Charles T. Barney
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Charles Tracy Barney (January 27, 1851 – November 14, 1907) was an American banker who was the president of the
Knickerbocker Trust Company The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907. History The bank was chartered in 1884 by Frederick G. Eldridge, a ...
, the collapse of which shortly before Barney's death sparked the
Panic of 1907 The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange suddenly fell almost ...
.


Early life

Charles T. Barney was born on January 27, 1851, in
Cleveland, Ohio Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, Ohio, Cuyahoga County. Located along the southern shore of Lake Erie, it is situated across the Canada–United States border, Canada–U.S. maritime border ...
, the son of Ashbel H. Barney (1816–1886) and Susan ( Tracey) Barney. His father was a successful forwarding and
commission merchant A merchant is a person who trades in goods produced by other people, especially one who trades with foreign countries. Merchants have been known for as long as humans have engaged in trade and commerce. Merchants and merchant networks operated i ...
. In 1857, the family moved to
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
, where his father was a director (1859–83), vice president (1867–69) and president (1869–70) of
Wells Fargo & Company Wells Fargo & Company is an American multinational financial services company with a significant global presence. The company operates in 35 countries and serves over 70 million customers worldwide. It is a systemically important fi ...
. Barney attended
Williams College Williams College is a Private college, private liberal arts colleges in the United States, liberal arts college in Williamstown, Massachusetts, United States. It was established as a men's college in 1793 with funds from the estate of Ephraim ...
in
Williamstown, Massachusetts Williamstown is a town in Berkshire County, Massachusetts, United States. It shares a border with Vermont to the north and New York to the west. Located in Berkshire County, the town is part of the Pittsfield, Massachusetts metropolitan statis ...
, where he was a member of
Kappa Alpha Society The Kappa Alpha Society () is a North American social college fraternity. Founded in 1825, it was the progenitor of the modern fraternity system in North America. It is considered to be the oldest national, secret, Greek-letter social fraterni ...
, graduating in 1870. Following graduation he moved to New York and entered banking. With his mustache and beard and slightly thinning hair, Barney somewhat resembled his late, well-regarded father in appearance.


Banking career

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 The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
. He joined the
Knickerbocker Trust Company The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907. History The bank was chartered in 1884 by Frederick G. Eldridge, a ...
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 McKim, Mead & White was an American architectural firm based in New York City. The firm came to define architectural practice, urbanism, and the ideals of the American Renaissance in ''fin de siècle'' New York. The firm's founding partners, Cha ...
. There were also branch offices at 66 Broadway and in
Harlem Harlem is a neighborhood in Upper Manhattan, New York City. It is bounded roughly by the Hudson River on the west; the Harlem River and 155th Street on the north; Fifth Avenue on the east; and Central Park North on the south. The greater ...
and
The Bronx The Bronx ( ) is the northernmost of the five Boroughs of New York City, boroughs of New York City, coextensive with Bronx County, in the U.S. state of New York (state), New York. It shares a land border with Westchester County, New York, West ...
. In his real estate operations, Barney joined
William C. Whitney William Collins Whitney (July 5, 1841February 2, 1904) was an American political leader and financier and a prominent member of the Whitney family. He served as Secretary of the Navy in the first administration of President Grover Cleveland from ...
, 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 Eastern Steamship Lines was a shipping company in the United States that operated from 1901 to 1955. It was created through successive mergers by Wall Street financier and speculator Charles W. Morse.Robert F. Bruner and Sean D. Carr, ''The Panic ...
,
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. Even aft ...
, 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 City Subway The New York City Subway is a rapid transit system in New York City serving the New York City boroughs, boroughs of Manhattan, Brooklyn, Queens, and the Bronx. It is owned by the government of New York City and leased to the New York City Tr ...
and the
Metropolitan Opera The Metropolitan Opera is an American opera company based in New York City, currently resident at the Metropolitan Opera House (Lincoln Center), Metropolitan Opera House at Lincoln Center, situated on the Upper West Side of Manhattan. Referred ...
and Real Estate Company. Barney was also treasurer of the
New York Zoological Society New or NEW may refer to: Music * New, singer of K-pop group The Boyz * ''New'' (album), by Paul McCartney, 2013 ** "New" (Paul McCartney song), 2013 * ''New'' (EP), by Regurgitator, 1995 * "New" (Daya song), 2017 * "New" (No Doubt song), 1 ...
from 1901 to 1903.


Panic of 1907

In 1907, the Knickerbocker entered into a deal organized by speculators F. Augustus Heinze and Charles W. Morse to
corner the market In finance, cornering the market consists of obtaining sufficient control of a particular stock, commodity, or other asset in an attempt to manipulate the market price. Companies that have cornered their markets have usually done so in an attemp ...
of the
United Copper Company The United Copper Company was a short-lived United States copper mining business in the early 20th century that played a pivotal role in the Panic of 1907. United Copper was incorporated in 1902 by F. Augustus Heinze, a copper magnate who had tus ...
. 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 A bank run or run on the bank occurs when many Client (business), clients withdraw their money from a bank, because they believe Bank failure, the bank may fail in the near future. In other words, it is when, in a fractional-reserve banking sys ...
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 The Panic of 1907, also known as the 1907 Bankers' Panic or Knickerbocker Crisis, was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange suddenly fell almost ...
. Barney's successor as president of Knickerbocker, A. Foster Higgins of
Greenwich, Connecticut Greenwich ( ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. As of the 2020 United States census, 2020 census, it had a population of 63,518. It is the largest town on Gold Coast (Connecticut), Connectic ...
, 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.


Suicide

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 of November 14, Barney was in his bedroom on the second floor of the house, with two windows facing 38th Street. He was accustomed to eating breakfast here and then conducting 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. 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 (April 29, 1872 – October 26, 1930) was an American businessman, thoroughbred horse breeding, horse breeder, and member of the prominent Whitney family. Early years Whitney was born in New York City on April 29, 1872, as ...
,
Henry Melville Whitney Henry Melville Whitney (October 22, 1839 – January 25, 1923) 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 ...
, 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 Woodlawn Cemetery is the name of several cemeteries, including: Canada * Woodlawn Cemetery (Saskatoon) * Woodlawn Cemetery (Nova Scotia) United States ''(by state then city or town)'' * Woodlawn Cemetery (Ocala, Florida), where Isaac Rice and fa ...
. Parkhurst said a prayer at the graveside.


Personal life

Barney married Laurinda Collins "Lily" Whitney, daughter of Brigadier General James Scollay Whitney and the former Laurinda Collins (a descendant of Plymouth governor William Bradford). She was the sister of
William Collins Whitney William Collins Whitney (July 5, 1841February 2, 1904) was an American political leader and financier and a prominent member of the Whitney family. He served as Secretary of the Navy in the first administration of President Grover Cleveland from ...
, the patriarch of the
Whitney family The Whitney family is a prominent American family descended from non-Norman English immigrant John Whitney (1592–1673), who left London in 1635 and settled in Watertown, Massachusetts. The historic family mansion in Watertown, known as The Elm ...
, industrialist
Henry Melville Whitney Henry Melville Whitney (October 22, 1839 – January 25, 1923) 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 ...
, president of the
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. Even aft ...
, and Susan Collins Whitney, married attorney Henry F. Dimock. The Barneys were the parents of: * Ashbel Hinman Barney II (1876–1945), who was in charge of the holdings of his family through the Barney Estate Company. * James Whitney Barney (1878–1948) * Gardiner Tracy Barney (1880–1887) * Helen Tracy Barney (1882–1922), who married Archibald Stevens Alexander. After his death, she married Frederick N. Watriss. * Katharine Lansing Barney (1885–1958), who married Courtlandt Dixon Barnes * Marie Barney, who married Harry Newell Reynolds (d. 1917). 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 New or NEW may refer to: Music * New, singer of K-pop group The Boyz * ''New'' (album), by Paul McCartney, 2013 ** "New" (Paul McCartney song), 2013 * ''New'' (EP), by Regurgitator, 1995 * "New" (Daya song), 2017 * "New" (No Doubt song), 1 ...
from 1904 until his death. Of his sons, the elder, James W. Barney, was graduated from
Yale University Yale University is a Private university, private Ivy League research university in New Haven, Connecticut, United States. Founded in 1701, Yale is the List of Colonial Colleges, third-oldest institution of higher education in the United Stat ...
in 1900 and, an
architect An architect is a person who plans, designs, and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
by profession, took up residence in
Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
. The younger, Ashbel H. Barney II, joined the
Wall Street Wall Street is a street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway (Manhattan), Broadway in the west and South Street (Manhattan), South Str ...
firm of Rogers & Gould, in which Barney was still a special member. William C. Whitney gave a
debutante A debutante, also spelled débutante ( ; from , ), or deb is a young woman of aristocratic or upper-class family background who has reached maturity and is presented to society at a formal "debut" ( , ; ) or possibly debutante ball. Origin ...
ball for Barney's daughter Helen at the Whitney mansion, 871 Fifth Avenue, on January 5, 1901.Cleveland Amory, ''Who Killed Society?'', pp. 502-503. New York: Harper & Brothers, 1960. Through his daughter Helen, Barney was the grandfather of Archibald S. Alexander (1906-1979), Under Secretary of the Army in the Truman Administration.


References

{{DEFAULTSORT:Barney, Charles T. 1851 births 1907 deaths Businesspeople from Cleveland Whitney family Williams College alumni Wildlife Conservation Society people Knickerbocker Trust Company North American Trust Company people Trust Company of America people 19th-century American businesspeople 1907 suicides American bank presidents Businesspeople from New York City American businesspeople in real estate People from Murray Hill, Manhattan Suicides by firearm in New York City