Colonial Trust Company (New York, NY)

Episode Information

Episode UID
1077971294
Episode Type
Run Only
Bank Type
trust
Bank ID
107797 routing
Routing Number
1-0779
Start Date
October 23, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e37adf50c072f9e1

Response Measures

None

Description

The Colonial Trust Company was a branch of the Trust Company of America; both experienced severe runs during the Panic of 1907 but remained open by paying out depositors continuously.

Events (2)
1. October 23, 1907 Run
Cause
Macro News
Cause Details
Systemic financial panic in New York City (Panic of 1907) following the failure of the Knickerbocker Trust Company.
Measures
The bank remained open and continued paying depositors, eventually receiving support from a bankers' pool and government deposits.
Newspaper Excerpt
Sensational runs were begun on the Trust company of North America, the Colonial Trust company the Star Savings bank and the Dollar Savings bank.
Source
newspapers
2. October 31, 1907 Other
Newspaper Excerpt
The run on the Colonial Trust company, a branch of the Trust Company of America, ceased today, all waiting depositors having been satisfied in the first hour after the opening of the office. That at the main office of the Trust Company of America had dwindled today to a few bank runners who were compelled to make their collections from the company's office because collections have to be made by the trust companies in cash, they having no clearing house. Several of the banking institutions which have experienced recent difficulty held meetings during the day to readjust their affairs and resume business and a few runs which have been going on dwindled to a practical close. The enormour extent to which Investment buyers are taking advantage of the declines in the prices of stocks to buy up small lots was indicated today by the estimate of competent authorities that investment buyers have taken 2,000,000 shares of stocks out of the market within the last 10 days. The average value is estimated at $50 a share, making a total investment of $100,000,000. The run on the Colonial Trust company, a branch of the Trust Company of America, ceased today, all waiting depositors having been satisfied in the first hour after the opening of the office. That at the main office of the Trust Company of America had dwindled today to a few bank runners who were compelled to make their collections from the company's office because collections have to be made by the trust companies in cash, they having no clearing house. Several of the banking institutions which have experienced recent difficulty held meetings during the day to readjust their affairs and resume business and a few runs which have been going on dwindled to a practical close. The enormour extent to which Investment buyers are taking advantage of the declines in the prices of stocks to buy up small lots was indicated today by the estimate of competent authorities that investment buyers have taken 2,000,000 shares of stocks out of the market within the last 10 days. The average value is estimated at $50 a share, making a total investment of $100,000,000. The run on the Colonial Trust company, a branch of the Trust Company of America, ceased today, all waiting depositors having been satisfied in the first hour after the opening of the office.
Source
newspapers

Newspaper Articles (11)
1. October 23, 1907 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 23, 1907

Click image to open full size in new tab

Article Text

FINANCIAL DEVELOPMENTS. Knickerbocker Trust Company, New York, in hands state banking department. Sensational runs on Trust Company of North America, Colonial Trust Company, Star Savings Bank and Dollar Savings Bank. Slump on New York stock market ranged eleven points throughout. Pittsburg stock exchange closed on request of clearing house. London and Paris affected. Mayer & Co., members of the New York Stock Exchange, make an assignment, with liabilities of $6,000,000. Secretary of the Treasury George B. Cortelyou arrived in Gotham, Tuesday night. and issued statement declaring that all other New York banks are in a safe condition. Before leaving Washington, Secretary Cortelyou directs that millions be placed with New York banks as soon as the necessary collateral is furnished. Fourth vice president of the Knickerbocker Trust Company says that one man is responsible for the recent flurries in Gotham and intimates that the man he means is Roosevelt. President Roosevelt, in speech at Nashville, unconsciously replies to the charges of the Knickerbocker official and says that there will be no change in his policy.

2. October 23, 1907 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 23, 1907

Click image to open full size in new tab

Article Text

New York, Oct. 23.-The money panfe extended all over New York today and extended to other cities. The Knickerbocker Trust company is in the hands of the state banking department and lines of depositors at all branches of the institution were disappointed. Sensational runs were begun on the Trust company of North America, the Colonial Trust company the Star Savings bank and the Dollar Savings bank. The slump in the stock market ranged eleven points throughout. In Pittsburg the stock exchange was closed on request of the clearing house. London and Paris are affected by the panic.

3. October 23, 1907 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, October 23, 1907

Click image to open full size in new tab

Article Text

Pittsburg Stock Exchange Fails to Open Westinghouse Company and Others Involved Many Runs Started ToSituation is Serious. day is attributed to the inability to se- are just driving out the undesirable New York, Oct. 23. -Westbankers." cure funds and on account of the inghouse Electric sold down to stringency in the money market. 60 on the New York stock exNew York, Oct. 23.-Fourth Vice The amount involved will run up change, a decline of 19% from President Trumbull of the Knickerinto the millions. last night. bocker Trust company blames Roosevelt for the condition in money matNew York, Oct. 23. An appeal Pittsburg, Pa., Oct. 23.-The ters and says that all this disturbhas been made to the government to stock exchange did not open this ance has been brought about "by close the stock exchange until Monmorning, members of the board one man and that a man who knows deeming it advisable that the exday. nothing whatever of the credit syschange remain closed temporarily tem. owing to the. demoralized feeling in New York, Oct. 23.-More than Westinghouse Electric. New York, Oct. 3.-Secretary one thousand were at the offices of The financial district was thrown Cortelyou has made the following the American Trust company when into an uproar at the opening of statement: it began to pay off the depositors at business today when Secretary Hol"I repeat what I said before leav10 o'clock this morning. man and others announced, at the Officials of the concern have aning Washington yesterday afternoon, request of the Pittsburg clearing if for no other reason than to empha nounced that they have over eleven house and at the suggestion of the size the attitude of the treasury demillion dollars on hand in cash with board of directors, that the stock which to meet the demand. partment, it will use its facilities to exchange will be closed for the day. assist in every proper way legitimate Immediately following this, Presbusiness interests, and its action will New York, Oct. 23.- run was ident R. C. Brown issued a statement be prompt and thorough." started today on the Colonial Trust which read as follows: "The national banks of New York company at 220 Broadway, a branch "The Security Investment comCity are in an exceptionally strong of the American Trust company. pany finds itself involved. This will condition. The general situation New York, Oct 3.-The state necessitate the temporary suspension here seems to be well in hand and banking department has taken charge of the Westinghouse Electric comis being looked after by many strong of the Knickerbocker Trust company pany and the Westinghouse Machine and influential men, such as those and it is announced that the doors company, the Nernst Lamp company whose recent action in the clearing of that company will remain closed but the manufacturing companies house received emphatic public aptoday. are said to be in an absolutely solproval. The movement for similar Secretary Cortelyou remained in vent condition. concert of action among the trust New York today and says he will use The petition for the receiver of companies should have a helpful and the treasury funds if he thinks it the concern Lamed it is said will be far-reaching effect. I shall spend the a necessity. made today. day at the subtreasury. The heads of finance say: "We The embarassment of the concern

4. October 23, 1907 The Lake County Times Hammond, IN
Article from The Lake County Times, October 23, 1907

Click image to open full size in new tab

Article Text

HEARD ON THE BOURSE. Miller-We adhere to the position held most steadily, that is to sell stocks on every little rally. There will be plenty of time to buy stocks when the larger interests are accumulating them during a long drawn out dull period which is bound to follow. Bartlett: These are extreme times and require calmness on the part of every one. Things will right themselves and the clearing house committee so far must be commended for the admirable way in which they have handled a difficult situation. Logan-Public confidence has been undermined to such an extent that the buying power in the market is mostly confined to the demands of the short interests. McIntyre-To those who have funds and can buy stocks and take them from the market we would advise buying any of the better class of dividend paying stocks of the rail list. Prices may be forced somewhat lower under the present excitement, but they will come back quickly when the market has been restored and confidence has had a chance to revive. Steinberger, Sinn & Co.-There is a rumor that a receiver has been appointed for the Westinghouse Electric company. Dow Jones & Co.-Morgan told some of his friends last night that the worst of the financial trouble was over and that he was very confident as to the future. New York-The Pittsburg stock exchange has been closed until further notice. Joseph-A feverish market will be seen in specialties. Morgan is buying steel's. Average Pennsylvania and cotton oil. New York-A run has started on the Colonial Trust company, 22 Broadway, a branch of the Trust company of America. The lobby is filled with depositors who want to withdraw funds. Chandler-When the atmosphere is finally cleared the rebound will be very great. New Yorw.-Secretary of the Treasury will be at the sub-treasury all day prepared to handle necessities of banking situation. Town Topics-The banking interests which are supporting the market will not only continue to do so, but the stocks bought with this end in view will come on all the rallies furnishing renewed opportunity for the bears. Bache-There is no certainty as to what the trust company situation will develop today, but we hope for the best. Developments of the last three days will be very far reaching in their effects, the first result will be millions of securities for sale as the loans with the Trust Co's. must be liquidated and that summarily, under the circumstances while we recognize that prices are very low, and, while we expect a good rally from present prices, we can see little reason to load up speculatively. Money is apt to remain very tight. New York.-Treasurer H. B. Fonda, of the Trust Co. of America, states that there is no cause for alarm and that the company has sufficient funds on hand to meet every demand whether for funds or from certifications. Financial Bureau-We believe the turn of the tide is now at hand. We would buy without hesitation the following stocks: Atchison Preferred, Union Pacific, Southern Pacific, Northern Pacific, Union Preferred, Northwest, Reading, Atchison, Car Foundry Preferred, Pressed Steel Preferred and Locomotivé Preferred. Ridgely-It is rumored that clearing house certificates will be issued and that the worst is over. It is rumored that clearing house certificates will be issued and that the worst is over. I should not be surprised if this proves correct. There surely must be a bottom somewhere and those who can afford to buy stocks and protect them have a cinch.

5. October 24, 1907 Mexico Weekly Ledger Mexico, MO
Article from Mexico Weekly Ledger, October 24, 1907

Click image to open full size in new tab

Article Text

A run was started on the Colonial Trust Company, No. 22 Broadway New York City to-day. There is great excitement in financial circles, and the stock exchange at Pittsburg, Pa, was closed.

6. October 26, 1907 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, October 26, 1907

Click image to open full size in new tab

Article Text

APPLICATION OF CURB. Conditions Settled Into Waiting Attitude With Late Upward Spurt. New York, Oct. 25.-The stock market reflected an early curb to the exuberance of cheer which market the revulsion late yesterday from the depths of despair into which it was slipping. After the check had been applied conditions settled down into a dull waiting attitude with a late upward spurt. Activity was on a small scale. Prices generally were pretty well sustained, but weak spots constantly developed which showed the occasional necessity of additional liquidation. It was said that the only buyers were bears who had shorts to cover or operators who had cash in hand. For most of the day funds offering on call were simply non-resistent. Brokers waited around in the loan crowd at the stock exchange in large numbers and with heavy requirements to be met to tide them over until Monday. The borrowers who secured portions of the $25,000,000 loaned late yesterday by the bank ers' pool found themselves in comfortable circumstances to-day and were allowed renewals at the rate of 20 per cent. Bankers were said to be advising stock brokers against undertaking any business except for cash, the effect being to relieve so far the money stringency. The amount of business done on this basis was surprisingly large and the amount of cash which changed hands in brokers' offices during the day might afford a clue to the destination of some of the funds that were being withdrawn from deposits with banking institutions. The considerable number of additions to banking and trust company institutions whch closed their doors, most of them to check runs, had little effect on market sentiment. The belief that the situaion was clearing in the financial center here in New York was the paramount influence on sentiment. The dwindling of the runs of the Trust Company of America and its Colonial Trust company branch was accepted as the subsidence of the greatest danger. Further deposits of government funds were made with the banks and the ablest financial minds in the country continued to devise means for improving the situation. The constant evidence of this activity had a soothing effect on apprehension. From the strictly stock market view, when funds appeared in the loan crowd late in the day supplied by a bankers' pool to the extent of $15,000,000 and was loaned on call at the stock exchange, it meant that stock market needs were supplied until Monday. Prices rose rapidly then and closed strong at the best prices. It was hoped that by Monday next when the loans must be renewed, the situation will be so far cleared up that the money stringency will be sensibly relaxed and saner conitions established. There was contind evidence of painful liquidation in laked stocks to-day and the same as true in even greater degree in the ond market. Some sensational delines on small transactions were thus occasioned. Bonds were weak. Total sales par value $4,556,000. U. S. 2s declined 1-8 and the 4s registered 1-2 per cent. on call.

7. October 26, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 26, 1907

Click image to open full size in new tab

Article Text

NEW YORK STOCK MARKET. Features of the Day's Dealings in All the Leading Stocks. New York. Oct. 25.-The stock market reflected an early curb to the exuberance of cheer which marked the revulsion late yesterday from the pths of despair into which it was slipping. After the check had been applied. conditions settled down into a dull waiting attitude with 2 late upward spurt. Activity was on a small scale. Prices generally were pretty well sustained. but weak spots constantly developed which showed the oceasional necessity of additional liquidation. It was said that the only buyers were bears who had shorts to cover, or operators who had cash in hand. For most of the day funds offering on call were simply non-existent. Brokers waited around in the loan crowd at the Stock Exchange in large numbers and with heavy requirements to be met to tide them over till Monday. The borrowers who secured portions of the $25,000,000 loaned late yesterday by the bankers' pool found themselves in comfortable circumstances today and were allowed renewals at the rates of 20 per cent. Bankers were said to be advising stock brokers against undertaking any business except for cash, the effect being to relieve so far the monev stringency. The amount of business done on this basis was surprisingly large and the amount of cash which changed hands in brokers' offices during the day might afford a clue to the destination of some of the funds that were being withdrawn from deposits with banking institutions. The considerable number of additions to banking and trust company institutions which closed their doors. most of them to check runs. bad little effect on market sentiment. The belief that the situation was clearing in the financial center here in New York was the paramount influence on sentiment. The dwindling of the runs of the Trust Corapany of America and its Colonial Trust Co., a branch, was accepted as the subsidence of the greatest danger. Further deposits of government funds were made with the banks and the ablest financial minds in the country continned to devise means for improving the situation. The constant evidence of this activity had a soothing effect on apprehension. From the strictly stock market view. when funds appeared in the loan crowd late in the day supplied by a bankers' pool to the extent of $15,000,000 and was loaned on call at the Stock Exchange. it meant that stock market needs were supplied until Monday. Prices rese rapidly then and closed strong at the best prices. It was hoped that by Monday next, when the loans must be renewed. the situation will be so far cleared up that the money

8. October 29, 1907 Evening Star Washington, DC
Article from Evening Star, October 29, 1907

Click image to open full size in new tab

Article Text

UNTERRIFIED BY TEMPEST Prospective Gold Imports Restore Flagging Confidence. CLOSED BANKS TO OPEN AGAIN Subtreasury Transfers Money to San Francisco and New Orleans. Call Money 50 Per Cent. Special Dispatch to The Star. NEW YORK, October 29.-Those who persevered in sticking to the doors of the Trust Company of America and its Colonial branch last night had cold-or exceedingly wet-comfort of it while they kept strict watch that no one should get 3 away with their money. As early as o'clock yesterday afternoon the lines commenced forming at both places, and the storm which howled over Manhattan last night failed to dislodge them. Down at 37 Wall street those assembled along very well in the shelter of the vestibule. got When the doors closed yesterday the business of renumbering the line began. The first man up had received half of his money yesterday; therefore he was adjudged only half a man, and, accordingly, was labeled zero. The other numbers were easy, so the body turned the to urgent business in the shape of the organization of an order known as Brotherhood of Ancien't and Persistent Line Formers, with special provisions for the admission of women. Waiters Become "Joiners." Strife arose immediately in the fraternihowever. No. 6 and No. 13 indulged ty, in a heated argument as to their relative merits for the job of Exalted Bearer of the Empty Pocketbook. Only the presof a policeman prevented a row. ence The honor was finally awarded by a committee of arbitration to a messenger boy, the ground that he could hold it peron manently, being too slow to ever get to the window. A the St. Paul building the organization microbe also got in its work. The ten watchers formed the Colonial Trust Company outside freeze-out branch. Presently the rain came along and floated it. Nine of the ten shareholders jammed themselves in behind the revolving doors and left the one remaining. as a representative of to take the watered stock. storm abated the intheir funds in send When the public, pooled the order combined to luncheon, but for sufficient to ing terests for a sum midnight proved could provide the be result- found of the ten. None the outside trust its in The was, only trust. whom one project therefore, could put abandoned as unfeasible, and the different members starved until their reliefs arrived. There were about thirty in the crowd that stayed all night outside of the main office. which had swelled to fifty at 8:30 o'clock. Thirty-five lined up at the Colonial branch at the same hour. Foreign Gold to Help. Great assistance in relieving the financial stringency is expected to result from the large engagements of gold for import made yesterday, and from the further large imports which, it is believed, will be made within the next few weeks. The movement of American crops to European markets, together with the rea demand for copper abroad, will United States large vival give the of credits be used with foreign bankers, and these can in bringing in gold, it is confidently be- be lieved. to the fullest extent that may necessary. It was announced today that several of the banks which were compelled to suspend last week have almost perfected their plans to reopen for business. President Montgomery of the Hamilton Bank, a Harlem institution which closed last week, said today: "This bank will

9. October 31, 1907 The News-Democrat Providence, RI
Article from The News-Democrat, October 31, 1907

Click image to open full size in new tab

Article Text

HEAVY INVESTMENT BUYING IN NEW YORK MARKET New York, Oct. 31.-The restoration of vestment buyers have taken 2,000,000 public confidence is indicated by the dimshares of stocks out of the market within Inished interest taken in the financial situthe last 10 days. The average value is esation. which continues to readjust itself timated at $50 a share, making a total into a normal basis. The gold engagements vestment of $100,000,000. were increased today by $1,500,000, bringing The run on the Colonial Trust company, the total 9 to $23,750,000. The Bank of a branch of the Trust Company of AmerEngland's increase of the bank rate to 5½ ica, ceased today, all waiting depositors per cent was fully expected and was even having been satisfied in the first hour better than was expected. as the advance after the opening of the office. was made to 6 per cent last year when the That at the main office of the Trust Bank of England protected its gold stock Company of America had dwindled today against withdrawals from the United to a few bank runners who were compellStates. ed to make their collections from the comThe stock market fluctuations did not pany's office because collections have to differ materially from those of ordinary be made by the trust companies in cash, times. The early market was very strong. they having no clearing house. Several of the banking institutions which have experienced recent difficulty held Trading in "Rights" Cease meetings during the day to readjust their affairs and resume business and a few New Haven, Conn., Oct. 31.-As a result runs which have been going on dwindled of the action of the New York, New Hato a practical close. ven and Hartford raflroad stockholders The enormour extent to which Investyesterday, practically all trading in New ment buyers are taking advantage of the Haven "rights" has ceased in this city, declines in the prices of stocks to buy up transactions being limited to a few minor small lots was indicated today by the eacases where the transaction is based on timate of competent authorities that inthe good faith of the parties.

10. November 4, 1907 The Washington Times Washington, DC
Article from The Washington Times, November 4, 1907

Click image to open full size in new tab

Article Text

DESPOSITORS PAID BY THE TRUST COS. LINES WERE SMALL Will Banks Continue Cashing Checks During Week, It Is Said. NEW YORK, Nov. 4.-The Trust Company of America and the Lincoln Trust Company opened their doors promptly at 10 o'clock today and resumed paying off depositors. At the Lincoln Trust Company there were 150 persons in line and at the main office, in Wall street, of the Trust Company of America. there were only sixty, while at the Colonial Trust Company, a branch of the Trust Company of America, there were only thirty. The first man to be admitted at the main office was a bank messenger, who had sixty checks to be cashed. It was believed that it would take the bank most of the day to pay off this one man. Morgan J. O'Brien, counsel for the Trust Company of America, hurried into the bank early, after having been up all of yesterday and last night, but neither he or any other officers of the bank would make a statement. The same reticence was apparent at the Lincoln Trust Company, except that Director Louis Stern declared that the bank would continue paying off all demands throughout the week. In Harlem the condition of the banks had not changed since Saturday. The directors of the suspended Hamilton Bank met early to consider the plan to resume business. The directors have proposed to pay the depositors 10 per cent cash on demand and the balance in sixty and ninety days and six months and a year. Many of the depositors have opposed this plan and it is said to be not favored by the banking department.

11. November 14, 1907 El Regidor San Antonio, TX
Article from El Regidor, November 14, 1907

Click image to open full size in new tab

Article Text

la crisis fue completa, á pesar de haberse presentado en el teatro de lus sucesos el Secretario del Tesoro, quien ofreció ayudar con los fondos de la Nacion. Hube un momento de reposo y la Colonial Trust Company estuvo pagando hasta 26 millones diarios de depósitos. Mr. Cortelyou y Morgan acordaron salvar la crisis con una inyección de millones: 35'del Tesoro americano; 25 de Morgan y 60 de Rockefeller; 120 millones. Con este recurso la crisis parecia conjurado, pero tres nuevos bancos cerraron sus puertas y suspendieron sus pagos; y les siguleron como ocho más en Nueva York, Brooklyn, Pittsburg, Albany, y otros lugares más, habléndole vocado su turno á San Antonio, Texas, donde varios bancos han cerrado sus puertas y suspendido sus pagos como consecuencia de la crisis. Las causas, según un comentarista, son entre bancarrotas y bancos quebrados, las siguientes; En Pittsburg, la autoridad ha ordenado la liquidación de tres compañias dirigidas por George Westinghouse, y que son las "Westinghouse Electric Company", "Westinghouse Machine Company" y la "Securities Investment Company" puesta en gravísima condición por la baja del capital y la depresión de la Bolsa de New York. La Bolsa de Pittsburg fué cerrada por efecto de la situación de la "Westinghouse", cuya situación ha causado también la quiebra de la Iron City Trust Company, que hacía negocios exclusivamente con esa compafifa. Once mil obreros de Pittsburg, que debían haber sido pagados por la citada compañia, no recibieron su salario, lo que causó la consiguiente alarma. El Presidente Roosevelt estudia con su Gabinete, la manera de conjurar des.altivamente la accual crisis económica del país.