The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-22
BIC TRUST
COMPANY
SUSPENDS
CONTINUED from First page.o

-
waiting outside the Office. but they
made a dash and forced their way past
the men on guard and into the office.
Police were then stationed at the doors.
There was anxiety among the bank
ers, brokers and business men gener-
ally who came down to their offices
early today to, prepare for whatever
further developments there might be
in the financial situation.
The feeling of relief and satisfaction
with which these men began the ran
saction of business yesterday was sue
'ceeded by considerable to-
day as a result of the developments
concerning the Knickerbocker Trust
Company. The news that the National
Bank of Commerce had given notice
that it would decline any longer to
act as clearing house agent for the
Knickerbocker Trust Company, and the
resignation of Charles T. Barney of the
presidency of the latter institution,
served to unsettle sentiment more than
the Morse-Heinze developments of last
week.
The magnitude of the business tran
Isacted by the Knickerbocker Trust
Company, with its deposits amounting
to more than $50, 900, 900, gave a much
more serious aspect to the changes
made in its management than did the
changes in the relatively smaller Morse
Heinze concerns.
Mr.. Barney's resignation was fol-
lowed by a series of conferences of
financial men at Sherry's which lasted
until nearly 2 o'clock this morning.
Among those present at the confer
ences were J. Pierpont Morgan and his
partners, George w. Perkins and
Charles Steel, Mr.. Morgan taking a
leading part in the discussion looking
to the improvement of the situation.
Three separate meetings were held,
one of the directors of the Knicker-
booker Trust Company, a second of the
Trust Companies Association, and a
third of bankers and financiers gener
ally, to consider what was best to be
done.
Shortly after the main office of the
Knickerbocker Trust Company at Fifth
avenue and Thirty-fourth street opened
for business deposftors began to arrive
in great numbers, and at 1920 more
than $50 people were in line at the pay
ing teller's window. Many depositors
came in carriages and the carriage line
extended for over a block from the
bank.
There was a steady stream of per-
sons to Withdraw deposits from the
down town office of the Knickerbocker
Trust Company, and despite the rapid
Iity with which claims were paid there
were more than IT'S persons waiting in
line at 1890 o'clock.
On the Bronx branch of the Knick-
erbocker Trust Company there was q
short run when 1t opened for business.
ut was promptly stopped by the arrival
of two wagons from which were I'M
loaded in view of the waiting depositors
big bundles of specie and currency.
AT the Harlem branch of the Knicker-
booker Trust Company there was a mod
erate-sized crowd waiting to take out
their money. Preparations had been made
for them, however, and two paying tellers
soon were busy counting out money.
w. F. Havemeyer. the newly-elected
president of the National Bank of North
A, erica. stated this morning: IT can
| say with assurance that Charles W.
Morse at present owes this bank nothing.
The banks holdings of Consolidated
Steamship, bonds are insignificant"
The clearing house committee went into
session shortly after 10 O'clock. 1t an
nounced the followinT debit balances of
banks today: Mercantile National Bank,
S454,0O0; National Bank of North America,
$54S, 600; National Bank of New Amster-
dam. $4,000; The Mechanics and Traders
National Bank, 1885 900; the National
Bank of Commerce, $7.0O0,0G0.
1t was officially announced that the
clearing house committee had rendered as
sistance today to the Mercantile National
Bank, the National Bank of North Amer
lea and the National Bank of New Amster-
dam. 1t was stated that the large debit
balance of the National Bank of Commerce
represented the clearances of the Knieker-
booker Trust Company.
/ The stock markets opening showed Sc
yerely the effect of the renewed shock TO
confidence caused by the spread of financial
distrust by the published details of the al
fairs of the Knickerbocker Trust Company.
Prices broke widely on the opening trans
actions under this outpouring Of stocks
but almost Immediately rallied.
After the severe setback at the openlfa
prices of stocks rallied, this being fol-
lowed by another break. The second break
in turn was succeeded by a good rally, the
decline having been arrested before the
previous low levels generally were btoken
through, With this demonstration OF
the effectiveness of support for the mar
ket a somewhat more tranquil feeling en-
sued.