Columbia Trust Company - New York, NY

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust
Start Date: July 19, 1911
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: c755bb46bfcc45e8

Response Measures

None

Description

Article (New-York Tribune, 1911-07-20) describes heavy withdrawals after knowledge/fear of a grand jury investigation into objectionable loans and stock sale. Directors called loans, paid out more than $100,000, and adopted a resolution to dissolve the bank with a stockholders' meeting set for August 22 to consider liquidation. Thus a run/large withdrawals precipitated voluntary liquidation and permanent closure.

Events (2)

1. July 19, 1911 Run

Cause: Bank Specific Adverse Info
Cause Details: Fear of a grand jury investigation into objectionable loans and sale of stock led depositors to withdraw funds.
Measures: Directors called $75,000 of loans made from deposits; bank paid depositors in full as they called for their money; resolution for dissolution proposed.
Newspaper Excerpt: The bank remained open until is o'clock yesterday and paid out a little more than $100,000 to those depositors who had heard of the liquidation.
Source: newspapers

2. August 22, 1911 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors passed a resolution to dissolve the bank; stockholders' meeting set to consider formal liquidation/dissolution.
Newspaper Excerpt: On August 22 there will be a meeting of stockholders to consider the directors' resolution for the dissolution of the bank.
Source: newspapers

Newspaper Articles (1)

1. July 20, 1911 New-York Tribune New York, NY

Article from New-York Tribune, July 20, 1911

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Article Text

Feared Grand Jury Investigation. It was apparently the knowledge that Mr. Wise was investigating that filled the directors and Mr. Reimers with fear. They jumped to the conclusion that there would be a grand jury investigation of the objectionable loans and the sale of their stock, with the attendant 'publicity that would bring on a run on the bank. The capital of $200,000 and the surplus of $51,000 are unimpaired. There were deposits of $260,000, a reduction of a little more than $100,000 from the high mark of $475,000. The loans from deposits amounted to $75,000, all well secured, and these were at once called. There still remain out loans of $200,000, all made from capital and surplus, while the bank opened its doors yesterday with $6,000 more cash in the vaults than was needed to pay all the depositors in full. The bank remained open until is o'clock yesterday and paid out a little more than $100,000 to those depositors who had heard of the liquidation. The other depositors will be paid as they call for their money, and on August 22 there will be a meeting of stockholders to consider the directors' resolution for the dissolution of the bank. David S. Mills was trust officer of the Columbia Trust Company from January, 1906, when it began business, until April, 1909, when he resigned to organize a national bank. The Audubon National Bank, which it was first proposed to call the Manhattan National Bank, was the outcome of these efforts. He met Reimers, who had been connected with banks in the Washington Heights section for seventeen years, through Jacob Ehrlich, one of the first directors of the Audubon Bank. Mills gave poor health as his reason for resigning in June and soon after went to a hospital for an operation. He drew $6,000 a year as president of the bank. He is now sick at his home, at No. 306 West 102d street. The directors of the bank are Louis Annin Ames, J. E. Blackburn. Alexander V. Blake, A. J. Cooper, Peter Condon, Wright Gillies, John J. Healey, George W. Kavanaugh, John F. Oltrogge. William Reimers and Francis MacD. Sinclair.