Milford chronicle., 1907-10-25
N. Y. TRUST co.
STOPS PAYMENTS
The KnickerbOcker Suspends Pay
ment After a Run,

New York, Oct %. - Credit, the
nnder-the-surface foundation of all
business, trembled for time, and be-
fore confidence could be restored New
York's second largest financial insti-
tuition had emptied its cash vaults
under pressure of the biggest run ex-
perienced here in a generation; a
stock exchange firm had failed for So
100000; Wall streets principal securi-
ties had settled from S. to IS a share;
call money had risen to 10 per cent,
and local bankers, unable to stem the
tide of distrust, had been forced to ap-
peal for relief to the secretary of the
treasury at Washington.
All this was In the face of reassur-
ing statements by the acting state
superintendent of banks that the sus-
sSseted bank was solvent; declarations
by prominent bankers that there was
no true basis for alarm, and assur-
7aAces from Washington that Secretary
Cortelyou would not hesitate to act
promptly IN any situation where leglti-
mate business was threatened. Now
that the first scare is over and the
worst Of the future discounted, it is
believed that local banking affairs will
soon readjust themselves.
Secretary of the Treasury George |
p. Cortelyou reached New York from
Washington. He has no preconceived |
ideas how much money will be re.
quired to relieve the situation and the
matter Of treasury relief measures will |
be determined by what he learns. He
will do all that he can to relieve the
present stress.
Cortelyou Aids Banks.
Before leaving Washington Mr.. Cor
telyou directed that 100000 be de.
posted with New York banks as soon
as the necessary collateral had been
furnished.
The Knickerbocker Trust company,
with deposits of $6O.OOO,OOO, paid out
cash to depositors at the rate of s44,.
444 a minute for three hours, and then
closed its doors. The directors had,
as they thought fully prepared for
run and caused to be announced in
the papers that s8,OO0,OO0 in cash was
on hand to meet all eYentualities.
When the doors opened a few de-
pssitors withdrew their accounts, and
an hour later hundreds were in line to
take out their deposits at the main
Office at Gath street and Fifth avenue,
and at the Harlem, the Bronx and
the downtown branches, The SS,000,.
900 lasted three hours, when Vice
President Joseph T. Brown announced
chat the bank had no more cash avail.
able, and payments were suspended.
The KnickerbOcker, It was announced,
had ample securities to meet all de.
mands, was perfectly solvent, and il
was only a question of raising the
cash, when all depositors who wished
TO withdraw could do so. Desperate
efforts are being made by the officials
of the KnickerbOcker to get in their
loans and otherwise replenish their :
cash vaults.
5lames President Roosevelt.
After the doors of the Knicker-
booker Trust company were closed
William Turnbull the fourth vice
president. said;
"All the disturbance in the money
market has been caused by one man, :
who in the past six months in public
and private speeches has been grad .
ually undermining the credit system
Of the country. Monday night the
Trust company had as.
sets way in excess of its liabilities,
and in one night the confidence of its =
patrons and its credit were destroyed. II
This was brought about by one man,
and that man who knew nothing
of the credit system" ,
One of the reporters asked Mr.. y
Turnbull whether he was referring to
President Roosevelt. r,
"You know perfectly well who =
mean" replied Mr.. Turnbull. There "
IS no need for me to specify" -