14053. Mechanics and Laborers' Savings Bank (Jersey City, NJ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 13, 1888
Location
Jersey City, New Jersey (40.728, -74.078)

Metadata

Model
gpt-5-mini
Short Digest
54dbb6fd

Response Measures

None

Description

Articles (May and July 1888) describe the bank as defunct with a receiver (Washington B. Williams) pursuing litigation and a rejected compromise offer by directors to pay depositors. No mention of a depositor run; the bank is in receivership and being wound up, so classify as suspension leading to closure. 'Savings Bank' likely state-chartered.

Events (3)
1. May 13, 1888 Other
Newspaper Excerpt
the defunct Mechanics and Laborers' Savings Bank, who are the defendants in a suit brought by Receiver Williams to recover the amount due the depositors, have grown tired of litigation and offered to compromise for $50,000.
Source
newspapers
2. May 13, 1888 Receivership
Newspaper Excerpt
Receiver Williams to recover the amount due the depositors... Receiver Williams favored the acceptance of the same.
Source
newspapers
3. July 26, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had failed/was insolvent leading to receivership; directors offered compromise to pay depositors $50,000 which court refused.
Newspaper Excerpt
When the bank failed, the amount on deposit was about $219,000. ... Vice-Chancellor Van Fleet in his order says...
Source
newspapers

Newspaper Articles (2)
1. May 13, 1888 New-York Tribune New York, NY
Article from New-York Tribune, May 13, 1888

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Article Text

NEWS FROM THE SUBURBS JERSEY CITY. William Parker, of Wayne-st. was arrested by Do tective Dalton yesterday, charged with stealing books from the Young Men's Christian Association library. He admitted having stolen twenty volumes. The directors of the defunct Mechanics and Laborers' Savings Bank, who are the defendants in a suit brought by Receiver Williams to recover the amount due the depositors, have grown tired of litigation and offered to compromise for $50,000. Dr. James Paul, the well-known physician, who was sent to the lunatic asylum about two weeks ago. was declared insane yesterday by a lunacy commission and & jury, and a guardian will be appointed to take care of his estate. John A. Blumenstock, who is in the county jail waiting to be removed to the Trenton State Prison to serve a term of two years, was married yesterday to Mary Kampf, with whom he has been living for about a year. He will be taken to Trenton to-day and spend his honey. moon in prison. Charles Watson, an alleged " green-goods* dealer with several aliases, who was arrested a few days ago, had an examination yesterday before United States Commissioner Romaine. He claims that It is a case of mistaken identity, but Postmaster Kelly and two of his clerks testified that he hired a lock-box in the post office and called there regularly for his mall. Commissioner Romaine continued the examination until Monday, the 28th inst. and reduced Watson's bail from $1,500 to $1,000,

2. July 26, 1888 New-York Tribune New York, NY
Article from New-York Tribune, July 26, 1888

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Article Text

REFUSING TO COMPROMISE WITH THE BANK. Trenton, N. J., July 25 (Special).-Washington B. Williams, receiver of the Mechanics and Laborers' Savings Bank, of Jersey City, has filed a supplementary communication with the Chancellor in regard to the settlement of the bank's affairs by the acceptance of the compromise offered by thirteen of the directors, who wished to pay $50,000 to the depositors, in full for all claims against them. Receiver Williams favored the acceptance of the same. Under a later showing. however, the receiver stated to the court that he did not wish to advise an acceptance of the offer. but would leave It. without recommendation. for the court to decide upon its merits. The court has decided not to accept the offer. Vice-Chancellor Van Fleet in his order says: "Since the receiver laid this offer before the court, part of the persons in whose behalf this suit is brought have expressed themselves as strongly opposed to the acceptance of the offer. When the bank failed, the amount on deposit was about $219,000. Persons holding about $81,000 of this amount oppose acceptance; persons holding about $42,000 favor acceptance: and those holding the other $96,000 say nothing."