New-York tribune., 1907-10-26
PROVIDENCE CRISIS MET
after EUentful Day Banking Circles
Feel Confident.


porary receiver has been appointed for one trust
company. another company is enforcing the rule
requiring a notice OF ninety days for the with
draNyal OF deposits and third has withstood
throughout the day an unusual drain caused by
the withdrawal of deposits, II Is believed gener-
ally IN Providence banking circles tonight that
the crisis has been met and passed successfully.
The bank for which a receiver appointed
the Union Trust Company. an institution
with headquarters at Westminster and Dorrance
streets, In this city. and operating branches IN
Olneyvile. Central Falls and East Greenwich.
This IS the bank on which the run started yes
terday noon and continued until the close OF
business hours. Long before the hour OF open
ing to-day there was a long line OF depostors
waiting to withdraw their accounts and IT was
decided by the bank officials not 70 open the
institution. Notices were posted In tho head
quarters OF the bank In this city and in the
three branches at o'clock that the bank would
not open on account OF the stringency or the
money market.
The next step was the application for tenn
porary receiver. The petitioner was Archibald
@. Loomis one OF the vice-presidents or the in
stitutiOn. who in his petition alleged that the
company was insolvent Justice William II.
Sweetland OF the Superior Court appointed
Cornelius s. Sweetland. another vice-president
OF the company. temporary receiver.
ing rooms at Westminster and Eddy streets
put into operation to-day the rule requiring all
depositors TO give ninety days notice OF the
withdrawal OF deposits. The officers OF the bank
declined TO discuss the matter, referring all In
quiries to General Charles A. Wilson. the banks
counsel who stated that. In his opinion, the
company IN condition to stand a run
and that the ninety days rule had been In
yoked for the protection of the bank and its
depositors. According 10 the last report made
by the New England Trust Company to the
state auditor the resources OF the institution
were e642.SS4. against a capital stock of S14O.-
COO deposits OF s464 1855 and undivided profits
OF S27,754. William r. DunhaIn is president OF
the company and William A. Taylor It's vice.
president and secretary.
The chief interest OF the day centred how
ever. about the Industrial Trust Company, at
Westminster and Exchange streets one OF the
leading financial institutions IN New England.
operating nine branches throughout the state.
AT this bank run was IN progress throughout
the day. The bank officials. fearing that the
timidity OF the depOsitOrB might be affected ad-
versely by tho general financial situation were
prepared for the emergency and four paying
tellers were stationed at the windows ready TO
pay the depositors who wished to close their
accounts. The tellers worked rapidly, paid all
demands and at no time during the day did the
line or persons seem to grow faster than the
tellers were able to for it. The bank stood
the strain successfully and when business closed
at 3 o'clock there were no signs of excitement
or disorder on the part OF the depositors.
During the day committee of nine prominent
business men of the city in their desire 10 avert
a panic, made an examination OF the books and
securities and cash of the Industrial Trust Com
pany and Its branches. and reported that the in
stitution was I'm sound condition
When business closed at the Industrial Trust
Company this afternoon the report of the com
mittee OF nine read to the crowd after
which Arthur L. Kelley one OF the directors
addressed the depositors and told them that one
person VINO had withdrawn his money had again |
deposited IT, as he was satisfied that the bank |
was a sound basis. He extended an offer ON |
the part OF the bank to receive any other books
which depositors might care TO return on con-
dition that they also draw interest as ~ thew
had not been taken out. AS a result of this an |
nouncement several persons regained their con-
hdenoe and handed back their accounts Waldo
NJ Place, assistant treasurer of the Industrial |
Trust Company stated tonight that the bank
would be open for business as usual to- morroyc
morning
The cause for the extraordinary demands upon
the three trust companies is not absolutely
known. Out they are believed 10 be due In part to
the New York situation and partly TO the fact |
that Marsden j. Perry. first vice. president OF |
the Union Trust Company. was supposed to be /
closely connected with the Trust Company OF |
America the New York institution on which 1
such unusual demands have been made for the |
last few days.
In statement late to-day MIR. Perry said that |
the situation seemed very encouraging and that |
he confident that the bank would be re-
opened He said. however. that he could not |