Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1907-10-25
BIG TRUST COMPANY
CLOSES IT'S DOORS.
KNICKERBOCKER HAS NOT ENOUGH
CURRENCY TO SUPPLY IMME-
date DEMAND.
BANK DECLARED SOLVENT.
Wall Street Market Almost in Alarm Re-
fleets New Shock to Financial
Confidence.

came to a head at 1870 o'clock today
when the Knickerbocker Trust company
suspended payments of deposits during
a run on the main and branch offices of
the company.
The institution is declared to be SOL
vent and the reason of the suspension
was due to the inability of officials to
secure ready currency.
Second Vice President Brown said:
''The trust company finds that it will be
impossible to pay any more checks to-
day on account of the company's inabil-
ity to get sufficient currency. The trust
company is perfectly solvent and may
resume payment tomorrow"
Cortelyou to Rescue.
No other banks are affected and dis
patches from all parts of the country are
to the effect that disturbance was not
noticeable. This was true in dispatches
from the middle west, particularly.
Secretary of the Treasury Cortelyou is
expected to come to the relief with So
100000, although he refuses to commit
himself on his policy,
Depositors in a Clamor.
The closing of the doors of the institu-
ton was attended with sensational scenes
at it's main banking room and the 1ar-
lem branch DepositOrs who crowded
the rooms clamoring for their money
We're insistent that they be permitted to
withdraw even a few dollars and when
this request was refused many refused
to leave the building. Police assistance
was necessary to preserve order. At
the main office, Fifth avenue and Thirty
fourth street, after the doors were
closed the crowd surged it's way inward.
The police forced them back to the
street again, and from that time a guard
was kept in front of the entrance.
Wall Street Shaken.
The only place where the suspension
made itself felt violently was in the
stock exchange, where prices move up
and down with the slightest shift in
| financial minds. Here there was a wild
some of the leading gilt-edged securities
suffered severely. Call money went
up to 70 per cent. Standard Oil sold in
the curb market as low as 1881. This
is 1919 points below yesterdays last price
and is tie lowest figure reached in sever.
al years. Bords of the Consolidated
Steamship company, controlled by G. w.
Morse showed extreme weakness. NOrtn-
ern Pacific was carried down S1S, Read
ing 734, Union Pacific ~, st. Paul 612,
General Electric 7, Southern Pacific 6,
Manhattan 5I, Great Northern pfd and
Metropolitan Street railway 5, Canadian
Pacific and Atclison ~ and Pennsyl-
vania and Peoples Gas 3l@.
Only One Failure.
The failure of Mayor & Co. was an
nOunced on the stock exchange at 2:3O
this afternoon. Mayor Il Co. is not an
important firm. The members of the
firm are Marcus Mayor, George r. Les
lie and Abraham B. Baylis. Mayor has
been prominent as a specialist IN Della
ware & Hudson and was himself large
holder of that stock.
Form Pool of $4OOo,O0o.
A loan of 100000 was made on the
stock exchange shortly after 2 o'clock at
70 per cent. Several bankers formed
pool of 100000 which was loaned at
between 40 and so per cent.
Real Financial Shock.
Bankers, brokers and business men
generally came down TO their offices early
today. The feeling of relief and satisfac-
ton with which these men began the
transaction of business yesterday was
succeeded by early nervousness as re-
suit of the developments concerning the
knickerbocker company. The news made
public last night and printed i'll the news
papers today that the National Bank of
Commerce yesterday gave notice that it
would decline any longer to act as clear
inghouse agent for the KnickerbOcker
Charles I. Barney of the presidency Of
the latter institution served to unsettle
sentiment more than the MOrse-Helnze
developments of last week. The magnl-
tude of business transacted by the hnlck-
erbOcker Trust company with its de-
posts amounting to more than SOO,OOO-
600 gave a much more serious aspect to
the changes made in its management
than did the changes in the relatively
smaller MOrse-Heinze concern.
The announcement of Mr.. Barney's
resignation was followed by series of
conferences of financial men at Sherry's
which lasted until nearly 2 o'clock this
morning. Among those present at the
conferences were J. Pierpont Morgan
and his partners, George w. Perkins and
Charles Steele, Mr.. Morgan taking a
leading part in the discussion looking to
the improvement of the situation.
Directors Give Out Statement
Three separate meetings were held,
one of the directors of the Knickerbock-
er Trust company, second of the trust
companies associa ton, and a third of
bankers and tinanciers generally. When
the meetings broke up the following
statement was given out by a committee
of the directors of the Knickerbocker
Trust company:
In view of the fact that Mr.. Barney's out
side interests had become greatly extended,
and in view of his personal position in the
directorate of certain institutions recently
under criticism, in particular because Of
his position with Mr.. Morse and some of
Mr.. MorSe'S companies he has decided that
the best interests Of the company would
be served by his resignation, although he
had no loans with the Knickerbocker Trust
company. He has resigned as president of
the trust company and will resign as a
director. He also will resign as director
of the National Bank of Commerce, which
was the clearing house agent of the Knick-
crbocker Trust company. In view of the
fact that the Knickerbocker will hereafter
clear by itself it was deemed advisable to
obtain guarantees of additional cash should
it be needed. These guarantees have been
obtained and the Knickerbocker will be
amply prepared to meet any exigencies that
may grow out of change in the method of
clearing. The Knickerbocker has in its own
vaults today SS,00oOOo in cash. If more
coming under the guarantees. The meeting
of the trust company presidents was largely
for the purpose of outlining plan for.