14678. Albany City National Bank (Albany, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
1291
Charter Number
1291
Start Date
May 11, 1890
Location
Albany, New York (42.653, -73.756)

Metadata

Model
gpt-5-mini
Short Digest
7c1bc5e8

Response Measures

None

Description

Articles report discovery of large embezzlement by the bookkeeper and that the State Bank Examiner (Groesbeck) will take possession and begin an investigation (government action). Directors expect a run but only preparatory rescue support is reported (other banks and the Albany City savings Institution offering funds). No explicit run or permanent closure is reported; the bank appears to be placed under examiner control with efforts to support and reopen.

Events (3)

1. June 16, 1865 Chartered
Source
historical_nic
2. May 11, 1890 Suspension
Cause
Government Action
Cause Details
State Bank Examiner to take possession and investigate large embezzlement by the bank's bookkeeper (Whitney).
Newspaper Excerpt
The State Bank Examiner, Mr. Groesbeck, was in consultation here this afternoon with the officers of the Albany City National Bank... Mr. Groesbeck will take possession of the bank to morrow. it is understood, and will begin an investigation
Source
newspapers
3. February 5, 1902 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (2)

Article from The Portland Daily Press, May 12, 1890

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Article Text

He Lived High. ALBANY, N. Y., May 10.-The profoundest sensation was caused in business and social circles today by the announcement that George P. Whitney, individual bookkeeper of the Albany City National Bank, was an en bezzler of the bank's funds to the amount of nearly $80,000. The defalcations have been going on at least two and a half years. Whitney was accused of the crime, and made a confession which may result in implicating a prominent business firm here. Bank officials are reticent. but it is generally understood the defalcation is the result of a conspiracy between Whitney and the firm referred to. For the past two days he has been engaged in assisting experts in unravelling his accounts, and showed no disposition to evade the law. If the defalcation reaches $80,000 the capital of the bank is impaired, as by the last re. port the surplus and individual profits amount to only $50,000. Whitney was arrested late this afternoon at the instigation of his bondsmen and arraigned before United States Commissioner King. Much sympathy is expressed for Whitney, who was evidently instigated to the crime by the demands of the parties whic derived benefit from the theft. Though he has been employed by the bank 24 years his salary until recently has only been $1500 per year. It is thought he has been living beyond his means, and speculation is assigned as one of the causes. ALBANY, N. Y., May 11.-The whole clerical force of the Albany City Bank, from which Bookkeeper Whitney embezzled, has been at work on the books. It is stated the sum will be $100,000 or over. The bank is perfectly solvent, and is prepared for a run in the morning. William Gould, of the firm said to have been in collusion with Whitney, said tonight that the statement was false, and asserted individual members of the firm had been culprits. Several other firms are mentioned as having crooked transactions. One of the directors of the bank, Amsdell, the head of a large brewing firm, paid in $10,000 last night to cover worthless paper his son made in collusion with Whltney. Burglars in Canton. CANTON, May 10.--Burglars raided several places in town Friday night. Tools were taken from a blacksmith shop with which the front doors of Houghton's hardware store were pried open. His safe was cracked but encountering a steel chest which contained all the money, nothing was secured here. The station office of the Rumford Falls & Buckfield railroad was entered, the safe cracked and the money drawer carried off with about $6. Coburn's grain store was entered and a bag of oats taken. Entrance was attempted at Taylor & Griffith's store, but the burglars were unsuccessful. Fresh wagon tracks after the rain showed the manner and direction of the approach and departure of the burglars. Two men seen on the street at a late hour are supposed to have been the thieves.


Article from New-York Tribune, May 12, 1890

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Article Text

HELPING THE CRIPPLED ALBANY BANK. Albany, May 11 (Special).-The State Bank Exam. iner. Mr. Groesbeck, was in consultation here this afternoon with the officers of the Albany City National Bank, whose individual bookkeeper is a tofaulter to a large sum. Mr. Groesbeck will take possession of the bank to morrow. it is understood, and will begin an investigation to cover a year back. which will include the three large losses this bank has suffered. There have been meetings of directors of several banks to day, and it was the sense of all that each had better prepare for any emergency. They believe that the confidence of the people is shaken. and there is no telling what turn affairs will take. They also prof fered aid in sams ranging from $30,000 to #200,000 to the unfortunate bank. The Albany City savings Institution, which occupies the same building with the crippled bank, has placed at the disposal of the discount bank a quarter of a million of dollars, which, A it thinks, will be sufficient to meet all demands. run is expected by the directors of the discount bank. but they assert that they are prepared for it, and that they are able to meet all obligations.