New-York tribune. [volume], October 23, 1907, Image 1

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YouV ou LXVII.. N° 22,256.
COUNTRY'S BANKS
IX SOUND CONDITION.
$0 APPREHEXSIOX OVER
SITUATION HERE.
JBmmgh Money for Ordinary
Purposes and to Move
Crops.
Ptcpatcbes to The Tribune from all sections
o f (he country Indicate that the financial sit
nstion Is excellent, ami practically no appre
hensien i? felt because of affairs in this city.
The banks in Chicago and many other places
were reported to be on a sound basis.
It was eald that there was sufficient money
not only for the ordinary demands of business
but for the moving of all the grain crops of the
West. Stock markets were somewhat affected,
pfarerer.
The situation throughout the country is shown
In the following dispatches:
NEVER BO SOUND IN CHICAGO.
CjMusaTO. Oct. 22— The officials of the banks
of thif rity are a unit In declaring that never
in the history of the city have its financial In
stitutions been on so sound a basis as they are
at present.
-\ing the failure of the Chicago National
Bank two years ago the Chicago Clearing House
.:k>r.. dissatisfied with the state and na
tional inspection of banks, appointed an inspec
tor of its own. at a salary double that paid by
the government for similar -work. The Inspec
tor's bureau has the power to audit any bank
■•. and et. a consequence all of the
tank- know exactly every day the condition of
she5 he other banks. When a bank demurs to the
rork of the auditor clearing house facilities
ere promptly denied it. The result has been In
the last two years that a number of weak In-
Uttßjttons have been compelled to liquidate, and
that the banks of this city are stronger to-day
thar. they have ever been.
B M Chsttell. cashier of the Illinois Trust and
Pav'r.cs Bank, declared to-dny that there was
r.o weak spot In the banks of Chicago. There is
I • v money here in sufficient quantities, he
eaid. for the ordinary demands of business, but
for the moving of all the grain crops in the
■fest Money is as plentiful here as it ever is
et this tinip of the year.
Mr Chatte'.l and other prominent financiers of
the city asserted that the. financial troubles in
New York did not Involve Chicago In the slight
est degree. They declared that Chicago in
vestors had for some time been chary of in
vesting in securities offered in Wall Street, and
had made it a practice, if they bought, to buy
only on declines. The result h«.s be»n. they de
dared, to place the financial institutions of this
city in a position where it cannot be disturbed
t>y the present conditions in New York.
President Forgan of the First National Bank
•aid:
"The Chicago banks ar«; absolutely sound.
n*ey are not in the habit of handling undigested
or indigestible securities. We can use all of our
money In legitimate Interests. The disturbance
In New York cannot disturb us in the slightest
cegTee."
LITTLE ANXIETY IN BOSTON.
Boston, Oct. 22. — In the complacent belief that
their own houses were secure, Boston bankers
viewed the financial troubles in New York to
cay with interest, but with no particular anxiety
except as bearing on the general situation. Local
stocks all followed the decline of the New York
list, but the drop was not so marked, and in
enly a few Instances were losses of more than
one or two points recorded.
In banking circles there was no anxiety what
ever. Local Institutions were all reported to be
in excellent shape, and their vaults unincum
fcered with heavy loans on speculative securities.
One of the bank presidents said during the day
that Boston had "cleaned house" long before
the decline in copper stocks — which are now more
largely dealt in locally than other securities — be
gan, while in addition frier*- had been during
the last few weeks a general curtailment of all
loans on stocks.
Regarding the local bank correspondence of
several of the New York institutions which were
prominently mentioned during the day. It is
taid that transactions show that Boston banks
are debtors to those In New York, but not to
* large extent. Brokers' offices were crowded
ai! day.
The local money market, notwithstanding the
high rates in New York, remained unchanged,
call money being quoted at 6 per cent. Late in
the day a report was received from New York
of bankruptcy proceedings there against the
brokerage firm of Butler & Johnson, having
branch offices in this city and other places In
%tm England, but it developed that the concern
•waic a small one which has been established here
«nly three months, and the failure had no bear-
Ing on th«» eituation.
PHILADELPHIA BANKS CALLED STRONG.
Philadelphia, Oct. 22.— Financiers and brokers
who are in a position to know, assert that the
Philadelphia banks are in a strong position, and
*t<le to withstand any drain to which they may
be subjected. It Is understood there Is a pool
representing the leading banking Interests that
stands ready to take care of any financial Insti
tution that may develop weakness.
The market held fairly steady all day, consid
ering: the conditions elsewhere. United Gas Im
provement showed an extreme loss of 3 points,
l«h!gh Valley Railroad. 3%; Electric Storage
battery. 2; Union Traction. 1%. and Philadelphia
Transit, 1. The close was above the lowest.
BALTIMORE BANKERS CONFIDENT.
Baltimore. Oct. -Bankers and brokers in
this city express no apprehension over the finan
cial situation in New York. Local banking in
stitutions are said to be in a strong position, and
the decline in the New York stock market has
*nd little effect on securities listed on the local
«ock •■.change. The Baltimore market is
largely an investment one. and very little stock
** carried on margin.
PITTSBURG ' BANKS ARE SOUND.
Plttaburg. Oct. 22.— From Investigations made
to-day and interviews to-night with prominent
tanker* the financial (situation in Plttsburg Is
•aid to be excellent. The banks are sound and
*° Great alarm Is being felt.
The mump of stocks to-day caused much cx
**«*nt in th«. Change. The total sales for
c d*:' were over twenty-five thousand shares.
ContlnurJ on elrbtb page.
_ SAVANNAH LINE TO SOUTH.
UettoL"^ » ?11? 11 Poim* South. New ships. 1 cr
***** T**pu»t» a*, g i> rujg.-A4vt.
To-daj-. fair.
To-morrow, fair; west winds.
RACE LED BY AMERICA
IIERSEY IX CAXADA.
Xew Record in Balloon Contest, but
It May Be Surpassed.
Caledonia, Ont., Oct. 22.— The balloon United
States, of which Major Hersey, of the
United States weather bureau, at "Washington,
is the pilot, landed about twelve miles pouth
of Hamilton, (int., at 0:15 p. m. The United
States crossed Illinois, thence across Lake
Michigan and Lake St. Clalr to the middle of
Lake Erie, when a change of wind carried !t
north into Canada to the place of landing.
The distance from St. Louis to Hamilton, on
air line, is approximately 620 miles. Therefore
thr> United States travelled about tilO miles,
which is far ahead of the record made in the
European races by Lieutenant Lahm, whose bal
loon won the international cup by sailing from
Paris to a point in England, 40U miles* distant.
Wheeling. W. Vn.. Oct. 22.— At midnight to
night (Eastern time) one of the balloons from
St. Louis passed over Martin's Ferry, Ohio,
crossing the Ohio River, and passed directly
over the northern portion of this city. The bal
loon was high in the nir, but a white light wrs
conspicuous.
It Is reported that a second balloon passed
over the southern pectlon of the city. The
direction Icing taken by the balloons was duo
'Bj '<■'.• crai b to The THbmn ]
St. Louis. Oct. 22.— The Indications at mid
night aro that the American aeronauts up to
that hour had set a record in the second Inter
national aeronautic race which will result In
keeping the James Gordon Bennett Cup In this
country.
The achievement of the balloon United States.
piloted by Major Hersey, of the Weather Bu
reau at "Washington, in travelling a distance of
830 miles from this city to close to Hamilton,
Ont., not only breaks by more than two hui^'ir- 1
miW the record made by Lieutenant Lahm from
Paris to England, but also bids fair to be the
'.> st distance record in the contest which started
here >•• sterday aft< rr.
The nearest competitors, ko far as known, are
two balloons, whoso identity Is not established,
which passed over Wheeling, w Va, to-night.
They showed no indication of planning an im
mediate landing, and passed dv" eastward.
Either or both these may surpass 'h* new rec
ord eet by Major Hersey. but aeronauts here
say this Is improbable. Both of these are be
lieved to be German balloons.
THE POMMEKN REACHES ONTARIO.
The Pomruern. Oscar Erbsloeh pilot, one of the
German balloons, was declared by the Ger
mans to be away ahead at the last reports. It
was seen passing ovt Caledonia. Ont . at 6 1"
p. m.. going rapidly ■* a low altitude and east
erly. The tlrst reports of the balloon from the
Dominion came after it had crossed Lake Huron
end reached Chatham. Ont.. at 3 p m. It was
reported at Hlghgate. Ont . about half an hour
later, and then from Caledonia.
The movements of the other German b
either the DOsseldort piloted by Captain yon
Abercron. or the Abercr<".n. piloted by Paul
Meckel. is some distance behind the >>r.'- reaching
Canada, but still leading the rest of the fl.-ld by
a considerable margin It is supposed to be
over Wes* Virginia, having followed closely the
route taken by J. C McCoy when he got tt,*
Lahm cup. McCoy and Captain Chandler, in
the America, ore supposed to have landed late
f<-day somewhi re near Lake Erk
rhc French balloon L'l.-le de France,
Leblanc. pilot, passed over Springfield. Ol
7 p m It was travelling toward the sc
at a fairly low altitude. A message In French
was dropped there by Leblanc and Edgar W.
Mix, his aid. A Btaraped envelope was inclosed.
and the message, translated, reads as follows
"We have arrived at Springfield at 7 o'clo k.
October 22, 1907. <»ur direction in northeast."
In all. four balloons passed <. V er Columbus,
Ohio, during the day. the German balloon Pom
nif-m heading the procession Just east of that
city a note was dropped from the car of the
Pommern. reading: "Noon. Travelling north
easiterly direction" It also stated that about
thirty bags of sand had beetr used, with about
two thousand pounds left
At Cleveland another note was dropped from
the Ppmmern, securely wrapped with a small
bag of sand. The altitude attained by the bal
loon at the time it was dropped was fi,2H7 feet
CROSSING OVER OHIO.
Of the balloons crossing over Ohio, two passed
over Greenville late In the afternoon, and about
8 p. m. two more were seen travelling in the
fame direction. Their identity could not be dis
covered. The wind, according to night reports
from that territory, was from the southeast, and
blowing about twenty-four milf-p an hour This
will hurt materially the chances of these bal
loons. It is believed, as it will swing them ba< X
to the north and west and toward the lakes
After being up more than twenty-four hours it
Is nd believed that they will have gas enough
left to essay the passage of the lakes when they
arc reached.
One of the German balloons, however, is
thought to have got sufficiently far east to es
cape thin, ap one of them had reached Wheeling
by ft o'clock and was keeping straight on to the
east .
Another balloon got the southeast wind appar
ently ahead of the ntherp. and is travelling to
the northwest, having passed over Winona.
Minn., at 8:30 p. m. Although apparently better
situated than gome of the other balloons, this
one seemingly will be unable to overcome the
lea/J of the other two balloons, for Caledonia i«
about 610 miles from St. Louis and Wheeling
about 515 miles in an airline, while Winona is
only 375 miles.
BREAKS DOWN IN MIDAIR.
The dirigible balloon, or airship, races have
been postponed until to-morrow afternoon be
catfse of the Inability of some of the contestants
to get their machines ready. Several of the
motor propelled vehicles were in readiness, how
ever, and made exhibition flights late to-day.
Special hydrogen gas of a far lighter quality
than that used by the balloons yesterday is
being manufactured for their use. The dirig
ible bags are alno made of much lighter ma
terial than the varnished cotton of tUe cup con
testants.
One airship, the Dallas, broke down In mid
air to-day in a trial flight, but its owner and
operator. "Jack" Dallas, floated down to earth
in safety. He was about seven hundred feet
above Forest Park this afternoon when the en
gine broke down. Fully twenty-five thousand
spectators atampeded as the machine dived
down. Mounted police added to the confusion
by driving the crowds back to give Dallas a
clear space In which to land.
He circled about slowly, and then, as he ap
proached the ground, smashed Into some tele
graph wires. This broke the descent, and ma
chine and aeronaut landed without serious in
jury. The damage to the dirigible balloon will
amount to about S.VIO.
GREAT BEAR SPRING WATER.
"Its purity has made it famous."— AdvL
NEW- YORK. WEDNESDAY. OCTOBER 23, 1907. -FOURTEEN PACTS. c *q^,~*,fr .
KNICKERBOCKER TRUST COMPANY'S BUILDING.
Thirty-fourth street and fifth avenue. The centre of yesterday's sensational banking crisis.
NEW COLLEGE. $3,000,000.
Bequest of H. X. Carson to Orphan
Girls — Girard as Pattern.
Philadelphia, Oct. 2LV — It was announced to
day that tlio will <>f Robert N. Carson, of tt.is
rity, who died suddenly in :i theatre here lest
week, provides for a $5,000,000 college for or
phan girls. ] ifterGirard College, in this
city, which is exclusiv* ly f i
fective ;■ ff t • r the death of the widow,
Mrs. Frances Carson. The Institution «
city line, in
Montgomery Cou
will Is almost identical with that ni
Stephen Girard, who founded the largest col
r its kind In the world. Like Mr Girard's
will, Mr < 'arson' I I '
etitution shall n>>t be controlled by any
ious denomination and that :." religious services
shall be held in the Institution that are ;•
or cxi lv ' ' ■■' Church
The pirls are to be I hi the
:! doctrim ■ of Christianity, a
. ludc d from the
Is. but there Is to be n< ; ting or
:. c to their o« I b«li< f
•
The college will be open to all poor whit* girl."
both of whnsp parents are dead. In the matter
of admission preference i- to be given equally
to girls born In Philadelphia or in Montgomery
County. After that admissions are to be to
those born m Pennsylvania) and, lastly, to those
born elsewhere In the United Statpi The age
of admission is between Fix and ten years, and
of discharge, from the college nt clshtrfn, or
earlier if the trustees deem It for the best In
terest of the girls.
.7. //. BRISTOL STRICKEX.
Landscape Artist, (her Eighty, Suf
fering from Paralysis.
John B. Bristol, vet ■ »cape
painter and one of t t l ers of ihe
Natlonnl A t Design, Is In St. Luke's
Hospital suffering from a Btroke of par
He w;is re tudlo, Na 120
2.'M street, to the hospital <>n August 1">.
George F. Clover, superintendent of St. Luke's
Hospital, said last evening that Mr. Bristol
would probably be m< ■ . a to a 1 >me for
incuraV.l' .-. probably t.> that ;»t Fordham
Mr Bristol is In l •• nd rear and
has bpt-n a member of the National Acad<
Design since 1875 Beginning ris a painter of
figures and portraits, lie afterward took up
landscape work. He is a member '>f the Century
Club and the Metropolitan Museum of Art. and
ha;< been a roßular exhibitor at 'he National
Academy.
COLONIAL TREASURER SHOT.
Negpro Attempts to Kill Norman Lockhart
at Stt George, Grenada.
Kingston. St. Vincent, Oct. 22.— Advices re
ceived here to-day from St. George, island of
Grenada, pay that an attempt has been made to
assassinate the Colonial Treasurer and Con
troller of Customs, Norman Lockhart. A dis
satisfied colored revenue officer named Benjamin
on Saturday last drew a revolver and fired three
shots at the official while the latter was enter-
Ing the treasury building, One of the bullets
struck Mr. khart's hand and another lodged
In his fihoulder. When an attempt was made
to arrest (he negro he drew a knife and stabbed
the treasurer in the side. The cashier. George
McKie. who rushed to Mr. Lockhart's assistance,
was seriously slashed in the hand and thigh.
When taken into custody Benjamin took a
bottle of poison from his pocket and drank Its
contentß before it could be taken away from
him. The authorities with difficulty succeeded
in giving him an antidote.
It in thought that Mr. Lockhart will recover.
Benjamin, who was taken to prison, showed
stolid Indifference regarding his crime.
MOTHER FAILS TO SAVE SON'S LIFE.
Electric Cab Kills Little George Schultz —
Driver Charged with Homicide.
As his mother was vainly trying to save him
George Schultz, two years old, was run over
and Instantly killed by an automobile yesterday
at Broadway and 37th street, where Mrs. Schultz
keeps a newsstand. The family lives at No. 102
West 37th street.
When Mrs. Scbultx crossed the street to sell a
paper the baby toddled after her. Returning,
they had reached the middle of the street when
an electric cab, owned by the New York Trans
portation Company, came youth in Broadway
and turned east. Mother and child stopped
when they heard the gong, and each started to
pull in opposite directions, according to the
driver of the cab. He Instantly put on the
brakes, but before the cab stopped the child
was ought by the forward wheel and crushed
to death. Mrs. Schultz .swooned.
The driver. Frank Fox. of Na 4<>7 West 50th
street, was taken to the Tenderloin police sta
tion and charged with homicide.
CROWDS IX DANGER.
President Overwhelmed by Remark
able Demonstration.
i By T»efrraph to The Tribune]
Chattanooga, Term., Oct. 22.— Probably 20.000
persons were in danger of being crushed to
death in a monster demonstration to President
Roosevelt, upon the arrival of his special train
at the Central Station here, at 6:10 this even-
Ing . The wildly enthusiast! mass of humanity
could not be controlled even by the President.
who, ifter futile attempts to speak occupying
twenty minutes, desisted with an acknowledg
ment of what he termed "this magnificent ova
tion," and a plea to the. cheer! mass to re
member the danger of the women and children.
The cheering was almost Incessant, and in the
wild rush toward the President's car women
were carried off their feet and men had to fight
to keep themselves from being trampled. At
6:31 the train was signalled ahead. At- It rolled
away the President waved responses to cheers
that followed him us long as he was in sight.
(An t of the 1 I ' ■n at
Nashville and his speeches there and at Mem-
((HUT liIXDS PRESSMEN.
Enjoined from Voting on Eight-
Hout Day or "Closed Simp."
r • ; -_: r> taring t bat ?I c v!os-»d
■hop' it public policy, Tinted States
• ;ed an injunction to-day
against the Inciting ol I v the offlciala »f
the Int ■ Union against th«
• • . .i An ai
itlng i ertain per
sons i i. w ho w >■: a n< ■■
indls] le to the suit.
George L. Berry « U M< Mullen,
presidi lively,
•if the Interaatlon l I and Assistants'
Union of North Ameri are ■•• ured to have
conspired to Incite strikes, contrary to an
between the union snd the United
Tj pot! ' we en
joined "from calling oi in titutlng strikes or
advising, aiding and assisting In the <alllng or
Instituting of any strike ajplnst the
the said m< said typothetse, or any of
for their refusal or the refusal of any of
them to Institute an 'eight hour day" in their
prior to January 1, llHf.i,
or the 'closed shop' In their respective businesses
at any time "
The taking of a referendum vote upon insti
tuting or maintaining strikes for the eight hour
day o;- the "closed shop" and the payment of
strike benefits In support of such a strike, are
forbidden by tha injunction, which rovers nil
possible means of encouraging or inciting such
ii strike.
BATTLESHIPS MEN ASSAIL NEGRO.
Hundreds of Minnesota's Crew Take Part in
Racial Demonstration.
Norfolk. Vs., Oct. 22.— Many of the seven Bundled
of the crew of the. battleship Minnesota, row .it the
Norfolk Navy Yard, engaged In a racial demon
stration yesterday afternoon. A negro cook in the
warrant officers' moss, accused of "imposing" on a
white pallor, had a narrow .-.-., ape from being
thrown overboard by the enraged crew. He was
Saved through the Interference of an assistant boat
swain named footesmaa.
Workmen at the. yard employed on board the ship
witnessed the outbreak. After the. negro had been
taken out of reach of the sailors he was allowed to
leave tho ship.
BUBONIC PLAGUE AT SEATTLE.
Fully Developed Case Proves Fatal —
of Infection Not Known.
Washington, Oct. 22. — Telegraphic advices re
ceived at th?* Public Health and Marine Hospital
Service to-day from Dr. White, the medical officer
of that service at Seattle, indicate that a fully
developed case of the bubonic plague, which proved
fatal, developed in the Chinese quarter of that city.
It has not been ascertained whence tho Infection
came.
Assistant Burgeon General Glennan, of the Public
Health and Marine Hospital Service, said to-night
that no fears are entertained as to the spread of the
disease. _
0
HOTEL AT LAKE MOHONK BURNED.
Kingston. N. V., Oct. 22.— A dispatch received
here says that Mountain Rest, a five story hotel, at
Lake Mohonk. owned by K. Smiley, was burned
to-day, together with a three story frame annex
an.l all the barns. The loss is estimated at $75,000.
» 1
WANT TO STOP TICKET SPECULATING.
Senator Saxe spoke at the meeting of the Theat
rical Managers' Association held at the Hotel As
tor yesterday. He asked their aid for the passage
oi a bill to put on end to ticket speculating. On
motion of Mr. Klaw a resolution was passed to
the effect that a committee should be appointed to
confer on the subject with the Merchants' Asso
ciation, the City Club, the People's Institute, the
West End Association, the Citizens ' Union anil
oilier bodies.
AFTER ALL, USHER'S THE SCOTCH
that «*utde the highball fiuuou*— Ai«vt
KNICKERBOCKER TRUST SHUT
Cortelyou Here, Prepared to Rescue with Govern
ment Funds.
ALMOST PANIC IN STOCK MARKET.
Call Money Goes to 70— Mayer & Co. Make Assignment— Attop>
ney General Jackson Here.
The Knickerbocker Trust Company, as a result of runs by depositors at all its offices,
was forced to suspend payment. Its doors will be opened agaia this mornmsr, provided
cash can be secured over night, which at a late hour awed improbable.
Mayer & <'0., a Stock Exchange house, failed as a result of the recent depreciation of
securities.
The stock market suffered a severe braak as a result of the Knickerbocker Trust Com
pany suspension. Call money loaned at 70 per cent. Leading issues declined from sto 10
points.
Secretary Cortelyou of the Treasury came to New York last Bight, and conferred with
leading bankers and financiers on the local banking situation. He was reported ready to
place targe deposits of government money in the banks.
The local bank troubles seemed to be dealing up, as only one institution needed as>
nstanee in meeting its debit at the Clearing Hi a
i
MAY NOT OPEN TO-DAY.
Other Concerns Slozc in Advancing
Funds to Trust Company.
The Knickerbocker Trust Company suspended
payment yesterday at a little after noon at
both the main offli c. Fifth avenue and 34th
street, and the downtown and uptown branches,
and the present prospect is. that it will not be
able to resume business.
At a meeting of bankets at the Union League
Club last night it was decided by men who had
Information ha their possession to substantiate
their statements that tha Knickerbocker Trust
Company would nev. r open its doors again, or
at least under Its present management.
Details of the meeting of the Union League
Club were refused by attaches of the <-iut«. who
sai.i that so far aa they knew bo "conference
■ there. It was later stated on
good authority that one of the men who con
. with Mr Cortelyoq quit ih- conference in
the Union League Club to Join Mr Morgan at
tl ••■ H tel Manhattan.
It « ti d last b more than
54.000.000 • * • had been withdrawn from
: ; • 4 America yesterd ly. The
• this statement was or.- ol the
rs of the •. which i;
retary Cortelyou, Mr. Morgan. Mr. Heptmra and
■-. .it the Hotel Manhattan.
The announcement of the clotting of the com
doors was followed by a break of ure.it
ly In the stock market, which had been
weak from the opening; but in the late trading
a moderate recovery occurred. Call money went
as hich as 7<t per cent.
Despite the announcement at the adjournment
of the conference of Knickerbocker Trust Com
pany directors, heads of various trust companies
and other financiers at Sherry's early yesterday
mornlng that two funds had been pledged, ag
gregating $15,000,000, for safeguarding the
Knickerbocker and that the latter had $S»
000.000 cash of its own on hand, the suspension
of payment was announced to be due to the
fact that the company had run short of cash.
11 was said yesterday afternoon that no part
of the outside emergency fund had been used,
and it was further declared in some, quarters
that the total amount of the assistance thus
pledged was not In excess of $3.f>00,000. Instead
of tl&,006,0t0.
In the course of the afternoon a meeting of
the heads of twenty-five trust companies was
held, at which a committee was named to con
fer with the directors of the Knickerbocker
Trust Company. If the condition of the Knick
erbocker should bo. shown to warrant the ac
tion, it was said, the associated trust companies
stood ready to advance to it sufficient funds to
enable it to resume business. A number of the
most Important trust companies were not repre
sented at the meeting of presidents.
Of the 55.000.000 paid out yesterday by the
Knickerbocker before it closed Its doors, prob
ably the greater part was used In satisfying the
claim of the National Bank Of Commerce. That
institution, which for years had acted as the
clearing agent for the Knickerbocker, a rela
tion terminated yesterday by the bank, had a
debit balance yesterday morning of $7,000,000
at the Clearing House. An officer of the bank
saM yesterday afternoon:
•"A large, part of our $7/*V>,n»V> debit balance
this morning was on account of the Knicker
bocker Trust Company. I don't care to givo
the exact figures, because that U» none of our
business We are covered in every way. how
ever."
As noted in The Trtbun« yesterday, under the
law ns it now stands a clearing agent would. In
CtUte of the insolvency of the institution for
which it acted, be responsible to the Cleariiiß
House for the full amount of the principal's
clearance, ami would have no claim on the de
posit held l-y it of funds of the institution
cleared, these funds passing to the control of th«
receiver.
DIRECTORS TAKF. NO ACTION
A meeting of the directors of the Knicker
bocker company was heid In the afternoon at
No M Broadway. There was a full attendance,
only two Of the members beinn absent. Presi
dent Hißgins presided, and it was evidently to
hear his statement Of affairs rather than to
offer any tangible solution of the problems In
volved that a ninjorlty attended. The state
ment made by H B Holttns early in the day
that .SUM *«>»!<>«> could be had by the Knicker
t"«.-k r Trust Company at any time, was quoted
!•>■ several of the directors before they entered
the room*. The session was long and animated,
following Mr. Hißßinss statement, which was
substantially the s.-me as outlined in the inter
view already quoted
When the board adjourned at 0 o'clock, it wns
evident thai disappointment had greeted all
hopes of iminmedlate assistance. One after an
other, the directors departed, a majority deelin
log t.. talk at all. while those who did consent to
express themselves had little hope for the fut
ure.
Joseph S. Auerabch, of the law firm of Davies.
Stone & Auerbach. who Is a director as well as
counsel for the company. Issued a statement
after the meeting was over. In it he said, with
the consent of hisVellow directors:
Everything possible has been done by the
officers and directors to meet the extraordinary
demands upon the resources of this company,
but It can be well understood that no trust
company has sufficient liquid assets at all times
to meet the demands of a greater part of Its
depositors. The directors are confident, from
the statement of the Acting Superintendent of
_ Continued on second pace.
PRICE THREE CENTS.
COR TEL YOU TO RESCUE.
Confers with Financiers Here About
Improving the Situation.
At the close of a conference with prominent
bankers lasting until 1 o'clock this morning Sec
retary Cortelyou made the following statement:
I repeat what I stated before leaving Wash
ington this afternoon, if for no other reason
than to emphasize the attitude of the Treas
ury Department. It will use its facilities to aid
in every proper way legitimate business Inter
ests, and its action will be prompt and thor
ough. The national banks of New York City
are in an exceptionally strong condition. The
general situation here seems to be well in hand,
and is being looked after by many strong and
Influential men. such as those whose recent
action in the Clearing House received em
phatic public approval. The movement for sim
ilar concerted action among the trust compa
nies should have a helpful and far reaching ef
fect. I shall spend the day to-morrow at the
Sub-Treasury.
It ta understood that the general sentiment
of the conference last night was that the situa
tion was better in hand, and that there was no
occasion for general alarm.
A well known banker wh-> attended the con
ference at the Hotel Manhattan, at which Sec
retary cortelyou was present, said after th«
meeting in regard to the financial situation:
"Attention has been riveted la the Trust Com
pany of America, of which Oaklelgh Thome is
■nt It is believed by the Clearing House
interests and also the Morgan interests that
the situation in this trust company is vastly
different from that in the Knickerbocker, if the,
condition of this company is such as those
who were represented at the conferences have
every reason to believe.
' Those who attended the conference can an
nounce authoritatively that the Trust Company
of America is to be cared for and supplied with
necessary cash pending an investigation of the
a. ount.s of the company by a committee al
rsady named at the conferences to-night. If
the position of the Trust Company of America
is such as the bankers have very reason to be
lieve. It will be cared for in every eventuality.
It is understood that the chtef reason the Knick
erbocker company was r.ot assisted to-day by
the Clearing House interests and those of Mr.
Morgan and his associates was because it was
considered that the capital and surplus of that
company hid been Impaired."
The' Trust Company of America has $12.ftfl&.
o^o cash in Its vaults.
It was learned from another prominent banker
last night that there is little chance that tha
Knickerbocker Trust Company will resume pay
in-.nts this morning. This assertion was made
by a man familiar with the situation and one
who has been in touch with the goings on of tha
last few days.
Secretary Cortelyou early in the day deposited
$1,000,000 of government money in each of six
or seven national banks in this city, and came
over from Washington later on. arriving here
at 9 o'clock last night, and on reaching the Man
hattan Hotel going into conference. The Secre
tary was met on his arrival at Jersey City by
Hamilton Fish. Assistant Treasurer of the
United States at New York, who accompanied
him to the hotel.
After Mr. Fish had apprised him of the bank
ing situation here. Secretary Cortelyou received
the financiers invited to the conference, who In
cluded J. Pierpont Morgan and George TV. Per
kins, of J. p. Morgan & Co.; George F. Baker.
president of the First National Bank: A. B.
Hepburn, president si the Chase National Bank.
James Stillman and Frank A. Vanderllp. re
spectively president and vice-president of the
National City Bank; James G. Cannon, vice
president of the Fourth National Bank, and
State Controller Glynn.
Outside of the suspension of the Knickerbock
er Trust Company and the assignment of. the
Stock Exchange house of Mayer & Co.. the latter
coming almost at the close of a semi-panicky
stock market session, no bad news developed
yesterday in the financial district.
It was said last night by a man in close touch
with the affairs of the Treasury Department
that New York was the only city that was feel
ing the financial panic. It was said that the
money which was sent around the country sev
eral months ago to tide over the depression si
the money market due to the moving of the
crops was being used in tiding the banks over
the crisis, and that the trouble would spread no
further than this city.
Mr Morgan, on leaving his downtown office
at t> o'clock, after having been in conference
there with a number of leading bankers, said:
"We are doing everything we can as fast as
we can. but nothing ha& yet crystallized."
One ot the oonferreea who is a member of
the Clearing Housd said: ""I feel personally
very well about the situation. Such trouble as
exists in various places Is directly traceable to
bad management on the part of bad men. They
must be eliminated from the situation. Somft
hav»' been got rid of. and others will b« event
ually "
"WIH the Clearing House issue certificates
again?" he waa asked.
"No; that will never be done again." he said,
and added: "The New Amsterdam Bank will be
carried
He then reiterated his faith In the present
situation, saying: "The Clearing House will
give aid to those banks in the association which
may need It.** «
The Street was full of rumors yesterday of in
stitutions In difficulty ani impending changes
in officers. One of the most widely current
rumors had it that the directors of the Morton'
Trust Company had demanded the* resignation