Brooklyn Central Bank - Brooklyn, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 2, 1870
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 3d0ab7d7

Response Measures

None

Description

The bank suspended specie/payments in early August 1870 (article dated Aug 4 says it suspended on Tuesday). Coverage describes collapse, depositors' meetings, alleged misuse of funds by cashier Spader and transfers by Pruyn, appointment of a receiver, and the bank later adjudged bankrupt (Nov 1870). No explicit bank run is described — depositors sought explanations, but no large crowd/run on the bank is reported. Therefore this is a suspension leading to permanent closure/receivership.

Events (4)

1. August 2, 1870 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Suspension followed apparent collapse due to misapplication of deposits, questionable loans and transfers by bank officers (cashier John L. Spader and associates) undermining solvency.
Newspaper Excerpt: The officers of the Brooklyn Central Bank, which suspended payment on Tuesday, promise a statement in a few days.
Source: newspapers

2. August 27, 1870 Other

Newspaper Excerpt: The Brooklyn Central Bank Failure-Meeting of the Depositors-A Committee of Investigation Appointed-A Suit Against the Bank. ... The receiver and ex-cashier Spader estimates that an assessment of only $65,000 will be needed.
Source: newspapers

3. August 27, 1870 Receivership

Newspaper Excerpt: In the Supreme Court yesterday an application was made by William L. Eastburn, one of the depositors, for an order requiring the receiver to return forthwith to him $240, the amount of his deposit in the bank.
Source: newspapers

4. November 24, 1870 Other

Newspaper Excerpt: The Brooklyn Central Bank has been adjudged bankrupt.
Source: newspapers

Newspaper Articles (5)

1. August 4, 1870 New-York Tribune New York, NY

Article from New-York Tribune, August 4, 1870

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Article Text

New-York Daily Cribune. THURSDAY, AUGUST 4, 1870. Further particulars of the affair at Saarbruck represent it of slight importance, the place not being seriously defeuded by the Prussians. Two other skirmishes have The Pope, it is said, accepts the situataken place. Two tion, and is negotiating with Victor Emanuel. Liverpool merchants have absconded with £40,000 The Paris bankers have partly suspended specie payments. One white man and three colored men were killed by An the explosion of a shell at Fortress Monroe. execution took place at Norwalk, Ohio, yesterday. Mr. Jefferson Davis was serenaded at White Sulphur Springs, and made a speech. Gold in paying quantities has been found in Alaska. The announcement from Philadelphia that the murderer of Mr. Nathan had been traced to that city, is now The father and declared to be untrustworthy. sisters of John Real, who is sentenced to be hanged on SuperinFriday, have taken a final leave of him. tendent Jourdan is preparing for a parade of Orangement The officers of the Brooklyn Central on Friday. Bank, which suspended payment on Tuesday, promise a statement in a few days. The annual cruise of the New-York Yacht Club will begin on Wednesday next, Gold, 121g, the start being made from Glen Cove. .211, 1213. Thermometer, 76°, 88°, 79°.

2. August 27, 1870 The New York Herald New York, NY

Article from The New York Herald, August 27, 1870

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Article Text

THE PERIL OF WEALTH. The Brooklyn Central Bank Failure-Meeting of the Depositors-A Committee of Investigation Appointed-A Suit Against the Bank. Yesterday the depositors of the Brooklyn Central Bank, which collapsed a short time since, met in Dole & Murphy's auction room. There were a large number present. Mr. Cole on being called to the chair made a few remarks, stating that at the last pmeeting he was satisfied that there was some hopes of the depositors getting their money back, but now the case did not look so well, and he thought a new receiver should be appointed. Mr. Voorhees moved that a committea of three be appointed to confer with Mr. Spader and report. Mr. Cole said that would take time, and too much time had been lost already. The meeting had been put off two days later than It should have been. Mr. Havens moved that a committee of three be appointed to investigate, with power to employ )counsel If necessary. He said there was a misunderstanding somewhere about whether an amount of $160,000 which appeared on the books of the bank was to be considered as a deposit or whether t was a loan. Mr. Spader had made different state. ments about it, and If it could be shown satisfacto. rily that 16 was a loan it would be 80 much better for the depositors. Mr. Spader had told halt a dozen different stories about the matter. and the thought the meeting ought to have it cleared up. Mr. Place objected to legal proceedings. It would be time enough to take legal steps when absolutely necessary. It would be dimiuum for any committee to get information from Mr. Spader or any one. Depositors were running to Mr. Spader day after day, meeking an explanation, and it was not wonderful that he should be out of sorts sometimes. He thought the best way was to send the committee to ascertain from Mr. Spader or any one In the bank, and from an examination of the books, what was the true position of affairs. Mr. Kane had no confidence in Mr. Spader. nor in John K. Pruyn. The money that the depositors had entrusted to their care had been applied by them to their personal use. He wanted a new receiver, and |thought that legal proceedings should be taken. The counsel of the bank would work for the Interest of the bank and the stockholders; but he wanted someone to look after the interests of he depositors. He had about $1,800 in the bank, and ue wanted his interests protected. Mr. Place moved as an amendment to investigate land ascertain the condition of the anairs of the bank and to report at an adjourned meeting. Mr. Havens wanted to know how large a sum the |meeting represented. He thought, too, that the committee ought to have the right to employ coun. mel. It was not to investigate, but to prevent any loss of time. They wanted to take the butt by the morna and have the tinng satisfactorily settied. If there was to be no employment of counsel there had betrer be no committee at all. Mr. Place would not submit to the action of any counsel employed by any other man. Being a lawyer himself he proposed to set for nimself in the matter. It. was claimed that the bank had a right to place securities in the bands of the County TreaBurer for the security of a deposit. They would find some dificulty in the way of getting the facts as to the securities. Mr. Pruyn and transferred to the bank over two hundred thous and dollars' worth of property, much more than the value of his stock. General Crooke, who was sent. was invited to address the meeting. and said that he had been a shareholder in the bank fre Its to nation, but he kept no account there and had nev r been a directhe tor. He had conducted two O. the , suits for bank, but had never been fo mail appointed its counsel, and knew nothing about autairs of the but holder: three bank. His position was as a sto or four depositors had requeste in to act as their representative. As ance the way in which he acted for the bank be said oa the 1st of August he was sent for by Mr. Pre na who was great tribulation, and assisted him in making a transfer or his real estate for the securing of the creditors of the bank. Tats property was worth over two hundred thousand dollars, and was for the benefit of the general creditors and not for the security of Mr. Gardiner, the County Treasurer He had the right, s the real estate was not the property of the bank, and If is (General Crooke's) action in aiding to make the assignment was to be thought a crime, he was will.ing to bear the burden. This was the first thing he had to do with the bank. He acted for his own terests and for the interests of his friends In the bank, which interests happened to be Identical It was only necessary to show. in addition. that the stockholders are liable to the full amount of the stock, and whatever a stockholder can do to subserve his own interests is also for the interests of the depositors. The stockholders will lose their stock and will be liable to be called on for an equal amount for the benefit of the depositors. He could not imagine how he could have acted in any different way for humself that was not for the benefit or the depositors. There was one way in which the bank could have been revived, and that was to get a number of gentlemen or capItal, who believed the real estate was worth more than it was represented to be, to take hold of the bank, assess the stockholders one hundred per cent, get $200,000 live capital in their hands and Mr. Pruyn's real estate, which would pay from seven to ten per cent on its represented value. With this there would have been enough to pay off the small private depositors, the bank could have gone or and out of the real estate enough could have been made to secure the stock. But ne had abandoned this idea when he saw the article in the Eagle yesHe thought the depositors looked upon too much as a matter of veageance. For his own part he looked at it as a matter of dollars and cents. He wanted to secure his stock, and would like to avoid being assessed. All that he had to do with the matter had beensince the 1st of August. It was his belief that, but for the obstacles thrown in the way by depositors. the parries interested in the plan he proposed would have carried it out by the 1st of September, and the small depositors would have been paid. He had every reason to suppose that the bank would have been resuscitated with a cash capital paid in. After some further discussion a committee was appointed to look into the affairs of the bank and report at the next meeting, to be held on the 2d of September. The meeting then adjourned. ACTION AGAINST THE RECEIVER. In the Supreme Court yesterday an application was made by William L. Eastburn, que of the depositors. for an order requ ring the receiver to return forthwith to him $240, the amount of his deposit in the bank. Counsel for the receiver contended that the Court had no power to direct how the assets should be disposed of by the receiver, while counsel for the applicant argued that the statute gave the Court the whole control of the mat. ter. Judge Pratt reserved his decision.

3. September 3, 1870 Chicago Tribune Chicago, IL

Article from Chicago Tribune, September 3, 1870

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NEW YORK Special Despatch to The Uhicago Tribuae. GOLD. NEW YORK, Sept. --The markets in Wall street regain relapsed-into qulet to-day. Gold was dull, but firm, opening at 116 declining to 116% and closing at 1161. The rates paid for carrying ranged from To 5 per cent to dst. There were no movements indicating any transactions on pool account, GOVERSMENTS. Government bonds were quiet and arm The purchases of German bankers and the strong condition of the London market gare tone to this marzet. There was an advance in-1562's to 1144 on the report of a corner in them to twist the short interest MONEY The money market was without change at 4 to 5 per cent on governmente, and 5 to 6 per cent on collaterals, There was no movement of consequence of currency to the West to-day. Stocks were more active and advanced The market closed at the highest prices of the day. DRY GOODS There was generally a still better feeling ra the dry goods market, and more activity indusiness The South and West are the best buyers, but the Southe 11 mérchants are very careful In their Silections of goods. The auction sales were again wen attended. The retail trade is improvlug. BREADSTOPPS The West will do well to look with suspicion upon the reports sent out from the New York breadstuffs market There is a large bear mterest working here to depress the market and induce the country to Delléve that prices will continue to decline. Whatever may be the condition of things now, there can be no question that a heavy demand for food must come from Europe, The waste by millions of a med men is going on at a fearful rafe, and must continue to do so as long as the war lasts. There is no occasion for farmers to get into a panic over the stories from New York. There was a large movement for export to Great Bfitain to-day. The first shipment of corn to Great Britain for twelve months also no place to-day. (To the Associated Prees.) THE BROOKLYN BANE FAILURE NEW YORK, S:pt. The investigating com mittee of depositors of the Brdoklyn Central Bank reported to-day that the assets with assessment of $12,000 would indemnify the depositors and cover all liabilities The receiver and ex-cashier Spader estimates that an assessment of only $65,000 will be needed. THE NATIONAL sro: EXCHANGE President J. B. Rotuer of the National Stock Exchange, publi-her n card stating that this concern is not insolvent and do: not propose to suspend operations. KILLED B. FOEL AIR. Stewart Hands atid. John Hill, laborers, were found dead at the bottom of a well, near Coangewater, N. J., resterdas. They were repairing the well, and perisi ed from foul air NEITUNE MAKES A RAID ON THE BATHING HOUSES. Half the lat! In: houses At Long Branch were swept away by a high tide last night. MISNESOTA RAILROAD BONDS Holders of over $1,000,000 of Minneanta State bonds met at Sauther & Cc.'s banking house yesterday and unanimously resolved to decline the offer of the State to par the bonds in wild lands at $5.70 per acre, four times the market value. on the grounds that the principal 19 not yet due, and the legality of the bonds and ability of the State to provide for their interest was unquestioned. committee was appointed to enforce the settle. ment of over-due coupons. TICTON vs. RESSELL d The Standard this morning contains a reply to a savage attack in the Brookive Unrill. it says Theodore Tituan, editor of the Brookiyn Union, published an article in reference to Mr. Young at and the Standari, which 19 not true. If such an article had been submitted to Mr. Young coneerning Mr. Tilton, he certainly would not have printed it, without at least, taking some steps to ascertain its truth. Mr. Young was at his of office yesterday from a. m., until after thininght, with the exception of an hour or two of absence. 3tr. Tilton is not So old that he does not know the effect of defamation, calumny, and slander. lle will be avery old man, indeed. when he finds he can afford wantonly to injure gentlemen who have always wished le him well. and to and in gratifying the malice of men who are encmies of tue profession in which at we had ver hoped to have found him doing brilc liant and worthy service, to SENIOUS ILLNESS OF CHEP JUSTICE CHASE. New YORK, Sept. .-Chief Justice Chase is reported to be suffering from paralysis, at Narragransett, R. I. His recovery is deemed doubtful. lie cannot walk without assistance and his mind d is seriously affected. It ts believed he can never resume his place on the bench. TIBER PERSONS BERNED TO DEATIL BROOKLYN. N. Y., Sept. 1.-At about midnight last night a are broke out in the third story of frame tenement house, at the corncr of Grat avenue and Boarum street, which was attended with the lose of three lives. It appears that the names communicated to the adjoining building ch No. 123 Gratam avenue On the third noor this house there resides Mrs. Annie Grumach, an her two little girls. ared 1 and 5 years. After the names had been subdued, search was made among the ruins, and the charred remains of the unfort unutes were discovered.

4. November 24, 1870 Rutland Weekly Herald Rutland, VT

Article from Rutland Weekly Herald, November 24, 1870

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# News Condenser. Cranberry picking is now in order. Blasting at Hell Gate has begun again. The yacht Cambria has sailed for England. The coast of Florida is strewn with wrecks. Hot Springs, Arkansas, has a population of 1000. Governor's Island is still rigidly quarantined. North Collins, Erie Co., has $509,288 personal property. St. Peter's Episcopal chapel, Brooklyn, is to cost $40,000. Fairhaven, Conn., is having its streets lighted with gas. A Cincinnati manufacturer ships 24,000,000 bungs a year. Mt. Morris has a peach tree that has ripened a second crop. Huntington, I. I., has 348 inhabitants above 70 years of age. Auburn has a public night school for clerks, errand boys, etc. The small pox is raging among the Indians in the Northwest. The Brooklyn Central Bank has been adjudged bankrupt. Stokes Co., North Carolina, has forty-two tobacco factories. The new suspension bridge at Watertown is nearly completed. Boston has twenty drinking fountains, but needs many more. Kerosene is the popular hair oil with Maryland amendments. The College of St. Francis Xavier has now about 400 students. Sandy Hill has a new monthly publication called the Saw Mill. Addison, Stuben Co., is to have a new iron tressel work bridge. The crop of buckwheat in Monroe Co. is said to be very large. The coast cities of Texas are in the enjoyment of good health. A man named Hail Storms is a candidate for Sheriff in Illinois. Forepaugh, the circus proprietor, is worth half a million dollars. The Warsaw, Wyoming Co., water works are nearly completed. Hoboken has 20,314 population. Ten years ago she only had 9,662. The Lorillard estate at Fordham has been sold in lots for $17,680. Conklin, the alleged express robber has been released on $5,000 bail. The season at Watkins Glen is to be prolonged until snow fall. A Norwegian giant seven feet and ten inches in height is in Cincinnati. The attendance of strangers at the Virginia State Fair was very large. Maine has in her public schools 228,167 pupils a gain of 2,824 since 1869. The new building of the Brooklyn Art Association is to cost $77,000. Mr. McNamee, of Montreal is to repair the Chambly Canal for $40,000. The White House has been freshly painted, and looks the better for it. The cattle plague is raging in some of the occupied districts of France. Harts Co., Nova Scotia, allows any one who wishes to sell liquor to do so. The Hudson river boats are carrying large loads of freight to New York. The extension of the fire alarm telegraph, in Albany, has been commenced. The value of church property in Massachusetts is estimated at $24,487,285. Potatoes are rotting badly in Genesee Co., now that they are in the cellar. The new depot at Sandy Hill Washington Co., is approaching completion. The Baldwinsville paper-mill is now engaged exclusively on wrapping paper. Snow fell in various parts of New Hampshire and Maine on the 30th ult. Providence is to have its street lamps lighted and extinguished by electricity. The corn crop of the Unite dStates for 1870 is estimated at 250,000,000 bushels. Excursion trains have been run over the Mobile and Chattanooga railroad. The Utica Herald entered its twenty-fourth year Nov. 1st, in a "full new suit." Thirteen Protestants and forty-nine Roman Catholics died in Montreal last week. The receipts of the Albany County Fair were this year less than the expenses. The total assets of the banks of Canada are $106,067,293.82, liabilities $65,759,111.89 cents. The Southern Central Railroad bridge at Auburn will be finished in five weeks. Agassiz, during the year, has discovered ten thousand different varieties of the fly. A general council of the Indian tribes has been adjourned to the 5th of December. Four hundred and fifty eels were lately caught in a fish basket in Juniata Co., Pa. It is said that $90,000,000 have been sunk in journalistic enterprises in New York city.

5. November 1, 1879 The New York Herald New York, NY

Article from The New York Herald, November 1, 1879

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JOHN L. SPADER. Ex-Alderman John L. Spader, of Brooklyn, dropped dead yesterday morning in the garden of his residence, No. 99 Fifteenth street. The deceased was at one time well known in Brooklyn, and represented the Eighth ward, about twenty years ago, in the Board of Aldermen. He was also cashier or the Brooklyn Central Bank at the time of its suspension in 1870. The suspension of the Bank left the deceased poor. He was appointed ICceiver, and served in that position until the bank's affairs were settled. Of late years deceased, who was sixty-five years of age, lived a retired life. The funeral services will be held at the late residence of deceased on Sunday afternoon next.