Knickerbocker Trust Company

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: trust company
Start Date: October 22, 1907
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: abcb09ab

Response Measures

Full suspension

Other: Reopened after temporary closure; no depositor losses reported.

Description

Multiple articles recount Ida Tarbell's description of the Oct 1907 episode: on Oct 21, 1907 the National Bank of Commerce refused to clear for Knickerbocker; the next morning a run began and in a few hours it was forced to close its doors, but it later pulled itself together and finally opened its doors. Cause is the correspondent/clearing relationship (notification to stop clearing). Reopening date not specified in these clippings.

Events (3)

1. October 22, 1907 Run

Cause: Correspondent
Cause Details: National Bank of Commerce suddenly notified Knickerbocker it could no longer clear for it; news spread and next-morning withdrawals began.
Measures: None specified in detail in these clippings besides later recovery; articles note the bank pulled itself together.
Newspaper Excerpt: the next morning a run began on the Knickerbocker which in a few hours forced it to close its doors.
Source: newspapers

2. October 22, 1907 Suspension

Cause: Correspondent
Cause Details: Closure followed the sudden cessation of clearing by the National Bank of Commerce; the run forced the bank to close its doors (suspend).
Newspaper Excerpt: in a few hours forced it to close its doors.
Source: newspapers

3. * Reopening

Newspaper Excerpt: it pulled itself together and finally opened its doors. No depositor or stockholder lost anything through it.
Source: newspapers

Newspaper Articles (5)

1. June 18, 1913 The Richmond Palladium and Sun-Telegram Richmond, IN

Article from The Richmond Palladium and Sun-Telegram, June 18, 1913

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Article Text

need of such reform, she cites in the American Magazine, the following case of the Knickerbocker Trust company of New York: "On the afternoon of October 21, 1907, the National Bank of Commerce suddenly notified the Knickerbocker Trust Company that it could no longer clear for it. The news went out, and the next morning a run began on the Knickerbocker which in a few hours forced it to close its doors. Now, although the Knickerbocker's affairs were in a very bad shape, it not only had resources to pay all its debts, but it had a surplus. It had received a body blow, but it pulled itself together and finally opened its doors. No depositor or stockholder lost anything through it. That one bank should have such a power over another bank is contrary to all sound policy. The Clearing House itself could not have treated a member so summarily; that is, the Clearing House by its own rules would have had to give the Knickerbocker some decent notice, and, unless it had been intent on getting rid of it for some reason, good or bad, would have felt an obligation to help it through any temporary embarrassment,-that is, as long as it was solvent,this for the sake of its own reputation as well as for the sake of the community. That is not saying that there would have been no panic in 1907, it is simply saying that it would not have been precipitated in the unnecessary way it was; that is, the community would have been better protected if the Knickerbocker had been a member of the Clearing House, than it was with the Knickerbocker subject to the will of a sister bank."

2. June 21, 1913 The Logan Republican Logan, UT

Article from The Logan Republican, June 21, 1913

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Article Text

THE BODY BLOW THAT STARTED THE PANIC OF 1907 Ida M. Tarbell writing in the July American Magazine about the New York clearing house says: "On the afternoon of October 21, 1907, the National Bank of Commerce suddenly notified the Knickerbocker Trust company that it could no longer clear for it. The news went out and the next morning a run began on the Knickerbocker which in a few hours forced it to close its doors. Now although the Knickerbocker's affairs were in a very bad shape, it not only had resources to pay all its debts but it had a surplus. It had received a body blow, but it pulled itself together and finnally opened its doors. No depositer or stockholder lost anything through it. That one bank should have such a power over another bank is contrary to all sound reason. The Clearing House itself could not have treated 21. member so summarily; that is the clearing house by its own rules would have had to give the Knickerbocker some decent notice, and unless it had been intent on getting rid of it for some reason, good or bad, would have felt an obligation to help it through any temporary embarrass. ment-that is, as long as It was solvent- this for the sake of its own reputation as well as for the sake of the community. That is not saying that there would have been no panic in 1907, it is simply saying that it would not have been precipitated in the unnecessary way it was; that is the community would have been better protected if the Knickerbocker had been a member of the Clearing House than It was with the Knickerbocker subject to the will of a sister bank.

3. June 27, 1913 Little Falls Herald Little Falls, MN

Article from Little Falls Herald, June 27, 1913

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Article Text

THE BODY BLOW THAT STARTED THE PANIC OF 1907 Ida M. Tarbell, writing in the July American Magazine about the New York Clearing House, says: "On the afternoon of October 21, 1907, the National Bank of Commerce suddenly notified the Knickerbocker Trust Company that it could no longer clear for it. The news went out, and the next morning a run began on the Knickerbocker which in a few hours forced it to close its doors. Now, although the Knickerbocker's affairs were in a very bad shape, It not only had resources to pay all its debts, but it had a surplus. It had received a body blow, but it pulled itself together and finally opened its doors. No depositor or stockholder lost anything through it. That one bank should have such a power over another bank The is contrary to all sound policy. Clearing House itself could not have treated a member SO summarily; that is, the Clearing House by its own ruless would have had to give the Knickerbocker some decent notice, and unless it had been intent on getting rid of it through any temporary embarrassment,-that is, as long as it was solvent-this for the sake of Its own reputation as well as for the sake of the community. That is not saying that there would have been no panic in 1907, it is simply saying that it would not have been precipitated in the unnecessary way it was; that is, the community would have been better protected if the Knickerbocker had been a member of the Clearing House, than it was with the Knickerbocker subject to the will of a sister bank."

4. June 30, 1913 The Barre Daily Times Barre, VT

Article from The Barre Daily Times, June 30, 1913

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Article Text

The Body Blow that Started the Panic of 1907. Ida M. Tarbell, writing in the July American Magazine about the New York Clearing House, says: "On the afternoon of October 21, suddenly notified the 1907, the National Bank of Commerce suddenly notified the Knickerbocker Trust company that it could no longer clear for it. The news went out, and the next morning a run began on the Knickbocker which in a few hours forced it to close its doors. Now, although the Knickerbock's affairs were in a very bad shape, it not only had resources to pay all it's debts, but it had a surplus. It had received a body blow, but it pulled itself together and finally opened its doors. No depositor or stockholder lost anything through it. That one bank should have such a power over another bank is contrary to all sound policy. The clearing house itself could not have treated a member SO summarily; that is, the clearing house by its own rules would have had to give the Knickerbocker some decent notice, and, unless it had been intent on getting rid of it for some reason, good or bad, would have felt an obligation to help it through any temporary embarrassment,-this for the sake of its own reputation as well as for the sake of the community. That is not saying that there would have been no panic in 1907, it is simply saying that it would not have been precipitated in the unnecessary way it was; that is, the community would have been better protected if the Knickerbocker had been a member of the clearing house, than it was with the Knickerbocker subject to the will of a sister-bank. , ,

5. February 20, 1914 The Wheeling Intelligencer Wheeling, WV

Article from The Wheeling Intelligencer, February 20, 1914

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Article Text

# WELLSBURG WELLSBURG, W. Va., Feb. 19. It the supreme court of West Virginia decides the case involving the coal lands of Buaaio creek in favor of the local creditors of the company, the decision which is looked for almost daily, it means the developing of an immense coal tract within a few miles of Welisburg, that will make this city one of the leading coal centers of the state and also revive the State Line railroad that has lain idle for a number of years. The Wellsburg Coal company, composed motsly of local men, was organized by Luke F. Darrell, the company buying 1,100 acres of coal land out Buffalo creek. They immediately began building a coal tipple and opening up a mine, and surveyed and built a railroad to the property, through a subsidiary company. The railroad was known as the Wellsburg & Buffalo Valley railroad, but more commonly known as the State Line railroad. It is still in good shape and, with the building of a few bridges over Buffalo creek, it could soon be put in operation. When the coal company was first organized, a New York concern issued bonds to finance it, and pledged the bonds to the Knickerbocker Trust company, of New York city, for cash, which afterward suspended business, and some New York parties bought the bonds for a very small sum, knowing at the time that the bonds they bought were already in the courts. In several cases between the local creditors of the company and the New York bond holders, the local men have won, and they have every reason to feel confident that the supreme court decision will also be in their favor. The local men are represented by Attorney John O. Palmer, Jr., and T. S. Riley, of Wheeling, is the attorney for the New York bond holders. It is expected that the supreme court decision wilt be handed down within the next three months.