Oriental Bank (New York, NY)

Episode Information

Episode UID
1482476091297
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
148247609 hash
Start Date
January 30, 1908
Location
New York, New York (40.714, -74.006)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2a048c7c40c6cc53

Response Measures

None

Description

The bank successfully withstood a run on Jan 30, 1908, but failed to open on Jan 31 due to clearing house debit balances and the withdrawal of support from other institutions. While it 'reopened' briefly in March to pay depositors in full via the Metropolitan Trust Company, this was a liquidating arrangement and the bank did not resume normal operations.

Events (4)
1. January 30, 1908 Run
Cause
Local Banks
Cause Details
Runs triggered by the closing of the New Amsterdam National and the Mechanics and Traders' Bank.
Measures
President Hugh Kelley announced that twelve other institutions had come to the aid of the bank.
Newspaper Excerpt
There was quite a heavy run on the Oriental bank and its Canal street branch during the day, but all depositors were promptly paid.
Source
newspapers
2. January 31, 1908 Suspension
Cause
Macro News
Cause Details
Inability to meet clearing house debit balances and continued drain on resources following the Panic of 1907.
Newspaper Excerpt
The Oriental Bank, on which a run of depositors was started yesterday, did not open for business today. A notice was posted on its doors announcing that the institution was closed by order of the State Superintendent of Banks.
Source
newspapers
3. February 28, 1908 Receivership
Newspaper Excerpt
Attorney General Jackson... instituted this action to dissolve the defendant on the ground that it was insolvent... On that day... he applied to the court ex parte for the appointment of temporary receivers.
Source
newspapers
4. March 23, 1908 Other
Newspaper Excerpt
The Oriental bank reopened its doors to its depositors again today... after which they will be paid in full. Announcement was made today by counsel for the bank that the payments to all depositors probably will be completed within two weeks. This was a liquidation process via Metropolitan Trust Company, not a resumption of business as a going concern as noted in Article 22: 'the Oriental... will probably go out of existence after the assets are liquidated.'
Source
newspapers

Newspaper Articles (24)
1. January 30, 1908 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 30, 1908

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New York, Jan. 30.-Bank examiners took active charge today of the affairs of the New Ainsterdam National bank and the Mechanics and Traders' bank, a state institution, both of which closed their doors yesterday. The banks were included in the MorseHeinze-Thomas chain of banks, and after closing the National Bank of North America a few days ago, there had been what practically amounted to runs upon them. Both of them were still unable to take up their allotment of the clearing house certificates, and when the renewed drain upon their resources began the clearing house authorities declined to further extenc their credit. Fearing heavier withdrawals today, the officials of both banks decided last night to close their doors today. As a result of the closing of these banks, several others not in the important class met heavy withdrawals of deposits this morning. It is not, anticipated that the closing of the two banks will have any effect upon; the general banking situation in the city, as both of them had been going thru gradual liquidation for the last few months. There was quite a heavy run on the Oriental bank and its Canal street branch during the day, but all depositors were promptly paid. President Hugh Kelley announced that twelve other institutions had come to the aid of the bank, and that he hoped to be able to withstand the drain. The Oriental bank withstood the run successfully. When the doors close for the day depositors had disap peared.

2. January 30, 1908 Lewiston Evening Teller Lewiston, ID
Article from Lewiston Evening Teller, January 30, 1908

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SMALL BANKS HAVE A RUN Depositors All Met, However, With Prompt Payment New York, Jan. 30.-As the result of closing two banks yesterday, smaller institutions met with heavy withdrawals today. One of these was the Oriental bank, where depositors were paid promptly. President Hugh Ke'ley announced that 12 other institutions had come to the aid of the bank and he hoped to be able to withstand the drain.

3. January 31, 1908 The Evening Star and Newark Advertiser Newark, NJ
Article from The Evening Star and Newark Advertiser, January 31, 1908

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ORIENTALBANK CLOSES ITS DOORS Director Assures Depositors That No One Will Lose a Cent. NEW YORK, Jan. 31.-The Oriental Bank, on which a run of depositors was started yesterday, did not open for busipes today. A notice was posted on its doors announcing that the institution was closed by order of the State Superintendent of Banks. The Oriental is a State bank having a capital stock of $750.000. According to its last statement It owed to individual depositors $7,576,811, and to banks, bankers and brokers $3,477,252. It had a surplus fund of $912,000 and undivided profits of $303,947. G. S. Leonard, a State bank examiner. was piaced in charge of the institution this morning. A branch of the o dental Bank at 122 Bowery also was closed. Twelve of the leading financial Institutions of the city volunteered yesterday to assist the d'stressed institution to the total extent of $1,000,000 In cash provided the directors would become individually responsible for the loan. The majority of the dilectors agreed to this, but there were some amoug their number who were unable to do so, and the plan failed. The directors at a mee ing this mor ing decided to place the affairs of the bank in the hands of the State Banking Department. Charles E. Levy, one of the directors. announced that none of the depositors would suffer any loss in consequence of its closing.

4. January 31, 1908 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, January 31, 1908

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ANOTHER NEW YORK BANK IN TROUBLE RUN IS MADE ON THE ORIENTAL BANK, A STATE INSTITUTION, AND THE PRESIDENT HOPES TO WEATHER THE STORM. New York, January 30.-President Hugh Kelly of the Oriental bank, a state institution, which withstood a run today. gave out a statement tonight that he believed the bank would open tomorrow for business. A meeting of the directors will be held early tomorrow morning, he added, at which the question of opening will be definitely determined. The announcement was made after a meeting of the president and several of the directors of the Oriental bank at the former's home. Following the closing last night of the New Amsterdam National, and the Mechanics and Traders, a state bank, there was a run on the Oriental bank during the day, which it successfully withstood. All depositors were paid promptly during the day and it was given out at the close that the bank would be able to secure all the assistance necessary to tide it over the run, as it was understood that friends of President Kelly had come to his aid with $1,000,000, and that he would be able to secure further assistance if needed from the clearing house. Just before midnight President Kelly said: "I am unable to state tonight other than my personal belief, which is that I think the bank will open tomorrow morning for business, but the meeting of the directors of the banking house will decide the matter one way or the other. Much will depend on the bank's clearing house debit tomorrow morning." Several depositors who had not been paid off at the close of the banking hours today had representatives waiting in line outside the bank's doors throughout the night tonight to keep their places for them. The temperature hovered around 5 degrees above zero and the waiters suffered severely from the cold. The Oriental bank is a state institution, capitalized at $750,000 and previous to the panic last fall carried individual deposits of $7,159,000, but this has been largely reduced during and since the panic.

5. January 31, 1908 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, January 31, 1908

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STOOD A RUN I Oriental Bank Stood Shock of a Run Successfully Yesterday I New York, N. Y., Jan. 30.-President Hugh Kelley of the Oriental bank, a state institution which withstood a run today, gave out a statement tonight that he believed the bank would open tomorrow morning for business. Following the closing last night of the Amsterdam National and Mechanics & Traders State bank, there was a run on the Oriental bank during the day, which it successfully withstood. It was given out that the bank would be able to secure all assistance necessary.

6. February 1, 1908 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, February 1, 1908

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BANK CLOSES DOORS THE ORIENTAL OF NEW YORK IN TROUBLE. Twelve Leading Financial Institutions Offered to Help Tide Bank Over, But Directors Declined to Accept Tender. New York, Jan. 31.-The Oriental Bank, on which a run of depositors was started yesterday, did not open for business today. A notice was posted on its doors announcing that the institution was closed by order of the State Superintendent of Banks. The Oriental is a State bank, having a capital of $75,000. According to Its last statement It owed to individual depositors, $7,576,811. and to banks, bankers and brokers, $3,477,252. It has a surplus fund of $912,000 and undivided profits of $303,947. G. S. Leonard, a. State bank examiner, was placed in charge of the institution this morning. A line of depositors was formed in front of the main office at Broadway and John Street at an early hour today and when the hour for opening arrived, there were about seventy-five depositors In line, some of whom had already been standing for several hours in the extreme cold. As soon as the closing was announced this line melted away. The recent troubles of the Oriental date from the failure of the Borough Bank of Brooklyn and the International Trust Company in October last. The Oriental was a depository for the capital stock of the trust compony, when 16 was organized by W M. Gow and others law When Borough Bank closed It was discovered that the Oriental Bank had loaned at $25,000 and it was asserted that this was. returned to the Oriental as part of the capital stock of the International Trust Company. Richard W. Jones, Jr., President of the Oriental Bank retired in November, and Hugh Kelly, a well-known commission merchant, was elected President. Twelve of the leading financial institutions of the city volunteered yesterday to assist the distressed institution to the extent of $1,000,000. in cash, provided the directors would become individually responsible for the loan. The majority of the directors agreed to this, but there were some among their number who were unable to do so, and the plan failed. The directors this morning decided to place the affairs of the bank in the hands of the State Banking Department. There was a debit balance of $949,000 against the Oriental Bank in the clearing house today. Inability to meet this demand and satisfy the deposits at its doors precipitated the closing of the offices. Depositors of one of the smaller State banks in Brooklyn started a run to withdraw their deposits at the opening hour today. There were about thirty in line when the tellers began to pay and most of the accounts withdrawn were small. Officers of the Institution said the larger depositors were standing by them, and that they would be able to stand the run.

7. February 1, 1908 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, February 1, 1908

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ORIENTAL BANK CLOSED. Another New York Institution Suspends Business. New York, Feb. 1.-The Oriental bank, on which a run of depositors was started Thursday, has suspended. A notice was posted on its doors announcing that the institution was closed by order of the state superintendent of banks. The Oriental is a state bank having a capital stock of $750,000. According to its last statement it owed to individual depositors $7,576,811 and to banks, bankers and brokers $3,477,252. It had a surplus fund of $912,000 and undivided profits of $303,947. G. S. Leonard, a state bank exaininer, was placed in charge of the institution. A branch of the Oriental bank at 122 Bowery also was closed. The recent troubles of the Oriental date from the failure of the Borough bank of Brooklyn and the International Trust company in October last. The Oriental was a depository for the capital stock of the trust company when it was organized by William Gow and others last fall. When the Borough bank closed it was discovered that the Oriental bank had loaned it $250,000 and it was asserted that this was returned to the Oriental as part of the capital stock of the International Trust company.

8. February 2, 1908 Gainesville Daily Sun Gainesville, FL
Article from Gainesville Daily Sun, February 2, 1908

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NK CLOSES DOORS tatal Bank of New York City Suspends Business. CHARGE BANK EXAMINER is a State Institution and Its Foubles Date from the Failure of Other Institutions in October bet Year. ew York, Feb. 1.-The Oriental s, on which a run of depositors started Thursday, did not open business Friday. notice was posted on its doors an neing that the institution was ed by order of the state superinTent of banks. he Oriental bank is a state bank, ing a large capital. According to last statement it owed to individulepositors $7,576,311 and to banks, kers and brokers $3,477,252. It had urplus fund of $912,000 and undividprofits of $803,947. i. Leonard, a state bank examiner, 8 placed in charge of the institua. 1 line of depositors was formed in nt of the main office at Broadway a John street at an early hour and en the hour for opening arrived are were about 75 depositoss in e ,some of whom had already been inding for several hours in the exme coid. As soon as the closing 8 announced this line melted away. The recent troubles of the Oriental te from the failure of the Borough nk of Brooklyn, and the InternationTrust company in October last. The Oriental bank was a depository the capital stock of the Trust comny when It was organized by W. M. 1 W and others last fall. When the rough bank closed It was discoved that the Oriental bank had loanit $250,000, and it was asserted at this was returned to the Oriental part of the capital stock of the InA enational Trust company. 1 Richard W. Janes, Jr., president of e Oriental Bank, retired in Novem05 x, and Hugh Kelly, a well known mission merchant was elected prea. ent. A Twelve of the leading financial inI Itutions of the city volunteered on hursday to assist the distressed inItution to the extent of $1,000,000 o cash. provided the directors would t ecome individually responsible for te loan. The majority of the direcrs agreed to this, but there were n ome among their number who were nable to do so, and the plan failed. the directors at a meeting Friday de. 6 Wed to place the affairs of the bank the hands of the state banking de et artment.

9. February 5, 1908 The Columbus Journal Columbus, NE
Article from The Columbus Journal, February 5, 1908

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BRIEF NEWS NOTES FOR THE BUSY MAN MOST IMPORTANT EVENTS OF THE PAST WEEK TOLD IN CONDENSED FORM. ROUND ABOUT THE WORLD Complete Review of Happenings of Greatest Interest from All Parts of the Globe-Latest Home and Foreign Items. After waiting for nearly 12 hours for the jury in the Thaw case to report, Justice Dowling ordered the doors of the jury room locked for the night. It was the general opinion that the jury would not agree on a verdict. President Roosevelt transmitted to congress what is considered the "warmest" and best message he has written since he entered the White House. It urged re-enactment of an employers' liability law, dealt with the abuse of the injunction in labor cases, asked for laws to secure better federal control of corporations engaged in interstate commerce, scored the high officials of the Santa Fe and the Standard Oil company in connection with rebating, flayed the great law-breaking corporations that have been attacking the administration and vigorously repelled the charges that the policies of the president have been the cause of business depression. Republicans and Democrats alike in the house of representatives wildly cheered President Roosevelt's message. W. J. Bryan in an interview praised it highly, and Chancellor Day of Syracuse university denounced it as rant, slander and vituperation. The American battleship fleet entered the Strait of Magellan and anchored for the night in Possession bay. Six persons were killed outright by a cyclone which laid waste a strip of farming country three-quarters of a mile wide and several miles long just north of Wesson, Miss. Intense cold and heavy snowfall were reported from many points in the northwest. J. S. Kiehle, a student from Minneapolis, lost his life in a fire that destroyed the Alpha Tau Omega fraternity house at Cornell university, Ithaca, N. Y. The Hamilton Tourist hotel at White Springs, Fla., was burned, with several cottages. Guests barely escaped with their lives. The loss is $100,000. James and Charles Lipsy, brothers, of Raymond, III., committed suicide with the same revolver. A credit of $5,000,000 was received from New York by the Hungarian Discount and Exchange bank at Buda Pest, for the account of the Count and Countess Laszlo Szechenyl. Speaker John N. Cole of the Massachusetts house of representatives was Indicted by the Essex county grand jury on a charge of violating the public statutes in requesting a reduced rate of fare on the Boston & Maine railroad for a large number of students. While walking on the thin ice which had formed in the Hudson off Nyack, N. Y., Evans Steele, aged 21; Hans Kraft, 12, and Harold Dixon, 11, broke through and were drowned. Dr. Andrew W. Riley, professor of practice of medicine of Creighton Medical college, Omaha, Neb., died of blood poisoning caused by infection received from an erysipelas patient. The Rock Island railroad station at Topeka, Kan., was destroyed by fire. Fire in Bluefield, W. Va., destroyed eight business houses, the railroad Y. M. C. A. building and three residences. At Beaver Falls, Pa., Vella Mylie, aged 17, daughter of Rev. and Mrs. R. C. Mylie of Wilkinsburg, Pa., and Robert Patterson, aged 22, of New Alexandria, Pa., students at Geneva college, were drowned while skating. Gov. Charles E. Hughes, whose nomination for the presidency by the Republican national convention in Chicago next June is being urged by the New York county committee and other Republican county committees in New York state, made open declaration of his views of national issues and principles. It was announced that steamboat passenger rates on the upper lakes will be advanced this year. The Oriental bank of New York, capitalized for $750,000. closed its doors after a run. Five men were injured, three of them seriously, by an explosion in the shrapnel department at the United States arsenal in Philadelphia. The Michigan constitutional convention rejected the public utilities commission plan. United States Lighthouse Inspector Olin N. Wexel of Chicago was killed by a switch engine while he was walking on the railroad tracks at Muskegon, Mich. An old Roman coin has been dug up at Springfield, Mass., which is discovered to be worth $1,500. John C. Hubinger, formerly one of the richest men in Iowa and inventor of elastic starch and founder of the largest independent starch works, died of pneumonia in Keokuk, la. Dr. Gustav E. Karsten, head of the department of modern languages and professor of German at the University of Illinois, died at his home in Urbana. Gen. Charles H. Howard, brother of Maj. Gen. O. O. Howard. U. S. A., died in his home at Glencoe, a suburb of

10. February 7, 1908 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, February 7, 1908

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America, the New Amsterdam bank and the Mechanics and Traders'. The Morse-Heinze-Thomas connection with these banks had weakened public confidence, and it was feared that runs would be made which the institutions could not meet. Therefore as a safeguard they were placed in the hands of the federal banking authorities. All are said to be solvent, and it was expected that depositors would be paid in full and that the banks would be able to resume business in a short time. After withstanding a run on the previous day and fearing a continuance, the directors of the Oriental bank decided to close its doors and turn the bank over to the state banking officials. The reason for this action was the disclosure at the clearing house of a debit balance of $939,000. # Steel Trust's Big Earnings. Despite the unfavorable showing of the last quarter of the year, the records of the steel trust show that its profits for 1907 were $160,984,477, which is over $6,000,000 in excess of the previous high water mark, reached in 1906. The October earnings, immediately preceding the financial and industrial disturbance, were the largest in the history of the corporation. The directors have declared dividends for the last quarter of the year of 1¼ per cent on the preferred and one-half of 1 per cent on the common stock. The first five years of the profit sharing plan of the trust have nearly closed, and it is reported in Wall street that those of its employees who have continuously held the preferred stock purchased when the plan was first announced in 1903 will receive an extra dividend of 65.4 per cent. # McCurdy Laughs at Suits. Richard A. McCurdy, former president of the Mutual Life Insurance company, who has spent two years in Europe, recently returned to his home in Morristown, N. J. When asked about the suits for the restitution of several million dollars which the management of his old company had brought against him he laughed and said: "I have lawyers, and they will take care of the suits. They are not worth talking about. I am seventy-three years old. The real question is, Which will last the longer, the suits or myself?" # Pittsburg Exchange Opens. The Pittsburg Stock Exchange, closed since Oct. 23 last, opened for business Jan. 27. There was a tendency on the part of the brokers to withhold sales, and only 271½ shares changed hands. The reopening of the exchange has already restored confidence to a notable degree. # Morse Lines Ask Receivership. In order to prevent various creditors from applying for a receivership on their own account the controlling interests and the bondholders' committee of the Consolidated Steamship lines, the Charles W. Morse $120,000,000 combine, have applied for a receiver for the Consolidated and the two weakest of its subsidiary lines, the Metropolitan and Eastern Steamship companies. These proceedings do not affect the Mallory, Clyde, New York and Porto Rico and New York and Cuba lines, which are also subsidiaries of the Consolidated. # Morgan Takes More Bonds. The New York city officials have decided to sell $50,000,000 in bonds, having arranged with J. Pierpont Morgan for the underwriting of the issue. It is expected that these bonds will be put on the market in a few days. Their proceeds will be used in carrying out needed public improvements.

11. February 21, 1908 New-York Tribune New York, NY
Article from New-York Tribune, February 21, 1908

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MAY TAKE ORIENTAL NEW LIQUIDATING AGENT. Metropolitan Trust Will Probably Save Bank from Receivership. The Metropolitan Trust Company, of which Brayton Ives is president, it was learned last night, will probably take over the suspended Oriental Bank in the near future and liquidate its assets for the benefit of depositors and stockholders. Hugh Kelly, president of the Oriental, is making heroic efforts to have the institution taken over and liquidated by some strong bank or trust company, so that the depositors may be paid off at once and not have to undergo the long and expensive process of a receivership. A week ago Mr. Kelly felt sanguine that the United States Mortgage and Trust Company would take over the Oriental and liquidate its assets. but some slight hitch is understood to have occurred when the negotiations were all but completed, with the result that the deal has been called off, greatly to the disappointment of the Oriental's depositors. Nothing daunted by this failure, however, Mr. Kelly has kept on looking for a liquidating agent, and now it is believed that the Metropolitan Trust Company will take up the task. The draft of a plan is understood to be all prepared and will soon be presented to Clark Williams, State Superintendent of Banks, for his approval. Control of the Mobile, Jackson & Kansas City Railroad, in which several of the Oriental Bank directors were heavily interested, passed a few days ago to the Metropolitan Trust Company. At a special meeting of the directors of the railroad, R. W. Jones, jr., former president of the Oriental Bank, and Charles E. Levy, a director in the Oriental, resigned and were replaced by George R. Sheldon and John W. Simpson, who are directors in the Metropolitan Trust Company. Alexander McDonald, who is a director of the Oriental, is also a member of the railroad's board. Brayton Ives, the president of the Metropolitan Trust Company, was elected chairman of the Mobile, Jackson & Kansas City board several weeks ago. The deposits of the Oriental amounted to $4,465,537.33 when the bank closed its doors. on January 29. Its surplus at this time was $788.81088, and it owed the Clearing House $1.751,351 28 for outstanding loan certificates. Its capital stock is $750,000. At the time the bank suspended President Kelly announced that it was perfectly solvent. and this statement has been borne out by examinations of the assets made since then. The bank is at present in the hands of the State Banking Department. G. S. Leonard. a state bank examiner. is in charge. The Metropolitan Trust Company, at No. 49 Wall street, has a capital of $2,000,000. a surplus of $7,345,150. and deposits of $23,747,753. Its stock is quoted at 540 bid.

12. March 6, 1908 Pine Bluff Daily Graphic Pine Bluff, AR
Article from Pine Bluff Daily Graphic, March 6, 1908

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Fraud Charged Against Bankers Hearst News Special to the Graphic. New York, March 5.-Frauds and crimes are alleged in the conduct of the affairs of the Oriental Bank by a board of examiners. It is declared that amounts running into thousands of dollars were taken from the institution and charged to "profit and loss." For fear of exposure there would have been greater irregularities, it is alleged. The bank is in a receiver's hands.

13. March 7, 1908 The Evening World New York, NY
Article from The Evening World, March 7, 1908

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ORIENTAL BANK TO OPEN MONDAY DESPITE JACKSON Restraining Order Brought to the County Clerk Five Minutes Late. Although the Oriental Bank probably will open its doors Monday. AttorneyGeneral Jackson indicated by his action to-day that he has not given up the fight to keep it closed. When Justice O'Gorman to-day signed the order vacating the receivership obtained by the State's attorney. a representative of the latter tried to file a notice of appeal. Owing to a peculiar state of circumstances. the County Clerk declined to receive the notice and it is likely that the Attorney-General will reappear with it early Monday morning. The restraining order which Mr. Jackson proposes to apply. however. will not act as a stay, and the Oriental may be placed in the position of opening with a sword suspended over its head. Justice O'Gorman signed the order after a conference in chambers with Attorney David McClure and Attorney-General Jackson As soon as the order was taken to the County Clerk's office a representative of the Attorney-General rushed into the office and threw down a paper. Notice Five Minutes Late. "What's this?" asked a clerk. "It's a notice of appeal in the Oriental case," said Mr. Jackson's man. "Well, it's just five minutes too late." said the celrk. glancing at the clock "It's five minutes after twelve and we close at 12 o'clock" The Attorney-General's assistant persisted. but the County Clerk was obdurate, declaring that it was past the legal hour. Justice O'Gorman signed two formal orders-one restraining the Carnegie Trust Company and Henry Schneider. the temporary receiver, from in any way interfering with or collecting or taking over the sum of $346,000 deposited by the Oriental Bank with the Superintendent of Banking and by him deposited with the Bankers' Trust Company: the other removing the receivers and approving the terms of the contract entered into between the Oriental Bank and the Metropolitan Trust Company. under which the depositors will immediately receive their money. S. Stanwood Menken, counsel for the directors, lost no time getting certified copies of the order to be served on the receivers, the Superintendent of Bank ing and the other parties interested. and said he would have them served at once. Appended to the order was an affidavit made by Martin G Bogue, in which he said he had served a copy of the order on the Attorney-General last night at the New Grand Hotel It was this copy which enabled Mr. Jackson to prepare his notice of appeal. "I have nothing to say at present," said Attorney-General Jackson, as he left the court-house.

14. March 8, 1908 The Washington Herald Washington, DC
Article from The Washington Herald, March 8, 1908

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DEPOSITORS TO BE PAID. Oriental Bank's Plan Meets with Approval of Justice O'Gorman. New York, March 6.-Justice O'Gorman, in special term of the Surpeme Court today, approved the Oriental Bank's plan for the immediate payment of the depositors in full. The decision will have the effect of removing the attorney general's receivers, the Carnegie Trust Company and Henry Schneider, as soon as the formal order is signed, which will probably be to-morrow. The vacating of the receivership will restore the control of the bank to the State banking department, which will prob ably remain in charge during the process of liquidation. unless the court itself takes the mater under its jurisdiction.

15. March 8, 1908 The Sun New York, NY
Article from The Sun, March 8, 1908

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other things. vacates and sets aside the order made and entered herein February 28, 1908. appointing temporary receivers of the defendant in the above entitled action. Immediately upon the filing of such order today I served notice of appeal upon the Clerk of the County of New York and upon Messrs. Philbin, Beekman x Menken, attorneys for the defendant. a copy of which said notice of appeal. with a notice of such service. will be handed to you by the bearer of this letter. I am of the opinion that the service of the notice of appeal perfected the appeal and stays all proceedings under the order appealed from. as provided by section 1,313 of the Code of Civil Procedure. That there may be no question upon this point I intend to immediately apply to the court for an order staying all proceedings until the hearing and decision of the appeal. In my opinion there are several important legal questions involved in these proceedings, and I enclose a memorandum which I have prepared upon the subject, which defines my position. Yours truly. W. S. JACKSON, Attorney-General. The Attornev-General is the legal adviser of the State Superintendent of Banks and Mr. Williams was apparently up against the proposition of being advised not to do what the Court ordered him to do. After the refusal of the Carnegie Trust officer. however, there was nothing more for the State Superintendent to do and he left for Albany. Justice O'Gorman and also Justice FitzGerald remained at the County Court building until about 3 o'clock in the afternoon. In the meantime, however, the bank's lawyers had been conferring and had come to the conclusion to do nothing until the opening of court on Monday. The order signed by Justice O'Gorman besides vacating the receivership authorizes the Oriental Bank to enter into a contract with the Metropolitan Trust Company for the payment in full of its creditors under the terms set forth in the contract. It directs the State Superintendent of Banks to remain in control of the bank's property until the contract is executed and then to deliver the property to the Metropolitan Trust Company the liquidating agent. Mr. Jackson in his formal statement complains that no contract has as yet been entered into: that the proposed agreement as approved by the Court has not even been approved by the board of directors of the Metropolitan Trust Company or of the Oriental Bank. Furthermore, no bond has as yet been executed. "Up to this time." said the AttorneyGeneral "there has only been presented a proposition that it is said will be executed at some time. but which is not binding upon any one. The proposed agreement provides for the payment to the Clearing House of the amount due it by the bank. but no time is specified. The proposed agreement provides for the payment of depositors forthwith 'when the amount due each depositor shall be certified by expert accountants.'' Mr. Jackson said he could find no authority in law authorizing the Court to direct receivers to turn the property of an insolvent moneyed corporation over to the State Superintendent of Banks. The Court directs the State Superintendent upon the execution of the contract to turn over all the assets of the bank to the Metropolitan Trust Company. Mr. Jackson says: "I can find no law authorizing a court to direct the Superintendent of Banks to turn over to a third person the assets of a bank in his hands and which he has reported as unsafe and that it is inexpedient for it to continue in business. The only law I find requires the Superintendent of Banks in possession of the assets of a bank that he deems unsafe and inexpedient for it to continue business to report those facts to the Attorney -General, whose absolute duty it then becomes to bring an action for its dissolution." Mr. Jackson contends that the rights and liabilities of stockholders and others besides creditors are wholly unprotected by the Court's order. "This order," says the Attorney-General, 'establishes an entirely new practice and one wholly unauthorized and in effect it establishes the precedent for permitting insolvent corporations to select their own receivers and to administer their affairs regardless of the provisions of the law reQuiring their dissolution and the distriDution of their assets through officers appointed by the Court." Mr. Jackson promises to get as speedy a determination of the case as possible.

16. March 9, 1908 The Evening World New York, NY
Article from The Evening World, March 9, 1908

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ORIENTAL BANK DEPOSITORS DON'T GET THEIR MONEY Attorney-General Jackson Gets Receivership Fight Into Appellate Court. Attorney-General Jackson to-day won point in his fight to save the receivers a of the Oriental Bank and to prevent it from re-opening. After a lengthy argument before Justice O'Gorman. the latter refused to resettle his decision of Saturday in which he threw out the receivers and approved the plan of reorganization Justice O'Gorman sent the controversy to the Appellate Division. where it will he heard bv Justice O'Laughlin to-mor row. In the meantime the Oriental Bank's depositors who expected to get their money to-day will have to wait. Directors Make Appeal. Attorney-General Jackson and Deputy Attorney-General De Ford: David MeClure for the depositors and Stanwood Menken for the directors. opened in chambers before Justice O'Gorman. Mr. Menken said they wanted a resettlement of the decision. with a provision setting forth that the Attorney-General consented to the order. and, then filed a notice of appeal. This complicated the matter. said Mr. Menken. "It seems to me utterly unheard of that any lawyer." said Mr. Jackson, "and especially a lawyer for the peop could consent to do away with the legal rights of the people. The sole purpose of this application is to deny the people the right of appeal. What I said was that If Your Honor deemed this agreement. by which the depos tors were to be paid. legal. I consented." "No. I have a distinct recollection that you said you would consent to any plan by which the depositors were paid in full." said Justice O'German. "I asked you If you opposed the ratifleation of the agreement and you said 'no.''' Mr. Menken then informed the Court .. that Mr. Jackson had obtained a stay from the Appellate Division. o "I have nothing to sav about that." 1 said Justice O'Gorman. "I was assured that under this plan all the depositors were to be paid by Friday and that all were to be paid in full. It was my understanding that if this was not done the matter was to be taken up by this court and the Attorney-General." During the argument Justice O'Gor-

17. March 11, 1908 New-York Tribune New York, NY
Article from New-York Tribune, March 11, 1908

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JACKSON WINS A POINT. Justice Patterson, of the Appellate Division. yesterday set Friday as the day for a hearing on the order to show cause why arguments should not be heard immediately upon Atterney General Jackson's appeal from Justice O'Gorman's order vacating the order appointing temporary receivers for the Oriental Bank A delay was asked for by Martin L. Stover, who represented the Attorney Generay. E. Stanwood Menken, of counsel for the Oriental Bank, vigorously opposed the granting of any delay, but was overruled.

18. March 18, 1908 New-York Tribune New York, NY
Article from New-York Tribune, March 18, 1908

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ORIENTAL WINS AGAIN JACKSON IS CENSURED. Appellate Division Affirms Order Dismissing Receivers. Attorney General Jackson was severely censured in a decision handed down yesterday by the Appellate Division of the Supreme Court affirming the order of Justice O'Gorman in dismissing the temporary receivers appointed for the Oriental Bank at the request of the Attorney General. The decision is a victory for the and stockholders of the as the court decides that depositors bank. higher suspended the Oriental is absolutely solvent. This means that the liquidation arrangement. with the Metropolitan Trust Company may be carried out. Hugh Kelly, president of the Oriental, when seen at his home last night and told of the decision, said: "I am delighted at the action of the Appellate Division. It is exactly what I expected. I do not believe that Attorney General Jackson will carry the case any further after two courts have decided against him." Asked if the deal with the Metropolitan Trust Company would go through now. Mr. Kelly said: "It certainly will. just as soon as we get rid of the receivers. The plan has already been signed by the officers of the Metropolitan Trust Company, and I will sign it just as soon as the injunction forbidding me to do so is vacated. I believe that the Oriental depositors will be paid in the very near future." Brayton Ives, president of the Metropolitan Trust Company, when informed of the decision by a reporter for The Tribune, said: "I do not see how the Appellate Division could have come to any other conclusion in the case. I am pleased to get the news. As for the deal with the Metropolitan Trust Company by which the depositors of the Oriental Bank are to be paid, I see nothing now to prevent its successful consummation. I am ready to carry out my part of it." COURT'S DECISION UNANIMOUS. The decision was unanimous, Justice Houghton writing the opinion, while Justice Laughlin wrote a separate review of the case, in which he referred to certain questions which he thought were not properly before the court. In regard to the action of Attorney General Jackson in procuring the appointment of receivers for the Oriental the opinion says: Instead of giving his approval or signifying his disapproval, or doing something except to say that he would take the matter up with the Superintendent of Banks at his earliest opportunity. which he does not appear to have done. he instituted this action to dissolve the defendant on the ground that it was insolvent, and that it was unsafe and inexpedient for it to continue doing business. and that it was unable to do so The complaint was verified on February 28 by the Attorney General himself. On that day. upon the complaint alone, without any supporting affidavit, he applied to the court ex parte for the appointment of temporary receivers. The order recites that sufficient reason appeared for dispensing with notice of the application. and contained an order to show cause on March 24 why the receivers should not be made permanent. On the following day. on the application of defendant, in which more than 90 per cent of the depositors and more than 70 per cent of the stockholders of the defendant joined, the same judge who granted the order appointing the receivers made an order requiring the Atterney General and the receivers to show cause why the order appointing them should not be set aside.

19. March 21, 1908 Evening Star Washington, DC
Article from Evening Star, March 21, 1908

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TO BE PAID IN FULL. Good News for Depositors in the Defunct Oriental Bank. Special Dispatch to The Star. NEW YORK, March 21.-The depositors of the Oriental Bank, which failed during the recent financial panic, will be paid in full. The plan which Attorney General Jackson has been holding up whereby the Metropolitan Trust Company is to pay the depositors of the bank was put through this morning. President Kelly of the bank announced this morning that Supt. of Banks Clark Williams had last evening turned over the assets of the bank to the bank's officers and that they in turn completed arrangements with the Metropolitan Trust Company. Under the plan. contracts for which have already been signed, it was announced today that the Metropolitan Trust Company would start in at once to pay all depositors. The verification of an account by the presentation of a passbook and an examination of the bank's records will be the only preliminary in each case before a cash payment in full is made.

20. March 24, 1908 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, March 24, 1908

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ORIENTAL BANK RESUMES. Attorney General Jackson Unable to Balk the Plan. New York, March 23.-Five hundred thousand dollars which had been deposited by savings banks with the Oriental bank before the latter institution suspended payment several weeks ago, was paid to the savings banks today. The payment was made under the plan which had. been approved by depositors and which finally was approved by the courts in the face of opposition on the part of Attorney General Jackson. The Oriental bank reopened its doors to its depositors again today, and about a dozen of them turned in their passbooks to be balanced, after which they will be paid in full. Announcement was made today by counsel for the bank that the payments to all depositors probably will be completed within two weeks.

21. April 1, 1908 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, April 1, 1908

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# New York Bank Frauds. New York City. —In a statement to the Attorney-General the receivers for the Oriental Bank reported the discovery of many irregularities and crimes among the bank's assets and books.

22. April 15, 1908 New-York Tribune New York, NY
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OUT OF CLEARING HOUSE. Suspended Banks Formally Expelled-May Be Readmitted. It was learned yesterday that at a recent meeting of the Clearing House Association formal action was taken terminating the membership in the association of the National Bank of North America, the New Amsterdam National Bank, the Oriental Bank, the Mechanics and Traders' Bank and the First National Bank of Brooklyn. These five hanks suspended payment during or after the panic last fall. To date only one-the First National Bank of Brooklyn-has resumed business. The action recently taken by the Clearing House was merely formal, as membership in the Clearing House automatically terminates when a bank suspends payment. The banks named above will never be able to get back the original numbers which they held in the Clearing House, but any or all of them on the resumption of business may be readmitted to the association if the committee on admission sees ftt. In such case, however, they will have to take new numbers at the foot of the list. of the five banks which forfeited membership two, the Oriental and the National of North AmeriC8, will probably go out of existence after the assets are liquidated. Plans are under way for the reopening of the New Amsterdam National and the Mechanics and Traders'. The National Bank of North America has an interest in the Clearing House Building Association, but this interest will be sold to the association, as provided by the rules.

23. April 9, 1911 New-York Tribune New York, NY
Article from New-York Tribune, April 9, 1911

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JUSTICE INGRAHAM OBJECTS Says There Was No Reason for Appointing Carnegie Trust and Schneider. The bitter controversy in 1908 between the depositors of the Oriental Bank and William Schuyler Jackson, who was then Attorney General of the State of New York, over the latter's action in having temporary receivers appointed was recalled yes. terday by a decision of the Appellate Division of the Supreme Court in passing on the expenses of the receivership which the court considered unnecessary. The majority of the bench decided in favor of cutting down the charges favorably passed on by former Judge D. Cady Herrick as referee. while Presiding Justice Ingraham in his dissenting opinion went on record as opposed to allowing any charges whatsoever. About the time that Attorney General Jackson had the Carnegie Trust Company and Henry Schneider appointed as receivers of the Oriental Bank he also made several applications for the appointment of receivers for other institutions. In the case of the Oriental Bank he explained his action by saying that the plan whereby the Metropolitan Trust Company was to advance the bank sufficient funds to pay off its creditors was an effort to loot the bank and deceive the depositors. Justice Platzek appointed the receivers asked for. and the depositors became aroused over the action of the Attorney General. which they assailed as unnecessary interference in the affairs of the institution just at a time when it was getting of out of its difficulties following the panic 1907. The bank officials also objected. An action was brought to have the receivership vacated. and Justice O'Gorman granted the application. His decision the Appellate Division upheld, saying that Jackson acted too hastily in having the receivers appointed. Justice Ingraham expressed the view yesterday that the receivership was established for the sole purpose of helping the receivers. Then came the claims for the expenses for that brief receiversnip, amounting to Former Judge Herrick was apto pass on the accounts, not all of pointed $10,872. he did approve them. further and the while Appellate Division favored a still cut. Justice Davis approved the report of Judge Herrick. One of the expenditures objected to was that of $3,750 for counsel fees paid to John B. Stanchfield and Professor Charles A. Collin. The latter is the man who recently bore the letter that Governor Dix sent to District Attorney Whitman instructing him to consult with Attorney General Carmody in his investigation into the affairs of the Carnegie Trust Company. It will be remembered that this communication was delivered to the District Attorney by Stephen C. Baldwin, counsel for the officials of the Carnegie Trust Company. This claim for counsel fees was cut to $2,000. The Carnegie Trust Company asked a $3,000 fee as receiver of the Oriental Bank. Only $1,000 was allowed, which amount Schneider will also receive. The referee's fees and expenses amount to $670 more. The presiding justice said that there was no need for the receivers, and all that their appointment could have accomplished was to enable them to appropriate to themselves fees and expenses from the assets belonging to the creditors and stockholders of the Oriental Bank. "No court ad. ministering justice." said Justice Ingraham, "if the facts were known, would even have entertained an application for the appointment of receivers." Justice Ingraham went over some of these facts that he referred to. It appeared. he said, that the Carnegie Trust Company had been negotiating with the Oriental Bank to advance the latter money to pay its indebtedness, but that the creditors were not satisfied with the arrangement, preferring that made with the Metropolitan Trust Company. It appeared further, said the justice, that the president of the Carnegie Trust Company. who at the time was Charles C. Dickinson, who recently died under unusual circumstances, had been in communication with Attorney General Jackson. He had asked, the justice said, to be appointed recelver of the Oriental Bank, which fact the Attorney General did not tell the court in asking for the appointment of the Carnegie Trust Company as one of the Oriental receivers. Justice Ingraham said that he could not see that the receivers were entitled to anything as fees, as there was no service rendered He declared that if they had any claim it should be preferred against the state. as the court had no power to

24. June 13, 1912 The Jeffersonian Thomson, Atlanta, GA
Article from The Jeffersonian, June 13, 1912

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# How the Money Trust Smashes Certain Banks THE Pujo Congressional Committee is doing some splendid work. It is bringing to light the brutal manner in which the New York Clearing House Association crushed such banks as it did not favor. And the peculiar feature of the case is that every victim of the Trust owed its ruin to its own cowardice. So great was the fear of the Clearing House Association that its orders were obeyed, no matter how arbitrary, lawless, and unreasonable. For instance, there was the Oriental Bank, a perfectly solvent institution, and one of the oldest banks of New York. It was from the Oriental that I borrowed the $25,000 with which this paper and Watson's Magazine were founded. It's president, Mr. Jones, was a perfect gentleman, and a first-class banker. But for some reason the Money Trust determined to put the Oriental out of business. First, Mr. Jones was required to redeem his time certificates within a fixed limit which had not been put on the other banks. Right there he should have bucked. Had he done so, the Clearing House Association could not have done a thing. It might have bluffed and refused to "clear" his checks, but as he was able to clear them himself, he could have safely defied the Trust. But he weakly yielded and the Trust advanced its line of attack. It required the Oriental to refuse to "clear" for two Brooklyn banks. Mr. Jones ought to have known that compliance would mean "a run" on the two Brooklyn banks, and that this run would inevitably come to the Oriental next. Indeed, it seems that he did foresee that very danger, and pointed it out to the czars of the Clearing House Association. The czars conceded the point, and pledged themselves to stand by the Oriental "to the last ditch." Mr. Jones did not exact this pledge in writing. Even had he done so, he could not have enforced it. He should have flatly refused to ruin the Brooklyn banks. By yielding to the czars, he wrecked two of his correspondents, and then came his own turn. The czars who had pledged him support cynically refused to give it. That his bank was solvent is proven by the fact that the depositors got every dollar of their money. No wonder Mr. Jones went to bed when he realized what he had done. A man who is so structurally weak as to allow another to ruin his solvent business, by threats and arbitrary demands, is hardly of the tough fibre needed in the present fight for existence.