e92fa128Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Full suspension, Books examined
Other: Committee of trust-company presidents took temporary control of stock; Tennessee Coal & Iron transaction arranged to free liquidity.
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pledged for other indebtedness to the institution." Fifteen bank examiners who were sent out this morning to various parts of the city reported at 11 o'clock that there had been nothing in the nature of a run on any financial institution except the Trust Company of America and that conditions at all other banks and trust companies were normal.
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New York Financial Troubles Are Believed to Have Vanished morrow's sun will dawn on a calmer scene. NEW YORK PANIC WALL STREET HAS IS NOW AT AN END. Several factors were instrumental in this turning of the tide, chief of Associated Press. which was the promptness with which ANOTHER BANK RUN; eminent financiers came to the resNew Orleans, October 24.2:30 a. m.-Advices from New cue of the tottering banks. Among STOCK MARKET WEAK York received since midnight inthese are J. P. Morgan, Edward Harriman, John D. Rockefeller, Thos. F. dicate that the financial stringency is at an end. All of the New Ryan and numerous others almost as Associated Presu. influential. York bank and trust companies New York, October 23.-The KnickThe influence of the treasury departare now supplied with ample funds and business will resume erbocker Trust Company did not open ment and the energy with which Secits normal conditions. its doors today and no statement was retary Cortelyou provided prompt assistance to the national banks had made as to when it expects to resume much to do with the revival of confibusiness, though its officers still mainAssociated Press. dence. tain that it is perfectly solvent. New York, October 23.-Confidence Secretary of the Treasury George B. The hopeful feeling thus engendered has been restored in high financial cirCortelyou deposited $10,000,000 in was intensified by the ability of the cles and bankers and financiers who New York national banks this mornTrust Company of America to stand have been working night and day for ing. an all night run. The officers of this the past several days to prevent a ANOTHER BANK RUN. institution refused to divulge the serious crisis in this city tonight went The only other feature of the day amount which they had paid out dur to their homes convinced that the was a run on the Trust Company of ing the day, but continued to pay deworst had been passed, and that to America. Several hundred depositors positors long after banking hours when the institution would have otherwere waiting for the bank to open PRESIDENT ROOSEVELT wise been closed. this morning and the run continued RESPONDING TO GREETINGS. until after noon. All demands were Call money rose as high as 90 per The photograph shows the Presimet promptly and it is believed that cent. during the day, but leading New dent acknowledging the cheers of the this institution will weather the storm York banks continued to make loans, thousands of people gathered on the without serious difficulty. some of them putting out millions as banks of the Mississippi River to greet STOCK MARKET WEAK. low as 6 per cent him during his recent passage down The stock market opened weak and ROCKEFELLER OPTIMISTIC. that stream. He is waving his hat to lower, but rallied during the day. In John D. Rockefeller, who has taken them from the deck of the steamer the afternoon there was another slump an active interest in the present finanMississippi. and the markets closed slightly lower. cial troubles, has arranged to loan large sums to a number of financial inNEVADA BANK HAS stitutions. Late tonight Mr. RockeCLOSED ITS DOORS feller said: "I do not believe that existing conAssociated Press. ditions warrant the present stringenReno, Nev., October 23.-The State cy. Instead of withdrawing my money, Bank and Trust Company, one of the I am co-operating with and helping largest banks in this city, closed its others to meet what I believe to be doors this morning and the state bank only a temporary crisis." examiner is in charge. The cause of MORGAN TO MAKE LOANS. the failure was the inability of the During the run on the Trust Combank to realize on securities accepted pany of America today wagon loads of as a basis for a $400,000 loan. The the securities of that company were bank is said to be solvent and depos carried to the office of J. Pierpont itors will not lose a dollar. Morgan, who delved into them with his own hands, approving or disapKILLED WITH SCANTLING proving as he thought best. It is said Daily News Special. that he will make heavy loans to McHenry, Miss., October 23.-News the institution tomorrow. reached here from Bond of the killing Before the doors of the Trust Comof a young man named Hitt. An the pany of America were closed tonight employ of the J. E. North Lumber the president of the company stepped Company. Frank Sweeney is accu into the lobby and announced to deThe killing was done with a piec. o positors that the bank would open scantling. promptly at 10 o'clock tomorrow morning and that all demands would be met promptly. BUZZARD FEAST
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(By United Press.) NEW YORK, Oct. 24.—It is conceded that J. Pierpont Morgan has won the most important financial battle in his career. Assisted by the secretary of the treasurer, Cortelyou, and John D. Rockefeller, he has restored confidence to such an extent that normal conditions will be in evidence before the end of the week unless unforeseen things happen. Superintendent of Banks Skinner estimates that $200,000,000 were withdrawn from local banks in the past week or two. The Trust Company of America had paid out over $5,000,000 when its doors were closed at the regular hour this afternoon and has taken in deposits of more than $1,000,000. The bankers say another day will see the end of the scare. Secretary Cortelyou said today: "Things look pretty good now. I have had word of the suspension of the two banks, but prefer to make no comment. I will remain here some time longer. The rumor that we are short of small bills is unfounded. We have $10,000,000 in small denominations."
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FINANCIAL CRISIS PASSED (Continued from Page one.) illman to the Secretary of the Treasuky at so late an hour was unexpected, much interest was aroused in the possible developments arising therefrom. George W. Perkins, Mr. Morgan's partner, said at midnight that he would probably make some sort of a statement at a later hour. President Oakleigh Thorne of the Trust Company of America announced at midnight that his company would oben for business at the usual hour tomorrow with ample funds to meet all claims. WORST IS NOW OVER; CONFIDENCE RESTORED. New York, Oct., 23-There was a sharp turn in financial affairs late today, renewed confidence in local banking institutions taking the place of the panicky feeling that has threatened solvent houses and demoralized the stock exchange for the past few days. Tonight those financiers whose deliéberate opinions are most highly esteemed by the public expressed the conviction that the worst was over and that out of the present chaos a condition more stable than has for some time existed was rapidly shaping itself. Many of the banking men who had labored almost day and night recently that the integrity of New York's financial Institutions might be maintained went home early this evening, satisfied that suspected houses which had been found worthy of support had been fortified against incipient runs or other contingencies. Serious minded men who have met the storm in sober mood left their offices, smiling and chatting and with a general bearing that spoke volumes to those who were accustomed to read the news of the streets In the faces of the big men. Several factors contributed to this change of feeling. First and foremost was the determination reached today by men of great influence in the financial world and whose probity is unquestioned to restore confidence, insure safety and prevent a papic. Conspicuous among these was J. P. Morgan and James Stillman, president of the National Bank. Throughout the day there were conferences at the offices of J. P. Morgan and Company. and while guarded statements only of what was done at these gatherings were given out during busi. ness hours, the fact that such men were conferring, linked with their known personal standing and financial resources did much to allay fear for the future. News of these conferences quickly ran through the financial district, allayed the fears of the extreme. 3y nervous and certainly aided the stock market where this influence brought about a recovery of prices toward the close of a day during which new low levels had been reached. Cortelyou Helps Situation. Next in point of influence was the presence at the sub-treasury of Secretary of the Treasury Cortelyou, who not only lent the moral Influence of a representative of the government but during the course of the day caused to be deposited with New York banks a large sum said to be $10,000,000. Mr.
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LATE FEATURES OF e THE STOCK MARKET Morgan's Loaning of $30,000, 000 on the Floor. CHECKS FALL IN STOCKS Heavy Break in Prices and Then a Sharp Rally. Things looked squally enough on the stock exchange yesterday, but all of J. a market braced up, had stepped in sudden P. Morgan the with for an offer to loan $30,000,000. It was up to Mr. Morgan's announcement one of the wildest times known on the New York Stock exchange. ever Call money had advanced to 100 per cent. and demoralization was reigning. The announcement from Mr. Morgan had an electrical effect. Stocks which had been tumbling the minute before 1 and 2 points :between sales rushed upward even faster than they had fallen. It was one of the most remarkable changes in tone that has ever on the exchange. Union which had in had gone to par, that an immense of Pacific, taken the sold report at place 110 1-2, early block the when day money would be thrown into the loan crowd caused it to rush upward at once to 106. Reading, which had broken from 79 1-2 to 70 1-2, rose to 76. Northern Pacific, which had early sold at 110 3-4, had tumbled to 100 3-4, but it rallied to 105 1-2. Almost equally astonishing recoveries were made by other prominent stocks. The money situation had dominated the market throughout the day and the understanding that relief was coming had instantaneous influence. The news reached the Street before the opening of business that three of the institutions involved in last week's troubles of the Mercantile bank had closed their doors, and that another concern in Pittsburg had suspended. This was followed by news that the run on the Trust company of America was still in progress, and that similar runs had started on one or two of the uptown trust companies. These an|nouncements successively made, together with the fact that call money was already held at the extraordinary figure of 50 per cent., threw the stock market into a state of semi-panic again. The extremely violent decline in prices, during the four first hours, was caused by the local deadlock over facilities for credit. A market cannot be advanced, and can be but indifferently supported, except when bankers and brokers are able to raise money on securities. It was the difficulty of doing this early yesterday from domestic sources, despite a bid of 100 per cent. Or higher on the stock exchange, and the virtual interruption of the channels of international exchange; which made the violent liquidation unavoidable. But precisely as occurred on July 26, 1893, the darkest day of the panic of that year, it soon became manifest yesterday that the fall in stocks was the means of breaking the obstacles in the way of relief through foreign capital. At a price, Europe will take the stocks and provide the sorely-needed credit; the question always is, to reach that price. Apparently, it was reached by the panicky break around 2 p. m.; the immediately subsequent offer, on the stock exchange, of an abundant supply of money, stopped the decline instanter, and turned an overwhelming collapse into a violent recovery What caused the terrific break in the afternoon, when Union Pacific crashed down to par and other railroad issues fell from 5 to 10 points, was the inability of brokerage houses to obtain money for their needs at any price. There was a very general feeling that the large deposits in the national banks ordered by Secretary Cortelyou and the various measures adopted by prominent financiers would result in material relief to the situation. Early in the day the First National bank loaned $3,000,000 at 50 per cent., and $800,000 additional was loaned by the National Copper bank at that figure. The National City bank later placed $2,500,000 on the floor of the Stock exchange to be loaned, as on Wednesday, in $50,000 lots at 6 per cent. Bankers and brokers having in charge the placing of loans for John D. Rockefeller were instructed to make all loans at per cent. A few isolated loans were reported at 100 per cent., but it was undoubtedly true that 150 or 200 per cent. would at time have gladly been paid; the could not any Under these price. money one simply circumstances be had at there was only one recourse. Commission houses which were holding securities for their customers on margin were obligedato sell them to cash buyers for whatever the latter would give. It was reported that the work of supplying support to the market in the quarters where it would be most effective had been turned over by the leading financial interests to the masterhand of James R. Keene. Mr. Keene was thought to be especially taking care of United States Steel common. In the early trading the bears put out
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MONEY FOR NEW YORK stocks they were holding for their New York, Oct. 2.5-As a result customers. of todays dvelopments in the finanThe effect of the relief measures cial world, there is every indication was instantaneous, and the rate for that the crisis in the banking trust call money dropped from 100 per company situation has been safely cent to 10 per cent. When the stock exchange closed every one was getpassed. The Trust Company of ting all the money they wanted. America, all through the day's bankThe aggregate amount of money ing hours, paid out money to dewhich had been contributed to positors as rapidly as possible, and weather the storm and restore confidence assumes really colossal proclosed the day with all demands met. portions in all considerably in exThe company received over its cess of $1,000,000. couners in the morning hours in orThis morning Clark Williams, the dinary deposits more than $1,000,newly appointed state supreintend000. ent of banks, made public the folThey day was marked by these lowing statement: noteworthy episodes: First, and "So far as I have been able to early in the day, came the announcelearn during the short time which I ment of trouble in three minor state have had to examine into the situabanks in Harlem, the Hamilton tion I feel that all of the banks under Bank, the Twelfth Ward Bank, the my supervision in this city are solCity Savings bank. These banks vent, and it will be only because of transacted only a neighborhood busirash and unreasonable demands on ness, and their suspension of paythe part of the depositors that will ment was absoutely without sig further endanger the situation.' nifleance as bearing on the general insituation. State Bank Examiner Judson declared this afternoon that all three were solvent, and that their depositors would lose nothing. The second episode was a run begun upon the Lincoln Trust company. At the close of the day the company's officials announced that they were fully able to meet all obligations. By far the most notable event and most dramatic episode of the day was the emptying of money into the stock exchange through a pool headed by J. P. Morgan and "other financiers, in order to avert a ruthless selling out of stocks. The effect of the money stringency was to run the rate for money up to 100 per cent, and when that figure was quoted an extremely sharp de cline resulted in the stock market. Union Pacific a 10 per cent stock, sold down to par. At the time the excitement was at its height the announcement was WU TING FANG. made that a pool had been formed The shrewd and clever Celestial dipwith J. P. Morgan at its head, to lomat who has been appointed Chinese come to the rescue of the brokers. for minister to the United States, a post it was necessary to provide funds at in which he previously served for six once in order that they might carry years,
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A Somewhat Cynical Defense. To THE EDITOR OF THE SUN-Sir: Yet us give the devil his due: he is not to blame for everything. "Business" in his letter in to-day's SUN expresses, I have small doubt, pretty generally the view held by many of your readers. But. really. is he entirely right? Mr. Roosevelt has been, let us admit, intemperate in reiteration, but is it not relteration. and that only, after all? It is quite true that continual dropping of water will wear away a stone, and repetition "soaks in"; nevertheless mere repetition by one sworn to enforce the law, of a determination to enforce it-though It be uttered with malice even and much noise-surely did not produce or even tend to produce the condition that has prevailed in New York during the last week. Are New York nerves so much more sensitive than those of the rest of the country? Do New Yorkers alone read the President's speeches and alone have intuition to feel their awful portent? The rest of the country seems to be weathering the raging storm that has followed the thundering of Theodore. With the exception of Pittsburg and an outpost here and there, this tyrant ridden land of ours seems to have paid but slight attention to the direful results likely to follow after a talkingbear-shooting trip of the Exalted One-other than to look on at the performance in New York and wonder. For months past all who read must know that such a thing as has happened has been foretold. And the strange thing is that It really did happen. In England and Canada we hear that money is "tight." Why? Is it. beause of incendiary speeches from the White House? Well, a run came upon the Knickerbocker. Why? A careful reading of the newspapers has failed to disclose the reason. Was it because of the President's speeches that the astute bankers of New York refused to come to the rescue of that institution? If so, and the President did really scare those estimable gentlemen, was it for the same reason that they did come to the rescue of the Trust Company of America? Surely not; surely an institution that boasts deposits of sixty orseventy millions and cannot stand almost any kind of an inflammatory speech is really not much of a concern after all. is it? Let us be bonest at least with ourselves. The Big Noise is really not so bad after all: some may be frightened for a time, but not always. The railroads have not stopped running and are really earning more than before "My Policies" began to claim the centre of the stage. T happen to be one of the "Innooent bondholders and shareholders" about whose welfare "Business" in so much concerned. On my own behalf, and in behalf also of my brother and sister innocents. I thank him for his interest: but really I fail to see where the wheels have stopped turning. As before said, let's be honest with ourselves. Where is the sane business man. woman or child who took seriously the President's remarks about the wisdom of preventing the accumulation of a fortune-if such a construction can be given that rather Ill considered utterance? Where is the sane man who did not deplore the President's oriticism of our judiciary? And where, ob, where is this "completed ... practical paralysis of the railways"? And he set himself up a man of straw. And be pasted him then for fair. True. the President probably talks too much. Re reminds me of a dear, voluble old lady I met this past summer who excused herself by saying. "I do so love to talk!" But the dear Peepul are not being fooled much. As a nation we love to talk and to hear others spout, particularly if they are a bit "higher up." Let us all cheer up a bit and be not afraid of the bogey man. The sun is rising on time rightalong. A.C. WASHINGTON, D. C., October 25.
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NEW YORK GEM MERCHANTS ARE RUBBING THEIR HANDS in placed Bank Scare Greatly Increases Sale of Diamonds. ONLY SAFE INVESTMENT Curious Sights That May Result. Tales of the Runs on the Big Counting Houses. Special Correspondence of The Star NEW YORK November 1. 1907 EW YORK gem merchants bing their hands They N thefts doings All the good folks of banks are buying diamonds merchants didn they break this way but it has and are glad. No panic at for are working Buy too. advertising good folk of gist tising Diamonds thing right n If so diamonds The It time the up five in hundred the have money you and look bank and w at happens: cannot one that then It seems, "done" in buy ing diamonds One to remember otherwise instances there is no gainsay the -loquence advertisement And the banks and trust companies and things did close their doors. didn't they? Soon. then, it is presumable that shall see the New York hod carrier wear ing at his wo k a large. vallerish diamond ring. concretely representing the bulk of his savings Bookmakers and their sheet th way by writers are to be made jealous by the hot in pollot. The truckman will flash an illuGood for the Crocks minated path for his horse at dusk by The means of the immense hunk of glistery bank carbon which he will wear rigged in the half day bosom of his hickory shirt. The humble at stand line in white wings will blind passing pedestrians while he stoops over his usefu broom their money and shovel, when the facetry of his gig the and picklamps gets the focus on the eyes of out of singling peripatetics The banana peddle ones and 'frisking them hold up his 'six-a-for much oftener than usual If only proudly, furtively. to exhibit to prospectiv are looking for a vast tomers the array of "ice" which, of plundering in New York homes tered around on his uncleaned digits the seems that, It despite will represent his savings The motorman to the out weed police be able to dispense with the headlight on lot lines of waiting crooks, sneak his car-the searchlight which ha will and porch climb and second wear screwed into his made-up two -bits on men cravat will serve as headlight first of bank and got places in the waiting And the Salesladies for king We'll have to wear goggles when we go get information They into a department store to buy of folks " ho were drawing down large sums of money and soap o something so blinding will be to by ar stated who app persons police glare from the savings representing know that these crooks from the other 'rocks'' bespangling the pompadoured have scores and hundre of these young Mins and Mames and Gerts addresses all nicely 'salted away in their memories or notebooks for uture hind the counters The garbage gentle They have the incal leulable man who toots his strangely advantage, therefore, of knowing where horn early in the morn through all the be and ought the New York will lift the secread leisure their can tive galvanized can with pair of bejow ans getting for eled hands like unto those of any hoarde d all ing Haroun-al-Raschid, and, in the see sight by agl world the Manhattan million dollars on his a-sh!mmer with Kimberleys, lit up with that in during Jaeger-Fontaines in desc nt with the on the Trust of nent ice at Back to first principles! is the cry of little Washington those who are afeard of the hateful, the sinister banks and bankers They're de- hand visitors a package "said dollars million termined to buy something with their inBut it struck has me always crement that they can keep Diamonds dublous bit that cannot can be kept-1 by some folks They about I've that and when be kept by a great many othersdoubts even "Cap fication of which consuit any captain the Treas looking person standing at a sign of the has wate ha invariably Doges. which means three gilde d balls of low. mockin laugh But they re portable property anyhow, But man actuam this now and the owner of 'em does the porting. ally had the million dollars in cash. He After all, it is a bit disquieting to stand for the and laid in the cold outside of a bank all night paying teller with the coolest and most and then, just when you laboriously work check, your way up to the paying-off window promptly out 100 000 bills and have the window slammed in your inutile "slipped" them to the equally cool man teeth check. The in handed man who'd saw that very thing happen during the money on him didn't bank runs one morning last week. The armedNor he was bodyguard any old very was that and he me later told about asked He had, he assured everybody, with many that he hadn't anything more deadly than he oaths withering whereon and strange nail file on his person at the time he must have exhausted a great deal of inmillion clerk was the a from He a drew genuity-he had taken his place in the big bank only a little distance away from line soon after midnight The paying-off the Trust Company of America, and performance was done very slowly- the bank folks were giving themselves plenty he didn't have far to go with all of that rackling" is the by way. of time. It took some two hours and a half after the bank's opening for the it that these big notes always do "crackle' so in that appealing sort of way? choleric old gentleman to reach the head of the line Then he pushed his bank Too Much Money. book and a check for $9,000. his pile, One of the humors of the drawing-dow through the window The paying teller looked the book and the check over, found flurry was the story of that messenger that they were good. and counted out boy who was sent by a bank to draw $9,000 in $100 bills He was in the very $6,500 from one of the tottering trust act of passing the $9,000 stack out to the companies. The messer ger boy, as you choleric old gentleman when the cashier may have read in the news reports, of the bank. walking into the cage. whispered something to the paying teller thought that all that money looked too "I'm sorry. said paying teller good to be turned into a soulless, already calmly putting the $9,000 back on the bloated bank So he bolted for It. carry from which he had taken it "but ing the thirteen (fateful number!) $500 directed to close this window now The doors are to close And the paying teller bills which had been given to him for the banged the little window shut, and there bank's check. The messenge boy story, the choleric old gentleman stood, gnash from lips, to it as the heard his ing his impotent teeth sadness and he in Such a Langwidge. for trying to $500 of ment to In the progress of some wondering hither and yon, I have heard much evil thing time of language- the ejaculations of wrathful $500 bills with sallormen. the cold, deadly profanity of of Arizona freighters, the ferocious blasph to to had take my of calloused miners, and such like his might But I declare that never, anywhere in the the world, did I ever hear anything in the wanted. He the way of embelli garnished, trimmed walk and lambrequined cursing that, either fo: while discrimination artistry, fury or invention the could in the least begin even to compare with the language which that choleric old shabby gentleman then and there employed. The sleeping grievous part of it was that the things that he proceeded to scorch tremulous air with during the ensuing fifteen minutes really seemed to help the waiting crowd of depositors a great deal They had felt good deal the same way, only they in knew not how to express themselv front the of such a fanciful and satisfying way before started what say, Howe De being led aside by this collection of one of the my riads of curious of last up lining week. was that among the other things and selling their which the afeard ones are now going buy that they can keep' is for keen It is going to be splendife time for as was paid for the real estate folk around here from now the teller's Those Long Island real estate only
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Still Doing Business. New York, Nov. 4.-The Trust Company of America and the Lincoln Trust company, on which there were heavy runs last week, opened for business at the usual hour this morning. This was followed by conferences Saturday and yesterday at the home of J. Pierpont Morgan concerning the general financial situation and the desirability of relieving the heavy strain caused by runs on these two trust companies during the past ten days. The opening of both institutions brought a distinct feeling of relief, as it was taken as indicating that the conferences held last night had exerted beneficial effects. During the conferences the board of directors of the two trust companies were in session, while a number of financiers were assembled at Morgan's home, both bodies being in touch with each other. A committee of experts appointed Saturday had gone over the affairs of the Trust Company of America and had pronounced it solvent. But thirty-five persons were in line when the trust company opened for business.
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OPEN FOR BUSINESS Two New Banks That Had Run Last Week-Conference With J. P. Morgan. New York, Nov. 4.-The Trust company of America and the Lincoln Trust company opened for business as usual at 10 o'clock to-day. This followed conferences Saturday and yesterday at the homeof J. P. Morgan concerning the general financial condition and the desirability of relieving the heavy strain caused by runs on these two trust companies during the past ten days. When the Trust company of America opened this morning 35 people were in line, a considerable diminution from the number on hand during the earlier days of the run. The opening of both institutions brought a distinct feeling of relief, as it was taken as indicating that the conferences held last night had exerted beneficial effects. During the conferences the boards of directors of the two trust companies were in session, while a number. of financiers were assembled at Mr Morgan's house, both bodies being in touch with each other. A committee of experts apjointed on Saturday had gone over the affairs of the Trust company of America and had pronounced it solvent. This, with the re-opening at the usual hour this morning produced a general feeling of relief.
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DESPOSITORS PAID BY THE TRUST COS. LINES WERE SMALL Will Banks Continue Cashing Checks During Week, It Is Said. NEW YORK, Nov. 4.-The Trust Company of America and the Lincoln Trust Company opened their doors promptly at 10 o'clock today and resumed paying off depositors. At the Lincoln Trust Company there were 150 persons in line and at the main office, in Wall street, of the Trust Company of America. there were only sixty, while at the Colonial Trust Company, a branch of the Trust Company of America, there were only thirty. The first man to be admitted at the main office was a bank messenger, who had sixty checks to be cashed. It was believed that it would take the bank most of the day to pay off this one man. Morgan J. O'Brien, counsel for the Trust Company of America, hurried into the bank early, after having been up all of yesterday and last night, but neither he or any other officers of the bank would make a statement. The same reticence was apparent at the Lincoln Trust Company, except that Director Louis Stern declared that the bank would continue paying off all demands throughout the week. In Harlem the condition of the banks had not changed since Saturday. The directors of the suspended Hamilton Bank met early to consider the plan to resume business. The directors have proposed to pay the depositors 10 per cent cash on demand and the balance in sixty and ninety days and six months and a year. Many of the depositors have opposed this plan and it is said to be not favored by the banking department.
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NO USE FOR AN EXTRA SESSION OF CONGRESS NEW YORK, November 5.-M the opinion of Congressman Charles N. Fowler, of New Jersey, chairman of the House Committee on Banking and Currency, it would be useless to call a special session of Congress to consider the present financial situation and consider remedial legislation. What the country needs now, he states, is a rest from useless alarms and a chance for the revival of faith and hope. The regular session of Congress will be soon enough to consider the financial situation. FAT PREMIUM ON GOLD. LONDON, November 4.-All the gold in the open market has been purchased by the United States at a discount rate of six per cent. THIRTY-TWO MILLION COMING. NEW YORK, November 4.-The gold importations for the local market amount to a total of $32,250,000. The Trust Company of America and the Lincoln Trust Company have suspended. BANK PAPER CIRCULATING FREELY. SAN FRANCISCO, November -The circulation of clearinghouse certificates is proving satisfactory. ANOTHER STREET CAR COLLISION. SAN FRANCISCO, November 4.-A car collision today killed one and injured a dozen persons.
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NO USE FOR AN EXTRA SESSION OF CONGRESS (Associated Press Cablegrams.) (Continued from Page One.) NEW YORK, November 5.-In the opinion of Congressman Charles N. Fowler, of New Jersey, chairman of the House Committee on Banking and Currency, it would be useless to call a special session of Congress to consider the present financial situation and consider remedial legislation. What the country needs now, he states, is a rest from useless alarms and a chance for the revival of faith and hope. The regular session of Congress will be soon enough to consider the financial situation. LONDON, November 4.-All the gold in the open market has been purchased by the United States at a discount rate of six per cent. NEW YORK, November 4.-The gold importations for the local market amount to a total of $32,250,000. The Trust Company of America and the Lincoln Trust Company have suspended SAN FRANCISCO, November 4-The circulation of clearinghouse certificates is proving satisfactory. in this city. The attempt was made to compel the tenants of the buildings damaged to pay the costs of repairs. SAN FRANCISCO, November 2.-The scores of the football games played today follow: Princeton 16, Carlisle Indians 0; Pennsylvania 15, Lafayette, 0; Harvard 6, Brown 5; Cornell 18; Western University of Pennsylvania 5. HONGKONG, November 3.-The Scandinavian mission at Nomher was stoned yesterday by a mob. SAN FRANCISCO, November 4.-Forty clerks were busy in the clearing house all day Sunday, preparing small clearing-house certificates in order that employers may be able to meet their payrolls today. NEW YORK, November 4.-Seventeen leading financiers were in conference with J. Pierpont Morgan, Sunday night, until a late hour, regarding the present situation. SAMARKAND, November 4.-A violent earthquake was experienced here, though litte damage was done. SAN FRANCISCO, November 4.-President David Starr Jordan, of Stanford University, will speak at the Central American Peace Conference, Washington, to be held November II and I2. LONDON, November 4.-Emperor William, accompanied by the Empress and by Chancellor von Buelow, will arrive November II, to remain a week in Great Britain. NEW YORK, November 4.-The Cunard steamship Mauretania will arrive on her maiden trip to New York November 16. SAN FRANCISCO, November 4.-The Japanese of San Francisco and other Pacific Coast points are celebrating the Emperor's birthday.
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OUTLOOK IS HOPEFUL Financial Situation Still Tense but Well Under Control. GENERAL ALARM SUBSIDING Considerable Falling Off in the Number of Depositors Demanding Their Money From the New York Trust Companies Affected by the Scare. New York, Nov. 5.-The Trust Company of America and the Lincoln Trust company opened for business as usual at 10 a. m. When the Trust Company of America opened thirty-five people were in line, a considerable diminution from the number on hand during the earlier days of the run. The opening of both institutions brought a distinct feeling of relief, as It was taken as indicating that recent conferences had exerted beneficial effects. The general financial situation was still tense, but the down town banks and trust companies felt confident that conditions were well under control. The raising of the Bank of England discount rate to 6 per cent at a special meeting of the board of governors was not unexpected by those familiar with conditions in Europe, although it was hoped in some quarters that this action of the governors would not be taken until the regular meeting on Thursday. The fact that $2,000,000 in gold was purchased in the open market in London during the morning for export to America probably hastened the action of the bank.
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MILLIONS OF GOLD ARRIVE Gives Relief to Financial Stress. CORTELYOU IN NEW YORK Holds Conference With Morgan and Other Financiers. Those Bankers Who Saw Cortelyou, Are Now Convinced That There will Be No Extra Session of Congress. New York, Nov., 5- The arrival of the first treasure ship laden with gold for the relief of the present stringency was the feature of the financial situa. tion today The Kronprinzessen Cecilie was reported off Fire Island at o'clock in the morning and soon after 10 o'clock, sailed up to her dock and unloaded $7,100,000 of the yellow metal which will go to strengthen New York bank reserves. The Cunard Liner Lusitania will follow closely in her wake with $10,000,000 and $14,000,000 more will follow during the remainder of the week and early next week. The additional withdrawal of 75,000 pounds sterling for the United States and 25,000 pounds sterling for Canada, brings up the total gold engagements on the present movement to about $36,600,000. The news that the Bank of France had shipped 3.000.000 pounds in sterling bills to London was received here as an event of importance as indicating that French financiers were not only able but willing to help London and the United States indirectly by relieving the strain on the Bank of England, caused by the heavy American demands for gold. It is hoped that this action of the Bank of France will deter the Bank of England from raising its discount rate to seven per cent, at the meeting of the directors Thursday and the Im perial Bank of Germany from raising to its rate from six and one-half seven and one-half per cent The inference is drawn that it is likely to have this effect, because not since 1873 has the Bank of England's rate been above six per cent and only for twelve days in each of the years 1899 and 1900, has the German rate been above six per cent since 1870 Morgan and Cortelyou The presence of Secretary Cortelyou in the city on his way home to vote, gave an opportunity for further con ferences with Mr Morgan and other leading bankers. The came over from Washington with President Roosevelt vote, his way back from his home at Hempstead decided stop off and learn of the financial situation Beside Mr Morgan, Secretary Cortelyou saw George W Perkins and one or two other bankers, who acwith the him quainted of progress events. He was told that the situation in New York was rapidly improving because of the development in the last twenty-four hours. Those bankers who saw Secreta Cortelvou today, are convinced that there is no intention on the part of the President to call an ex tra session of Congress pass remedial legislation, as it is the Administration feels that the situation should settle down to basis where proper judgment can be formed on the various proposed changes in the pres. ent monetary laws. It was further understood that the administration has not yet definitely shaped the plans of a financial legislation, which it may desire to have considered at the coming session of Congress. Measures Considered Measures for strengthening the trust companies, upon which runs have been going on were under further consid. eration today. but so far it has not assistance sufficient how been clear could be rendered by other institutions and bankers without taking over assets which they do not consider absolutely "gilt edged.' The project for the acquisition of the Tennessee Coal and Iron Company by the United States Steel Corporation has improved the situation somewhat by making loans on the trust companies securities more acceptable at the banks. The situation is still far from solved, however, and its difficulties are increased by the lack of well known and responsible organization on the part of the trust companies capable of entering into definite relations with the Clearing House banks. conference) at which the details for taking over of the control of the Tennessee Coal and Iron Company by the United States Steel Corporation were discussed, was held at Mr Mor. gan's library today and attended by Mr Morgan, George W Perkins, Secre. tary Trimble of the United States Steel Corporation Vice President Davison. of the First National Bank, and Grant B. Schley, one of the of the pool which held control of the Ten. nessee stock Menace Is Removed No statement was made follow the conferences. The taking over of the stock of the Tennessee Company held as by the Trust Company of America collateral for large loan, removes a menace to the Trust Company of Amer ica's affairs and regarded by bankers generally safeguard against further financial troubles The directors of the Trust Company of America were in session for some time discussing deal. the for plans recent monthe in corner That the was turned has difficulties etary conference when today Geo. Morton, Morgan several oth Perkins, together attention financial men, known well the situation chiefly directed hroughout financial other the strain disclosed had any weeks the week spots. With the clear feel that bankers they the position to such aid should either point it Perkins Mr. said confer of series after held today the library of J. P. Mor gan: shaping spent most the sitof today This uation ap else, situation. but Reduced the much reduced cash which nomi lly for deposit in the banks, but still holds about $130,000,000 of disbursing
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The Latter Condition Financiers Think Will Take Place Soon The Trust Company Situation In New York Cleared Up By An Arrangement for a Supervision of Those More or Less Reckless Institutions. New York, Nov. 6. The general fi- $500,000 for Montreal. This brings the total gold engagements for America nancial situation is favorable today. to $37,500,000 which would afford the Runs on the trust companies practicalamount required for a legal reserve ly ceased under the encouraging supagainst $150,000,000. There is still some port of the trsut company committee. apprehension regarding the possible efGold engagements were further infect of the Bank of England's effort creased and the stock market rose to check the outflow of gold from Lonbuoyantly in recognition of these condon by raising the discount rate on ditions. The announcement that an Thursday. agreement at last had been reached by It is understood that the arrangewhich the Trust Company of America ment by which the committee of trust and the Lincoln Trust Company were company presidents takes control of to deposit their stock in the hands of the majority of stock of the Trust the committee of trust company presCompany of America and the Lincoln idents and were to receive all the supTrust Company is only a temporary deport required finally cleared the air in vice to reestablish confidence. What regard to the trust company situation. will be the ultimate disposition of the Now that the danger is removed it is stock has not been seriously considered believed that the situation will gradbut it is certain that the trust comually simmer down with the continuous panies committee and the clearingarrival of gold until the stringency is house committee will insist that these converted into a plethora of reserve companies pursue in the future a polmoney in the banks which usually folicy of the strictest conservatism and lows a crisis. Additional gold engagethat they shall not embark in any unments were announced today of $1,000.derwriting which is not capable of be000 account of Lazard Freres and ing converted readily into cash.
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News of the Day. The Aroold Print Works. Nort Adams, Mass., employing 6,000 people is in a receiver's hands. Gray Gables, the former home . Grover Cleveland at Bozzard's Bay, ha been sold to George D. Flynn, a brewer The Bank of England bought gol heavily in the open market today, security ing over $5,000,000 in United State coin. The trust companies of New Yor have taken charge of the Trust Compan of America and the Lincoln Trust Com pany. The democrats have elected enoug members of the Maryland Senate an House of Delegates to pass another con stitutional amendment. Another consignment of $2,000,000 in gold bullion and coin arrived at Ne York from Europe today to help relies the financial depression here. A plan is on foot to place Grove Cleveland at the head of a depositor committee to aid in the rehabilitation o the Knickerbocker Trust Company. A Union Traction car on the Indian appolis and Munsie division jumped th track five miles northeast of Indisdapoli city this afternoon, seriously injurin twenty people, two of whom will die. By the explosion last night of a donke engine boiler at the La Belle Iron Work at Steubenville, Ohio, five men wer killed, three perhaps fatally cjured, an a portion of the open-hearth plant d recily opposite the explosion w: wrecked. The vote on the liquor question in th four districts of Delaware shows the there was a majority in the State as whole for license of from 2,000 to 2,20 but the actual result is that license pro vails in two districts and probibition i the other two. "In God We Trust" is omitted on th latest $10 gold piece just received by the Treasury Department from the Pail delphia mint, and it is more than prof able that the Christian organizations the country will set on foot an inquir to find out the reason for the change A recount of the vote for Lieu 181 Gevernor of Rhoda Island was demand today by Charles Sission the democrat nominee who on the face of the first r turns has been defeated by Ralph ( Waltrous by 191. His friends insi that the final count will show is electic by over 200. Martia Maloney, papal marquis an millionaire gas magnate, returned Philadelphia with his daughter yesterda evening, following his lder daugh and son-in-law, Mrs. Carberry Rich and her husband; young Osborne, an Wm. J. Fanning, Mr. Maloney's pr vate counsel, who came on earlier train As was stated in the Gazette, th boilers of the German school ship Bluch er exploded yesterday morning, whil the vessel was near Murwick, billing te men and dangerously wounding thirt others. Several of the wounded men ar not expected to recover. Three hundre of the crew were absent maneuverin with the tenders at the time of the ex plosion. The Blucher is the Germa torpedo school ship and usually has O board about 360 officers and men. John W. Gates is back in the financial game and his advent into Wall stre is regarded by many operators is certai to favorably affect the market, Mr. Gate the plunger, assisting in creating a bu market is certain to make himself fel When he went to Europe three month ago he announced he had retired for good When he returned a day or two ago I find the market in the persent chatoi condition he could not resist the temp tation to get back into the jime. The superb England's seventh Drea naught type of warships was launche today from the Elswick yard on th Tyne. Tbe ship hrs many improve ments over her prototype, all jealous guarded secrets of the admirality. Th vessel is 520 feet long, 82 feet bean draws 29 feet, displaces 18,600 ton carries ten 12-inches guns and man 4-inch quick firers, has armor varyin from 2 3-4 to 11 inches thick, is engine with turbines and will make 21 knot She will be ready for the battle line ne: year. Clarence Cooper, a negro, wasarreste in Washington yesterday for attemptir to propose marriage to a white woms he had never seen before. The inciden occurred on a street car. Cooper boarde the car while he was apparently in 8 intoxicated 'condition. Before anyot was aware of his intention, it is allege
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LATEST NEWS BY TELEGRAPH Domestic Backed by a mass of letters and photographs found in his room, the Philadelphia police assert that Harry Ferree, shot dead by A. Jackson Detsch, Jr., was a blackmailer of women. That he attempted to blackmail Mrs. Detsch is advanced as the theory of Detsch's motive for shooting the man. Detsch clings to the ruse that he shot Ferree believIng him to be a burglar. Henry E. Warner, receiver for the Arnold Print Works. of North Adams, Mass., has been appointed receiver for the Williamstown Manufacturing Company and the firm of Gallup & Houghton, which were affiliated with the print works. Jesus Garcia, a locomotive engineer. gave his life to save the town of Nacazari, Ariz., by putting full speed on a train of explosives afire, the train blowing up before it had gone far. The United States Court of Appeals affirmed judgment against the Chicago, Burlington and Quincy Railroad, compelling it to pay a fine of $15,000 for granting rebates on lard. The Old Dominion Line steamer Jeffersón. with nearly 100 passengers, arrived in New York with fire in the cotton in her cargo. D. C. Gilman has resigned as president of the National Civil Service Reform League. His successor is Joseph Choate. The Cunarder Lusitania encountered a gale at sea that swept her decks. Judge Olin Wellborn, in the United States District Court in Los Angeles, Cal., fined the Santa Fe Railway Company $300,000 for rebating. James F. Jones, a mining engineer, died in Philadelphia, the result of overexertion, after his usual exercise with 35-pound dumb bells. Two coal harges, the Onondaga and Black Diamond, both heavily laden with coal, were sunk off Stony Point light, in Lake Ontario. Alfred G. Vanderbilt has given $100,000 for the construction of a Young Men's Christian Association building in Newport, R. I. Sir Anthony McDonnell, under secretary of state for Ireland, was presented to President Roosevelt by the British Ambassador. Harry C. Washabaugh, bigamist, hanged himself in his cell in the county jail at Washington, Pa. Secretary Taft has finally decided to return by the way of Vladivostok, through Siberia and Europe. The directors of the American Cotton Oil Company passed the dividend on the conimon stock. Ex-Judge Henry Hand has declined the offer of the attorney generalship of Porto Rico. A fire caused a panic among the inmates of the Kane County, III., almshouse. The consignment of $7,100,000 in gold coin and bars which arrived on the steamer Kronprinzessin Cecillie was transferred from the ship's safe to the Subtreasury in New York. The equivalent in currency of nearly the entire consignment is being advanced to bankers. The Arnold Print Works, North Adams, Mass., employing 6,000 hands, is in a receiver's hands. Receivers have been named for the New York State Steel Company. Raymond Hitchcock, the actor. who has been missing a week, surrendered to District Attorney Jerome, gave bail and reappeared in "The Yankee Tourist." The trust companies of New York have taken charge of the Trust Company of America and the Lincoln Trust Company. Gray Gables, the former home of Grover Cleveland at Buzzards Bay, has been sold to George D. Flynn, a brewer. The Arctic whaling fleet previously reported caught in the ice is homeward bound with a large catch. Two Chicago laborers were electrocuted by the cable of a derrick becoming charged with electricity.
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pleted to the last degree of safety so that money might be deposited in banks to relieve this strain. Certificates of indebtedness and bonds were hurriedly put out to provide more funds. There was not a public spirited citizen in the United States who did not desire the government to go to the limit of its authority to put a stop to the panic. The big men of Wall-st. did their part, and bankers and financiers in New York, Chicago, Philadelphia, San Francisco, and every other financial center were in hourly consultation, day and night, to do what they could to stem the tide. # Funds Tied Up in Securities. Just when things were at their worst and when it seemed that two or three more big failures would put an end to all hope of restoring normal conditions it was discovered that a group of bankers and financiers represented by the Trust Company of America, had tied up a large share of their funds in the securities of the Tennessee Coal & Iron company, representing a majority interest in that concern. The transaction was an entirely legitimate one under normal conditions. The trouble was that depositors could not be paid in steel stock. They had to have money. This group of banks, in no way connected with the United States Steel company, had advanced money on these securities, and, of course, could not get their money back. Unless a purchaser could be found for the Tennessee steel stock these banks would become insolvent. There was just one concern in the United States which had the cash on hand to make that line of business, so that the transaction would be a natural one. That was the United States Steel corporation. The big men of Wall-st. figured out that if the big steel trust could be induced to purchase the securities of the little steel trust it would release enough money to save these banks from failure, would protect their depositors, and would, above all, prevent a new catastrophe, the dire results of which no man cared to contemplate. As a matter of course the steel trust officials were averse to the transaction. Like most prudent business men they believed every cent of available cash capital should be held as such. There was not then in the country, probably, any big corporation which would of its own motion have selected that time in which to have put out millions of its cash resources for the purpose of wiping out a rival. # Frick Sees President. The emergency, however, was a great one and the steel magnates finally agreed that they would come to the rescue of the street and buy the Tennessee securities for cash for the sole purpose of protecting the banks, provided only there was no danger of prosecution for a violation of the federal anti-trust law. They were willing to risk their money but they would not take chances on imprisonment, and they frankly said so to friendly bankers who were imploring them to save the country from an additional financial crash. It was in this emergency that E. H. Gary and H. C. Frick, representing the steel trust, called at the White House on Nov. 4, 1907. They told President Roosevelt, the facts, which were that they did not want to make the purchase either at that or any other time, but that there were certain banks which would surely fail unless the transaction were put through. They came to ask the president to secure for them an immediate opinion as to whether their action would be a violation of law. If that opinion were adverse they would drop the matter at once, and if it were favorable they would open their vault doors and pour their millions into the street to stop the panic. President Roosevelt acted with his characteristic promptness. He called up the attorney general and secured from him, by word of mouth, an opinion to the effect that there was no apparent reason, under the law, why the United States Steel corporation could not acquire the securities of the Tennessee Coal & Iron company. # Gold Watch for Theisen. Ald. Theisen is wearing a fine gold watch presented to him by the Eleventh Ward Republican club and a chain and fob presented by other friends. A chain and fob were also Asented
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by Perkins. pained that on the night of the Perkins and Mr. Davidson of tean & Co. called at the Trust of America to look into its examined They It thoroughly and anwere pleased to find good as they were. Mr. Thorne condithe of the 10 $ 22, had told 1907. "By run on o'clock," the bank he seven paying windows were doing our best to get rid That day we paid out $13,call for help?' in that had to get cash to the 7 day, Mr. Thorne save Mr. went to Mr. Morgan's anMorgan, Mr. office and Mr. Davidson. Perkins. I Mr. have money. So far told them M aleg to committee had as not I know made Mr. Morgan." then dollars. Mr. by J. said, bank Mr. ed alned National bank. him P. Thorne Morgan and Thorne the & that Na- Co., $1,500,000 that said Hanover National afternoon which situation until closing bank. hours.
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un on Bank. othe was examined relating to statement given to the press 23. 1907. and attributed to ins, in which it was declared chief sore point of the panic Trust Company of America. elared that immediately folthis 8 run on his bank occurred the run in one day took out Me. he admitted he had consulted to the advisability of suing the persons he felt responsible, be Wis deterred by the necessity 8 more money from the bankers let In order to prevent collapse illution. 4 financial troubles were in any ed In the difficulties of Moore at that time he denied Lore said that before the panic ble company had assets of $74.As far as Tennessee Coal & * was involved In collateral on his bank. It was nominal, to something over $400,000. the said that prior to the panic Nrd no criticism of the kind of the Trust Company of America
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because of the friendship of the Assoclated Press management for Roosevelt. The two men got so on the Colonel's nerves that when they happened to overtake him in an Arizona town. he dropped his argument and started to abuse the two men. Mr. Bede's address at Joplin, Mo., is worthy of notice and we print a portion of it. "The fight in this state is between Taft and Wilson. with the chances about even, but if my old friend Champ Clark had been chosen as democratic leader the republicans would look elsewhere for electors. "I believe in two strong parties -one in power and the other almost in one running the government and the other watching it. Perhaps my best reason for voting the republican ticket is that it has always seemed to me the democrats make the best watchers. "I wouldn't destroy the democratic party if I had the power but it seems almost certain that Mr. Wilson if elected will smash it into smithereens. He has not come up through the grades, does not know public men at their real value, would be misled into throwing those who have helped him and would assume an attitude of superiority to leaders of congress. "Today all is happiness. Every toiler has a meal ticket and every baby has a milk bottle. The cricket is on the hearth. The joy fires are burning throughout the land. Why disturb the domestic circle with bull moose bellowing. or free trade failures. "Just why God permits disease to afflict the earth. on one knows. and so we must patiently bear with rheumatism. socialism. Rooseveltism and other distre of the day. "When one looks up a bull moose booster he usually finds a political boodler. a Wall street gambler. a railroad rebater. a parlor socialist, a pie counter patriot, a disappointed office seeker, or an all around has been. Look over the bunch, brand them for yourself and then vote for the men who demand only what is right and stand for all that is best and most helpful in the life and aspirations of our people. "One of the most humiliating spectacles of our national administration relates to the absorption by the Steel corporation of its only powerful competitor. the Tennessee Coal and Iron company, in violation of law, with the consent of the man whose duty it was to enforce the law. Theodore Roosevelt. The steps leading to this open violation of law by the president. bear every mark of a conspiracy. Here are the marks: The T. C. I. company was in a fair way in the tall of 1907 of taking away from the Steel corporation its most profitable business. that of supplying steel rails to the railroads. The directors of the Steel trust were deeply concerned. They attempted to buy the T. C. I. company. The owners would not sell. A trust company in New York failed on the twenty-second of October. The president of the trust company of America was a large stockholder in the T. C.I. company. George W. Perkins of the Steel corporation conceived H plot to break the trust company of America and in that way force the property of the T. C. I. company into the hands of the Steel corporation, of which he was a,director. At 7 o'clock in the evening of October 22, 1907. George W. Perkins gave out a statement at the Manhattan notel. New York. that all the financial institutions were sound and in good condition with the exception of the Trust Company of America The result of this interview was a run on the Trust Company of America that closed its doors and resulted as Perkins had planned. In negotiations for the transfer of the T. C. 1. company to its rival and competitor. the Steel corporation. Roosevelt was making a whirlwind tour through the country flaying the malefactors of great wealth, the predatory rich. and crooks in big business. On Sunday evening. November 3. E.