14838. Brooklyn Trust Company (Brooklyn, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: trust company
Start Date: July 19, 1873
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 41244f52

Response Measures

None

Description

The Brooklyn Trust Company suspended in mid-July 1873 after discovery of large defalcations by President E. S. Mills and related irregularities; a receiver (Daniel Chauncey) was appointed. The trustees/stockholders organized, pledged assessments and a guarantee fund, the receiver's appointment was vacated, and the company resumed business on August 9–10, 1873. Articles mention threatened runs/withdrawals and a clearing-house (or exchange) refusing to clear, but the primary trigger was bank-specific defalcation; the episode ends with resumption of business.

Events (7)

1. July 19, 1873 Other

Newspaper Excerpt: Mr. Daniel Chauncey, President of the Mechanics Bank, was appointed receiver.
Source: newspapers

2. July 19, 1873 Receivership

Newspaper Excerpt: Mr. Daniel Chauncey ... was appointed receiver.
Source: newspapers

3. July 19, 1873 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery after President Mills's sudden death of large overdrafts, defalcations and worthless loans; furthermore the exchange/clearing refused to clear for the bank, which the directors said would 'necessarily cause a run' they could not meet, leading to general suspension.
Newspaper Excerpt: The Brooklyn Trust Company suspended payment yesterday afternoon
Source: newspapers

4. July 21, 1873 Other

Newspaper Excerpt: Additional excitement ... Judge Alexander McCue ... has since Mills's death been transferring his real estate ... to secure himself from loss in case the company proves insolvent.
Source: newspapers

5. July 23, 1873 Other

Newspaper Excerpt: Directors are confident a receiver will be able to pay a dividend of 50 per cent. on the amount due depositors, on August 11.
Source: newspapers

6. August 9, 1873 Reopening

Newspaper Excerpt: The Company will resume business on Saturday morning, the 9th instant, at nine o'clock. ... At nine o'clock yesterday morning the doors ... were thrown open and business was quietly resumed. The company had suspended payment for three weeks.
Source: newspapers

7. August 10, 1873 Other

Newspaper Excerpt: The appointment of receiver was vacated ... 'said receiver pay over and deliver unto the defendant all the funds, assets, property and effects ...' and the receiver presented his accounts.
Source: newspapers

Newspaper Articles (23)

1. July 20, 1873 The New York Herald New York, NY

Article from The New York Herald, July 20, 1873

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The Brooklyn Trust Company suspended payment yesterday afternoon, and Mr. Daniel Chauncey, President of the Mechanics Bank, was appointed receiver. At a meeting of the directors of the company yesterday the following official statement, which explains in part the cause of the suspension, was given to the press and issued in circular form to the depositors. STATEMENT OF THE DIRECTORS. To THE PUBLIC:-The undersigned directors of the Brooklyn Trust Company regret to announce the suspennon of the company. The sudden death of the late President. Mr. Mills, induced u thorough investigation of the accounts of the bank, which has resulted. thus far, in the discovery of a large overdraft on the part of the late President. Notwithstanding this, the undersigned, up to the close of business hours on yesterday, believed it entirely possible for the company to continue Its business. The unexpected action of the bank, however, yesterday afternoon, through which the company made its exchanges, declining any longer to clear for us, and which action will, in our opinion, necessarily cause a run to be made upon us which we cannot at once meet, has induced us to determine upon a general suspension of business as a matter of justice, not only to the depositors of the company, but also to the stockholders. From the examinalion thus lar made we believe there will be no considerable loss, if any at all, to the depositors. It has been impossible for us to procure u full attendance ot a quorum of the Board, as many of the directors are out of town. The examination will be continued, and a full statement of the affairs of the company given to the public at the earlient possible moment. The public may rest assured that no effort will be wanting on our part to bring about a prompt and satisfactory settlement DANIEL CHAUNCEY. ALEXANDER McCUE.

2. July 22, 1873 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, July 22, 1873

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The Brooklyn Trust Company Defalcation. NEW YORK, July 21.-Additional excitement was caused in Brooklyn financial circles to-day by the announcement that Judge Alexander McCue, the largest stockholder of the Brooklyn Trust Company, and on whose application it was forced to suspend payment, has since Mills's death been transferring his real estate in hasty blocks to his wife to secure himself from loss in case the company proves Insolvent. The transfers, which embrace one lot worth $90,000, are first made out by McCue to Edgar M. Cullen, then by the latter to McCue's wife. In addition to the deposits hitherto reported, the United States Government had $200,000 with the company; N. H. Clement, $13,000; and D. Bryant, $2,800. The more searching the investigation the worse the condition of the concern appears to be. The secretary, M. T. Rodman, denies that he is also a defaulter, asserting that the bonds furnished as security will fullycover the loan to him from the company of $34,000. The original capital stock was $500,000, which has all been absorbed. There are $300,000 of worthless loans. Mills defaulted for between one and two hundred thousand dollars; Rodman, the secretary, borrowed $34,000. The prospect of depositors realizing anything is slim. There is evidence that Mills, the president, conscious of his lapses, had made an arrangement with a capitalist to loan him funds to supply his deficiency, but drowned himself on the day the arrangement was to have been perfected. One Lowe, a vice-president, having resigned on the plea of ill health, first drew attention to the workings of the company's affairs. An investigation proposed at that time was postponed through Mills's efforts, assisted by Rodman. Finally, neither Mills nor Rodman replaced the monev taken by them Mills drowned himself, and Rodman confessed everything. He pretends to have remonstrated with Mills when the irregularities first commenced, who invariably directed him to dry up. The deceased, Mills, loaned much money on doubtful security, including that fingered by himself.

3. July 24, 1873 Nashville Union and American Nashville, TN

Article from Nashville Union and American, July 24, 1873

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NEW YORK. The Steamer Virginius. NEW YORK, 23.-Correspondence is published concerning the recent action of the American Consul, American commander of the gunboat} Kansas and the Spanish Commander Autran, of the Spanish gunboat Bazan, in regard to the sailing of the steamer Virginus from Aspinwall, under escort of the gunboat Kansas. Commander Autran claimed that the Virginius, by landing ar S and ammunition on the Island of Cuba for the insurgents, had laid their vessel liable to capture by Spanish authorities at any time after the commission of euch alleged violation of international laws, but Commander Reed, of the Kansas, held that the running of a blockade only laid the vessel liable to capture when in the act, and that the penalty of such act should not fellow escape. American Consul Tharrington, at Aspinwall, in response to a query from Commander Reed, said the Virginius had the right to fly the American flag, quoting as a precedent the action of Minister Hurlbu', in April, 1872, when the latter requested the Kansas to then escort the Virginius from the harbor of Aspinwall. On 29th June, Capt. Rockendorff of the Canandaigua, which had just arrived, ordered the Kansas to escert the Virginius from the harbor, which was done, the Bazan making no demonstrations, but Commander Autran denounced the Virginius as a pirate and has officially informed his government of the affair. The action of the America fleet is endorsed by Secretary Robeson. Suit Against Kate Steddard. Suit has been brought against Lizzie King, alias Kate Stoddard, the object of which is to forclose 2 wortgage on one of Goodrich's houses in DeGraw street,Brooklyn. King, alias Stoddard, is made a party to cover any rights she may have in the premises as widow of Chas. Goodrich. When the papers were read and explained to the prisoner that the object was to cut off her claim to the property, she said she had no desire to get a dollar of Goodrich's estate, nor does she propose to claim anything, but that she does wish to get certain trinkets which deceased presented to her and which she says are now in his father's posession. The Brooklyn Trust Company. NEW YORK, July 23.-A Private meeting of the directors of the Brooklyn Trust Company was held to-night, at which the bess means of disposing of the Georgia State and Connecticut railroad bonds in their possession, in order to settle the affairs of the company, were discussed. The following public statement was made on examining the affairs of the company, the directors are confident a receiver will be able to pay a dividend of 50 per cent. on the amount due depositors, on August 11. The directors propose to call a meeting of the stockholders at a later day, with a view to fill up the capital stock and resume business. Forced into Bankruptcy. A petition in bankruptcy has been filed by J. J. Allen, ex-Assistant U. S. District Attorney, against the Brooklyn Trust Company. Controller Schraeder, of Brooklyn, says he does not intend to take any action towards recovering the city funds, believing the city will get every dollar by waiting. A Watery Grave. The body of an unknown woman, about 35 years of age, and a boy seven years of age, were found to day in East rive-, near the foot of Twenty-eighth street. No clue to the identity of the woman or child can be obtained. The woman was seen last week on the pier at the foot of Twentyeighth street.

4. July 24, 1873 Pioche Daily Record Pioche, NV

Article from Pioche Daily Record, July 24, 1873

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Eastern Dispatches. NEW YORK. July 22. The steamers Ismalia and Canada arrived to-day from Liverpool. The specie engagement for Europe to-day is $750,000, of which $500,000 is gold coin. Benjamin Rathburn, whose forgeries in this State made him so notorious thirty-six years ago, died in this city yesterday, aged 82. The excitement over the defalcation of Edhelbert S. Mills, and suspension of the Brooklyn Trust Company, is subsiding. Depositors have been assured that 1 they will not lose anything, and a majority have resigned themselves to the situation. It is understood the directors have estimated the loss at $225,000. The capital and surplus were $665,000. NEW YORK, July 23. Isaac B. King, father of Lizzie L. King (alias Kate Stoddard), arrived in Brooklyn to-day and visited her at the Raymond-street jail. He remained three hours with her in her cell. He had not seen her before for six years, and said she was very much changed. A Brooklyn paper publishes a lengthy interview with Kate, but nothing new was developed. NEW HAVEN, Conn., July 22. J. F. Secchi de Casoli, of the Eco d'Italia, with another gentleman from New York, has arrived here, bearing certified copies of the recent Acts of the Italian Parliament in regard to the sys. tem of child slavery. The documents will be used to-morrow morning in prosecution of Glionni, who is under $2,000 bonds for holding several Italian boys in virtual bondage in this city. BOSTON, July 23. The Convention of the Boot and Shoemakers of Massachusetts, which has been in session for the past few days, has adopted a resolution that in view of the lack of interest manifested by shoemakers in the welfare of their craft, a request be sent to the several shoe towns of this State that shoemakers meet and respectively consider the cause of this decline in interest, and that from each town a representative be sent to a Convention hereafter to be held. The ree sults arrived at by such a Convention to h be submitted to a mass-meeting of boot and shoemakers. DES MOINE, Iowa, July 22. A thousand conjectures are current in e regard to the persons who robbed the e train on the Rock Island Railroad last night, the most generally received belief y e being that they were persons living in e the neighborhood. Vigilant parties are e scouring southwestern Iowa, and it is r confidently believed that the robbers will d be caught, if they remain within the r State. A telegram, received late to-night, S says they crossed the B. and M. Railroad e last night at midnight. The Railroad t Company offer $5,000 for their detection. 1. Governor Carpenter issued a proclamait tion to-day, offering a reward of $500 for the arrest of each person engaged in the e robbery.

5. July 25, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, July 25, 1873

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1 The Brooklyn Trust Company. NEW YORK, July 24.-The statement that the condition of the Brooklyn trust company has long been known to certain members of the ring, and that they availed themselves of this knowledge to draw out funds belonging to them, is reiterated, with names and dates. It is alleged that scarcely one of the ring has a large amount remaining with the trust company. Not long ago the treasurer of a political club was informed of the condition of the trust company and withdrew the funds of the club. Register McLaughlin withdrew the city funds under his charge on Monday preceding the suspension, and was induced to return them because of the bad effect it would have on others. Call loans of the company, amounting to one million nine hundred and seventy five thousand dollars, are being called in. The policy of insurance on the late President Mills's life is now included among his property. New York Criminals-Cari Vogt, Wm. J. Sharkey, and Frank Walworth. NEW YORK, July 24.-The counsel who seek the extradition of Carl Vogt, it is to a tend, the alleged said, Belgian obtain murderer, mandamus etc., infrom the United States court, to test the question whether the attorney-general has the power to release a prisoner after the judge's commitment. If this does not hold they will procure another civil order of arrest from the State courts, so that he shall not escape. Notwithstanding every effort made by the counsel for Wm. J. Sharkey, sentenced to be hanged on the fifteenth of August, there is doubt that he will secure a stay of proceedings. No judge of the supreme court has been found who would listen to an argument. Governor Dix has been appealed to for executive clemency, but every effort in that direction has failed to elicit a response. The warden of Sing-Sing prison gives a complete denial of the sensational stories recently published of special favors the He being says: granted "Young convict Walworth Walworth. the is treat- other the same as When was was was prisoners. coming, ed just application it known made by he those having charge of the shoe-shop, as they wanted a man in their office who was not a common thief, and I sent Walworth. As to his refusing food, he has been suffering for a few days from sickness, brought about by confinement and of his seen and no one his change mother, mode of life. else, He has and her but three times. His cell is furnished the same as the others, and receives no better treatment or attention than any inj of the other prisoners.

6. July 25, 1873 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, July 25, 1873

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NEWS BY TELEGRAPH -TO THE-Daily Bennebec Journal. AFTERNOON TELEGRAMS. -THE TRAIN ROBBERY. Des Moines, 24. Nothing reliable in regard to the pursuit and capture of the railroad robbers has been received at this place. It is thought that they have crossed into Missouri and are making for the wilds of Mercer county, in that State. The total amount taken by the robbers from the train is now known to be $2,337. THE DEMOLISHED MARKET BOOTHS. New York, 24. The scene around the markets this morning beggars description. The booths and shanties are all in ruins. There was no di-turbance, owing to the presence of a large force of police. PACIFIC MAIL. New York, 24. It is reported the negotiation for a loan of $700,000 real estate in San Francisco has fallen through. YELLOW FEVER. New York, 24. The schooner Nellie J. Dinsmore, from Havana, which arrived here yesterday, lost two men by yellow fever during the voyage, and has the captain and one man now sick. PRISONETS IN THE Tomms. New York, 24. There are nearly one Ifundred prisoners now in the Tombs awaiting trial under grand jury indictments. BROOKLYN TRUST COMPANY. New York, 24. In is stated that nearly all the members et the Brooklyn ring knew of the shaky condition of the Trust company, and all were secretly notified to withdraw their deposits, which they did, including nearly all the members of the Erreoniac club. EVIDENCE OF A HORRIBLE CRIMN. The bodies of an unknown woman, thirtyfive years of age. and a boy seven years old, both wrapped together in a sheet and tied together by a shawl, were found yesterday in East river, near the foot of 28th street. There is no clew to their identity. LORD GORDON CASE. Chicago, 24. A special to the Tribune from St. Paul last night, says the Manitobau court has decided to hold for trial Fletcher, Merriam, Hoy and the other prisoners, charged with kidnapping Lord Gordon, but has not yet decided whether or not to accept bail for their pearance. At the latest ad. vices this question was being argued. ANOTHER ACCOUNT. Minneapolis, 24. A despatch from Fort Garry, dated July 22, says the examination in the Gordon Kidnapping case has been concluded. ENIGRATION COMMISSION. New York, 24. The emigration commiss sioners are running the State in debt, and it is believed they will next year recommend an increase of head money to equare their accounts. The chairman of the finance committee went to Europe yesterday. Their debt will probably reach a quarter of a million dollars by December.

7. July 25, 1873 The Daily Phoenix Columbia, SC

Article from The Daily Phoenix, July 25, 1873

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LO men native countries. Baron Wolverton is dead. American-Malzers. MATAMORAS, MEXICO, July 23.-An official telegram from General Caballas to the military commander of this city, dated at Tepic, 17th instant, announces the complete defeat of the revolutionists in the State of Jalisco, and capture of their leader, the famous chieftain, Lozoda, who has for the last fifteen years refused to submit to the authority of the Federal Government, and who has headed a band of malcontents in armed hostility nearly all that time. CARMINE, ILL., July 2£.-Two cholera deathe yesterday PRINCETON, IND July The cholera is subsiding. Mr. VERNON, IND., July -The cholera panic is over. Two deaths yesterday; no new cases. LARZE, KY, July 24.-Eighteen cholera deathsin the last three days. PHILADELPHIA, July 24.-Ameeting of cigar manufacturers was held last night, to protest against the enforcement by the Revenue Department of the use of patent cigar box which the department wants.to introduce. Theinnovation was condemned strongly, and a committee was appointed to meet Commissioner Douglas in Washington. CLEVELAND, July 24.-The distillery of Tries & Co. was burned last night; loss $60,000. WHEELING, July 24.-Obe cholera death yesterday. HALIFAX, July 24.-The Pouna Park, from Cuba for Liverpool, is here, short of hands. Three yellow fever deaths occurred on board, and the mate is down. ST. PAUL, MINN., July 24.-The Ma nitoban authorities have decided to hold the kidnappers of Lord Gordon for trial. There is no foundation for the report that Davis was unfairly nominated for Governor of Minnesota. MOUNT CARMEL, PA., July 24. .Fifteen buildings, including the telegraph office, were burned last night; losa $40,000. Thirteen families are houseless. DES MOINES, IOWA, July 24.-The railroad robbers have not yet been captured. Their plunder amounts to over $2,000. BROOKLYN, July 24.-A private meeting of the stockholders of the Brooklyn Trust Company was held to devise means for disposing of the Georgia bonds held by the bank. They make a public statement that the receiver will be able to pay the depositors fifty per cent. NEW YORK, July 24.-Two yellow fever deaths occurred on board the schooner Dinsmore, from Havana hither. The captain and one man is now down. It is stated the negotiations for $700,000 loan by the Pacific Mail Company, of in San Francisco, failed. The seizure the steamer Granada is confirmed. Isabella McBride, aged seventy years, living with her husband on a farm seven miles from Williamsport, Pa., was brntally mardered Tuesday night, by being shot through the head. Her husband, John McBride, was knocked down with a club and received seven severe cuts. When found he was lying on the floor weltering in his blood, bat living. The old people lived alone, and were supposed to have a large sum of money; $30,000 was found in the house. No clue to the murderer is found as yet. A letter from Africa states that the English burned the town of Elmena on June 31, on account of the inhabitants furnishing the Ashantees with arms and ammunition. The town of Cape Coast is full of refugee Tantea, to the number of 30,000. They having been driven off by the Ashantees, who now command all of the interior to within a mile of the coast. Dysentery is quite prevalent among the British forces, on account of the scarcity of water. Rumors of trouble in another Brooklyn bank are aflont, but are not traceable. At a meeting of coal operators and miners, in Pittsburg, yesterday, rates were demanded which, it is believed, will result in another strike next week, which will bring about another advance in coal. NEW YORK, July 34.-Notwithstanding legal proceedings taken by the butchers, poultrymen and fruitmen to avert the threatened demolition of their stalls and booths, outside of the Western market, at 8 o'olock, hardly a booth was left standing. The owners of the bootbs showed no opposition. Lees, of Lees & Walker, is dead. WASHINGTON, July 24.-A delegation of prominent officials from South Carolina, consisting of Hon. W. D. Porter,

8. July 27, 1873 The New York Herald New York, NY

Article from The New York Herald, July 27, 1873

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THE BROOKLYN TRUST COMPANY, through the receiver, makes a statement of the assets and liabilities of the concern, by which it appears that the act of suspension was not caused by immediate pecuniary embarrassment. The statement gives a surplus of over one hundred thousand dollars above all liabilities. There will be a meeting of the stockholders on Monday, when some satisfactory conclusion may be arrived at and the company may be once more set in running order.

9. July 27, 1873 The New York Herald New York, NY

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BROOKLYN TRUST COMPANY. The Official Statement of the Directors-The Present Pecuriary Position of the Bank-What IsThought of the Statement by the Directors and the Publ c. The publication yesterday of Receiver Chauncey's official statement of the financial condition of the affairs of the Brooklyn Trust Company has afforded the first opportunity since the suspension of the formation of a judgment as to the status of the company as a trustworthy financial institution. The statement was not published until noon, far too late on a Saturday for any mature opinion to be obtained outside the directorate. The prevailing impression, however, among the real estate men and financiers that a HERALD reporter met with yesterday atternoon was this-that with so favorable a pecuniary condition the company ought never to have suspended payment, and that the act of suspension must either be the result of demoralization or the knowledge of something more than has yet been revealed. Judge McCue said yesterday that he "never thought there was any real danger, and never thought there was any necessity for suspension." It is much to be regretted that he could not inspire his colleagues with the same confidence. If this roseate statement of the company's affairs is reliable there seems to be no financial reason why the company should not resume payment on Monday morning. Judge McCue states that, "although we should lose Mr. Mills' overdraft, Mr. Rodman's overdraft, the total amount of the Georgia bonds and the Willimantic bonds, we should have still $100,000 clear over all habities." Stopping payment then, according to this, was the result of panic, and it was the general opinion, openly expressed yesterday. that If the directors had had this knowledge of the position of the company the panic would have been allayed in a few hours. on Monday the stockholders will meet to decide upon what course shall be taken as to the future management of the institution. Confidence in the business capacity of the directorate has been greatly impaired, it is said, by some of the stockholders, and there must either be a restoration of confidence in the present management or a new directorate must be appointed. The following is the statement as issued by the directors yesterday:THE STATEMENT. The receiver of the Brooklyn Trust Company, for the information of the depositors and stockholders, begs leave to submit the following statement of the affairs of the said company as the same appear upon the books:Assets

10. July 30, 1873 The New York Herald New York, NY

Article from The New York Herald, July 30, 1873

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Brooklyn Trust Company's Troubles. Affairs at the Brooklyn Trust Company remain unchanged. Mr. Chauncey, the receiver, stated yesterday that he had nothing to say in addition to the statement he recently made to the stockholders and depositors in regard to the condition of the institution, and denied the published report to the effect that the entire capital of the company had been consumed. Judge McCue also stated that it was the understanding of the stockholders to resume business at an early day. The following notice, calling a meeting of the stockholders, was issued yesterday:To THE STOCKHOLDERS OF THE BROOKLYN TRUST COM. PANY:The undersigned, trustees of and stockholders in the Brooklyn Trust Company, hereby request a meeting of all stockholders of said company, in the Assembly Rooms of the Academy of Music, Montague street, on Tuesday evening, August 5, at eight o'clock. A full statement of the affairs of the company will be submitted to the stockholders, and their views invited as to the projriety of at once making good the capital stock and the resumption of business by the company at an early day. HENRY E. PIERREPONT. JAMES D. FISH. JOHN HALSET HENRY SANGER. WM. S. TISDALE. DANIEL CHAUNCEY. SEYMOUR L. HUSTED. ALEX. MCCUE. DATED JULY 29, 1873.

11. August 8, 1873 The New York Herald New York, NY

Article from The New York Herald, August 8, 1873

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THE BROOKLYN TRUST COMPANY. Resumption of Business To-MorrowAlderman Ropes Elected President-A Card to Depositors. Yesterday morning a meeting of the directors of the Trust Company was held at their bank on Court street, opposite Joralemon. There were present Daniel Chauncey, Judge McCue, Seymour L. Husted, Henry Sanger, Alexander M. White, James S. Rockwell, William C. Kingsley, James D. Fish, John Halsey, Ripley Ropes, Josiah O. Low, J. S. Tisdale. Mr. Chauncey, the receiver, and President pro tem., presided. Mr. M. T. Rodman sent in his resignation as Secretary, which was accepted, and Mr. Halsey was elected Secretary in his place. Mr. Ropes was elected President and a trustee. Mr. Charles R. Marvin was also elected a trustee. After disposing of this business the directors resolved that business would be resumed at nine o'clock to-morrow morning. The following card was issued and the meeting then adjourned:The undersigned, trustees of the Brooklyn Trust Company, beg leave to inform their depositors and the public generally that the Company will resume business on Eatürday morning, the 9th instant, at nine o'clock. The stockholders, at a meeting held on Tuesday evening, the 5th instant, at the Academy of Music, voted to advance to the Company fifty per cent of the amount of the stock held by them to make good the impairment of capital. This money hasalready been largely subscribed. The undersigned have united to contribute a guarantee fund o. $590,000 to abide the payment of those subscriptions and the completion of the full capital of the Company. The trustees believe that under that reorganization the Company is entitled to the fullest confidence of the public. Signed -Henry E. Pierrepont, Edward Harvey, Henry Sanger, Seymour L. Husted. Alexander M. White, James S. Rockwell, William C. Kingsley, James D. Fish, Alexander McCuc, John Halsey, Daniel Chauncey, Josiah O. Low. BROOKLYN, August 7, 1673.

12. August 10, 1873 The New York Herald New York, NY

Article from The New York Herald, August 10, 1873

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BROOKLYN TRUST COMPANY. Resumption of Business Yesterday-The Receiver Discharged. At nine o'clock Lesterday morning the doors of the Brooklyn Trust Company's office, corner of Court and Joraleman streets, were thrown open and business was quietly resumed. The company had suspended payment for three weeks. Up to ten o'clock $25,000 had been paid out, and then the little crush was over. A number of deposits were received during the day, amounting to within fifty per cent of the total paid out. President Ropes said that the company was prepared for any run that might be made, having $1,500,000 on hand, and if that were not enough they had call loans available to a sufficient extent to cover the last dollar on deposit in the institution, with a surplus over at that. During the morning application was made to Judge Pratt, in Special Term of the Supreme Court, for an order vacating the appointment of Mr. Chauncey, the receiver. President Ropes was the petitioner, and in his petition he said:That since the appointment of said receiver the trustees of defendant have made a careful examination of the affairs of defendant and of its assets and effects and liabilities; that it appears on said examination that the defendant is solvent and able to pay the liabilities in full. and that its capital stock is not impaired to a greater extent than one-half thereof; that a meeting of the stockholders of said defendant was held on the 5th day of August, 1873, and that at such meeting the said stockholders agreed to pay in to defendant fifty per cent on the capital stock paid in by them, and some of said assessments have now been paid in; that to secure the solvency of defendant the twelve directors hereinatter named have executed, made and delivered to defendant their five joint and several promissory notes, each for the sum of $100,000, which the defendant holds as security for the payment to it by all of the stockholders of the assessment so agreed to be made and paid on the capital stock of the defendant; that said notes have been executed by Henry E. Pierrepont, Edward Harvey, Henry Sanger, Seymour L. Husted, Alexander M. White. James 8. Rockwell, William C. Kingsley, James D. Fish, Alexander McCue, John Halsey, Daniel Chauncey and Josiah P. Low: that said persons are of abundant responsibility, and the delivery and execution of the same is simple security not only for the payment in full of the liabilities of de fendant. but for the making good of its entire capital stock of $500,000; that defendant believes that it is able now to pay all its liabilities and to successfully carry on its business. Wherefore defendant prays that the order made by this Court on the 19th day of July. 1873, granting an injunction against the defendant and appointing A receiver of its property and effects be vacated, and that the said receiver be ordered to pay over and return the assets of defendant, and that defendant may have such other and further relief in the premises as may be RIPLEY ROPES, President. just. The appointment of receiver was vacated, and the Judge directed "That said receiver pay over and deliver unto the defendant all the funds, assets, property and effects of said corporation in his hands or custody and take the defendant's receipt therefor, and the said receiver present his accounts within five days to Jesse Johnson, who is hereby appointed referee to examine and take proof as to the same, that said referee report thereon to this Court with all convenient speed.

13. August 11, 1873 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, August 11, 1873

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r NEW YORK CITY. e NEW YORK, August 9.-At the reorganization of the directory of the Atlantic & Pacific Railroad Company to-day, Thomas A. Scott was elected President, 0 R. W. Pierce Vice President and general manager, and Gen. Clarton B. Fisk 8 Treasurer. John Edgar Thompson, Thos. e A. Scott, Altred L. Dennis, and David t Solomon, of the Pacific road, were chosen 5 as directors. Michael Ruberry, of No. 100 Wickoff street, Brooklyn, who quarreled with his mother and aunt on the night of the 4th inst. has been arrested on a charge of tatally injuring the latter. The friends of Capt. Hadwin, murdered in Green street Monday night, state that he was also robbed. The members of the Masonic Fraternity of Fall River, Mass., where Hadwin belonged and leaves a wife and children, have arrived here to take charge of the body. Michael Jordan, a seaman on the ship Hamilton Fish, has been held for examination on the charge of stabbing John Alca, the mate, during the voyage to this port from Liverpool. Jordan and his shipmates say the stabbing was done in self delence, and that the passengers as well as the crew were badly treated by the officers of the ship, especially Capt. Bryant and the first mate. The sailors are supported in their statements by written charges signed by the passengers. H. Tintetorote committed suicide in Hoboken this morning. He was a man of large means and came to this country short time ago on account of a dispute about a game of billiards with his brother, with whom he was in business. He willed bis head for dissection, and the remainder of his body and $260 to his brother-in-law, with whom he lived. The Brooklyn Trust Company resumed business today. The paying and receiving tellers were kept tolerably busy; the former by contractors, mainly withdrawing the deposit to pay the laborers. The counsel for the corporation give the opinion that the Police Commissioners have no authority in law for their action of a few days ago, in prohibiting the movement of processions with arms through the streets. New York Typographical Union No. 6 has a crowded festival this evening in Lion Park. The proceeds are to assist in building the proposed Typographical Institute in this city. Blacque Bey, the Turkiah Minister, among musc sailing to-day for Europe. The mortality returns give the deaths this week at 740, against 889 the previous weak. QUARANTINE, STATEN ISLAND, August 10.-A fire broke out this atternoon in thestore room of the New York LightHouse. Everything in the store room was destroyed. Loss unknown. 8

14. August 22, 1873 New-York Tribune New York, NY

Article from New-York Tribune, August 22, 1873

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# A RECEIVER DECLINES HIS FEES. The Brooklyn Trust Company has received a report from the late Receiver, Daniel Chauncey, showing that he has collected $1,115,828 40; disbursed $20,388 70; and paid over $1,085,439 70. Mr. Chauncey was entitled to $20,000 in fees, but declined to make any charge. Charles R. Marvin and A. B. Baylis have been elected Directors in place of Martin Kalbfleisch, deceased, and Cortlandt A. Sprague, resigned, and William R. Bunker has been appointed Secretary, in place of M. T. Rodman, resigned.

15. August 25, 1873 New-York Tribune New York, NY

Article from New-York Tribune, August 25, 1873

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THE MILLS ESTATE INSOLVENT. It has been ascertained that the estate of the late E. 8. Mills will prove insolvent. He owned nearly 100 houses in various parts of Brooklyn. but these were mortgaged within two-thirds of their value. The indebtedness of Mr. Milla included a large number of notes which were drawing ruinous interest. In addition to these was his indebtedness to the Brooklyn Trust Company. The creditors of Mr. Mills, it seems, are unwilling to take for their due property so heavily mortgaged as that which he left behind, and it will be controlled by the relatives, who, it is understood, will buy up the mortgages and foreclose them. The indebtedness of Mr. Mills, including mortgages. will amount to about $500,000. The Brooklyn Trust Company, since it resumed, has been doing a safer business, though not as large a one as it did before. The Company has no Clearing-house agent, and hence does notexceed its authority by acting as a bank of discount, as it did previous to its suspension.

16. September 1, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 1, 1873

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CHAUNCEY WAS APPOINTED REHOW CEIVER. "18 OUR JUDICIARY CORRUPT q" From The Brooklyn Press, Aug. 31. DEAR CULLEN: Do you want to see me 1 P. Come over at once or send McC. The foregoing memorandum, in itself and without explanation would, indeed, be an enigma to the readers of The Sunday Press did we not give some explanation. We give it, and leave comment to the public. This note, the original of which is now in our possession, was addressed to the Assistant District-Attorney, Mr. Cullen, who 18 also one of the private attorneys for the Brooklyn Trust Company, and a nephew of Judge McCue (one of the directors of the same corporation), by Calvin E. Pratt, a Justice of the Supreme Court of the State of New-York. It was written and delivered just one hour before Mr. Cullen applied to Judge Pratt for the appointment of a Receiver for the Trust Company. Upon that application, so made, Judge Pratt appointed D. Chauncey as Receiver of said Trust Company-he at the same time well knowing that Chauncey was one of the directors of the defaulting bank. "Come over at once or send McC.," means that if Cullen could not see him (Judge Pratt) at the time he was "on hand" for the appointment of the Receiver, he should send the Judge of the City Court, the attorney and counsel of the Trust Company, and his own uncle, Alexander McCue, to arrange matters before the affair was formally brought into court, and under the notice of the public, and its most faithful representative, the public press.

17. September 18, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 18, 1873

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# STOLEN BONDS IN SPRAGUE'S HANDS. Several weeks ago it was discovered that $150,000 of these bonds had been hypothecated in Wall-st. by White. Of course, being stolen bonds, they are valueless to those who have loaned money on them. The Attorney of the towns at once informed Mr. Ropes of the Trust Company of this discovery that bonds supposed to be in its safe keeping had been sold on the street, and demanded an examination of the trunk which had been carefully sealed when first put for safe keeping in the bank. But no examination was made. Later, several other small lots were found in New-York, the numbers taken down, and found to correspond with those of the bonds supposed still to be in the bank. This representation did not induce President Ropes, who insists that all the robberies have been made public, to examine the trunk. But finally on Tuesday last THE TRIBUNE published a list of securities turned over by Sprague to Controller Schroeder to make good his defalcations, and among them were $75,000 of the stolen bonds. How they had come into Sprague's hands remains to be learned. This information was no sooner published than the Trust Company was told that Mr. Warner had proof of $225,000 of the bonds having been stolen from their keeping, and at last Daniel Chauncey, Alexander McCue, and Henry Sanger were set to work to count the bonds. The trunk had been moved to the office of the Brooklyn Safe Deposit Company, and here the committee proceeded to count the bonds. The full results of their examination are still concealed, but Daniel Chauncey yesterday admitted that one half the total deposit had disappeared, and the counting was not yet finished. # HALF A MILLION GONE. It was subsequently learned that over half a million of the bonds were gone and it is believed by those who have been insisting on an examination that less than a quarter of the original deposit remains. The responsibility of the Company in this matter is probably a question which the law will have to settle. Mr. Ropes has not denied the responsibility of the Trust Company yet, but has said to Mr. Warner that he thinks Mr. Mills exceeded his authority. But Mr. Warner had previously examined the charter, and holds that the authority of the President of the Trust Company was ample, a provision of the Charter having been obtained for this especial purpose. Originally the capital of the Company was $250,000, but it was doubled to increase the business. Mr. Lyman, of A. A. Low & Co., gave his individual check for the new stock to enable Mills, as the latter once boasted, to go into court and swear that the stock was subscribed and paid for, and the check was then returned and the stock sold elsewhere. At this time the charter was amended to make the Company a bank of special deposit of trust funds. The liability of the Company therefore cannot be very seriously disputed. The Trust Company is claimed also to have been a party to the contract. The truth is, however, that only Fish, McCue, and Mills of the Trust Company knew of the contract. James D. Fish certainly did, and admitted as late as June last that the Trust Company was building the road. McCue's connection with White in the Lathrop Sewing-Machine Company indicates his intimacy with this reckless speculator, and indicates that he was a partner in the swindling operations by which the Willimantic road was robbed and made bankrupt. In Controller Schroeder's statement of the securities returned by Sprague, of which the stolen $75,000 of bonds is a part, there is also an item of $5,040 of coupons of interest due on railroad bonds for May and November. These coupons are supposed to be for 1872, and were long since returned to the Company as canceled, though it would now seem they have not been. Of course the $75,000 of stolen bonds are worthless. Heretofore President Ropes of the Trust Company has claimed that the town orders held by the Company were a fair security for Rodman's thefts. But as the towns to which they were directed have absolutely refused and will not indorse any more bonds, this $40,000 of Rodman's "overdrafts" may be considered to have disappeared. # THE OBLIGATION OF THE DIRECTORS. At the time the Brooklyn Trust Company suspended and an effort was making to revive it, a statement was published that the directors had entered into an "obligation" to make good any deficiency to the extent of $500,000. A question has been raised as to the nature of this obligation, and whether it has any legal or binding effect. Inquiries at the office of the Company yesterday elicited the information that the "obligation" consisted merely in the directors giving their individual notes in sums of about $100,000 each to the Company. If there was any certainty that these notes would be paid, or could be collected at maturity, they would add to the safety and responsibility of the Company; but it is claimed that if a suit were begun to enforce payment of these notes, the drawers could plead in bar of such action that no consideration was given.

18. September 18, 1873 New-York Tribune New York, NY

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WALL-ST. ALARMED. A BREAK IN THE MARKET. STOCKS DECLINE FROM 1 TO 71 PER CENT-THE NEWYORK AND OSWEGO MIDLAND RAILROAD GOES TO PROTEST-GROUNDLESS REPORTS OF OTHER FAILURE8. The "bears" held high carnival in Wall-st. yesterday. With the opening of business on the Exchanges they began the circulation of doleful rumors of more than ordinary calamities throughout "the street." Impending failures of extraordinary magnitude were mysteriously hinted at early in the morning, but no positive details could be gleaned. As the day wore on, however, the names of several railroad companies became linked with the evil rumors, and reports of the failure of their promoters were freely circulated where they would do the most harm. New railroad companies, with incomplete or freshly completed roads, were fiercely assailed and with great effect in the stock market. The rumors of the previous day in relation to the entanglement of the Chicago, Rock Island and Pacific Railroad with the Canada Southern Railway were revived, and it was freely asserted that the former had loaned large amounts of money to the latter, in order to enable it to pursue the work of construction. This rumor, however, was officially denied by the officers of both companies. Each rumor seemed tolgrow as it proceeded from mouth to mouth, and the general result was a feeling of depression and distrust even in the minds of the most sanguine. The more conservative were at first disposed to resist the coutagion, but the ofttold stories of dishonesty and disaster proved too much for their logic. Whenever the public-spirited "bull" ventured to speak of the ** glorious future of the great Republic," he was met with the familiar details of the ruin of the Brooklyn Trust Company, city defalcations, the arrest of City Treasurer Sprague and his accomplice Rodman, the failure of the New-York Warehouse and Security Company, the embarrassment of Messrs. Skiddy and Gandy. the entanglement of the Missouri, Kansas and Texas Railroad, the suspension of Kenyon Cox & Co., and the troubles of the Canada Southern Railway. If the " bull " in an enthusiastic and prophetic outburst dwelt upon the good time soming, he was silenced by the hard logic of the facts of the demoralized present. At about noon it became generally known that the New-York and Oswego Midland was the railroad company in trouble this time, and it was asserted that George Opdyke & Co., who were its financial agents, had suspended, or were about to do so. Inquiry developed the fact that the construction and equipment "paper" of the Company had gone to protest, but that George Opdyke & Co. had not suspended and were doing business as usual, though greatly annoyed by the irritating rumors in circulation about them.

19. September 18, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 18, 1873

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NEW YORK. An Exciting Day on the Stock Exchange. Special Dispatch to The Chicago Tribune, NEW YORK, Sept. 17.-The bears held high carnival in Wall street to-day. With the opening of business on exchanges, they began the circulation of doleful runiors of more than ordinary calamities throughout the street. Impending failures of extraordinary magnitude were mysteriansly hinted at early in the morning, but no positivo details could be gleaned. As the day wore on, however, names of several railroad companies becaine linked with the evil runors, and reports of the failure of their promoters were freely circulated where they could do most harm. New railroad companies, with incomplete or freshly completed roads, were fiercely assaulted, and with great effect in the stock market. The rumors of the previous day in relation to the negotiations of the Chicago, Rock Island & Pacific Railroad with the Canada Southern Railroad were revived, and it was freely asserted that the former had loaned large amounts of money to the latter In order to enable It to pursue the work of construction. This rumor, however, was officially denied by the officers of both companics. Each rumor seemed to grow na it proceeded from mouth to mouth, and the general result was a feeling of depression and distrust, evon in the minds of the most Banguine. The more conservativo were at first disposed to disbellove, but oft-told stories of dishonesty and disaster proved too much for their logic. Whenever a public spirited bull vontured to speak of the glorious future of the great Ropublic, he was met with the familiar details of the ruin of the Brooklyn Trust Company, city defalcations, arrent of City Treasurer Sprague and his accomplice, Rodman, the failure of the New York Warehouse & Security Company embarassment of Mesare. Skiddy and Goudy, entanglement of the Minsourl, Kausan & Texas Railroad, suspension of Kenyon, Cox & Co., and the troubles of the Canada Southern Railway. If the bull, in an enthusiastic and prophetio outburst dwelt upon the good tiruo coming, he was silenced by the hard logic of facts of the domoralization prevailing. At about noon it becamo generally known that the Now York & Oswego Milland Railroad Company was in trouble, It was asserted that George Opdyko & Co., who were its financial agents, had suspended, or were about to do 80. Inquiry developed the fact that the construction and equipment paper of the Company had gone to protest, but that George Opdyko & Co. had not suspended, and were doing business as usual, though greatly annoyed by the rumors in circulation about them. On the strength of the alleged embarrassments of Geo, Opdyko & Co., and formal protesting of New York & Oawego Midland Railroad, there was a general rush to sell stocks by frightened holders. The depression was vigorously assisted by the persistent hammering of the bears, who fairly jumpod upon the market. Amid the most intense excitement prices declined from 1 to 7% per cent. Erio declined from 57 5516 ; Harlem from 128 to 127% New York Central from 1001 to 99 61. div. Lake Shore from 01 to 0016 Northwest from 571/5 to 50; R. I. from 102% to 100% St. Paul, from 451/ to 4132 ; Western Union, from 89 to 87 % Pacific Mail, from 43M to 41% As usual, Jay Gould WAH supposed to be the instigator of the whole movement. He is supposed to be short of the general stock market, with perhaps the exception of Northwestern and St. Paul. It will be observed that the heaviest doclino has been in those stocks, which he is supposed to be carrying. It is believed, however, that Mr. Gould hns largoly profited by the decline in stocks, and that if he lost money by bulling gold, ho has retrieved his losses by skillful manipulation of the stock market. To the Associated Press. NEW YORK, Sept. 17.-The wifo of the Rev. Mr. Wiswell, of St John's Chapel, in this city, has aued her husband for the portion of her property which he has converted to his own use. Sheris the daughter of the late Bishop Borrian, of Trinity Church; was worth $70,000 when alio was married, and charges Wiswell with robbery and infidelity,

20. September 19, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 19, 1873

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# DANIEL CHAUNCEY'S EVASIONS. A TRIBUNE reporter called on Daniel M. Chauncey yesterday to inquire what progress had been made in ascertaining the contents of the trunk containing the Willimantic Railroad bonds. At first Mr. Chauncey was disinclined to converse on the subject, remarking that he "had nothing to say." After a short pause, however, he volunteered the information that the trunk containing the bonds mentioned in yesterday's TRIBUNE was the private property of Mr. Rodman. "The Brooklyn Trust Company," said he, "has nothing to do with it, and never had. It was deposited in the Company's vaults the same as thousands of other trunks and packages are, at the sole risk of the owner. The Company knows nothing of their contents and does not hold itself responsible for their safe keeping." Q. Did not Mr. Mills, as President of the Company, give his receipt for the trunk? A. No; at least there is no evidence on the books of the Company that any such receipt was given; when I was appointed receiver of the Company Mr. Rodman sealed up the trunk, and it was turned over to my hands with other private packages and deposited in the Safe Deposit Company; whatever was in it then is in it now. Q. It is not charged, I believe, that you or any one since you were appointed receiver, has meddled with the contents of the trunk, but that the bonds were stolen, if stolen at all, before Mr. Mills died. A. Well, the inference is liable to be drawn that the Trust Company is in some way mixed up with it, whereas it was a private deposit in the vaults, and the Company had nothing to do with it. Q. That would depend, would it not, on whether the Company was authorized by its charter to receive such securities in trust (and that is not denied), and whether Mr. Mills gave his receipt for them as President of the Company, as the claimants assert? A. We claim that no such receipt was ever given; there is no evidence of it in the records of the Company, and nothing to show that the trunk was ever placed in the custody of the Company. Q. Well, you have not answered the question that I called more particularly to inquire about, and that is what has been found in the trunk since it was opened by you and Messrs. McCue and Sanger-what amount of bonds did you find in it? A. That question I decline to answer; it is a matter which we think the public has nothing to do with, and is not entitled to make inquiries. Having failed to get the knowledge he was in search of the reporter bid Mr. Chauncey good morning, and was about leaving the office when he was called back. "One word more," said he, "all we have got to say on This subject you will find in The Brooklyn Eagle to-night. That was The Eagle man that left here as you came in." Consultation of The Eagle led to the discovery that Mr. Chauncey had corroborated every material point of the story as detailed in yesterday's TRIBUNE, and contented himself with disputing unimportant statements. For instance, he admitted he was a member of the Committee directed to examine the trunk containing bonds, but denied he was Chairman. He insisted that it should be put in print that he had not once thought Judge McCue was interested with Mills and Rodman, forgetting how recently he had made that declaration in anreserved but not confidential conversation with a competent witness In every other respect Mr. Chauncey corroborated the story of the long conversation between himself and Mills relative to the loans; he said: Mr. Rolfe and I did have such an interview with Mr. Mills, and Mr. Rodman was present. I cannot remember the exact words, but an interview of that character did take place. So far as that is concerned, the statement is true. We found that trunk there, locked, and we were informed that it belonged to Rodman, and to Rodman alone, and it had nothing whatever to do with the Trust Company, a statement, which we believe to be true. It was sealed up as Rodman's property, and taken at once to the vaults of the Brooklyn Safe Deposit Company. The trunk was sealed, almost directly after Mills's death, and sent to the Safe Deposit Company, where it now is. There is much more of like iteration and reiteration, but no denial of any fact stated by THE TRIBUNE affecting the truth of the narrative. Mr. Chauncey insists twice in the "interview 'that he never doubted McCue, as declared, and that plea for peace with the City Judge THE TRIBUNE reproduces while declaring its first statement true on competent authority, which Mr. Chauncey can learn by inquiring at this office, and which he will not again deny as hastily. His brother stated, yesterday, in THE TRIBUNE'S Brooklyn office, that Mr. Daniel Chauncey was amazed to know how the conversation had been reproduced. It will probably not less amaze Mr. Chauncey to learn that he is the authority for it, and that it was taken down from his own lips by one who was not an eaves-dropper and who betrayed no confidence in reporting it. And to this same person he stated his suspicions of Judge McCue.

21. September 21, 1873 New Orleans Republican New Orleans, LA

Article from New Orleans Republican, September 21, 1873

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The New York Panic-Will il Affect New Orleans. The causes of the financial calamity in New York may be sought at many sources, but not the most remote will be found the following: For some time past the financial centree of Europe have been flooded with our railroad securities. It has become difficult to negotiate these bonds there, and of late brokers in this city have received private circulars, desiring them to place bonds here which ordinarily would have found a ready market abroad. The large houses in New York have been forced to carry these bonds to an enormous extent. Their immense advances to railroads, the Canadian line especially, have embarrassed them. Add to this a gradual loss of public confidence in houses which have hitherto received implicit trust. The beginning of this change in senti ment was the defalcation in the Brooklyn Trust Company and the exposure of the defalcations of its president and treasurer. The suspension of Jay Cooke & Co. took the public by surprise and completed the panic which was inaugurated by the crash of the Brooklyn Trust Company. The succeeding failures naturally result from this, and show that there has been an over-trading in railroad securities that the capital of the country will not bear. The treasury of the United States would have tried to help Jay Cooke & Co. three days earlier if it would have been of any service. But it would have been a mere drop in the bucket. It is noticeable that no failures have ec. curred among the prominent merchants. They have been confined almost entirely to Wall street. The merchants have been exceeding conservative in their dealings dur. ing the past year, and have taken care not to have a balance against them. The im. ports have about equaled theexports. But although the failures are confined to the speculators of the Stock and Gold Exchange, other H interests are materially affected. Other stocks than those which have become deeply involved in the collapse have depreciated. A comparison of the quotations be. fore the failure of Jay Cooke & Co., say those of September 16 with those of to-day, will forcibly illustrate this:

22. September 23, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 23, 1873

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$1,250 were reported from the Committee on Finance, and were ordered paid. Alderman Wylie offered the following preamble and resolution: Whereas, It is of the utmost importance that the City of Brooklvn's funds should be placed in banks and institutions beyond the conception of a doubt as to their stability and soundness. Whereas, A large amount of the funds of the City of Brooklyn are now in possession of the Brooklyn Trust Company: and Whereas, The said Brooklyn Trust Company has not the confidence of the entire public, it being evident that it is on the verge of an extended lawsuit; therefore Resolved, That the City Treasurer and all other officers of the City Government having moneys or securities of the City of Brooklyn deposited in the Trust Company, be and they are hereby directed to cause the same to be withdrawn forthwith from said Brooklyn Trust Company, and be placed in such banks or institutions as may be for the best interests of the City of Brooklyn and in accordance with the law in relation thereto, and to report to this Common Council the amount of such funds, and in what banks or other institutions said moneys have been placed. Alderman Wylle defended this resolution on the ground that a lawsuit would be brought by the city against the Trust Company in a few days, and that it was the Common Council's duty to protect the city funds. Aiderman Richardson made a long oration in favor of the Trust Company's management, and concluded by offering a set of resolutions condemning Alderinan Wylie for his action. Alderman Rodman followed in a long defense of the Trust Company, in which he said: "God alone can destroy the Trust Company, but by human means this cannot be done." The speaker said that he would not go into details about the Company. He went on, however, to pronounce an extended eulogy on Mr. Ropes. He abused THE TRIBUNE for the part it had taken in exposing the frauds of the Trust Company, and accused Alderman Wylie of being merely the tool of Brooklyn's enemies. Alderman Taylor spoke of the abuse which Mr. Ropes had received from a subsidized press," but forgot to mention either the assets or liabilities of the Trust Com pany. He defended Mr. Ropes in a set speech of nearly half anthour. He denounced Alderman Wylie's action as the result of a selfish and malignant spite against a fellow-member of the Board. Alderman Wylie replied that it was not his business to make spread-eagle speeches. He had nothing to say against Mr. Ropes personally. He spoke only of the Brooklyn Trust Company. He had a right to an opinion about where the funds of the city should be placed. The resolution he had offered of his own accord, and at the of no one. He was not in the Board to advocate set of men; he was there in prompting any the interest in the matter, of the people. Time would justify bis course and he did not mind personal abuse. For the man who had been abusing the Trust Company month after month, to become in one week stockholder, trustee, and president, was certainly a strange financial transaction. The resolutions he had offered were in the interest of the tax payers of the city. Alderman Ropes blamed Alderman Wylie for :not telling him beforehand what he was about to do. He did not wish to make*the matter a personal one. Mr. Ropes then went on to defend his actions as an Alderman. Continuing he reiterated his previous assertions as to the way in which the defalcations of Sprague and Rodman were discovered and said that 80 far as human agencies were concerned, he doubted the possibility of breaking the Trust Company." When the panic started on Wednesday last, he called together the 12 trustees who had signed the paper agreeing to keep up the Trust Company, and on Saturday they had put $100,000 in cash in his hands. They had paid, aside from this, nearly $300,000 since he took charge of the Company. Five hundred thousand dollars would be paid in- before many days. He did not want to go into the Trust Company. He was urged to do 80. He pleaded for Alderman Wylie, and asked the Board not to censure him for what he had done in an impulsive moment. Alderman Clancey moved an amendment to the resolutions of censure offered by Alderman Richardson, but to entertain it. a vote of seven to nine. then the latter lost by refused These Alderman resolutions taken Alder- Wylie were voting in the affirmative. No vote was on man Wylie' presolution, the members of the Board evidently not being desirous of committing themselves.

23. December 17, 1873 New-York Tribune New York, NY

Article from New-York Tribune, December 17, 1873

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BROOKLYN DISCLOSURES. # EX-TREASURER SPRAGUE'S DEFENSE. SIGNIFICANT HINTS DROPPED BY D. P. BARNARD. The letter of ex-Judge More, which was published in yesterday's TRIBUNE, stating that his client, ex-Treasurer Sprague, was innocent of the charges made against him for malfeasance in office, and that other persons than Sprague and Rodman were responsible for the defalcations, caused considerable wonderment yesterday in Brooklyn. The statement of Mr. Warren that "it was the constant practice of somebody, during all of Mr. Sprague's term of office, to use the money for unauthorized purposes," sustained Mr. More's allegation that neither Sprague nor Rodman was a defaulter, but the balance was held" under cover" with the Trust Company. The statement of an official in the District-Attorney's office, made to a TRIBUNE reporter soon after Mr. Britton's return from Europe, to the effect that it had been discovered that amounts of money had been drawn from the Treasury from time to time by persons connected with political organizations, was recalled and cited as furnishing a reason why Mr. Britton had not prosecuted Sprague and Rodman. A TRIBUNE reporter was told yesterday by an influential and trustworthy resident of Brooklyn that Rodman had informed him a few weeks ago that it was positively determined that Sprague should never be tried. Being asked how he knew this, he replied that he had positive evidence of the fact, and bad received the assurances of those who controlled the matter. He was certain that the case would never be called. Mr. Britton, in speaking of the subject yesterday, said that as the investigation of the charges against himself had consumed more time than he had anticipated, he had concluded not to try Sprague this term. A TRIBUNE reporter called upon several persons yesterday to obtain their views in regard to the letter of ex-Judge More. Daniel Chauncey, late receiver of the Brooklyn Trust Company, was not at his office, but the views of his brother were obtained. He said that he did not see how the statements of ex-Judge More could be correct. He referred at first to the statement that before Sprague would accept the office of Treasurer, those in the interest of the Brooklyn Trust Company agreed to procure the passage of a law authorizing Sprague to appoint a deputy, it being understood that he was to appoint Rodman, for whom the Trust Company was to vouch and go security. Mr. Chauncey said that according to Mr. Schroeder's letter and Mr. Warren's statement, $300,000 had been retained by somebody a few weeks after Sprague had been in office, and before Rodman had been appointed. He said that the law under which Rodman became Sprague's deputy was passed, as he understood it, simply to provide for an assistant who should aid in transacting the duties of the office. He thought that the letter of Mr. More was written for the purpose of creating a sentiment in favor of Mr. Sprague, and in accordance with the principle that lawyers generally recognize, that they are justified in doing everything that is honorable to arouse sympathy for their clients. He added that he would not be in Mr. Sprague's position for thousands of dollars, and was satisfied that the latter was responsible for the thefts. D. P. Barnard, associate counsel in the case of Sprague, stated that he thought that Judge More had been exceedingly indiscreet in publishing their defense, and he feared that it would lead to the disadvantage of their client, because, in a measure, is gave the proseen-tion information in regard to their plans. The statement of Judge More, he said, does not comprise the whole defense, and he himself did not feel at liberty to furnish in fuil what they were prepared to prove when the case should come to trial. Mr. Barnard said he was satisfied that what had already been published concerning their defense had induced the District-Attorney to postpone the trial of the case, and if all the facts which were in the possession of himself and his asso-ciate could be given to the public it would tend to pre-vent what they most desired, an expeditious trial of their client. He said the indictments included 70 counts, consisting of 12 offenses. It would be the duty of the District-Attorney to select some one of these offenses for trial, and after it should elearly appear which one of the offenses had been selected the defense could demand that all the evidence should be confined to proving a single offense charged. He felt satisfled that after the specific charge had been decided upon it would not take more than a few hours to prove Sprague's complete in-nocence of the charges brought against him. He had in his possession documentary evidence, and had secured the testimony of certain persons who would amply ro-fute every charge made by the District-Attorney. Mr. Barnard's son and partner who was present, said that the evidence would disclose that the persons who would be discovered to have been guilty of malfeasance were connected with the Trust Company. He said it was not true, as stated in Mr. Schroeder's letter, that Sprague had appropriated $300.000 before Rodman had assumed the duties of his position. The fact was that Rodman had all the handling of the money from the time the Company began operations, although the was not formally appointed deputy until the law was passed by the Legislature empowering the Company to employ such an officer. He agreed with his father that it would be injurious not only to the interests of Mr. Sprague but to those of the Reformers of Brooklyn to divulge at the present the startling evidence which they were prepared to advance if the case could only be brought to trial. The term of office of the Attorney-General would soon expire, and Mr. Britton had shown his disinclination to try the case. He courted investigation, and to that end thoughi it wise not to let the prosecution understand the amplitude of the defense.