Show AmING I 01 NEW YORK FINANCIERS act 11 SH u t Company of America Withstood a Run Runt If Ift Ift t t t All Day and Situation Is Much Mu h Brighter 4 2 State Bank Examiner Has Taken Charge of Knickerbocker Affairs Receiver for Mayer Co 44 I MM 1 t 4 4 M 4 Albany Alban N Y T Oct 4 4 Hughes tonight appointed Clark V II 11 4 4 Hams lIams heretofore vice president of 4 4 the Columbia Trust company of New t 4 York to be superintendent of banks 4 4 Mr Williams will take office tomor 4 4 row 10 T i New York Tork Oct 23 The crisis In New Nework lork ork financial circles wEts safely passed tonight After prolonged prolong tl conferences at J Pierpont Morgans offices an organ organization of the presidents of New York trust companies was effected not differ different different different ent n principle from the Clearing House association It is In the nature of a pro protective combination All AU of the leading and admittedly conservative trust com coin companies panics participated John A Stewart chairman of the board of the United States Trust company compan presided and was wils eted chairman of a committee whose duties are to be analogous to those of 4 the clearing house committee A reso resolution resolution lution was unanimously adopted provid providing providing ing log for an examination of the various trust companies and a report of their findings to the association Following this organization which was regarded as one of the most Important ever successfully carried through In New York financial circles a report was was made to the committee to toJI right JI ht respecting the Investigation Into the affairs of the Trust Company of Amer America AmerIca I ica lea Ample Securities This report was carefully considered in ina ina a 8 prolonged conference of the th committee and it was apparent that the trust com corn company compan pany pan had ample securities to warrant continuing advances As a result all of the trust companies of New Ne York unni unanimously ThUSly agreed to come to the aid of the Trust Company Com pan of America by providing such su funds as it needs There Is no rea reason reason reason son to doubt therefore that the Trust company com pan of America will be able to meet all demands Upon it itt it i At t the same time and even more Im mi Important i the secretary of the New York that j jIe tanks banks authorized an announcement he be Ie had Jad directed that the government de deposits deposits deposits posits be placed in the banks of ot this I city to the extent of These two measures are admittedly adequate for all the needs of the banks and trust com corn companies panics es of New York in the present emer emergency emergency gency geney Statement S ement Secretary official statement stat ment follows v I have Said aid ald to a n number of gentle genUe gentlemen gentlemen men who called on oil me today that a pub He 11 statement regarding conditions here i should be made with the utmost frank frankness frankness frankness ness that depositors and others inter interested interested ested in banks might realize that entire reliance might be placed upon It 1 Those familiar with the facts have known mown that the situation has been made serious 5 largely by the circulation of un unfounded unfounded unfounded founded rumors and the unreasoning anxiety ety et of many who thought only for the moment To pass safely through such a day da as this one on of the most unnecessary ex excitement excitement excitement as it has been Is the best evi evidence evidence dence of strength and support on o the part of those who have undertaken the dUll difficult cult task of reestablishing public confidence dence Strong Men at Work Wherever there is weakness and it has been In but a comparatively comparative I few In Instances Instances instances stances strong and able men are render rendering renderIng rendering ing aid and In behalf of the treasury department I may say sa that I believe that It Is my duty dut to do hat I can and I will do In the largest way possible what may maybe maybe maybe be necessary to afford relief The treasury treasur department will continue Its Us cooperation and if the public on Its part will reflect on the strength of our banking Institutions there will be bc a fast return of confidence which this condition i warrants As 5 evidence of the position I have directed deposits In this city to the extent of or Z Knickerbocker Failure The failure of the Knickerbocker Trust company which suspended yesterday to reopen today toda did not exercise such an ad adverse verse erso influence on the general situation as might have been expected and the early action of Acting A Superintendent of Banks Skinner In taking possession of the in Institution on the advice of the attorney general gave rise to a feeling of relief relle as It was felt that the state would make mak the most out of the situation It H is said to be a question whether the institution will ever reopen at least un under under under der the present management manag ment Another favorable disposition today was wasa a ort of ot tacit understanding between the banks and the stock exchange to aid men mch other the banks by b loaning money at Itt something like normal rates and the trad traders tradel ers el by preventing the bottom dropping out oC op the prices on the exchange Though call c ll money ruled nominally at 70 per cent today toda and the final accommodation was secured at 90 per cent throughout the he theda day da several of the biggest banks renewed loans at G C per cent and millions were let letout letout letout out at hale hal the Interest rate that might have haw been squeezed from desperate bor her borrowers borro Towers rowers ro ers S Wagon loads of Securities The conferences at the offices office of J P Morgan Co made a thorough review of affairs of the Trust Company of Amer America AmerIca America ica The compans securities were brought over In carefully scrutinized and it Is understood found so l O satisfactory that the trust company will receive assistance should it be needed to tomorrow tomorrow morrow At the conference or rather series of at conferences were present not only all aU the presidents of the trust com corn companies concerned principally with the Trust Company Compan of ot America hut many man I Iother other financiers who are vitally vitali Interest ed in the situation At the meeting were J P Morgan E H Harriman T F FRyan FRyan FRyan Ryan H C Frick Paul Morton George GeorgeF F Baker Hamilton Fish Assistant Unit United United United ed States Treasurer Judge E H Garey and Norman B 13 Ream Oakleigh Thorne Thome president of the Trust Company of America was there for a time When the Meeting finally broke up toward C 6 in the evening it was WB felt that the most influential and most powerful men in the financial world had bad assumed command and the confidence of the business community in its banks se so securities securities and money mone condition generally was to be speedily restored The announcement at Albany tonight of the appointment by b Governor Hughes Hugl s of Clark Williams of this city as state superintendent of at banks was received with favor and viewed as a timely act by bythe bythe bythe the governor Midnight Conference Late in the evening there was confidence confidence dence deuce at the house of J P Morgan It was reported that Mr Ir Cortelyou was present President Babcock of the Bank of North America speaking of the run on his bank said After one of the most remarkable runs in the history of American banking we will open our doors tomorrow We paid pid all checks ciecka today as fast as they were presented The Trust Company of Amer America AmerIca ica lea Is perfectly solvent Frank W y Kinsman lUnsman jr president of If the New Amsterdam National bank tonight said sald Louis Lotus Stern of Stern Bros merchants has practically accepted the vice Ice presidency presidency dency of the New Amsterdam National bank and will bring Into the directorate strong downtown business men EVENTS OF THE DAY Trust Company of America Proved Its Financial Standing New York Oct 23 A distinctly more favorable tone was evident In Wall all street at 12 this afternoon following the announcement that Secretary Cortelyou of the treasury tr department had made de deposits dePosits deposits posits of government g York banks The stock market had been hold holdIng holdIng holdIng Ing better all day than had been expected and the fact that the Trust Company Compan of America had withstood the rush of de depositors depositors depositors to withdraw money for four hours without difficulty dIfficult was an addi add additional additional encouraging factor It was also regarded asa as a good sign that there had been no run on any other of the city In Institutions Institutions institutions today and that the banks gen generally generally generally were transacting business In a nor normal normal norma mal ma manner Stocks Rallied Sharply The Improvement in the stock market between 1 and 2 was especially especial no noticed noticed some of the weakest features of the morning orning rallying sharply The high rates for money mone around 1 were without effect on the stock market quotations It Is agreed a reed by every ever one that the con condition condition condition of the banks Is most satisfactory that there Is no unusual pressure upon them and that the same is true as to most of the trust companies There Is nothing like a run upon any financial in institution Institution institution in New York today except the Trust Company Compan of America and the be belief belief lief ilef Is growing that that hat Institution stands a much better chance of getting through successfully than was feared last night Stood the Ordeal The Trust Company of America suc sue successfully withstood the run right rI ht up to the close of banking hours The stock market was rather Irregular In the final dealings St Paul being a weak feature In general however the market leaders held well at prices considerably above the lowest of the day da daThe The crowd at the doors of the Trust Company Compan of America grew until at 1230 about were awaiting to reach the pay paying payIng paying ing tellers teller window The tellers were handing out money apa at the same time timea a force of experts were going over the banks collateral preparatory to making a report to J 3 Pierpont Morgan James Stillman and other bankers as to the extent to which It will ue ne advisable and proper to extend aid to the trust com corn company company pany should the run become so persistent as to require assistance United States Judge Holt bit Issued an or order order order der restraining all banks and trust com companies companies companies from disposing of securities in which the thee firm of Mayer Co or the members thereof hold an Interest until untila a further order Collateral Put Up E II H Harriman T F 1 Ryan Ran President Thorne Thome of the Trust Company Com pan of North America and several other bankers had a J lengthy conference In J P Morgans of offices offices flees E H Carey Care of the United States Status Steel corporation who was present said that ho he believed the situation was being Improved About 20 five large arge bags said to be filled with securities were taken from the offices of the Trust Com Corn Company pany of America to the office of J P Morgan Co It was reported that the securities represented a market value of between and and that they the were being deposited as at collateral for loans by b J P F Morgan Co to the trust company Th The turn tum in the stock market Improved towards the end of the day da and there were material rallies In the general list Bank Examiner in Charge Acting State Superintendent of or Banks Skinner took possession of the Knicker Knickerbocker KnIckerbocker bocker becker Trust company this morning Mr Skinner made the following statement t nde advice of the he attorney general generalI I have taken possession of the Knicker bok r Trust company and Its branch of flees The support of at the institution which was expected yesterday has not Continued C on Page 2 CORTELYOU AIDING THE NEW YORK FINANCIERS Continued from Page 1 been furnished j A bank examiner Is In charge of each office Payments Pa will be received on obligations due to the trust company but no payments will be made by the examiner in charge Payments P should be in cash Collateral CoU teral will not be surrendered until It is shown that it Is not pledged for other Indebtedness o the institution Railroad Sold Announcement was made today that Oak Thigh Thorn Thom president of the Trust Company of America had sold control of the Central of Georgia railroad which he purchased Jointly with Marsden J T Perry last July Mr Thome Thorne declined to say to whom the railroad had been sold He denied It was sold to the Rock Island in interests Interests interests An investigation of a report that there was a run upon the Morton Trust com corn company compan pany pan showed It untrue Although no of official official tidal statement was obtainable It was wasl learned l on very er good authority that the amount of or cash cah deposited with the New NewYork NewYork York lork banks by the treasury treasur department today toda amounted to about E C Benedict was today toda appointed re IT receiver receiver celver of ot the stock exchange firm of oC oCI Mayer Co which made assignment yes yesterday yesterday eg I |