gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7917c02046265825
Response Measures
None
Events (1)
1.January 9, 1911Run
Cause
Local Banks
Cause Details
Affiliation with the failed Carnegie Trust Company and the fallout from Joseph G. Robin's operations led depositors to withdraw funds.
Measures
Equitable Trust Company absorbed Madison Trust; J.P. Morgan & Co. and other financiers supplied cash and guaranteed obligations to reassure depositors.
Newspaper Excerpt
By Morgan's order the Madison Trust company was taken over by the Equitable Trust company.
MORGAN HELPS SAVE THE BANK Financiers Take Over Three Institutions. New York, Jan. 9.-After forty-eight hours of conference between representatives of all the big banking houses and the clearing house It was announced that J. P. Morgan & Co. have guaranteed the solvency of the Twelfth Ward bank and the Nineteenth Ward bank, that the Equitable Trust company has bought the Madison Trust company and that these three institutions have been shorn of their Carnegie Trust company connections. The announcement was made by formal statements. They make it clear that whatever danger had been cast on the three banks by the failure of the Carnegie Trust company had been removed. Work For Grand Jury, Perhaps. The Carnegie Trust company, which was closed Saturday by the state banking department, is now beyond hope of salvation. With respectable securities to offer it could have had on the very night before the superintendent of banking descended upon it at least $1,000,000, but these securities were not forthcoming. The deposits in the company had shrunk from $18,500,000 at the time of the company's greatest prosperity in 1909 to hardly more than $1,500,000 in individual deposits subject to check at the time of the failure. To meet this steady drain the company was forced to sacrifice what reliable securities it possessed. The banking department has called in District Attorney Whitman to look into the history of the concern and determine whether or not there was any criminal liability in its management. The district attorney is silent as to what steps he is taking in the matter. It is known, however, that he worked overnight on the trust company matter late into the morning and that he held many consultations about it at his home at the Hotel Iroquois. The outcome of this labor may very well be a matter for the consideration of the grand jury. Nearly Falled In 1907. It has developed that the company nearly went under in the panic days of 1907. The general impression that the influence of Andrew Carnegie was behind the company and the fact that the name of Leslie Shaw, who 80 recently had been secretary of the treasury, was with the concern were two things that saved the trust company at that time. Of course the big steel man asíde from his friendship for Charles M Schwab had no interest In the company. More than that, he was extremely adverse to the use of his name.
AN ALLIANCE OF BANKERS THEY AGREE TO TAKE CARE OF ANY RUNS THAT MAY DEVELOP. Unlimited Amount of Cash Will Be Available to Meet Demands. Depositors Are Paid. United Press Special. New York, Jan. 9 Preparations for an alliance of the banking interests of the country to-prevent a disturbance of present conditions were made plain today by the presence in the clearing house of several leading captains of finance. They volunteered to take care of any runs that might develop in New York City banks. Almost unlimited cash will be available to meet demands. J. P. Morgan personally assumed obligations for the Nineteenth ward and Twelfth ward banks. By Morgan's order the Madison Trust company was taken over by the Equitable Trust company. This is a thirty-five million dollar concern backed by the Equitable Life Insurance company. There have been small runs on numerous banks but all the depositors were paid.
3.January 9, 1911East Oregonian : E.OPendleton, OR
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MONEY KINGS STOP NEW YORK BANK RUSH New York, N. Y., Jan. 9.-The money kings of Wall street are today prepared to meet the financial disturbance caused by the closing of the Carnegie Trust company. Great stacks of currency were on the desks today when the banks opened. Reassuring statements were issued by Morgan, and under his direction the Equitable Trust company is preparing to take over the Madison Trust Co., while Morgan personally assumed the responsibility for the obligations of the nineteenth and twelfth ward branches. He has ordered their securities replaced by actual cash. Morgan and Company, Kuhn, Loeb and Company, the Standard on Company and the other big institutions will stand its ground until the flurry is past. The Western and Southern banks affected by the closing will be cared for by the New York bankers. An incipient run was started on the 19th ward bank today. Three hundred persons gathered before the open ing, ready to draw their money. As they lined up, trucks bearing money drew up and the depositors were paid as rapidly as they reached the paying teller. Bradley Martin, Jr., president of the bank said the run was of no conse) quence and that they) would pay off e as fast as the depositors asked. By noon the dine of depositors had 1 dwindled to a few persons. It was announced that Morgan had guaranteed the deposits of the bank and an additional eight millions in addition to the million on the desks.
4.January 9, 1911The Richmond VirginianRichmond, VA
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MORGAN AT HELM; SITUATION CLEARS Great Captain of Finance Restores Calm to Financial World BANK RUNS IN NEW YORK HEADED OFF Unlimited Supply of Cash Furnished Institutions Jeopardized by Carnegie Trust Failure NEW YORK, Jan, 9.-J. P. Morgan is still the undisputed master of New York finance. This was shown day when every cloud in the financial horizon was dissipated by the simple announce. ment that he had guaranteed the deposits of a number of local banks which were under pressure as the result of the closing of the Carnegie Trust Company on Saturday. There was a slight run on the Nineteenth and Twelfth Ward Banks, but only the foreign ele. ment withdraw its cash, and there were sufficient outside deposits to offset the amount paid out. The Madison Trust Company, taken over by Morgan's Equitable Trust Company, had only a few withdrawals. By Morgan's order all of the institutions for whose future there was any concern piled up gold, silver and bills in enormous quantities on their counters. The resuit was that timid depositors came in, took one look, and then left satisfied that their money was in good hands. The stock market, too, felt the effect of the Morgan "expression of confidence,' and Saturday's weakness was replaced by a strong tone. Morgan is going to Europe on Wednesday for his annual winter vacation, and this fact was urged by the bulls as a reason for the belief that the financial flurry was at an end. "The old man would not go away if everything was not all right," was the word paassed along the line, and it had its effect. All of the officials of the institutions affected by last night's long series of conferences between Morgan and the big financiers of the street and State Superintendent of Banks Cheney issued statements this afternoon that no further troubie was to be feared. NEW YORK. Jan. 9.-That the allied banking institutions of the country are prepared to prevent any disturbance of present conditions was made plain to-day by the presence in the clearing house of a number of the leading captains of finance. They were on hand to take care of any runs that might develop in any New York city bank, and had available almost unlimited cash to meet demands. Through the night officials of the big banks were on duty, and when the business day opened there was an exhibition of immediate resources in ev. ery Institution which might have unusual demands made upon. such as has not been displayed since the gloomy days of 1907. "There is nothing the matter with the business world, and the public must be made to understand it at once." is the word that came from J. P. Morgan and the command of the king was literally obeyed. Morgan Clarified Situation. Over night Morgan had clarified the situation. By his order the Madison Trust Company. formerly the Van Norden Trust Company. was taken over by the Equitable Trust Company. This is a $35,000,000 concern, backed by the Equitable Insurance Company, of which Morgan is now controlling owner Morgan also personally assumed responsibility for all of the ob. ligations.of the Nineteenth ward and the Twelfsh ward banks and their branches. and It was by his direction that securities held by these two concerns, which were not of a sort which could be sold readily in the open market were replaced by actual cash. Not since 1907, when Morgan, atter talking with President Roosevelt over the telephone and personally conferring with Secretary of the Treasury Cortelyou, calmed the financlal storm, has the Morgan influence been SO openly displayed as it was to-day. All Stand Together Morgan & Co., Kuhn, Loeb & So., the Guggenheims. Standard Oil, Hope ry Phipps, Halgarten & Co. and ev. ery big bank allied with the New York clearing house stand together. The string of Southern and Western banks affected through the closing on Saturday of the Carnegie Company are also to be taken care of so that there will be no financial disturbance in those sections. All of their oustanding drafts will be cashed by a coterie of banks here while their paper will be discounted to provide them with such cash as they may need pending the clearing up of the Carnegie Trust's affairs. The cash which was sent out from this city to move the crops in the West and South has started on its way back through the needs of the spring tradé. It was agreed that any trouble in New York banking circles would keep this money in the local institutions which in the nature course. of business would transfer It back to this city. This was a potent reason in getting all of the big bankers here into line for the policy of support that safeguarded the New York banks to-day. The Madison Trust Company early to-day elected new officers having named as president and vice-president respectively. Alvin W. Krech and Lawrence L. Gillespie, who are also president and vice-president of the Equitable Trust Company. Representative business men were also put into the active management of the Nineteenth and Twelfth Ward banks although Bradley Martin, Jr., continued as president of the Nineteenth, The men who were directors in these in-
5.January 9, 1911The Barre Daily TimesBarre, VT
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BIG FINANCIERS COME TO ASSISTANCE Of New York Banks Which Were Wobbly As Result of Closing of the Carnegie Trust company Saturday. New York, Jan. 9. A meeting of rep. resentatives of several large financial interests, bankers and others, was held last night at the home of Paul D. Gravath, a lawyer, and steps were taken to the of the company prevent (formerly closing the Madison Van Ward Norden Trust bank Trust company), the Twelfth and the Nineteenth Ward bank. which, together with their branches, make nine banks throughout the city. Ample capital was provided to meet all emergencies to which these banks might be subjected. These three institutions had former close with closed as an affiliations Saturday the Carnegie indirect Trust result G. the fallen now Robin, company, of the operations banker, of Joseph in prison. Among the interests represented at the conference were J. Pierpont Morgan & Co., New York Clearing House association and the Equitable Life. Assurance society. C. H. Cheney, state superof was as was Lawrence intendent Phipps, banks, jr., said present. to represent the Standard Oil company. It was announced that a radical change will be made in the Madison Trust company, that institution being taken over by the Equitable Trust company and certain changes in the directorate made. Statement by Cheney. Late last night the following statement out was given at Mr. Cravath's house, authorized by Superintendent Cheney: "I have been in close touch with the situation in the Madison Trust company, Ninteenth Ward bank and Twelfth Ward bank. I have objected to certain of the assets and some of the loans. In my opinion it became necessary to consult prominent bankers so that steps have been taken to allay public apprehension which might arise after the closing of the Carnegie Trust company. As a result of conference with bankers and am announce that in others interested my a judgment I arrangements able to have now been completed that are such as to effect that result. "The assets to which I have objected have been taken out of the two banks and substituted with cash. The Madison Trust company is to be acquired by with the Equitable trust and rearrangements Morgan merger & Co. have In been my made opinion with the J.P. sult of the foregoing arrangements is that these three institutions are in sound condition. "O. H. Cheney." Henry P. Davison, representing Morgan & Co., gave out a statement, in part as follows: 'At the time of the failure of the Carnegie Trust company certain members of the board of directors were also directors of the Madison Trust company, the Nineteenth Ward bank and the Twelfth Ward bank. Fearing that announcement of this fact might lead depositors to withdraw deposits, the superintendent of banks promptly took up the situation with prominent banking interests. After a conference held Saturday and Sunday, J. P. Morgan & Co. authorized the following statement: "Understanding that arrangements have been made for the absorption by merger of the Madison Trust company by the Equitable Trust company, J. P. Morgan & Co. have agreed to provide financial assistance to the Nineteenth Ward bank and the Twelfth Ward bank." "A Barton Hepburn gave out a state. ment similar in tone adding that "A very happy solution of possible complications has been arrived at for which the publie thanks are largely due to the very efficient services of the bank superintendent." Mr. Hepburn concluded with a statement that "after as complete an inE vestigation as We were able to make from the outside. I am of the opinion that the customers of the banks should continue their deposits and can continue their business with safety."
6.January 9, 1911Daily Capital JournalSalem, OR
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MORGAN AND OTHERS STAY BY BANKS WAGON LOADS OF COIN ARE UNLOADED AT NINETEENTH WARD BANK WHEN RUN STARTEDSIGHT OF COIN STOPS RUN. I UNITED PRESS LEASED WIRE.] New York, Jan. 9.-Money kings of Wall street today prepared to meet financial disturbances that might result from the closing Saturday of the Carnegie Trust company. Great stacks of money were piled on the counters of paying tellers when the banks opened today, while reassuring statements were isued by J. P. Morgan and other leaders in the financial world. Under Morgan's direction the Equitable Trust company prepared to take over the Madison Trust company, while Morgan personally assumed the responsibility for the obligations of the Nineteenth Ward and the Twelfth Ward Branch banks. He ordered the securities which these concerns held which were not readily negotiable, replaced with actual cash. Not since 1907 had the Morgan influence so openly ben displayed in the banking (Continued on Page 4.)
7.January 9, 1911The Detroit TimesDetroit, MI
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CARNEGIE TRUST FAILURE DOESN'T AFFECT OTHER BANKS J. P. Morgan and Other Financiers Stand Together To Meet Any Emergency. NEW YORK, Jan. 9.-That the allied banking institutions here are prepared to prevent any disturbance of present conditions was made plain today by the presence in the clearing house of a number of the leading captains of finance. "There is nothing the matter with the business world, and the public must be made to understand it at once," is the word that came from J. P. Morgan. By Morgan's order, the Madison Trust Co., formerly the Van Norden Trust Co., was taken over by the Equitable Trust Co. This $35,000,000 concern backed the Equitable Insurance Co., of which Morgan is now controlling owner. Morgan also personally assumed responsibility for all of the obligations of the Nineteenth Ward and the Twelfth Ward banks, and their branches, and it was by his direction that securities held by these two concerns which were not of a sort which could be sold readily in the open market, were replaced by actual cash. Morgan & Co., Kuhn, Loeb & Co., the Guggenheims, Standard Oil, Henry Phipps, Halgarten & Co., and every big bank allied with the New York clearing house stand together. The string of southern and western banks affected by the closing on Saturday of the Carnegie Trust Co., will be fully taken care of. Statements by Morgan & Co., President Krech, of the Equitable Trust Co.; A. Barton Hepburn, president of the Chase National bank, and the Clearing House association; Bradley Martin, Jr., and Supt. of Banks Cheney, all of a character intended to reassure the timid regarding the stability of all of the banks affected by the Carnegie Trust Co.'s failure, were given widespread publicity early today and had their effect as was planned. At 9:30 this morning a line of about 100 persons had formed outside of the Nineteenth Ward bank. Many of them were women and all were there to draw out the money they had on deposit. It was said that all checks presented would be promptly paid. There were 300 depositors in line at the Ninteenth Ward bank when the paying teller's window was thrown open. All were paid off as rapidly as possible. President Bradley Martin, Jr., said: "We will pay off all depositors who want their money. The run is of little consequence, inasmuch as those who are withdrawing cash, are people who had only small amounts on deposit.
8.January 9, 1911The Tacoma TimesTacoma, WA
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MORGAN QUIETS DEPOSITORS (By United Press Leased Wire.) NEW YORK, Jan. 9.-As a result of the influence of J. P. Morgan, financial clouds that gathered following the suspension Saturday of the Carnegie Trust company were dissipated today. The strength of the money king -was felt in the market as well as in banking circles, and the leaders of the financial world are breathing freely again. The power of piles of gold stacked on the counters of the banks in full view of the timid depositors had a quieting effect. Only foreigners withdrew their deposits from the Nineteenth and Twelfth ward banks, and incoming deposits more than offset the withdrawals. There were few withdrawals from the Madison Trust company.
9.January 10, 1911The SunNew York, NY
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of depositors was always longer than the other line. It was said that less than $100,000 was withdrawn. At the main office and the branch at Grand street and the Bowery signs were posted which read "The Equitable Trust Company of New York will pay the depositors of the Madison Trusi Company in full. The Madison's Bowerv branch paid off a considerable number of small depositors but there was no line after 12 o'clock. In all of the banks and their branches notices of the backing promised to the banks by J. P. Morgan and Co., were posted and the Nineteenth Ward and its branches filled its windows with pages from the morning and afternoon papers bearing the same story 11 was apparent at most of the branches that the day had seen the end of the run. Those who had money in the Nineteenth Ward's Seventysecond street branch had a chance to get it last night if they wanted it. as the branch was open from 7 to 9 P. M as it always is on Monday nights. Some of the money withdrawn from the banks went into the stocking unsafe deposit. but a good deal was deposited in other banks One uptown savings bank president said that the deposits in his bank for the day were the heaviest in many months
10.January 10, 1911The Washington TimesWashington, DC
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New York Banks Back To Normal Conditions NEW YORK, Jan. 10.-Normal conditions prevailed at all of the banks today, the slight run on the Nineteenth and Twelfth Ward banks and the Madison Trust Company which prevailed yesterday not being renewed. It was stated by State Superintendent of Banks Cheney today that the affairs of the Carnegie Trust Company will be liquidated at once and no attempt will be made to put the institution in shape to continue business. Just before 11 o'clock today $1,000,000 in bills, packed in three suit cases, arrived at the Nineteenth Ward Bank, from the offices of J. P. Morgan & Co. President Bradley Martin, jr., of the bank, said the money really was not needed by the institution, but had been sent there as a precautionary measure.
PREVENTED FINANCIAL PANIC Runs on New York Banks Headed Off by Morgan and His Financial Associates New York. Jan. 10.-Runs were made on three banks in New York yesterday as an aftermath of the skyrocket financial methods of Joseph Robin but the prompt payment of depositors of the Twelfth Ward and Nineteenth Ward banks and the Madison Trust Company averted any sign of a panic. All of the banks were supported by J Pierpont Morgan and his financial associates. As soon as this became known the runs ended and nearly all redeposited their money.
(By Associated Press.) New York, N. Y., Jan. 9.-Aside from the progressive work of reorganization and reconstruction in the affected institutions which Wl. neces_ sarily extend over the week, New York's banking situation is normal tonight; depositors are reassured and the stock market is optimistic. Joseph G. Robin, whose operations caused the flurry is still in the Tombs. With powerful financial interests behind the Twelfth Ward band and Nineteenth Ward bank and with the absorption of the Madison Trust company by the Equitable Trust company, these three institutions, whose integrity had been questioned because of affiliations directly or indirectly with the Carnegie Trust company, which was closed as a result of Robin's operations, weathered the day SO successfully that there were no runs and almost normal de-
13.January 10, 1911The Fairmont West VirginianFairmont, WV
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NEW YORK, Jan. 10.-Fifty million dollars available to prevent further bank failures in New York city, and resources aggregating probably a billion, represented by the J. P. Modgan interests, were the controlling features of the situation yesterday when the day was ushered in with runs on the Nineteenth Ward and Twelfth Ward banks. The blight of Joseph G. Robin fell across these banks and also the Madison Trust Company, because they were affiliated with the defunct Carnegle Trust Company, of which he was a former director. "There is nothing the matter with the business world - and the public must be made to understand it at once," was the word that came from J. P. Morgan and the command of the "king" was literally obeyed. Overnight Morgan had clarified the situation. By his order the Madison Trust Company, formerly the Van Norden Trust Company, was taken over by the Equitable Trust Company. This is a $35,000,000 concern, backed by the Equitable Insurance Company, of which Morgan is now the controlling owner. Morgan also personally assumed responsibility for all of the obligations of the Nineteenth Ward and the Twelfth Ward banks and their brances, and it was by his direction that securities held by these two concerns, which were not of a sort which could be sold readily in the open market, were replaced by actual cash. Rung were begun on the Nineteenth Ward and Twelfth Ward banks as soon as these institutions opened yesterday. Trucks carrying gold, silver and paper were drawn up before both banks, but this failed to allay the anxiety of the depositors. At the main establishment of the Twelfth Ward bank, 147 East One Hundred and Twenty-fifth street, stacks of gold and silver were on the counters when the depositors were allowed to enter. The same situation (Continued on Page Eight.)
14.January 10, 1911Pine Bluff Daily GraphicPine Bluff, AR
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BIG BANK RUNS ARE PREVENTED Morgan and Co., Kuhn-Loeb and Others Come to Aid of N. Y. Banks. MANY WITHDRAWALS Carnegie Trust Company's Failure Made People Uneasy and They For in Line. International News Special New York, Jan. 9.-Owing to the quick and strong support given by J. P. Morgan and Company, Kuhn, Loeb and Co., and other powerful banking interests to a situation that was for a short time delicate, the City of New York today was saved from bank runs that might have led to general excitement and temporary financial derangement. When it became known this morning that the interests named had organized themselves into a committee of defense against the probable bad effect of the failure on Saturday of the Carnegie Trust Company, the apprehended run on the Madison Trust Company and its subsidiaries, the Twelth Wiard Bank and the Nineteenth Ward Bank, with several branches scattered through the city and all affiliated with the unfortunate Carnegie Trust Company, were virtually averted. Although there were steady withdrawals from these banks and their several branches all day, at no time was there a panicky feeling among the scores of women and men who waited patiently in the lines all day in front of the institutions tio get their deposits out.
15.January 10, 1911The Cairo BulletinCairo, IL
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SITUATION IS AGAIN NORMAL GOOD WORK ACCOMPLISHED IN BANKING SITUATION IN NEW YORK CITY. DEPOSITORS REASSURED Stock Market is Optimistic, and Joseph G. Robin, the Indicted Banker, Remains in the Tombs Prison. New York, Jan. 9.-Aside from progressive work of reorganization and reconstruction in affected institu tions, which will necessary extend over the first few weeks of the new year, the banking situation is normal tonight. Timid depositors are reassured, the stock market is optimistic and Joseph G. Robin, whose operations caused the flurry, remains in the Tombs. With powerful interests behind the Tweltf Ward Bank and the Nineteen th Ward Bank and with the absorp ilon of the Madison Trust Company by the Equity Trust Company, two institutions whose integrity had been questioned because of alleged affiliations with the Caruegle Trust Company, closed as the result of Robin's operations, weathered today, not only successfully, but with suggestiveness that there were no runs and almost normal deposits. Last night's consultation between financiers had laid a strong ground work which proved adequate to avert any serious complications. Another member of the Robin family entered the Tomos today. Dr. Louise Robinovitch, sister of Robin was indicted for perjury and remanded in default of $3,000 bail. She had sworn in an effort to have Robin conmitted to an asylum and his estate taken over by a committee, that she and her brother, Edward, known as Edward Robinson, were his only heirs at law. But Investigation dis closed an aged couple which the prosecution contends are the parents of Robin On this discovery the indictment is based. After Dr. Robinovitch has been indicted she was arraigned in the court of general sessions where she entered a plea of not guilty. Chas. Hyde, the city chamberlain, who was sought as a witness by the legislative graft committee and who is now sought by the city off!cials to look after the city's interests in view of funds deposited in some of the banks involved in the trouble, was still missing tonight. Controller Pendergast sent a spec ial message to the mayor today ask ing for a meeting of the banking commission to consider the matter. In the course of the day Andrew Carnegie issued a statement denying any connection with the Carnegie Trust Company, and reissuing a letter published in 1906 objecting to the use of his name.
16.January 10, 1911Alexandria GazetteAlexandria, VA
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Morgan's Philanthrophy. New York, Jan. 10.-Whether J. P. Morgan, in clearing the local financial skies, cleared up two millions of dollars or lost half a million is the question financiers are trying to solve today. The friends of Morgaa. who say he acted unselfishly to save the financial situation yesterday, insist that he took over the stock in the Madison Trust Company. the Nineteenth Ward Bank and the Twelfth Ward Bank at the market price and that in doing SO he also shouldered obligations which made his stock cost $585,000 additional. Pessimists, however, who seem to question the Morgan brand of philanthrophy, point out that he paid only $3,450,000 for control of three banking institutions whose allied resources are in excess of $20,000,000. Morgan, these people say, will shortly liquidate the three organizations and open in their stead branches of his Equitable Trust Company. The minority stockholders, it is pointed out, will have no say in the matter, as Morgan, as the price of preventing a run by the mere use of his name, secured the control of all of the three concerns. The $20,000,000 of assets of the three concerns which were in danger will add materially to the attractiveness of the Equitable Trust Company's balance sheets hereafter in the opinion of financial experts who have watched the present situation. Normal conditions prevailed at all the banks this morning.
17.January 10, 1911The Times DispatchRichmond, VA
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BANKER'S SISTER HELD FOR PERJURY New York, January 9.-Aside from progressive work of reorganization and reconstruction in affected institutions, which will necessarily extend over the week, New York's banking situation is normal to-night; timid depositors are reassured, the stock market is optimistic, and Joseph G. Robin, whose operTombs. ations caused the flurry, is still in the With powerful financial interests behind the Twelfth Ward Bank and the Nineteenth Ward Bank, and with the absorption of the Madison Trust Company by the Equitable Trust Company, these three institutions, whose Integrity had been questioned because of affiliations directly or indirectly with the Carnegie Trust Company, which was closed as a result of Robin's operations, weathered the day, not only successfully, but with such aggressiveness that there were no runs and almost normal deposits. Sister in Tombs. Another member of the Robin family entered the Tombs to-day. Dr. Louise Robinovitch, sister of Robin, was indicted for perjury and remanded in default of $3,000 bail. She had sworn, in an effort to have Robin committed to an asylum and his estate taken over by a committee, that she and her brother, Edward, known as Edward Robinson, were his only heirs at law. But investigation disclosed an aged couple whome the prosecution contends are the parents. On this discovery the indictment was based.
18.January 10, 1911Evening JournalWilmington, DE
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been after it ever since it was reorganized from the old Van Norden Trust Company. How He Will Pay For Them. To pay for the three institutions it is expected Morgan will increase the stock of the Equitable Trust Company and exchange it for the outstanding shares of three companies, making the actual cost to Morgan personally only about what the engravers' bill will be who furnishes the new stock. The $20,000,000 of assets of the three concerns which were in danger will add materially to the attractiveness of the Equitable Trust Company's balance sheets hereafter, in the opinion of financial experts, who have watched the present situation. Normal conditions prevailed at all of the banks today, the slight run on the Nineteenth and Twelfth Ward Banks and the Madison Trust Company, which prevailed yesterday not being renewed. It was stated by State Superintendent of Banks Cheney today that the affairs of the Carnegie Trust Company will be liquidated at once and no attempt will be made to put the institution in shape to continue business.
19.January 12, 1911The Dillon HeraldDillon, SC
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MORGAN A BUCCANEER. Hailed 24 Hours Ago As Saviour of Three Banks-Now Charged That He Wrecked Them Deliberately. New York, Jan. 10.-While J. P. Morgan was hailed 24 hours ago as the saviour of three New York banks, sober reflection on the part of various financial leaders not in the Morgan camp to-day led them to renew his appellation of "financial buccaneer." Following revelations that if the Carnegie Trust Company had been given 24 hours longer it would have been able to continue its financial operations, Wall street dealers declare that Morgan had manipulated cleverly to force a merger of the $20,000,000 Madison Trust Company with his $35,000,000 Equitable Trust Company. According to a report current in the financial district Mr. Morgan had forced the hands of his opponcuts and practically bagged three new banks in so doing; the three being the Madison Trust, the Twelfth and Nineteenth ward banks. The Madison Trust Company is now Morgan's but how far his ascendency goes over the other two institutions has not been made public. It is understood, however, that he torced an agreement to the effect that the Carnegie Trust Company shall not be re-organized. The assertion is made that the house of Morgan did not expend a cent but merely lent its name to avert financial crashes that might have had a national bad effect. The money sent by J. P. Morgan & Co. to the banks in question was not needed and was returned. Much of it war not opened. The Madison Trust Company and the Twelfth ward and Nineteenth ward banks opened their doors at the usual hour to-day. There was a slight run on the savings department of the Nineteenth ward institution. About 50 persons, most of them women, were waiting to make withdrawals when the savings department was opened. They were paid promptly. I In the check department of the Nineteenth ward bank there were more persons waiting to make deposits than withdrawals. , Superintendent of Banks Cheney said to-day that the financial situ: ation had cleared up entirely and added: "I give you my word that not another bank or trust company under the jurisdiction of our department is under the least suspicion." Just before 11 o'clock to-day $1,000.000 in bills, packed in three suit cases, arrived at the Nineteenth ward bank, from the offices of J. P. Morgan & Co. The money was taken there by three men, who rode in a taxicab. President Bradley Martain, Jr., of the bank, said the money really was not needed by the institution, but had been there as a precautionary measure. There was no run on the check department of the bank during the morning. AAA
20.January 12, 1911Semi-Weekly HeraldDurango, CO
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NEW YORK, Jan. 9.-The allied banking institutions of the country are prepared to prevent any disturbance of present financial conditions. This was made plain today by the presence in the clearing house of a number of the leading captains of finance. They are on hand to take care of any turns that might develop in New York city bank and had available an almost unlimited amount of eash to meet demands. Through the night the officiale of the big banks were all on duty and when the business day opened there was an exhibition of immediate resource in every institution which might have unusual demands made upon it, such as has not been displayed since the gloomy days of 1907. "There is nothing the matter with the business world and the public must be made to know it at once," is the word from J. P. Morgan. The command of the "king" is being lit. evally obeyed. Over night Morgan had clarified the situation. By his order the Madison Trust company, formerly the Hannorden Trust company, was taken over by the Equitable Trust company. This is a thirty-five million dollar concern backed by the Equitable Insurance company of which Morgan is now the controlling owner. Morgan also personally assumed responsibility for all obligations of the Nineteenth ward and Twelfth ward banks and their branches and by his direction securities held by these two concerns, which were not a sort which could be sold readily in the open market, were replaced by actual cash. Runs were made on three banks in New York city today as an aftermath of the skyrocket financial methods of Joseph G. Robin, former president of the now closed Northern Bank of New York, who is now in jail under indictment for bank wrecking, but prompt payment of depositors of the three institutions, the Twelfth Ward bank, the Nineteenth Ward bank and the Madison Trust company, averted any igns of panic.
21.January 12, 1911The Guthrie Daily LeaderGuthrie, OK
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GOTHAM BANKS SAVED Powerful Financial Interests Come to Aid of Affected Institutions (By Leased Wire) New York, Jan. 11.-Aside from progressive work of reorganization and reconstruction in affected institutions which will necessarily extend over the week, New York's banking situation is normal tonight, timid depositors are reassured. the stock market is optimistic and Joseph G. Robir. whose operations caused the flurry. remains in the Tombs. With powerful financial interests behind the Twelfth Ward Bank and the Ninteenth Ward bank and with the absorption of the Madison Trust company by the Equitable Trust comjary. these institutions whose integrity had been questioned because of alleged affiliations with the Carnegie Trust company, closed as a result of Robin's operations, weathered the day not only successfully, but with such aggressiveness that there were no runs and almost normal deposits. Last uight's consultation between financiers had laid a strong groundwork, not proved adoguate to avert any serious complications.
22.January 13, 1911Watertown LeaderWatertown, WI
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SUPPORT HALTS BANK TROUBLES Quick Action by Big Interests Prevents Possible Runs. New York.-Owing to the quick and strong support given by J. P. Morgan & Co., Kuhn, Loeb & Co. and other powerful banking interests to a situation that for a short time was delicate, the city of New York was saved from bank runs that might have led to general excitement and temporary financial derangement. When it became known that the interests named had organized themselves into a committee of defense against the probable bad effects of the failure of the Carnegie Trust Co., the apprehended runs on the Madison Trust Co. and its subsidiaries, the Twelfth Ward bank and the Nineteenth Ward bank, with several branches scattered through the city and all affiliated with the unfortunate Carnegie Trust Co. were virtually averted. Although there were steady withdrawals from these banks and their several branches all day, at no time was there a panicky feeling.
23.January 18, 1911Vilas County NewsEagle River, WI
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SUPPORT HALTS BANK TROUBLES Quick Action by Big Interests Prevents Possible Runs. New York.-Owing to the quick and strong support given by J. P. Morgan & Co., Kuhn, Loeb & Co. and other powerful banking interests to a situation that for a short time was delicate, the city of New York was saved from bank runs that might have led to general excitement and temporary financial derangement. When it became known that the interests named had organized themselves into a committee of defense against the probable bad effects of the failure of the Carnegie Trust Co., the apprehended runs on the Madison Trust Co. and its subsidiaries, the Twelfth Ward bank and the Nineteenth Ward bank, with several branches scattered through the city and all affiliated with the unfortunate Carnegie Trust Co. were virtually averted. Although there were steady withdrawals from these banks and their several branches all day, at no time was there a panicky feeling.
24.January 18, 1911Vernon County CensorViroqua, WI
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SUPPORT HALTS BANK TROUBLES Quick Action by Big Interests Prevents Possible Runs. New York.-Owing to the quick and strong support given by J. P. Morgan & Co., Kuhn, Loeb & Co. and other powerful banking interests to a situation that for a short time was delicate, the city of New York was saved from bank runs that might have led to general excitement and temporary financial derangement. When it became known that the interests named had organized themselves into a committee of defense against the probable bad effects of the failure of the Carnegie Trust Co., the apprehended runs on the Madison Trust Co. and its subsidiaries, the Twelfth Ward bank and the Nineteenth Ward bank, with several branches scattered through the city and all affiliated with the unfortunate Carnegie Trust Co. were virtually averted. Although there were steady withdrawals from these banks and their several branches all day, at no time was there a panicky feeling.
25.February 3, 1911The Evening WorldNew York, NY
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salary of $30,000 a year. This financial arrangement with Mr. Howell was made by the directors of the Carnegie Trust Company. Because of the Carnegie indorsement the salary was made higher than was at first planned. Under representations that the Tennessee Packing and Stock Yards Company and the Platt Iron Works were going enterprises, free from all indebtedness, and that the Madison Trust Company and the Carnegie Trust Company were in shipshape, Mr. Carnegie loaned Mr. Cummins and his assoclates $2,000,000. Since the shutting down of the Carnegle Trust Company, which necessitated Mr. Carnegie's consent to the liquidation of the Madison Trust Company by the Equitable Trust Company, Mr. Carnegie's faith in humanity has been somewhat shaken upon finding that there has been a wide circulation among bankers in New York City of notes against the two industrial corporations whose stock was part of the collateral put up for the $2,000,000 loan. Of course the holders of these notes, who are represented by Mr. Cromwell. have a first Hen upon these properties, and in the event of receiverships Mr. Carnegie stands to get very little out of them against his loan. The remaining security held by Mr. Carnegie is a note for the full amount of the loan signed by Mr. Cummins and seven of his associates.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
