Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1907-10-22

NEW IOIki OCt. Il.--DdHkcIS, UIOh
ers and business men generally. came
down to their Offices early today tC
prepare for whatever further develop
ments there might be in the flnancia
situation. There was considerable ner
vousness as the result of develop
ments concerning the Knickerbockel
Trust company.
The news printed today that the Ma
tional Bank of Commerce yesterday
gave notice that 1t would decline tC
longer act as the clearing house agent
of the Knickerbocker Trust company
and the resignation Of Charles T. Bar
ney as president Of the Trust Company
served to unsettle public sentiment
more than the Morse-Heinze develop
ments of last week.
The magnitude Of the business trans
acted by the Knlckerbocker Trust
company, with deposits amounting to
more than sixty million dollars, gave
a much more serious aspect to the
changes made in its management than
did the changes in the relatively
smaller Morse-Heinze concerns.
Financiers Hold All Night Conference
The announcement Of Barney's res
ignation was followed by series OF
conferences between financial men
which continued until 2 o'clock this
morning. Among those present were
J. Pierpont Morgan and his partners
After these meetings statement was
given out by the directors OF the
Knickerbocker Trust company to The
effect that It had been decided in
view of Barney's relations with the
Morse-Heinze interests. that the best
interests of the company would be
served by his resignation as president
and director, and also as a director
of the Bank of Commerce.
Run Started on Knickerbocker Trust
Company.
The Knickerbocker Trust company
this morning issued the following
statement: "This company will here
after clear by itself all guar
antees. Additional cash, should it be
needed, has been obtained, and the
Trust company will be amply prepar-
ed to meet any emergencies that may
grow out of the change in the method
of clearing. The Knickerbocker has
more than eight million dollars In
cash in its vaults and the meeting OF
the trust company presidents last
night was largely for the purpose OF
outlining a plan for clearing house
of the trust companies, similar to that
of the banks.
Excitement, amounting to almost a
panic, marked the opening of business
today In Wall street. The stock
marked opened demoralized under
heavy selling by brokers in all depart
ments of the exchange and run OF
considerable proportions was being
made at the various Offices Of the
Knickerbocker Trust company.
At the main Office, located at Fifth
avenue and 34th street, more than one
hundred and fifty persons were in
line at 1O:30 o'clock this morning and
the line of carriages in waiting extend
ed for more than block farther back
of this line.
The stock markets opening showed
severely the effect of the renewed
shock to public confidence, caused by
the spread Of financial distrust by
published details Of the affairs of the
Knickerbocker Trust company. Prices
broke widely on opening transactions
under this outpouring of stocks, but
almost Immediately rallied.
This rebound approximated from
one-fourth to one-half Of the first
break. This was followed by second
break, which, in turn, was succeeded
by good rally, the decline having
been arrested before the previous low
records were broken through. With
this demonstration Of effectiveness of
support for the market somewhat
more Of a tranquil feeling ensued
Another Big s!ump at Noon.
At 1885 o'clock there was another
violent slump on Wall street, Union
Pacific selling at 10, loss of Z IA
and other stocks with nearly as great
loss. At that hour call money was at
so per cent.
The stock market had a rally during
the final hour and closed Arm. Just