The Morris County chronicle., 1907-10-22
NEW YORK CLEARING HOUSE
PROTECTS DEPOSITORS
Bankers Say Their Drastic Action
viii Prove Beneficial.
INSTITUTIONS FOUND SOLVENT
Committee Announced That the
Heinze, Morse and Thomas In
terests Had Been Eliminated
From the Organizations.

New York City victory alb
solute. unconditional and relentless
the Clearing House Committee elm
mated from the banking business of
New York City Charles w. Morse, e.
r. Thomas, o. F. Thomas and F.. Au-
gustus Heinze. changed the presi-
dents of four institutions and then
pledged the aid of their association
to all the members during any crisis
that may arise.
Accompanying this pledge was a
clean bill of health for all banks that
have been examined, and the intima-
tion that all others mentioned in the
last week will be found solvent.
The action of the committee was
regarded as most effective and so inn
proved the general situation that it
was believed there need not be sim
gle failure, suspension or liquidation
for the present. The statement of the
committee follows:
"a committee of the Clearing
House has examined the several
banks of the association that have
been under criticism and find them
solvent The Clearing House Com
mittee have decided to render them
such assistance to meet their deposits
as the committee may think neces-
sary.
The effect of this statement was
summed up by J. Edward Simmons,
president of the Fourth National
Bank, and in point Of service one of
the Oldest members of the Clearing
House Committee. Said Mr.. Sim
mons:
THE action of the Clearing House
Committee to-day in sustaining the
three banks under criticism ought to
reassure the public sufficiently and
allay any further anxiety whatever"
The plan under which the Clearing
House determined, instead of allow
ing the Thomas-M Morse Heinze COM
bination to go under, to go to
their assistance was thought of
when the committee was hold
ing frequent conference with the
four men mentioned 1t was put
forth as the only alternative, and
was in this way very tersely stated
by the committee:
"Get out of the business, or you
must look after yourselves.
1t was frankly admitted that not
one of the institutions or the men
themselves could withstand the run
that would follow such decision, and
the four men agreed to part with
their holdings to whoever would be
acceptable to the Clearing House
men.
Charles W. Morse and the other
men mentioned wrote their resigna-
tions as directors and officers of a
score or more of banks and promised
to place their stock with the commit
tee to be sold. In this there was
slight hitch, for it was found that all
four had at that time hypothecated
their stock for loans and the shares
would not be available Immediately.
e. r. Thomas, at later meeting,
drew up his resignation as president
and director of the Hamilton Bank, as
director of the Consolidated National
Bank, as vice-president and director
Of the Mechanics and Traders and
the Mercantile National, and offered
to withdraw from the Bowling Green
Trust Company and the Hudson Trust
Company
o. F. Thomas rendered his resigna-
tion as a director of the Bank of Dis
count and Consolidated National. of
which he was president as we'll as
director; the Hamilton Bank, the
Mercantile National and offered to
withdraw from the Hudson Trust
Company
The designations of Heinze had al
ready been obtained and were added
to the pile. They were from the Con-
solidated National, the Mechanics
and Traders and the Mercantile.