The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-25
MORGAN, ROCKEFELLER
! AND FEDERAL TREASURY
lions Poured Into Wall Street Stock Ex'
) change and Brokers Saved From
Ruinous Panic.
Trust Companies All Stand the Srain-Three Small State
Banks Compelled to Close.

New York. Oct 2-As q result OF to-
days developments in the financial world
there is every indication that the Crisis
in the banking and trust company situa-
ton has been safely passed. The Trust
Company of America, all through the
days banking hours. paid out money 70
deDositors as rapidly as possible ana
closed today with all demands having
been met.
A very favorable feature of the situa-
ton respecting this company was tnat IL
was able to make its payments with very
little assistance and anotner va ma a. t t
company received over its counters IN tne
morning hours, In ordinary deposits, more
than 100000.
Three State Banks Closed.
The day was marked by these note
First and earliest in the day, came
the announcement of trouble IN three MI
nor state banks, in Harlem-the Hamll,
Zion bank the Twelfth Ward bank ana
the Empire City Savings bank 1hese
banks transacted only nelghoorhoou
business and their suspension of payment
was absolutely without significance as
bearing on the general situation. state
Bank Examiner Judson declared TINS al,
ternoon that all three were solvent ailo
that their depOsitOTs would lose nothlng'
The second episode was a run begun
upon the Lincoln Trust company. Al the
close of the day the company oIticiais
announced that they were fully aDle 10
meet all obligations.
Bv far the most notable even dramatic
episode of the day was the emptylhe OF
money into the stock exchange through
pool headed by ]. P. Morgan and other
financiers in order to avert rutnless
selling out of stocks held by brokers,
which was threatened because OF tnelr
inability TO obtain renewals or loans oii
which these stocks had been carried.
Usurers Withdrew Their Money.
remarkable condition brought about
this extreme stringency. Certain large
interests of great financial resources had
been charging recently what was IN 81
feet If not legally, usurlous rates Oh IN
terest on call loans; one INSTITUTION una. tnds
had been engaged in this practice. itself
a member of the clearing house. was CRIT
icized by other banks for its action, on
the ground that this added an unneces-
sary complication and strain on the mon
eV situation. AS a result OF the CRITICISMS
this institution withdrew its support ana
declined to offer money at can on the
stock exchange. The effect OF this run
the rate for money up to 100 per cent.
and when that figure was quoted an ex-
tremely sharp decline resulted IN the
stock market. Union Pacific IL per
cent stock. sold down to par
Pool Formed by Morgan.
At the time the excitement was at its
height. the announcement was mage ma
a pool had been formed with j. +. Nor
gan at its head. to come to the rescue OF
fine brokers, for it was necessary TO pro-
vide funds at once in order that tney
might carry stocks they were hoiulHs AOi
their customers.
The effect of the relief measures was IN
stantaneous and the rate for call money
dropped from 100 per cent TO 10 per cent
When the stock exchange closed, every
one was getting all the money he wanted
The close was marked by a memorable
scene in which the brokers gathered
around the principal trading posts and
lave three cheers for ]. p. Morgan and
the members of the pool which had saved
the day.
The aggregate amount of money which
had been contributed to weather the storm
and restore confidence assumes really
colossal proportions. Roughly estimated.
II includes $25.000000 which Secretary Cor
teIvou deposited in the New York banks;
SIS 600 900 which the Morgan pool brought
10 the floor; SlO0OO0O0 which John D.
Rockefeller deposited with the Union
Trust company, and finally another $50
C0OO00 which, it is understood, Mr.. Rookie
Teller stood ready to advance to meet any
further stress of eonditiOns-in all consid-
erably in excess of $1OOO0O.OO0.
At / o'clock this morning Clark Will
liams the newly appointed state superin-
tendent of banks. made public the fol-
lowing statement:
$50 far as I have been able to learn
during the short time which / have had
TO examine into the situation, i find that
all the banks under my supervision in
this city are solvent and it will be only
because of rash and unreasonable de-
mands on the part of the depositors that
will further endanger the situation"
Plans for Knickerboeker.
The developments of the evening in
cluded the Issuance by State Comptroller
Martin H. Glynn of statement on the
local financial situation and the an
nouneement of plans for the rehabilita-
tion of the suspended Knickerbocker
Trust company. The tentative plans for
the Knickerbocker. as outlined by one
OF the officials during a meeting of the
hoard of directors late today. provides
for the formation among the directorate of
pooI of some $5.000000 to guarantee the
reclamation of the Understanding GER
tlficates which will he offered in settle
ment of accounts against the company
which cannot be liquidated at the present
. time. As a preliminary step 1t was said
y that a receiver for the company would
he appointed within couple or DAYS. with
the approval of the directors. When the
success of the certificate issue Is assured.
the board will ask that the receivership
he terminated with view to resumption
Of business. President A +. Higgins has
offered to put $4,000 into the pool.