1.
April 9, 1909
The Newark Star and Newark Advertiser
Newark, NJ
Click image to open full size in new tab
Article Text
BINGHAMTON TRUST co. AND KNAPP BROS. SUSPEND. BINGHAMTON, N. Y., April 9.-The Binghamton Trust Company, capitalized at $300,000, and Knapp Brothers, private bañkers, having offices in Deposit and Callicoon, N. Y., suspended today. In a statement President Charles J. Knapp, of the trust company, said that the suspension followed a meeting of the board of directors last night, at which it was decided to place t he institution in the hands of the State banking department. Chief Examiner M W. Hutchins took charge of the company.
2.
April 9, 1909
Evening Star
Washington, DC
Click image to open full size in new tab
Article Text
TRUST COMPANY SUSPENDS. Binghamton Bankers Place Business in State Banking Department. BINGHAMTON, N. Y., April 9.-The Binghamton Trust Company, capitalized at $300,000, and Knapp Bros., private bankers, having offices in Deposit and Callicoon, N. Y., suspended today. In a statement President Charles J. Knapp of the Binghamton Trust Company said that the suspension of the Binghamton company followed a meeting of the board of directors last night, at which time it was decided to place the institution in the hands of the state banking department. Chief Examiner M. W. Hutchins took charge of the trust company. Mr. Knapp said that this action was taken owing to the prospective suspension of business by the firm of Knapp Bros. in Deposit and Callicoon, in which Mr. Knapp is heavily interested.
3.
April 9, 1909
The Topeka State Journal
Topeka, KS
Click image to open full size in new tab
Article Text
TRUST CO. SUSPENDS. Binghampton Concern Capitalized at $300,000 Quits Business, Binghamton, N. Y., April 9.-The Binghamton Trust company, capitalized at $300,000, and Knapp Brothers, private bankers, having offices in Deposit and Callicoon, N. Y., suspended today. In a statement President Charles J. Knapp, of the Binghamton Trust company, said the suspension of the Binghamton company followed a meeting of the board of directors at which time it was decided to place the institution in the hands of the state banking department. Chief Examiner M. W. Hutchins took charge of the trust company. Mr. Knapp said this action was due to the prospective suspension of business by the firm of Knapp Brothers in Deposit and Callicoon in which Mr. Knapp is heavily interested.
4.
April 10, 1909
The Ocala Evening Star
Ocala, FL
Click image to open full size in new tab
Article Text
BINGHAMTON BANKS BREAK Binghampton, N. Y., April 10.-The Binghamton Trust Company, a concern capitalized at $300,000, and Knapp Bros., private bankers, suspended here yesterday morning.
5.
April 10, 1909
The San Francisco Call
San Francisco, CA
Click image to open full size in new tab
Article Text
Army and Navy Orders WASHINGTON, April 9.-Captain €. M. Condon of the Coast artillery corps is detailed as major to command the Sixth battalion of Philippine scouts, vice Captain Franklin S. Hutton. Captain Condon will proceed to Manila by the first available transport from San Francisco and will report in person to the commanding general of the Philippine division. Captain Hutton will proceed to San Francisco by the first available transport and will report by telegraph to the adjutant general of the army for further orders. The leave granted to Captain Edward P. Nones, quartermaster, January 7. 1909, in the Philippines division, has been extended one month. Navy orders-The following cable has been received from Rear Admiral Harber of the Pacific fleet at Shanghai: Midshipman A. M. Steckel is detached from duty on the Paragua and ordered to the Rainbow. Ensign H. M. Bemis, discharged from the naval hospital at Yokohama, Japan, has been ordered to the Paragua. TRUST COMPANY SUSPENDS-Binghamton. N. Y., April 9.-The Binghamton trust company, capitalized at $300,000. and Knapp Brothers, private bankers, having offices in Deposit and Callicoon, N. Y., suspended today.
6.
April 10, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
HIT TRUST COMPANY PRIVATE BANKERS FAIL. Up-State Concerns Controlled by Knapp Family Close Doors. Binghamten, N. Y.. April -The Binghamton Trust Company. capitalized at $800,000. and Knapp Brothers, private bankers. having offices in Deposit and Callicoon. N. ¥.. suspended operations this morning In a statement given out to-day President Charles J. Knapp. of the Binghamton Trust Company, said that the suspension of the Binghamton company followed a meeting of the board of directors last night. at which time it was decided to place the institution in the hands of the State Banking Department. Chief Examiner M. W. Hutchins arrived this morning and took charge of the trust company. President Knapp stated that the suspension of the trust company was due to the inability of Knapp Brothers to meet obligations. The embarrassment of this firm. he said, was due to an overloan to the Outing Publishing Company. of Deposit. The bank examiner is unable to make estimate of the assets and liabilities until he has gone over ali the securities The directors of the bank announce to-right that it will be reorganized and the depositors paid in full. When the bank closed its doors it had more cash on hand than at any other period of its history, but it was thought best to place the bank in the hands of the state department. under the new law passed last year. thereby avoiding a probable run and the possibility that securities would have to be sacrificed The deposits of the Binghamton Trust Company are over $3,200,000. The Knapp Brothers' bank at Deposit has deposits of about $430.000 and their Callicoon bank about $200,000. Much of the paper from the Dépobil and Callicon banks had been taken by the Binghamten Trust Company The Binghamten Trust Company has a capital of $300,000 and a surplus of $317,000. and its stockholders are llable for $300,000 more. It 18 believed that the loss to the trust company could reach $750,000 before the depositors would lose a cent. Unless conditions are found to be much worse than expected. it is thought that the losses will not be over $500,000 or $600.000 Ex-Congressman Charles J. Knapp is president of the Binghamton Trust Company, and his son Percy is cashier. and his nephew, Charles P. Knapp. managed the Deposit and Callicoon banks. These men and several other members of the Knapp fami1y are the principal owners of the publishing company. Albany, April 9. The failure of the Binghamton Trust Company was a surprise to the State Banking Department officials. The company through its president. C. J. Knapp. and F. P. Knapp. cashier. filed a report with the department recently in compliance with a call issued by the department to trust companies, giving their condition as of March 26 last The report gives the total resources and liabilities as $8,884,286 75. Under the law enacted last year the Superintendent of Banks has power to liquidate the institution or allow it to resume operations. Clark Williams State Superintendent of Banks, said last night that his department had taken possession of the suspended Binghamton Trust Company. but that he had received only one report during the day and *could not speak authoritatively regarding the suspension. The bank department inspects companies under its control twice a year. and at the last inspection of the Binghamton Trust Company its affairs were found to be in perfect shape This fact appears to give verification to reports that the trust company's embarrassment is caused by the insolvency of subsidiary concerns that do not come under the authority of the State Superintendent of Banks It is expected that the affairs of the company will be liquidated within a short time and at very small cost to the stockholders and depositors In the case of the Home Bank of Brooklyn. the first instance under the new law enacted last year. forty-two days was all that was required for liquidation and the cost was only $1,200. This has been the case with all the liquidation proceedings in which the state department has superseded the receiverships current under the aid law. The new law closely resembles the federal system. and impartial critics declare that it is a decided success The publication office of The Outing Magazine. issued by the Outing Publishing Company is Deposit. N. Y., the editorial rooms being Nos. 35 and 37 West 31st street this city. According to the Corporation Directory for 1909 Charles ₽. Knapp is president and James Knapp Reeve secretary and Charles P. Knapp. James Knapp Reeve J. Henry Harper and Allan C. Hoffman are directors of the company
7.
April 10, 1909
The Montgomery Advertiser
Montgomery, AL
Click image to open full size in new tab
Article Text
TWO BANK FAILURES. Binghamton Trust Company And Knapp Brothers Suspend. Binghamton, N. Y., April 9 -The Binghamton Trust Company, capitalIzed at $300,000 and Knapp Brothers, private bankers, having offices in Dèposit and Callicoon, New York, suspended today. In a statement, President Charles J. Knapp, of the Binghamton Trust Company, today said the suspension of the Binghamton Company followed a meeting of the Board of Directors last night at which time it was decided to place the institution in the hands of the state banking department. Chief Examiner M. W. Hutchins took charge of the trust company. Mr. Knapp said this action was taken owing to the prospective suspension of business by the firm of Knapp Brothers in Deposit and Callfoon, in which Mr. Knapp is heavily interested.
8.
April 10, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
THE NEWS THIS MORNING CONGRESS-Senate: The census bill was considered Mr. Root making his first speech as a Senator House: The Payne tariff bill was passed by a vote of 217 to 161. FOREIGN.-F Marion Crawford, the American novelist. died after a long illness at his home Algernon Charles in Sorrente. Italy Swinburne, the poet. is critically ill from pneumonia. France informed the State Department that the decision to expel Castro from Martinique would be at once carried into effect. and it is believed that he will be placed on board the next steamer sailing from Fort de Theodore Roosevelt France for Europe. arrived at Port Said, and gave out a statement that Americans did not realize the labors performed by their countrymen at Messina. The body of Oliver Bray, an American medical student from Pennsylvania, was found in the Danube. Twenty persons were injured in Rome by an explosion of dynamite in a house near St. Peter's Rich placer gold fields have been discovered in Oaxaca, Mexico. DOMESTIC.-The legislative leaders prepared for adjournment on April 24. and the antiHughes forces were confident that all of the legislation desired by the Governor would be defeated The Binghamton Trust Company, capitalized at $300,000. and Knapp Brothers, private bankers, having offices in Deposit and Callicoon. N. Y., suspended operations. Ethan Allen Hitchcock ex-Secretary of the InWilliam Fitzterior, died in Washington hugh Whitehouse died at Beaulieu, France. The jury which heard the evidence for and against Mrs. Georgia Sampson, charged with the murder of her husband returned a Arguments in the verdict for acquittal Standard Oil case were finished by the defence in St. Louis: the case will be taken under advisement following the final argument for the government to-day. and a decision is expected next fall. The conference between the hard coal operators and mine workers ended in a deadlock at Philadelphia CITY.-It was learned that Mrs. Charles T. Yerkes was ill and that detectives were guarding her home in the interests of the temporary receiver. Secretary Stover announced the complete membership of the Central Park Protection Committee. The body of Police The Lieutenant Petrosino arrived here Public Service Commission made public the draft of a franchise extending the McAdoo Artunnel to the Grand Central Station. rangements were made for a mass meeting to discuss a new law for regulating the speed of automobiles. The rector of Trinity Church called the attention of the corporators to alleges inaccuracies in a pamphlet issued by St. John's. Richard Croker said again that he was not trying to make peace between the The Allied Real Democratic factions. Estate Interests arranged a luncheon to discuss A General Tracy's debt limit report. contest was begun in the Republican Club over four of the candidates for the executive committee. Count and Countess Szechenyi were among the passengers on the Mauretania. Dr. Tarleton H. Bean, State Fish Cultur1st. said trout were being driven out of many sections in New York by sewage, dairy refuse and sawdust. The rector of the Church du Saint Esprit said that he had been unable to get beggars, who asked high for assistance. to continue working on his farm in New Jersey. Dr. Walter Bensel said the high death rate last week was almost entirely due to grip. THE WEATHER-Indications for to-day: Fair. The temperature yesterday: Highest, 51 degrees; lowest, 37.
9.
April 11, 1909
Daily Press
Newport News, VA
Click image to open full size in new tab
Article Text
TWO BANKING FIRMS CLOSE THEIR DOORS No Statement of Liabilities and Assets One Loaned Heavily to a Paper Company. (By Associated Piess) BINGHAMTON, N. Y., April 10. The Binghamton Trust Company and Knapp Brothers, private bankers, having offices in Deposit and Callic on, Y., suspended yestorday. The deposits of the Binghamton Trust Company. which closed its doors this morning, are woyer $3,000.000. The Knapp Brothers' bank. at Deposit, has deposits of about $450.000, and their Callicoon bank has about $300,000. These banks it is said, have made loans to a publishing company of Deposit amounting to over $700,000. Much of the paper from the Deposit and Callicoon banks has been taken by the Binghamton Trust Company. The Binghamton Trust Company has a capital of $300,000 and a surplus of $317,000 and its stockh Iders are liable for $300,000 more. It is believed that the loss to the trust company would reach $750,000 before the depositors would lose a cent. Former Congressman Charles J. Kna: P is president of the Binghamton Trust Company, his sen, Percy. is cashier and his nephew, Charles P. Knapp. managed the Deposit and the Callicoon banks. These men and several other members of the Knapp family are the principal owners of the publishing company.
10.
April 14, 1909
The Citizen
Honesdale, PA
Click image to open full size in new tab
Article Text
Binghamton, Deposit and Callicoon Banks Close. SUSPENSION OF KNAPP BROTHERS Binghamton Trust Company in Hands of the State Banking Department-Much Excitement Along the Upper Delaware. Announcement of the closing of the doors of the Binghamton Trust company and the suspension of business of the Knapp brothers' private banks at Deposit and Calicoon, N. Y., on Friday last, occasioned much surprise and regret among many residents of the Northeastern counues of Pennsylvania, and Sullivan, Delaware and Broome counties in New York, whence most of their deposits were derived. As yet no reason has been given for the failure. C.J. Knapp, the presidentof the Binghamton Trust company is the wellknown leader and owner of Knapp's military band, which has a national reputation. He was rated asamillionaire, and it is known that he is interested largely in financial institutions in New York state. The Binghamton Trust company was capitalized at $300,000 and was supposed to be in a flourishing condition. During the past year the firm has advertised for patronage in the local newspapers offering four per cent. for deposits. When the crash came it caused quite a panic among the investors, especially in Binghamton and Deposit where the largest business was done. The institution had heavy depositors in Susquehanna and Carbondale, rumor having it that at least $100,000 of Susquehanna money is tied up by the suspension. There may have been some Honesdale investors, but inquiry fails to reveal any such losses as have been mentioned in the newspapers. The Trust Company was capitalized at $300,000, and had deposits of over $3,500,000 in Binghamton and the Depositand Callicoon branches. A dispatch from Binghamton dated April 9th, says that shortly before the hour for opening the banks that morning the Binghamton Trust Company posted a notice signed Clark Williams, superintendent of banks, announcing that the Binghamton Trust Company was in the hands of the state banking department. This was quickly followed by the announcement that the Knapp brothers, with private banks at Deposit and Callicoon, had suspended payment. The principal correspondent of the Binghamton Trust Company issaid to be the Chase National Bank, of New York. M. W. Hutchins, chief examiner of New York state banks, took charge of the institution. In a statement given out by the board of directors it was announced that the closing of the Binghamton bank followed the discovery of the insolvency of the Deposit and Callicoon banks. C. J. Knapp, president of the Binghamton bank, is connected with those institutions. They say that with the resources at hand and the liability of the stockholders, they hope to pay all claims in full and reorganize. The Binghamton Herald says that when James Knapp Reeves now of New York city, but then of Deposit, and Charles P. Knapp, of Deposit, decided to became the publishers of the Outing magazine, they sealed the fate of the only bank in Deposit, the private bank of Knapp Brothers and the only bank of Callicoon, N. Y., also that of Knapp Brothers. and incidentally thev decreed,
11.
May 18, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
SURETY COMPANY PAYS UP. Concern Which Bonded Court Funds Gives $62,604 to State Controller. Albany, May 17.-State Controller Charles H. Gaus has received from the Fidelity and Deposit Company of Maryland $62,604 95 as settlement in full under the bonds given by the Binghamton Trust Company, of Binghamton, as security for deposits of Broome County and Tioga County court and trust fund moneys. The Fidelity and Deposit Company was the surety for these bonds. The amount includes the principal amount on deposit with the Binghamton Trust Company on the day it suspended, together with interest to the date of settlement by the surety company. These funds represent moneys paid into courts of record in this state and in most instances belong to widows and orphans, who are dependent upon them for their support.
12.
May 20, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
BANK'S FUNDS FOR BAND MUSIC'S PART IN FAILURE. Knapp Brothers' Crash Partly Due to Entertaining New Yorkers. Entertaining New Yorkers is now said to have been one of the causes that helped to bring about the failure on April 9 of the Binghamton Trust Company and Knapp Brothers, private bankers of Deposit and Callicoon. The southern tier banking institutions had liabilities of more than $4,000,000. The fact has just come to light that Charles P. Knapp, manager of the Deposit and Callicoon banks. was the "angel" for the Knapp band which in the last two years gave many concerts in this city. His loss in backing this venture is estimated as close to $75,000. Band music was a fad with Mr. Knapp, but he backed the band which bore his name in the hope that he would be able ultimately to make it a financial success. It was this band that played at the Belasco Theatre on Sunday nights for two or three months last year. Charles P. Knapp took the band to the Taf: inauguration. and had a fino time with it in Washington. He played in the Deposit band twenty years ago. Knapp Brothers backed the Outing Publishing Company, whose printing plant is at Deposit. The Binghamton Trust Company, of which ex-Congressman Charles J. Knapp was president, lent hundreds of thousands of dollars to Knapp Brothers, who in turn spent it on the Outing Publishing Company The appraisal of the Outing plant gives it an estimated value of $175,000, and to this has been added $50,000 as the value of the good will of "Outing." The failure of the Knapp Brothers was one of the wrost in the history of the Southern Tier. It looks now as If there would be nothing for the creditors at Deposit, the home of the brothers. The Callicoon branch had about $30,000 on hand when the crash came, and a sharp fight is being made to compel the receivers to distribute this sum among the depositors there. The deposits in the Deposit bank aggregated about $450,000. and those at Callicoon $350,000. Even if the entire $30,000 goes to the Callicoon depositors the dividend will be less than 8 per cent. There were practically no cash assets in the Deposit bank when it failed. The Binghamton Trust Company had a capital of $300,000, and at the time of the failure a surplus of $317,000. and its stockholders are liable for $300.000 more. The loss to the trust company is said to be more than $500,000, and it is understood here that the directors will order an assessment to cover this loss. There was a prospect the week of the failure-that the trust company would-be reorganized, but the latest reports from Binghamton indicate that this will not be brought about. In Deposit the creditors say that there is no doubt that the bank was insolvent for years. About eight years ago the charter of the old Deposit National Bank, founded by Charles Knapp. expired. It is now believed that Knapp Brothers did not care to submit the affairs of the bank to the scrutiny of the National Bank examiners, which would have been necessary to get a new charter. The charter was allowed to lapse, and Knapp Brothers, as private bankers, kept on with the business. The reputation of the Knapps had been so good for seventy-five years, from the founding of the house by Charles Knapp. that the depositors, generally speaking, remained with the new firm. It was believed for some time before the crash that Charles P. Knapp was backing various unsuecessful business ventures, but the fact that he dropped in the neighborhood of $75,000 in backing a band which entertained New York City audiences will be a sad surprise to the creditors in Deposit and Callicoon.
13.
June 6, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
C. P. KNAPP ARRESTED. Charged with Accepting Deposit After Bank Was Insolvent. Binghamton. N. Y., June 5.-Charles P. Knapp, president of the Outing Publishing Company, which is now in the hands of receivers, owner of Knapp's Millionaire Band and in charge of the defunct bank of Knapp Brothers in Deposit. N. Y.. was arrested in Deposit this morning on the complaint of Edith Crowley, of Deposit. on a charge of accepting a deposit of $50 after he knew the institution was insolvent. He waived examination and was held to answer to the grand jury by Enós Jester. justice of the peace. He was released under $2,000 bail. The arrest of Mr. Knapp is the first criminal proceeding resulting from the failure on April 9 of the Binghamton Trust Company and Knapp Brothers. private bankers, having institutions in Deposit and Callicoon, and the Outing Publishing Company. The failure of the private banks of Knapp Brothers is said to have been due to overloans to the Outing Publishing Company, and the failure of the Binghamton Trust Company is supposed to have resulted from the elesing of the Knapp private banks, in which it was financially interested to a more or less extent.
14.
June 6, 1909
The Sun
New York, NY
Click image to open full size in new tab
Article Text
BANKER KNAPP ARRESTED. Accused of Receiving Deposits, Knowing His Bank to Be Insolvent. BINGHAMTON, N. Y., June 5.-Charles P. Knapp. former manager of Knapp Bros.' banks at Deposit and Calliooon and president of the Outing Publishing Company, all of which are in the hands of receivers, was arrested to-day at Deposit on & charge of accepting deposits in the bank knowing it to be insolvent. The complaint was preferred by Mrs. William Crowley at the instigation of District Attorney Frederick J. Meagher of Broome county. Knapp waived examination and was held for the Grand Jury. He furnished $2,000 bail, his aunt, Miss Josie F., Knapp of Deposit, qualifying on the bond. The firm of Knapp Bros., composed of Charles J. Knapp of this city, Charles P. Knapp and Morris J. Knapp of Deposit, and Florence Knapp Yukum of East Orange. N. J., was adjudicated bankrupt on April 12, when receivers were appointed both for Knapp Bros. and Outing Publishing Company. The schedules in bankruptcy show that Knapp Bros. held $750,000 in notes. $234,000 in first mortgage bonds and $40,000 in debenture bonds of the Outing company. The deposits in the banks amounted to $1,360.55. This was paid in chiefly by farmers in Delaware and Broome counties. These depositors will not get more than 10 per cent. because of the heavy losses incurred by Outing Publishing Company in connection with its magazines Outing, Grey Goose and the Bohemian. Because of the failure of Knapp Bros. the State Department on April 9 took charge of the Binghamton Trust Company, of which C. J. Knapp was president. Charles P. Knapp conducted Knapp's Band, which gave concerts at the Majestic Theatre in New York. Since the failure he had secured a position as clerk at the new Monmouth Hotel, Spring Lake Beach, New Jersey
15.
June 9, 1909
The Citizen
Honesdale, PA
Click image to open full size in new tab
Article Text
200 chickens. Large silo. Wayne county. Situated one-half mile fro village. Inquire at THE CITIZEN office. LOCAL MENTION. -Sixteen excursions have been book for the month of June, at Lake Lodo -Four promotions from Co. M, 17 Cavalry (162d Reg. P. v.) while in t three years service, to positions amo the field and staff officers, were made follows: Capt. Coe Durland to Liet Col. ; James Brannon, private, to S Major; Henry J. Tarble, private Hospital Steward, and Wm. C. Walk private, to Saddler. --On Thursday night the famo play, "The Burglar," will be given the Lyric Theatre for the benent the Eagles of this place. You shou not miss it. The cast of characte will be as follows: William Lewis Eugene LaR (Lately with Gardner-Vincent Co Leo Osbor Edward Bainbridge Joe Bodie, . Paul Benton W. W. Wo John Hamilton Clarence Gre James Edna Doolit Alice Ruth Lo Fannie Lizzie Denhar Martha and Editha Mary Wenig -By agreement between the co missioners of Susquehanna a Wayne counties and the Erie ra road, about $50,000 will be expen ed for public improvements. T Erie will build a bridge across tracks at Forest City. The counti will bridge the Susquehanna, a bridges will be built by the Ontar and Western Company at sever places. The improvement will cc nect Forest City in Susquehan county and Clinton in this county . -On Saturday evening William M loy was taken into custody by office John Canivan. On Wednesday a co mission in lunacy was appointed whi reported that Malloy was insane. 1 court thereupon issued an order that be taken to the Insane Hospital at Da ville. Detective N. B. Spencer and ( ficer Canivan went to East Honesda but could not find their man. Th searched the entire neighborhood, k met with no success. He was sub quently captured, however, and Monday was taken to Danville, by N. Spencer and John Burcher. -Charles P. Knapp, President the Outing Publishing Compar which is in the hands of receive owner of Knapp's Millionaire Bar and in charge of the defunct ba of Knapp Brothers, in Deposit, Y., was arrested in Deposit on Si urday morning on the complaint Edith Crowley on a charge of a cepting a deposit of $60 after knew the institution was insolve He waived examination and w held for the Grand Jury under $ 000 bail. The arrest of Knapp the first criminal proceeding resu ms from the failure of the Bir hamton Trust Company, Kna Brothers, private bankers, and t Outing Publishing Company. has been announced that Mr. Kna had secured a position as ch clerk of the New Monmouth Ho at Spring Lake Beach, N. J., whi opens on Saturday next, June 12 F. F. Shute, the proprietor, is personal friend of Mr. Knapp, a
16.
August 31, 1909
The Topeka State Journal
Topeka, KS
Click image to open full size in new tab
Article Text
GOOD FOR CREDITORS. First Demonstration of New York's New Banking Law. New York, Aug. 31.-The first demonstration of the saving to creditors of embarrassed banking institutions under the law passed by the state legislature this year, which substitutes the state banking department for receivers appointed by courts, is given in the case of the Binghamton Trust company, which became involved about five months ago. In announcing today the readiness to pay 50 per cent of approved claims against the trust company, Clark Williams, state superintendent of banking, says: "At the time the banking department took control the Binghamton Trust company owed to its depositors and correspondents $3,190,585. The balance remaining unclaimed August 25, was $28,603. During the same time the department has collected from the assets of the company $1,560,318. This work has been done at a total expense including receivers, of $10,626."
17.
September 1, 1909
The Montgomery Advertiser
Montgomery, AL
Click image to open full size in new tab
Article Text
CREDITORS' MONEY SAVED BY NEW YORK'S SYSTEM New York, Aug. 31.-The first demonstration of the saving to creditors of embarrassed banking institutions under the law passed by the State Legislature this year, which substitutes the State Banking Department for receivers, appoined by courts, is given in the case of the Binghamton Trust Company, which became involved about five months ago. In announcing today readiness to pay 50 per cent of approved claims against the trust company, Clark Williams, State Superintendent of Banking, says: "At the time the Banking Department took control the Binghamton Trust Company owed to its depositors and correspondents $3,190,585. The balance remaining unclaimed August 25 was $28,603. During the same time the Department has collected from the assets of the company $1,560,318. This work has been done at a total expense, including receivers, of $10,626." Superintendent Williams quotes from a report to the Legislature in 1902 the statement that the cost (receivers, attorneys and referees' fees and expenses) of liquidating insolvent banking and insurance companies for a period oc ten years, covering seventy cases, had been from 20 per cent to 30 per cent of the receipts, some of them running as high as 80 per cent or 90 per cent.
18.
September 1, 1909
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
BANK LAW VINDICATED. State Department Liquidates Binghamton Trust Co. at Small Cost. Justice George F. Lyons, of the Supreme Court, granted permission yesterday to the Superintendent of Banks of the State of New York to pay an initial dividend of 50 per cent on the approved claims against the Binghamton Trust Company. The trust company was seized by the Banking Department as a delinquent corporation on April 9. and is now being liquidated under the provisions of one of the reform bank laws passed by the Legislature in 1908. The immediate work of liquidation is in charge of Alfred W. Hudson, one of the regular examiners of the department. At the time the Banking Department took control, the Binghamton Trust Company owed to its depositors and correspondents $3,190,685 27. The balance remaining unclaimed on August 25 was $28,603 71. In the same time the department has collected from the assets of the company $1,560,318.38 This work has been done at a total expense, including receivers, of $10,626 11. Thus in less than five months after the Banking Department took possession of the Binghamton Trust Company its eight thousand creditors receive a dividend of 50 per cent of their claims, while the collection and disbursement of the assets have been accomplished at a cost of approximately two-thirds-of 1 per cent of the amount collected. The report of the Hepburn Commission on Banks, submitted to Governor Hughes on December 15, 1907, on the matter of receiverships, said: Attorney General Davies, in 1902, reported to the Legislature that he had caused to be compiled the cost (receivers', attorneys' and referees fees and expenses) of liquidating insolvent banking and insurance companies for a period of ten years, COVering seventy cases: that the expenses of a large number of those receiverships had been from 20 to 30 per cent of the receipts, some of them running as high as 80 or 90 per cent. In the case of the thirty-nine insolvent national banks located in this state the percentage of total expense was 8.7.
19.
September 1, 1909
Los Angeles Herald
Los Angeles, CA
Click image to open full size in new tab
Article Text
NEW YORK PLAN SEEMS TO BEAT RECEIVER GAME Reports from Handling of Binghamton Trust Company Show Figures That Are Unusual NEW YORK, Aug. 31.-The first demonstration of the saving to creditors of embarrassed banks under the law passed by the legislature this year, which substitutes the state banking department for receivers appointed by courts, is given in the case of the Binghamton Trust company, which became involved about five months ago. In announcing today readiness to pay 50 per cent of approved claims against the trust company Clark Williams, state superintendent of banking, says: "At the time the banking department took control the Binghamton Trust company owed its depositors and correspondents $3,190,358. The balance remaining unclaimed August 25 was $28,603. "During the same time the department has collected from the assets of the company $1,560,318. This work has been done at a total expense, including receivers, of $10,626."
20.
October 23, 1909
The San Mateo Item
San Mateo, FL
Click image to open full size in new tab
Article Text
Passing of Costly Receiverships. In the liquidation of the Binghamton Trust Company, Clark Williams, superintendent of banks, has again demonstrated that the big fees formerly paid to receivers for failed banks were unjustified. This band has paid an initial dividend of 50 per cent. to the depositers. This disbursement comes barely five months after the doors were closed. The amount paid out was over $1,500,000. Under the old system of court receiverships, such rapid settlement of claims would have been unheard of So would such a thing as an expense to the depositors, including the receiver's salary of $10,626.11, which was less than 1 per cent. upon the total amount disbursed. The success of Clark Williams's plan is attracting the attention of the legislatures of other states. The people of New York owe a great debt of gratitude to their conscientious superintendent of banking for this reform.-New York Financial World.
21.
January 14, 1910
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
A PARALLEL. The State Superintendent of Banking refers in his annual report to the liquidation by his department of two institutions, the Lafayette Trust Company, of Brooklyn, and the Binghamton Trust Company, of Binghamton. In the former case the cost of liquidation was about 1 per cent of the assets, and in the latter about two-thirds of 1 per cent. Under the old system of receivers appointed by the courts the cost of liquidation often amounted to 20 or 30 per cent of the assets. The old receivers of banks and trust companies were twin brothers of the condemnation commissioners still appointed by the courts. They were largely recruited from the same class of political hangers-on. They often owed their places to "pull." Like the condemnation commissioners, they looked upon their appointments as their opportunity, and they made the most of them. Dispatch and economy were not the object; indeed dispatch and economy would have seemed like flying in the face of a beneAcent providence. Courts used more or less often to cut the allowances to receivers and scold them for the results they achieved, but the system survived with its evils un-
22.
April 6, 1910
New-York Tribune
New York, NY
Click image to open full size in new tab
Article Text
at 6 per cent interest, without commission. This credit, it is understood, has been repaid.
Whether or not the bank will be reopened it is still too early to predict. Some of the larger interests, it is understood, are desirous of putting more money into it, but other important interests are said to consider that policy inadvisable. The wishes of the body of the stockholders have yet to be ascertained, and if they are willing to submit to a considerable assessment the institution may be reopened. Another possibility is that some other bank may make an offer for the Union and take it over.
The Union Bank will benefit by having its affairs placed in the hands of the State Superintendent of Banks instead of a receiver. The first case of the sort was that of the Home Bank of Brooklyn, a small institution, which was reopened for business on June 4, 1908, after having been in charge of the Banking Department for forty-two days, at a total cost of only $1,200. Under the new system, it was said at the time, the cost of liquidating the Williamsburg Trust Company would have been not more than $4,200, compared with the $40,000 allowed the receivers and their counsel, which fee did not include the cost of administering the trust.
The report of Superintendent Cheney last month noted that the creditors of the Lafayette Trust Company up to date had received 30 per cent and those of the Binghamton Trust Company 50 per cent, the costs of liquidation having been, respectively, 1 per cent and two-thirds of 1 per cent.