New-York tribune., 1907-11-15
B1RNEY And THE PANIC
HIS Resignation Brought on the
Knickerbocker Run.

Il was the resignation OF Charles r Barney from
the presidency Of the Knickerbocker Trust Com
pany, on October p, which was largely instTu-
mental in bringing about the recent banking crisis
in New York Mr.. Barney. who had been home
from Europe only short time, resigned the pres-
dency at special meeting of the board Of direc-
tors, which hastily called after tho National
Bank Of Commerce had sent out notice that It
would no longer act clearing agent for the
Knckerbocker Trus' Company The next day.
Tuesday. October %, the company closed its doors
shortly after noon having paid out all its available
cash-nearly 100000,
The meeting of directors at which Mr.. Barney
resigned was held on Monday night at Sherry's.
and when It broHe up at O'clock Tuesday
morning statement. considered somewhat IN
usual by bankers, given out TO the press II
said, in part:
In view Of the fact that Mr.. Barney's position
and, although he had no loans with the knicker-
booker Trust C9npnny yet because or ms ,seo asso
companies. It was deemed advisable at a meeting
panv Tonight that he should resign as president
Of the conlpa,y.
The statement also went on TO say that other
trust companies had guaranteed fund OF So
000o0O 10 assist the Kuickcrbocker and that ad-
dit!onal S. .0OD.o90 would be forthcoming II needed
It stated that the company had $4,000 IN
cash IN its vaults. and that 1t would be amply pre-
pared 10 meet any eXgoncies that may arise out
Of the change in methods or clearing" 1t also
announced that A. Foster Higgins had been elected
president TO succeed Mr.. Barney.
In view Of such startling changes and announce
ments it not considered strange that there was
Il big run on all the offices OF the knclterboeker
Tuesday morning The company paid out nearly
$4,000, 900 by noon. including some $1,000 900 due
the National Bank OF Commerce for clearings. and
then when aid not forthcoming. closed It's
doors. Announcement was made that payment
would he resumed the day providing the cash
which had been reported pledged were turned over
to the company. No cash forthcoming, how
eyer. and Wednesday the State Banking Depart
merit, through George l. skinner, acting supcril-
tendeut, took charge OF the company.
On the following day, Thursday. October 81, tho
directors OF the KnickerbocScr met and appointed
two comnlttces-Onc on securities and the other
on recevership-aud began 70 consider plans where
by the company might soon resume business. These
plans are still under consideration. and 10 date no
definite announcement or plan has been given out
The next day. Friday. October %. on tho app-
cation of Attorney General Jackson, Justice Clark
sitting in the Supreme Court st. George. Staten
Island, appointed OTTO T. Barnard president OF the
New York Trust Company; Ernst Thalmann,
senior member of the banking firm Of Ladenburs
Thalmann & Co. and Henry c. Ide. the first Gov
ernor of the Philippines temporary receivers Of the
KnicSerboclcer Trust Company. On November >
Justice Clark continued the temporary receIvership
until November 80 when motion will be made TO
have the Teceivership made permanent Mr. Ban
nard found Il impossible 70 a receiver on
account of business. and George L. Rives was
named in his place
Since the company has been closed several com
mittees OF depostors have been formed The most
prominent of these the organizations headed by
Samuel Untermyer and Herbert L. SatterIee re-
spectivey. They working plans TO rehab-
tate the company, but nothing of moment has been
accomplished to date.