14821. Brooklyn Bank (Brooklyn, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 25, 1907
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 8e2c9dcc

Response Measures

None

Description

The Brooklyn Bank did not open and suspended payment Oct 25, 1907 after the closely allied International Trust Company's failure; temporary receivers were appointed in mid-November and the bank was reorganized and reopened June 23, 1908. Articles describe suspensions and later reorganization and reopening; there is no clear description of a discrete depositor run on the Brooklyn Bank itself (runs are described mainly at the trust company), so this is classified as a suspension with subsequent reopening.

Events (4)

1. October 25, 1907 Suspension

Cause: Local Banks
Cause Details: Closely allied/merged with the International Trust Company; the trust company's suspension and lack of ready cash forced the Brooklyn Bank not to open and to suspend payment.
Newspaper Excerpt: The Brooklyn Bank at Fulton and Clanton street did not open today.
Source: newspapers

2. November 16, 1907 Receivership

Newspaper Excerpt: Temporary receivers were appointed today for six New York banks ... the Brooklyn Bank ... the trust companies, the Williamsburg and Jenkins of Brooklyn and the International of New York.
Source: newspapers

3. November 30, 1907 Other

Newspaper Excerpt: Assets Greatly Overvalued, Says Temporary Receiver. The temporary receiver of the Brooklyn Bank, Bruyn Hasbrouck, will file his report ... report will disclose loans made on such collateral as piano rentals and leases ... and $287,464 due from the International Trust Company (Brooklyn branch), which has closed its doors.
Source: newspapers

4. June 23, 1908 Reopening

Newspaper Excerpt: The reopening of the Brooklyn bank ... took place today. Opening under a policy of payment in full on demand ... the event today was a popular one ... the bank reopens under new management.
Source: newspapers

Newspaper Articles (24)

1. October 25, 1907 The Washington Times Washington, DC

Article from The Washington Times, October 25, 1907

Click image to open full size in new tab

Article Text

Those That Suspended Today. The International Trust Company, of 206 Broadway. did not open for business today, and its suspension involved the Borough Bank of Brooklyn, in which Senator Reynolds is heavily interested, and the Brooklyn Bank, both of which suspended. In Manhattan, the United States Exchange Bank, at 23 and 25 West 125th street, did not open for business. Instead a notice was posted announcing a temporary suspension. Secretary of the Treasury Cortelyou was again at the subtreasury today. After several conferences with financiers, he said the situation had greatly improved.

2. October 25, 1907 The Roswell Daily Record Roswell, NM

Article from The Roswell Daily Record, October 25, 1907

Click image to open full size in new tab

Article Text

New York, Oct. 25.-A much cooler tone was apparent in the business district this morning. The success of relief measures undertaken yesterday by J. P. Morgan, John D. Rockefeller and other prominent financiers together with the promptness with which the officials of the Trust Company of America met the run of depositors, gave great encouragement to bankers and business mea generally that no further trouble was to be feared. A pool of twenty-four million 'ollars made up by a pool headed by J. P. Morgan, which went into the stock market yesterday afternoon is believed to have given permanent relief to brokers in need of funds to carry stock bought and sold on margins for customers. In an address at a dinner last night Secretary Cortelyou referred to the financial situation:: "We are having a trying experience, but with all embarrassments I feel my faith in the general stability of business strengthened by the examples I have seen of high courage and splendid devotion to the public shown by many men of great influence in the commercial and and industrial affairs of this city. The weak places have been fortified, but what is better those of evil influences have been scourged from their positions, and the determination to carry this work forward will have a far reaching influence in restoring the public confidence." The announcement was made this morning that the United States Exchange Bank, a small institution in Harlem, would not open for business today. The bank has little more than $500,000 on deposit, and its suspension was evidently without effect on the general situation. There were lines of depositors waiting this morning at daylight in front of the Trust Company of America. The line was maintained all night and a woman declined to leave her place, even when the men behind her promised to restore the place to her in the morning. The International Trust Company, one of the small and inconspicuous companies, closed its doors at 10:40. This company had business connections with the Borough Bank of Brook lyn which suspended today. The Brooklyn Bank at Fulton and Clanton street did not open today. It has capital stock of $300,000 and owes about one million five hundred thousand dollars. The Borough Bank of Brooklyn, a state institution with capital of $200.000 and deposits of about three millions did not open for business today. Its business was not very large, and no prominent financiers were connected with it. One of its principal connections was the Kniekerbocker Trust company. The Lincoln Trust Company resumed payment to depositors today as usual. Big Failure at Providence. Providence, R. I., Oct. 25.-The Union Trust Company, on which there was a run yesterday, did not open for business today. At nine o'clock, the usual hour of opening, the following notice was posted: "This bank will not open today, owing to the stringency of the money market." There were several hundred people in line who wished to get their money According to the statement issued June 29th last, this bank had resources aggregating $28,238,335. The liabilities included besides $500,000 capital stock a surplus of $2,250,000 and deposits of $25,445,625. East Greenwich, R. I., Oct. 25.-The East Greenwich branch of the Union Trust Company of Providence, did not open this morning. A notice was posted saying the bank was closed for the protection of depositors. Central Falls, R. I., Oct. 25.-The Central Falls branch of the Union Trust Company closed today after a run started. It is the only bank in the city and the depositors are mainly

3. October 26, 1907 The Barre Daily Times Barre, VT

Article from The Barre Daily Times, October 26, 1907

Click image to open full size in new tab

Article Text

Throughthe Heroic Action of Secretary Cortelyou WITH AID OF J.P. MORGAN Although One Brooklyn Bank Closed This Morning, Things Were Generally More Quiet in Financial Districts Today. New York, Oct. 26.-The Terminal Bank of Brooklyn closed this morning. It was a depository of the Williamsburg Trust company. Although there is a moderate run at the Nassau Trust company, things are generally quiet in the Brooklyn financial district. After leaving the clearing house committee, James Stillman, president of the National City bank, said there was nothing new yet about issuing clearing house certificates and it may be that the association will deem it unnecessary. The general situation is much improved. It has been saved by the heroic action of the secretary of the treasury, George B. Cortelyou, and the whole-hearted co-operation of J. P. Morgan. The institutions which closed their doors yesterday, with the sums due the depositors were: The United States Exchange bank, Harlem, $600,000. International Trust company, about $100,000. The Borough bank of Brooklyn, $4,000.000. The Brooklyn Bank, $2,300,000. Williamsburg Trust company, Brooklyn, $7,500,000. The First National bank of Brooklyn, $3,500,000. The First National bank of Brooklyn, the Williamsburg Trust company and the International Trust company were allied institutions. None of these companies had any important business connections with the larger banks which are representative of the city's financial affairs.

4. October 26, 1907 The Washington Herald Washington, DC

Article from The Washington Herald, October 26, 1907

Click image to open full size in new tab

Article Text

New York, Oct. 25.-The suspension of the International Trust Company today may cause several thousand shop girls and factory hands of Brooklyn to miss their regular weekly pay-day tomorrow. There is no money in the Brooklyn branch of the concern to meet their pay checks, and as a consequence the wage earners, it is expected, will suffer unless something is done to-morrow morning to supply the funds. The International Trust Company is a new concern recently financed by William Gow, of the advertising firm of Ward & Gow, and several officers and directors of the Brooklyn Bank and was launched on October 12 with a capital stock of $500,000 and a surplus of a like sum. The bank was taken over to-day by Clark Williams, State bank superintendent. With the suspension of payment by the International Trust Company similar action was taken by the Brooklyn bank at Clinton and Fulton streets and its branch at 601 Fulton street, and by the borough bank at 20 Court street and its branch in Bay Ridge. Both of these banks had been very recently absorbed by the International Trust Company and at a midnight meeting of the directors of the trust concern on Thursday it was decided that the lack of ready cash to meet demands by depositors would force a temporary suspension. It was less than two weeks ago that the Brooklyn bank was taken over into the International Trust Company.

5. October 26, 1907 The Washington Herald Washington, DC

Click image to open full size in new tab

Article Text

Claimed to Be Solvent. Officers of the trust company and of the two subsidiary banks announced that all three of the institutions were solvent and that no receivership would be asked for any constituent part of the trust company. Because the International Trust Company was a new concern, and consequently had no clearing house, inability to meet large withdrawals that were sure to fall to-day and to-morrow forced the suspension of payment, they said. The failure of these Brooklyn banks to meet week-end payments on the wage accounts of many Brooklyn manufacturies and department stores will probably bring about the first direct pinch of hardship on the laboring people that has been felt during the last troublous week. Both the Brooklyn bank and the Borough bank carried money for these firms' payrolls, amounting to between $30,000 and $100,000 a week.

6. November 16, 1907 Evening Star Washington, DC

Article from Evening Star, November 16, 1907

Click image to open full size in new tab

Article Text

Temporary Receivers for Banks. KINGSTON. N. Y., November 16.-Temporary receivers were appointed today for six New York banks and trust companies which recently suspended payment. The banks are the Hamilton of 125th street, New York; the Brooklyn Bank and the Borough Bank of Brooklyn, and the trust companies, the Williamsburg and Jenkins of Brooklyn and the International of New York. Application for the receivers was made by William F. Mackey for Attorney General Jackson.

7. November 17, 1907 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 17, 1907

Click image to open full size in new tab

Article Text

RECEIVERS FOR SIX BANKS Application Made on Behalf of Attorney General Jackson of New York. KINGSTON. N. Y., Nov. 16. - -Temporary receivers were appointed today for six New York City banks and trust companies which recently suspended payment The banks are the Hamilton of One Hun dred and Twenty-fifth street, New York the Brooklyn bank, and the Borough bank of Brooklyn, and the trust companies, the Williamsburg and Jenkins of Brooklyn. and the International of New York. Ap plication for the receivers was made by William F. Mackey for Attorney General Jackson. Orders to show cause why permanent receivers should not be appointed were granted and were made returnable at Albany November 30. NEW YORK, Nov. 16.-Attorney General Jackson stated this afternoon that, in his opinion, evidence of both criminal and civil liability has been unearthed in the investigation of the Borough Bank of Brook lyn and the Jenkins Trust company of Brooklyn, and that in the Borough Bank of Brooklyn there has been found evidence of illegal overloans, overdrafts, forged paper and other criminal transactions, all of which will be presented to the grand jury. In the Jenkins Trust company, the attorney general says, there, has been found evidence of illegal overloans. It is claimed by the trustees, the attorney general adds, that they knew nothing about these illegal loans made to the president of the company. The attorney general's announcement contains the statement that the investigation thus far has been confined to the Borough Bank of Brooklyn and the Jenkins Trust company.

8. November 30, 1907 New-York Tribune New York, NY

Article from New-York Tribune, November 30, 1907

Click image to open full size in new tab

Article Text

BROOKLYN BANK REPORT. Assets Greatly Overvalued, Says Temporary Receiver. The temporary receiver of the Brooklyn Bank, Bruyn Hasbrouck, will file his report to-day on the condition of that institution with Justice Betts at Albany. This report will disclose loans made on such collateral as piano rentals and leases, and loans made to church societies without the knowledge of the trustees of the societies. It will disclose that the bank has counted among its resources and assets such items as $188,959 33 of protested paper, $200,000 of paper of which the maker was also the indorser, and $77,511 of paper already charged off by the Banking Department as being of no value. R. W. Jones, jr., the late president of the Oriental Bank, is indebted. Mr. Hasbrouck will report, to the Brooklyn Bank for $110,000, directly and indirectly, and it has also been discovered, the report will state, that the Brooklyn Bank discounted a large number of bills and loans for various persons at Mr. Jones's suggestion. The makers of many of these notes were absolutely unknown to the Brooklyn Bank, and the receiver expresses the opinion that Mr. Jones can be held liable for them. The bank values its real estate at its main offices in Fulton street at $87,000. This valuation is entirely too large, the receiver will report. It values its furniture at its main offices at $22,000 and at its branch offices at Flatbush at $6,000. The receiver's valuations are $7,000 and $2,000. respectively. Another item which the bank claims as an asset is $168,076 10, secured by collateral of questionable valuation, in the receiver's estimation, and still another is $287,464 due from the International Trust Company (Brooklyn branch), which has closed its doors. Of this amount $243,000 represented stocks, bonds and securities owned by the Brooklyn Bank and delivered by the president and cashier to the secretary of the trust company. at the latter's sugContinue on second page.

9. November 30, 1907 The News-Democrat Providence, RI

Article from The News-Democrat, November 30, 1907

Click image to open full size in new tab

Article Text

RECEIVERSHIP PROCEEDINGS IN NEW YORK Albany, N. Y., Ngv. 30.-Receivership proceedings concerning three banks and three trust companies of New York city were the centre of interest in Justiee Betts' special term in the supreme court here today. Temporary receivers were named on the affidavits of Clark Williams, state superintendent of banks. Justice Be'ts named these receivers: Williamsburg Trust company of Brooklyn, Frank L. Bapst, president of the Buffalo Dredging company, bonds $300,000. Brooklyn Bank of New York, Bruyn Hasbrouck, bond $150,000. Hamilton Bank of New York, Frank White of Albany, bond $200,000. Jenkins Trust company of Brooklyn, John, Mulhall of New York, bond $200,000. Borough Bank of Brooklyn, Henry A Powell of Brooklyn and Isaac N. Cox of Ellenville, bond $100,000 each. International Trust company of the Borough of Manhattan. George Brown of New York, bond $100,000.

10. December 9, 1907 New-York Tribune New York, NY

Article from New-York Tribune, December 9, 1907

Click image to open full size in new tab

Article Text

INDICTMENTS THIS WEEK. Brooklyn Bank Inquiry May Show Results To-day. Two separate sets of indictments have been prepared by the Kings County grand jury as a result of its investigation of closed Brooklyn banking institutions last week. One of the sets will be handed down to-day. it is thought, and it was said yesterday that some of the men already indicted are those against whom some of the new indictments are drawn. The first set of indictments was prepared as a result of the investigation of the affairs of the Williamsburg Trust Company. of which Frank Jenkins, already under indictment, is the deposed president. The secend set was prepared as a result of the preliminary investigation of the Brooklyn Bank and conjointly with it of the International Trust Company. Brooklyn branch. of which William Gow. already facing five indictments, was the organizer The grand jury this week will prosecute a searching and thorough investigation of the last named institutions. It was only a few weeks before the International Trust Company closed its doors that it was announced the Brooklvn Bank had been merged with it. As a result of the failure of the International Trust Company, the appointment of receivers and of counsel for the depositors and the directors as well. and their investigations of the affairs of the two banks, a poculiar situation has arisen. The depositors are opposing the merger. They assert that it was never legally consummated, and they have announced their intention to fight any twelfth hour attempt to make the merger legal. On the other hand. the directors of the two institutions express themselves as favorable to the merger. although acknowledging that it may not have been legally brought about. They will use every effort to make it legal. The transactions of the Brooklyn Bank and the International Trust Company are interesting the grand jury, and will be carefully looked into by that body. These are The alleged "shaving of collateral." The transfer of $254,000 of stocks and bonds of the Borough Bank to the International Trust Company. which deposited said stocks and bonds with the First National Bank of Manhattan to secure 2 loan of $150,000 from that institution. From information obtained from the District Attorney's office it would appear that good collateral was put up to secure certain loans made by the Brooklyn Bank and that later. through the alleged connivance of certain persons in the bank. this collateral was removed and replaced by poorer collatteral, the "good" collateral being used, presumably. as security for more loans from other sources. This is the transaction referred to as "shaving collateral." S. S. Menken. of counsel for the Brooklyn Bank and the International Trust Company, has been working with directors of both institutions to prepare a plan to make the merger legal. It is understood that the so called merger was never really legal, because notice of the proposed merger was not published in two newspapers in Brooklyn and Manhattan at least two weeks before the stockholders voted on the question of the merger. as required by law. and because no application was made to a justice of the Supreme Court, as is also required by law. In talking of the merger Mr. Menken said: "According to the plan, the International Trust Company was to buy the assets of the Brooklyn Bank, including $1,300,000 of the depositors' money and $300,000 capital stock. It was to take over the accounts of the depositors. It should have set to pay the stockholders. but money paid to the over not aside done. $300,000 The Borough this Bank, was $500,000. was principally depositors' money. All that is necessary is to legalize the merger. Then if we get back what the Borough Bank owes US we will have $900,000 over and above all liabilities. The International Trust Company is not hampered by any bad loans. Gow has paid his $25,000 is all realizable, and have promised to loan. of both The institutions collateral directors advance money to put the plan through. W. R. Jones, jr., deposed president of the Oriental, has two small loans." It was learned yesterday that of the depositors' Sparks. chairman Frederick committee W. of twenty-five of the Borough Bank, had given Howformer president of the to the purchase of four ard help Maxwell. finance bank. hundred a note lots at Holliswood, Queens County. Both of these men were members of a syndicate formed to speculate in these lots, and each had a sixth interest in the speculation. Mr. Sparks made out a note in favor of the Borough Bank, and this note Mr. Maxwell discounted. Mr. Maxwell in his confession to the directors told them the note was good and would be paid when it fell due. Title to the lots was taken in Mr. Sparks's name and he signed a declaration of trust acknowledging that each member of the syndicate had a sixth interest in the property, Subsequently he transferred his Interest either to Mr. Maxwell or Mr. Doolittle, Mr. Gow's secretary. for at any rate Maxwell and Doolittle conveyed a third interest in the property to the bank. and this, by appraisal, will net the bank $20. 000 or $25.000 over and above the mortgage liens that are on the property, which amount to about $50,000 at least. The District Attorney's office is still receiving daily reports of the physical condition of W. R. Jones. jr., and as soon as he is well enough to testify he will appear before the grand jury. The depositors' committee of twenty-five of the Borough Bank met at the Assembly, Brooklyn, last night and discussed the report of the experts who have been examining the books of the bank during the last week. Plans were arranged for a mass meeting to-morrow night of depositors at the Columbia Theatre. THE mann arean

11. December 11, 1907 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, December 11, 1907

Click image to open full size in new tab

Article Text

RECEIVERS NAMED FOR SIX BANKS Criminal Proceedings Likely Against Officers of Two Brooklyn Institutions. New York City.-On application of Attorney-General Jackson temporary receivers were appointed for three banks and three trust companies in Manhattan and Brooklyn, and the Attorney-General, in making the announcement, stated that criminal proceedings would be begun in connection with the affairs of two of the Brooklyn concerns, the Borough Bank and the Jenkins Trust Company. In the Jenkins Trust Company, Mr. Jackson said, there were evidences of illegal overloans, one to John G. Jenkins, Jr., the president, being for $557,000. The Attorney-General made his application for the appointment of receivers to Supreme Court Justice Betts, in Kingston, N. Y. The banks and trust companies, with the receiver for each and the amounts of the bonds, are as follows: Williamsburg Trust CompanyFrank L. Bapst, $300,000. Hamilton Bank-Frank White, $200,000. Borough Bank, of BrooklynHenry A. Powell and Isaac Cox, $100,000 each. Jenkins Trust Company-John Mulhall, $200,000. Brooklyn Bank - Bruyn Hasbrouck, $150,000. International Trust CompanyGoodwin Brown, $100,000. It is asserted by the trustees of the Jenkins Trust Company that they were ignorant of the loans to Mr. Jenkins, which were in the category of brokers' loans to Jenkins Brothers, stockbrokers.

12. February 9, 1908 New-York Tribune New York, NY

Article from New-York Tribune, February 9, 1908

Click image to open full size in new tab

Article Text

ATTORNEY GENERAL VEXES RECEIVER Charles M. Higgins, one of the receivers for the Brooklyn Bank, in an open letter addressed to Attotrney General Jackson, declares that Mr. Jackson has made certain false statements regarding his connections with the Brooklyn Bank. and demands a public retraction from the Attorney General. He further intimates that If it is net forthcoming he will start legal proceedings. The statements to walch Mr. Higgins takes exception were given out in an interview by the Attorney General, among them being the declara. tion that "Higgins is not representative of Brooklyn Bank depositors." In replying, Mr. Higgins calls attention to the open meeting of depositors in Historical Hall which indorsed him as receiver, and further denies all of the Attorney Generally statements in which he is criticised.

13. March 2, 1908 New-York Tribune New York, NY

Article from New-York Tribune, March 2, 1908

Click image to open full size in new tab

Article Text

receivership and obtaining the consent of the courts to the merger with the Metropolitan Trust Company. Bankers were greatly amused yesterday at Attorney General Jackson's statement that the "powers of the State Superintendent of Banks were too great as it is," and at his criticism of the banking legislation which is at present pending at Albany. Mr. Jackson called the bill which contemplates giving the State Superintendent of Banks the right to appoint a deputy to look after suspended banks, and relieves him of the necessity of calling in the Attorney General, "a most dangerous and ridiculous piece of legislation and almost infamous in its nature." This bill in particular has received the entire support of bankers and financial experts all over the state, as it gives to the State Superintendent of Banks powers similar to those exencised by the Controller of the Currency over national banks. When a federal bank suspends the Controller of the Currency has the power to at once a receiver at a fixed salary, cannot be more than a year, appoint which $25,000 is much and in the case of all save the largest banks below the maximum figure. In the case of suspended state institutions, however, the State Superintendent of Banks-must ask the Attorney General to apply to the courts when he dereceivers for a bank. The fees of the reso are fixed by ceivers sires appointed the court, the fed- and are usually much-greater than under eral system. The temporary receiver for the Hamilton Bank. for example, received $15,000 for one month's work. while counsel received $10,000. Under the proposed legislation all this would be done away with. DIRECTORS TO ACT WITH RECEIVERS. Paul Grout. counsel for the Mechanics and Traders' Bank, said last night that the directors of the bank would act with the temporary receivers in getting the bank on its feet and open again for business as soon as possible. He said he had no intention of opposing the action of the Attorney General in having receivers appointed. Attorney General Jackson, with several of his assistants, went to Albany on Saturday night, but he is expected back at his office here this morning Charles M. Higgins, one of the receivers for the Brooklyn Bank, said yesterday he did not know there was any movement actually started to draw Governor Hughes's attention to the close personal and official association existing between Attorney General Jackson and many of the receivers for banks and trust companies in this city whom the Attorney General has been instrumental in having appointed. Mr. Higgins wasn't a bit surprised. though, at the announcement that charges might be made against M Jackson for helping his friends to good berths and fees and salaries at the expense of depositbanks and trust companies. "There's enough for such ors certainly in the material charges," just said Mr. Higgins. "The Oriental is getting about the same dose we got in the Brooklyn Bank when Bruyn Hasbrouck, of New Paltz, a friend of Jackson, was appointed a co-receiver It was bad enough to have a receiver from upstate, but, despite my protest and against the wishes of the depositors, we have had an upstate counsel, Dolson, a Jackson deputy, of course, foisted upon us. Mr. Jackson is supposed to represent the depositors of the bank, but he never uttered a word of protest against Mr. Hasbrouck handing over a contract to Dolson for $80,000 for the latter's services. I got only a snap notice of a day about this fat contract. and Attorney General Jackson got no more. although according to law he should have had eight days. Yet he has no protest So far as the Brooklyn Bank goes, Mr. Jackson's conduct certainly demands investigation."

14. May 1, 1908 New-York Tribune New York, NY

Article from New-York Tribune, May 1, 1908

Click image to open full size in new tab

Article Text

C. M. HIGGINS SUES CO.-RECEIVER. Asks for Fees Paid in Brooklyn Bank Fight Over Counsel. Suit was begun yesterday by Charles M. Higgins, one of the receivers of the Brooklyn Bank, to recover from his co-receiver, Bruyn Hasbrouck, $2,724 55. the amount of the fees paid to Higgins's lawyers in the fight which Higgins made to put Charles M. Stafford in the place of Charles A. Dolson as counsel to the receivers. Higgins says that Hasbrouck appointed Dolson counsel without his consent, thus making the contract void. Higgins also says that the 2 per cent of the assets of the bank which Hasbrouck agreed to pay Dolson as his fee was a wasteful and extravagant use of the trust funds. Dolson was later replaced by former Surrogate James C. Church and former Borough President J. Edward Swanstrom.

15. May 13, 1908 New-York Tribune New York, NY

Article from New-York Tribune, May 13, 1908

Click image to open full size in new tab

Article Text

BROOKLYN BANK AGAIN : TO OPEN WITH OLD NAME. At Least Plan of International Trust Company Seems Assured. The initial steps were taken yesterday to carry out a plan which provides for the immediate reopening of the Brooklyn Bank, the payment in full of all the depositors of that bank and the depositors of the Brooklyn branch of the International Trust Company, and the acquisition of the Brooklyn Bank by the International Trust Company through purchase by that company of all the stock of the bank. Under this plan the Brooklyn Bank, the oldest banking institution in that borough, will be completely reorganized, and will reopen with a capital stock of $300,000 and approximately $450,000 surplus. A meeting of stockholders representing $496,000 of the capital stock issue of $500,000 of the International Trust Company was held yesterday afternoon in the offices of S. Stanwood Menken, of the law firm of Philbin. Beekman & Menken, to discuss the plan which was originated by Mr. Menken and is being put through by him. These stockholders voted unanimously to adopt it, and as they own 70 per cent of the stock of the Brooklyn Bank, all that remains to be done now before it goes into effect is to have stockholders representing 30 per cent of the stock of the Brooklyn Bank approve it and vote its adoption. A meeting of these stockholders for this purpose will be held in Mr. Menken's office to-morrow. The capital stock of the Brooklyn Bank is $300,000, of which 70 per cent. or $210,000, is owned by the International Trust Company. Under the provisions of the plan the remaining stock of the Brooklyn Bank, amounting to about $90,000. is to be purchased by the trust company on a deferred payment plan. Mr. Menken has already made arrangements for the immediate resumption of business by the Brooklyn Bank under its old name and not under the name of the International Trust Company, by which it went after its supposed merging with that institution last September. The Brooklyn Bank, or the Brooklyn branch of the International Trust Company (the courts have to decide which is the proper name), closed in the early part of the late panic, owing depositors something over $1,800,000. Mr. Menken said yesterday arrangements had been made to borrow a quarter of a million dollars as soon as the resumption plan was adopted. Therefore, upon reopening the Brooklyn Bank would have, he said, the following amounts of cash to begin business and pay depositors with: $800,000 Cash on hand. approximately 250.000 Cash from proposed loan 350,000 Cash from trust company $1,400,000 Total Besides this, the bank has in its vaults over $850,000 of bills receivable, and will get through the deferred payment plan in the course of the next eighteen months over $400,000 which the Borough Bank owes the Brooklyn branch of the International Trust Company The receivers for the Brooklyn Bank have expressed their willingness to assent to and help put through this plan. "If the Brooklyn Bank stockholders agree," said Mr. Menken yesterday, "I believe we will have the bank open and doing business within two weeks." Little difficulty is expected in getting the consent of the Brooklyn Bank stockholders, as under the provisions of the plan they will receive par value for their stock although in deferred payment, while, if they force the bank's liquidation, according to one of its receivers, they will be lucky if they get anything at all for it. Under the provisions of the plan both the depositors of the Brookiyn Bank and of the Brooklyn branch of the International Trust Company will be paid in full. This will settle all question as to the legality of the so-called merger of the Brooklyn Bank with the trust company last year, which has been the subject of bitter dispute since the bank closed its doors, and is scheduled to be argued before Justice Betts, in Kingston, May 23. The consents of the depositors are unnecessary to carry out the plan, as it provides for their immediate payment in full. The receivers do not purpose to extend the stockholders indefinite time for reopening. Unless they consent to Mr. Menken's plan, one of the receivers said yesterday, it is probable that the latter will declare a 40 per cent dividend to depositors the latter part of this month, and thus settle forever the question of resumption. "Even if we are forced to liquidate the bank," said this receiver yesterday, "the depositors will get 100 cents on every dols but it will be some time before they get it all."

16. May 13, 1908 New-York Tribune New York, NY

Click image to open full size in new tab

Article Text

THE NEWS THIS MORNING. CONGRESS-Senate: The Postoffice appropriation bill, carrying $229,027,367, was passed; Mr. Rayner spoke on his resolution directing the President to order a court of inquiry into charges against Colonel William F. Stewart. House: The conference report on the naval appropriation bill was agreed to and it was announced that the currency bill would be considered on Thursday. FOREIGN.-Two schooners engaged in tortoise fishing off the Isle of Pines have been seized, a revenue cutter firing a shot into one Secreof them before she would heave to. tary Taft left Colon for Charleston on the Prairie, having concluded a successful trip as Inhabitants peacemaker on the isthmus. of the village of Belleghem, near Courtrai, attacked and killed a man caught robbing a chapel Ambassador Reid presided at a luncheon given by the Pilgrims in London in Russian prishonor of Edwin A. Abbey. oners at Simferopol killed four officials and Judge Rodey dismissed the suit escaped. of the American Railway Company to get possession of lands occupied by army, navy and lighthouse services in Porto Rico. Great Britain, Russia. France and Italy have decided to withdraw their troops from Crete, peaceful Prince conditions prevailing in the island. Ito, in an interview at Seoul. said that Japan's object in reforming the system of government in Corea was to make that country an independent ally of Japan. DOMESTIC.-The men of the Atlantic fleet were entertained at a reception and ball by the exclusive California Club of San Francisco. Governor Hughes was welcomed by a crowd at Washington, where he went to attend the conference of Governors and the President's dinner The body of George Clinton, first Governor of New York, was exhumed in Washington and will be reburied in Kingston, N. Y. The welfare committee closed its conference by effecting a reorganization as the Woman's Department of the National Civic Federation; Mrs. Medill McCormick. of Chicago, was A resolution presented elected president. at the Methodist Episcopal General Conference at Baltimore provides for a twelve-year term Two robfor bishops and no re-election. bers, dressed as brakemen, attacked the express messenger on a Great Northern train between Seattle and Vancouver, and looted the strong box of a sum estimated at between $1,000 and $10,000 Gustave CITY.-Stocks were weak. Lindenthal, under whose directions the original plans for the Blackwell's Island Bridge were made. said he would not have approved the changes made. Governor Hughes said he could not serve even were he elected VicePresident The initial steps were taken in a plan to reopen the Brooklyn Bank under its old name, but as the property of the International Trust Company. The floor sagged beneath one hundred petitioners in Queens BorNew York ough Hall and caused a panic. Life records showed contributions of $15,000 to the Merchants' Association at the insistence of William F. King. The Knickerbocker Trust Company announced it would pay depositors two instalments. falling due later, under the resumption agreement, on June 1. President Hepburn of the Chase National Bank said he looked for a period of unprecedented prosperity. The Denver & Rio Grande sold $15,000,000 three-year notes to local bankers to finish the Western Pacific construction work. THE WEATHER-indications for to-day: Fair and cooler. The temperature yesterday: Highest, 81 degrees: lowest, 64.

17. May 23, 1908 New-York Tribune New York, NY

Article from New-York Tribune, May 23, 1908

Click image to open full size in new tab

Article Text

S. S. MENKEN MUST SHOW CAUSE. Fight to Permit Meeting of Brooklyn Bank and International Trust Boards. S. Stanwood Menken, promoter of a plan for reopening the Brooklyn Bank and the International Trust Company, was directed yesterday to show why an order should not be issued to show cause why the directors of the two institutions should not be permitted to meet. The object is to give the two boards an opportunity to vote the adoption of the proposed plan. Before the plan can be adopted every stockholder of the International Trust Company and every minority stockholder of the Brooklyn Bank must agree to it. The stockholders of the trust company have already signed agreements, and up to last night all the minority stockholders of the Brooklyn Bank with the exception of stockholders owning or controlling 150 shares had also agreed to it. Mr. Menken expects to get the consents of these shares either to-day or the first part of next week. Unless this is done the plan may fall through, es one of the two receivers for the Brooklyn Bank has expressed himself as being against the proposed plan and the other, while indorsing it, has limited the time in which its advocates must consummate it.

18. June 13, 1908 New-York Tribune New York, NY

Article from New-York Tribune, June 13, 1908

Click image to open full size in new tab

Article Text

BROOKLYN BANK MAY OPEN JULY 1. International Trust Company Depositors To Be Paid in Full. Unless present plans miscarry the Brooklyn Bank, which is at present in the hands of receivers, will open for business on or about July 1, and at the same time the depositors of the suspended International Trust Company, at No. 209 Broadway, which is closely allied with the Brooklyn Bank, will be paid in full by the latter institution. At a special meeting of the stockholders of the trust company yesterday a plan was approved by which all its assets will be turned over to the Brooklyn Bank as part of the reorganization scheme of the latter institution. These assets, it is understood, amount to some $750,000. S. Stanwood Menken, of the firm of Philbin, Beekman & Menken, who has worked out the plan of reorganization for the Brooklyn Bank and the liquidation of the International Trust Company, said: The stockholders of the International Trust Company are given an option to purchase stock in the Brooklyn Bank at par in two years. The plan is favorably considered by the stockholders of the Brooklyn Bank, and all save ten of its shares have been voted in approval of the scheme, and these. it is believed, can be obtained. The Brooklyn Bank stockholders and directors, late this afternoon, after a meeting unanimously approved the scheme. The Brooklyn Trust Company has been made a depository of the shares which, in furtherance of the plan, must be deposited. A loan of $600,000 to the Brooklyn Bank has been arranged. Where this is to be got or from 'hom I am not at liberty to say. Thus, with the funds there, cash and bonds salable on the Stock Exchange which are equal to cash, there will be in sight $1,725,000, against joint liabilities over assets of $1,775,000. This plan is, however, subject to the approval of the court and the banking department.

19. June 20, 1908 New-York Tribune New York, NY

Article from New-York Tribune, June 20, 1908

Click image to open full size in new tab

Article Text

TO HEAD BROOKLYN BANK D. O. Underhill Chosen New President-Resumption Monday. D. O. Underhill, formerly an assistant cashier of the Fourth National Bank, will be the new president of the reorganized Brooklyn Bank when it reopens Monday. Nelson G. Ayres, formerly the first vice-president of the defunct Oriental Bank, has been chosen as the first vicepresident. Mr. Underhill succeeds Henry E. Hutchinson, president of the Brooklyn Bank when it closed its doors in the panic last fall after its supposed merging with the International Trust Company. Under the terms of the plan whereby the Brooklyn Bank is enabled to reopen and stands ready to pay both its depositors and those of the International Trust Company in full on demand, all of the directors of the International Trust Company have tendered their resignations. The former directors of the Brooklyn Bank will hand in theirs not later than this afternoon, and a new board will be elected. Ludwig Nissen, a former vice-president of the Oriental Bank, will be on the new board. The receivers, Bruyn Hasbrouck and Charles M. Higgins, will turn over the assets of the bank to-day and on Monday to its officials. Mr. Hasbrouck said yesterday that the bank would open for business at noon on Monday. Charles M. Stafford, counsel for the stockholders' committee of the Brooklyn Bank, and also for Charles M. Higgins, has rendered a bill for $14,000 for his services. When Justice Betts approved the plan for resumption he made no allowance for Mr. Stafford. The Brooklyn Bank will for the time be administered by an advisory board, consisting of General Brayton Ives, president of the Metropolitan Trust Company; J. G. Cannon, vicepresident of the Fourth National Bank, and Erskine Hewitt.

20. June 24, 1908 The Morning Journal-Courier New Haven, CT

Article from The Morning Journal-Courier, June 24, 1908

Click image to open full size in new tab

Article Text

BROOKLYN BANK REOPENS. New Officers and Advisory Committee in Charge. New Yrk, June 23.-The reopening of the Brooklyn bank, one of the oldest institutions in that borough, which suspended with half a dozen others last fall, took place today. Opening under a policy of payment in full on demanr, and with an allowance of interest on all deposite during the term of suspension, the event today was a popular one, and attended by old friends of the institution, who wished the bank prosperity under its new management. The bank's exterior and interior were hung with flags and bunting.

21. June 24, 1908 The Lake County Times Hammond, IN

Article from The Lake County Times, June 24, 1908

Click image to open full size in new tab

Article Text

THE CREAM OF THE Morning News Second day of intense heat claims an increased toll of details and postrations, but relief is promised today. Several arrests are near in the federal grand jury's investigation of corporations controlled by Rhodus brothers. Late Michael C. McDonald's estate tied up by a restraining order issued by Judge Landis. Juror in Northwestern Railroad sondemnation suit tells court of remark attributed to foreman of the jury that some one might get a job if a favorable verdict was returned. Householders are puzzled by the news system of street numbering adopted by the council. James S. Sherman, republican nominee for vice president, taken to Cleveland hospital for treatment, improves and operation is deemed unnescessary. Secretary Taft attends the Yale-Harvard ball game and is given an enthusiastic reception by the alumni. Hitcheock declined to be considered for national committee chairman to save Taft from embarrassment because of Vory's petition. W. J. Bryan Cays the republican platform is a silent repudiation of President Roosevelt's policies and is a victory for the standpatters. Georgia delegation to national convention starts a boom for Colonel J. Hamilton Lewis for vice president. William B. Leeds, former president of the Rock Island railroad, dies suddenly in Paris. Brooklyn bank of New York reopens its doors, marking another step toward obliterating traces of the panic. Grain values have a slight backset under the leadership of wheat; provisions steady to firm; cattle and hogs higher; sheep strong. American Car and Foundry company's report due tomorrow is expected to show big profits. Western railroads decide to cancel passes issued to steamship officials. Illinois state board of fire underwriters in session at Delavan, Wis. Charles Evans jr. of Evanston Academy is elected president of Western Inter-scholastic association. Meets Gordon Yule in finals at Skokie today.

22. July 2, 1908 Lewiston Evening Teller Lewiston, ID

Article from Lewiston Evening Teller, July 2, 1908

Click image to open full size in new tab

Article Text

BANKS REGAIN THEIR STANDING INSTITUTIONS THAT CLOSED DOORS IN PANIC ARE PAYING OBLIGATIONS IN FULL UNDER TERMS OF REORGANIZATION. NEW YORK, July 2.-Eight months after the passing of the financial troubles of last fall, the depositors of the dozen banks and trust companies which closed their doors have received their money, at least in part, or in the case of a few which have not reopened or have gone into liquidation, are about to receive it. The Hamilton bank, which was one of the first institutions in which the attorney general's department intervened to reopen, has already anticipated all of its deferred payments, which, under the original plan, were to have extended into November. The Knickerbocker Trust company, which was one of the largest of the suspended institutions that reopened, like most of the others, under a deferred payment plan, anticipated the first two deferred payments on June 1, paying then 10 per cent, of which one-half, under the original plan, would not have been paid until September. The Oriental bank, which was one of the four to close its doors in February, paid its depositors on the full preliminary to liquidation. One of the other three which then suspended. the receiver of the National Bank of -North America has paid depositors 50 per -cent in dividends, and the receiver of the New Amsterdam National has paid 25 per cent. The Mechanics' and Traders' depositors have practically agreed to s deferred payment plan, which will be put in force when the percentage of assenting depositors is brought up to 90. Of the Brooklyn banks which elosed, the Jenkins Trust company, reorganized under the name of the Lafayette Trust company, has anticipated payments; the Borough 'hank and the Homa bank have reopened, and the Brooklyn bank and the International Trust company have reorganized.

23. July 2, 1908 Lewiston Evening Teller Lewiston, ID

Click image to open full size in new tab

Article Text

BANKS REGAIN THEIR STANDING NEW YORK, July 2.-Eight months after the passing of the financial troubles of last fall, the depositors of the dozen banks and trust companies which closed their doors have received their money, at least in part, or in the case of a few which have not reopened or have gone into liquidation, are about to receive it. The Hamilton bank, which was one of the first institutions in which the attorney general's department Intervened to reopen, has already anticipated all of its deferred payments, which, under the original plan, were to have extended into November. The Knickerbocker Trust company, which was one of the largest of the suspended institutions that reopened, like most of the others, under in deferred payment plan, anticipated the first two deferred payments oh June 1, paying then 10 per cent, of which one-half, under the original plan, would not have been paid until September. The Oriental bank, which was one of the four to close its doors in February, paid its de-: positors on the full preliminary to liquidation. One of the other three which then suspended, the receiver of the National Bank of North America has paid depositors 50 per cent in dividends, and the receiver to: the New Amsterdam National has paid 25 per cent: The Mechanics' and Traders' depositors have practically agreed to R. deferred payment plan, which will be put in force when the percentage of assenting depositors is brought up to 90. Of the Brooklyn banks which closed. the Jenkins Trust company, reorganized under the name of the T.afavette Trust company. has anticinated payments: the Borough bank and the Home bank have reonened. and the Brooklyn bank and the International Trust company have reorganized.

24. July 3, 1908 The Julesburg Grit-Advocate Julesburg, Big Springs, CO

Article from The Julesburg Grit-Advocate, July 3, 1908

Click image to open full size in new tab

Article Text

Splendid Recovery of Banks Forced to Close by Panic 1 New York. June 30.-Eight months t after the passing of the financial troubles of last fall, the depositors of the dozen bank and trust companies which closed their doors have received their money at least in part, or in the case of the few which have not yet reopened or have gone into liquidation are about to receive it. The Hamilton bank, which was one of the first of the institutions in which the attorney general's department intervened to reopen, has already anticipated all of its deferred payments, which under the orginal plan were to have extended into November. The Knickerbocker Trust company, e which was the largest of the suspended institutions and reopened like 1 most of the others under a deferred payment plan, anticipated the first two deferred payments on June 1, paying then 10 per cent, of which one-half, under the orginal plan, would not have been paid until September. The Oriental bank, which was one of the four to close its doors in February, paid its depositors in full preliminary to liquidation. Of the other three which then suspended, the receiver of the National Bank of North America has paid depositors 50 per 1 dent in dividends and the receiver of the New Amsterdam National has paid 25 per cent. The Mechanics and Traders depositors have practically agreed to a de1 ferred payment plan, which will be put in force when the percentage of assenting depositors is brought up to 90. Of the Brooklyn banks which closed, the Jenkins Trust company, reorganized under the name of the Lafayette Trust company, has anticipated payments; The Borough bank and the Home bank have reopened, and the Brooklyn bank and the International Trust company have reorganized.