16344. New Amsterdam Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1908*
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
fe65f8de

Response Measures

None

Description

The New Amsterdam Bank suspended/closed in the aftermath of the 1907-08 money stringency and was placed in receivership (J. H. Edwards accepted receivership in March 1908). Coverage indicates the bank was forced to close after Clearing House committee actions calling in certificates, and the institution was later liquidated under a receiver. There is reporting of runs on other banks (Oriental) but the articles emphasize Clearing House pressure as the proximate cause for closure rather than a single isolated misinformation-driven run on New Amsterdam itself.

Events (2)
1. January 1, 1908* Suspension
Cause
Local Banks
Cause Details
Clearing House committee called for payment/redemption of clearing house certificates (letter Jan 25) which precipitated the banks' inability to continue and forced them to close despite testimony they were solvent; closure tied to actions of other local clearing-house banks rather than an isolated misinformation event.
Newspaper Excerpt
The New Amsterdam bank and the Mechanics' and Traders' bank of New York have closed.
Source
newspapers
2. March 19, 1908 Receivership
Newspaper Excerpt
Secretary Cortelyou said today that Mr. Edwards had decided to accept the receivership of the New Amsterdam bank, of New York, which suspended during the late money stringency.; Suddenly he was called into the Cortelyou office and told that he was appointed receiver for the New Amsterdam bank, which recently failed in New York, Edwards will receive $20,000 a year for his work as receiver ...
Source
newspapers

Newspaper Articles (15)
1. January 30, 1908 Fitzgerald Enterprise Fitzgerald, GA
Article from Fitzgerald Enterprise, January 30, 1908

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Run On Oriental Bank. Special to the Fitzgerald Enterprise. New York, Jan. 30 -As a result of the closing of two financial institutions last p. m. a small run this morning developed on the oriental Bank and about seventy five persons were in line at the payin g telers window. All demands being met promptly. The directors of both the New Amsterdam Bank and Mechanics and traders bank closed yesterday assert this morning that their banks are postively solvent aud that all depositors will be paid in full.

2. February 5, 1908 The Lamar Register Lamar, CO
Article from The Lamar Register, February 5, 1908

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The Standard Oil company has acquired a monopoly of the oil business in South Africa. After withstanding a run for one day the Oriental bank at New York failed to open its doors. The South Carolina legislature has killed the state-wide prohibition bill. The operating vice-presidents of a large number of railroads held a con ference with President Roosevelt for the purpose of securing delay in the enforcement of certain laws about to become operative. They were referred to the interstate commerce commis sion. The act of congress of June 1, 1898, prohibiting railroad companies from discriminating against members of labor organizations in the matter of employment has been declared unconstitutional by the United States supreme court. The Pittsburg, Pa., stock exchange has opened for business after having been closed three months on account of the financial flurry. With the swearing in of George P. Wetmore as senator from Rhode Island the membership of the senate is increased to 92 for the first time in the history of the country. The recent argument of District Attorney Jerome in the Thaw case was in decided contrast to that of the former trial. Instead of abuse for the defendant and his wife, he had only kind words for young Mrs. Thaw and denounced Stanford White in unmeasured terms. The Oriental bank at New York successfully withstood a run of depositors who were frightened by the failure of the New Amsterdam and Mechanic and Traders' banks. At a recent auction sale in London American buyers succeeded in getting the flag of the American man-of-war Chesapeake and the "Balaclava Bugle," two or the most valuable relics offered. The Carnegie Hero Fund commission has donated $25,000 to the widows and children of 250 victims of the Jacob's Creek (Pa.) mine disaster. The Oklahoma house has passed a measure prohibiting the smoking of cigarettes in the state. The taking of testimony in the government's suit to dissolve the tobacco trust, has been transferred from New York to Louisville, Ky. The warehouse of Henry Coburn & Co., in Indianapolis, was recently destroyed by fire. The loss on building and contents aggregated $1,000,000. James Short, an old settler of Lyon county, Kan., and a civil war veteran, committed suicide at Emporia recently. The 17th annual banquet of the Kansas Day club was held at Topeka as usual. S. J. Haskins, of Olathe, was chosen president for next year. The new reciprocity agreement between France and the United States was recently signed at Washington by Secretary Root and Ambassador Jusserand. The taking of evidence in the Thaw case was brought to a sudden end when District Attorney Jerome refused to put witnesses on the stand to rebut the testimony of alienists for the defense. The supreme court of Ohio has declared the state primary law to be valid. Two thousand delegates attended the 20th annual convention of the Southwestern Lumbermen's association recently held in Kansas City. t At Newton, Kan., a fire in the business district destroyed six stores cause ing a loss of $150,000. a Coal operators in the Oklahoma field have so far refused to grant an increase in wages to miners and unless such action is taken before April 1 a strike of 10,000 will result. The Northern Pacific Railroad company has been fined $100 at Helena, Mont., for violating the 16-hour law a by compelling a crew to work 23 consecutive hours. The case will be appealed to test the law. The New Amsterdam bank and the Mechanics' and Traders' bank of New

3. February 7, 1908 The Ordway New Era Ordway, CO
Article from The Ordway New Era, February 7, 1908

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The Standard ou company TA quired a monopaly of the oil business in South Africa. After withstanding a run for one day the Oriental bank at New York failed to open its doors. The South Carolina legislature has killed the state-wide prohibition bill. The operating vice-presidental of a large number of railroads held a con with President Roomevelt for the of securing ference purpose delay about in the to enforcement of certain laws become operative. They were referred to the interstate commerce commite sion. The act of congress of June 1. 1898. prohibiting railroad companies from discriminating against members of labor organizations in the matter of employment has been declared unconstitutional by the United States supreme court. The Pittsburg. Pa., stock exchange has opened for business after having been closed three months on account of the financial durry. With the swearing in of George P. Wetmore 18 senator from Rhode Island the membership of the senate is increased to 92 for the first time in the history of the country The recent argument of District Atturney Ierome in the Thaw case was in decided contrast to that of the for mer trial. Instead of abuse for the defendant and his wife. he had only kind words for young Mrs. Than and innounced Stanford White in unmeasured terms. The Oriental bank at New York que. cessfully withstood a run of depositare who were frightened by the failure of the New Amsterdam and Mechanic and Tradery banks At 1 recent metion sale in London American buyers succeeded in getting the dag of the American man-of-war Chesapeake and the "Balaclava Bugie. two or the most valuable relies offered. The Carnegie Euro Fund commisston has donated $25,000 to the wide ows and children of 250 victims of the Jacab's Creek (Pa.) mine disaster The Oklahoma house has passed a measure prohibiting the smoking of cigarettes in the state The taking of testimony in the government's suit to dissolve the tobacco crust. has been transferred from New York to Louisville, Ky. The warehouse of Henry Coburn & Co., in Indianapolis. was recently destroyed by dre. The (OHB on building and contents aggregated $1,000,000. James Short. an old settler of Lyon county Kan. unit a civil war veteran, committed suicide at Emporia recently The 17th annual banquet of the Kansas Day club was held at Topeka IN usual. S. I Haskins. of Olathe, was chosen president for next year. The new reciprocity agreement beween France and the United States van recently signed at Washington hv Secretary Root and Ambassador Jusgerand. The taking of evidence in the Thaw case was brought to a sudden end when District Attorney Jerome re1 fused to put witnesses on the stand , o rebut the testimony of allenists for the telense. The supreme court of Ohio has declared the state primary law to be valid. Two thousand delegates attended the 20th annual convention of the Southwestern Lambermen's associa: tion recently heid in Kansas City. At Newton. Kan. a fire in the bustness district destroyed six stores cans1 1115 1 JOHN of $150,000. Coal operators in the Oklahoma field t have so far refused to grant an increase in wages to miners and unless 1 such action is taken before April 1 a t strike of 10,000 will result. . The Northern Pacific Railroad com1 pany has been fined $100 at Helena. Mont.. for violating the 16-hour law I hv compelling a crew to work 23 con1 recutive hours. The case will be ap. pealed to test the law The New Amsterdam bank and the : Mechanics' and Traders' bank of New York have closed. n Personal. It William J. Bryan has issued a state(1 ment in which he declares the presi-

4. February 7, 1908 Rocky Ford Enterprise Rocky Ford, CO
Article from Rocky Ford Enterprise, February 7, 1908

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The Standard Oil company has acquired a monopoly of the oil business in South Africa. After withstanding a run for one day the Oriental bank at New York failed to open Its doors. The South Carolina legislature has killed the state-wide prohibition bill. The operating rice-presidents of a large number of railroads held a con ference with President Roosevelt for the purpose of securing delay in the enforcement of certain laws about to become operative. They were referred to the interstate commerce commis sion. The act of congress of June 1. 1898. prohibiting railroad companies from discriminating against members of labor organizations in the matter of employment has been declared uncon stitutional by the United States su. preme court. The Pittsburg. Pa., stock exchange has opened for business after having been closed three months on account of the financial Burry. With the swearing in of George P Wetmore as senator from Rhode Island the membership of the senate is in creased to 92 for the first time In the history of the country. The recent argument of District Attorney Jerome in the Thaw case was in decided contrast to that of the former trial. Instead of abuse for the defendant and his wife. he had only kind words for young Mrs. Thaw and denounced Stanford White in unmeas ured terms. The Oriental bank at New York suc withstood a run ors cessfully who were frightened by of the deposit- failure of the New Amsterdam and Mechanic and Traders' banks. At a recent auction sale in London the the American flag of buyers American succeeded man-of-war in getting Chesapeake and the "Balaclava Bu. gle." two or the most valuable relies offered. The Carnegie Hero Fund commission has donated $25,000 to the widows and children of 250 victims of the Jacob's Creek (Pa.) mine disas ter. The Oklahoma house has passed a measure prohibiting the smoking of cigarettes in the state. The taking of testimony in the government's suit to dissolve the tobacco trust. has been transferred from New York to Louisville, Ky. The warehouse of Henry Coburn & Co., in Indianapolis, was recently destroyed by fire. The loss on building and contents aggregated $1,000,000. James Short. an old settler of Lyon county. Kan.. and a civil war veteran. committed suicide at Emporia recently. The 17th annual banquet of the Kansas Day club was held at Topeka as Olathe, was usual. chosen S. president J. Haskins. for next of year. The new reciprocity agreement between France and the United States was recently signed at Washington by Secretary Root and Ambassador Jusserand. The taking of evidence in the Thaw case was brought to a sudden end when District Attorney Jerome refused to put witnesses on the stand to rebut the testimony of alienists for the defense. The supreme court of Ohio has de clared the state primary law to be valid. Two thousand delegates attended the 20th annual convention of the Southwestern Lumbermen's associa tion recently held in Kansas City. At Newton, Kan., a fire in the business district destroyed six stores causing a loss of $150,000. , Coal operators in the Oklahoma field t have so far refused to grant an increase in wages to miners and unless such action is taken before April 1 a n strike of 10,000 will result. t The Northern Pacific Railroad comn pany has been fined $100 at Helena, Mont., for violating the 16-hour law he compelling a crew to work 23 cona will he an secutive hours. The Case n pealed to test the law. The New Amsterdam bank and the Mechanics' and Traders' bank of New York have closed. n Personal. e William J. Bryan has issued a statement in which he declares the president's recent special message to con gress was a brave one and badly needed at this time. The president and Mrs. Roosevelt . recently entertained the members of e the supreme court at dinner at the h White house. Edward Cromwell, a direct descendant of Oliver Cromwell, is dead in

5. February 11, 1908 New-York Tribune New York, NY
Article from New-York Tribune, February 11, 1908

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BOARD MONEY IN SUSPENDED BANKS. Another alleged result of the closing of the Oriental and New Amsterdam banks a few days ago came to light last night when Robert P. Murphy, manager of the Hotel Albany, 41st street and Broadway, admitted that he had been obliged to call a meeting of his creditors and agree to settle with them for 60 cents on the dollar. The meeting was held last Friday. Mr. Murphy explained that if his creditors pressed him for payment he would have to suspend, and that as a result they would probably lose most of their money. He said that if they would give him thirty days' grace, however, he would be able to pay the greater part of the money that he owed. The creditors finally agreed to the plan. When asked the reason for his financial straits last night he explained that most of his guests, who are permanent ones, had money tied up in either the Oriental or the New Amsterdam Bank. In consequence they were unable to pay their boardbills and he was suffering.

6. February 13, 1908 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, February 13, 1908

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The Musical World By Genevra Johnstone Bishop. HARLES GILBERT says of Charpentier, the Frenchman who wrote C the comparatively new opera, "Louise": "Speaking of 'Louise,' let me say something of Charpentier and some false impressions of the man that seem to obtain in the United States. He was not the incurable Bohemian as has been said, although he did for a time lead a Bohemian life, which led him to catch a feeling which he introduced into his work-a feeling of the people-and the people appreciating the sincerity and the truth of the spirit of his music and his drama, elevated him on a wave of popularity. "I knew Charpentier well. He was my classmate at the Conservatoire. He has not written a great deal. He won a prize at the Conservatoire with a cantata, 'Dedon,' depicting the siege of Troy, composed for tenor, soprano, basso and orchestra, without chorus, in 1888, the same year I won a prize for voice. "He has also written 'Le Vie du Poete,' a legend; a symphonic poem entitled 'Impressions d'Italie,' and 'Louise,' his only opera. He had intended to make a trilogy of the life of 'Louise,' the second opera to show her happy with the man she left home with at the end of the first, and the third to depict her with her children about her. You will hear many fantastic stories of Charpentier. He was never married, and stories of his separation from his wife are naturally not true. Nor, of course. can it be authentic that after their separation, she, hearing that 'Louise' depicted his life, went to the opera to see what sort of a man he had been. It's all absurd. It was not a case of clash of artistic temperaments. The first attempt to produce Wagner's complete "Ring" tetralogy in English began at Covent Garden this month with a performance of "Das Rheingold,' under the conductorship of Hans Richter. The American singer, Clarence Whitehill, took the sole of Wotan. "Die Walkure." "Siegfried" and "Gotterdammerung" are to follow. It is said that it was one of Wagner's ambitions in life to hear his operas in English. "Conried's regime is now near an end." says America. and will make formal announcement of retirement when his successor is named. A grand benefit concert is to be given at Simpson auditorium Monday night by a combination band of sixty musicians under the direction of Francesco Ferullo for the benefit of Chev. Rivela, who is ill and confined to his bed. The last Badby musical morning at the Waldorf-Astoria was given last Monday. The artists were Madame Nordica, Emilo de Gogorze and Gerardy, with Arthur Rosenstein at the piano. Schumann-Heink was too ill to sing at Philadelphia last week. Miss Spencer, the contralto, took her place. Giuseppe Giacosa, who wrote the libretto for "Madam Butterfly" in collaboration with Luigi Illica of Milan, a died last month. He was considered t one of the greatest modern Italian dramatists. C S Last week "Siefried" was given at I Covent Garden (London) and the per( formance began at 6:30 p. m. Her mat jesty Queen Alexandra, evidently not T intending to go hungry, arranged to b have her dinner taken to her, and she a enjoyed it very much in her box with her ladies. Now no doubt, "box dinI ner parties' will be considered "smart." t r Madame Rosina Van Dyk is engaged r at Prague as the leading soprano for 1 the season. U Riceardo Martin, the young AmeriI can tenor, scored a great success as S Pinkerton in "Butterfly" at the Metro1 politan last Saturday night. Limited t as are the opportunities the role afe fords, he sang with such beauty of a voice and suavity of style and acted e with such convincing effect that his S performance made a profound impression. V O The prize of $2500 offered by the Ri1 cordis of Milan for an opera in English II by a British composer has been awarded to Dr. Edward Woodal NayC lor of Cambridge for a work entitled "The Angelus." Liza Lehmann has a new song cycle out. called "Nonsense Songs," from "Alice in Wonderland.' S The closing of the New Amsterdam bank last week affected a number of well known operatic singers and musicians. Enrico Caruso had $40,000 deposited there, and when the news that that institution had suspended business was carried to the tenor, during the performance of "Manon Lescaut,' at the Metropolitan, he became SO excited and unnerved that it was feared the opera would have to stop. "Oh, my money! My money!" sobbed Caruso, and it was not until his friend Bartholemy assured him that the suspension was only temporary that the singer was able to go on for

7. March 17, 1908 The Washington Herald Washington, DC
Article from The Washington Herald, March 17, 1908

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as Assistant Secretary of that department, made himself deservedly popular by his efficient services with those who were associated with him. A man of exceptional ability. he merited the esteem of his superiors, and it was with regret that Secretary Cortelyou sanctioned his departure. The retiring Assistant Secretary will be succeeded by Louis Coolidge, who will take the oath of office to-day. Mr. Edwards, the retiring Assistant secretary, came to Washington from Ohio, and has administered the affairs of the office in a particularly able manner. He has enjoyed the confidence of bla superiors to a marked degree and has been deservedly popular with those who frequent the second floor of the Treasury Building. Secretary Cortelyou said yesterday that Mr. Edwards had received three attractivo offers from financial institutions in New York, but that he prevailed upon Mr. Edwards to suspend consideration of them for a time. He did so, he said, because he felt that he needed Mr. Edwards' services in the receivership of the New Amsterdam Bank. He added that he regarded his assistant as especially qualified for this work. Mr. Cortelyou said he regretted exceedingly that Mr. Edwards was leaving the Assistant Sec. retaryship, as he had discharged the duties of that office with excep ional ability. It was stated yesterday that the New Amsterdam Bank will eventually resume business. and that other institutions in the same vicinity will be consolidated with it to form a banking house of large capital. Mr. Edwards will, as receiver, take an active part in the reorganization of the New Amsterdam and the other banks which are to be consolidated with that institution, and it is supposed that his appointment is preliminary to his election as president of the consolidated concern. Mr. Edwards was private secretary to Leslie M. Shaw when Mr. Shaw was Secretary of the Treasury, and was appointed Assistant Secretary when Robert M. Armstrong retired from the department to become president of a banking institution in New York. Business on the Washington Stock Exchange yesterday was small in volume, chiefly because there was little stock to be had. It was clear to the observer that there was a good demand for stocks. Prices were in most instances bid up, brokers standing ready to take shares at prices better than the closing bid. Indeed, there was a good deal of sparring in the way of bids, in the hope of uncovering stock; and the impression left by the day's business was that much more stock could have been soid than was offered. The chief business was the utility shares, Capital Traction leading. It sold somewhat under the highest of last week, at 118 1-2 and 119. Washington Railway and Electric preferred went at 70 1-8, and 24 1-2 was bid for the common. Gas was sold in fractional lots above 62, and Washington Railway and Electric 4s brought L321-2.

8. March 26, 1908 The Republican Oakland, MD
Article from The Republican, March 26, 1908

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There were explanations of course, but explanations do not provide places paying $5,000 a year and much honor. A few weeks before Edwards had declined invitations to be a bank president, and his sudden throught was the harder to bear. Suddenly he was called into the Cortelyou office and told that he was appointed receiver for the New Amsterdam bank, which recently failed in New York, This was a characteristic action by Cortelyou. He is ever alert to aid young men and reward the virtuous. Edwards will receive $20,000 a year for his work as receiver and no doubt he will graduate into a bank president in the great financial district of the east. Edwards began here as a congressman's secretary and is little past 30, SO that his rise has been rapid. He comes from South Charleston, Ohio, and he owes some of his promition and rise to the friendship of Elmer Dover.

9. March 26, 1908 Heppner Gazette Heppner, OR
Article from Heppner Gazette, March 26, 1908

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Becomes Bank Receiver Washington, March 19.-The resignation of J. H. Edwards, assistant to the secretary of the treasury in charge of the financial bureau, which was tendered some time ago, will take effect tomorrow, when L. A. Coolidge, who has been confirmed by the senate, will take charge. Secretary Cortelyou said today that Mr. Edwards had decided to accept the receivership of the New Amsterdam bank, of New York, which suspended during the late money stringency.

10. August 8, 1908 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, August 8, 1908

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MORSE'S SECRET IS AT LAST DISCLOSED Federal Indictment Discloses How He Was Able to Secure Large Sums. IS ONLY A FIGUREHEAD. PARTY TO SCHEME PLANNED BY CERTAIN FRIENDS OF HIS DUPES TO SECURE CONTROL OF GREAT BANKING HOUSE. New York, Aug. 8.-A new federal indictment against Charles W. Morse yesterday led to the revelation of the secret of his ability to pay in full the $2,000,000 of deposits in his National bank of North America within six months of the date when the alleged bankrupt and fugitive from justice was brought back here by the police. It appears that Mr. Morse is merely a figurehead in a scheme planned by friends of certain of his dupes to obtain possession of the Bank of North America and settle its affairs to suit their pockets. As Morse was the principal stockholder in the bank It was necessary to obtain his cooperation, and as he knew more than any one else about the value of the assets and the tangle in which the affairs of the institution had been drawn it was agreed to permit him to figure as the head of the scheme. Borrowed $1,500,000. Of course, before anything could be done the depositors had to be paid in full. That required the use of about $1,500,000 of actual money. To obtain this application was made to the Assets Realization Company, of Chicago. That concern agreed to undertake the risk for a commission, it is said of $275,000 or approximately 20 per cent. Approved collateral was pledged, and as soon as the receiver issued his certificates of deposit the plan was put into operation. Many of the smaller depositors jumped at the opportunity to obtain their money in full at once instead of waiting for it to be paid in installments by the receiver as he realized on the assets. When a sufficient number was paid Morse's interests applied to the government for permission to place in the hands of the receiver a sufficient amount to pay off the remainder and take over from the receiver all the assets, books, etc., of the bank and complete the liquidation to suit themselves. Balked by Government. In view of the criminal indictment against Morse for violation of the federal banking law the possession of the books and certain assets of the bank in the shape of notes which Morse had discounted would have been of great importance to Morse. The gov. ernment, however, refused the application and decided that the liquidation of the Bank of North America as well as the New Amsterdam bank, another Morse institution, should be carried to a finish by its own receivers. Such was the condition of Morse's affairs when the United States grand jury handed down another indictment against him and Alfred H. Curtis, formerly manager of the National bank of North America, charging falsification of the bank's books. The alleged false entries concern seven, said to be ficticious loans, on the American Ice Securities company

11. October 22, 1908 The Evening World New York, NY
Article from The Evening World, October 22, 1908

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Curtis, there is promise of evidence when the case, now temporarily brok of a juror, is resumed before Judge H. In connection with the second great Ice pool that Morse formed-the pool that came to smash in the panic of a year ago, and crippled up Barney, now dead by his own hand, and Gates, Schwab, Heinze, Isaac Guggenheim, John F. Carroll and a lot of others-there is still a great deal to be told in the guise of evidence for the Government. Former Justice Morgan J. O'Brien will probably be asked to describe his experiences with Morse-and while he may tell a great deal, will tell no more than Richard Croker, John B. Sexton and Former Mayor Robert A. Van Wyck could tell, if they also should appear as witnesses for the prosecution. # Deal in Bank Stock. The bulk of yesterday's testimony had to do with the coup whereby Morse, operating through his stenographer, Miss Kate Wilson, and his pet brokers, Primrose & Braun, queitly accumulated 430 shares of the capital stock of his own bank-the National Bank of North America-and then had the debt transferred to the New Amsterdam by one of those feats of financial legerdemain/ of which he was the acknowledged master. The second chapter of this transaction and the more interesting, as tending to show the inner workings of the Morse system, is yet to come out. Evidence will be offered to show that the New Amsterdam Bank objected to being saddled with the loan. Miss Wilson, who drew probably $30 a week salary, was credited with a loan that would have staggered many a ripened financier to swing. In this emergency, it is claimed, Morse took into his confidence five of the officials of the National Bank of North America-W. W. Lee, one of the vice-presidents; E. B. Wire, the cashier; Adolph Rado, the assistant cashier; William Shotwell, the foreign exchange clerk, and Frank Pringle, the loan clerk. He told them, so it will be alleged, that a certain trust company was about to buy a large block of the bank's stock in order to secure clearing connections. # An Alluring Balt. He knew, he said, where there was a block of stock to be had at 300. If the five men would make their notes for amounts aggregating $129,411, he would see that this stock was distributed among them at 300. He would promise that they got 500 when the time came to sell to the trust company. Without exception the five men jumped at the chance. It will be the aim of the Government lawyers to prove that Morse was really the owner of this stock, that he sold to the men who trusted him at 300, whereas he had bought it as low as 261, and that no such deal as he described was contemplated by any trust company. There is documentary evidence now in hand to show that the unlucky five gave their notes and that the stock held in the New Amsterdam was transferred from Kate Wilson and allotted to them. Then the smash came, and now the receiver for the New Amsterdam has judgments against them for the amounts of their several notes. This may help to explain why some of Morse's former associates and employees have been willing to testify against him. # Van Wyck Got Away. Mayor Van Wyck was one of the big winners in Morse's first ice pool. He alone of all the men who figured in the first pool balked at the prospect of putting real cash into the second one. It will be shown later in the trial that Morse one afternoon in the spring of last year told Van Wyck he needed him for the big coup. "I will see you the day after to-morrow," Van Wyck is quoted as saying. (Continued on Second Page.)

12. June 8, 1912 New-York Tribune New York, NY
Article from New-York Tribune, June 8, 1912

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BLAME CLEARING HOUSE FOR CLOSING ORIENTAL Hugh Kelly's Letter to Stockholders Supplements Evidence of Ex-President Jones. CANNON ADMITS SOLVENCY Untermyer Shapes Congress Inquiry Toward Power of Five Bankers in Controlling Financial Situation. In an effort to show that the arbitrary rulings of the Clearing House committee, consisting of five members, were directly responsible for the failure of the Oriental and other banks during the panic in the fall of 1907, the Congress committee investigating the "money trust" turned the light on some intéresting inside facts of that tumultuous period at the resumption of the hearings at the Cus om House yesterday. Camuel Untermyer, counsel for the committee, shaped the inquiry in that respect toward the support of the main proposition which he has been trying to demonstrate since the investigation opened, that this small committee of five bankers at the Clearing House are the real dictators in the banking situation in New York. Richard W. Jones, jr., who was deposed as president of the Oriental Bank shortly before it closed in January. 1908. and other directors of the bank at that time told on the witness stand yesterday of secret conferences with members of the Clearing House committee, at which A. Burton Hepburn. president of the Clearing House Association. and other members of the committee had pledged the support of the Clearing House banks to the Oriental "till the last ditch." Shortly afterward. the witnesses testified, this same committee unexpectedly called for the payment of the Clearing House certificates held by the Oriental, causing a run on the bank and forcing it to close its doors, though the institution was entirely solvent at the time. Other banks which Mr. Untermyer contended suffered a similar fate at the hands of the Clearing House committee at that time were the New Amsterdam Bank, the National Bank of North America (both then controlled by Charles W. Morse) and the Mechanics and Traders' Bank. Counsel for the committee brought out the fact that all four of the banks paid their debts in full and that the stockholders received dividends during liquidation. Mr. Untermyer tried to refresh the memory of James G. Cannon, president of the Fourth National Bank and one of the present members of ti.e Clearing House committee, in regard to the circumstances surrounding the closing of the Oriental Bank by interrupting his testimony with that of Mr. Jones and other Oriental Bank witnesses. Mr. Cannon was not on the Clearing House committee at that time, he said, and could not give counsel the details which the latter seemed to think the witness should know

13. June 8, 1912 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, June 8, 1912

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SOLVENT BANKS FORCED TO CLOSE THROUGH -PRESSURE OF NEW YORK CLEARING HOUSE Investigation Intended to Show that the Function of the Clearing House Enables it to Control Destiny of New York Banks. Associated Press. New York, June 7-Testimony intended to show that the Oriental Bank of New York was forced to the wall by the New York clearing house committee during the aftermath of the panic in 1907, although it was solvent, was given today before the house committee investigating the money trust. Three other banks, the Bank of North America and the New Amsterdam Bank, in both of which Chas. W. Morse was interested, and the Mechanics and Traders, were similiarly compelled to close though solvent, was testified. The testinmony was elicited in an effort to demonstrate that the functions of the clearing house enables it to control the destiny of New York's financial institutions, and should be subject to regulation.

14. June 8, 1912 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, June 8, 1912

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SHERER RESUMES TESTIMONY Manager of Clearing House Tells of Panic of 1907. CERTIFICATES- - HOW CALLED Says Act Did Not Cause Failure of Morse Banks. JAMES G. CANNON ON STAND He Says He Refused Committee Access to Clearing House Records on Advice of Attorneys. NEW YORK, June 7.-Just before the Pujo committee of the house of representatives, which is investigating the socalled money trust, resumed its session today it was made known that the com mittee has been trying for the last few days to subpoena William Rockefeller. These efforts have not been successful, however. The committee seized at any reports that he was somewhere in Canada or the Adirondacks. Manager Sherer of the clearing house on the stand denied the assumption of Attorney Untermeyer that the clearing house association and the railroads both are instruments of interstate commerce. No one is obliged to join the clearing house." Mr. Sherer said, "but those who join have to live up to the rules." He also took exception to a statement that expulsion from the clearing house necessarily "spelled ruin." Panic and Receiver Certificates. Mr. Untermeyer then took up the subject of the clearing house loan certificatés issued during the panic of 1907. The witness testified that as a sequence of a demand made by the clearing house upon four banks for the payment of their certificates they closed their doors. These banks were the Bank of North America and the New Amsterdam bank. which were known as Charles W. Morse institutions, and the Oriental and Mechanics and Traders banks. 1 Mr. Sherer identified a letter sent by the clearing house committee to the banks in question on January 25, 1908, in which "it was the desire of the committee" to 0 redeem all clearing house certificates before February 6. This letter was with, drawn subsequently, Mr. Sherer testlfied. Subsequently all certificates were paid by the several banks. and with one exception the collateral deposited against the certificates was sufficient to cover l them. "Had the sending of these letters any. thing to do with the insolvency of the y banks asked Mr. Untermeyer No. it Cannon Refuses Information. n James G. Cannon. president of the 1. Fourth National bank and a member of S the Clearing House assoctation commito tec. the next witness, explained the re. fusal of his bank to furnish information to the committee as to its private af, fairs." was based solely upon the advice of the bank's counsel. The Fourth National, the witness admitted, had furnished such information to the examiners of the clearing house. y But you will not allow the congress e of the United States to have access to e le the sacred secrets which you furnish to a voluntary organization?" 11 Mr. Cannon reiterated that counsel had i advised against compliance with the committee's demands. He admitted that he I had discussed the question with other d New York bankers, including Frank A. 1Vanderlip, president of the National City bank. /

15. June 14, 1912 New-York Tribune New York, NY
Article from New-York Tribune, June 14, 1912

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# Fourteen Banks Loaned $25,500,000. Francis Lynde Stetson and Joseph H. Choate, both of personal counsel for J. P. Morgan, sat near the witness as he was testifying. Mr. Stetson promised to produce later a table made up at the Morgan office showing what each bank agreed to loan and did loan on October 24, 1907. The table was produced later. Fourteen banks, headed by the First National, agreed to loan $23,550,000, and actually loaned $18,945,000. Mr. Steele was excused after he had said that he did not know that the money loaned through the brokers was government money. Charles A. Hanna, chief examiner for the Clearing House, was called. The name of Charles W. Morse often figured in his testimony. The witness was the receiver for the Bank of North America and the New Amsterdam Bank, both formerly controlled by Morse and closed by calling in their Clearing House certificates, as other witnesses testified. Hanna said that he had examined the Bank of North America just prior to its closing and told the Clearing House committee that it was solvent. The witness said that Morse had asked him to give him the mailing list of depositors of the Bank of North America, in order that he (Morse) might pay them off in full. Hanna wrote the Deputy Controller of the Currency at Washington about the request, stating that he saw no objection to giving Morse the list, but the Deputy Controller refused to grant the request, according to letters introduced in evidence. The witness knew of no reason why the Controller should have refused the request of Morse at that time, who controlled 60 per cent of the stock of the bank.