Williamsburg Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: June 8, 1908
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 6d0178db

Response Measures

None

Description

December 1910 directors decided to cease accepting deposits and call depositors to withdraw; assets to be liquidated by Metropolitan Trust and depositors paid in full. This is a voluntary liquidation/suspension leading to permanent closure. Historical prior suspension (1905) and reopening (1908) are mentioned but the current episode is a voluntary wind-up.

Events (2)

1. June 8, 1908 Other

Newspaper Excerpt: Backed by the Metropolitan Trust Company, of which Gen. Brayton Ives was president, the trust company reopened June 8, 1908. Its old depositors had all been paid by the receivers.
Source: newspapers

2. December 14, 1910 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors concluded no new business and profits dwindling; decided to cease accepting deposits and liquidate; assets to be liquidated by Metropolitan Trust Company and depositors paid in full.
Newspaper Excerpt: WILLIAMSBURG TRUST COMPANY QUITS BANKING Refuses More Money and Calls Upon Depositors to Draw Out Balances. ... Every depositor will be paid in full, in cash, and at once. The $1,300,000 on deposit is in the vaults ready to be paid out as soon as depositors present demands, and interest will be figured to to-day.
Source: newspapers

Newspaper Articles (4)

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

Article from New-York Tribune, April 6, 1910

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Article Text

at 6 per cent interest, without commission. This credit, it is understood, has been repaid. Whether or not the bank will be reopened it is still too early to predict. Some of the larger interests, it is understood, are desirous of putting more money into it, but other important interests are said to consider that policy inadvisable. The wishes of the body of the stockholders have yet to be ascertained, and if they are willing to submit to a considerable assessment the institution may be reopened. Another possibility is that some other bank may make an offer for the Union and take it over. The Union Bank will benefit by having its affairs placed in the hands of the State Superintendent of Banks instead of a receiver. The first case of the sort was that of the Home Bank of Brooklyn, a small institution, which was reopened for business on June 4, 1908, after having been in charge of the Banking Department for forty-two days, at a total cost of only $1,200. Under the new system, it was said at the time, the cost of liquidating the Williamsburg Trust Company would have been not more than $4,200, compared with the $40,000 allowed the receivers and their counsel, which fee did not include the cost of administering the trust. The report of Superintendent Cheney last month noted that the creditors of the Lafayette Trust Company up to date had received 30 per cent and those of the Binghamton Trust Company 50 per cent, the costs of liquidation having been, respectively, 1 per cent and two-thirds of 1 per cent.

2. December 14, 1910 The Evening World New York, NY

Article from The Evening World, December 14, 1910

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Article Text

WILLIAMSBURG TRUST COMPANY QUITS BANKING Refuses More Money and Calls Upon Depositors to Draw Out Balances. The Williamsburg Trust Company, with its main office at No. 391 Fulton street, and a branch at Broadway and Stockton street, Brooklyn, one of the Institutions which failed in 1907 and was reorganized the following spring, decided to-day to cease accepting deposits and to call upon its depositors to draw out their money. Every depositor will be paid in full, in cash, and at once. The $1,300,000 on deposit is in the vaults ready to be paid out as soon as depositors present demands, and interest will be figured to to-day. There has been no run on the company, but it is not making money. President Jacob E. Klinck announced this afternoon that the directors had decided that, as no new business was coming and profits were dwindling, they mught as well liquidate. The capital of the company is $700,000. No Profit in Continuing. When the officers had decided to liquidate and go out of business President Klinck called up the State Banking Department and explained the situation. Later Mr. Klinck gave out this statement: Gen. Brayton Ives has returned to the Williamsburg Trust Company, for distribution, over 11,000 shares of capital stock transferred to him in May, 1908. Yesterday Gen. Ives and Mr. W. N. Dykman, as voting trustees, terminated the voting trust agreement under which they held over 5,000 shares of the capital stock and arranged for the return of these shares to the holders who deposited them. The result of this is to put every shareholder just where be was before suspension. To-day the directors have concluded an agreement with the Metropolitan Trust Company whereby we borrow enough to pay every depositor in full, in cash, at once, and the assets of our company will be liquidated by the Metropolitan Company between now and July 1, 1912, but under the direction of the gentlemen who compose the executive committee of the Williamsburg Trust Company. This will prevent the waste or sacrififice of our assets. The Williamsburg Trust Company closed its doors Oct. 25, 1905, during the panic. It had on deposit then $8,360,250. It was known as a Jenkins institution and Frank Jenhans was its president. Backed by the Metropolitan Trust Company, of which Gen. Brayton Ives was president, the trust company reopened June 8, 1908. Its old depositors had all been paid by the receivers.

3. December 15, 1910 New-York Tribune New York, NY

Article from New-York Tribune, December 15, 1910

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Article Text

VOTING TRUST AT AN END Williamsburg Trust Company Now May Be Dissolved. Jacob C. Klinck, president of the Willfamsburg Trust Company, of Brooklyn, anhounced yesterday the termination of the voting trust agreement whereby the com-, pany was able to resume business after its suspension in the financial panic of 1907, and added that every depositor would immediately be paid in full. The voting trust held three-fourths of the voting stock of the company. This will be returned to the original holders and the hareholders then will decide whether or not the company shall continue in busiaess. The statement made by President Klinck follows: General Brayton Ives has returned to the Williamsburg Trust Company for distribution more than 1,100 shares of capital stock transferred to him in May, 1908. Yesterday General Ives and William N. Dykman, as voting trustees, terminated the voting trust agreement under which they held over 5,000 shares of the capital stock and arranged for the return of these shares to the holders who deposited them. The reult of this is to put every shareholder just where he was before suspension. To-day the directors have concluded an greement with the Metropolitan Trust Company whereby we borrow money enough to pay every depositor in full in cash at once, and the assets of our company will be liquidated by the Metropolitan company between now and July 1, 1912, but under the direction of the men who compose the executive committee of the WillLamsburg Trust Company. This will prevent the waste or sacrifice of our assets. The agreement provides that the shareholders shall meet and pass upon the agreement and also decide whether the Williamsburg Trust Company shall continue in business Gr be dissolved. We have been forced to lay this question before the shareholders by diminished deposits and profits, which has led the directors to believe liquidation. the shareholders will be benefited by The report of the company to the State Banking Department last month showed deposits of $1,312,640 and assets of $2,988,316. The company was organized eleven years ago, with a capital of $700,000. Its main fices are at No. 391 Fulton street, BrookP and It has & branch at Breadway and Williamsburg.

4. January 27, 1911 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, January 27, 1911

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Article Text

BROOKLYN TERMINAL BANK TO LIQUIDATE AFFAIRS. NEW YORK, Jan. 27.-The board of directors of the Terminal Bank, of Brooklyn, yesterday decided to liquidate the bank's affairs. Similar action has been taken regarding the Williamsburgh Trust Company. Both these institutions were in what was known as the Jenkins chain, which became involved in the panic of 1907. The Terminal Bank was a small institution with deposits of only $50,000. Jacob C. Klinck, who was also president of the Williamsburgh Trust Company, was head of the Terminal. Directors of the Terminal Bank stated there is plenty of money to pay depositors, who have been notified to withdraw their funds.