The Red Cloud chief., 1907-10-25
RUN On k~N|CKERBOCKER
NEW YORK TRUST COMPANY aus
PENps PAYMENT.
GoRTELvoU TO THE RESCUE
escretsry Of the Treasury orders $S,.
100000 Deposited In the New York
City Banks and Issues Reassuring
State ment-Broker Fail.


New York, Oct. 23.-Credit, the nm.
derthc.suIface foundation of all bust.
ness, trembled for a time, and before
confidence could be restored. New
Works second largest financial insti.
tuition had omptied it's cash vaults un.
Der pressure of the biggest run ex-
%IerienCed here In a generation; a
stock exchange firm had failed for &c..
O00, 600; Wall streets principal secur.
ties had settled from So to SIS a share;
call money had risen to 20 per cent,
n local bankers, unable to stem the
tide OF distrust, have been forced to
appeal 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.
rected bank was solvent; declarations
by prominent bankers that there was
no true basis for alarm, and assur-
anCes from Washington that Sccre-
tary Cortelyou would not hesitate to
act promptly in any situation where
legitimate business was threatened.
Now that the first scare and the
worst of the future is discounted, 1t is
believed that local banking affairs will
soon readjust themselves.
Secretary Cortelyou is here 10 look
thoroughly into the financial situation,
which he has had under observation
for several weeks. He has come with
I~rc-cOnceived ideas that additional
money will he required to support the
situation and the relief will be deter
mined by what he learns here. Be.
fore leaving Washington Mr.. Cortel-
you directed that $4,000. 200 be depos-
tied with New York banks as soon as
the necessary collateral had been
furnished, and at the same time he is
sued a reassuring statement.
knickerbocker Out Of Cash.
The Knickerbocker Trust company,
the storm center, paid out cash to de-
positors at the rate Of $44,444 a min
ute for hours, and then closed its
doors. The directors had, as they
thought, fully prepared for a run and
caused the announcement that $4,000
600 in cash was on hand to meet all
e~ventualities.
At $3.50 o'clock a few depositors
withdrew their accounts and an hour
later hundreds were in line to take out
their deposits at the main office, at
Hhirty-fourth street and Fifth avenue.
and at the Harlem, the Bronx and the
downtown branches. The $4,000, 900
lasted until 1890. when Vice Presi-
dent Joseph 7. Brown announced that
the bank had no more cash available
and payments were suspended. The
knickerbocker, il was announced,
had ample securities TO meet all de-
mands, was solvent, and II was only
n question of raising the cash when
all depositors who wished to withdraw
could do so.
When the meeting of the directors
of the knickerbocker broke up. J. s.
Aurbach, "A director and counsel for
the company, gave out the following
rtatement:
Everything possible has been done
by the officers and directors to aid the
extraordinary demands on the re-
fOurces of this company, but ii can
he well understood that no trust com
pany has sufficient funds at all times
10 meet a greater part of its deposits.
The directors are confident that the re,
sources oi the trust are sufficient to
meet all obligations in full"
No Aid From Outside Sources.
Asked what he thought the pros.
Iects We're of the bank opening, he
faid:
1T would be impossible to do it IN.
less we receive sufficient resources,
and | do not think that these will be
On hand, We are doing all that can
be done. The Knickerbocker did not
receive one dollar from outside
sources. | don't know 10 the story
that millions were to be placed al
the disposal OF the Knickerbockei
originated"
Bankers not directly associated
with the KniCkerbocker were quite as
anxious that its integrity be main
tanned and many conferences were
held with a view 10 putting the knick
erbocker on its feet, II this could bt
accomplished without weakening other
institutions. George w. Young OF the
Windsor Trust company expressed the
rentiment OF the bankers generally
when he said: 1T would he suicidal
for the other trust companies not tC
desire to save the Knickerbocker."