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e 1116 TWO BINGHAMTON CONCERNS CLOSE THEIR DOORS. One of them a National and the Other a State Institution-A Claim Made That the Cashier of the Two Is a Defaulter-He and the President Burglarize the Vaults, But Are Compelled to Return Their Plander-Runs Made on Two Other Banks. Binghamton, N. Y., Jan. 24.-At noon the controller of the currency assumed charge of the National Broome County Bank. This bank was voluntarily closed by its officials this morning They feared a run, which the bank was totally unprepared to meet It is asserted that the Chenango Valley Bank, a state bank. which was also closed. has securities deposited with the Bing hamton Savings Bank sufficient to meet all obligations. The bank examiners have been at work on the books of the savings bank for three days. They refuse to divulge the result of their investigations, but it is evident that the affairs of the bank are badly tangled The withdrawal of deposits at the Bing hamton Savings Bank continued throughout the day. There was a run on the Binghamton Trust Company. A both banks the offl. cials say they have sufficient funds to pay every deposit in full, and more currency on the way. A meeting of the directors of the Chenango Valley Bank was held at 11 o'clock and it was decided to demand the regular 60-day notice for the withdrawal of de. posits, The officers of the bank state that there are sufficient securities in the hands of the bank examiner to pay every depositor in full and leave good surplus Detective Stephenson of the local police force was ordered by Bank Examiner Clarke yesterday afternoon to watch the Chenango Valley Savings bank which has its office in the Phelps Bank building In company with Officer Heath, the de tective remained in the vicinity all night About 4 o'clock this morning Tracy R Morgan, the treasurer of the bank, was seen to enter the bank He came out again in a few minutes and went to the grocery store of D. L. Brownson, who the president of the bank. A few minutes later he came out with a bushe basket followed by Mr. Brownson and both of them returning to the bank Half an hour later the two men came out with the basket full of books and papers. They went up Chenango street, followed by Detec tive Stephenson and Officer Heath. Detective Stephenson requested Morgan and Brownson to return the books and papers to the bank. Morgan refused, claiming that they were his private property The detective insisted and the bank officials returned to the bank with the books and papers. The citizens had recovered from the shock following the suspension of the Merchants' and the Ross private bank and affairs were assuming their normal aspect when the rumor was circulated that the Chenango Valley Bank had drawn its curtains. On the heels of this startling report came the announcement that the National Broome County bank had also discontinued business. The citizens were fairly paralyzed with astonishment the apprewas magnihension of small depositor fied by exaggerated stories which were eirculated to the injury of other local bank ing institutions. The news regarding the failure spread rapidly and as each messenger enlarged upon the real condition of affairs a panic seized the populace and it became apparent that a run upon the banks would be inevitable. The smaller depositors were thoroughly frightened and it became evident that nothing could prevent the abnormal pressure. Just such a movement had been anticipated, however, and the solid institutions were prepared for the rush. The run upon the Binghamton Savings Bank was heavy and the crowd of anxious depositors increased with the hours, but the bank was prepared for the emergency. The officers, pale, but cool and composed stood behind the heavy plate glass windows. surrounded by piles of shining gold and silver. They had protected themselves with a large amount of cash, and during the day telegrams were received from metropolitan banking institutions, to the effect that they would support the Binghamton banks for unlimited amounts. Runs were also made upon the other banks of the city but all depositors were promptly paid, and when the doors were closed, at 3 o'clock it was evident that the rush and fright were over. The books of the Chenango Valley Bank which closed first were being examined by Bank Examiner Backus, who came here several days ago. He claims that the books were in bad condition, and it was at his instance that the bank was closed. The affairs of the National Broome County Bank were not in a condition to compel the suspension of the institution. The national bank examiner, who was in this city Jan. 17. investigated the affairs of this institution and found the bank solvent. A statement of the liabilities and assets proves that all the affairs of the bank are in first-class condition. The bank, however, did not take the precaution to prepare for a run. Soon after opening yesterday morning three heavy demands were made upon its funds This crippled the bank. and the doors were closed. An examination of the af fairs of the institution shows the bank to be perfectly solvent, as the assets ex ceed the liabilities. The liabilities are $415,588, and the assets $511,500 The closed banks are located in the basement of the Philips Bank building Tracy R. Morgan was cashier of both banks, which virtually in one, exbooks were kept for cept that separat each, one being regulated by the national banking laws and the other was regulated by the state banking department. David Brownson son-in-law of Mr. Morgan, is president of the National Bank Benjamin N. Loomis is vice president of the Sav ings Bank The name of the president is not given on the books. Much excitement was caused by the announcement that Tracy R. Morgan and David Brownson had been detected carrying papers from the Chenango Valley Savings Bank, at o'clock this morn ing. These documents, it is claimed, are private papers to which the parties had perfect right. Recorder Roberts was interviewed tocorroborated the statement day documents removed from the that
