New-York tribune., 1907-11-07
THORNE ON SITUATION
TetIs Of Unprecedented Ran on the
Trust Company of america.

oakieigh Thorne, president of the Trust Com
pany of America. told last night Of the rnprece-
oented run on his company and the long con-
ference Of bankers, and declared that no officer
or director had been asked to resign
I think the time has now come to take the
oeposltors the stockholders and the public into
our confidence" he said II have felt all along
that was a trustee primarily for the depositors
and next for the stockholders. and all of my ac-
tions from the moment that I entered into Off
cial relations with the Trust Company of Amer
lea have been guided by a desire to meet fairly
and honestly the duties Of this trusteeship
Months ago 1 was warned-as, indeed, we all
were-that there was danger of period of finan-
clal stress coming upon us. and we set about
putting our house in order. We promptly re-
duced our loans and increased our cash means
TO point where we had reserve largely in ex-
cess Of the legal requirement when the crisis
came; indeed, we had so much money on hand
that wise and conservative bankers advised me
TO put some OF our money and demand loans into
time loans.
Nhen the storm broke, to my utter amaze
ment. its chief force was directed against the
Trust Company Of America. It is idle now 10
discuss the reason why. The TACT remains that
public attention was riveted upon this institu-
lion by newspaper publications. and the run de-
Veioped into persistent and steadfast demand
Ihls run is unprecedented in the history of
banking. On a few days our receipts were in
excess of our payments but altogether we have
paid out since It began more than S34 600 600 &.
throughout the whole period of stress I have
courled the closest examination into our affairs
ana last saturday night at my instance. the
banking interests who had been so helpful in
the emergency appointed a committee Of ex-
perts to go through out assets. These experts
had no interest in the matter whatever. other
than to make fair and honest examination and
report to the gentlemen who had selected them
Ihey found. after working all Saturday night
and half the day on Sunday that we had
enough even at the present low market prices
to pay every dollar OF our deposits and to
leave our capital intact and a substantial sur
plus.
Il think in the end It will be profitable to the
Trust Company OF America that this fierce light
should have beat upon It and should have dis
closed the character Of its securities There
have been all sorts OF wild rumors afoat but It
is now definitely known that no officer or direc-
tor OF the bank has been improperly using its
funds for his own purposes; no officer or direc-
tor has had q loan here in excess OF the legal
limits. and the president Of the institution has
no loans whatever. Nor has any company with
which the president was associated had any
loans
''It is disclosed that. measured by any
standard Of good banking. at the commencement
Of this assets were clean. our reserve
adequate. and I unable 10 at any point
that the management in any way a fair
subject for criticism. To have paid out, IN
times like these. under such general stress. the
enormous amount that we have paid must be
proof conclusive to any banker of the prudence
that had been observed in the conduct OF the
business have no apologies to make; the fig
Ures speak for themselves.
1T mas been suggested that for some days
we were unnecessarily slow In the payment Of
depositors. In answer. it should be stated that
have found each day upon examination of
the checks presented that % or 80 per cent OF
them not good. People have drawn
number of checks against their balances and
put them in the hands Of the men in the line.
Many Of these men had each a large number
of checks in his possession. 1t obviously
necessary to examine each check, as presented,
to determine whether the balance had already
been drawn out, and this naturally greatly de-
layed our work There has not been day
which we have paid less than three hundred or
four hundred checks.
Il should be untrue 10 myself If l did not
make acknowledgment of the splendid help we
received at the hands Of fellow bankers
in New York. There has been a great deal OF
unnecessary misa pprehensiOn on the part Of the
public concerning this matter, No officer or
director has been asked to resign. and there has
been no absorption Of this company by any
other A number of gentlemen of very high
character and undoubted responsibility have
entered into agreement by which a majority
of our stock is to be deposited with them as
voting trustees. and they are 10 act as an ad-
yisory Committee in cooperation with our board
Of directors
P. R. R. DENIES PITTSBURG RUMoR.