New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-10-23
MAY NOT OPEN TO-DAY.
Other Concerns SlOzC an AdUanCing
Funds to Trust Com pany.

The Knickerbocker Trust Company suspended
payment yesterday at a little after noon at
both the main office. Fifth avenue and Saith
street and the downtown and uptown branches,
and the present prospect is that ii will not be
able to resume business.
AT a meeting Of bankers at the Union League
Club last night it was decided by men who had
information in their possession to substantiate
their statements that the Knickerbocker Trust
Company would never open its doors again, or
at least under its present management.
Details of the meeting of the Union League
Club were refused by attaches of the club. who
said that so far as they knew no conference"
had taken place there. II was later stated on
good authority that one of the men who con-
suited with Mr.. Cortelyou quit the conference in
the Union League Club to join Mr. Morgan at
the Hotel Manhattan.
II was reported last night that more than
S4,OO0000 of deposits had been withdrawn from
the Trust Company Of America yesterday. The
who made this statement was one Of the
members Of the conference. which included Sec
retary Cortelyou. Mr.. Morgan. Mr.. Hepburn and
others. at the Hotel Manhattan.
The announcement of the closing Of the COM
panys doors followed by a break of great
severity in the stock market. which had been
weak from the opening; but in the late trading
a moderate recovery occurred Call money went
high 20 per cent.
Despite the announcement at the adjournment
Of the conference of Knickerbocker Trust Com
pany directors. heads OF various trust companies
and other hnanciers at Sherry's early yesterday
morning that two funds had been pledged, ag-
sregating $15OOOOO0. for safeguarding the
Knickerbocker and that the latter had S.
100000 cash of its own hand. the suspension
OF payment was announced 70 be due TO the
fact that the company had run short Of cash.
II said yesterday afternoon that no part
of the outside emergency fund had been used
and il further declared in quarters
that the total amount of the assistance thus
pledged was not IN excess of 100000 instead
Of $4,000, 900
In the course of the afternoon a meeting Of
the heads of twenty-five trust companies was
held. a. which committee was named to con-
fer with the directors Of the Knickerbocker
Trust Company. II the condition of the Knick-
erbocker should be shown 10 warrant the ac-
tion. II said, the associated trust companies
stood ready to advance to it sufficient funds TO
enable 1t TO resume business number of the
most important trust companies were not repre-
sented at the meeting of presidents.
or the SS,OOOOOO paid out yesterday by the
Knckerbocker before il closed its doors, prob
ably the greater part used in satisfying the
claim OF the National Bank of Commerce. That
institution. which for years had acted as the
clearing agent for the Knickerbocker a rela-
tion terminated yesterday by the bank had
debit balance yesterday morning of $1,000 900
at the Clearing House. An officer of the bank
said yesterday afternoon:
"A large part of our 100000 debit balance
this morning was on account OF the Knicker-
booker Trust Company. I don't care to give
the exact figures. because that is none of our
business. We are covered in every way. how
ever"
AS noted in The Tribune yesterday. under the
law it now stands clearing agent would In
of the insolvency of the institution for
which II acted. be responsible TO the Clearing
House for the full amount of the principals
clearance, and would have no claim on the de-
posit held by IT of funds of the institution
cleared these funds passing TO the control of the
receiver.
DIRECTORS TAKE NO ACTION
A meeting of the directors of the Knicker-
booker company was held in the afternoon at
No. 66 Broadway There full attendance
only two of the members being absent. Presi-
dent Higgins presided. and it was evidently TO
hear his statement of affairs rather than to
offer any tangible solution of the problems in
volved that a majority attended. The state
ment made by H. r. Holins early in the day
that $1OOO0O0O could be had by the Knicker-
booker Trust Company at any time. quoted
by several of the directors before they entered
the room. The session was long and animated,
following Mr.. Higgins's statement which was
substantially the same outlined in the inter
view already quoted
When the board adjourned at O'Clock. it was
evident that disappointment had greeted all
hopes of immmedlate assistance One after an
other. the directors departed. majority declin-
ing to talk all. while those who did consent to
express themselves had little hope for the fut-
ure.
Joseph S. Auerabch, of the law firm of Davies
Stone & Auerbach. who is director well as
counsel for the company, issued statement
after the meeting was over. In it he said with
the consent of hisvellow directors:
Everything possible has been done by the
officers and directors to meet the extraordinary
demands upon the resources of this company,
but IL can be well understood that no trust
company has sufficient liquid assets at all times
to meet the demands OF a greater part OF its
depositors. The directors confident from
the statement of the Acting Superintendent of
Continued second page.