The free lance. (Fredericksburg, Va.) 1885-1926, 1907-10-24
A.YTRUSTCO.CLOSES
The knickerbocker Is Forced 10
Suspend Payment.
THIS ACTION FOLLOWS RUN
pepositors Draw Out 100000 In
1-2 Hours, and Payments Are Sus.
pended Until Cash Is Ralsed-ofh-
Gals Insist Bank 10 Solvent.

| ~"s" ~SSn - rdtSco-Offl-
Gals Insist Bank 10 Solvent.
New York. Oct %. - Credit. the
ander-the-surface foundation OF all
business. trembled for a time. and be-
Tore confidence could be restored New
forks second largest financial insti-
tuition hae emptied its cash vaults
under pressure OF the biggest run ex-
perienced here in a generation: a
stock exchange firm had failed for So.
OOV,OOO; Wall streets principal securi-
ties had settled from IS TO IS a share:
call money had risen to 20 per cent.
and local bankers, unable TO stem the
tide OF distrust. had been forced to ap-
peal 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-
pected bank was solvent: declarations
by prominent bankers that there was
no true basis for alarm. and assur.
ances from Washington that Secretary
Cortelyou would not hesitate TO act
promptly in any situation where leriti.
mate business was threatened. Now
that the first scare is over and the
worst of the future discounted IL is
believed that local banking affairs will
soon readjust themselves.
Secretary of the Treasury George
3. Cortelyou reached New York from
Washington He has no preconceived
ideas how much money will be re
CURED to relieve the situation. and the
matter of treasury relief measures will
be determined by what he learns. He
VIII 90 all hat be can to relieve the
present stress.
cortelyou Aids Banks.
Before leaving Washington Mr.. Cor
tolyou directed that $4,000. 600 be de-
posted with New York banks as soon
as the necessary collateral had been
furnished.
The Knickerbocker Trust company.
with deposits of $50. 900 900. paid out
cash to depositOrs at the rate of s44- |
iii minute for three hours. and then
closed its doors. The directors had
as they thought. fully prepared for
run and caused to be announced in
the papers that $4,000 in cash was
on hand TO meet all eventualities.
When the doors opened a few de-
positors withdrew their accounts and
an hour later hundreds were IN line TO
take out their deposits at the main
office at sfth street and Fifth avenue
and AT the Harlem. the Bronx and
the downtown branches. The Ss.OOO.-
200 lasted three hours. when Vice
President Joseph T. Brown announced
that the bank had no more cash avail. |
able. and payments were suspended. |
The knickerbocker II was announced |
had ample securities to meet all de. |
mands. was perfectly solvent. and II /
Was only question of raising the /
cash. when all depositors who wished |
TO withdraw could do so. Desperate /
Efforts are being made by the officials /
OF the knickerbocker TO get In their /
leans and otherwise replenish their /
cash vaults
6lsmes President Roosevelt.
After the doors OF the Knicker-
booker Trust company were closed |
William Turnbun, the fourth vice
president said:
All the disturbance in the money |
market has been caused by one man.
who in the past six months in public
and private speeches has been grad
ualiy undermining tie credit system
OF the country. Monday night the
knickerbocker Trust company had as
sets way in excess OF its liabilities.
and in one night the confidence of its
patrons and its credit were DESTROYED
This was brought about by one man.
and that a man who knew nothing
whatever OF the credit system"
one OF the reporters asked Mr..
Turnbull whether he was referring 10
President Roosevelt.
You know perfectly well who
mean," replied Mr. Turnbun There
IS no need for me TO specify"
Acting State Superintendent Of
Banks George l. Skinner, who had
expressed confidence thai the bank
would meet all obligations. qualified
his position when he issued the fol-
lowing statement:
The knickerbOcker Trust companv
Is not without hope that 1t NAV still
receive adequate aid from financial
II it does, 1t will open its
doors as usual. II 1t does not. IL will
not open its doors in the morning.
and |. Of course, shall act under the
ADVICE OF the attorney general. who Is
made by law the legal adviser of the
state banking department"
Bankers not directly associated
with the Knickerbocker were quite as
anxious that its integrity be main
iained, and many conferences were
held with a view to putting the Knick-
on its feet, If this could be
accomplished without weakening
other institutions.