The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-10-23
ITS CASH RAN OUT
AND D00RSARE
CLOSED
KnickerbOCker Trust Fails At.
ter Paying 100000
CoRTELYOU ON THE GROUND
Secretary OF Treasury Goes From
Washington to Now York to Con
fer on the Situation.

NEW YORK, Oct 23.-The knlcker'
booker Trust company, the second lar
gest trust company in New York city.
with deposits amounting to about $780,
100000, closed its doors after paying
out TO depositors who had besleged the
four Offices from early morning the
sum of $S,000,000.
About 300 depositOrs were in the
main Office at Thirty-fourth street and
Sixth avenue awaiting their turn to
withdraw their deposits when Second
Vice President Joseph p. Brown came
out of his office and announced to the
depoSitOrs that payments on checks
had been suspended temporarily be
cause of the inability Of the company
to obtain currency fast enough to meet
the demand. He said the company had
been using automobiles In the effort TO
get the c,mh to the bank. lie could
not say when the company would re
sumo payments.
AS Mr.. Brown was making this an.
nouncement the pa. ing teller was pass
ing out big pile of currency to Gus
toner. but as he heard the announce
ment the teller Withdrew il quickly.
At Mr.. Browns announcement there
was rush of depositors to the tele-
phones. and acquaintance of the Off
GERS of the trust company appealed TO
them to be allowed to withdraw small
amounts. These appeals were refused.
An attempt was made to close the
doors against the depositors who were
waiting outside the office, but they
made dash for the doors and forced
their way past the men on guard and
into the office. Police were then sta
toned at the doors. Many depositors
soon left the office. but about 100 lin
gered about for some time.
A detail of police was required to
clear the Harem branch.
Secretary of the Treasury Cortelyou
arrived In this city last night. lie was
met at Jersey City by Hamilton Fish,
assistant United States treasurer, and
the two were in earnest conversation
during the ferry trip to New York.
Upon reaching this city they went at
once to the Hotel Manhattan. where
several bankers later presented to the
secretary the various phases Of local
financial conditions.
Secretary Cortelyou is here to thor
oughly look into tEr financial situation.
which he has had under observation
for several weeks. He has come with
no preconcelyed ideas of how much
money will be required to relieve the
situation, and the matter of treasury
relief measures will be determined by
what he learns here. He declares that
he will do all that he can to relieve the
present stress.
Shortly before II o'clock last night
j. Pierpont Morgan, George w. Per
kins, George #. Baker, president Of the
First National bank. and Frank A.
Vanderlip, vice president Of the Ma
tional City bank, reached the Manhat-
tan hotel and We're Immediately taken
to the apartments of Secretary Cor
telyou.
Attorney General Jackson came from
Albany last night TO confer with Act.
ing superintendent of State Banks
Skinner on the situation.
Acting Superintendent Of Banks
Skinner has notified Attorney General
Jackson that the affairs of the IInick-
erbocker Trust company. while not
hopeless, We're in SO critical condition
that the attorney general should be
prepared to act ut any time.
Following the suspension of payment
by the Knickerbocker Trust company
the following statement was given out
THE examination of the Knick erbOck-
er trust company was made By state
bank examiners on Sept. H. Their re-
port showed that the. KnickerbOcker
Trust company had on hand on that
date good assets to the amount of $685.
SSl,522, with liabilities of 500, 70l 531:
surplus s., 1872, $500"
The stock market opened weak on
the announcement that President Bar
ney of the Knickerbocker Trust COM
pany had been deposed and went to
pieces when the news came that the
company had stopped payment Money
on call opened mt 10 per cent, promptly
went to ID and ut noon was quoted at
80. a loan of 100000 was made on
the stock exchange shortly after 2
o'clock at 20 per cent. Several bankers
formed pool of $4,000,000, which was
loaned at between 40 and so per cent.
The assignment of the firm of Mayer
II Co., brokers and members of the
New York stock exchange, with liabil-
tiles amounting to $6,00O,0OO, was an
nounced on the exchange.