The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-10-24
FINANCIAL FURRY
REACHES PITTSBURG
stringency Having About
Played Out at New
York Goes West.
WESTINGHOUSE FIRMS ARE HIT
Receivers Are Appointed But the
Concerns All Declared Solvent
Morgan at the Head Now.

New York. Oct. 23.-One depressing |
event followed another in such rapid
succession today and the financial cri- |
sis reached such an acute stage that
]. Pierpont Morgan assumed full charge |
Of the situation and Will endeavor TO
restore confidence
AT his elbows are James Stillman |
president of the National City bank;
Z. II. Hartman. the railroad magnate; !
Thomas +. Ryan, the fnancier. and
Oakleigh Thorne. president of the !
Trust company OF America. These five |
constitute the committee that repre- |
sents Secretary Of the Treasury Cor
telyou in distributing government re-
lief to needy institutions.
Events Follow Rapidly.
From early morning until late night
distressing news was heard from var
ious sections. During the entire day
the committee of five labored to stem
the tide Of ruin that threatened.
Three Of the concerns represented
in the mighty Westinghouse interests,
representing a combined outstanding
capital of more than $4,000. 600, went
into the hands of receivers One 9TH
err concern also connected with West
inghouse companies IS slated for re-
ownership tomorrow. The concerns
already in the hands OF receivers are
the Westinghouse Electric and Manu-
featuring company, the Westinghouse
Machine company. and the Security In
vestment company OF Pittsburg. the
holding company. The petition is be-
ing prepared to include the Nernst
Lamp company. another connection, to-
morrow.
Run on s7O,OOO,OOO Bank.
A run on the Trust Company of
America, which carries deposits of
more than $4,000 900. developed early
this morning. and all day long the tell
ers paid out money as fast as they
could. while the police struggled to
keep order in the ranks Of panic
stricken depositors. The amount paid
out was not announced. Wagon loads
of securities were taken from the
vaults and submitted TO the examin-
ing committee of financiers to show
whether the institution was worth
further aid. 1t was announced that
the banks will furnish the necessary
currency to carry the trust company
through the crisis.
The Knickerhocker Trust company
which closed its doors Tuesday, failed
TO reopen today according to promises,
and the state superintendent of banks
assumed charge.
Pittsburg Bank Fails.
From Pittsburg late tonight came
the word that the Iron City Trust
company had been placed in the hands
of receivers with liabilities of 81, zoo, 900
owing to depositors and assets of S4,-
100000 1t was announced that the re-
ownership of the Westinghouse COM
panies made such proceeding neces-
sary in the case of the Iron City Trust
Another bank failure was reported
from Reno, New, where the State Bank
and Trust company was forced TO close
its doors. Inability to realize on col
lateral security for a 100000 loan was
given as the cause.
Attorney General Jackson. Acting
Superintendent of Banks Skinner, and
members of the State Bankers asso-
citation were in conference during the
day. After the meeting it was said
that the arrest Of three men promin-
ent In the financial world was not en-
tirely unlikely
Another disquieting development was
the closing of the Pittsburg stock ex-
change until Monday at the request of
the Clearing House association. This
was followed by the unloading of a
large number of shares, estimated at
100000. on Wall street, which nearly
deluged the market.
To Investigate Trust Banks.
After prolonged conference at ]. P.
Morgan's office an organization of the
presidents of the New York trust COM
panies was effected. not different in
principle from the Clearing House as