The Washington herald., 1907-10-23

management Of bad men. none except
what is directly traceable to the bad
management OF bad men,"
Mr. Hepburn said that no clearing
house bank would be allowed to get in
trouble. Asked if there was a likelihood
Of the issuance Of clearinghouse certi-
hcates. such as was done during one
| financial crisis. he said that such plan
would not be tried again.
/ When questioned about a rumor that
the New Amsterdam Bank might have
to give up, Mr.. Hepburn said that the
clearing house would carry it along.
Clearinghouse Committee Meets.
The clearinghouse committee met early
in the morning at the clearing house, as
has been the custom for several days
past. Debit balances were reported from
clearinghouse banks as follows: Me-
chanics and Traders, 1885 900; National
Bank Of North America, $543000; Mer-
camille National Bank, s454,O00; New Am
steTdam National. $4,000 Oriental. S147.-
o00 National Bank Of Commerce. $4,000 900. |
With one exception all Of the banks
which have received assistance within the
past few days were able to take care Of
their debit balances without assistance.
The aggregate Of these balances showed
much smaller total than on previous
days in the cases of the banks which
have been assisted. In respect 10 them.
the situation accordingly seemed much
improved. The only help requested by
any of the banks was 10000 by the New
Amsterdam National This was furnished.
The debit balance of the National Bank
Of Commerce, which, by the way. was
not unusually large for an institution of
the size Of the Commerce, was due prin- /
cipally to the withdrawal from the
Knickerbocker Trust Company. for which /
the Commerce cleared. That part of
the debit balance due TO checks on the /
Knickerbocker, it was said By an officer
of the bank. was abundantly secured. |
though in what way could not be as
certained. The balance was. Of course, /
promptly paid. In connection with it, 4
officers Of the clearing houss recalled I
that on one occasion the National Bank .
Of Commerce had debit balance of /
SS2.O00,CO0, which is the largest in the
history Of the Clearinghouse Association. /
This debit, it was said, accrued from .
the payment for Third Avenue Railway
stock several years ago.
No Aid for KnickerbOcker.
The clearing house would take no steps
for the relief of the Knickerbocker Trust
Company. nor would it act officially in |
the solution of any difficulties outside
the circle Of clearinghouse institutions.
This information was impaired to the
conference of trust company officers ear
ly in the day. The decision. OF course.
did not affect the activity OF members
Of the clearing house ir efforts to i'm
prove every embarrassing feature brought
UP by the events to-day.
It was simply that the Clearinghouse
Association would continue as in the past
to confne its activities to banks within
the clearing house and to banks con-
nected with clearinghouse institutions.
Withdrew from Association.
It was recalled that when the prominent
trust companies of the city withdrew
from the clearing house on account Of
the enforcement of the clearing house
regulation that all its members, whether
trust companies, State banks, or national
banks, should maintain a % per cent re-
serve, the Knickerbocker Trust Company
was one Of the first to withdraw from the
Association.
In conference with Mr.. Morgan and his
partners at one time or other throughout
the day were Thomas F. Ryan, Of the
Morton Trust Company; Dumont Clark.
president Of the American Exchange Ma
tonal Bank; George F. Baker president
OF the First National Bank; John / Wa
terbury; Charles S. MeIlen. president of
the New York, New Haven and Hartford
Railroad; H. Mckay Twombiy, James
Stillman, president of the National CITY
Bank; James E. Borne. vice president Of
the Trust Company Of America; Otto T.
Binnard, president of the New York Trust
Company; E. C. Converse, president of
the Bankers Trust Company; A. Foster ,
Higgins, the newly elected president of /
the Knickerbocker Trust Company, and {
many others. Mr., Borne and Mr.. Bin
nard called as members Of a committee
from the conference Of trust company
officers. Mr.. Higgins was there to see J
Il he could not be secured for the Knick- s
erbOcker Trust Company. II
Mr.. MorBan's Statement. t
A number Of plans were under dis 4
oussion, so George W. Perkins said; but
nothing had taken definite shape when >
The conference broke up for the day. On ,
eaving his Office, Mr.. Morgan said: c
We are doing everything we can. as {
last as we can; but nothing has vet J
,rystaIized. T
1t was said by bankers in touch with the
consultations that attempts to uphold
he Knickerbocker Trust Company were T
early in the day. A committee h
If trust company officers, representing I
hose companies which had agreed the
hight before TO lend aid 10 the Knicker-
'Ocker, according to a statement made I
~ a Knickerbocker director, put exam S
Continued on Page 3, Coklmn 4.
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