New-York tribune., 1911-01-09
Puts Up Cash to Replace Assets Of 18th and
18th Ward Banks Condemned by Cheney,
and to Meet Any Possible Run To-day.
TRUST COMPANIES TO BE MERGED
EQUITABLE To Take Over Madison, Which, Van Norden.
Was To Be Merged with Closed Carnegie
Directors Of Carnegie Forced by Morgan
To Resign From Other Boards

7 going arrangements is that these threa
Institutions are in a sound condition.
Mr. Cheney had hardly finished die
tating his statement for the newspa pers
when Henry P. Davidson appeared from
the library, where the meeting was in
progress with the announcement that
he had a statement in behalf OF ]. p.
Morgan & Co. His statement follows:
At the time Of the failure Of the Carr
negie Trust Company certain members
OF it's board were also directors of the
Madison Trust Company. the Nineteenth
Ward Bank and the Twelfth Ward Bank.
Fearing that the announcement Of this
fact might lead some of the depostors
Of these institutions TO withdraw their
deposits, the Superintendent OF Banks
promptly took up the situation with
prominent banking interests. After n
conference held on Saturday and cons
tinued on Sunday. ]. p. Morgan s. CO.
authorize the following statement:
What J. P. Morgan & Co. Will Do. ,
Understanding thai arrangements
have been made for the absorption bv
merger Of the Madison Trust Company
by the Equitable Trust Company j. p.
Morgan & Co. have agreed 10 provide
financial assistance to the Nineteenth
Ward and Twelfth Ward banks
Alvin ". Krech president OF the Equi-
table Trust Company, confirmed Mr..
Cheney with the following annomcement
for his institution:
The Equitable Trust Company has
| .,-ftA tho nd HOLIDAYS n
over thirds OF the stock Of the Madi-
son Trust Company for the immediate
| merger of that company with the Equi-
table Trust Company, thus insuring the
payment Of the depositors by the conlbi-
nation of the companies, which viii be
conducted in the name Of the Equitable
Trust Company upon the completion OF
the merger proceedings. In the mean
time the business will be conducted by
the present officers under our supervi-
sion
A. Barton Hepburn, president OF ths
Chase National Bank and OF the Clear
ing House Association, made his stato-
ment as the representative OF the Clear-
) ing House. He said:
have been IN conference with promi-
nent bankers of this city and the people
interested in the Madison Trust Com
, pany, the Nineteenth Ward Bank and
the Twelfth Ward Bank, and also with
the Superintendent Of the Banking De
partment, o. II. Cheney. A very happy
solution OF possible complications has
been arrived az, for which the public Is
largely indebted to the very efficient
service of Bank Superintendent Cheney.
The Equitable Trust Company has an
,nounced that IL will absorb the Madison
Trust Company, thus assuring strong
and able management of the affairs OF
that institution and full and ample pro-
lection to its clientele.
Assets Replaced By Cash.
Certain of the assets of the Nineteenth
Ward Bank and the Twelfth Ward Bank.
TO which the Superintendent Of Banks
objected, have been replaced with
money, so that in his judgment those In
stitutions are solvent, and after a 5 COM
plete an investigation as we are able 10
make from the outside, am OF the opin-
ion that the depositors are safe aud that
the customers of the banks should con-
tinue their deposits and can CONTINUES
their business with safety Arrange
ments have been made with J. r. Morgan
& Co. to provide financial assistance to
the Nineteenth and Twelfth Ward banks.
The announcement Of the changes
about 10 be made in the boards OF di-
rectors OF the three institutions was
made in a statement that came from
Bradley Martin, tr, president Of tho
Nineteenth Ward Bank; Walter f.
French, president of the Twelfth Ward
Bank, and watkins Crockett. president
Of the Madison Trust Company Their
statement said
/ We are all very much pleased with
the arrangements made as announced
by the bankers. The following men are
retiring from the boards Of directors ot
the three institutions: Samuel II.
Kress, Joseph b. Reichmann. Martin j.
Condor, William J. Cummias and
Charles Arthur Moore, r. Other and
entirely satisfactory directors are being
chosen to Ill the vacancies thus caused.
Cheney Would Have Moved To day.
The conference was called by Mr..
Cravath at the instance of Bradley
Martin, jr, after Bank Superintendent
Cheney had told him on Saturday that
his bank and the Twelfth Ward Bank
and the Madison Trust Company would
be closed this morning unless cash was
supplied in place of many Of the securi-
| ties in the three institutions. II began
on Saturday afternoon with only the
directors of the two banks and the trust
company in attendance. and the hope
was at first held that they would be able
by themselves TO pull the institutions
out Of their trouble.
The first reports were that Bradley
! Martin, jr., would come TO the rescue
and take control Of all three companies
| into his own hands making the same
condition that was afterward made by
Mr.. Morgan for the resignation OF the
| five directors who were involved in tho
Carnegie Trust Company. But as the
| examination of the condition OF the con-
Germs proceeded II was seen tnat outside
help would be necessary il the compa-
MES were 10 - saved.
| The Madison Trust Company has its
main office at Fifth avenue and Goth
street with a branch at the Bowery and
Grand street, and big run was expected
| this morning at the Bowery branch. The
Twelfth Ward Bank has its main once
al No. 147 East l25th street. with two
branches at No. 1925 Third avenue and
No. 173 East 116th street The Nine
tee nth Ward Bank has its main Office at
] No. e5S Third avenue II has three
branches, one at No. 1b2 East 34th
street. another at No. $50 East I'D