid advertisement in the Monday morning newspapers. This to insure its accuracy and also its authenticity."

2. October 27, 1907 New-York Tribune New York, NY

Article from New-York Tribune, October 27, 1907

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Article Text

MANHATTAN RUNS ABATE. Nearly All Demands Are Paid and Excitement Is Subsiding. With the exception of runs 8n the Broadway Trust Company and the Northern Bank of New York, yesterday morning, the latter attended by disorder at the close. and the continued but decreased run on the Lincoln Trust Company, the bank situation was much improved and there were no further suspensions reported in Manhattan The situation in Harlem and The Bronx showed improvement also. The reflex of the restored confidence in Wall Street was apparent in the reduced crowds at the Harlem Savings Bank and the Dollar Savings Bank in The Bronx, where there have been runs. The run on the Northern Bank at Broadway and 4th street, resulted in the arrest of two depositors who refused to leave the bank when It closed at 12 o'clock, as allowed by law. When Henry Dimse. president of the bank, closed the doors, he said: "This bank is solvent. but we cannot pay off any more to-day A line of four hundred depositors extended at that hour from the paying teller's window to the street. Henry A. Belden, the cashier. came out and asked the depositors to leave the building When some of them refused Mr. Dimse telephoned for the police. but the depositors were stubborn and the police had no easy work in dispersing them. Eventually all of them left except the two men who were atrested. The Northern Bank has a capitalization of $300,000 and surplus and undivided profits of $239,099 The run on the Broadway Trust Company, at No. 756 Broadway, not far from the Northern Bank began at the opening of business An hour after the doors were opened the line contained three hundred and fity patrons. As the line grew Frederick G. Lee. vice-president, announced that the company would honor for the day only demands that were needed for payrolls. 'We are solvent, but we must have time," he said. Many of those waiting were there to draw money to pay off employes of nearby factories. and the money was sent to them in the afternoon. M. M Belding, jr., president of the company, said that $2,400,000 had been paid out in the week. He added "Up this minute we have paid off every demand. The Broadway Trust Company is capitalized at $700,000 and has deposits of $4,057,444. More than two-thirds of the deposits have been withdrawn, Mr. Belding said. The Harlem Savings Bank continued paying all small accounts, having availed itself the day before of the sixty-day clause on accounts of more than $100. The closing of the doors at the usual hour left about one hundred depositors in line. The readiness with which the Dollar Savings Bank in The Bronx has met all demands since the run began on Wednesday had its good effect, and while not altogether checked the demand was much diminished. Men and women had remained all night in the line in front of the bank, and some of the latter were nearly exhausted. The bank did not close at noon at usual on yesterday. but remained open until 3 o'clock, up to which time one thousand accounts had been closed, representing half of the $600,000 cash on hand. The excitement of a few days ago in Wall street, caused by the run on the Trust Company of America, was altogether absent yesterday. The all night crowd was much smaller and the paying out went on with reasonable rapidity. The company received $500,000 in deposits. Oakleigh Thorne, president of the company, said: "The institution occupies a stronger position at the end of this day than it did before. Colonel Heman Dowd. the vice-president, said: "The number of withdrawals were fewer to-day than we expected, and the deposits greater than we expected.' The situation at the Colonial branch of the Trust Company of America was much the same as at the main office. At both the main office and the Colonial branch the payments were made up to the usual Saturday closing hour. There were two hundred in line when the Lincoln Trust Company closed its day's business Louis Stern, one of the directors, said the Institution would meet every demand. Some of those in line when the bank closed were still there last night, apparently with the intention of remaining until Monday. When the Empire City Savings Bank, at No. 231 West 125th street, opened its doors there were four women and one man ready to hand in their passbooks for withdrawals. The Hamilton Bank remains closed. as do the United States Exchange Bank and the Twelfth Ward Bank, all in 125th street. There was a small run on the Bank for Savings, at Fourth avenue and 22d street, but it was not as heavy as on the two previous days. The bank has demanded sixty days' notice of withdrawal for large accounts. At 1 o'clock this morning there were forty-five persons waiting outside the Lincoln Trust Company, in Fifth avenue. They had numbers to show their places in line, and for the most part walked to and fro to keep warm, for the night was cold and raw. Some of them said they had received promises of $20 apiece to wait for the opening of the trust company. Outside the Trust Company of America, in Wall street, were twelve men, with numbers in their hats, waiting for the opening of banking hours tomorrow. Some had blankets to keep out the cold. The Colonial branch of the Trust Company of America was deserted

3. October 27, 1907 The Washington Times Washington, DC

Article from The Washington Times, October 27, 1907

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EARING HOUSE CERTIFICATES TO STRENGTHEN BANKS Association Decides to Adopt Strong Measures and Relief Is Certain. NEW YORK, Oct. 26. With the unan imous decision of the New York Clearing House Association today to issue clearing house certificates for the settlement of debit balances by the banks, leading financiers believe that the final steps have been taken to restore conditions in financial circles to their wonted calm. The issue of these certificates will release for general circulation a large sum of currency, and the scarcity of money new the only cloud that lingers on the horizon. s Of scarcely less importance as tending to restore confidence was the introduction of a resolution in the meeting of the Clearing House Association providing for the readmission of trust companies to membership in this assoclation. This will place the trust companies under the rules of the clearing house, and tend to prevent recurrence of the situation which brought about the slump last week. News of Gold Imports Aid. Announcement of the early arrival of gold imports from Europe further improved the situation today. There is a balance of $60,000,000 in our favor in the trading between Europe and the United States, and an influx of the yellow metal from Europe at this time will serve to hasten the return to normal conditions in the financial world. Heidelbach, Ikelheimer & Co., of 37 William street, today announced that the first of the gold imports, $1,500,000 in amount, will arrive here Wednesday. With all these agencies operating to restore confidence, the reaction set in Friday continued unabated today, and the sun began to shine on Wall Street again. Except for the suspension of the Terminal Bank, in Brooklyn, a small Jenkins institution, whose closing had no effect on the situation, every report that went out over the ticker was fa. vorable. Stock Market Firm. The stock market continued firm and money was comparatively easier. The Trust Company of America, the Lincoln Trust, and the other institutions which were imperiled by runs rode the storm and their officials announced at the close of the day that their concerns would resume business Monday in capital shape to meet any demands that might be made upon them. It is understood that for the reason that Europe might get the idea that conditions are worse in New York than they reall are. J. P. Morgan and bankers in friendly association with them, opposed the issue of clearing house cer tificates, but gave way to the majority after the matter had been thoroughly threshed out. A committee headed by Vice President Cannon, of the Fourth National Bank was appointed to arrange the details for the issue. Banks will be permitted to avail themselves of the certificates to the amount of 75 per cent of their debit balances Financial men almost without exception declared after the adjournment of the meeting that this measure will undoubtedly bring to the situation the relief that is needed to restore confidence and stability to the market The final act of the meeting of the clearing house association was the adoption of a resolution thanking Secretary of the Treasury Cortelyou and J. Pierpent Morgan for their services during the time of the crisis. Surplus Was Wiped Out. The regular weekly bank statement issued today showed that the surplus which the banks had at the close of last week was entirely wiped out by the flurry, and that a deficit of $1,233,300 was created instead. A surprising feature of the statement was an increase of loans of $10,864,700. It had been expected that the enormous liquidation in the market during the week would have resulted in a considerable decrease in this item. While the skles were clearing in Wali Street, frightened depositors in- the Mechanics and Traders' Bank, 565 Broadway, with twelve branches in Manhattan and Brooklyn, and in the Broadway Trust Company, Broadway and Eighth street, made a descent upon the two institutions, and there were lively withdrawals for some time. All demands were met by the two concerns however. In a run on the Northern Bank of New York, Broadway and Fourth street, there was so much disorder that the police had to be called. The Broadway Trust Company adopted a rule that those who were withdrawing funds to pay off employes should lave the first call today. General approval was given to the action of the presidents of the savings banks, all of which today put into effect the rule which compels the filing of sixty days' notice of an intention to withdraw funds.

4. October 28, 1907 The Washington Times Washington, DC

Article from The Washington Times, October 28, 1907

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Stock Market Strong and Advances All Along Line. Engagementof$9,000000 From London Helps Some. NEW YORK, Oct. 28.-A general restoration of confidence was indicated by the banking situation, following the improvement during the opening hours of business today. The stock market was strong under buying orders from London and advances of from one to three points were made in all active dividend-paying stocks. The engagement of $9,000,000 of gold by New York banks for immedi< ate importation from London gave much strength to the situation. The action of clearing houses in various cities in following the lead of New York in deciding to issue clearing house certificates was looked upon as a measure of safety and conservatism. The Lincoln Trust Company and the Trust Company of America paid all comers, and their lines were by far the smailest since the runs began. Minor Runs Started. Minor runs were started today on two smailer financial institutions. At the Northern Bank of New York, at Broadway and Fourth street, about seventyfive people were constantly in line. The bank officials saw to it that all the frightened depositors Were allowed in the bank out of the rain and they were paid off as rapidly as possible. Lack of sufficient small bills was given as an excuse by the officers for delay in making payments. At the Broadway Trust Company's institution about seventy-five people were also in line constantly. Paying off was conducted as rapidly as pos= sible. Officers declared the firm solvent and able to meet all demands. A report that a run nad started on the Mechanics' and Traders' Bank, which was circulated several times last week, was revived today. Investigation shewed only about thirty persons in the banks. Most of these were making deposits. At both the Broadway Trust Company and North Bank officials stated deposits were being made to almost as great an extent as withdrawals.

5. October 28, 1907 The Washington Times Washington, DC

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Stock Market Strong and Advances All Along Line. Engagementof$9,000000 From London Helps Some. NEW YORK, Oct. 28.-A general restoration of confidence was indicated by the banking situation, following the improvement during the opening hours of business today. The stock market was strong under buying orders from London and advances of from one to three points were made in all active dividend-paying stocks. The engagement of $9,000,000 of gold by New York banks for immediate importation from London gave much strength to the situation. The action of clearing houses in various cities in following the lead of New York in deciding to issue clearing house certificates was looked upon as a measure of safety and conservatism. The Lincoln Trust Company and the Trust Company of America paid all comers, and their lines were by far the smallest since the runs began. Minor Runs Started. Minor runs were started today on two smailer financial institutions. At the Northern Bank of New York, at Broadway and Fourth street, about seventyfive people were constantly in line. The bank officials saw to it that all the frightened depositors were allowed in the bank out of the rain and they were paid off as rapidly as possible. Lack of sufficient small bills was given as an excuse by the officers for delay in making payments. At the Broadway Trust Company's institution about seventy-five people were also in line constantly. Paying off was conducted as rapidly as possible. Officers declared the firm solvent and able to meet all demands. A report that a run nad started on the Mechanics' and Traders' Bank, which was circulated several times last week, was revived today. Investigation showed only about thirty persons in the banks. Most of these were making deposits. At both the Broadway Trust Company and North Bank officials stated deposits were being made to almost as great an extent as withdrawals.

6. October 29, 1907 New-York Tribune New York, NY

Article from New-York Tribune, October 29, 1907

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UPTOWN BANKS QUIET. Runs Practically Over - Closed Places to Open Soon. Everywhere, uptown and in Harlem. yesterday the bank situation was so decidedly improved that the lines outside some of the institutions attracted little attention. The banks opened and closed at the usual hours and paid all waiting depositors. The lines were longer than ordinarily, but they hardlly constituted "a run." There was an absolute absence of excitement. At the Lincoln Trust Company, in Fifth avenue, around which has centred most of the interest uptown in the last week, there were waiting about sixty persons at the opening hour, most of whom had been there through the wet night before. Most of them were messengers, holding places. Each bore a number, and when the company opened its doors took his place in line accordingly. No. 1 was A. Y. Cornell, who would not say whom he represented. He drew out $75,000. it was said. Payments were made more rapidly than heretofore. Mr. Phillips said at the close of the day that he was much encouraged by the improvement in the conditions. He believed the excitement about over. At a late hour last night fifty-flve persons were in line at the Lincoln Trust Company, where they were holding an all night vigil waiting for the opening this morning. Most of them were equipped with raincoats or blankets and all were doing their best to keep out of the way of the rain that was pelting down. As many as were able grouped under the big portico in front while those who were crowded out of this shelter held an "overflow" meeting under the entrance to the Cafe Martin, which is next door. There were only thirty-five in line at the branch of the Lincoln Trust Company at Broadway and Lispenard street. The crowd at the Broadway Trust Company was much emailer than on Saturday, there being not more than seventy-five in line yesterday morning. The depositors obtained their money at once on presentation of their checks. At the end of the day there were only six left In the line. Charles H. Hyde, one of the directors of the company, said that it would continue to meet all demands. The excitement that prevailed at the Northern Bank on Saturday was entirely lacking yesterday. There were about sixty depositors there at the pening. and all were promptly paid. The Harlem Savings Bank, which has been the crux of the Harlem situation, presented an encouraging improvement. About one hundred depositors were there to draw small amounts yesterday morning. None drew more than $100. while among the forty who came to deposit money was one who put in $800. All appearances of a run were gone by noon. The officials of the Hamilton Bank. United States Exchange Bank and Twelfth Ward Bank, all in 125th street and which are in the hands of bank examiners, hope to resume business in a few days. The run on the Dollar Savings Bank, in The Bronx. had spent its force last week, and yesterday the line never numbered over sixty persons.

7. October 30, 1907 New-York Tribune New York, NY

Article from New-York Tribune, October 30, 1907

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HARLEM BANKS MAY SOON REOPEN. The announcement was made yesterday that the Harlem banks that suspended last week would open in a few days. Attorney General Jackson said that he would give them every opportunity to resume business and would take no steps against them If their condition justifled their resumption. William Montgomery, president of the Hamilton Bank, in 125th street, speaking for that institution, said that it would reopen not later than next Monday, The same was said of the Twelfth Ward Bank. The run on the Harlem Savings Bank was ended yesterday. Many patrons returned to deposit the money they drew out last week. The conditions at the Empire City Savings Bank also were normal. There was none of the unusual activity of the last few days at the Dollar Savings Bank, in The Bronx. The run on the Broadway Trust Company had also abated.