New-York tribune. [volume], October 26, 1907, Page 2, Image 2

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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during the last day or two a marked decrease In
marginal trading, except on exceedingly large
margins, and many prominent Stock Exchange
houses yesterday refused orders except for cash
in order to relieve the financial situation.
One of the inter, sting features Off the stock
market this week has been the buying of odd
lots of standard Issues, which has aggregated
a very large amount. Payment for these stocks
lias been made la cash and they have been
taken out of the market. But a great number
of possible Investors are Btlll holding aloof, who,
Infected with the prevalent unreasoning lack of
confidence, which us usual In such times makes
little or no distinction between weak institu
tions and those of absolute impregnability, are
drawing out their deposits in cash and putting
it in newly rented safe deposit boxes. This
movement, which by decreasing the cash re
sources of the banks decreases fourfold their
credit extension power, is one of the difficulties
With which the financiers who are unitedly
working to bring permanent relief to the situa
tion find themselves obliged to contend. A good
many large policyholders in the life Insurance
companies. It 13 reported, are collecting the sur
render value of their policies, presumably for tho
purpose of taking advantage of the present re
markable opportunity for the purchase of stocks.
Before the opening of business yesterday
morning there was an Informal conference of
several of the presidents of the large trust com
panies at the offices of the Union Trust Com
pany, at No. 80 Broadway, to talk over with
President Edward King, who is chairman of the
committee named at the Morgan conference, the
day's plans.
Clark Williams, the new State Superintendent
of Banks, gave out the following statement
early In the afternoon: "By the facts within my
knowledge and information received from re
liable sources I am convinced that great im
provement in the situation has occurred during
the morning. If depositors are not unreason
able I look for a continuance of this improve
ment "
William A. Nash, president of the Corn Ex
change Bank, eaid: "The situation is clearing
up and conditions are gradually becoming better.
Secretary Cortelyou is rendering great assist
ance. The closing of the smaller banks yester
day showed remarkably good Judgment on the
part of their directors. They are absolutely
solvent, however."
R. 11. Thomas, president of the Stock Ex
change, visited Mr. Morgan yesterday morning
and had an extended conference with him.
A statement was issued by the Bub-Treasury
yesterday which showed that the local banks had
gained 128,705.000 from the Sub-Treasury during
the current week. This, of course, represents In
large part tho deposits of government funds
made with the banks by Secretary Cortelyou.
State Controller Glynn was in conference with
Secretary Cortelyou at the tatter's rooms In the
Hotel Manhattan late last evening. It was sup
posed that Mr. Glynn had under consideration
the funds of the State of New York now held
In state banking institutions.
A meeting of all the members of the Clearing
House committee was held yesterday afternoon
and was In session at the time that the sus
pension of the First National Bank of Brooklyn,
a Clearing House institution, was announced.
Mr. Morgan and James Stillman attended the
meeting. Mr. Stillman, on leaving the meeting
at 8:30 o'clock, said in answer to inquiries by
reporters that arrangements had been made
whereby $10,000,000 would at once be placed at
the disposal of the Exchange money
market.
Mr. Morgan had nothing to cay. Mr. Stillman
said that Clearing House certificates would not
be Issued. The conference continued, although
Messrs. Morgan and Stillman did not remain
after the- middle of the day.
SAVIXGS BANKS ACT.
Depositors Must Give Legal Notice
Before Withdrawal.
Following a run on several savings banka, the
presidents of sixteen of the thirty-two savings
Institutions In this city met yesterday at the
office of. Andrew Mills, president of the Dry Dock
Savings Institution, and decided to require all
depositors to give the usual legal notice before
withdrawing their deposits. This action was
taken. It was explained, to prevent the with
drawal of large amounts from the ravings banks
in this time of acute money stringency. After
the meeting Mr. Mills gave out the following
statement:
"At a meeting of savings bank officers, held to
consider the present existing financial condi
tions, It was deemed wise to require the usual
legal notice for the withdrawal of deposits. This
action was taken In the conviction that It will
best conserve the interests of all depositors."
Mr. Mills added that all the savings banks In
the city would be governed by the action of the
meeting and that the rul" would go into effect
this morning. The banks represented at the
meeting were the Bank for Savings, the Bowery,
the Bronx, the Dry Dock, the East River, the
Emigrant Industrial, the Excelsior, the German,
the Irving, the Manhattan. Metropolitan, the
New York, the North River, the Seamen's, the
Union Dime and the Union Square.
Among the savings banks which took ad
vantage of this law yesterday were the Harlem
Savings Bank. 124 th street and Third avenue;
the Union Dime Savings Bank, at 3.1 d street and
Broadway, and the Guardian Savings Bank, of
Brooklyn. Runs had been started on these in
stitutions, and although they had ample funds
to meet all demands the officers decided that
tinder present conditions it would be best to
delay payment. Notice was given, however,
that the time clause would be waived in the
case of depositors requiring amounts up to ? 100
for current expenses.
The run on the Bank for Saving?, at 224 street
and Fourth avenue. which began on Thursday,
continued yesterday, and about $250,000 was
withdrawn during the day. On Thursday $345,000
was withdrawn and $SfI.OOO deposited. There
were said to have been heavy deposits yester
day, but th« amount was not made public.
Walter Trimble, president of the bank, said:
"This bank is absolutely sound. The run is
the result of local conditions. We are paying
off depositors as rapidly as possible, and will
continue to do so until Christmas, or beyond. if
necessary."
Later in the day. after the meeting of the
bank presidents already noted. Mr. Trimble
stated that the bank might decide to enforce the
notice required by law.
"William B. Aitken. president of the Bronx
Savings Bank, said bis Institution would take
NATURAL
HEALTH-GIVING
REFRESHING
INVIGORATING
advantage of the legal notice if necessity arose,
but thouKht It hardly likely that It would be
necessary. He said there had been no run on
The Brooklyn savings banks will put into force
the sixty-day rule to-day. This will be a prac
tical suspension of payment and will etop the
heavy withdrawals from all of the savings banks.
EXPLAINS BANKS' ACTION.
\ ■ —
Andrew Mills Says Relief Lies in
Importation of Gold.
Andrew Mills, president of the Dry Uoek Savings
Bank, discussed last night the action of the savings
banks of the city in requiring the .leposltors to give
the usual legal notice before withdrawal.
"The savings banks decided to take turn action
mainly because it Is a remedial measure for the
general situation, ho said. "I know the bank of
which I am president and I believe the rent of the
savings banks are absolutely solvent and could
to-morrow stand runs, but to meet decided runs
such as we all would probably have to face In the
morning if we had not taken advantage of the
Kixty-tlay clause would necessitate our having to
draw large bums of currency from Clearing House
banks and trust companies. The effect of such
action on our part would be to embarrass further
those institutions and make a serious situation
more acutely critical.
"The relief for the present situation," he said, so
long as depositors insist upon withdrawing their
money. Is the importation of gold. I Bee that al
ready negotiations are under way to bring to this
country at once from J10.000.000 to t15.0C0.W0 in gold
from Paris and l^ndon. This seems to me to , be
an admirable remedial measure, and 1 think it v. ill
do much to restore public confidence and relieve
embarrassment.
-I do not believe that there is anything funda
mentally wrong. I believe that even those banks
and trust companies which nave closed their doors
are solvent and will. If given time, be able to pay
their depositors 100 cents on every dollar. Of
course, the stockholders may suffer to lome extent.
That cannot be determined yet. but I will Bay 1 do
not think the depositors will lose at all.
•The situation Is unquestionably serious, but It
would not be If depositors would use good Judg
ment and let their deposits stand. Every depos
itor who withdraws his account now acts against
his own best Interests, but what can you expect
of the general mass when men of Intelligence get
panicky and do that very thing?
"There Is undoubtedly at present a great de
mand for currency, and the demand Is so large
that the supply la overtaxed. However, despite
the failures, or I should say the closing of some
banks, to-day. 1 b^llevo the situation Is better
than it was twenty-four hours ago. and shows
elgns of clearing.
"Yesterday we, the presidents of the savings
banks, got together and discussed the question of
enforcing tho sixty-day provision. We decided
then to wait another twenty-four hours before
doing co, hoping that developments would be of
such a nature as to render such action unneces
sary. This afternoon we held another conference
and we decided to enforce that provision. Acting
unitedly puts us in better position than acting
singly. Now that we have all taken the Fame ac
tion, the public will probably reason that we sim
ply did It as a Fafeguard to the Interest of the
depositors and our own Interests, which is Just the
truth.
"Of course, In the morning we. all expect a crowd
of depositors asking for their money; we will sim
ply tell them that they can withdraw it after giv
ing us the notice required by law. Of course, there j
will be more or less discontent, especially from
the foreign and more Ignorant element, but we do
not expect any serious demonstration. At the end I
of sixty days every depositor who wants to with
draw his account can certainly do bo. I bellevo
all the savlngß banks are in safe and good condi
tion, and the depositors are In no danger of los- i
ing any of their money."
STOCKS RALLY SHARPLY.
Return of Confidence and Heavy Fall
in Sterling Exchange the Factors.
The panic and demoralization -which marked
Thursday's stock market were not repeated in yes
terday's dealings, and on the drop in sterling ex
change stocks rallied sharply and most of the
market leaders made substantial net gains. At the
close the tone was firmer and the feeling among
brokers more cheerful than for several days.
The market was decidedly nervous throughout the
session, end there, were periods of weakness and
strength alternately, according as the news of the
day was good or bad. There was an element of
firmness, however, even when prices were weak
ening, that has not been seen of late, and It caused
the belief to become widespread among the traders
that there would be no repetition of Thursday's
demoralization.
Fears of a stringency In call money, which pre
cipitated the slump on Thursday, were early Bet at
rest by the announcement that the $25,000,000 lent
by tho Morgan pool would again be accessible for
those who needed it. As loans made yesterday
carry over until Monday, this news had a most com
forting effect. Money on call got as high as 75 per
cent, but the pool money was lent at an average of
20 per cent. At the close there wt-io many brokers
who still wanted money, but then were takf n care
of aa fast aa they applied to the office of J. P.
Morgan & Co.
Prices of American stocks In the London market
showed gains of large proportions throughout the
active list, with St. Paul, Union Pactnc, Illinois
Central, Reading and the other active internationals
up from 2 to 6 points. Oddly, the local market took
no notice whatever of these gains, but opened at
Just about Thursday's closing level. The undertone
was rtnn, however, and in spite, of the fact that a
tew stocks m !e new low records for th<- current
movement, there was no panicky weakness at any
time during tho snsalon The closing rally waa de
cidedly sharp and left prices of most active )ssu«:h
at substantial net gains for the day.
Union Pacific, which Bold an low as 104 H. rallied
to 109% and closed at 109, a gain of a points
from the low price of Thursday. Tho action of
Union Pacific was reflected to a greater or lesser
extent in all the other active issues. While the
market was having alternate m>ellß of strength and
weakness, the following stocks sold at new low
prices for the y»>ar: St. Paul, 100 % ; Consolidated
Gas. 74; Delaware & Hudson. 126^4; Illinois Cen
tral, 118; Louisville & Nashville, 92%; Manhattan.
100%. and Southern Pacific preferred, 100 »^. Most
of them rallied sharply before tho close.
The violent fluctuations in specialties which have
been such a feature of late wore not bo conspicuous,
price changes in this class of Mocks assuming a
more normal phase. The only striking exception
was a gross loss of 25 points In New York and New
Jersey Telephone stock on sales of four hundred
shares. The stock rallied only 4 points from the
low price. Total sales were somewhat less than
on Thursday.
DEPOSITOR OVERCOME BY EXPOSURE.
Murmuring 1 over and over again in a dreary
monotone, M I must have my money," Arthur T.
Simpson, fifty-five years old, was found almost
unconscious In ■ hallway adjoining the Dollar
Savings Bank, Third avenue and 14Sth street, yes.
terday morning. He had been waiting at the' bank
since Thursday afternoon, and was taken to Lin
coln Hospital suffering from exhaustion «md ex
posure.
NEW-YORK DAILY TIJTIUNK. SATURDAY. OCTORER 26, lWt,
WESTIKGHOUSi: SOUND.
Receivers Optimistic at Beginning
Work in Pittsburg.
tUy Telegraph to The Tribune]
Pittsburgh Oct. 25. — The receivers of the West
lnghouse Electric an.l Manufacturing Company
met late this afternoon and began work on the
company's affairs. At the close of the meeting
to-night, one of the receivers said that the af
fairs of the company are in much better shape
than had been expected, and that there is such
a largo amount of business on the books that
there must be no diminution of the working?
force, which amounts to thirteen thousand men
and women. He stated that new orders are
coming in as though th« company was person
ally managed by Mr. Westinghouse, and that
the operation of the big plant at East Pittsburg
is being conducted as before the receivership.
W. H. Dormer, president of the Union Im
provement Company, and former president of the
Union Steel Company: William McConway,
president of the McConway-Torley Company,
and E. E. Keller, receivers; of the Weßtlnghouse
Machine Company, met to-day and began a
thorough investigation of the affairs of that
company. Mr. Dormer said to-night: /
"We are much pleased with the outlook. We
regard the situation us very good. We rind
$4,000,000 of very profitable contracts on the
books, and we do not look for it to take long to
have the affairs of the company In splendid
shape. The company has been doing an Im
mense business, and the whole trouble Is that
it has grown far too fast for the operating cap
ital."
Officers of the Farmers' Deposit National Bank
declared to-day that they do not hold an« of
tho Wostlnghouso paper, and have not held any
for two years, and say th.it because or this T.
Hart Given, president of the bank, was selected
as one of the receivers for the Wentlri^houso
Klectrlc Company. It Is stated that nono of
the receivers represent any banking Institution
that lias paper of tho company.
It is stated to-day that tho affairs of tho
Wcstlnghousa Machine Company have been
fouud in such 6hape that the receivership will
n&t be of long duration, and It is hoped that
the plants can be turned over to the stockhold
ers In three or four months.
As an evidence of the confidence of Pltts
burgers tn the Westinghouse Airbrake Com
pany, which has not been affected by the other
receiverships, offers were made to-day for large
blocks of Airbrake at IL'.Y The par of the
stock is 60, and it was stated that several large
Interests stood ready t<> take all of the stock
that could be obtained at thi* price,
Theodore W. Belman, Edward W. Childs and
Charles li. Hill were appointed receivers for
this federal district of the assets of the West
inghouse l^ump Company, a Pennsylvania cor
poration, with a Joint bond of $1,000,000, by
Jud^e Ward in the United Btates Circuit Court
last night.
Tho uppolntmeiit vf in -elvers was, made u« the
result of a Mil or equity llit-d yesterday la the
United States Circuit Court of New Jersey
against the corporation by \Veptlnghouno,
Church, Kerr .v Co. and the Cooper Hewitt
Electric Company, which resulted la tho np-
IK>int:nent at Trenton of Theodore "W. Belmaa
and I>rury W. Cooper as. r>" stvei •
The first named complainant allegex that
$137,212 is due from the Westlnghouse Lar^p
Company, and thut $IS3 Is due t» the Cooper
Hewitt company It is alleged that the W-sl
lnghouse Lamp Company ha* an office anJ
warehouse in this <lty at Nob. f>lO to r<.54 West
~d Btreet, where its books of accounts are
kept and its output of lamps manufactured.
It ulso has on hand, it is alleged, stock of tho
WetttßghouM Metal Filament Lar.n« Company,
of Londcn, England.
The receivers, It la understood, Jj.vv.* Hlready
tak'-B charge of the corporation's ufTalrn
IMPORTS XOT AFFECTED.
Foreign Trade Increasing Despite
Present Financial Conditions.
Statistics given out at the New York Custom Uoum
yesterday and reports received from Boston, Phila
delphia, Baltimore, Now Orleans and Han Kran
clsco ■ how that tho uiiHcttl«vl conditions now pre
vailing In financial circles hay« had no unfavorablo
Influence on the importing buaineus of th« country.
Henry C Stuart. Acting Collector of the Port, said
last night that the entry of foreign goods hud not
been curtailed. On the contrary, the average daily
receipt of merchandise this week was. considerably
moru than for the corresponding •week of a ycur
ago.
"Of course," Mr. Ftuurt mild, "If a genuine ponlo
swept the country, wo would feel ltd effects in re
duced Import* Up to this time, however, nothing
of the kind has occurred, und we uxe not looking
for tiny falling off In the entries."
Other otllce.ra of the customs agreed With th»
acting collector that there win v. general tendency
toward largely Increased importations.
Prominent representatives of importing interests
Bald yesterday that the financial stringency wan a
matter of email concern to them. No curtailment.
It was added, would result In the volume of im
portH, at New Tork or elsewhere, A member of
one linn, which pays duties aggregating more than
$1,000,000 a year, Bald thut there was no cause for
alarm, and that bis firm had received no cance!)a
tionti of or<J« rs and expected none.
CITY HAS $500,000 TIED UP.
Controller Says He Believes Institutions Will
Be Able to Pay in Full.
Controller Meiz said resterday afternoon: "Tii^
city lias on deposit In the institutions that havn
clopod lens than half a million rluiiar.-i. I do not
recall the cud figures, but tho Knickerbocker
Trust Company hn* the ctty's largest deposit of all
the inßtltutluiiH lliut have cloßod their doors."
"Do you think the Cltjr will lofe ll» ruont-y?" he
was nnk<<i.
"1 do not," he emphatically replied. "I think the
companies will be able to pay In full later."
Tho Controller said be was not a director or offi
cer In any bank or trust company, having f«lt It his
duty to resign when he became Controller.
Senator W. Murray Crane, of Massachusetts, wan
one of Secretary Cortelyou's callers yesterday af
ternoon. The Senator eald lilh visit wan purely a
personal and social one, and that it had no bearing
whatever on the financial situation. Mr. Crane .sn.ld
that he had received reports from many financial
centres in I>lh own state which led him to believe
that everything was in good condition In Mastia>
chUHette and that there was no cause for worry
among Bay State depositors.
PROTECTING NEVADA BANKS.
Ooldneld. Nev.. Oct. George Wlntleld author
ized the statement yesterday that he and Senator
Nixon were using their entire finances tor the
protection of the banka In which they are inter
ested. The bank* are at Reno, Tonopah,' Goldfleld
and Rhyollte. The Goldfield Consolidated was
forced to lay off a large number of miners yes
terday by reason of the refusal of the sampling
Works to accept ore.
DATE OF WOODRUFF M'CARREN DEBATE.
Timothy L. Woodruff, chairman of the Republi
can State Committee, and Senator Patrick H. Me
<'arrt-n. Democratic leader of Brooklyn, will meet
(ti debate next Tuesday night tit Prospect Hull.
Brooklyn. The question will be. "Resolved, That
President Roosevelt and his policies are respon
sible for the present financial flurry," with McCar
ren taking the affirmative and Woodruff the nega
tive. The naming of a chairman has been left to
the Democrats.
DENIAL FROM JOHN WANAMAKER'S.
Among th» njmori afloat in this rUy there have
been mf.ny affecting a number of leading mm
mtrcUl houses. These rumors have evidently h<v>n
started to «Jfect Ui» stock market. A man high in
authority In the firm of John Wanamaker said
yesterday:
"The rumors that have been in circulation re
garding this firm recently are ridiculous and with
out foundation. The affairs of the firm were never
in better shape than they are now and the busi
ness of the New York store never larger. The
business of the latter store so far this month has
bern the largest of any month since the store wan
opened, and we are endeavoring to make It a thor
ough rcoonl breaker. Everything Is ail right. We
are able to gel all the goods we want and there Is
no trouble. "
EAST SIDE BANKS TJNWORRIED.
No Excitement There Over Disturbed Finan
cial Conditions.
The excitement of the depositors lit trust com
panies end Wall Street batiks has not a* yet
caused a tremor among tho patrons of the East
6id» private bankers.
Thf*« banker* have an association of their own.
membership, to which can be had only after the
applicant's financial anil moral responsibility la
satisfactorily passed upon.
Member* of this association make it a rule to lend
only on real estate mortgage*, and these accommo
dations ar»» principally extended to their own pa
trons. The depositors know one another and In tlua
way keep truck of their banker's transactions.
Joseph B. Marcus ha« what Is said to be th«
largest prtvnte banking establishment on the East
Hide, at Ijnianoey and Orchard ntre«ts. There ar*
forty-two thousand depositor* on his books, with
an aggregate of *6.«J0,Q00 la deposit*. if* pays 4*%
per cent Interest. »
•Th« depositors In this, an well *• ether banks
of gfte East Bide, havn acted admirably during th«
present crUU," said Mr. Marcus to a Tribune re
porter. They have confidence In us and do not
seem to b*» worrying.
"The Eoat Slder maken It a rule to «ay» 25 per
cent of his Income I hays known Instances where
a man or woman has made a de-poult with us one
week aft. rival with money earned here. Tills
continues until a competency la reached, then a
real «-niato Investment Is made, and mo on. until
fate has been won over and rluhea begin to flow
into the lap of the economic person.
•It would surprise you to ncr> th* number of
children we have among our depositors, and they
are u» shrewd as their elders
RECEIVERS FOR. HEINZE AFFILIATION.
Pennsylvania Knitting Mills, of Reading-,
Will Continue, Under Test, However.
Philadelphia, Oct. 25.— The Pennsylvania Knitting
Mills, of Reading. manufai'turiTa of hosiery, a
Uetnsa company affiliation, ugatn.it whom a peti
tion In bankruptcy was tiled yesterday, had re
cilvor* appointed for It to-day by Judga McPher
son, in the United Stated District Court. The re
ceiver* are Jacob Haver and George W. Chapin,
both of this city. The cause of the concern 1 * em
burrufisment 1m lnld to the pr»n*nt unsettled finan
cial situation and attachments obtained by credit
ors In the New York courts. Th© liabilities are
placed at about IGUO.OOO and the Biwota at 5210.000. '
The recclvern were permitted by the court to
operate the mills for three v/etka. and at the end
of that time to report to the court whether a con
tinuance of the business would bo profitable. There
arc 336 persons employed at the plant at Reading.
Th« liabilities include {30.000 in merchandise
claims and $400,000 In stock and bonds of the con
cern, which are controlled by Hnlnze, and al.io a
cash loan of {150,000 advanced by Helnze Interests.
RECEIVERS FOR SOUTHERN STEEL. '
Company Expected to Continue Operations
Without Interruption, However.
Hlrintnghnni. -Via., Oct. "s.— According to advloe.s
from Huntsvllle. United Btates Judge O. R. Hund
ley to-day appointed E. O. Chandler. J. O. Thomp
non and Morris* Alder, all of Birmingham, receiv
ers for tho Southern Steel Company. Sterling A.
Wood, also of IMrmlngham, was named as special
master in tho rane.
It la expected th« plants of the company will
continue without Interruption.
3T. LOUIS WANTS BOTH CONVENTIONS
JBt Telegraph to The Tribune.]
St l,oul«. Oct. 25.— Tho Bt. Louis Business Men's
League unanimously decided this afternoon to
"Stand pat" on lta communications sent to the
nations! committees asking that the. Republican
und LH>mocru.tle national conventions be held here.
The league's members believe the Coliseum can U»
built In time.
B. &. O. HEAD THINKS OUTLOOK GOOD.
[By T«.l«grauh to To* Tribune. 1
Baltimore. Oct. 25.— President Murray of the
Baltimore & Ohio Railroad, In speaking of the
financial situation to-day, said that while the effect
of the present disturbances might be felt In various
lines of business. it was likely then* would be some
reaction, but he did not think the outlook nearly
bo bad as some persona Imagined
"The business outlook is good," said Mr. Murray.
"The Baltimore & Ohio's business Is keeping up
well and Is expected to so continue. The shortage
of cars Is not so bad as a year ago." Mr. Murray
said It was unlikely the Baltimore & Ohio would
order any new equipment this year.
CRANE REASSURES UNRULY DEPOSITOR.
Qustuve Oman, a brawny Flnlander, appeared be
fore Magistrate Crane In the Harlem Court yester
day afternoon, on a charge of disorderly conduct
while waiting to draw his deposit of $500 from the
Harlem Savings Bank. The magistrate let him go
on condition that he should leave his money at the
bank and mult* no attempt to draw it during th«
run.
"Why, I.hay« much morn than you on deposit."
said the magistrate, "hut I «m leaving it in. Th«
money tit much safer in the bank than It would bs>
In your socket, my man."
Jr A matter lff\
r of choice fcyV
Which will you haye — v^
dry, chalky, tasteless X^T
oyster crackers dipped
out of a barrel, or
Oysterettes
dainty, appetizing bubbles of
crispncM that melt on your
tongue -with a savory suspicion
of salt and add zest
to your soup or oysters?
CC in moisture
**-«». am proof packages
WS% NATIONAL A
S^ ll NATIONAL A
\ W BISCUIT Jr~
i.vf COMPANY &**
PROVIDENCE CEISIS MET
After Eventful Day Banking Circles
Feel Confident.
Providence, R. 1., Oct. 25. Although a tem
porary receiver has been appointed for one trust
company, another company Is enforcing the rule
requiring a notice of ninety days for the with
drawal of deposits and a third has withstood
throughout the day an unusual drain caused by
the withdrawal of deposits. It is believed gener
ally In Providence banking circles to-night that
tho crisis has been met and passed successfully.
The bank (or which a receiver was appointed
was the Union Trust Company, an Institution
with headquarters at Westminster and Dorranca
streets. In this city, and operating branches in
Olneyvllle, Central Falls and East Greenwich.
This la the bans on which the run started yes
terday noon and continued until the close of
business hours. Long before the hour of open-
Ins; to-day there was a long line of depositors
waiting to withdraw their accounts, and It was
decided by the Lank officials not to open the
institution. Notices were posted In tho head
quarters of the bank In thl3 city and in the
three branches at 9 o'clock that the bank would
not open on account of the stringency of the
money market. •
The next step was the application for a tem
porary receiver. The petitioner was Archibald
O. LoomlH, one of the vice-presidents of the In
stitution, who In his petition alleged that the
company was insolvent. Justice William H.
Pwectland, of the Superior Court, appointed
Cornelius S. Sweetland, another vice-president
of the company, temporary receiver.
The New England Trust Company, with bank-
Ing rooms at Westminster and Eddy streets,
put Into operation to-day the rule requiring all
depositors to give ninety days* notice of the
withdrawal of deposits. The officers of the bonk
declined to discuss the matter, referring all In
quiries to General Charte* A- Wilson. th« bank's
counsel, who stated that. In his opinion, the
company was in no condition to stand a run
and that the ninety days' rule had been In
voked for the protection of the bank and Its
depositors. According to the last report made
by the New England Trust Company to the
state auditor the resources of the Institution
were $tW2.BS4, against a capital stock of |140.
000, deposits of $404,7.V» and undivided profits
of $27,754. William H. Dunham Is president of
1 the company and William A. Taylor Its vice*
president and secretary.
The chief Interest of the day centred, how
ever, about the Industrial Trust Company, at
Westminster and Exchange streets, one of the
leading financial institutions In Now England,
operating nine branches throughout the states
At this bank a run was In progress throughout
the day. The bank orllclals, fearing that the
timidity of the depositors might be affected inl
versvJjr by tho general financial situation, were
prepared for the emergency, and four puylng
tollers were stationed at the windows ready to
pay the depositors who wished to close their
accounts. The tellers worked rapidly, paid all
demands and at no time during the day did the
lino of person* seem to grow faster than the
tellers were able to core for It. The bank stood
the strain successfully and when business closet
at 3 o'clock there were no signs of excitement
or disorder on the part of the depositors.
During the day a committee of nine prominent
business men of tho city, in their desire to avert
a panic, made an examination of the books and
securities and cash of the Industrial Trust Com
pany and Its branches, and reported that the In
stitution was In sound condition.
When business closed at the Industrial Trust
Company this afternoon the report of the com
mittee of nine was read to the crowd, after
which Arthur L,. Kelley. one of .the directors,
addressed the depositors and told them that one
person who had withdrawn his money had again
deposited It. as he was satisfied that th« bank
was on a sound basis. H© extended an offer on
the part of the bank to receive any other books
which depositors might care to return on con
dition that they also draw Interest as if they
had not been taken out. As a result of this an
nouncement several persons regained their con
fidence and handed back their accounts. Waldo
M. Place, assistant treasurer of the Industrial
Trust Company, stated to-night that the bank
would be open for business as usual to-morrow
morning.
The caua* tor the extraordinary demands upon
the three trust companies is not absolutely
known, but they are believed to bo due In part to
the New York situation and partly to the fact
that Marsden J. Perry, first vice-president of
the Union Trust Company, was supposed to be
closely connected with the Trust Company of
America, the New York Institution on which
such unusual demands have been made for the
last few days.
In a statement late to-day Mr. Perry said that
the situation seemed very encouraging and that
he was confident that the bank would be re
opened. He said, however, that he could not
Only One "BROMO QUININE." that Is *
Laxative flromo Quinine g§ fj%J&_ \ on ' vtry
Cures a CoM in OnTD^TcrSbi 2 Day* **■ >**&7r9*r%^***~ 2*
place an exact date for such an event TTndceT
ordinary conditions, he said, the Union Trusf>
Company could have met the demand, bat at the
present time and under existing apprehension
the result of an unusual ran which threatened
their Institution would have been very d!sas«
trous. He bald that the time which was ptm^
by the suspension and the appointment of 4|
temporary receiver would aid greatly In restore
ing confluence.
i
Pawtucket. R. I. Oct. 25. — Following the post*
Ing of the ninety-day notice to depositors by thej
local branch of the New England Trust Com*
pany. of Providence, and the closing of the Ceiv*J
tral Falls branch of the Union Trust Company*
to-day, runs were started on all the banks ir»
Pawtucket. Many depositors appeared at thai
Slater Trust Company's building, and the local)
branch of the Industrial Trust Company, >•%
Providence. The number of withdrawals of ac^
counts at the County Savings Bank and thej
Pawtucket Institution for Savings was not ta\
large as at the trust companies. With the ox v
ceptlon of the New England Trust Company. aIL
the banks in the city met the demand wlthoisS
difficulty.
Boston, Oct. 25.— The stability of Boston trust
companies has been satisfactorily proved by ad)
official test made two days ago. according tsj
announcement made to-day. It is learned thaA
on Wednesday Pierre Jay. chairman of the]
board of state bank commissioners and exam^
lners. who Is in charge of the trust compani^e)
In this city, made an unexpected call on all than
trust companies and found the. actual reserv#
fund 2t5.76 per cent and the legal reserve 244?
per cent. The latter figure was 1.47 per cen#
higher than the legal reserve on October 21, 19<M^
MONTREAL STOCKS FALE*
Mann Heavy Declines — A Relief
Toward Close of Market.
Montreal. Oct. — Ruthless slaughter of
stocks marked the dealings on the Stock TZx-*
change here to-day, and declines ranging fron\.
2 to 9 points took place. Broken who had ao-c
counts on which margins were aN>nt exhausted
threw stock over for whatever It would bring*
Toronto Railway broke 9 points, to MH. Novaj
Scotia Steel 8, to 45. and Montreal Power 5. t«J
7 si,. Other stocks were weak, declines ranging
from 1 to 3 point* At no time since the llqulda
tlon set In has the market broken no precipi
tately, with the exception of the break In De
troit United two weeks ago. when the dividend
was passed. Toward the close there was a flrm«f
feeling.
PITTSBURG CONFIDENT.
Stock Exchange Closed, but Presl*
dent Expresses Satisfaction.
Pittsburg. Oct. Kw— The directors of the Plttaburg
Btock Exchange at a meeting held this morning
decided to keep the exchange closed to-day. la
view of the short session to-morrow it Is believed
trading will not be resumed before Monday morn
ing.
Robert C. Hall, president of the. Ptttsburg Stoc'4
Exchange, expressed satisfaction with the local
situation to-day. He sold:
•I think conditions In Pittsburs; are normal. and
with wise management will remain so. The flurry
has accomplished a good point, too. It has causal
a closer affiliation between the Stock Exchans*
and the Clearing House Association banks. *'«
were appealed to In a time of need and e*err
member of the exchange suspended hta business
for the good of th» community."
A feeling of confidence has overspread the en
tire situation In Plttaburg. and a talk with prom
inent bankers this morning elicited th» information
that "affairs were progressing normally and cot*
ditions were in good shape."
BALTIMORE BRANCH BANK SUSPENDS,.
Baltimore. Oct. 25.— The run on the East Branch
of the Home Bank continued this morning, and
shortly before noon the depositors who were In line
waiting to withdraw their money were Informed
that the bank would take advantage of a charter
provision which permits the Institution to demand
sixty days' notice of a depositor's Intention t«
withdraw bis or her account.
A member of the firm of Bernstein. Cohen & Co..
owners of th« bank, to-day admitted that the run
has been of much larger proportions than had beea
reported. He said that it had begun on Monday,
and that of a total of savings deposits of $»•.«•
or thereabouts approximately jijO.ua) tuul l** a
withdrawn. Only the East Branch of the bank is
affected, and this only in Its savings department,
in which th« depositors are nearly all foreigner*
of the most Ignorant class.
A number of the mow Intelligent ha.v« shown
their confidence by making deposits, sun* of then
of considerable sis*, while - the run ban been ■
progress.
C. T. BARNEY'S AGENT IN DEAL.
Ashbel H. Barney took title yesterday frooi
James R. Hay to a parcel 54.11x100 feet, at th*
southeast corner, of 153 d struct and Broadway*
The expressed consideration was nominal. Mr.
Hay usually represents Charles T. Barney la ■»
realty d«Us.