Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-25
BurIy Financier Stems the
Wild Market Panic.
ROCKEFELLER ALSO HELPS
Over $100,00O,000 Thrown Into the
Stock Maelstrom.
SUPPORT PROVED EFFECTIVE
Usurious Rate on Call Money Drop
ped 90 Per Cent Inside of
Few Minutes.

| NEW YORK. October 25--rhe removal
Of abnormal and all but unprecedented
| conditions in the money market was The
| principal accomplishment yesterday Of
those bankers VINO are eXerting utmost
| endeavors to restore financial condil ions
to a sane and normal basis
The stock market was on the verge
Of panic when Morgan. responding 10
| pheous appeal. sent 81. OOJOo0 10 the ex-
change and turned the tide
John ID. Rockefeller distributed $IO.-
| oT,0o0 through the Union Trust Com
pany.
Secretary Cortelyou deposited large
part of $25.oo0.@lo in New York banks
Nine millions more was drawn from tho
| Trust Company of America. but it had
no difficulty, as possibly much was de-
| posted.
The millions poured into the market re-
| iuced the rate al the close to 10 per
| cent.
| The Hamilton. the Twelfth Ward and
| the Empire City Savings Bank. -,three
small banks in Harlem. suspended
Directors OF the Knickerbocker are
| working ont a scheme to avoid Iiquidat ton
| by forming a syndicate to guarantee pay
| ment In full 10 depost1rs.
There was a run on the Lincoln trust
| Company. which has no difficulty i'm meet
| ing all demands.
y petition was filed in the federal court
in birmingham, Ala, asking that the
Southern Steel Company. capitalized at
s23.o00ODO, be declared bankrupt.
A Napoleonic Coup.
BY far the most notable. even dramatic.
episode of the day was the emptying
Of millions Of money into the stock ex-
change through a pool headed by ]. F.
Morgan and other financiers. in order to
avert ruthless selling out of stocks held
BY brokers. which was threatened be-
,ause OF their ina Oility to obtain renewals
of loans on which these stocks had been
carried. A markabie condition brought
ibout this extreme stringency in money
which had gradually forced the interest
ate up to an almost unprecedented figure
Certain large interests of great financial
resources had been charging what was
In effect, If not gally. usurious rates
of interest on call loans. One institution
hat had been engaged in this practice
vas itself a member of the clearing house
md was severely criticised by other
bankers for its action. on the ground
that this added unnecessary compli-
cation and strain to the money situation
AS a result of the criticism this insttu-
ton withdrew its support and declined to
offer money on call on the stock exchange.
The effect of this was to run the rate for
money yesterday up to 1D per cent, and
sharp decline resulted in the stock mar
ket, Union Pacific, 10 per cent stock.
selling down to par.
Notwithstanding the high rate for call
money that might have been obta
the National City Bank John d. Rocke-
Teller personally and other prominent
money interests sent funds to the stock
exchange TO be lent at the normal rates
of per cent. These sums, however, were
not sufficient to meet the demand, and
for time there was great confusion and
hurried selling Of Stocks on the exchange.
Cheers for Morgan.
At the time that excitement was at it's
height the announcement was made that
a pool had been formed. with ]. p. Nor
gan at its head, to come to the rescue OF
the brokers for whom it was necessary to
provide funds at once In order that they
might carry the stocks they were holding
for their customers. The Morgan pool
brought a sum of money amounting to
| about $4,000, 900 into the loan corner OF
the exchange, where II was quickly dis
tributed In such lots as would be most
effective in rendering support.
The effect of this relief measure was
instantaneous and the rate on call money
dropped from 100 per cent to 10 per cent.
Stocks advanced more rapidly than they
had declined, and 1t was only a few min
utes until Union Pacific, the market
leader was selling at 105. Other stocks
were similarly affected. and the rally was
complete. Seldom II ever. had the vet
Grams of finance seen a great situation
saved quickly and so effectively by
such Napoleonic stroke. When the stock
exchange closed every one was getting all
the money he wanted. The close was
marked by memorable scene In which
the brokers gathered around the principal
trading posts and gave three cheers for
j. Pierpont Morgan and the members of
the pool which had saved the day.
100000 Poured In.
The aggregate amount of money which
had been contributed in order to weather
the storm and restore confidence assumes
truly colossal proportions. Roughly esti-
ma ted, II includes SIS 600. 900 which Sec
rotary Cortelyou deposited in the New
York banks So 900. 900 which the Nor
gan pool brought to the floor. $l0.0OO,OO0
which John ID. Rockefeller deposited with
the Union Trust Company as means of
stcmming the tide at the Trust Company
Of America, and finally another S50.0O0.0OO
which, ii is understood. Mr.. Rockefeller
stood ready to advance to meet any fur
Their stress Of condltionS-in all consid-
crably in excess of 800. 900. 900.
John D. Rockefeller Active.
For the first time since the troubles
became acute John d. Rockefeller spent
the entire day in the financ al district.
He was in and out of various baking
effect his assertion of the previous even
irg-that he would do all in his power
to improve conditions 1t was reported
that Mr. Rockefeller. for one tn n.y.. had
p aCed Si0.l00Ne0 in TIE Union Trust
Company. where he has long kept large
portion of h $ cash resources. and that
this money was being used either In the
loan crowd on the stock exchange or else
where by the trust company officials.
acting under his direction. One of the
reports of the day was that Mr. Rookie
fel.er lai loaned a large sum on the
stock exchange at Il PER cent. Mr.. Rookie
faller when seen last night refused % say
in just what manner ne had acted
What Cortelyou Did.
As on Wednesday, Secretary OF the
Treasury George g. Corte you rema ned
in the sIbtrea sUry from cary in the
/ morning until early in the evening super
intend Tg execution OF the measures OF
relief decided upon b. him the prey Gus
evening and consulting constantly vi n
clearing house members, private bankers
ami trust company Ollie - ami otu -
who called upon i'm. The Secretary.
who had expected To- pace 500 U'OD m
the natioaa- LaGks, found tlat tn : large
amount was not needed. 50 that there
remained OF the S2jnOJ.tOD cons de-ahi,.
sum which is at the disposal of national
banks The Secretary would not stat.
the exact amount withdrawn from the
SuhtleaSury. bur il was agreed that n