The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-22
STILL NERVOUS.
New York Financial Circles Con.
tinue Disturbed.
The Trouble Now Is With the
Trust Companies.
MORGAN TURNS OUT.
MORGAN TURNS OUT
Meeting Which Lasted
Nearly ALI Night.
A Separate Clearing House Has
Been Provided For.

| NeW IOfk, OCT. Zz.-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 situa-
ton. The feeling of relief and salts
faction with which these men began
| the transaction of business yesterday
was succeeded by considerable nervous
| ness today as result of the develop
ments concerning the Knickerbocker
| Trust company.
The news printed today that the Ma
| t1onal Bank of Commerce yesterday
| gave notice that it would decline any
| longer to act as clearing house agent
for the Knickerbocker Trust company
and the resignation of Charles T. Bar
ney OF the presidency of the latter in
st1tut1on served to unSettle sentiment
more than the Morse Heinze develop
| ments of last wek. The magnitude of
business transacted by the Knicker-
| booker Trust company, with it's deposits
| amounting to more than $50, ,0OO, ,000
gave much more serious aspect to
the changes made in it's anagement
| 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 o'clock this
morning Among those present were J.
Pierpont Morgan and his partners, G.
Morgan taking leading part in the
discussion.
Three separate meetings were held,
one of the directors of the Knicker-
booker Trust company, a second of the
trust cOmpany'S association and third
of the bankers and financiers generally
to consider what was best to be done.
When the meetings broke up the fol-
lowing statement was given out by
committee of the directors of the
kn1ckerbocker Trust company:
Committees Statement.
''In view of the fact that Mr.. Bar
ney'S outside 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 companions, he has de-
cided that the best interests of the
company would be served by his re-
signation, although he had no loans
with the Knickerbocker Trust COM
pany. 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 Knickerbocker
Trust company. In view of the fact
that the Knickerbocker will hereafter
clear by. itself 1t was deemed aole
to obtain guarantees of additional
cash should it be needed. These guar
antees have been obtained and the
Knickerbocker will be amply prepared
to meet emergencies that may grow
out of a change in the method OF
clearing The Knickerbocker has In
it's own vaults $8,000,000 in cash. II
more cash is needed 1T Will be 1mme-
diately forthcoming under the guaran-
tees. The meeting of the trust COM
pany presidents was largely for the
purpose of outlining a plan for
clearing house of trust companies,
similar to the clearing house of banks
This will enable all trust companies
to stand together as the banks are
standing together
II brokers' offices in London quota
tions on American shares We're anx-
ioTsIv awaited When received they
showed sharp declines from yester-
davis prices At 1 p. m. in London,
American stocks showed the follow
" Amalgamated Copper Y. AAtchison
25S, Southern Pacific 2 y, Union Pa
cifc sss. United States Steel 1 II.
Banks Arc All Right.
"New York city banks are all right.
If there was any danger 1t has
passed, and other state officials and
myself charged with the CUSTODY or
the public moneys feel confident that
the large sum the state has on de-
post in New York city is safe"
This statement was made by Martin
H. Glynn, controller OF the state, con-
cerning the local financial situation.
''The situation is improving every
dav-" said the controller. "Imme-
diatelv on hearing the first rumors
that the New York clearing house
deemed it necessary to take the radi-
cal action it has taken to force certain
hanks to put themselves in sounder
condition it became our duty to CO.
operate with it's committee and we
have done so with the best results.
our responsibility was great, as the
state never had so much money on
hand as now. Counting the general
fund the canal fund, that of the in
heritance tax, the forest preserve
money and all the smaller sums, we
have in charge as officials about VS.
OOO. 600 deposited in state repositories
Ali over the state, about $9,000,000
being in institutions in this city.
"It is true the state is safeguarded
nv surety companies which bond all
state repositories far beyond the
amount of the state money deposited
with them, so the danger Of loss of
public money through bank troubles
is not very great.
the officials suggest that they might
withdraw any of the state funds of
the city but it is said there was some |
shifting of deposits by unanimous
agreement on the first days report by
the bank examiners. This also was
done with the approval of the MEM |
hers of the clearing house committee.
RUN ON THE KNICKERBOCKER.
Long Line of Depositors at All the
Company's Offices.
New York Oct. 22.-There was a |
run of depositors to withdraw money |
- he fol -