14760. First National Bank (Auburn, NY)

View Charter #231 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
231
Charter Number
231
Start Date
January 23, 1888
Location
Auburn, New York (42.932, -76.566)

Metadata

Model
gpt-5-mini
Short Digest
2629d5ff

Response Measures

None

Receivership Details

Depositor recovery rate
56.8%
Date receivership started
1888-02-20
Date receivership terminated
1897-07-06
OCC cause of failure
Fraud
Share of assets assessed as good
28.6%
Share of assets assessed as doubtful
17.1%
Share of assets assessed as worthless
54.3%

Description

Articles report the First National Bank of Auburn closed/suspended Jan 23, 1888 after the cashier (Charles O'Brien) and bookkeeper absconded and alleged defalcation/mismanagement. No contemporaneous article describes a depositor run; a receiver was appointed Feb 21, 1888, indicating permanent closure/receivership. OCR issues corrected: 'casher' -> cashier; dates taken from article datelines and publication metadata.

Events (4)
1. February 4, 1864 Chartered
Source
historical_nic
2. January 23, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed discovery (or concealment) of mismanagement/defalcation; Cashier Charles O'Brien and Bookkeeper Elmer E. Morse fled (absconded), false statements made to the examiner; heavy overdrafts and lending on insufficient collateral reported.
Newspaper Excerpt
Pending an examination of the affairs of the bank and in the absence of the cashier, this bank will be closed until further notice.
Source
newspapers
3. February 20, 1888 Receivership
Source
historical_nic
4. February 21, 1888 Receivership
Newspaper Excerpt
RECEIVER APPOINTED.-The Controller of the Currency to-day appointed S. Edwin Day as receiver for the First National Bank of Auburn, N. Y.
Source
newspapers

Newspaper Articles (14)
1. January 23, 1888 Evening Star Washington, DC
Article from Evening Star, January 23, 1888

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Article Text

THE Richmond and Dolphin sailed on Saturday from New York on their winter cruises. ARMY ORDERS.-Leave of absence for four months, to take effect February 10, granted First Lieut. Theo. Mosler, 22d infantry. Thirty colored recruits assigned to the 10th cavalry. A board of officers, to consist of Capt. Frank C. Grugan, 2d artillery; First Lieut. Marion P. Maus, 1st infantry. and Second Lieut, Frank Greene,Signal Corps, ordered to meet in this city February 1, for the purpose of examining into the details of construction of the various hellographs now in use, and determining the composition of an instrument best suited to the requirments of the service. THE WORK OF MOVING the Quartermaster General's Offices from the present quarters, corner of 15th street and Pennsylvania avenue, to the new War Department building was commenced this morning. STOREKEEPERS AND GAUGERS.-The Secretary of the Treasury to-day appointed the following storekeepers and gaugers: Wm. W. Curtis, Waldron, Ind.; Lee Chambers, Louisville, Ky., and John S. Fisher, Tryon City, N. C. A NATIONAL BANK CLOSES ITS DOORS.-The Controller of the Currency was to-day informed that the First National Bank of Auburn, N. Y., closed its doors this morning. The reason is stated to be the defalcation of Cashier Charles O'Brien, who has absconded and is now supposed to be in Canada. Bank Examiner Getman has taken charge of the bank as an insolvent institution The amount of the defalcation is not stated. THE OMAHA left Yokahama Saturday for Panama, where she will receive her relief crew. She is expected to arrive there some time in March. THE PRESENT COLD WEATHER is not considered at the Signal Office in the line or a "cold wave," and there has been no flag raised in consequence. The temperature will gradually go up, and there will be pleasant weather. Snow is expected in quantities at any moment. MR. W. W. CORCORAN is in about the same condition or health as he has been for some months. Histhroat troubles him and it is with difficulty that he expectorates. The physician told him last week that he was well and that he could walk around the house, but he has not yet done so. SENTENCES COMMUTED.-The President commuted the sentences of three criminals to-day. Benj. Browder and Saml. McCullen, western district of Tennessee, convicted July 13, 1887, of passing counterfeit money and sentenced to two years' imprisonment and $100 fine and costs, each had their sentences commuted to one year imprisonment each. In the case of John Morton, Kentucky, sentenced March 15, 1884, to -ix years' imprisonment for making and uttering counterfeit money, the President says: "Upon the statement made or this convict's health his sentence is commuted to four years actual imprisonment, with no reduction for good behavior." John sprague, Indiana, sentenced May 27, 1884, to eight years' imprisonment for forgery, has his sentence commuted to four years. THE INTERSTATE COMMERCE COMMISSION to-day gave a hearing in the cases of John W. S. Brady, of J. Parkhurst & Co., Baltimore, Md., and John H. Nicolai, also of Baltimore, who charge the Pennsylvania Railroad Co. with exacting excessive freight rates on crude petroleum between the Washington, Pa., oil region and Baltimore. PUNISHING TARDY CLERKS.-Commissioner of Pensions Black has directed that hereafter the clerks of the Pension Bureau will be required to work on Saturdays until 4 o'clock, instead of 3 o'clock, as has been the practice during Gen. Black's administration. The reason given by Gen. Black for the withdrawal of this privilege IS the continued tardiness of the clerks in reaching the office in the morning. PERSONAL-Mr. Warren Switzler, of Omaha, son of Col. Switzler,chief of the Bureau of statistics, is in the city on a visit to his father.-S. Newman, of Fargo, Dak., J. L. Fulton, of Chicago, E. T. Howard, of St. Louis, and Geo. J. Chambers, of New York, are at the Ebbitt. Representative Gaines, of Virginia, is at the Metropolitan. Franklin W. Hopkins, of New Jersey, is at the Arno. H. W. Anderson, of New York, and Geo. Caffee, of Paris, are at the St. James J. K. Emmett, Alfred Wolf and Wm. Graves of New York, Melville E. Stone of the Chicago News, and Chas. H. Toll of Denver, Col., are at the Arlington. J. J. Storrow of Boston, Legh R. Page of Richmond, and A. S. Long of Lynchburg, Va., are at Welcker's.-Schuyler Merritt of Stamford, Conn., J. F. Dillon, wm. D. Shipman and E. M. Townsend of New York, L. M. Sargent and Chas. H. Dalton of Boston are at Wormley's Chas. Dickens, wife and daughter of London, E. G. Miller of New York, Chas. J. Swift of San Francisco, B. H. Davis of Ei Paso, Denham Thompson or Sawanzey, N. H., and J. A. Maher of Chicago, are at Willard's. S. T. Brooks of San Francisco, A. De Bellefroid, Belgian consul at Chicago, and A. F. Mason of Boston, are at the Riggs. Col. Wm. L. Brown of the New York News, is at Chamberlin's.

2. January 23, 1888 Evening Star Washington, DC
Article from Evening Star, January 23, 1888

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Article Text

Telegrams to The Star. DRISCOLL MEETS HIS FATE. A New York Desperado Hanged To-day AN AUBURN BANK SUSPENDS. Attempted Assassination of Louise Michel. AN AUBURN BANK CLOSED. False Statements Made to the Examiner-Cashier and Bookkeeper Missing. AUBURN, N. Y., Jan. 23.-The doors of the First National Bank of Auburn were closed this morning and following notice was posted: "Pending an examination of the affairs of the bank and in the absence of the casher, this bank will be closed until further notice. Demands payable here will be recelved here." Bank Examiner Clark arrived here Friday, and it is said his visit precipitated matters. He is now in charge of the books, but absolutely nothing authentic concerning them is known to outsiders. It is not believed that any defalcation has taken place, but that the whole trouble is due to mismanagement in lending runds on insufficient collateral and allowing customers to make large overdrafts. A false statement was made to the bank examiner to conceal the true state of affairs, and Cashier Chas. O'Brien and Bookkeeper Elmer E. Morse have fied the city, presumably taking a train west on Saturday afternoon. Considerable excitement prevails. It is not believed depositors will suffer loss, but some of the smaller business concerns, finding their source of supplies cut off, may be forced to the wall. The annual statement of the bank, published December 15, 1887, shows: Capital stock paid in. $150,000; undivided profits, $42,378; deposits subject to checks, $248,270; demand certificates of deposits, $356,045; loans and discounts are given at $644,078, and overdrafts are represented being only $2,812.

3. January 24, 1888 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, January 24, 1888

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Article Text

BANK SUSPENSION. The First National Bank of Auburn, N. Y., Closes Its Doors. AUBURN, N. Y., Jan 23.-The doors of the First National Bank of Auburn were closed this morning and the following notice posted: "Pending an examination of the affairs of the bank and in the absence of the cashier this bank will be closed until further notice. Demands payable here will be received here." Bank Examiner Clark arrived here Friday, and it is supposed his visit precipitated matters. He is now in charge of the books, but absolutely nothing authentic concerning them is known to outsiders. It is not believed any defalcation has taken place, but that the whole trouble is due to mismanagement in lending funds on insufficient collateral and allowing customers to make large overdrafts. A false statement was made to the bank examiner to conceal the true state of affairs, and Cashier Charles O'Brien and Bookkeeper Elmer E. Morse have fled the city, presumably taking a train west Saturday afternoon. Considerable excitement prevails upon the street, and the air is thick with rumors. It is not believed depositors will suffer any loss, but some of the smaller business concerns, finding their source of supplies cut off, may be forced to the wall. The annual statement of the bank published Dec. 15, 1887, shows a paid up capital of $150,000, and undivided profits of $42,378. The deposits, subject to check, amounted to $248,270. and demand certificates amounted to $356,045. The loans and discounts were placed at $644,000. The examination of the books is progressing. The doors are closed, nobody is admitted and no figures are given for publication. It will take several days to straighten out the books and verify the entries. A director is reported as saying that the deficiency will amount to $200,000. This bank was the depository of the city treasurer, board of education, state prison and asylum, aggregating $250,000, but these are secured by bond. The directors claim that the doors are closed temporarily merely as a matter of prodence until the books can be overhauled. The excitement is subsiding, and no further trouble is apprehended. WASHINGTON, Jan. 3.-The comptroller of the currency was to-day informed by telegraph that the First National bank of Auburn, N. Y.. closed its doors this morning by reason of a heavy defalcation on the part of its cashier, Charles O'Brien. who has abseconded, and is now supposed to be in Canada. The amount of the defalcation is not stated.

4. January 25, 1888 New-York Tribune New York, NY
Article from New-York Tribune, January 25, 1888

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Article Text

DEPOSITORS BECOMING NERVOUS. A SUSPICION TH T STOCKHOLDERS OF THE AUBURN BANK ARE SEEKING TO AVOID RESPONSIBILITY. AUBURN, Jan. 24.-The affairs of the First National Bank are in so chaotic a state that no information can be given until the examiner finishes his investigation. Nothing has been learned as to the whereabouts of Cashier O'Brien and Bookkeeper Morse, but It is a fair assumption that they are across the border in Canada. The Board of Education held a special meeting this morning to devise ways and means for raising money to meet current expenses until the $52,000 tied up in the closed bank could be made available. It was decided to petition the Legislature for permission to make a loan. Depositors are growing nervous over the outcome of the trouble. Some of them offer to assign their claims for 75 cents on the dollar. There Is a growing suspicion that some of the stockholders have transferred their holdings to trustworthy friends to avoid liability. This suspicion in itself causes much uneasiness. The true state of affairs will not be known, however, until a receiver is appointed and the day of settlement arrives.

5. January 25, 1888 The Asheville Citizen Asheville, NC
Article from The Asheville Citizen, January 25, 1888

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NEWS ITEMS. John H. Currey has been appointed post master of Knoxville, Tenn. Violent earthquake shocks were telt Monday night at Newburgsport Mass. Dan Driscol was hanged in New York city Monday morning for murder. The resol ation of Mr. Crisp, seating Mr. Carlisle, was adopted, yeas 167, nays 7. M. and E. Solomon, tobacco dealers of New York, have assigned. Liabilities $350,000. The First Natie iB Bank of Auburn, N. Y., ha filled. Cashier O'Brien has gone f Canada. The land grant claim of the Mobile and Montgomery Railroad has been adjusted, favorably to the road. The London grain market is dull and declining. Heavy supplies from America have depressed the market. Gen. Nicholls, lately nominated for Governor of Louisiana by the Democrats, is a West Pointer, and lost an arm in the war. The North Atlantic Squadron is to rendezvous at Port Royal, S. C., some time in the Spring, and have a grand naval review, A steamboat is running on the Ocmulgee river, Ga., which is officered entirely by colored men. The boat is named the Tar Heel. A Birmingham, Ala., telegram of the 21st says: "A stable contain ing two hundred horses and mules was burned yesterday. All but two animals were cremated, and the others had to be shot.

6. January 25, 1888 Wichita Eagle Wichita, KS
Article from Wichita Eagle, January 25, 1888

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Article Text

THE AUBURN FIRST NATIONAL. AUBURN: N. Y., Jan. 24.-The doors of the suspended First National bank re⁻ mained closed to-day. The bank examiner was proceeding with work, and all information as to the condition of affairs was refused. It is considered certain that Cashier O'Brien and Bookkeeper Morse are in Canada. No one can give any plausible guess as to what O'Brien did with the money.

7. January 25, 1888 Los Angeles Daily Herald Los Angeles, CA
Article from Los Angeles Daily Herald, January 25, 1888

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Article Text

No Admittance. AUBURN, N. Y., January 24.-The doors of the suspended First National Bank remained closed to-day. The bank examiner is proceeding with his work and all information as to the condition of affairs is refused.

8. January 25, 1888 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, January 25, 1888

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Article Text

The Auburn Bank Failure. AUBURN, N. Y., Jan. 24.-The - doors of the suspended First National bank remained closed to-day. The bank examiner was proceeding with his work and all information as to the condition of affairs was refused. It is considered certain that Cashier O'Brien and Bookkeeper Morse are in Canada. No one can give any plausible guess as to what O' Brien did with the money.

9. January 25, 1888 Evening Star Washington, DC
Article from Evening Star, January 25, 1888

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Article Text

Depositors Becoming Nervous, SUSPICION THAT STOCKHOLDERS OF THE AUBURN BANK ARE SEEKING TO AVOID RESPONSIBILITY. The affairs of the First National Bank of Auburn, N. Y., are in so chaotic a state that no information can be given until the examiner finisnes his investigation. Nothing has been learned as to the whereabouts of Cashier O'Brien and Bookkeeper Morse, but it is a fair assumption that they are across the border in Canada. The board or education held a special meeting to devise ways and means for raising money to meet current expenses until the $52,000 tied up in the closed bank could be made available. It was decided to petition the legislature for permission to make a loan. Depositors are growing nervous over the outcome of the trouble. Some of them offer to assign their claims for 75 cents on the dollar. There is a growing suspicion that some or the stockholders have transferred their holdings to trustworthy friends to avoid liability. This suspicion in itself causes much uneasine SS. The true state of affairs will not be known, however, until a receiver is appointed and the day of settlement arrives.

10. January 28, 1888 Mohave County Miner Mineral Park, AZ
Article from Mohave County Miner, January 28, 1888

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Article Text

The First National Bank of Auburn. N. Y., has suspended, and the cashier and bookkeeper are supposed to be in Canada.

11. February 21, 1888 Evening Star Washington, DC
Article from Evening Star, February 21, 1888

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RECEIVER APPOINTED.-The Controller of the Currency to-day appointed S. Edwin Day as receiver for the First National Bank of Auburn, N. Y.

12. April 3, 1889 New-York Tribune New York, NY
Article from New-York Tribune, April 3, 1889

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A BANK DIRECTOR ACOUSED OF FRAUD. Auburp, N. Y., April 2-Nelson Beardsley, millionairs, has been sned by Receiver Hayes to recover $100,000 alleged to have been fraudulently obtained from the First National Bank prior to 1tg suspension, while a director and knowing the institution to be unsound.

13. January 3, 1891 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, January 3, 1891

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# NEWS OF THE DAY. The inauguration of the Governor of Kansas will take place Monday, January 19. F. Kline, a crockery dealer of Wilkes-barre, Pa., has assigned. The liabilities are $7,648.28. James Casey, plumber and gas fitter at 309 West 145th street, New York, has made an assignment. There is a strong feeling in Berlin in favor of sustaining Emin Pacha against Baron Wissman. The Democratic State Central Committee of Connecticut met at New Haven and re-elected Clinton B. Davis chairman. Heavy rains have caused a rise in the Ohio and other rivers that threaten danger at various points. An ice gorge above Johnstown, Pa., causes alarm to be felt there. James Halloran, nine years old, of Hoboken, N. J., who was discovered staggering drunk in the street there on Thursday, has since died from the effects of the liquor. The cruiser Philadelphia will leave the Brooklyn Navy Yard to-day for a winter cruise in the West Indies. The Dolphin will not be ready before Monday. Medical Examiner White of New Haven, Conn., announces that the death of Kitty O'Neal, the sixteen-year-old girl who died in her father's arms a few days ago, was due to arsenical poisoning. There is no clue to the identity of the White Caps who visited the residence of Reuben Young at Riverton, Pa., this week and forced him to promise to abstain from using intoxicating liquor. The Queen Regent of Spain sent to the Pope as a New Year's gift a handsome malacca cane. An ingenious contrivance was placed in the top of the cane so that when the Pope touched it, it flew open letting loose a shower of gold coins. The published report that a case of leprosy was being treated by Koch's lymph in New York city and that the facts are being concealed, is denied by Dr. Cyrus Edison of the Health Department. Patrolman Kearney, of Boston, who has been on trial on the charge of manslaughter in shooting a boy named John Davenport while stealing grapes, was acquitted on the manslaughter count, but on the count charging gross carelessness the jury failed to agree. Receiver Hayes of the defunct First National Bank of Auburn, N. Y., has instituted a suit against all of its directors, among whom are several of the most prominent and wealthy men in Auburn. The receiver seeks to recover over $500,000 due depositors on the ground that the directors allowed the bank to be improvidently and recklessly managed.

14. July 1, 1891 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, July 1, 1891

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# AVENGING AN INSULT. A Former Cheyenne Lady Pounds a Banker With Her Umbrella. The New York World contains the following story of a sensational assault upon an Auburn, N. Y., banker in which Mrs. William Richardson, who lived in this city for a number of years, figures prominently: Auburn society is revelling in the details of a scandal which was brought to public notice on Saturday by an assault upon Receiver F. Maurice Hayes of the defunct First National bank by Mrs. Mary A. Arnett, who is eighty years old, and her daughter, Mrs. William Richardson, of Cheyenne, Wyo. The assault took place at the Electric railroad station, at the foot of Owasco lake, where the parties came together to take a train for the city. Hayes was escorting his fiance, Miss Anna Smith, a society belle of Auburn, when the two women came at him with the exclamation, "You brute!" and punched him with their umbrellas. Miss Smith fled at the first charge, and Hayes lost no time in following suit. The cause of the assault upon Hayes by the two women, according to their story, is an insult which he is alleged to have offered to Miss Mary Arnett, the daughter of Mrs. Arnett, and the sister of Mrs. Richardson, a year ago last October. Miss Arnett says that Hayes, who had rented a room in her mother's residence, escorted her to the theater, and upon their return to the house late in the evening attempted to assault her. Miss Arnett, whose reputation is of the best, said that she did not have the nerve to go on the witness stand, and so did not have Hayes arrested, although she did consult a lawyer.