Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-22
BIC TRUST COMPANY
SUSPENDS PAYMENT
KniCkerbocker Officials Have
a Lively Day.
"TIE-UP ONLY TEMPORARY"
Suspicious of the Bank Came as
Surprise.
POSSIBLY RESUME TOMORROW
Police Reserves Had to Fight the
Crowd and Drive It Out
to the Street.
"TIE-UP ONLY TEMPORARY"
POSSIBLY RESUME TOMORROW

The Knickerbocker Trust Com
pany, the second largest trust
company in New York city, with
deposits amounting to about $6o,-
100000, closed its doors at IL 30
O'Clock this afternoon, following
a steady run OF persons who
called to withdraw their deposits.
The company officials declared
that the suspension of payment
was only temporary. The closing
OF the doors of the institution was
attended with sensational scenes
at its main banking room and
the Harlem branch. Depositors
crowded the rooms clamoring for
their money. Police assistance
was necessary to preserve order.
AT the main Office, after the doors
were closed. the crowd surged its
way inward The police forced
1t back to the street again. and
from that time a guard was kept
IN front of the entrance. The
stock market was very weak. and
declined sharply in spite OF early
efforts made to support prices.
Secretary OF the Treasury Cortel
you announced from Washington
that he would support the New
York city national banks. and it
was understood that he would or
der the deposit of 100000 of
government funds in this CITY as
soon as satisfactory security for
the sum should be received.
Special Dispatch 10 The Star
NEW YORK, October GA run on the
knickerbocker Trust Compa,v at ,ts
main office. 5th avenue and 34th street,
and its branches. 1o5th street and Lenox
avenue. 2SOS Sd avenue, the Bronx. and
66 Broadway. began with the opening of
the company's doors at $50 O'clock
today.
At the end of the first hour of bus,-
ness the number of depositors at the
9Th avenue Office extended out to the
edge of the pavement on 5th avenue
and the crowd was steadily being aug
mented by persons on foot and In car
riages. From $50 to 200 persons were
waiting at the doors of the other
branches
Runs on All Banks.
President A. Foster Higgins of the
knIckerbocker Trust Company arrived AT
the main offices of the companys 34th
street and 9Th avenue at IL 80 this morn
ing. and said: while the situation is
serious. do not think II is critical. There
Is s1O.OO,GOO pledged to US from other
banks. and soon as We can get this
we will meet the run. We have from Sc
OOO,COo to $IOC0.OO. .00 besides and this is
being paid out as rapidly as possible. |
should think however that il would be
a physical impossibility to pay all this out
today"
Long before the doors of the Bronx
branch of the knickerbocker were OPEN
ed large crowd of small depostors
clamored to get in. John Bambey the
manager of the bank ordered the doors
opened at o'clock and announced that
all those who wanted to withdraw their
money could do so. The bank had not
been open an hour before $50 900 was paid
out
In an EFFORT 10 stay the run two of the
biggest depositors of this branch the
Borden's Condensed Milk Company and
the Central Union Gas Company sent a
lot OF specie TO be deposited.
Paid Out ss,ooo,ooo.
Immediately after he had given out his
statement Mr.. Higgins had a hurried
consultation with the officers in the main
hrar
for consultation with other financiers
At 12:i5 O'Clock the branch at 66 Broad
way suspended payment temporarily.
AT the Harlem branch a similar an
nouncement was made. The waiting de-
postors were told to come back at 9
O'Clock tomorrow. At the main office the
doors were closed about the same time
The three branches of the trust COM
pany had paid out sS.OOO.OOO during the
morning.
The suspension was declared to be tenn
porary until the company could realIze on
securities.
About 300 depositors were in the main
Office of the knlckerbocker Trust Com
pany awaiting their turn to withdraw
their deposits when Second Vice President
Joseph p Brown came out OF his Office
and announced TO the depositors that pay
ments on checks had been suspended tenn
porarily because OF the inability Of the
company to obtain currency fast enough to
meet the demand.
He said the company had been using au-
fomobiles in the effort to get the cash to
the bank. He could not say whether the
company would resume payments tomor-
row.
As Mr.. Brown was making this an
nouncement the paying teller was passing
out big pile of currency to a depositor,
but as he heard the announcement the
teller withdrew 1t quickly.
Rushed the Police.
At Mr. Browns announcement there
was rush OF depositors to the telephones
and acauaintances of the officers OF the
trust company appealed to them to be al
lowed to withdraw small amounts These
appeals were refused
An attempt was made to close the doors
against the depositors who were waiting
outside the office. but they made a dash
for the doors and forced their way past
the men on guard and into the Office.
Police were then stationed at the doors.
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