Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1907-10-22
II COULD NOT SECURE
CURRENCY FAST
ENOUGH
KniCkerb0Cker Trust Company
In New York Obliged
To Temporarily
Suspend.
OUTSIDE CITIES
ARE NOT AFFECTED
Wall Street Badly Scared BY Biq
Slump In Many Stocks and On
Account Of General Sit
udtiOn But Soon
Recovered.

new 1Otk, OCT. EE.-The hnick-
erbocker Trust company, on which a
run started this morning, owing to
of C. r. Barney as president of the
Commerce to act as clearing house
agent for 1t, and to the resignation
Of Charles Il, Barney as president OF
trust company stopped paying de-
positors at 1880, the statement being
made that the company could moi
obtain currency rapidly enough to
The company declared that its
suspension is only temporary and
that 1t will soon be open as 1t is
solvent.
This concern did general trust
company business, financing rail-
roads and other like institutions
and was not engaged in the general
banking business.
At 1885 there was another violent
slump on Wall street Union Pacific
selling at 1:10, a loss of IN, and
other stocks with nearly as great a
loss. At that hour call money was
at so per cent.
Effect Purely Local.
Washington, ID. c., Oct. 12-Dis-
San Francisco and other large cities
say that the panic in Wall street,
New York, has not affected the
situation in those cities.
Excitement ON Wall Street.
Excitement amounting almost to
alarm marked the opening of bust
ness today in Wall street, The stock
market opened d,ymoralized under
heavy selling by brokers in all de-
partments of the exchange and q
run of considerable proportions was
the Knickerbocker Trust company.
At the main office on Fifth avenue
and 34th street, more than $50 per-
sons were in line at 1890 and line
of carriages in waiting extended
more than. block.
The stock markets opening
showed severely the effect of the re-
newed shock to confidence caused by
the spread of financial distrust by
the published details of the affairs
of the Knickerbocker Trust COM
pany Prices broke widely IN open
ing transactions under this outpour-
ing of stocks, but almost Immediate
ly rallied.
The rebound approximated from
one-fourth to one-half of the first
break. This was followed by a sec
ond break which in turn was sue
ceeded by good rally, the decline
having been arrested before the pre-
vious low records were broken
through. With this demonstration
of effectiveness of the support for
the market, somewhat more tran
quill feeling ensued.
Nervousness Apparent.
Bankers, brokers and business men
generally came down to their offices
early today to prepare for whatever
further Developments there might be
in the financial situation. There
was considerable nervousness as
result of the developments concern
ing the Knickerbocker Trust COM
pany. The news printed today that
the National Bank of Commerce
yesterday gave notice that it would
decline longer to act as clearing
house agent for the Knickerbocker
Trust company and the resignation
of Charles T. Barney as president
of the trust company, served to un-
settle the sentiment more than the
Morse-Heinze developments OF last
week.
Financfers Confer.
transacted by the KnickerbOcker
Trust company, with deposits
to more than sixty mill
lion dollars, gave a much more seri-
Gus aspect to the changes made in
its management than did the changes
in the relatively smaller Morse
Heinze concern. The announcement
VI Iodl llfg = ANel ElldAlOll w d1 lOllOMth
by a series Of conferences of finan-
cial men which continued until
o'clock this morning Among those
present were j. Pierpont Morgan
and his partners.
Their Statement.
After these meetings a statement
was given out by the directors of
the Knickerbocker Trust company to
the effect that it had been decided
in view of Barney's relations with
the Morse -Heinze Interests, that all
interests would be best served by
his resignation as president and d.
rector, also as director of the Bank
Df Commerce; that as the Knicker-
booker Trust company will hereaf-
ter clear by itself, guarantees Of ad-
ditiOnal cash, should II be needed
have been obtained. and the Knick-
erbocker viii be amply prepared to
meet emergencies that may grow
out Of the change in the method Of
clearing; that the Knickerbocker has
more than eight million dollars cash
In its vaults, and that the meeting
)f the trust company presidents last
night was largely for the purpose Of
a. L.