Connecticut western news., 1907-10-24
CORTELYOU GIVES AID
Secretary Hastens to the Rescue
 of New York Banks.
WALL STREET DEMORALIZED
knickerbocker Trust Company, After Paying Out ss,ooo,ooo, suspends, and Call Money Jumps to Panic Prices May Go Into Hands of Receiver.

Paying Out ss,ooo,o0o, suspends, and
 May Go Into Hands of Receiver.
 New York, Oct. 23.-Credit, the under the surface foundation of all business trembled for a time, and before confi- dence could be restored New YOrk's second largest financial institution had emptied it's cash vaults under pressure of biggest run experienced here in a generation, the banking firm of May CT So Co.,, II Wall street, had failed for $6,OOOOOO, Wall streets principal secu- rites had settled from $5 to $S a share, call money had risen to 70 per cent and local bankers, unable to stem the tide of distrust, had been forced tc appeal for relief to the secretary of the treasury at Washington.
 The Knickerbocker Trust company, the storm center, paid out cash to de. positors at the rate of $44 ,444 min ute for three hours and then closed it's doors. The directors had, as they thought, fully prepared for run and caused to be announced that $S,O0OOOO in cash was on hand to meet all event ualities.
 Fail to Stop Run.
 At an early hour a few depositors withdrew their accounts, and an hour later hundreds were in line to take out their deposits at the main offices at Thirty fourth street and Fifth avenue and at the Harlem, the Bronx and the down town branches. The $8,OO0,GOO lasted only a short time. Then Vice President Jose ph T. Brown announced that the bank had no more cash avail able, and payments were suspended. The Knickerbocker, it was announced, had ample securities to meet all de- mands, was perfectly solvent, and it was only a question of raising the cash when all depositors who wished to withdraw could do so.
 Subsequently desperate efforts were being made by the officials of the Knickerbocker to get in their loans vaults. Acting State Superintendent of Banks George l.. Skinner, who throughout the day had expressed con- fidence that the bank would meet all obligations, qualified his position when he issued the following statement:
 Having received no positive assur- ance of help from the Knickerbocker attorney general, telling him that, while it's affairs were not hopeless, they were in so critical a condition that I thought he should be prepared to act at any time"
 CorteIyou to the Rescue.
 Later Attorney General Jackson came to this city and had a long con- ference with MT. Skinner and repre- sentatives of the Knickerbocker Trust company and other banks. Secretary Cortelyou came from Washington aft CT directing that $6,OOO,OOO be deposit ed with New York banks as soon as the necessary collateral had been fur nished.
 MT. Cortelyou went to the Manhat- tan hotel, where he conferred with J Pierpont Morgan, George W. Perkins A. B. Hepburn, George F. Baker and other bankers. MT. Cortelyou did much to put a better face on things and it was predicted that the secre tary's visit would result in further de posits here of $15,000,00O. The Knick erbocker Trust company will likely gc into the hands of receiver today. The directors decided to apply to the courts to liqdidate the company. Should they change their minds Attorney Genera Jackson, it is said, will take the neces sary steps.
 Gall Money Scars.
 Following the suspension of payment by the Knickerbocker Trust company the following statement was given out t'The examination of the Knickerbock e.. Trust company was made by state bank examiners on Sept. H. Their re port showed that the Knickerbockel Trust company had on hand on tha date good assets to the amount of $6S. 884, ,522, with liabilities of $63, ,7O1 ,531 surplus, $5,1S2 ,990." .ser
 The stock market opened weak or the announcement that President Bar aey of the KnickerbOcker Trust com pany had been deposed and went t pieces when the news came that tn, company had stopped payment. Mon ey on call opened at 10 per cent promptly went to 15 and at noon wal quoted at 50. A loan of $2O0,0O0 wa made on the stock exchange shortl. after ? o'clock at 70 per cent. Severa bankers formed a pool of $4OOO,OOO which was loaned at between 40 ant 50 per cent.
 Shrinkage in values of shares of tn Delaware and Hudson railroad is sait to be responsible for the failure O Mayer & Go. .s
 RingIing Bros. Buy Barnum Show.