Evening star., 1907-10-24
FIGHT FOR SOLvENCY
Strenuous Day in New York
Financial World.
MORGAN TAKES COMMAND
Veteran Banker Marshals the Money
Forces.
C0RTELYOU ALSO ON THE JOB
Trust Companies Form a Sort Of
Separate Clearing House
Organization.
MORGAN TAKES COMMAND
C0RTELYOU ALSO ON THE JOB

| 'iioiieJ III ndttOnaI banks yesterday ana
group Of bankers. headed by ]. P. Morgan
stood behind the Trust Company of Amer
lea, while that institution stoutly with
stood the strongest run that any bankinf
house In this city has encountered since
the run on the Union Trust Company ant
two national banks in 1884. Bankers were
IN conference with the Secretary constant
1 ty throughout the day, and there was 8
series Of conferences at the offices Of J
P. Morgan & CO., participated in by mos,
of the prominent financiers of this city
6oth Secretary Cortelyou and the Morgan
banking syndicate amply fulfilled the
| agreements made after the late bank con.
ferences the night before.
Rockefeller Will Help.
John D. Rockefeller has taken an active
interest in the present financial situation
and he has arranged to loan very large
sums to number of New York financial
institutions
Il think" said Mr.. Rockefeller. "tha,
the existing alarm among investors is not
warranted. and hope the good common
sense Of our American people win control
the situation.
Personally have absolute faith in the
future Of the values Of our securities and
the soundness Of underlying conditions
Instead Of Withdrawing any Of my
moneys from the banks. am cooperating
with others In helping to meet that which
l firmly believe to be only a temporary
crisis. Every one having the good Of his
country at heart should, by word and
oeed, lend hand now to re-establish con.
fidence. and I propose to do my part to
the rull extent of my resources"
Money Goes Soaring.
The most disagreeable DEVELOPMENT of
the day was the condition of the money
market on the stock exchange. There
was no tfme-money market whatever,
either for loans secured by stock ex-
change collateral or for loans on COM
nfercial paper For call loans there was
practically no market in the last hour Of
the stock exchange trading. The last
loan OF the day was made at the ex-
traordinariiy high rate Of 1875 per cent
and, according to the most conservative
estimates. the market closed with an
urgent and unsatisf1ed demand for loans
|agsregating $5,OOO.OOO. According to
stock exchange usages brokers had
drawn checks on banks In payment for
stocks. and unless the banks carry the
oVerdrafts or place, money in the loan
market today as many as fifty of them
1t is estimated. will find themselves in
most troublesome situation.
Cortelyou Gives Help.
Secretary Cortelyou remained in the
subtreasury from long before the opening
Of the banks until long after the close
He had no conferences throughout the
day. but kept in close touch with the sit
uation through bankers who called upon
him and otherwise gave assistance to the
amount. 1t was estimated. of about
81, 100000. This money was placed in ma
tional banks for one specific purpose. and
the banks held 1t in support of the Trust
Company OF America or turned it over
to that institution.
The Secretary did not concern himself
with the stock market operations. the
scarcity Of money on stock exchange
loans or the conditions Of the general
money market Apparently his work was
directed effectively toward assisting in
every proper way legitimate business in
terests." to quote the language Of his
statement the night before
Trust Companies Organize.
The most important conference Of the
day In Mr.. Morgan's Office was held i'm
mediately after the close Of banking hours.
There were present a large number of the
most prominent bankers Of the city. The
conferees remained together until after 6
O'Clock and formulated steps among other
things for the organization of a clearing
house for trust companies The result was
consummation Of a plan on which def
mite steps were first taken on the night Of
the crisis in the affairs Of the Knicker-
booker Trust Company. The work Of the
conference was presented in the follow
ing statement:
"A meeting Of the presidents of trust
companies was held today in the office of
Messrs. J. P. Morgan & Co. John A.
Stewart chairman of the United States
Trust Company. was in the chair
After discussing the situation 1t was
decided that committee of five should
be appointed. similar In its character to
the clearing house committee Of the banks,
to whom application for assistance from
trust companies may be referred and that
for information from the various trust
companies and to report to meetings of
the presidents to be held from time to
time. or at a fixed time which might here
after be agreed upon, the result O. any in
veshgation. accompanied by advice as to
what had better be done in the matter.
1.-The following committee was then ap-
pointed by Mr.. Stewart: Edward King,
president Of the Union Trust Company;
Edwin s. Marston. president of the Farm
ers' Loan and Trust Company: ]. N. wal
lace. president of the Central Trust Com
'pany: J. w. Castles. president Of the
Guaranty Trust Company; John I. Wa
terbury. president of the Manhattan
Company II UeluE uu0eTSLOOQ tlat
Mr. John A. Stewart and Mr.. ]. Pierpont
Morgan will actively cooperate with the
committee"
The formation Of this committee was
the result Of Mr.. Morgan's efforts to re-
lieve the existing financial situation. The
committees powers will be largely pro-
tective and supervisory It's personnel Is
guarantee Of ultraconservatism, includ-
ing as 1t does the few "oId line compa-
MES which have steadfastly opposed the
methods of the trust companies of later
growth.
A Significant Move.
The trust company committee. 1t Is pre-
sumed, will cooperate with the clearing
house committee. and on the formal per-
lection Of the organization will have much
the same powers. For the present and
the immediate future 1t will have much
the same powers by force Of existing cir
cumstances. Banks desiring aid from
the clearing house must submit to exami-
nation by the clearing house committee
and follow the directions of that commit
tee In regard to sale of securities or the
raising of money in other ways, SO when
any trust company applies for assistance
II must offer examination to the trust
company committee and otherwise be gov
erned by that committees rulings.
Not only as an alleviant for the present