14922. Union Bank (Brooklyn, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 30, 1908
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: f20fa383

Response Measures

None

Description

The institution (originally Mechanics and Traders' Bank) suspended during the 1907 panic on 1908-01-30, was reorganized and reopened as the Union Bank of Brooklyn on 1908-08-17, and was taken in charge by the New York State Superintendent of Banks and closed (placed in liquidation) on 1910-04-05. No discrete depositor run on this bank is described in the articles; the final action was a state takeover and liquidation. I classify the overall episode as suspension_closure because the bank suspended and ultimately remained closed with state control/liquidation. Dates taken from newspaper reports; day for the Jan 1908 suspension is reported as January 29–30 in contemporaneous pieces, recorded here as 1908-01-30 per sources.

Events (5)

1. January 30, 1908 Suspension

Cause: Macro News
Cause Details: Suspended during the Panic of 1907/financial panic that precipitated heavy withdrawals and loss of Clearing House support; bank closed temporarily in Manhattan January 1908.
Newspaper Excerpt: The Mechanics and Traders' Bank, which suspended on January 30 last as a result of the panic, tying up over $10,000,000 of deposits,
Source: newspapers

2. August 17, 1908 Reopening

Newspaper Excerpt: The Mechanics and Traders' Bank, which suspended on January 30 last as a result of the panic, ... was reopened yesterday as the Union Bank of Brooklyn. The main office ... was thronged all through banking hours by depositors who wished to deposit money, and there were few withdrawals. Edward M. Grout ... said that the day's deposits were over two and one-half times the amount of the withdrawals.
Source: newspapers

3. April 5, 1910 Other

Newspaper Excerpt: The decision to place the Union bank of Brooklyn in liquidation made an unpleasant impression ... The decision to place the Union bank of Brooklyn in liquidation made an unpleasant impression, although no other institution is supposed to be directly involved in the affair.
Source: newspapers

4. April 5, 1910 Suspension

Cause: Government Action
Cause Details: Board requested Superintendent of Banks to take possession because of unsafe condition from slow/illiquid assets and inherited bad loans; superintendent then took control and bank was placed in liquidation.
Newspaper Excerpt: After a stormy session last night ... the board reached the conclusion that the bank should not continue in business. The board accordingly requested the superintendent of banks to take possession. Pursuant to that request ... the superintendent has taken possession of the property and the business of the corporation.
Source: newspapers

5. April 6, 1910 Other

Newspaper Excerpt: It is believed that depositors will not experience any losses from the affair, and that the worst thing that will happen to them will be that their money will be tied up for a little while.
Source: newspapers

Newspaper Articles (21)

1. August 6, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 6, 1908

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UNION BANK DIRECTORS. New Members of Board Announced -To Open Next Week. The names of the new directors of the Union Bank, formerly the Mechanics and Traders', were announced yesterday. Announcement also was made that the rehabilitated institution, which has been in suspension since last January, positively would be reopened next week, although the day has not been definitely set. The new directors are Bridge Commissioner Stevenson, Nathaniel H. Levi, president of the Broadway (Brooklyn) Board of Trade: ex-Representative Frank L. Wilson; Jacob L. Greatsinger, former president of the Brooklyn Rapid Transit Company; John R. Stine, president of the New York Leather Belting Company: Thomas J. O'Donohue, William H. Lynn, E. J. Stalker, formerly cashier of the Chase National Bank, and William H. English, vice-president of the Empire Trust Company. The five directors elected in January, who took office a few days before the bank closed, will continue as members of the directorate. They are C. E. Donnellon, of the Chauncey Real Estate Company; S. J. Harding, E. A. Fitter, Paul Grout and Edward M. Grout. Of the old board the following, who represent various branches of the bank, are to remain: Henry Albers, Barth S. Gronin, W. F. Corwith, William Strasser and Charles Straus. The directorate is thus cut down from twenty-four members to twenty. Edward M. Grout, president of the reorganized bank, said that the banking interests from whom the credit of $1,000,000 was obtained without commission or bonus are the Metropolitan Bank and the Empire Trust Company. At the meeting yesterday steps were taken in compliance with the report of Clark Williams, Superintendent of State Banks, to change the name of the institution to the "Union Bank of Brooklyn" and to change its place of business to the present Union branch, at No. 44 Court street.

2. August 12, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 12, 1908

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NEW BANK INQUIRY HELPS CLARK WILLIAMS. Kings District Attorney's Office Probing Pre-Panic Troubles. At the suggestion of Clark Williams, State Banking Superintendent, the District Attorney's office of Kings County within the last few days has been making an investigation into the conditions which led up to the recent financial troubles in the Mechanics and Traders' Bank. The institution temporarily closed up while David A. Sullivan was president, five months ago. It is now back on its feet, and on Monday it will reopen as a strictly Brooklyn concern under the presidency of ex-Controller Edward M. Grout. It will be known henceforth as the Union Bank. Mr. Williams, it is understood, did not ask the co-operation of the District Attorney earlier, as the bank was being reorganized and the announcement of an investigation at that time would perhaps have been injurious to the concern. Now it is again on the highway to health. Assistant District Attorney Francis X. McCaffry has been placed in charge of the investigation. and has examined several witnesses as to the transactions that preceded the closing of the bank. What he has learned he will lay before the next grand jury, which will have its first session on August 25. It is said that he has discovered several forgeries that will involve important persons in banking circles. When asked last night to tell what he had been requested to do by Mr. Williams and what he had 80 far discovered, Mr. McCaffry said: "Mr. Williams asked the District Attorney's office to investigate the conditions that led up to the suspension of the bank. The investigation was not directed against any particular person. It does not affect the bank 2S it is now organized in any way. There is no reason for any one interested in the Union Bank to be alarmed by the investigation into the affairs of the Mechanics and Traders Bank Mr. Williams discovered certain transactions which he thought should be looked into by the District Attorney's office of this county." Mr. McCaffry said he had the power of tracing into New York County or any other county of the state any transaction which had begun in Kings County, but he spoke as though he had not found It necessary to cross the river.

3. August 18, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 18, 1908

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UNION BANK OPENS Old Mechanics and Traders' Now a Brooklyn Institution Solely. The Mechanics and Traders' Bank. which suspended on January 30 last as a result of the panic, tying up over $10,000,000 of deposits, was reopened yesterday as the Union Bank of Brooklyn. The main office. at No. 44 Court street, Brooklyn, was thronged all through banking hours by depositors who wished to deposit money, and there were few withdrawals. Edward M. Grout who succeeded David A. Sullivan as president, said that the day's deposits were over two and one-half times the amount of the withdrawals. Mr. Grout was well pleased with the opening day's business, both at the main office and at the seven branches, all of which are in Brooklyn. He said that he had received the promise of the hearty support of a large number of influential Brooklyn business men. The bank starts business with a capital of $1,000,000 and a surplus of over $800,000. When the Mechanics and Traders' Bank closed its doors its main office was at Broadway and Prince street, Manhattan, and it had two branches in this borough and eight in Brooklyn. Prior to the panic it had total deposits of over $24,000,000. but the heavy withdrawals of the panic period reduced the deposits by over one-half. The bank was a consolidation of the old Union Bank of Brooklyn and the Mechanics and Traders' Bank of this borough. Through the latter bank it had a membership in the New York Clearing House Association. The capital was increased to $2,000,000 at the time of the merger The depositors in the old Union Bank of Brooklyn did not like the idea of having the headquarters removed to Manhattan, and many left the bank After the suspension it was decided that the best thing to do would be to quit the Manhattan field altogether. and to this end the capital was reduced to $1,000,000. The mair. office at Broadway and Prince street was given up and the headquarters of the reorganized bank was transferred back to No. 44 Court street, Brooklyn, which was the old home of the Union Bank of Brooklyn before the merger. The old name was also restored. The branches at Times Square and Madison avenue and 59th street, this borough, were discontinued. as was one of the Brooklyn branches Manhattan depositors of the Mechance and Traders' Bank will not. however, be inconvenienced by the dropping of the Manhattan end of the bank's business. They will be paid off at the old main office and at the Times Square and Madison avenue branches, just as if the new bank were actually operating in this borough The plan under which the bank was reopened provides that depositors may withdraw 10 per cent on resumption of business, 15 per cent in four months, 20 per cent in eight months, 25 per cent in twelve months and the remaining 30 per cent in sixteen months. Prestdent Grout expects to be able to anticipate a number of these payments. The bank will now be conducted purely as a Brooklyn institution with no connections outside the borough. It is not a member of the Clearing House, the membership having been the property of the old Mechanics and Traders' Bank, and having been forfeited at the time the bank suspended. There has been an entire change of control and management. A majority of the stock is in the hands of three voting trustees-Morgan J. Brien, Mr. Grout and William H. English, vice-president of the Empire Trust Company. The new board of directors consists of Henry Albers, William F. Corwith, Barth S. Cronin, C. E. Donnellon, William H. English, E. A. Fitter, Jacob L Greatsinger, Edward M. Grout. Paul Grout, S. J. Harding, Samuel M. Jarvis, Nathaniel H. Levi, William H. Lynn. Thomas J. O'Donohue, Henry Ollesheimer, Edwin J. Stalker, James W. Stevenson, John R. Stine, William Strasser and Dr. Frank E. Wilson.

4. August 23, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 23, 1908

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BRYAN BEGINS SPEECHMAKING. "Mr. Bryan started on a seven days' trip, and began his speechmaking at Des Moines, Iowa. He attended a council of the state leaders in the afternoon and spoke on the tariff in the evening. After a three days' conference with his campaign managers in Chicago he will speak on the trusts in Indianapolis and on financial legislation in Topeka, Kan. His tariff speech was an attack on protection and an argument for a tariff for revenue only. He also advocated an income tax. "James Schoolcraft Sherman, the Republican Vice-Presidential candidate, received official notification of his nomination at his home in Utica. In his speech of acceptance he said that the overshadowing issue of the campaign was 'Shall the policies of President Roosevelt be continued?' not 'Shall the people rule?' Mr. Bryan's issue, because the people did rule. "Governor Johnson of Minnesota was renominated by the Democrats, and despite his reiterated statement that he would not run he accepted the nomInation. "The Appellate Division of the New York State Supreme Court decided as constitutional the legislative reapportionment act of 1907. The racetrack gamblers had counted in event of a contrary decision on unseating Senator Wallace, the loss of whose vote would have made a tie vote on the racetrack gambling bills." "Any more returning prosperity harbingers?" "The Mechanics and Traders' Bank, which suspended in Manhattan on January 30, reopened as the Union Bank of Brooklyn, with Edward M. Grout as president. The Commercial National Bank of Chicago made a study of commercial, financial and farm conditions and found that the conditions in all three show that a return to normal business times is under way. Another sign of returning prosperity was given by the New York Custom House receipts of Tuesday. They were $300,000, the largest of any day since the financial flurry."

5. April 5, 1910 The Richmond Virginian Richmond, VA

Article from The Richmond Virginian, April 5, 1910

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BIG BANK IN BROOKLYN IN HANDS OF EXAMINERS Institution Containing More Than $3,000,000 in Deposits Ordered to Suspend Business NEW YORK, April 5.-After a stormy session last night in the office of State Superintendent of Banks Cheney, examiners to-day assumed charge of the Union Bank of Brooklyn and its several branches. The bank has a paid in capital stock of $1,000,000, with individual deposits aggregating more than $3,000,000. Former City Comptroller Edward M. Grout is president of the corporation. Superintendent Cheney to-day issued the following signed statement regarding the affairs of the bank: "As a result of an examination the Union Bank of Brooklyn, just complet. ed by the banking department, a meeting of its directors, was held ast evening to consider whether the bank was not in an unsafe condition because of certain of Its assets, for the character of which the present management is not responsible. "After deliberation the board reached the conclusion that the bank should not continue in business. The board accordingly requested the superintendent of banks to take possession. Pursuant to that request, and the provisions of the banking law, the superintendent has taken possession of the property and the business of the corporation. No further statement will be made until the inventories have been completed." It is estimated that the bank examiners, in making their regular examination found that large sums had been loaned on paper which they did not be5 lieve was safe.

6. April 5, 1910 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, April 5, 1910

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BROOKLYN BANK, WITH $5,000,000 DEPOSITS, CLOSES Former Comptroller Grout, of New York City, President of Institution. NEW YORK, April 5.-The Union Bank of Brooklyn, a State institution with seven branches in various parts of Brooklyn borough, closed its doors today and was taken in charge by the State banking department. Edward M. Grout, former comptroller of New York city, is president of the institution, which has a capital of $1,000,000 and deposits, according to its last report, of more than $6,000,000. Inability to realize upon assets in time to meet the demands of the bank's business is assigned by President Grout as the reason for the closing. The bank was organized in 1908 and took over the business of the Mechanics and Traders' Bank, which closed during the 1907 financial panic. Causes which ante-date the present management and were beyond its control made it impossible to reestablish the bank, President Grout declared in a statement today. He added his belief that the assets were ample to pay depositors in full. It is not believed that the closing of the Union Bank will adversely affect any other financial institution. Its difficulties were internal and related to its affairs alone, it is officially declared. Superintendent Cheney has issued the following statement in regard to the closing of the bank: "As a result of an examination of the Union Bank of Brooklyn by the banking department a meeting of its directors was held Monday evening at the office of this department to consider whether the bank was not in an unsafe condition because of certain of its assets for the character of which the present management is not responsible. "After deliberation the board reached the conclusion that the bank should not continue its business. The board. accordingly requested the superintendent to take possession. Pursuant to that request and provisions of the banking law the superintendent has taken possession of the corporation." The Union Bank of Brooklyn was organized in 1908 and, according to its last official report, has a surplus of $669,300. deposits of $6,255,000, loans and discounts of $5,328,700 and cash holdings of $529,800. President Grant made the following statement: "The officers and directors of the Union Bank regret that they have found it impossible to reestablish the bank. They have spared no efforts to that end and believe that causes of their failure were beyond their control and antedated the period of the management. These causes, I ought to add. relate to this institution alone, and the closing of the Union Bank ought not to affect any other banks in any manner. "The trouble with us has been that assets are such that we have been unable to realize upon them in time to meet the demands of the business of the bank. I refer to the large amount of real estate, and the various claims whose payment is unavoidably deferred. These were all inherited by the present officers of the bank. The shortage of cash and a lot of assets expresses the situation briefly. "I have no doubt of the full payment of every deposit, as the assets are more than enough for that purpose."

7. April 6, 1910 The Washington Herald Washington, DC

Article from The Washington Herald, April 6, 1910

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New York, April 5.-Financial news today was not exceptionally notable, nor altogether favorable, but such as it was it was helpful to what Wall street speculators love to call "the constructive" side of the stock market. Announcement was made of the failure of the Union Bank, of Brooklyn, with deposits aggregating over $5,000,000. Five million dollars more gold was engaged for export, and the indications were that at least an equal sum might be further taken before the end of the week. Decided weakness again developed in various copper mining shares in the Boston market of the same general sort as that which has been exhibited in other directions for more than a fortnight past. On the other hand, the Brooklyn bank suspension was rightly regarded as being no more than an unavoidable result of the 1907 financial troubles, and one that has for a long time been considered inevitable in banking circles. It is believed that depositors will not experience any losses from the affair, and that the worst thing that will happen to them will be that their money will be tied up for a little while. Reduction for Time Money. Gold exports, present and prospective, were naturally regarded as being more or less of academic character, in view of an actual reduction to-day in rates for the use of time money and a distinctly easier tendency in call funds. Time money was quoted lower to-day than it has been at any time for several weeks, and the bulk of call money put out was below 3 per cent. The decline in copper stocks in Boston was looked upon as a marking down of values in many securities there that have hitherto been quoted altogether too high and for which there has been at no time recently other than a poor market. Interest in these stocks has been confined to a very few people, and has extended in only infinitesimal degree to the local financial community. Of all the occurrences of the day belonging to the usual class of stock market factors doubtless the one that excited speculative optimism more than anything else was an extreme break of fifty points in the price of some of the leading cotton options, due to the fact that last night and this morning there were heavy rains, snowstorms, and a general decided fall of moisture in the Southwest and in parts of Texas where drought conditions have lately been more severe than anywhere else in the country. As the wet weather extended considerably farther north, a good-sized break was also induced in the price of wheat. It goes without saying that anything that serves to increase the probability of large crops in the coming season is just now of the higest importance to the financial community. Later on to-day a partial recovery was made from the fall in cotton prices, but it is clear that indications for a big cotton crop, and, for that matter, for a large additions to the wheat crop, are much stronger now than they were a few days since.

8. April 6, 1910 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, April 6, 1910

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STOCK TRADERS REVIVE MARKET NEW YORK, April 5.-The relative activity in the first and last hours of today's stock market rescued it from what would otherwise have been the dullest day of the present year and converted the closing into decided animation. The orders whose execution shaped that episode came apparently from professional sources. The discussion in stock market circles showed a shift of opinion as to the likelihood of a prompt decision by the supreme court in the important cases involving the anti-trust question. Yesterday's expectation of immediate action was changed to growing resignation to a probable delay until the end of the present term of the court or even until the end of the fall term, to afford time for the assimilation of the American tobacco and Standard oil cases into one decision. The dimensions which the gold export movement is assuming were regarded as an effect rather than a cause of the stagnant speculation. The London money market was engaged today with the redemption of the $105,000,000 war loan. which was expected to mark the period of the most pressing government requirements. The continued urgent demand for our gold is attributed to preparation for the next stock market settlement in London. The decision to place the Union bank of Brooklyn in liquidation made an unpleasant impression, although no other institution is supposed to be directly involved in the affair. The incident is an aftermath of the panic of 1907 and is due to the inadequate measure of reorganization. The example of the Union bank carries suggestion that there are many corrections yet to be accomplished of the conditions holding over from that period. United States steel was a prominent figure in the day's market movement. The estimates of the corporation's earnings for the first quarter of the year had an influence on the stock and were made the basis for predictions of an increase in the dividend rate at the directors' meeting on the last Tuesday in the month. Rains in the winter wheat belt were a favorable influence on stocks, although the closing of the most important wheat markets on account of local election holidays left the effects in that market somewhat obscure. A break in cotton was considered with attentive interest in the financial district. The belief is widespread that important speculative liquidation in the commodities markets is a probable event of the not distant future. Bonds were irregular: total sales, par value, $2,107,000. United States 3s, registered, advanced 1/4 per cent on call.

9. April 6, 1910 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, April 6, 1910

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BROOKLYNI BANK IS CLOSED DOWN STATE SUPT. OF BANKS TAKES OF UNION CHARGE BANK, WHICH HAS CAPITAL STOCK OF $1,000,000. By Associated Press. New York, April 5.-The doors of the Union Bank of Brooklyn were closed this morning. The institution has seven branches. O. H. Cheney, state superintendent of banks, has taken possession of the bank. The president of the bank is Edward M. Grout, former comptroller of the currency of New York. The bank has a capitalization of $1,000,000, with deposits of $6,500,000. The bank was organized in 1908 and took over the business of the Mechanics and Traders Bank, which closed during the 1907 financial panic. President Grout said he believed the assets were ample to pay depositors in full. It is not believed that the closing of the Union Bank will adversely affect any other financial institution.

10. April 6, 1910 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, April 6, 1910

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NEW YORK STOCKS AND BONDS Market Opens Lively, Then Becomes Dull, Closes Active. STEEL A PROMINENT FIGURE Estimate of Corporation's Earnings show Influence and Predictions Point to Increase in Dividend Rate at End of Month. NEW YORK, April The relative activity in the first and last hours of today's stock market rescued it from what would been otherwise the dullest day of the present year and converted the closing into decided animation. The orders whose execution shaped that episode came, apparently, from professional sources. the discussion in stock market circles showed a shift of opinion as to the likely promptitude of a decision by the supreme court in the important cases involving the anti-trust.law Yesterday 8 anticipation of immediate action was changed to growing resignation to a probable delay until the end of the resent term of the court or even until the end of the fall term to afford time for the assimilation of the American Tobacco and Standard Oil cases into one decision. The dimensions which the gold export movement is assuming was regarded as an effect rather than a cause, of the stagnant speculation. The London money market was engaged today with the redemption of the $105,000,000 war loan, which was expected to mark the period of the most pressing government requiraments. The continued urgent demand for our gold is attributed to preparation for the next stock market settlement in London. The decision to place the Union bank of Brooklyn in liquidation made an unpleasant impression, although no other institution is supposed to be directly involved in the affair. The incident is an aftermath of the panic of 1907 and is due to the inadequate measure of reorganization. The example of the Union bank carries a suggestion that there may be corrections yet to be accomplished of the conditions nolding over from that period. United States Steel was a prominent figure in the day's market movement. The estimates of the corporations earnings for the first quarter of the year had an influence on the stock and were made the basis for predictions loft an increase in the dividend rate at the directors' meeting on the last Tuesday in the month. Rains in the winter wheat belt were a favorable influence on stocks, although the closing of some of the most important wheat markets on account of local election holidays left the effect in that market somewhat obscure. A break in cotton was considered with attentive interest in the financial district. The belief is widespread that important speculative liquidation in the commodities markets is a probable event of the not distant future. Bonds were irregular. Total sales, par value, $2,107,000. United States 3s registered advanced 1/4 per cent on call Number of sales and principal quotations on stocks were as follows: Hish Lem

11. April 6, 1910 Boletín Mercantil De Puerto Rico San Juan, PR

Article from Boletín Mercantil De Puerto Rico, April 6, 1910

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ABLEGRAMAS Servicio Especial del Boletin Mercantil Union Bank en El arbitraje de Washington suspensión de pagos PROPUESTO POR COLOMBIA LA SUBIDA DE LA CARNE Y ECUADOR Nueva York, miércoles.-El Union Bank de Nueva York, miércoles.-Los gobiernos del Brooklyn que tiene establecidas siete sucursales Ecuador y Colombia han propuesto á Washingen distintas ciudades de la Unión, se ha declaraton que intervenga en un arreglo amistoso de la do en suspensión de pagos. cuestión surgida entre aquellos paises por la deCréese que pagará todo con la subida de la carlimitación de fronteras. ne que se ha iniciado ya con gran protesta del Washington aceptará el arbitraje que se le pueblo consumidor. ofrece. La excitación reinante es grandísima. Los gobiernos de Ecuador y Colombia, quie-

12. April 6, 1910 New-York Tribune New York, NY

Article from New-York Tribune, April 6, 1910

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City Has $40,000 in It. The city of New York has $40,000 in the bank. It is said that Controller Prendergast a few days ago drew out $25,000 of this amount, to even up deposits with other city depositories, but-redeposited It at the request of Mr. Grout. The institution now known as the Union Bank of Brooklyn, then called the Mechanics and Traders' Bank, closed its doors on January 20, 1908, and was reopened for business under the present style in August of that year, with Mr. Grout as president and E. J. Stalker. long cashier of the Chase National Bank, of this city, as vice-president. The original Mechanics and Traders' Bank was one of the oldest banking institutions of New York City. A controlling interest in It. was purchased in June, 1905, by E. R. and O. F. Thomas, then entering upon their short career of conquest in the metropolitan banking field. E. R. Thomas had been a director for some time, and other representatives of the new interests entered the board, although Leo Schlesinger. who had been president since 1898, when he succeeded the late Fernando Baltes, was continued in that office. In December, 1906, the Thomases sold their interest to David A. Sullivan, president of the Union Bank of Brooklyn. and Mr. Sullivan became president of the Mechanics and Traders'. The capital of the latter was increased from $700,000 to $2,000,000 and the two Institutions were merged in March, 1907, under the name of the Mechanics and Traders' Bank. which continued to enjoy its Clearing House privilege. The Thomases retired from the board and from their other bank directorates on October 20 of that year, the day after Charles W. Morse severed. by request, all of his official connection with banks. F. Augustus Heinze went out at about the same time. The Mechanics and Traders' weathered the panic, but its Thomas-Heinze past was a heavy burden, and on January 29, 1908, the directors announced that the Clearing House Committee had declined to give further assistance, although the Clearing House held about $6,000,000 of "approved collateral." against which the bank owed It only about $1,900,000, and that, in view of this situation, the cash resources in the bank's possession made it inadvisable for the bank to continue without further aid, and it would be closed temporarily The bank was reopened in August as the Union Bank, its capital having been reduced to $1,000,000 and its surplus being nearly that amount. The main office was removed to Brooklyn and all the branches in Manhattan were discontinued. There are seven branches in Brooklyn. It was announced that the Metropolitan Bank and the Empire Trust Company had granted a credit to the bank of $1,000,000 for a year

13. April 6, 1910 New-York Tribune New York, NY

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UNION BANK SHUTS DOORS Banking Department Takes Charge of Brooklyn Concern. PAY IN FULL, SAYS GROUT Capital Impaired by Slow Assets and Some Remaining Thomas Loans. The Union Bank of Brooklyn, following a conference of its directors with the State Superintendent of Banks on Monday night, closed its doors yesterday, and. pursuant to the request of the board and the provisions of the banking law, Superintendent Cheney took possession of the bank's property and business, placing State Bank Examiner Edward L. Dodge in charge. The troubles of the institution are ascribed to its holdings of slow assets, including real estate in Brooklyn and Jamaica which cannot be advantageously sold at this time, and certain securities, among which is stock of the Knickerbocker Ice Company of Chicago, held as collateral for a loan of several hundred thousand dollars to E. R. and O. F. Thomas, who at one time controlled the bank. Ex-Controller Edward M. Grout, who has been president of the bank for more than two years, made the following statement yesterday: The officers and directors of the Union Bank regret that they have found it Impossible to re-establish the bank. They have spared no effort to that end and believe that the causes of the failure were beyond their control, and antedated the period of their management. These causes relate to this Institution alone. and the closing of the Union Bank ought not to affect any other bank in any manner. The trouble with us has been that the assets are such that we have been unable to realize upon them in time to meet the demands of the business of the bank. Reference is made to the large amount of real estate and to various claims hose payment is unavoidably deferred. These were all inherited by the present officers of the bank. Shortage of cash. not of assets, expresses the situation briefly. We have no doubt of the fuil payment of every deposit-the assets are more than enough for that purpose. President Grout denied the report that the bank had suffered heavy withdrawals of deposits within a few days, and said that on Monday the deposits were $113,000 larger than the withdrawals. The report of the condition of the Union Bank at the close of business on March 25 was: Resources-Loans and discounts, $4,954.163; overdrafts, $249; due from trust companies, banks and bankers not included in next item, $51,586; due from reserve depositaries, less amount of offsets, $328,627; real estate. $547,187; mortgages owned, $373,223; stocks and bonds. viz.: Public securities (book value. $1,000): market value, $1,000; other securities (book value. $339.434): market value. $339,434: specie, $237.401; legal tender notes and notes of national banks, $120,000; cash items, $119,503; other assets, viz.: Furniture and fixtures. $57,825: accrued interest not entered, $35,000; total. $7,165,201. Liabilities--Capital stock. $1,000,000; surplus, including all undivided profits. 503,699: preferred deposits, $93,099: deposits not preferred. $3,820,509; due trust companies, banks and bankers, $69,087; total deposits, $3,982,696: bills payable not maturing until December next, $1,562,885: other liabilities. viz : Certified checks. $62,481: cashier's checks, $26,002; unpaid dividends, $36.

14. April 6, 1910 New-York Tribune New York, NY

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THE NEWS THIS MORNING. CONGRESS.-Senate: Mr. Heyburn consumed most of the session in discussing the administration interstate commerce bill. House: The naval appropriation bill remained under consideration. FOREIGN.-Mr. Roosevelt's refusal to meet the Pope and his decision to canwell the reception arranged for the Americans in Rome, owing to the Rev. Mr. Tipple's statement after his meeting with the ex-President, have caused a great stir in both Italy and in European capitals The House of Commons carried by a good majority Premier Asquith's proposal to limit the discussion of the veto resolutions regarding the House of Lords The Socialist Federation of Trades Unions in Germany, which has three hundred thousand members. has rejected the proposals of the Master Builders' Union, and a great strike seems imminent Nine persons were killed and twenty were injured in a panie among a crowd leaving the bullring at Zacatecas. Mexico. Mount Etna's activity increased and a stream of lava menaces the village of Cisterna Regina. The transandine railway tunnel, linking the republics of Chili and Argentina, was formally opened. Raw rubber reached a record price of 12s 4d a pound in London. DOMESTIC.-The Indiana State Republican Convention adopted a platform making no mention of the Payne-Aldrich tariff law: the Roosevelt policies and the administration of President Taft were indorsed. Emil Seidel, Social Democratic candidate. was elected Mayor of Mlwaukee. The Hinman-Green bill for direct primaries was strongly supported in a hearing at Albany. It was learned at Albany that the Finance Committee of the Senate had in process of formation a measure providing for a general investigation of legislative corruption. Bertram G. Spencer, a clerk. was accused of the murder of Miss Martha B. Blackstone at Springfield, Mass. It was estimated that about four thousand workmen were idle in New England on account of strikes in various places Several business blocks were destroyed by fire in Holland, N. Y. CITY.-Stocks were strong on light trading Two taxicab concerns were virtually merged, in preparation for greater combination. Andrew Carnegie returned to town, weak and ill A after his Western journey. woman was held up by a highwayman at midday in The Bronx and robbed, the alleged thief being caught after an exciting chase The Union Bank of Brooklyn closed its doors on account of Impaired capital, caused by slow assets and old had loans. Delegates from many colleges attended the convention of the Intercollegiate Civie League. George J. Gould testified in the government suit to dissolve the Union Pacific merger. Further advances in meat prices caused a riot on the East Side, where several kosher butcher shops were attacked. THE WEATHER.-Indications for today: Showers. The temperature yesterday: Highest, 77 degrees: lowest. 51.

15. April 6, 1910 The Evening Statesman Walla Walla, WA

Article from The Evening Statesman, April 6, 1910

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Activity in Final Hour Marks Trade NEW YORK, Aprol 5.-The relative activity in the first and last hours of today's stock market rescued it from what would otherwise have been the dullest day of the present year and converted the closing into decided animation. The orders whose execution shaped that episode came apparently from professional sources. The discussion in stock market circles showed a shift of opinion as to the likely promptitude of a decision by the supreme court in the important cases involving the anti-trust question. Yesterday's anticipation of immediate action was changed to growing resignation to a probable delay until the end of the present term of the court or even until the end of the fall term, to afford time for the assimilation of the American Tobacco and Standard Oil cases into one decision. The dimensions which the gold export movement is assuming was regarded as an effect rather than a cause, of the stagnant speculation. The London money market was engaged today with the redemption of the $105,000,000 war loan, which was expected to mark the period of the most pressing government requirements. The continued urgent demand for our gold is attributed to preparation for the next stock market settlement in London. The decision to place the Union bank of Brooklyn in liquidation made an unpleasant impression, although no other institution is supposed to be directly involved in the affair. The incident is an aftermath of the panic of 1907 and is due to the inadequate measure of reorganization. The example of the Union bank carries a suggestion that there may be corrections yet to be accomplished of the conditions holding over from that period. United States steel was a prominent figure in the day's market movement. The estimates of the corporations earnings for 0.00 first quarter of the year had an rence on the stock and were made the Lasis for predictions of an increase in the dividend raté at the directors meeting on the last Tuesday in the month Rain in the winter wheat belt was d favorable influence on stocks. although the closing of the most important wheat markets on account of local election holidays left the effects in that market somewhat obscure. A break in cotton was considered with attentive interest in the financial district. The belief is widespread that important speculative liquidation in the commodities markets is a probable event of the not distant future. Bonds were irregular. Total sales par value, $2,107,000. United States 3s registered advanced 1-4 per cent 0 neall.

16. April 6, 1910 The Times Dispatch Richmond, VA

Article from The Times Dispatch, April 6, 1910

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New York Stock Market Dr York, April 5.-The relative let/Dity in the first and last hours of he stock market rescued It from what could have been otherwise the dullest hay of the present year. and converted the closing into decided animation. The orders, whose execution shaped that episode came. apparently from professional sources. They reflected the effort of the hard pressed profesNonals to infuse some life into a marset which was falling into a condition hopeless for their purposes of daily rades on price fluctuations. The dimensions which the gold export movement is assuming was re. garded as an effect, rather than a cause. of the stagnant speculation. The languid demand for money is Albwing Interest rates to recede In spite the material inroads making on the tender surplus reserves of the banks, The London money market was on. laged to-day with the redemption of the 105,000.000 war loan, which was expected to mark the period of the most pressing government requirements. The continued urgent demand for our gold is attributed to preparation for the next stock market settlement in London. The tottering of rubber shares in that market to-day. in view of the excess of the previous rise. was considered ominous. An ultimate collapse of that speculation is considered mevitable. The decision to place the Union Bank of Brooklyn in liquidation made an unpleasant impression, although no other institution is supposed to be directly involved in the affair. The Incident Is an aftermath of the panic of 1907. and is due to the inadequate measure of reorganization. United States Steel was a prominent figure in the day's movement. The estimates of the corporation's earnings for the first quarter of the year had an influence on the stock and were made the basis for predictions of an increase in the dividend rate at the directors' meeting on the last Tuesday in the month. The leadership proved effective for the whole market. Rains in the winter wheat belt were 't favorable influence on stocks, although the closing of some of the most important wheat markets on account of local election holidays. left the effects in that market somewhat obscure. A break in cotton was considered with attentive interest in the financial district. The belief is widespread that important liquidation in the commodities markets is an important event of the not distant future. Bonds were irregular. Total sales, nar value. $2,107,000. United States 3's. registered. advanced 1-4 per cent. on call. Total sales of stocks to-day, 432.700 shares.

17. April 7, 1910 Coeur D'alene Evening Press Coeur D'alene, ID

Article from Coeur D'alene Evening Press, April 7, 1910

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NEW YORK BANKS CLOSE DOORS Insolvency of One Causes Run on Others. NEW YORK, N. Y., April 7.-FolUnion lowing the closing of the COST OF LIVING bank of Brooklyn, the Borough bank IN WASHINGTON of Brooklyn also closed today. President Shears says that the closing of SENATORS AND CONGRESSMEN the Union bank caused an uneasiness FIND PRICES ADVANCING AND and resulted in steady withdrawals SIZE OF PIES DECREASING, which exhausted the cash of the Borough bank. He declares that the Dare Not Enjoy Luxury of Automobiles. assets are sufficient to pay all depositors in full. WASHINGTON, April 7.-"You The Borough bank has a two hunsee this broad, smooth roadway dred thousand dollar capital stock guiltless of vehicles of any sort? Well, and deposits of half a million. It is that represents the congressman's fear of his constituents." believed that the Borough Institution Representative McCredie of Washwill again open its doors after a ington, plump, ruddy faced and just short time and be in as good condiat that moment perspiring freely, tion as before the run was made. paused in his gaspy walk through the

18. April 8, 1910 The Washington Herald Washington, DC

Article from The Washington Herald, April 8, 1910

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WALL STREET NEWS Call Money at Four Per Cent Breaks Spring Record. INDICATES CLOSE TRADING Gold Exports Drag, but Are Expected to Increase Next Week-Market Professional, with Transactions So Small as to Give No Inferences Regarding Course or Prospects. New York, April 7.-The call money rate to-day went to 4 per cent, the first time 80 high a price has been touched since January 21. Looked at comparatively, and taken in connection with an advance of about one-half of 1 per cent this week in the different rates for time money accommodation, it indicates a closer working of the general money market and emphasizes with much plaing ess the effect upon the money situation of the present, and prospective large withdrawals of gold from this center for shipment to Europe. No further gold export engagements were announced to-day, nor were there any changes of note in the sterling exchange market. It was thought possible in banking circles that for various reasons a renewal of gold shipments might be postponed until next Wednesday. It seems, however, to be universally expected that shipments either by next Saturday's steamer or by next Wednesday's, or by both, would aggregate in the neighborhood of $10,000,000; and today's changes in the money market made it obvious that our banks could not stand this loss long, with what has already been experienced from the same source without charging a higher rate to local borrowers of funds. Comparative Financial Figures. Last Saturday the actual figures of the bank reserves reported a total surplus of a little in excess of $5,700,000. It would appear on the face of things, that in view of gold exports, this surplus might be wiped out in this week's bank return, but the great probabilities are that the usual shifting of credits from banks to trust companies and private lenders will still leave a surplus reserve of a certain amount, even if necessarily considerably reduced. Possibly the weaker tendency of the stock market to-day was due as much to the more unfavorable outlook of the money situation as to anything else. But the market was so entirely professional and the volume of transactions was so small that inferences drawn one way or the other from its course may very well be misleading. It is to be remembered that all the leading stocks have enjoyed a relatively large rise from the low points touched by them above a week ago. The natural result must be that the short interest in the market is less than It was formerly, and that the technical condition is correspondingly less strong. News Not Encouraging. It must be conceded, in addition to this, that the day's financial news was again in no way what could be called encouraging. In addition to the rather pessimistic review of conditions in the fron and steel trade published yesterday by the Iron Age, a journal that has throughout the year steadily inclined to cheerful estimates in this regard, the iron trade review to-day declares that the spring business in iron and steel, as SO far developed, has been disappointing; that a quite tone was prevailing in nearly all lines, and that the demand for structural steel especially had fallen off. The announcement that the Borough Bank, of Brooklyn, had closed its doors was a matter utterly without significance, and was properly regarded by Wall street as being even of less importance than the suspension of the Union Bank, of Brooklyn, yesterday.

19. April 8, 1910 Watertown Leader Watertown, WI

Article from Watertown Leader, April 8, 1910

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ANOTHER BANK CLOSES BOROUGH OF BROOKLYN IN CHARGE OF STATE OFFICIAL. Liabilities Carried from Panic of 1907 Are Too Heavy for the Present Management. NEW YORK, April 7.-The Borough bank of Brooklyn closed its doors today and the superintendent of banks has taken possession of the institution. The bank has a capital of $200,000 with deposits aggregating $2,000,000. E. R. Shears is president. This is the second bank failure in Brooklyn within a week, the first being the Union Bank of Brookyn. At the office of the state superintendent of banks, the following statement was given out today: "A meeting of the board of directors of the Borough bank of Brooklyn was held at the office of the banking department, 52 Broadway, at 6:30 o'clock Wednesday night, the meeting having been called by President Shears. "After a conference with the superintendent of banks regarding the unusual demands being made upon the institution at its Eighth Ward branch and considering the character of the assets, for which the present management is not responsible, the board decided to request the superintendent to take possession and thus preserve the best interests of all depositors. "Pursuant to the request and the provisions of the banking law, the superin:endent has taken possession of the property and business of the corporation. No further statement regarding the condition of the bank will be made until the inventories have been completed. There has been no withdrawal of deposits from any other institution.' Supt. Cheney said that the conditions attending the closing of the bank were almost identical with those which led to the closing of the Union bank. As was the case with the latter, the Borough was obliged to suspend during the panie of 1907, and was reorganized after the panic was over. The new management was obliged to assume liabilities which have been a heavy load. Suspension of the Union bank had a bad effect on the Borough, which was known to be in the same position.

20. April 9, 1910 New-York Tribune New York, NY

Article from New-York Tribune, April 9, 1910

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BROOKLYN BANKER DEAD Stricken at Work After Suspension of Union Bank. Frederick Marble, manager of the Stuyvesant branch of the Union Bank, Brooklyn, died last night at his home, No. 647 Greene avenue. It is believed that the suspension of the bank was in part, at least, responsible for his death. He worked at the bank all day Tuesday preparing his books for the Superintendent of Banks, who took charge that morning. He returned to his desk on Wednesday morning and started his work. Shortly afterward he was seized with a cerebral hemorrhage. Dr. C. O. Tupper, of No. 1182 Dean street, was called in, and he ordered the man taken home at once, and there Dr. Frank E. Wilson, of No. 1242 Bushwick avenue, was called into consultation. At the time that Mr. Marble was taken ill his friends were planning for the organization of a new bank of which he was to be made the head. Mr. Marble was born in Poughkeepsie sixty-two years ago. He leaves a wife and two children.

21. December 6, 1915 The Sun New York, NY

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UNION BANK TANGLE AT INQUIRY TO-DAY Wrecked Institution Will Play Large Part in State Investigation. MOVED WHITMAN TO ACT The beginning to-day of the investigation of the State Banking Department, with particular reference to the methods employed in the liquidating of banks that have failed, again brings the ill fated Union Bank of Brooklyn to the front. It was largely at the request of depositors of that wrecked institution that Gov. Whitman appointed Frederlek J. Groehl commissioner to hear charges. In one form or another the affairs of the Union Bank have been before the public for more than five years. Its two presidents, David A. Sullivan and ex-City Comptroller Edward M. Grout, have been convicted of felonies committed while officers of the institution. Sullivan has served time in Sing Sing. The bank's troubles have involved District Attorney Cropsey in a bitter controversy with half a dozen members of the Kings county judiciary. Three Governors have had something to do with the bank's affairs. The original institution was formed in March, 1907. by David A. Sullivan through merger of the old Mechanios and Traders Bank of Manhattan and the old Union Bank of Brook. lyn. This institution boasted thirteen branches, eight of them in Brooklyn. On January 29, 1908, it came to grief through a combination of untoward circuinstances, chief of which was the panic of 1907 and Sullivan's ambitious schemes to make a great fortune in real estate speculation. Sullivan Hid Losses. The collapse of the real estate market left the bank on the rocks. though Sullivan, through a juggling of assets, managed to keep the fact hidden for a time. In the end it made matters worse for him. however. He was Indicted for lareeny and convicted. He was called the evil genius of the institution. When he was forced out of the bank it was thought that the bank might be opened again. Just who was responsible for the reopening has never been definitely BHcertained. At the trial of Edward M. Grout for perjury in connection with the second collapse of the bank the prosecution held that Grout was mainly to blame. Mr. Grout laid the blame on the State Banking Department, insisting that he had been urged to head the institution as the only acceptable person and finally had accepted as a public duty. Grout. who had been vice-president of the institution for a few weeks under Sullivan. failed in his effort to save the bank. It reopened on August 17, 1908, as a Brooklyn institution, the branches in Manhattan having been abolished. On April 5. 1910. it closed a second time, owing 23,000 depositors more than $4,000,000. With the closing of the bank came many charges. Active among the accusers was Louis F. Goldstein, then an obscure Brownsville lawyer, just out of law school. One of the larger branches of the bank was situated in Brownsville and friends of the young lawyer lost their money. He decided that there should be an investigation and ran for Assembly with that end in view. Gront. Like Sullivan, Convicted. He was elected and took office on January 1, 1911. Powerful influences were brought to bear to defeat Goldstein's bill for a Union Bank investigation. It was not until Gov. Dix interested himself in the matter that Goldstein's efforts succeeded. Goldstein secured the assistance of James C. Cropsey, afterward District Attorney, and things began to happen with startling swiftness. The most surprising of the charges was that Grout had sworn falsely to a bank statement, overstating the assets of the bank by $2,000,000. Grout's trial took place only a short time ago. It lasted nine weeks. A jury, after deliberating fifty-three hours. found him guilty of perjury and he was sentenced to Sing Sing for a minimum term of one year. He is now out on ball pending appeal. He was never charged with profiting through an irregularity at the bank but merely with making a false statement for the purpose of keeping the bank going.