Tonopah daily bonanza. [volume], October 24, 1907, Image 1

About Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929

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Tonopah Daily Bo
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WEATHER
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0 VOL. Ill NO. 1
roNOrAH NEVADA. TIUT.SDAY MOUSING. ol'TiHir.U -. 1H07.
riuci: 10 cent
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Oo Fast Special Train
For Southern Nevada
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Tonopah Banking Corporation,
John S. Cook & Co.'s Banks
at Goldfield and Rhyolite
Will Then Have $ 1 ,000,000 in Gold
NYE- AMP 0UWISBY BANKS TO CLOSE
UNTIL THEIR KESEKVE AMVES
State Bank and Trust Compaiiy In this Gity
Closed Its Doors Yesterday. -
The State Hunk hihI Trust "Company closed its doors yesterday in
response to instnietions from the dlrerlors ut Carson.
Half a million dollars in golden twenties left Sacramento last
night for the Wingtteld and Nixon hanks of Tonopati and Gold
field, and will arrive here this afternoon.
The directors of the Nye and Ornishy hank met last night and
decided, in the interests of their clients, that it would 1- the pol
icy of wisdom to close the hank for a few days, until they could
get in their reserves, which are ample to pipr every depositor.
(icorge Wingficld was liere and offered any assistance to the
Nye and Ornishy that it might- need. The directors of the Xye
and Ornishy stated that they were not In need of any assistance,
further than sufficient time in which to get in their reserves from
various parts of the country. Telegrams were sent out for the
reserves last night and they will le started for Tonopah this morn
Ing. The Tonopah Hanking Corporation and the Nevada First Nation
al hank will resume business this morning as usual, with the ex
ception that the National hank w ill open its doors at 8 o'clock,
two hours before hanking hours.
ICumors reached here last night from various point that Jv-
ernor Sparks would declare the next, four or Ave flays legal
holidays, us was done in the Ha n Francisco disaster, for the pur
pose of giving the banks time in which to get into condition to
meet the demands which might he made upon them.
The situation in the East is looking decidedly better, and if
the people bear patiently with the banks, there is no doubt that
their troubles will be over in a very few days. t
llockefcllcr, Morgan nud the I'liilcd Nlat; government have
come to the aid of the distressed institution!! in the Kast, and
there is no doubt that the crisis has lwen nipped in the bud, and
a public calamity averted.
San Francisco Loses Nothing
By Associated Prets. . 1
SAX FRANCISCO, Oct. 23. No losses have been sustained by
the local banks on account of the closing of Nevada banks.
The closing of the doors of tho
State Bank and Trust Company was
a shock to the public. With a con
tinually declining market and securi
ties going lower In price each day.
It. was apparent that something in the
way. of financial distress would hap
pen. The State Bank and Trust
Company had been carrying many of
its clients for a long time on the only
securities they had to offer, and the
bank carried them too long.
The directors of the bank met at
Carson yesterday morning and sent
instructions to the branches at Tono-'
pah, Goldfleld, Manhattan and Blair
to suspend until further notice. -
The shock to Cashier Cushman was
as great as it was to the general pub
lic. He knew nothing of what waJ
doing until the receipt of a telegram
at 10:30 o'clock, instructing, to close
the doors. Later in the day he made
a statement for the press. In which
he said that the banlj had tried to
carry its clients on their securities,
throughthe hard times, and in do
ing' so held up the accounts until the
securities were too low a figure to
be realized upon.
"If we were to have closed up bU
weeks ago," said Mr. Cushman, "we
'would have ruined some ot the big
gest men in the country; we would
have broken nearly everyone in -Tonopah.
But we carried them, and will
still carry them. We have suspend
ed temporarily, but our assets are
sufficient to pay doflar for dollar to
every depositor."
(Continued on Page Four.)
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Assets Three Times Liabilities
,
' By Associated Press.
p'lTTSB.URG, Oct. 2?. Receivers were appointed tonight for
the Iron City Trust Company. Papers filed in court show the
company has asset exceeding $47,000,000; liabilities to deposi-
tors about $17,000,000.
Rockefeller Lends Helping Hand
-
Or
NEW YORK, Oct. 23. John D. Rockefeller has ta&en an ac
tive interest In the present financial situation and has arranged
to loan large sums to a number of New York financial institutions.
He said that instead of withdrawing any of his money from banks,
he Is co-oper'atlng with others in helping them meet that which
he firmly believes to be only a temporary crisis. He said: "Every
one having the good of the country at heart should by word and
deed lend a hand now to re-establish confidence. I propose to do
my part to the full extent of my resources."
President Returns From Trip
4 By Associated Press.
WASHINGTON, Oct. 23. President Roosevelt returned to the
White House this afternoon greatly pleased with his trip.
Money Went to
90 Per Cent on
Small Call Loans
Then Drops to 6 Per Cent.
By Associated Press.
NEW YORK, Oct. 23. The failure
of the Knickerbocker Trust Company
to open its doors today and the new
run precipitated on the' Trust Com
pany ot America by Its request for
assistance from other Institutions," of
fered surface evidence of today's
trouble. Then came theannounce
ment of the closing of the Pittsburg
stock exchange and the reported em
barrassment of the industrial com
panies as a cause. The sales of vari
ous stocks for Pittsburg account -in
New York were enormous and were
a prime influence In the weakness of
the day. Westinghouse Electric, for
which the market is narrow at any
time, was slaughtered in urgent 11-i
quldation. A rate of 90 per cent was
made on a small call loan. In spite
of the hasty fortifying of reserves
which was going on, many powerful
banks renewing standing call loans
at six per cent and at other rates ma
terially below 70 per cent. The sup
plying of funds in this way was part
of the' far-reaching policy to keep
down panic and to save the situation
The sub-treasury statement showed
a gain by banks from that institution
of $4,311,000 on yesterday's opera
tion and it was known that the pres
ence of the Secretary of the Treasury
Insured additional relief measures by
the government to safeguard the po-
(Continued on Page 4.)
Pittsburg Exchange Is Closed
4 : ' - . ' - '(
PITTSBURG, Oct. 23. The flurry in local financial circles,
caused by an embarrassment of four concerns (of the Westing-
house interests, quickly ended hy'e today by the prompt action
of the Pittsburg Clearing- House Association and the Pittsburg
stock exchange. Tonight the Westinghouse Electric and Manu-
'. facturing Company, the .Westinghouse Machine Company and the
Security Investment Company, the holding company for the West-
inghouse companies, are in the hands of a receiver appointed by
Judge Ewlng of the United States Court. A fourth concern, -the
Ernst Lamp Compauy, will be turned over to the receiver in the
morning. The Pittsburg stock exchange, which closed promptly '.
this morning when Informed of the situation by the Pittsburg
Clearing House Association, will likely remain closed tomorrow.
v The action is taken for the purpose of preventing unnecessary
sacrifice of values by heavy liquidation of stocks. The stringency
of the money market is alone responsible, for the Westinghonse 1
difficulties. t
Trust Company Resumes Today
.
By Associated Press.
NEWYORK. Oct. 23. President .Thorne" of the Trust Com-
pany of North America announced at midnight that his com-'
pany would open for business' at the usual hour tomorrow with "
ample funds to meet all claims. Other trust companies came
to its assistance.