10583. E. J. Arnold & Co. (Saint Louis, MO)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
private
Start Date
February 11, 1903
Location
Saint Louis, Missouri (38.627, -90.198)

Metadata

Model
gpt-5-mini
Short Digest
bd261d8f

Response Measures

Full suspension

Other: Receiver appointed by U.S. District Court (bankruptcy) following run and suspension.

Description

Newspaper accounts (Feb 11–14, 1903) describe depositors thronging E. J. Arnold & Co., an apparent run on the turf investment concern; payments were refused/suspended and creditors filed for bankruptcy. A U.S. District Court receiver was appointed on 1903-02-26, indicating permanent closure/receivership. Cause attributable to panic triggered by attachment suit on the related John J. Ryan co-operative company and consequent runs on similar local investment concerns.

Events (3)
1. February 11, 1903 Run
Cause
Local Banks
Cause Details
Run began after an attachment suit served on the John J. Ryan Co-Operative company; depositors at multiple turf investment firms rushed to withdraw funds.
Measures
Depositors were informed they must give thirty days' notice at some firms; E. J. Arnold & Co. initially refused to pay dividends or principal and delayed payments pending Arnold's return.
Newspaper Excerpt
The offices of the various turf investment companies were thronged...the offices of E. J. Arnold & Co. were filled with frantic people...clamoring to withdraw their investments.
Source
newspapers
2. February 11, 1903 Suspension
Cause
Local Banks
Cause Details
Following the run and publicity/attachments affecting related turf companies, Arnold & Co. announced it had no money to pay dividends or principal and effectively suspended payments.
Newspaper Excerpt
announcement ... that the company had no money to pay either dividends or principal.
Source
newspapers
3. February 26, 1903 Receivership
Newspaper Excerpt
Solomon J. Swarts was ... appointed by the United States District Court receiver for E. J. Arnold & Co., and took charge of the concern's affairs after giving bond ... placed a Deputy United States Marshall in charge of: the Arnold office ... will assume general charge of the assets for the benefit of all the creditors.
Source
newspapers

Newspaper Articles (10)
1. February 11, 1903 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, February 11, 1903

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Article Text

Officers of the St. Louis Investment Companies Thronged With Anxious Depositors THEIR MONEY IS ALL GONE Arnold & Co. Admit They Have Nothing With Which to Pay Either Dividends or Principal-Some of the Companies Still Claim They Are Solvent-General News. St. Louis, Mo., Feb. 11.-Crowds of men and women filled the offices of several co-operative turf companies yesterday and today demanding the return of their investments. This was the result of E. J. Arnold & Co.'s announcement rescinding the right of St. Louis investors to withdraw their money on demand. One woman fainted in the eager crowd that surged outside the office of the International Investment Company in the Nulsen building at the southwest corner of Sixth and Olive streets. All depositors who appeared were paid off in checks on the Lineoln Trust Company. The Christy Syndicate Investment Company's offices in the Missouri Trust Company building were filled with investors withdrawing their money. The managers of the several concerns that experienced a run on their treasuries are unanimous in their indicidual declaration that they are solvent. These companies have been paying from 2 to 5 per cent dividends a week. It is estimated that the money invested by St. Louisans alone in the co-operative turf companies runs into the millions. Manager Gill of E. J. Arnold & Co. admitted that a legislative investigation of the concern was to take place. "I got my information from newspapers," he said, "and as the firm I represent is the one foremost in St. Louis, I surmised that it would be the first to be examined. I have no further information of an examination to be made." Mr. Gill stated that the publicity given to the turf investment companies today would force his firm to cease business. "We are perfectly solvent, and will be able to pay all claims," he declared, "but the agitation has so destroyed the public faith in such investments that it would be difficult to carry them on advantageously." "Mr. Arnold, the president of the company, will arrive from Hot Springs tomorrow morning, and whether the company continues its operations or discontinues will be decided by him."

2. February 12, 1903 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 12, 1903

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SAY THEY WILL PAY. Arnold Investment Co. Declare Assets Exceed Liabilities. St. Louis, Feb. 12.-As during the past two mornings, throngs composed largely of the poorer classes, surrounded the entrances to various co-operative investment companies offices this morning endeavoring to withdraw deposits. At the offices of E. J. Arnold & Co., while no money was being paid out, it was asserted by Manager L. A. Gill that the company is entirely solvent, "We will pay off every dollar we owe," he said, "in fact the company's liabilities will not xeceed $20,000 and its assets are worth twice that sum, but it takes time. If these people had not tied us up I would have realized on $100,000 worth of property before this time and have paid off subscribers." John J. Ryan, of John J. Ryan & Co., returned to St. Louis from Cincinnati this morning. "I do not know what our cash balance is just yet," said Mr. Ryan, "but I do know that it is not sufficient to meet the demands of our subscribers. Investors will have to take whatever is left." The Christy Syndicate company announced today that they had suspended all business for a few days and would neither receive any money, return any deposit or pay any dividends. A clamorous crowd stood before the entrance to the International Investment company's office today. Officers guarded the entrance and permitted only a few to enter at a time. The International company has paid off investors during the two days of the run and announced that payments would be continued today.

3. February 12, 1903 Arizona Republican Phoenix, AZ
Article from Arizona Republican, February 12, 1903

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THE ARNOLD PANIC CAUSED BY ANOTHER The Head of the Firm Says That All Investors Will Be Paid. St. Louis, Mo., February 11.-As the result of a suit of attachment served on the John J. Ryan Co-Operative company on Tuesday, a run was started by the depositors on a number of co-operative turf investment companies here today and a petition was filed in United States court by creditors asking that E. J. Arnold & Co. be made to show why they should not be declared bankrupt. Tonight Arnold wired from Hot Springs where he now is, that he is not bankrupt and would settle with his creditors, and that they would lose nothing. He is expected here tomorrow. The offices of E. J. Arnold & Co. were filled with frantic people today, madly clamoring to withdraw their investments. In the office of the J. J. Ryan company was enacted a similar scene. People filled the hallways and thronged the streets before the two firms' headquarters and extra police were detailed to preserve order. Depositors were informed that they must give thirty days' notice in order to withdraw.

4. February 12, 1903 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, February 12, 1903

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DEPOSITORS DEMAND MONEY Most of Them, However, Seem to Be Getting ft, in Spite of Excitement. it ST. LOUIS, Feft 11.-The offices of the various turf investment conpanies were thronged from an early hour today with depositors, many of them from out of town, who wished to withdraw their money. At the offices of E. J. Arnold & Co. the announcement was made by Attorney L. D. Goodman, acting for Manager Gill, that the company refused to pay either dividends or principal. Attorney Goodman stated that E. J. Arnold was detained at Hot Springs until he could close out his interests there and that he would return Thursday. At the offices of the International Investment company payments were resumed today to a large number of depositors, among whom were many women. The Christy Syndicate Investment company, which began paying off yesterday, was today crowded with investors who desired a return of their money. John O'Neill, who, with W. C. Christy, composed the company, announced that payment on withdrawals had been suspended for thirty days, but that dividends might be had by any wishing them. "We had to take thirty days to protect our customers," said Mr. O'Neill. "Our assets are $60,000 and we only owe $30,000, so by taking the thirty days we shall be able to turn ourselves around and no one will lose a dollar." Excitement is intense among depositors of the various turf investment companies over the present condition of affairs. A petition has just been presented in the United States district court by creditors asking that Arnold & Co. be declared bankrupt and a receiver appointed to wind up their affairs. A special to the Post-Dispatch just received from Hot Springs, Ark., says: "E.J. Arnold is now holding conferences with his local agent and several local customers, who are making vigorous protests because of the inability to withdraw funds. "Arnold is accompanied by a detective. He says Gill, his St. Louis manager, just called him up over the long distance telephone and said that they have not stated they have no money, for they have, and will pay in full. "Arnold denies failure. He states he has $350,000 assets and this will fully cover all liabilities. His book will open here as usual." KANSAS CITY, Feb. 11.-The Kaneas City office of E. J. Arnold was closed today and the office furniture attached by stockholders. The amount invested here does not exceed $30,000.

5. February 12, 1903 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, February 12, 1903

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THE RUN CONTINUES. Excitement Over Turf Investment Companies at St. Louis. St. Louis, Feb. 11.-The offices of the various turf investment companies which were thronged from an early hour, today, with depositors, many of whom were from out of town, who wished to withdraw their money. At the office of E. J. Arnold & Co. the announcement made by Attorney L. D. Goodman, acting for Manager Gill, that the company had no money to pay either dividends or principal. Attorney Goodman stated that E. J. Arnold was detained at Hot Springs until he could close out his interests there and that he would return here, Thursday. At theoffices of the International Investment Co. payments were resumed. today, to a large number of depositors, among whom many were women. The Christy Syndicate Investment Co, which began paying off, yesterday, was, today, crowded with investors who desired a return of their money. John O'Neill, who with W. C. Christy compose the company. announced that payments on withdraw ils had been suspended for 30 days, but that dividends might be had by those wishing them. Excitement is intense among the depositors of the various turf investment companies over the present condition of affairs. A petition was presented in the United States district court by creditors asking that Arnold & Co. be declared bankrupt and a receiver appointed to wind up its affairs. Arnold denies failure. He states he has $350,000 assets which will fully cover all liabilities. His book will open at Hot Springs as usual.

6. February 12, 1903 The Waxahachie Daily Light Waxahachie, TX
Article from The Waxahachie Daily Light, February 12, 1903

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TURF INVESTMENTS. Officers of Various Companies Are Gathered at St. Louis. St. Louis, Feb. 12-The offices of the various turf investment companies were thronged from an early hour Wednesday with depositors, many of whom were from out of town who wished to withdraw their money. At the office of E. J. Arnold & Co. the announcement was made by Attorney L D. Goodman. acting for Manager Gill, that the company had no money to pay either dividends or principal. Attorney Goodman stated that E. J. Arnold was detained at Hot Springs until he could close out his interests there and that he would return here at once. At the offices of the International Investment company payments were resumed Wednesday to a large number of depositers, among whom were many women. The Christy Syndicate Investment company, which began paying off Tuesday. was Wedresday crowded with investors, who desired to return their money. John O'Neill, who with W. C. Christy composes the company. announced that payment on withdraw. als had been suspended thirty days, but that dividends might be had by any one wisning them. "We had to take thirty days to protect our customers," said Mr. O'Neill. Our assets are $60,000, and we only owe $30,000. so by taking thirty days we shall be able to turn ourselves around, and no one will: lose a dollar." Excitement is intense among depositors of the various turf investment companies.

7. February 12, 1903 New-York Tribune New York, NY
Article from New-York Tribune, February 12, 1903

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ASK RECEIVER FOR TURF CONCERN. E. J. Arnold Says He Has $350,000, Which Will Pay All His Debts. St. Louis, Feb. 1.-The offices of the various turf investment companies were thronged from an early hour to-day with depositors, many of whom were from out of town, who wished to withdraw their money. At the office of E. J. Arnold & Co. the announcement was made by L. D. Goodman, acting for Manager Gill, that the company had no money to pay either dividends or principal. Mr. Goodman said that E. J. Arnold was detained at Hot Springs until he could close out his interests there, and that he would return here to-morrow. At the offices of the International Investment Company payments were resumed to-day to a large number of depositors, among whom were many women. The office of the Christy Syndicate Investment Company, which began paying off yesterday, was crowded to-day with investors who wanted their money. John O'Neill, who, with W. C. Christy, composed the company, announced that payment on withdrawals had been suspended for thirty days, but that dividends might be had by those wishing them. Excitement is intense among the depositors of the various turf investment companies. A petition was presented in the United States District Court by creditors asking that Arnold & Co. be declared bankrupt, and a receiver appointed to wind up the concern's affairs. A dispatch from Hot Springs, Ark., says that F. J. Arnold is holding conferences with his local agent there. and several customers, who are making vigorous protests because of their inability to withdraw funds. Arnold is accompanied by a detective. He says he has $350,000 in assets, which will fully cover all liabilities. His book will open here as usual.

8. February 12, 1903 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, February 12, 1903

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TURF INVESTMENT CONCERN BUSTED E. J. Arnold Firm Announces the Absence of Funds. ST. LOUIS, Mo., Feb. 11.-The offices of the various turf investment companies were thronged from an early hour today with depositors, many of whom were from out of town, who wished to withdraw their money. At the offices of E. J. Arnold & Co. the announcement was made by Attorney L. D. Goodman, acting for Manager Gill, that the company had no money to pa yeither dividends or principal. Attorney Goodman stated that E. J. Arnold was detained at Hot Springs until he could close out his interests there, and that he would return here Thursday. A petition has just been presented in the United States district court by creditors, asking that Arnold & Co. be declared bankrupt and a receiver appointed to wind up its affairs. At the offices of the International Investment company payments were resumed today to a large number of depositors, among whom were many women. The Christy Syndicate Investment company, which began paying off yesterday, was today crowded with investors, who desired a return of their money. John O'Neill, who, with W. C. Christy, composed the company, announced that payment on withdrawals had been suspended thirty days, but that dividends might be had by any wishing them. "We had to take thirty days to protect our customers," said Mr. ONeill. "Our assets are $65,000, and we only owe $30,000, SO by taking the thirty days we shall be able to turn ourselves around, and no one will lose a dollar." Excitement is intense among depositors of the various turf investment companics over the present condition of affairs. E. J. Arnold is now holding conferences with his local agent at Hot Springs, Ark., and several local customers, who are making vigorous protests because of their inability to withdraw funds. Arnold is accompanied by a detective. He says Gill, his St. Louis manager, just called him up over the long-distance telephone, and said that they have not stated they have no money, for they have, and will pay in full. Arnold denies failure. He states he had $350,000 assets, and this will fully cover all liabilities. His book will open at Hot Springs as usual. NEW ORLEANS, La., Feb. 11.-J. L. Morrison today secured an attachment against the stable of horses of E. J. Arnold & Co., at the local race track, in order to secure a claim for $2,500. As a result of a suit of attachments served on the John J. Ryan Co-operative company on Tuesday a run was started by depositors on a number of co-operative turf investment companies here, and today a petition was filed in the United States court by creditors asking that E. J. Arnold & Co. be made to show why they should not be declared bankrupt. Tonight Mr. Arnold wired from Hot Springs, where he now is, that he was not bankrupt and would settle with his creditors, and that they would lose nothing. He is expected here tomorrow. The offices of E. J. Arnold & Co. were filled with people today clamoring to withdraw their investments. In the offices of the John J. Ryan company was enacted a similar scene. People filled the hallways and thronged the streets before the two firms' headquarters, and extra police were detailed to provide order. Depositors were informed that they must give thirty days notice. This served to increase the excitement, and for a time it seemed that a riot would be started, but special police preserved order and no ritious trouble resulted. At the International Investment company depositors were paid as fast as they came, and as they passed out to the street the cry "I've got mine" was incessantly sounded and other anxious depositors pressed forward to get their money. At the offices of the Christy Syndicate Investment company word was given out that depositors must give thirty days notice to get their money.

9. February 14, 1903 Willmar Tribune Willmar, MN
Article from Willmar Tribune, February 14, 1903

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The Alabama legislature is planning a law to invite trust incorporations to that state by removing restrictions on them. Inspector Harris and one constable were killed in battle with 200 insurgents of Gen. San Miquel's command, seven miles from Manila, and 15 natives were killed. Over 400 persons are afflicted with typhoid fever at Ithaca, N. Y., and many students are leaving Cornell university. Arnold & Co.'s St. Louis cooperative turf investment concern suspended payment to depositors, who have $400,000 invested. William Hooper Young, grandson of Brigham Young, the Mormon prophet, pleaded guilty to murder in the second degree and was given a life sentence for killing Mrs. Anna Pulitzer at New York. Prominent Utah citizens have sent a protestto Senator Burroughs against Senator-elect Smoot on the ground that he is an apostle of the Mormon church. John W. Pratt, newspaper man and lawyer, committed suicide at Seattle, Wash., during a fit of insanity. At a sale of live stock at Morning Sun, Ia., 38 hogs were sold for $5,388. said to be the highest price ever paid in the United States. Arguments for and against the demands of the union anthracite mine workers were begun before the coal strike commission in Philadelphia. John L. Sullivan, former champion prize fighter, was discharged in bankruptcy in New York. The new yacht cup defender will be named Republic. Western railroad improvements, involving millions of dollars. have been temporarily abandoned owing to high cost of labor and materials. Resolutions urging the election of United States senators by popular vote were adopted by the Illinois senate. The British protocol has been formally accepted by Minister Bowen in Venezuela's behalf. Germany and Italy still hold to demands for preference. John T. Lenahan, nonunion miners' attorney, in a speech before the strike arbitrators in Philadelphia declared the United Mine Workers' union fomented crime and had no authority to fix wages. Everett Warren attacked its socialistic views. Former Gov. Stanley, of Kansas, has telepraphed to Washington his acceptance of a place on the Dawes commission. The strike in the big office buildings in Chicago has been submitted to arbitration, and elevator men. janitors and others returned to work. Noted secular and religious educators gathered in convention in Chicago to discuss plans for an aggressive campaign for Bible study. In a letter used as a preface to a book President Roosevelt expresses alarm at the tendency of American men and women to shirk duties of marriage, especially parenthood. The suspension of E. J. Arnold & Co. at St. Louis, it is said, gives the turf investment business a death blow. Secretary Root denies the rumor that he will resign when congress adjourns. Thomas Prather, a bartender, shot and killed Robert McSparren, a pugilist, in St. Joseph, Mo., and then killed himself. The governor of Kansas issued a proclamation urging state relief for Swedish famine sufferers. Fire destroyed the plant of the Ontario Malting company at Oswego, N. Y., the loss being $100,000. All the warships in Admiral Glass' squadron started from San Francisco for Honduras. J. Pierpont Morgan's name has been extensively used in a series of forgeries in London, one bank cashing two checks for $55,000.

10. February 26, 1903 Mexico Missouri Message Mexico, MO
Article from Mexico Missouri Message, February 26, 1903

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U. S. COURT NAMES RECEIVER. Solomon L. Swarts Assumes Charge of E. J. Arnold Concern's Affairs. St. Louis: Solomon J. Swarts was Wednesday appointed by the United States District Court receiver for E. J. Arnold & Co., and took charge of the concern's affairs after giving bond in the amount of $50,000. This action was under the bankruptcy statutes, and takes precedence over all other court proceedings relating to garnishments and attachments. Receiver Swarts placed a Deputy United States Marshall in charge of: the Arnold office in the Benoist Buliding, and announced that If necessary he will have the safe blown open to secure the contents. Federal officers will be detailed at once to take charge of the Arnold farm and stock at Greenville, III., and also of the race horses at New Orleans and in California. The authority of the receiver extends over the entire country, and he will assume general charge of the assets for the benefit of all the creditors. It was reported that Arnold has $90,000 on deposit in Bridgeport, Conn., while there is supposed to be from $5,000 to $10,000 in the Boatmen's Bank in this city belonging to the defunct investment company. A small sum is also located at Hot Springs, Ark. Another petition in bankruptcy was filed in the United States District Court against John J. Ryan and O. W. Deppler. The papers were made returnable March 5. The affairs of the Rialto Grain Company were investigated by the Grand Jury. Five witnesses were examined. Police Judge George B. Sidener will tender his resignation to Mayor Wells in order to give his attention to the International Investment Company, which concern he will represent with his law partner, Calvin M. Miller. F. E. Fickeissen files two attachment suits against the John J. Ryan Company for the recovery of money invested. Leonard W. Allen files similar proceedings against William J. Hogue of the International Investment Company to garnishee money deposited in the Lafayette Bank by Miss Clifton.