The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-23

s. 81 8, 4. q, q. &. q % % % - 80 o 81 g @ g @
% New York. Oct. 22.-The failure g
e, of Mayer & Co. was announced on g
% the stock exchange at ESQ this g
% afternoon.
Z. The liabilities of Mayer & Co, 9
90 whose failure was announced on g
e, the stock exchange this afternoon, g
g are about S6,OOO 900. This is much g
. larger than has been expected, as =
@ il was thought the firm was doing g
g, a small business.
6 g g - . g, g g . 9 . @ o @ Q o @ @ .
New York. oct. 22-Credit. the under
the-surface foundation of all business,
trembled for a time today. and before con-
fidence had been restored New York S sec
ond largest financial institution had emp
tied it's cash vaults under the pressure of
the biggest run experienced here in gen.
Grafton; a stock exchange firm had failed
for six millions; Wall streets principal
securities had settled from 50 TO IS a
share; call money had risen 10 20 per cent
and local bankers. united to stem the tide
of dstrust, had been forced to appeal for
relief to the secretary of the treasury at
Washington. n
Mo Faith in Statements. y
All this was in the face Of reassuring
statements by the acting state superln-
tendent of banks that the suspected bank
was solvent, declarations by prominent
bankers that there was no true basis for
alarm, and assurances from Washington
that Secretary COrtelyou would not hest
tate to act pramptly in any SITUATION
where legitimate business was threatened
Now that the first scare Is over, and the
worst of the future discounted, II Is be
lieved that the local banking affairs Will
soon readjust themselves.
Secretary of the Treasury Cortelyou
reached New York from Washington at
2:30 O'clock He was met at Jersey city
by Hamilton Fish. assistant United States
I in nsaef
conversation during the ferry trip to New
York Upon reaching this city they went
at once to the Hotel Manhattan, where
several bankers were later presented to
the secretary.
Run on the Knickerbocker.
The Knickerbocker Trust company, the
storm center today, paid out cash to de-
positOrs at the rate of S44, 444 a minute for
three hours today. and then closed its
doors The directors had, as they thought,
fully prepared for a run, and caused to
be announced in today's papers that S.
eO0OdO in cash was on hand to meet all
eventualitles. At $3.50 a few depOsitOrs
withdrew their accounts and an hour AFT
erwards hundreds We're in line to take out
their deposits at the main office at 34th
street and Fifth avenue and at the Har-
lem and Bronx and downtown branches.
The S. co., coo lasted until 1880. when Vice
President J. 7. Brown announced that the
hank had no more cash available and pay
ments were suspended
Question of Raising Cash.
Mr.. Brown said that the bank would
omen tomorrow and payments be resumed
al 1880 o'clock. The Knickerbocker, it
was announced. had ample securities 20
meet all demands, was perfectly solvent.
and il was only question of raising the
cash. when all depositoIs who wished to
withdraw could do so.
j. p Morgan and his partners were in
conference at their Wall street offices un-
til afte,. O'Clock. Mr.. Morgan, when
asked as 20 the situation, said:
I'VE are doing everything we can, as
fast as we can. but nothing mas yet crys-
tallized."
He would give no intirnation as to the
plans under way TO alleviate the situation
George W. Perkins, Mr. MOrgan's part
ner. met a number of bankers and trust
company officials at the Union League
club tonight when the financial situation
was canvassed in an informal way.
There was a meeting of the Trust Com
panies' association after banking hours
today. at which committee consisting of
George J. Young of the Windsor Trust