The evening world., 1911-01-10
Didn't Risk 4 Cent and His
Equitable Trust Absorbs
Madison Institution.
GOLD Is UNTOUCHED.
Big Packages Sent to Avert
Run Are Not Even
Opened.

~ edNlnE the NaulSOn trust COrn-
'any. the Nineteenth Ward Bank and
pc Twelfth Ward Bank from going
3 the wall by the mere lending OF his
name to these Institutions Mr.. Morgan
has added about $50. OoO,O oO to the ten
Billions of dollars he already has under
his control. and at the same time OBJ
tained possession ~virtuarY of the Madi-
son Trust Company.
1t was learned to-day that the house
of Morgan did not put up so much as
a cent. because after the publication
yesterday that Morgan had come to the
rescue of the banks and trust COM
pany the institutions threatened were
able to meet the demands made on
them from their own resources.
Although money was sent 20 all the
banks to be on hand in case 1t was
needed, the big packages OF gold and
currency were not even opened.
Bound to Avert Panic.
Business men and the public gener-
ally interpreted MorGan's Intervention
60 mean that powerful financial inter-
ests had determined there should be
no repetition OF the monetary panic OF
1907, and that any bank which might
be In trouble would he supported. That.
practically, is the situation. 1t is said.
and although stockholders may have
TO pay dearly. the depositors Will be
protected.
In addition to being willing to drive
a good bargain the Morgan interests.
It Is asserted. do not desire any finan-
cial disturbance at this time. causing,
as 1t would, the securities held by the
various banks to be thrown on the
stock market and reducing the prices
there they have been SO anxious TO
maintain.
The Carnegie Trust Company synd.-
cate paid 1915 a share for the Van Nor
den holdings In the Madison Trust COM
pany. Mr.. Morgan has agreed to take
them over. it is understood at book or
liquidation value. which II Is IA
will be- abou slSi a share.
Got a Bargain Rate.
According to Wall street information
the Madison rus Company was VIZ
tuauy forced into the Morgan arms. II
was SAID that the Morgan interests FOR
q long time had been determined to
eliminate the Carnegie Trust Company
ana obtain control OF tho Madison, the
majority Of the stock Of which wal
held by. q syndicate Of Carnegie direc-
tors.
In support of his n remark said to
have been made by Joseph T. Howell
President of the Carnegie Company,
. ga. .,.,t.t A,,,-y.,v q, this M. IlAN-
ell had said tina. the Sudden c,uslGs Of
his company by the state Banking De-
partment had been an outrage. Whether
or not Mr.. Howell made this remark
the sentiment attributed TO him was
held by many OF his directors.
THE company Is absolutely solvent
and will pay dollar for dollar" said
former Judge Keener, one OF its d.
rectors.
Forced TO Co to Morgan?
How, then, do you explain the action
of the state Banking Department.
he was asked.
THAT is for them t say" he replied
with a shrug.
To continue the Wall street story
the Nineteenth and Twelfth WARD
hanks were forced by the State Bank
ing Department. to 80 10 the Norgani
for aid. The Ninetseuth Ward, II
was said, had about IS por cent. OF
its deposits in actual cash. ana about
81, 800, 900 in commercial paper &c
good that it could Aavo been sold
anywhere. The state thanking Depart
I msnt, 1t was asserted, declined to give
the management tinlo to sell this mi
d Informed tho bank that it would taxi
possession on Monday morning II ths
institution had not by that time OBJ
taiuod the support Of strong banking
Inter ests.
4, The only persons the Nineteenth
Ward could go to in such an emergency
were the Morgans. It was said, an'
the merger agreement between The
Madison Trust Company and Morgan''
Equitable Trust Company was thu
price.
Bradley Martin Jr. Denies IL.
When this story was told to Bradle.
Martin jr, President OF the Nineteenti
Ward Bank. he said: ,
1T is true we had ahouI 80 per cent
of our deposits In cash In the bank OF
saturday. and a sufficient amount q
gilt-edged commercial paper on which
within rorty-cight hours, we coul'
have realized so per cent, Of our de
rosits, but we were not forced into Tn
arms Of Morgan. We won't thore VOL
UNFAIRLY, and as a matter OF 'act WI
were glad to get there.
The state Banking Department hat
objected to some of the paper we held
but we could not get time to realize OF
our commercial collateral. We felt tina
through the association OF certain OF tn
Carnegie Trust C~ompany's director
with our hanks we might have to stan
a severe run on Monday. We also kney
that we had no strong bank backing
and without the support OF other bank
no bank can meet a severe run on II
no matter now strong II may be, unles
It has the actual cash in It's possession
OF course bankers do not keep all the!
deposits in their vaults or they coul
not conduct a bank.
As to Trust Company.