Show STORM IN INk k NW NEV YORK H Trust Company With Deposits of Compelled to Close Its Doors I I Mayer Company Members of the Stock Exchange Fail for Government Aid Promised After the doors of the Knickerbocker company were closed William Turnbull the fourth vice president said All the disturbance in the money market has been caused by one man mati who in the past six months in public and private speeches has been gradually undermining the credit system of the country Last night this company had assets way in excess of its liabilities and in one night the confidence of its patrons and its credit were destroyed This was was brought about by one man and that a man who knew nothing whatever about credit systems One of the Mr Turnbull whether he was referring to President Roosevelt I You know perfectly well whom I mean replied Mr Turnbull There is no need for me to specify Albany N Y Oct 22 Attorney General Jackson left tonight on the Empire Express for New York where he lie will confer with Acting Superintendent of State Banks Skinner on Knickerbocker the Trust Company situation n The statement of resources include an item stock and bonds investment 00 0 0 00 New York Oct 22 The e failure j OJ of ot Mayer Co was announced on the stock exchange at this afternoon 0 The liabilities of Mayer Co whose failure was announced on 0 e ethe the stock exchange this afternoon 0 J Jare i are about This is much 0 larger than has been expected as asit asIt asIt it was thought the firm was doing 0 S Sa a small business c 4 4 New York Oct 22 Credit the under foundation of all nil business trembled for a time today and before con confidence confidence had bad been keen restored New Yorks sec second end ond largest financial institution had emp emptied emptied emptied tied its cash vaults aults under the pressure of the biggest run experienced here in a Q generation generation gen generation a 0 stock exchange firm had failed for six millions Wall Vall streets principal securities had settled from 55 5 to JS S 8 a ashare ashare share call money mone had risen to 70 O per cent end ond local bankers united to stem the tide of distrust had been forced to appeal for lor relief to the secretary secreta of the treasury at Washington I No Faith In Statements Ml UI 1 this was in the tl face of reassuring statements by b the acting state superintendent superintendent superintendent of banks that the suspected bank bankas was as solvent declarations decla by b prominent bankers that there was no true basis for alarm and assurances from Washington that Secretary Cortelyou would not hesi hesitate hesitate tate to act promptly in any situation where There legitimate business bu was threatened NOw Nw N w that the first scare is over and the worst of the future discounted it is be believed believed I that the local banking affairs will Eoon soon readjust themselves Secretary of the Treasury Cortelyou leached New York from Washington at 3 3 He HP was met at Jersey Jerse City by Hamilton Fish ish l assistant United States treasurer and the two were In earnest conversation during durin the ferry fem trip to New NewYork NewYork York lork Upon reaching reach In this city they went at once to tho the Hotel Manhattan where several bankers were later presented to the secretary Run on the Knickerbocker The Knickerbocker Trust company the storm center today paid out cash to de depositors depositors depositors at the rate of or a minute for three hours today and then closed its doors door The directors had as they thought thoughtfully thoughtfully thoughtfully fully prepared for a run and caused to tobe tobe tobe be announced in papers that in cash was on hand to meet all aU eventualities At a few depositors withdrew their accounts and an hour ift f t hundreds ds were in line to take out their deposits at the main office at JUh street and Fifth avenue and at the Har liar Harlem Harlem lem eIn and Bronx and downtown branches The lasted until 1230 3 when ice President J T Brown announced that the bank had no more cash available and pay payments payments ments meats were suspended Question of Raising Cash Mr Jr Brown said that the bank hank would o on fn tomorrow and payments be resume 1 at at 1030 The Knickerbocker it w ws s announced had ample securities to all aU demands was perfectly solvent and it was only a question of raising the thea cash a h when all aU depositors who wished to withdraw could do so 50 J 1 P Morgan and his partners pa were ere In conference at their Wall Wail street offices un until until til UI after 6 G t Mr Morgan an when asked as to the situation said We are aro doing everything we can as fast as we can oan an but nothing has yet et crys erys Ho would give shoe no intimation as to the plans under way wa to alleviate the situation George Georg W Perkins Mr Morgans part partner partner ner ncr met a number of ot bankers and trust company compan officials at the Union League club lub tonight when the financial situation was canvassed in an Informal way There was a meeting of the Trust Com Corn Companies Companies association after banking hanking hours today toda at which a committee consisting of George J Young of the Windsor Trust I company compan Otto Barnard of or the New York Trust company and Clarence H Kelley of the Title Guarantee and Trust company was appointed to confer with the officials of the Knickerbocker with a view to ex extending extending extending tending such assistance to the company com pan as Investigation would warrant The official statement concerning the meeting said that bankers residents of New York and Brook yn were present and that a committee to re report report report port on a plan of closer clo cr cooperation co among trust companies was also named A Foster Higgins who last night was chosen to the presidency of the Knicker Knickerbocker bocker boeker when Charles T Barney Barne resigned was present at this meeting and laid be before before before fore the others a statement of the Knick Knickerbockers Knickerbockers affairs He talked for the In Institution Institution institution and then withdrew hurrying away to a meeting of the directors of the Knickerbocker ker Later he said that the th Trust Companies association wished to inspect the Knickerbockers securities and that after the committee had done so the thea association a would reconvene at a late hour up town President Higgins was not optimistic When asked if the other trust companies presidents were reluctant to help him out he replied Help Grudged Reluctant is no name for it They The seemed seem d to feel that they ought to hold on onto onto onto to all the money mone they the had One of o them said to m in We Ve might have hae helped you ou out but here you ou have closed your doors You mean that you ou dont want to ride a dead horse I said But I wish you OU to distinctly understand that the Knickerbocker is not a dead horse and what are you ou going to do about It Mr lIr Higgins would not say what was ered The committed commItte appointed by the Trust association made a cursory examination of or the Knickerbockers books tonight This was vaa sufficient Chairman George W V Young said to establish the solvency of the bank banle When the meeting of the director of the Knickerbocker broke up Joseph S Auerbach a director and counsel for the company compan gave out the following statement Statement of Counsel Everything Eer possible has been done by the officials and directors to meet the extraordinary demands on the resources of oC this company but it can be well un understood understood understood that no trust company compau has bas suf sufficient sufficient sufficient liquid assets at all times to meet demands of a greater part of its depositors The directors are ate confident from Crom the statement of the acting super superintendent superintendent of the banking department made today toda that the resources of the trust company com pan are sufficient to meet all obligations in full x Asked what he thought the prospects were of or the bank opening tomorrow Mr Auerbach said sald uIt It would be impossible to do it unless we receive sufficient resources and I do donot donot donot not think that these will be h i on hand by morning We e are doing all that can be bedone bedone bedone done The Knickerbocker did lid not re receive receive receive one dollar from outside sources to today today today day I do not know how the story that millions were to be placed at the disposal of or the Knickerbocker today toda originated The officials of the bank did expect as assistance assistance assistance and this may have been the basis of or the story stor At any rate we re received received received no help from outside No Promises Made George W v Young one olle of the commit tee appointed by b the Trust Companies association later met the directors of or the Knickerbocker at Fifth avenue office Subsequently he said No promises were made to the Knick Knickerbocker last night and the story that was available for that tion was not true tnie The association will do doall doall doall all it can for the Knickerbocker That Is they will do something if lr there is any an thing to be done But you ou must bear in mind that this matter was only brought to the attention of or the association association formally Continued on o Page 3 FINANCIAL STORM IN NEW YORK CONTINUES Continued from Page 1 at 3 this afternoon No assist assistance assistance assistance ance will be rendered r before tomorrow We Ye have got to know where we stand We 0 must look Into things When hen we e have done that we will wilt give all the t e aid we we can Cortelyou in Conference Shortly before 1 tonight J P Morgan George W Perkins George F Baker president of the First National bank Frank A vice Ice president of the tho National nal City bank and A B Hepburn president of the Chase Nation National al bank reached the Manhattan hotel and were immediately taken to the apartments apart apartments apartments ments of Secretary Cortelyou Shortly before midnight Mr Mr lr Baker Ba Baker Baker ker and Mr Hepburn left Secretary Cor telous apartment and went home All Ili 11 declined to make a statement one of the conferees who is a member of the clear clearIng clearIng clearing Ing house committee saying Bad Management by Bad Men MenThe MenThe MenThe The secretary will have something to say regarding the conference upstairs Personally I feel very good about the situation sit situation situation The clearing house will wilt give aid to those banks in the association that may need it Such trouble as exists in various places pl es Is traceable to bad management man management management by bj b bad men We Ve have been trying try trying trying ing to eliminate such men Some we have gotten rid of and all eventually will wilt go The National Bank of New Am Amsterdam Amsterdam Amsterdam will be canned over Will m the clearing house issue certificates certificates cates was asked No that will never neer be done again Secretary Cortelyou and George W Per Perkins Perkins Perkins kins were still In conference at midnight At a meeting of directors of the Hudson Trust company compan held today toda the resignation resignation resignation tion or Orlando F Thomas as president was formally accepted and E R Chap Chapman Chapman Chapman man was elected as head of the Institution Institution institution in his placed Statement Secretary Cortelyou made the following statement shortly before 1 this morning I repeat what I said before leaving Washington this afternoon that if for no other reason than to emphasize the atti attitude attitude attitude tude of ot the treasury department it will use Its facilities to assist In every ever props proper way legitimate business Interests Interest and its action will be prompt and thorough The national banks of New York City are in an exceptionally strong condition The general situation here seems to tI be bewell i s swell well in hand and is I being looked after by many strong and influential in men such as those whose recent action In the clear clearIng clearing ing house received emphatic public ap approval proal The movement for similar con concert concert concert cert of action among a the trust companies compa companies nies should have a helpful and ar a h hIng I ing effect I shall spent today Wednes Wednesday Wednesday day da at the |