The news-democrat. (Providence, R.I.) 1906-1909, 1907-10-23

| the Knickerbocker Trust company todaV
indicated the alarm felt by the public. A
line M $50 persons extended for alrnose
block from the main Office alonr stth
In the corridor that the officials had de-
cided to make no payments today. About
100 OF the depositors departed but at least
30 still waited In iine
There were 400 depositors waiting at the
Harlem branch of the Knickerbocker and
1000 spectators watching them when the
news came that there would be no nay
ments- A state bank examiner had sitff1-
Guilty In getting into the Office
STATE IN CHARGE
The clearing house committee was In
conference with several bankers at 80
After taking charge OF the Knickerbocker
Trust company Acting Superintendent on
Banks Skinner said:
Under adv'~e OF the attorney general.
I have taken possession OF the Knicker-
booker Trust company and its branch Of
fees. The support to the institution which
was expected yesterday has not been fur
nished. A bank examiner is in charge OF
each office. Payments will be received on
obligations due to the trust company but
no payment will be made by the exam
iner in charge Payments should be in
cash. Collateral will not be surrendered
until IL is shown that II is not pledged for
Fifteen bank examiners sent out this
morning throughout the city reported at II
o'clock that there had been nothing In
the nature OF a run on any financial In
stitution except the Trust Company OF
America and that conditions at all other
banks and trust companies were normal.
A report was started that there was q
run upon the Morton Trust company, bur
an investigation showed II to be untrue.
N ad arr sa tat i've rln
has just come from there. reports that
three depositors we're then in the trust
company at the moment. A thorough ex-
animation OF the trust company's finances
made in the last "A hours shows that 1t
has over 20 per cent cash meanr
J. p. MORGAN ACTS.
Several prominent bankers called on
Secretary Cortelyou at the sub-treasury to
receive suggestions.
Mr.. J. Pierpont Morgan has practically
assumed command in financial circles In
New York today. He is striving to bring
order out of chaos. and see what can be
done to protect the large interests that
are now in jeopardy. Up to this time there
has been no organization among the trust
company officers. and Mr.. Morgan and
James Stillman of the National City bank
are earnestly engaged In an effort to
bring about cooperation among these in
sttutions.
There will be very careful scrutiny OF
the reserves of each of these institutionss
and II IL is found that the management OF
any institution under suspicion has been
sufficiently conservative to warrant rem
dering assistance, that assistance will be
forthcoming.
HEAVY SACRIFICES. A
Forced liquidation at heavy sacrifices In
individual stocks caused renewed confu-
sion. Westinghouse Electric. which Is q
speciality of the Fittsbrg stock exchange.
dropped 1874, and General Electric fell 61z.
to par. New York Air Brake declined Is.
Reading then fell 2%. burt the general
list did not fall lower than the opening.
Business was not on large scale. but
the tone was very feverish.
When IL became known that a number
of prominent banking houses were lend
ing money on call at the stock exchange
at six per cent, the market became
uuieter and a substantial recovery en-
sued Several stocks rose to last night 3
level or above. There were sales of some
inactive stocks at wide declines
william X. Vanderbilt, Jr., conferred
with President Thorne Of the Trust Com
pany of America today. Mr.. Vanderbilt
said:
"I see nothing to be alarmed about In
this situation"
Examiners from j. p. Morgan IL CO..
and the clearing house were going over
the accounts of the trust company. ON
Continued on Page Two)