Charles T. Barney
Encyclopedia
Charles Tracy Barney was the president of the Knickerbocker Trust Company
, the collapse of which shortly before Barney's death sparked the Panic of 1907
.
, the son of Ashbel H. Barney
and Susan (Tracy) Barney. His father was a successful forwarding and commission merchant. In 1857 the family moved to New York City
, where Ashbel Barney was a director (1859-83), vice president (1867-69) and president (1869-70) of Wells Fargo & Company.
Barney attended Williams College
in Williamstown, Massachusetts
, where he was a member of The Kappa Alpha Society
, graduating in 1870. Following graduation he moved to New York and entered banking. Barney married Lucy Collins "Lily" Whitney, the sister of William Collins Whitney, the patriarch of the Whitney family
. The Barneys were the parents of two sons and two daughters:
Through his daughter Helen, Barney was the grandfather of Archibald S. Alexander
(1906-1979), Under Secretary of the Army in the Truman
Administration.
His ties to the Whitney family helped him achieve great success in banking, real estate investment and opened the door to profitable business opportunities. Barney was made a special member of the firm of Rogers & Gould, members of the New York Stock Exchange
. He joined the Knickerbocker Trust Company
in 1884, was elected vice president in the 1890s and in 1897 succeeded Robert MacClay as president. During his tenure at Knickerbocker, the company's total deposits rose from $11 million to over $65 million. At its peak it was the third largest trust company in the city. In 1902-04 it built a new main office at the corner of Fifth Avenue and 34th Street (pictured), designed by McKim, Mead and White. There were also branch offices at 66 Broadway and in Harlem
and The Bronx
.
In his real estate operations, Barney joined William C. Whitney
, Henry F. Dimock
, W.E.D. Stokes, Francis W. Jenks, and others in forming the New York Loan and Improvement Company in 1890. This concern was responsible for the development of the Washington Heights
section of New York City. He formed with George D. Sheldon and others in 1899 the so-called Barney-Sheldon real estate syndicate.
Besides serving as president and a director of the Knickerbocker Trust Company, Barney was president and a director of the New York Loan and Improvement Company; a trustee of the Bank for Savings; a director of the Brooklyn Life Insurance Company, Lawyers' Mortgage Insurance Company, United States Realty and Improvement Company, Title Insurance Company of New York, New York Mortgage and Security Company, Century Realty Company, Hudson Mortgage Company and Chelsea Realty Company; and a shareholder of the Santa Cecilia Sugar Company, Cuba Hardwood Company, Cuba Northeastern Railroad, American Ice Company, Ice Securities Company, Eastern Steamship Company, Metropolitan Steamship Company
, Dominion Iron Company Ltd., Dominion Iron and Steel Company Ltd., and the Hudson Navigation Company (the Hudson River Night Line). He was also an investor in the New York Subway and the Metropolitan Opera
and Real Estate Company.
Barney and his family resided at 101 East 38th Street, corner of Park Avenue, in his father's old home. At the Metropolitan Opera he was the holder of box 9. A sportsman, he enjoyed hunting and pistol-shooting. He was chairman of the executive committee of the New York Zoological Society from 1904 until his death.
Of his sons, the elder, James W. Barney, was graduated from Yale University
in 1900 and, an architect
by profession, took up residence in Paris
. The younger, Ashbel H. Barney II, joined the Wall Street
firm of Rogers & Gould, in which Barney was still a special member.
William C. Whitney gave a debutante
ball for Barney's daughter Helen at the Whitney mansion, 871 Fifth Avenue, on January 5, 1901.
With his mustache and beard and slightly thinning hair, Charles T. Barney somewhat resembled his late, well-regarded father in appearance. He was one of Wall Street
's most prominent bankers, but his career came to a rapid and ignominious end in October 1907.
and Charles W. Morse
to corner the market
of the United Copper Company. On Tuesday, October 15, 1907 their plan failed spectacularly when the share price of United Copper collapsed. Heinze's brokerage firm failed on October 17, and he was forced to resign as president of the Mercantile National Bank. On October 19 Morse was forced out of the banks with which he had been associated. Realizing that the Knickerbocker was involved in the failed cornering, depositors began to remove their deposits from the bank.
On October 21, Monday of the week after the bid collapsed, the board of the Knickerbocker Trust Company asked Barney to resign after he admitted involvement in the Morse speculations. That afternoon, the National Bank of Commerce announced it would no longer clear checks for the Knickerbocker. The next day, a massive bank run
forced the Knickerbocker to suspend operations. George L. Rives, Henry C. Ide and Ernst Thalmann were named receivers. The failure of the Knickerbocker was the keystone of the Panic of 1907
.
Barney's successor as president of Knickerbocker, A. Foster Higgins of Greenwich, Connecticut
, was an unfortunate choice.
He was 77 years old and quite garrulous. Foster made public statements, including one following the death of Barney, that greatly embarrassed the Rehabilitation Committee under F.G. Bourne and William A. Tucker that was trying to get the trust company on its feet again.
Barney had shot himself in the abdomen with a .32 caliber revolver. Lily Barney later told Coroner Harburger that pistols were kept on every floor of the house for protection. Medical assistance was summoned, and in the meantime Barney made and signed arrangements for the disposal of his affairs in addition to his existing will. Then, still in his home, he underwent exploratory surgery at the hands of Dr. Joseph A. Blake and the family's physician, Dr. George A. Dixon. Barney died at 2:30 p.m. while still under anesthesia.
Barney's funeral was conducted at the residence on November 16, 1907, by the Rev. Dr. Charles H. Parkhurst of the Madison Square Presbyterian Church
. Some 40 persons were present for the private service, among them Barney's widow and their two daughters and one son (the other was in Europe). Also present were Harry Payne Whitney
, Henry Melville Whitney
, Joseph S. Auerbach, Dr. George A. Dixon and Barney's lawyers, George L. Nichols and Arthur H. Masten. Following the service, the hearse took Barney's body to Grand Central Station, from whence a special train took it to Woodlawn Cemetery. Parkhurst said a prayer at the graveside.
Knickerbocker Trust Company
The Knickerbocker Trust, chartered in 1884 by Frederick G. Eldridge, a friend and classmate of financier J.P. Morgan, figured at one time among the largest banks in the United States and a central player in the Panic of 1907. As a trust company, its main business was serving as trustee for...
, the collapse of which shortly before Barney's death sparked the Panic of 1907
Panic of 1907
The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on...
.
Early life and marriage
Charles T. Barney was born in Cleveland, OhioCleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
, the son of Ashbel H. Barney
Ashbel H. Barney
Ashbel Holmes Barney was an American banker and expressman who served as president of Wells Fargo & Company in 1869-1870.-Early life:...
and Susan (Tracy) Barney. His father was a successful forwarding and commission merchant. In 1857 the family moved to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, where Ashbel Barney was a director (1859-83), vice president (1867-69) and president (1869-70) of Wells Fargo & Company.
Barney attended Williams College
Williams College
Williams College is a private liberal arts college located in Williamstown, Massachusetts, United States. It was established in 1793 with funds from the estate of Ephraim Williams. Originally a men's college, Williams became co-educational in 1970. Fraternities were also phased out during this...
in Williamstown, Massachusetts
Williamstown, Massachusetts
Williamstown is a town in Berkshire County, in the northwest corner of Massachusetts. It shares a border with Vermont to the north and New York to the west. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 7,754 at the 2010 census...
, where he was a member of The Kappa Alpha Society
Kappa Alpha Society
The Kappa Alpha Society , founded in 1825, was the progenitor of the modern fraternity system in North America. It was the first of the fraternities which would eventually become known as the Union Triad...
, graduating in 1870. Following graduation he moved to New York and entered banking. Barney married Lucy Collins "Lily" Whitney, the sister of William Collins Whitney, the patriarch of the Whitney family
Whitney family
The Whitney family is an American family notable for their social prominence, wealth, business enterprises and philanthropy, founded by John Whitney who came from London, England to Watertown, Massachusetts in 1635.-Rise to prominence:...
. The Barneys were the parents of two sons and two daughters:
- James W. Barney (b. 1878)
- Helen Tracy Barney (b. 1882) - married (1) Archibald S. Alexander; (2) Frederick N. Watriss
- Katherine Barney (b. 1885) - married Courtlandt Dixon Barnes
- Ashbel H. Barney II (b. 1887)
Through his daughter Helen, Barney was the grandfather of Archibald S. Alexander
Archibald S. Alexander
Archibald Stevens Alexander was an American lawyer, civil servant, and Democratic politician. He served as Under Secretary of the United States Army in the Truman Administration and as New Jersey State Treasurer....
(1906-1979), Under Secretary of the Army in the Truman
Harry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...
Administration.
Banking career
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. He joined the Knickerbocker Trust Company
Knickerbocker Trust Company
The Knickerbocker Trust, chartered in 1884 by Frederick G. Eldridge, a friend and classmate of financier J.P. Morgan, figured at one time among the largest banks in the United States and a central player in the Panic of 1907. As a trust company, its main business was serving as trustee for...
in 1884, was elected vice president in the 1890s and in 1897 succeeded Robert MacClay as president. During his tenure at Knickerbocker, the company's total deposits rose from $11 million to over $65 million. At its peak it was the third largest trust company in the city. In 1902-04 it built a new main office at the corner of Fifth Avenue and 34th Street (pictured), designed by McKim, Mead and White. There were also branch offices at 66 Broadway and in Harlem
Harlem
Harlem is a neighborhood in the New York City borough of Manhattan, which since the 1920s has been a major African-American residential, cultural and business center. Originally a Dutch village, formally organized in 1658, it is named after the city of Haarlem in the Netherlands...
and The Bronx
The Bronx
The Bronx is the northernmost of the five boroughs of New York City. It is also known as Bronx County, the last of the 62 counties of New York State to be incorporated...
.
In his real estate operations, Barney joined William C. Whitney
William C. Whitney
William Collins Whitney was an American political leader and financier and founder of the prominent Whitney family. He served as Secretary of the Navy in the first Cleveland administration from 1885 through 1889. A conservative reformer, he was considered a Bourbon Democrat.-Early life:William...
, Henry F. Dimock
Henry F. Dimock
Henry F. Dimock was a lawyer in New York City who was closely associated with the Whitney family business interests.Dimock was born in South Coventry, Connecticut, the son of Timothy and Laura F. Dimock...
, W.E.D. Stokes, Francis W. Jenks, and others in forming the New York Loan and Improvement Company in 1890. This concern was responsible for the development of the Washington Heights
Washington Heights, Manhattan
Washington Heights is a New York City neighborhood in the northern reaches of the borough of Manhattan. It is named for Fort Washington, a fortification constructed at the highest point on Manhattan island by Continental Army troops during the American Revolutionary War, to defend the area from the...
section of New York City. He formed with George D. Sheldon and others in 1899 the so-called Barney-Sheldon real estate syndicate.
Besides serving as president and a director of the Knickerbocker Trust Company, Barney was president and a director of the New York Loan and Improvement Company; a trustee of the Bank for Savings; a director of the Brooklyn Life Insurance Company, Lawyers' Mortgage Insurance Company, United States Realty and Improvement Company, Title Insurance Company of New York, New York Mortgage and Security Company, Century Realty Company, Hudson Mortgage Company and Chelsea Realty Company; and a shareholder of the Santa Cecilia Sugar Company, Cuba Hardwood Company, Cuba Northeastern Railroad, American Ice Company, Ice Securities Company, Eastern Steamship Company, Metropolitan Steamship Company
Metropolitan Steamship Company
The Metropolitan Steamship Company was for 75 years one of the chief transportation links between New York City and Boston, Massachusetts. It was closely associated with the Whitney family until its acquisition by Charles W. Morse in 1906...
, Dominion Iron Company Ltd., Dominion Iron and Steel Company Ltd., and the Hudson Navigation Company (the Hudson River Night Line). He was also an investor in the New York Subway and the Metropolitan Opera
Metropolitan Opera
The Metropolitan Opera is an opera company, located in New York City. Originally founded in 1880, the company gave its first performance on October 22, 1883. The company is operated by the non-profit Metropolitan Opera Association, with Peter Gelb as general manager...
and Real Estate Company.
Barney and his family resided at 101 East 38th Street, corner of Park Avenue, in his father's old home. At the Metropolitan Opera he was the holder of box 9. A sportsman, he enjoyed hunting and pistol-shooting. He was chairman of the executive committee of the New York Zoological Society from 1904 until his death.
Of his sons, the elder, James W. Barney, was graduated from Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
in 1900 and, an architect
Architect
An architect is a person trained in the planning, design and oversight of the construction of buildings. To practice architecture means to offer or render services in connection with the design and construction of a building, or group of buildings and the space within the site surrounding the...
by profession, took up residence in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. The younger, Ashbel H. Barney II, joined the Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
firm of Rogers & Gould, in which Barney was still a special member.
William C. Whitney gave a debutante
Debutante
A débutante is a young lady from an aristocratic or upper class family who has reached the age of maturity, and as a new adult, is introduced to society at a formal "début" presentation. It should not be confused with a Debs...
ball for Barney's daughter Helen at the Whitney mansion, 871 Fifth Avenue, on January 5, 1901.
With his mustache and beard and slightly thinning hair, Charles T. Barney somewhat resembled his late, well-regarded father in appearance. He was one of Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
's most prominent bankers, but his career came to a rapid and ignominious end in October 1907.
Panic of 1907
In 1907, the Knickerbocker entered into a deal organized by speculators F. Augustus HeinzeF. Augustus Heinze
Fritz Augustus Heinze was one of the three "Copper Kings" of Butte, Montana, along with William Andrews Clark and Marcus Daly...
and Charles W. Morse
Charles W. Morse
Charles Wyman Morse was a notorious businessman and speculator on Wall Street in the early 20th century.-Early life:...
to corner the market
Cornering the market
In finance, to corner the market is to get sufficient control of a particular stock, commodity, or other asset to allow the price to be manipulated. Another definition: "To have the greatest market share in a particular industry without having a monopoly...
of the United Copper Company. On Tuesday, October 15, 1907 their plan failed spectacularly when the share price of United Copper collapsed. Heinze's brokerage firm failed on October 17, and he was forced to resign as president of the Mercantile National Bank. On October 19 Morse was forced out of the banks with which he had been associated. Realizing that the Knickerbocker was involved in the failed cornering, depositors began to remove their deposits from the bank.
On October 21, Monday of the week after the bid collapsed, the board of the Knickerbocker Trust Company asked Barney to resign after he admitted involvement in the Morse speculations. That afternoon, the National Bank of Commerce announced it would no longer clear checks for the Knickerbocker. The next day, a massive bank run
Bank run
A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...
forced the Knickerbocker to suspend operations. George L. Rives, Henry C. Ide and Ernst Thalmann were named receivers. The failure of the Knickerbocker was the keystone of the Panic of 1907
Panic of 1907
The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on...
.
Barney's successor as president of Knickerbocker, A. Foster Higgins of Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
, was an unfortunate choice.
He was 77 years old and quite garrulous. Foster made public statements, including one following the death of Barney, that greatly embarrassed the Rehabilitation Committee under F.G. Bourne and William A. Tucker that was trying to get the trust company on its feet again.
Death
Barney himself was not ruined financially. Despite his resignation he still had an estimated $2.5 million in assets over and above liabilities. But personally he was disgraced. On the morning November 14, Barney was in his bedroom on the second floor of the house, with two windows facing 38th Street. He was accustomed to eat breakfast here and then conduct business by telephone before dressing in late morning. On this particular morning, Lily Barney and Mrs. Susan Abbott Mead, a guest who had arrived from Europe two weeks before, were in Lily's adjoining bedroom. Shortly before 10:00 a.m. they heard a shot fired in Barney's room. Mrs. Mead ran into the room and saw Mr. Barney standing. Mrs. Mead called to Lily Barney, who ran into the room. As she approached her husband, he fell to the floor and she cradled his head in her lap. Ashbel H. Barney II, who had heard the shot on the first floor, thereupon entered the room. Barney told his son, "Don't move me."Barney had shot himself in the abdomen with a .32 caliber revolver. Lily Barney later told Coroner Harburger that pistols were kept on every floor of the house for protection. Medical assistance was summoned, and in the meantime Barney made and signed arrangements for the disposal of his affairs in addition to his existing will. Then, still in his home, he underwent exploratory surgery at the hands of Dr. Joseph A. Blake and the family's physician, Dr. George A. Dixon. Barney died at 2:30 p.m. while still under anesthesia.
Barney's funeral was conducted at the residence on November 16, 1907, by the Rev. Dr. Charles H. Parkhurst of the Madison Square Presbyterian Church
Madison Square Presbyterian Church, New York City (1906)
Madison Square Presbyterian Church was a Presbyterian church in Manhattan, New York City, located on Madison Square Park at the northeast corner of East 24th Street and Madison Avenue. It was designed by Stanford White in a High Renaissance architectural style, with a prominent central dome over a...
. Some 40 persons were present for the private service, among them Barney's widow and their two daughters and one son (the other was in Europe). Also present were Harry Payne Whitney
Harry Payne Whitney
Harry Payne Whitney was an American businessman, thoroughbred horsebreeder, and member of the prominent Whitney family.- Early years :...
, Henry Melville Whitney
Henry Melville Whitney
Henry Melville Whitney was an American industrialist, the founder of the West End Street Railway Company of Boston, Massachusetts, and later the Dominion Coal Company Ltd. and the Dominion Iron and Steel Company Ltd. of Sydney, Nova Scotia...
, Joseph S. Auerbach, Dr. George A. Dixon and Barney's lawyers, George L. Nichols and Arthur H. Masten. Following the service, the hearse took Barney's body to Grand Central Station, from whence a special train took it to Woodlawn Cemetery. Parkhurst said a prayer at the graveside.