The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-11-08
HOW MAGNATES
CLIPPED IN
When Millions Were Dumped
Into Wall Street to Stay
the Panic.

A graphic account of one critical day
in the recent Wall-street excitement APP
pears in the New York Tribune of DC
tober %. 1t is here reprinted
The expected panic in the stock mar
ket almost came to a head yesterday
afternoon, but relief came so quickly
in the shape of $25,O00,O00 to loan on
the Exchange that there was an in
slant turn upward in prices throughout
the list.
This $25,OO0,0OO came through the
banking house of j. P Morgan & Co.
What appeared to be the real panic
began at > o clock, when Union Pa
cific dropped So points to par. North
ern Pacific declined 8 points, st. Paul
6, Southern Pacific AS.
This was because all rates were up
to 100 and over, and very little money
was to be had at any price.
Then it was that the $25,000,000 was
sent over to the Stock Exchange by
Mr.. Morgan to be loaned in sums OF
100000 and upward. The call money
rates dropped Immediately to 10 per
cent, and at that rate all of the $685.
100000 was offered.
1t did much to reassure Wall street,
and although stocks were very weak
at the time, they began to rally when
the news became generally known.
The action of J. P. Morgan & Co. in
coming to the help of the money mar
ket, together with the action of j. D.
Rockefeller in advancing many millions
of dollars cash at 6 per cent for the
use of stock brokers and institutions,
was believed to mark the turn in the
situation. Bankers felt much encour-
aged at the close of the Gay.
Mr.. Rockefeller appeared at the Uni
on Trust Company at 8 O'Clock in the
morning, and after half an hours con-
ference with President Edward King
he deposited $10,00O,000 to be used in
aiding the Trust Company of America.
Following Mr.. Rockefeller s visit bag |
after bag of currency was taken in
cabs from the Union Trust Company Of
fee, at No. so Broadway, to the Trust
Company of America, a: No. 81 Wall
street.
1t was known on Wednesday night !
that John D. Rockefeller had decided /
to add his help to that of those re-
lieving the situation, but his visit to
the financial district at so early an
hour was a surprise.
After Mr.. Rockefeller's conference |
with President King about twenty
trust company presidents and officials
called at the Union Trust and went
into conference. Among those present
were George R. Sheldon, director
Of the Trust Company of America;
Secretary Henry NJ Francis of the
Morton Trust Company. and w. H.
Tweed, formerly of speyer & Co.
1t was also understood that Mr..
informed the Union Trust
officials that he could be called upon
for any amount UP to $50, 100000, if
necessary to relieve the situation.
Leaving the Union Trust, Mr..
went to the office of j. P.
Morgan & Co. where he had half an
hours conference with Mr.. Morgan
1t was then announced that Mr..
had directed his brokers
o loan money in the market at per
ent.
Wall Street understood that the :
Union Trust Company had been Sc I
ected as the agent of the trust COM
'anes and f1nanciers cooperating to I
elp the Trust Company of America. t
This action was said practically to I
stabl;sh clearing house of trust {
with assurances of mutual
elp.
a few of the representative declines
efore the s25,OOO,OO0 was available
we're:
De- 7