The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-10-29
HAL rs MONEY PANIC
Great Bank Pool Is Formed to
Aid Solvent Institutions.
CoRTELY0U GIVES S25, 100000

Secretary of Treasury Helps New York
Financial Situation by Ordering De-
posts There to Meet Emergencies.
Rockefeller Would Help
New York, oct 90 Credit, the under
the surface Foundation Of all business,
tremhled for time, and before conf
dence could be restored New York's
second largest financial institution had
emptied its cash vaults under pressure
of biggest run experienced here in
n generation, the banking firm of May
or a. Co. II Wall street, had failed for
$6,000.000, Wall streets principal secu-
rites had settled from So TO IS a
share, call money had risen to 10 per
cent and local bankers, unable to stem
the tide of distrust, had been forced to
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 S44444 a min
ute for three hours and then closed its
doors The directors had, as they
thought, fully prepared for run and
caused to be announced that $S000000
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 IN 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 SS000600
lasted only short time. Then Vice
President Joseph. 7. Brown announced
that the bank had no more cash avail
able. and payments We're suspended
After very prolonged confer
ence at J. r. Morgan's office an organ
ization of the presidents of the New
York trust companies was effected. not
different in principle from the Clear
ing House association. 1t was in the
nature of protective combination.
All Of the leading and admittedly con.
servative trust companies participated.
John a. Stewart. chairman of the
board of the United States Trust com
pany, presided and was elected chair,
man of 4 committee whose duties are
TO be analogous to those of the clear
ing house committee. A resolution was
unanimously adopted providing for an
examination of the various trust com
panies ana n report Of their finds and
recommendations to the association.
$25, 100000 From cortelyou.
Following This organization. which
was regarded as one of the most inn
pol4ant adjustments ever successfully
carried through in New York financial
circles, Il report was made by the com
mittee respecting the Investigation in
TO the affairs of the Trust Company Of
America. This report was very care
fully considered in a prolonged confer
ence of the committee, and it was APP
parent that the trust company had
ample securities to warrant continued
advances. AS result the committee
representing all Of the trust companies
of New York unanimously agreed to
come to the mid of the Trust Company
Of America by providing such funds
as it needs There is no reason to
doubt therefore, that the Trust Com
pany of America will be able to meet
all demands made upon it,
At the same time and even more i'm.
portant the secretary of the treasury,
having satisfied himself as to the con
dition of the New York banks, au-
fhorized an announcement that he had
directed that government deposits be
placed In the banks of the city to the
extent of S25,0O0O00
John d, Rockefeller announced that
he would cooperate with other leading
iinancers in meeting what he believed
to be a temporary banking crisis, and
the coneensus of opinion among finan-
ciers was that the crisis has been safe
ly passed.
Westinghouse Goes to the Wall.
Suffering from overprosperity and
a tight money market" as one of its
officers expressed it, four Westlng-
house companies, involving S69,O00,O0O
capital and operating a string of plants
in the United States, Canada England,
France. Germany and Russia went to
the wall These four corporations are
the Westinghouse Electric and Manu-
featuring company the Westinghouse
Machine company, the Nernst Lamp
company and the Security Investment
company of Pittsburg. The Pittsburg
stock exchange closed promptly when
Informed Of the situation by the Pitts
burg clearing house. This action was
taken for the purpose of preventing
nh unnecessary sacrifice of values by
a heavy liquidation of stocks.
Savings Banks Take Action.
Recognizing the wholly unreasonlng
attitude which certain class-largely
foreign-of their depositors might
take the savings institutions OF the
city decided to take advantage Of the
law which permits them to require
from sixty TO ninety days notice from
depositors intending TO withdraw ac-
counts The enforcement OF this rule
against individual deposits will be left.
however. in the discretion of each
bank, and ii will probably not be ap-
piled where depositors wish to with.
draw $10a or less, the idea being to
continue to provide promptly for the
needs Of small depositors while pro
tecting these and the repositories Of
the savings banks from Wholesale
Withdrawals Of the larger accounts.
Indications on every hand today
pointed to a complete renewal of con-
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