The Washington herald., 1911-01-10
TROUBLE OF BANKS
QUICKLY SUBSIDIES
EN- bryonic RIMS Cease When
strength Is Displayed.
DEP0s1T0Rs PAID IN FULL
Extreme PrOmptness Shown by
Madison Trust Company and Other
InstitutiOns Formerly Associated
with the Carnegie Trust Company.
Iron Master Declines to Aid.

New York, Jan. 9.-The trouble in
banks of this city. which broke out on
the failure of the Carnegie Trust Com
pany Saturday morning. subsided to-day
as quickly as it started. 1t was confined
entirely to the Madison Trust Company
and the Twelfth and Nineteenth Ward
Banks from which there were heavy
Withdrawals on Saturday because or the
knowledge that control Of them was
lodged in a syndicate of directors of the
defunct Carnegie.
With the elimination of these interests
word comes that the Madison Trust had
been taken over by the Equitable Trust
Company, and that j. p. Morgan 4 co.
had agreed to assist the two banks, and
the confidence of important depos.tors
were restored.
Runs Gradually Subside.
Runs on the banks continued this morn
ing. but gradually subsided as the day
progressed Every depositCr who wanted
his money in whole or in part was paid
with extreme promptness. and from the
time that the institutions opened there
was a line in front of the receiving tell
ers' windows. as we'll as in front OF the
paving tetlefS. MANY utpoSieSiS "'''
took out their money Saturday brought
il back. and in the afternoon the number
of depositors going TO the receiving teiier
exceeded those who were making With
drawalS.
As a result of the days business. the
Madison Trust Company took IN more
money than il paid out. The Iweiiti
and Nineteenth Ward banks did not fare
quite as well, but each got along with
o-t n penny of help from ]. +. Morgan
x Co.
Carnegie Declines to Aid.
The only chance that the Carnegie
would resume was that Andrew Carnegie
would step forward and help it again.
That chance. it was learned. was de-
Stroyed in the course Of the transaction
whereby control of the Madison Trust
Company was purchased by the Equi-
table Trust. 1t was from Mr.. Carnegie
that the Equitable secured the stock rep
resenting control. Mr.. Carnegie had got
possession of il in the course of one of
the loans he made to the clique in con-
troll Of the Carnegie Trust Company.
He was willing enough to sell it when a
responsible. offer was made.
Superintendent Cheney, of the State
banking department, said to-day that he
and his - examiners We're going ahead
with a view to liquidating the Carnegie
Trust Company. He did not believe there
was any chance of a reorganization.
As in the Northern Bank case. it will
he some time before he gives out a
statement of the company's condition.
DR.. Cook Is Fortunate.
DR.. Cook, even though he did not dis
cover the north pole. discovered the trcu-
BILE in the Carnegie. and drew out his
money the day before the failure. At one
time the company held all of the money
DIR. Cook made as a result OF his expedi-
ton.
Another lucky depositor was the State
of Tennessee. 1t had only So, 0C0 in the
company. but this was secured by a bond
of the United States Fidelity and Guar
anty Company. The company paid over
the money to a representative of the
State to-day and it was deposited in the
National Reserve Bank.