14151. State Bank (New Brunswick, NJ)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1873*
Location
New Brunswick, New Jersey (40.486, -74.452)

Metadata

Model
gpt-5-mini
Short Digest
fe0fea04

Response Measures

None

Description

Articles describe the State Bank of New Brunswick suspending in 1873, being reorganized/reopened with new capital, then failing again and ultimately being in the hands of a receiver by the mid-1870s. No explicit bank run is described; the principal cause was internal fraud/misconduct by the cashier (missing assets). Dates for the second failure are given relative to the articles (two years ago) so estimated to mid-1876; newspaper OCR had minor errors but bank name and location are clear.

Events (3)
1. January 1, 1873* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension following disappearance/loss of assets attributed to cashier Greenleaf W. Appleton and falsified books; alleged conspiracy to defraud depositors.
Newspaper Excerpt
The bank suspended in 1873
Source
newspapers
2. January 1, 1874* Other
Newspaper Excerpt
some of the director's started it again with a new capital of $250,000. The bank was reorganized with a capital of $250,000, but it failed again two years ago, and is now in the hands of a receiver. (reorganization/reopening implied)
Source
newspapers
3. January 1, 1876* Receivership
Newspaper Excerpt
it failed again two years ago, and is now in the hands of a receiver. / is now in the hands of a receiver. The bank ... is now in the hands of a receiver. (reported 1878). The bank ... is now in the hands of a receiver.)
Source
newspapers

Newspaper Articles (3)
1. October 2, 1878 The Lambertville Record Lambertville, NJ
Article from The Lambertville Record, October 2, 1878

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Article Text

AN OLD STORY RECALLED.-The carpet mills in New Brunswick, which were closed in consequence of the failure of the company three or four years ago, have been reopened, and Charles N. Woodworth, the former President of the Company, is President of the new company. Four years ago the mills employed 250 hands and manufactured a million yards of carpet annually. The story of its failure is connected with the failure of the State Bank of New Brunswick, and Woodworth was tried on a charge of having conspired with Greenleaf W. Appleton, cashier of the State Bank, to defraud the bank. Appleton fled to Europe and has not since returned. The bank's assets of over $1,000,000 had disappeared some way or other. On the trial of Woodworth it was shown that the bank's books had been falsified by the Cashier's directions, and that no credit had been given to the New Brunswick Carpet Company for deposits made by President Woodworth. Mr. Woodworth, after a most exciting trial, which lasted three weeks, was acquitted. The bank meanwbile began proceedings against the carpet company to recover $667,000 claimed to be due, and E. E. N. Miller was appointed assignee. Mr. Miller's report, which has just been filed, says that instead of a balance of $667,000 being due by the carpet company to the bank there is a balance of $100,000 due by the bank to the carpet company. The bank suspended in 1873, but some of the director's started it again with a new capital of $250,000. Two years ago it failed again and is now in the hands of a receiver. Mr. Woodworth had invested all his money in the carpet company, and its failure ruined him.

2. October 2, 1878 New-York Tribune New York, NY
Article from New-York Tribune, October 2, 1878

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Article Text

A BANK CASHIER'S GREAT FRAUDS. The failure of the large carpet mills at NewBrunswick, N. J., about four years ago, caused great surprise and excitement. The mills, which were operated by a stock company, of which Charles N. Woodworth was president, did an immense business. about 1,250,000 yards of fine carpets being manufactured yearly. Nearly 300 persons were thrown ou of employment by the failure. The State Bank of the same city failed some time before, and Mr. Woodworth was indicted upon charges of having formed a conspiracy with G. W. Appleton, the eashier, to defraud the bank, the entire capttal of $1,000,000 having been lost. Before the trial opened, Appleton fled to Europe, where he is now a fugitive from justice. The defence showed that the deposits made to the credit of the New-Brunswick Carpet Company by President Woodworth had not been duly credited, and that the books of the bank had been falsified by the order of the riuaway eashier. The trial ended in Mr. Wood worth's acquittal. The officers of the bank claimed that the Carpet Company owed the bank $670,000, and brought a suit for that amount. E. E. N. Miller was appointed assignee. The bank was reorganized with a capital of $250,000, but it failed again two years ago, and 11 is now in the hands of a receiver. The Carpet Company has also been reorganized with Robert N. Woodworth as president. Mr. Miller, the assignee of the old company, has filed a report with Chancellor Runyon, which has caused great wonder among all except Mr. Woodworth's friends. His report shows that the bank owes the Carpet Company $100,000 instead of the latter owing the former $670,000. The depositors have recently secured an order from the Chancellor directing the receiver of the bank to convert all assets into cash and pay the claimants pro rata. Suits are to be instituted against the directors Individually to recover the balance.

3. November 25, 1878 The Sun New York, NY
Article from The Sun, November 25, 1878

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Article Text

BANK OFFICERS ARRESTED. ACCUSATIONS OF CONSPIRACY TO DEFRAUD THE DEPOSITORS. Directors of the State Bank Ball-The of New Five Compelled to Give Averments Brunswick of those who are Complainants. BRUNSWICK, N. J., Nov. 24. The Jr., arNEW Abraham Voorhees. Joseph Fisher, Jarrard. rest of Staats. Sr., and ex-Senator at New Frederick of the defunct State Bank to dedirectors upon a charge of conspiracy Five Brunswick. the depositors. is the topic to-day. considered fraud the bank. which had been the oldest years ngo the soundest. as it was one of announced one of State. closed its doors. It was with in the entire Assets had been made away Applethat its conspiracy between Greenleaf W. Robert N. by a cashier of the bank. and Brunston. Woodworth. the President of the Appleton New reCarpet Company. wick in New Brunswick for without some mained the suspension of the bank. to time attempt after being made by the directors length any him. He and Woodworth were at he has arrest and he fied to England, where and indicted, since. He is of a literary turn. London. remained recently published a novel in New has voluntarily returned his from trial in Woodworth New Brunswick to stand W. Brooke York to He was defended by Charles 1874. New York, and was acquitted. Prosecutor after a pro- was assisted by eminent tracted of trial. in which counsel. the State whose New Brunswick Carpet Company. The above par before these proceedings. applicastock thrown was into bankruptcy upon the that it was the bank directors. who charged N. Miller tion of indebted to the bank. T. of both was heavily who was appointed receiver recently to of Newark. and carpet company. reported combank Chancellor that. instead of the carpet inthe owing the bank. the bank was The heavily carpet pany to the carpet company. by Mr. debted been reorganized recently successful opthe under company Woodworth has and is once name more of the in United States Carpet eration Company. Bank remained closed a short of time its The State announced that some enough only. It directors was had advanced money on a sound wealthy it to resume business under seemingly to basis. enable and it was reopened Conover. who had favorable auspices. before Appleton. George but had habits. been disbeen cashier account of his dissipated until about replaced his on place. The bank ran it on once more sumed and then New Brunsa year ago. and Col. Newell, of announced suspended. wick was appointed receiver. would It was be paid in at first that the depositors and the depositors were full. but time passed. At length they began Woodworth, to move. disappointed. Brooke. who defended engaged Counsellor and Mercer Beasley of Trenton. October were last an order to represent them. from Chancellor In Runyon. cause direct- why was ing the obtained receiver of the turn the bank to assets show of the bank heshould into money not to at satisfy once force the claims the receiver of its creditors. to disThe purpose WAS the to absence of any appreciable be brought the close assets. at in once order directors that for suits the might deficiencies thus ascertained. against of Middlesex. having the a deposit Board in of the The county defunct bank. the Robert counsel Adrain. of and County Freeholders, Charles Mr. Cowenhoven. also proceeding. appear Prosecutor. in the present warrant of arfor the complaint prosecution upon which the the President. rest The is founded Voorhees alleges (a septuagenarian that maiden of whose New marriage Abraham to was a beautiful recently descr young Ibed in the THE SUN). directBrunswick the cashier. and deceive Joseph named Fisher. conspired Jr., to defraud their and usual quarthe ors depositors by publishing in January. 1877. a to copy the terly bank verified statement under oath. is represented attached to of complaint. which. in which amount they are of about $250,000. have assets fact, to the the concern was April. then Alderman bankrupt, when. suspending in in the following the committee of John 8. Clark, makes representing the complaint among Other the aver- asdepositors, ments in the complaint notes are drawn that by George his sets. so called. cashier are (who since resumed of the direcdrinking Conover. the habits and died), although in favor he was not at is tors, the time for a worth large amount. a dollar. Another on the day averment before the it one of the bank. and when to withwas bankrupt. which he accordingly are that suspension of the recommended directors. a friend they knew did. condraw his deposits. Fisher. and Staats was 8 Messrs. wealthy. Voorhees Ex-Senator financially Jarrard in his rebut sidered has probably suffered He is the Republican the cent political the contests. county. and a member were of bailed manager Republican of State Committee. They in $5.000 Woodworth each. was tried for conspiracy said that to When the bank. common rumor had connived defraud of the directors of the bank and knew more at some Appleton's escape to the Europe. bank's assets than was of about the absence The of extraordinary thearrnighment feature made to appear. prosecution will be Wood the present men who pushed against now brought of the very 1874 the charge that is to defraud the worth in themselves of conspiracy State against Bank at New Brunswick.