The Washington herald., 1907-10-22
OUITSTRUSTCOMPANY
Bank Takes Drastic Action
in Case of KnickerbOcker
PRESIDENT BARNEY RESIGNS
Head of Big New York Concern Re-
signs at Same Time Bank Through
which IL Clears Serves Notice that
IL Would No Longer Act i'm that Gu
pacity-FinaneIers Surprised.

New York. Oct. 2l-Charles T. Barney,
brother-in-law of the late William C.
Whitney. president of the Knickerbocker
Trust Company, the largest. in the city
with one exception, rendered his resigna-
tion to the board of directors at a special
meeting Of the directors this afternoon.
About the same time that this sudden
and unexpected action became known in
the financial district It was learned that
the National Bank of Commerce had
served notice both upon the Clearing
House Association and the Rnicker-
booker Trust Company that it refused
longer TO clear for the latter institution.
At the meeting of directors, at which
Mr.. Barney's resignation was accepted.
\. Foster Higgins was elected In his
place
Mr.. Barney would give no explicit rea-
son for his resignation tonight In re-
gard to the action Of the National Bank
of Commerce, he said that he had no
knowledge of it. 1t was taken a. ler his
resignation was offered and acted upon.
he said. National Bank Of Commerce
officers refused TO make any comment
whateevr regarding the Institutions
summary proceeding.
Next to Largest in City.
The KnickeTbOcker Trust Company is
the largest In the city in point of de
posits, which, in a recent manual. are
given as approximately S63,000000. The
company's main offices are at Fifth ave
nue. and Thirty-fourth street, where il
occupies a building designed by Stan
ford White, by many architects consid-
cred Mr.. Whites masterpiece in archi-
lecture, and generally regarded as one
of the most ornate in the city. The
company has branches at &C Broadway
100 West Twenty-nfth street. and 9S0S
Third avenue.
The company was organized in 1884
In 1893 it bought control Of the Equitable
Trust Company of Pittsburg. Il has
N,200,000 capital, and showed recently s.
100000 surplus and undivided profits. a
total reserve Of S69.000,O00 Recently it
had paid dividends of p per cent as
compared With 20 per cent last year The
par value Of its stock is Sl0O and the
500 a share
Mr.. Barney, the former president Of
the company, is also president Of the new
theater, the New York Loan and I'm
provment Company, and the Knicker-
booker Safe Deposit Company. and vice
president Of the Title Insurance Com
Fany Of New York.
Directors Have Free Hand
There are troubles sometimes" said
Mr.. Barney, and all I can say about
the matter tonight is that I resigned
10 give my associates in the company a
free hand in the management. II Oc-
CURED TO me that they might iii my
place by the selection Of a man better
able 10 serve the interests Of the com
pany, and if this could be done I wanted
to give the directors ample opportunity
to do so.
There is not the slightest truth in any
report that I was forced out Of the COM
pany by the clearing house committee OF
by the action Of the Bank Of Commerce.
As I'have said, l did not know anything
about the Bank Of Commences action
until after my resignation was filed and
accepted, and my successor chosen"
In regard to the condition Of the KniCk-
erb0cker Trust Company, Mr. Barney
laughed when it was suggested that the
institution might be III some trouble
Nothing could be more absurd" ne
declared the company was never in
stronger condition. 1t remains next to the
largest in the city and as sound as any
There is not the slightest question of its
entire solvency."
Mr.. Barneys statement in regard to the
condition Of the institution was confirmed
by one of the State banking examiners
tonight. The company, this examiner
said, was examined by the State exam
liners two weeks ago and found ahSo-
lutely sound.
There could be no excuse. it was de-
clared. for the slightest intimation re-
gardIng its standing
Associated with Morse.
Mr. Barney, the president Of the
Knickerbocker. was associated with
Charles w Morse in the American Ice
Company, the National Bank of North
America. and the New Amsterdam Ma
tional Bank, in all of which he was a
director Mr.. Morse was likewise a
director of some realty companies in
which Mr.. Barney is heavily interested. |
It was suggested that Mr Barney
resigned frOm the presidency because |
his name had appeared as director of /
Morse institutions in the course of the |
not0riety achieved by Mr. Morse I'm |
the past week. Mr.. Barney refused t.
entertain the sugges stion. Nevertheless /
it was believed there was reason /
prompting his resignation.
Mr. Barney's principal banking con- /
aecttOns, apart f;om his connection /
with the once Morse banks. are with /
the National Bank Of Commerce and 4
the Coal and Iron National Bank. He
is very heavily interested in real es- /
tate title companies, and kindred con- /
Germs.
May Seek Information,
Richard c. HOllyday. civil engineer /