14247. Merchants Loan & Trust Company (Paterson, NJ)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: July 9, 1877
Location: Paterson, New Jersey (40.917, -74.172)

Metadata

Model: gpt-5-mini
Short Digest: 97d541a3

Response Measures

None

Description

The Merchants' Loan & Trust Company suspended on July 9, 1877 (multiple contemporary wires report 'suspended'). Causes given in press are business depression, injudicious purchases of paper and poor real-estate investments and apparent mismanagement/embezzlement. A receiver was appointed later (Oct 1877 and replaced Oct 31, 1877) and criminal prosecutions followed; the institution did not resume operations and was treated as defunct. No clear contemporaneous report of a depositor run forcing immediate suspension is present—reports emphasize insolvency/embezzlement rather than a panic run.

Events (3)

1. July 9, 1877 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Business depression, injudicious purchases of paper and investments in real estate leading to insolvency/deficiency; reports of cash shortage and questionable withdrawals and preferential payments by officers exacerbated collapse.
Newspaper Excerpt: PATTERSON, N. J., July 9.-The Merchants' Loan and Trust Company has suspended.
Source: newspapers

2. October 4, 1877 Other

Newspaper Excerpt: The grand jury has indicted J. F. Preston, Cashier of the suspended Merchants' Loan & Trust Co., for illegally disposing of the assets of the company after it closed. (Indictments and later convictions followed.)
Source: newspapers

3. October 31, 1877 Receivership

Newspaper Excerpt: Chancellor Runyon...has appointed E. Theodore Bell ... receiver of the Merchants' Loan and Trust Company, to fill the vacancy caused by the removal of J. C. Todd.
Source: newspapers

Newspaper Articles (21)

1. July 10, 1877 The Dallas Daily Herald Dallas, TX

Article from The Dallas Daily Herald, July 10, 1877

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1 HERE AND THERE. I t A Hostile Meeting Between the Cath9 olies and Orangement Imminent in Montreal. I : BOSTON, July 9.-A Montreal disI patch to the Journal says there is ) every prospect of an exciting time / there on Thursday, when the Orange. I men have their customary annual pa4 rade. The Orangement are to come s down from Canada West in large num, bers, to take part in the procession, s which the Montreal Orangement have w decided on having at all hazards. s Nightly drill are going on, and have , been for weeks past in different parts of the city, and fire-arms are being put in order by the opposite party. Indir cations of a hostile meeting between ) the two bodles and bloodshed are numerous, notwithstanding the admoni: tions of advice given both parties by the authorities and elergy. Fire Record. LIVERPOOL, July 9.-The Rotunda theater has been destroyed by fire. DENVER, July 9.-A fire at Delnonte, Colorado, consumed two squares, including the postoffice and five builds ing, valued at $200,000. The Politicians of Brooklyn Excited Over Reductions of Salaries. NEW YORK, July 9.-The threatened discharge, reduction of salary and reorganization of the department of the board of city works, long talked about, were made by the commissioners this morning. Their action caused great excitement among politicians. New Jersey Trust Company Gone UP the Spout. PATTERSON, N.J., July 9.-The Merchants' Loan and Trust Company has i suspended. The depositors are prob. I ably safe. Speculators lose heavily. Another Important Marine Items to Texas Farmers. ) HAVANA, July 9.-The City of Vera I Cruz, hence for New York, about fifty I out, broke her shaft and returned this morning. She will be delayed ten days for repairs. A Town Leveled by a Cyclone in Wisconsin. MILWAUKEE, July 9.-A whirlwind struck Pensauken, Sunday, leaving but three houses. Six persons are known to be killed, twenty wounded and five missing. Death of An Old Railroad Man. ELIZABETH, N.J., July 9.-Colonel J. W. Woodruff, the oldest officer of the New York division of the Penn. sylvania railroad died to-day of paralysia.

2. July 10, 1877 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, July 10, 1877

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Business Embarrassments. PATERSON, N. J., July 9.-The Mer. chants' Loan and Trust Company suspended to-day. Depositors probably safe. The stockholders will lose heavily. The capital of the company was $200,000. Cause of the suspension, business depression, injudicious purchases of paper and investments in real estate. PATERSON, July 9.-The liabilities of the Merchants' Loan and Trust Company to the depositors is $45,000. Secured stockholders will realize fifty cents on the dollar.

3. July 10, 1877 The Wheeling Daily Register Wheeling, WV

Article from The Wheeling Daily Register, July 10, 1877

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Bank Suspension PATTERSON, N. J., July 9.-The - Merchants Loan and Trust Company sus pended to-day. The depositors will probably be safe. The stockholders will loose beavily. The capital of the company is $200,000. The cause of the suspension IS business depressi-n. injudicious purchases of paper and investments in real estate.

4. July 10, 1877 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, July 10, 1877

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MINOR TELEGRAMS. The house of Charles Parcher, South Whitefield, N. H., was burned Sunday night. Loss $1500; insured for $800. There was a very successful test of Bell's telephone at the government torpedo station New port, R. I., Sunday night. The circuit extended five miles under ground. An unoccupied house in Sheffield, Mass., was burned by an incendiary Saturday night. Loss $3500; insurance $2000. The Rhode Island association of pharmacists held their quarterly meeting at Newport yesterday morning, after which they were tendered a banquet by Vice President William H. Cotton. Dr. Kissam, police surgeon at Brooklyn, died Sunday from diphtheria, contracted from one of his patients. A large number of workmen have been discharged by the Brooklyn board of city works and a reduction has been made in the salaries of those retained. The Rotunda Theatre at Liverpool has been burned. Fire at Del Norte, Colorado, on the 6th consumed two blocks, including the post office and San Juan bank, and other property valued at $200,000; insurance small. The books and deposits were saved, and business will be contined. William Daly was murdered at Portsmouth, N. H., Sunday. A coronor's jury is investigat* the affair. The hail storm last week broke all the window glass and destroyed the growing crops on a belt of Long Island several miles wide. Corn and beans have been injured by the rain storms in Illinois, Indiana and Kansas, but wheat is in good condition. Steamer Neversink became disabled off Coney Island Sunday, with a large party of excursionists on board. She was towed to the foot of Lafayette street and her passengers safely landed by tug Maria, whose owner only charged five cents salvage with the proviso that the Neversink should always help any other disabled boats. The house and buildings on the Champton farm, Enfield, N. H., owned by John C. Tupper, was struck by lightning Sunday night and burned with a portion of contents. Loss $2000; insurauce $1000. Col. J. W. Woodruff, the oldest officer on the New York division of the Pennsylvania Railroad,"die of paralysis at Elizabeth, N. J., Sunday. The Merchants' Loan and Trust Company, Paterson, N. J., have suspended. Depositors will be paid. Atkins & Filmore will launch a 1000 ton ship at Newburyport Tuesday. The Pawtucket Navigation Company have a steamer and four coal SCOWS building for the Merrimac river. George Metcalf, who sold liquor to three young men who were drowned recently at St. Johnsbury, has been fined $198 and costs and to be imprisoned till the fine is paid. The Boston Board of Aldermen last night unanimously voted to make the ferries between Boston and East Boston free after January 1 1878. Hon. Thomos Talbot declines the use of his name for candidate for Governor of Massachusetts. The World's Middletown, N. Y., despatch says that W. W. Cox, the defaulting tax collector of Wentage, N. J., is secreted in New York, having left an individual indebtedness behind of $60,000. The trial of Albert F. Joy for the murder of Charles H. Gilman, at Rockport, on the 11th of April last, began at Salem yesterday. A reservoir at Athol gave way yesterday carrying away several mills and causing other damage. Roads were badly washed, The centennial of the capture of Gen. Prescott by Gen. Barton of the American army, will be celebrated today at Portsmouth, R. I. The liabilities of the Merchants' Loan and Trust Company of Patterson, N. J., to depositors are $40,000. Preferred secured stockholders will realize about 50 cents on the dollar.

5. July 10, 1877 Evening Star Washington, DC

Article from Evening Star, July 10, 1877

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19 Admiral Constantin Canaris, President of the new Greek Cabinet, ranks with such aged and vigorous men as Thiers and Gortschakoff. He counts 87 years. The latest is a fish pole which doubles up like a prayer book and has a hollow gold clasp to hold bait. It is much used by Presbyterians at Newburg. Capt. Howgate's expedition is announced to sail from New-London, Conn, on the 20th inst. in the steamer Folence, commanded by Capt. Tyson, late of the Polaris. n The Merchants' Loan and Trust Company of Paterson, N. J., has suspended. The liabilities to depositors amount to $45,000, and are secured. The stockholders will lose fifty per cent. Oakley S. Barker, grand-son of Commodore Vanderbilt. was indicted in New York yesterday for stealing jewelry from a young woman. He was arraigned, pleaded not guilty and was remanded. g It is said that Jefferson Davis, in his forthcoming book, will assail Gen. Joe Johnston with severity, and hold him responsible for the failure of the confederates to seize Washington after the victory at Bull Run. The Parliament of Norway refuses an appropriation to sustain its nuetrality in the pending Eastern war on the ground that it is unnecessary. Sweden had already voted two million crowns for that purpose. Though both countries are under one government, they have, like Austria and Hungary, separate budgets.

6. August 9, 1877 New-York Tribune New York, NY

Article from New-York Tribune, August 9, 1877

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DRAWING FROM A FAILING COMPANY. The cash account of the Merchants' Loan and Trust Company of Paterson, N. J., is short about $26,000. This institution collapsed on July 9. The next morning the teller of the bank made out a paper showing the amount on deposit to be $71,000. The Treasurer, J. F. Preston, made a statement showing it to be $45,000. This difference in the two statements could not be accounted for by the Receiver of the corporation. J. C. Todd. It has now come to light that a day or two before the suspension of the company some of the depositors were allowed to draw out various sums of mone y, which aggregated $26,000. It is claimed that they turned over to the bank stock of the Paterson Fire Insurance Company. which has since gone into the hands of a Receiver, claiming that the bank had agreed to purchase 80 much of the insurance company's stock, which they held in place of their share of the assets of the banking institution. It is not yet known who the perbe sons directly concerned are. but an investigation will made at once. It Is reported that some of the directors of the bank were engaged in this transaction. The Treasurer, Mr. Preston, claims that he did not know that it was an illegal proceeding to allow the money to be withdrawn in this way.

7. October 4, 1877 The Cheyenne Daily Leader Cheyenne, WY

Article from The Cheyenne Daily Leader, October 4, 1877

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TELEGRAPHIC ICKS. A fire in Joplin, Mo., on Tuesday, destroyed a block of business houses. Large numbers of refugees are dying daily from typhus fever around Tirnova. The California rifle team arrived at Frisco last night, and were received by the city military companies and an enthusiastic crowd of citizens. A strong detachment of Bashi Bazouks who attempted to enter Montenegro near Sutsrian, were repulsed, on Monday, after several hours sanguinary fighting. By the collision near Clyde, N. Y., of two freight trains, John Kenny, engineer, of Rochester, was killed and James Bennett seriously injured. One train is total wreck. Misplaced switch. The grand jury at Patterson, N. J., has indicted J. F. Priston, cashier of the suspended Merchants' Loan & Trust company, for illegally disposing of the assets of the company after it closed.

8. October 4, 1877 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, October 4, 1877

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A Bank Cashier Indicted. PATTERSON, N.J., October 3.-It is understood that the grand jury has indicted J. F. Preston, Cashier of the suspended Mercbants' Loan & Trust Co., for illegally disposing of the assets of the company after it closed. Preston claims that his motives were to protect the best friends of the institution.

9. October 4, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, October 4, 1877

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INDICTED. PATERSON, N. J., Oct. 3.-It is understood the Grand Jury has indicted James F. Preston, Cashier of the suspended Merchants' Loan and Trust Company, for Ulegally disposing of the assets of the Company after It closed. Preston claims his motives were to protect the best friends of the Institution.

10. October 13, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, October 13, 1877

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LOVE AND LUCRE. Dispatch to St. Louis Globe-Dmoerat. New YORK, Oct. 0.-There was n curious bit of romance indirectly connected with the failure of the Merchants' Loan & Trust Company, of Paterson, N. J., which has just come to light. It seems that last winter on olderly widow of this city, a Mrs. Woodruff, living in East Fortyfirst street. applied to Mr. Preston, as Treasurer of the Company, for a loan on certain Paterson real estate. She was refused, but she came again and again, accompanied by her danghter and Mr. II. B. Fenton. Their story was this: Mrs. Woodruff had been left with very handsome property, $70,000 or $50,000, and upon the marriage of her daughter $50,000 or $60,000 more would .come into their possession. In anticipation of this they had lived beyond their Income and were short " of ready moner. The daughter was to be married on Feb. 21. and money was needed to complete. the preparations; $3,000. would be sufficient, and then the newly-acquired property would be placed in the custody of the Merchants' Loan & Trust Company, 38 trust fund, to remain 80 Indefinitely, to the grent advantage of this Institution. In consideration of all these Inducements. and upon the assurance of several New York brokers that the representations of the Woodruffs were correct, Mr. Preston last January Ient Mrs. Woodruff $3,000. without other security than her note, Indorsed by Mr. Fenton. On Feb. 22 the daughter was ill, and the marriage had to be postpoued, inaking neeessary another loan of $1,000 to the ladies 60 rich and vet so poor. Again the day was act, but this time, oddly enough, the bridegroom was unable to be presert. In short, the wedding has not taken place yet. and the Merchants' Loan & Trust Company hold $11.000 of Mrs. Woodruff's unsecured paper, and that Indy's failure to meet her obligations was largely the cause, Mr. Preston avers, of the Company's untimely collapse. Enemies of Mr. Preston have intlmated that this loan was not altogether square on his part; that he profited by It to the detriment of the bank, but the evidence on which these insinuations are based has not yet come to light. James Frederick Preston, the Treasurer, and one of the Directors of the late bank, gave a bond to the Receiver to-day to indemnity the stockholders and depositors for any money that may have been lost to them through his alleged inismanagement. Mr. WIIIfam Howard, of Brooklyn, Mr. Preston's brother-in-lnw, was the bondsman. Mr. Proston has probably saved himself by this from n formal Indictment by the Grand Jury, which is now in session. It Is understood that the Grand Jury had agreed to Indict him, but had not presented the Indictment to the Court, and It Is likely that they will now take no further action till Mr. Preston's transactions have been reviewed by the Chancellor of the State.

11. October 15, 1877 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, October 15, 1877

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News of the Day. Advices from El Paso show a most serious and threatening state of affairs. The entire lower portion of El Paso county is in possession of the mob, and the Americans throughout the county have abandoned their homes and fled to El Paso for safety. Judge Howard, who killed Louis Cardis at El Paso on the 10th instant, succeeded in making his escape to Mesilla, where he still remains. Cardis is said to have been the leader of a mob, who are the more desperate and threatening in consequence of his death. The Sheriff of El Paso is also at Mesilla, but refuses to return with Howard, as the latter would be killed immediately by the mob, while the Sheriff himself will be killed if he dares to return without Howard. Lieutenant Payne, who is in charge of the detachment of troops, says a large force will be required to suppress the mob. A large number of outlaws are encamped near the county seat. They declare they will fight the troops if the latter attempt to make any arrests. Judge Blaker is en route from St. Davis with troops to restore order. Apparently a fatal mistake was committed by the parly in pursuit of the train robbers that plundered the express car on the Union Pacific Railroad. A young man named Joel Collins was encountered by them, and he, resisting cap ture, was killed. His father is now investigating the case. He asserts that his son had sold a large lot of cattle in the Black Hills and was paid in gold nearly $20,000, and that he could not have been at the Big Springs robbery. He resisted capture because he supposed he had fallen in with robbers. His father is a respectable citizen of Dallas, Texas, and the son was the owner of considerable property at San An. tonio. James F. Preston, Treasurer, and Edmund K. Rose, director of the suspended Merchants' Loan and Trust Company, of Patterson, N. J., were arraigned Saturday on an indictment for conspiracy to embezzle and for embezzling $20,000 assets of the company, which were distributed among the directors and some depositors, to the exclusion of others. Rose was arrainged on a separate indictment for substantially the same offence. Preston is to be tried first on a separate indictment found on Thurs day. Near Waterville, Me., Saturday afternoon a number of workmen employed by Edwin Noyes to move a line of fence separating his land from that of Nathaniel Gilman, were fired upon by the latter, who had posted bimself behind with a rifle and shot gun. Three of them, John Flood, Wm. MoNally and Daniel Butler, were wounded. Gilman was arrested, and is the same person who shot his own brother on Broadway, New York, last winter. A murder occurred in a street car in New York Saturday night. A gentleman who was standing on the platform of a Sixth avenue car, which was just turning into Varick street from Canal, was insulted by a rough and reproved him, whereupon the fellow drew a knife and stabbed the gentleman three times in the abdomen. The wounded man died instantly, and his assailant was arrested. The New York Tribune announces the discovery of a bold and extensive lottery swindling scheme, and that tickets to a very large amount have already been sold in the large cities, including Baltimore. Judge A. O. Lochraue, of Georgia, has arrived in New York for the prosecution of the swindlers. The lottery is intended to be for the benefit of the Masonic Home of Atlanta. The business portion of Jainesville, New York, was burned yesterday by an incendiary fire. Among the buildings destroyed were three hotels, Episcopal Church, postoffice, town hall, six stores and fifteen dwellings. J. M. Binkley, Assistant Attorney General of the United States under President Johnson, has disappeared mysteriously. His mental condition for several days past has excited some apprehension.

12. October 19, 1877 Perrysburg Journal Perrysburg, OH

Article from Perrysburg Journal, October 19, 1877

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THE EAST. The remains of the late Archbishop Bayley were buried at Emmettsburg, Md., on the 9th. The steamship England was seized at New York on the 9th by Collector Arthur on the charge of being connected with silk-smuggling frauds. The Susquehanna Coal Company's men at Nanticoke, Pa., resume work at 10 per cent. advance. Ex-Gov. Hendricks arrived at New York from Europe on the 9th. The Philadelphia Permanent Exhibition Company is insolvent and has appointed a committee to treat with its creditors, who are said to be willing to accept 50 per cent. Tweed's statement submitted to Atty.Gen. Fairchild a short time ago is made public. It contains the name of twenty-one Senators paid for votes or silence. An Oil City dispatch of the 10th says a 2,000-barrel well has been struck in the Bullion district. The Baltimore & Ohio Railroad Company has declared a 3 per cent. dividend on the main stemstock, This, with the former dividend of 5 per cent., makes 8 per cent. for the year 1877. The remains of Gen. Custer were interred at West Point on the 10th with military hon ors. The Federal Bank, of Allegheny City, Pa., suspended payment on the 10th. The suspension appears to be due to the fact that depositors wanted their money. The Lehigh Valley miners refuse to resnine work at less than 10 per cent. advance. The President, Secretary McCrary and Atty-Gen. Devens visited the fair at Frederick, Md., on the 11th, and met with a hearty reception, The Treasurer and Directors of the Merchants' Loan and Trust Company, of Paterson, N.J., have been indicted for conspiracy for removing the assets of the company after failure. A counterfeit fifty-dollar bill on the Central National Bank, of New York, has appeared. Tweed denies the substance of his statetrecently submitted to the Attorney-General in which he named many members of the Senate whom he had bought. The rates on West-bound freight from New York have been advanced 33 1/6 per cent. The Lehigh Valley Railroad Company's miners refuse to resume work without an increase of wages. Ex-Treasurer Parker, of South Carolina, was arrested in Jersey City on the 12th on a requisition from Gov. Hampton, charging him with plundering the State. Parker says he will turn State's evidence. The Boston Base-Bail Club won the champ ionship.

13. October 31, 1877 New-York Tribune New York, NY

Article from New-York Tribune, October 31, 1877

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A NEW RECEIVER FOR THE MERCHANTS' LOAN. Chancellor Runyon, of New-Jersey, has appointed E. Theodore Bell, a well known resident of Paterson, receiver of the Merchants' Loan and Trust Company, to fill the vacancy caused by the removal of J. C. Todd. Mr. Bell has accepted the position, and will give bonds in $75,000.

14. November 16, 1877 The New York Herald New York, NY

Article from The New York Herald, November 16, 1877

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SAVING A CHARTER. A number of prominent citizens are trying to prevent the Japse ot the charter of the Merchants' Loan and Trust Company, of Paterson. which confers some valuable franchises that cannot be obtained under the new State banking law. Over $40,000 of deposits are represented in the signers to the documents to relinquish their claims against the bank for this purpose. It is intended to remove the receiver and put the assets 1410 trustees' hands. The charter will expire so-any,

15. November 16, 1877 New-York Tribune New York, NY

Article from New-York Tribune, November 16, 1877

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the Supervisors, to take his seat in the board. A vote of thanks was extended to Colonel Ward for his services in the board. In the Flatbush Insane Asylum there are now 734 Inmates ; ID the Almshouse, 974 in the Hospital, 302 in the Hospital for Incurables, 323. The number in the Almshouse is unprecedented. A man named O'Keefe was arrested yesterday on a suspicion that he had abducted the boy Arthur Leaman but as the persons who had seen the charged. boy kidnapped failed to identify O'Keefe, he was disLectures will be delivered before the Long Island Historical Society, this Winter, by President Chadbourn, of Williams College, James T. Fields, Professor C. A. Young, of Princeton College, and William Allen Butler. The following clerks were discharged yesterday from their positions in his office, by Registrar of Arrears Scott: M. Fingleton, William H. Powell, Moseph B. Irwin, Alfred J. Herman, and James Fowler, brother of ex-Commissioner Fowler. Thomas Cobb, the Republican candidate for Supervisor in the Twenty-first Ward, will contest theelec. tion of Mr. Anderson. Mr. Cobb has requested the election canvassers to declare the vote in one district illegal, because other persons than canvassers had assisted in counting the votes, JERSEY CITY. Freeholder John McLaughlin, indicted for conspiracy to defraud the county, yesterday pleaded not guilty, and was put under $1,000 bail. The workmen at the Lafayette Steel Works, have contributed $145 for the widow of William nch, the man killed there recently, The Board of Education has received the medal and diploma awarded by the Centennial Exposition for the best exhibition of school work at the Exposition. The only other school in New-Jersey that received a sibilar medal, was the Trenton Normal School. NEWARK. At the meeting of the Board of Trade on Wednesday evening, a resolution was adopted protesting against the repeal of the Resumption Act, and it was directed that a copy of the resolution be sent to the m ember of Congress from this district. John Grogan, of Astor-st. and Avenue C, went into McLaughlan's saloon, at Halsey-st. and Maiden-lane, on Wednesday night, and called for a glass of beer. Taking a package of Paris green from his pocket, he poured it into the beer, and drank the liquor. He was removed to Police Headquarters, but it is thought that he will die. Public notice is given that an application will be made to the Legislature for the passage of an act to'authorize the appointment of a Police and Fire Commissioner for all cities in the State with a population of 105,000 inbabitants. This would would apply only to Newark, and the object is to place those departments of the city government under Democratic control. NEW-JERSEY. PATERSON.-James Jackson, receiver of the Paterson Fire Insurance Company, will file his report of claims against the company in the Chancellor's office, on December 10. The claims against the Merchants' Loan and Trust Company must be presented on or before February 12, 1878. BOONTON.-Joshua S. Salmon, the defeated Democratic candidate for the Assembly in this district, proposes to contest the seat of Mr. Cooper, claiming that the scattering votes, not counted by the canvassers, would elect him. Cooper's official majority is seven. TRENTON.-The Bartiett defalcation will probably exceed $20,000, 80 that the city will be unable to pay its quota of tax to Mercer County, The Board of Freeholders Wednesday made a peremptory demand for the money The Trenton Colonization Society, composed of practical workingmen, propose leaving for Texas on November 20. STATEN ISLAND. STAPLETON.-The National Board of Fire Underwriters of this city has offered a reward of $500 for the detection and punishment of the person who set fire to the three-story brick dwelling recently burned at Richmond and Stone-sts., Stapleton.

16. January 24, 1878 The New York Herald New York, NY

Article from The New York Herald, January 24, 1878

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MERCHANTS' LOAN AND TRUST. The case of the Merchants' Loan and Trust Company was called at Paterson yesterday, when Mr. Woodruff, counsel for the State, arose and stated that Mr. Todd, late receiver, was absent from the city, and asked for a postponement, which, alter a lengthy discussion, was granted by the Court until Wednesday next.

17. February 7, 1878 The Sun New York, NY

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THE INDICTED BANK OFFICERS. Close of the Case of the Prosecution-Mr. Parker for the Defence. The trial of James F. Preston and E. K. Rose, ex-Treasurer andex-Director.respectively. of the defunet Merchants' Loan and Trust Company of Paterson. on an indictment forconspirney to defraud the bank. was continued in Paterson yesterday. The witnesses were J. A. Lewis, bookkeeping expert: William Ryle, the first President of the bank: Mr. E. T. Bell, the second receiver: and Robert McCulloch. All except the last were devoted to technical testimony as to the condition of the books and accounts. Mr. McCulloch testified that he did not make the original complaint before the Grand Jury, neither did he make any proposition to go to another part of the country and keep out of the way during the investigation, as reported. The prosecution was then closed. Mr. Cortlandt Parker. for the defence. then asked the Court to direct the jury to render a verdiet of Requittal, on the following grounds: The indictment was for a conspiracy to defraud the bank. It was generally supposed that the assets of a bank could legitimately be used to pay the bank's debts. The assets were taken by Preston to pav such debts. Granting that Preston made preferences, it was not illegal or fraudulent. There is no law in the State of New Jersey that prohibits a man. before going into insolvency, from paying any particular claims. If it is legal for a bank to pay all its debts from its assets. it is legal to pay part of such debts. It is not charged in the indietment that the defendants defrauded the depositors. but the bank. This was not proven by anything that had come out in the evidence. While Mr. Parker was speaking the court was adjourned for the day.

18. February 18, 1878 New-York Tribune New York, NY

Article from New-York Tribune, February 18, 1878

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THE RECEIVER'S REPORT OF ITS CONDITION-SYMPATHY WITH DIRECTOR ROSE. Receiver Bell, of the Merchants' Loan and Trust Company of Paterson, has completed his supplementary report to Chancellor Ranyon. In the list of assets real estate is valued at $13,000, of which $8,000 is considered good ; $27,531 34 of the bills receivable 13 estimated as good and $34,714 67 as doubtful the cash items amount to $1,593 22, considered of doubtful value. The overdrafts amount to $5,484 89, $1,444 92 being estimated as doubtful. The entire assets are $94. 577 93, of which amount $41,121 : 24 is considered good. The liabilities-$156,527 72-include deposits, $43,138 07 capital stock, $100,000; deposit 111 the Sav10188 Department, 9,987 The deficiency is $61, 949 79. Mr. Bell accounts for the deficiency as follows Upon real estate, $47,088 04: sundry items, profit and loss account, $8,588 87; upon furniture, $2,975 75 unpaid bills and taxes. $3,402 13. Mr. Bell will make his report to-day. Deposits to the amount of $51,996 45 have been al owed by the receiver; not proven. $870 80; proven and disallowed, $4,266. Twelve other claims proven and allowed amount to $382 41. Receiver Belt expects to pay a dividend within the next thirty days. The bank building was sold a few days ago to Robert McCullough. one of the directors, for 38,000, the purchaser assuming a mortgage for $12,000. held by the Mutual Life Insurance Company of this city. Much sympathy is expressed by th people of Paterson for Messrs. Rose and Preston, who were convicted of conspiracy to defraud the bank. The punishment 18 imprisonment at hard labor not exceeding two years, or a line not exceeding $500, or both. The friends of Rose have prepared a petition to be presented to Judge Dixon, asking that a fine only be imposed. the petitioners expressing the belief that Mr. Rose did not intentionally commit that crime, though legally and justly the crime might be inferred from the evidence. The copies of the petition are being numerously signed. Mr. Rose has been a prominent member of the Congregational Church at Paterson. It he is only fined, the necessary sum to effect his release will be raised by bis friends.

19. April 24, 1878 The New York Herald New York, NY

Article from The New York Herald, April 24, 1878

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TREASURER PRESTON'S CASE. To THE EDITOR OF THE HERALD:Your brief editorial in this morning's issue on "Justice Across the River" contains in its small space much that 18 unjust to Treasurer Preston and painful to bis friends, who know the truth. I trust you will not be unwilling to correct any wrong you may have done through lack of correct information. James F. Preston, late Treasurer of the Merchants' Loan and Trust Company, at Paterson, N. J., 18 in State Prison, not because be stole the funds of the bank; not because he "da faulted;" not because he enriched himself or his triends-lor he and his family are actually without a dollar, and bis friends are poorer than they were; not because he was a "perjurer" or swore falsely to statements to entrap the unwary; but because New Jersey justice has run mad. None of the above crimes were tried or proven against him. He was tried and a jury found him guilty of "embezzlement" This act is not necessarily dishonest, though 11 does mean unlawful. And this 18 his crime-"he unlawfully appropriated the lunds of the bank"-not to his OWD or his friends' use, but to uses which were not protitable to the bank, hence a loss. To him the directors left large discretion. He was allowed to discount and loaned the money 01 the bank otherwise than such as were passed upon by the board of directors: When be did well they praised him; when he had a succession of losses some of them damned him. The Public Prosecutor sard to him Sunday, "Preston, morally you have done no wrong. The "wrong" charged some $12,000, was made up by his friends and paid to the receiver, who can now pay depositors in full. Receiver Beil told the wr.ter "the Court had said that = restitution of the amount charged in the indictment was made the Court would be satisfied." The Hon. Courtlands Parker did not misunderstand the same assertion at a private interview with the "Court" And yet a happy home has been robbed of an honest busband and father, and to-day he Is to prison unitorm because he proved an unsuccessful manager 01 a Goancial IDstitution in times like these! Boiled down, this is all there Is of 11. FRANCIS W. HOLBROOK, APRIL 22, 1878. 92 Church street, New York,

20. May 21, 1878 The New York Herald New York, NY

Article from The New York Herald, May 21, 1878

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# THE DEFUNCT TRUST COMPANY. In the Court of Oyer and Terminer, in Paterson, yesterday, another trial originating from the failure of the Merchants' Loan and Trust Company was given a brief existence. It was the case of the State vs. David Henry, who gave to the bank officials after its closing a four hundred-dollar check drawn by Mr. Wilson, for which he afterward received a note for the amount. The counsel for the defence contended that the Court ought to order a verdict of acquittal; that it was a legitimate transaction, as the defendant having deposited the checks after the application had been made for a receiver he was a preferred creditor. Prosecutor Woodruff opposed the argument of the defendant's counsel, asking the Court to instruct the jury to acquit. The jury, on recommendation of Judge Dixon, returned a verdict of acquittal.

21. May 22, 1878 The Sun New York, NY

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JUDGE DAGGERS'S TRIAL. The Last of the Paterson Merchants' Loan and Trust Company Cases. The unusual spectacle of a Judge stepping down from the bench to be tried on a criminal indietment was witnessed in Paterson yesterday. The indictment against Associate Judge J. R. Daggers is the last one of the Merchants' Loan and Trust Company cases, The indictment accuses Judge Daggers of conspiring to obtain from the bank some of its securities after it had failed. Ex-Treasurer Preston, now in the State prison. gave him and others some of the securities of the bank. to save them from loss in their deposit balances. After the appointment of a receiver. Judge Daggers delivered the securities to the receiver again. The accepting of the securities was fully proved by the State yesterday, and Judge Daggers went on the witness stand in his own behalf. He said that he accepted the securities because he was told by the officers of the bank that Judge John Hopper. the counsel for the bank. had given his opinion that the officers of the bank had a right to prefer creditors in this way. The Judge accounted for having given his check at 8 clock on Monday morning for $1,185. dated on the Saturday previous, on the ground that he was informed that business of a bank on any day extended until 10 o'clock on the next business day, the accounts of the day previous being kept open until that time. The case was partly summed up yesterday. Judge Nixon refused to instruct the jury to acquit the defendant.