14968. City National Bank (Buffalo, NY)

View Charter #5174 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
5174
Charter Number
5174
Start Date
June 29, 1901
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
c720eec9

Response Measures

None

Receivership Details

Depositor recovery rate
92.2%
Date receivership started
1901-06-29
Date receivership terminated
1909-12-31
OCC cause of failure
Fraud
Share of assets assessed as good
70.9%
Share of assets assessed as doubtful
25.9%
Share of assets assessed as worthless
3.2%

Description

Comptroller Dawes ordered the bank placed in receivership after an examination found injudicious loans and insolvency (late June 1901). Depositors gathered after the closure but there is no clear prior run; the bank was taken into receivership and did not open, indicating permanent closure under a receiver.

Events (5)
1. January 26, 1899 Chartered
Source
historical_nic
2. June 29, 1901 Receivership
Source
historical_nic
3. June 29, 1901 Receivership
Newspaper Excerpt
Comptroller Dawes late tonight appointed a temporary receiver of the City National Bank of Buffalo, N. Y....appointed E. J. Vaughan, national bank examiner, as temporary receiver of the bank. The bank is certainly insolvent, and I have no right, under these circumstances, to permit the withdrawal of deposits by delay in action. (Article describing appointment and condition.)
Source
newspapers
4. June 29, 1901 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Special examination showed a serious condition and Comptroller Dawes cited injudicious loans; bank declared insolvent and placed in receivership on Comptroller's order.
Newspaper Excerpt
The comptroller has appointed a temporary receiver of the City National Bank of Buffalo, N. Y....The failure of the bank is due to injudicious loans.
Source
newspapers
5. July 1, 1901 Other
Newspaper Excerpt
A big crowd of depositors surrounded the failed City National bank this morning. They got no satisfaction except from reading the receivership notice. Other banks are prepared to meet developments.
Source
newspapers

Newspaper Articles (24)
1. June 30, 1901 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 30, 1901

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Article Text

Surprise at Buffalo. BUFFALO, N. Y., June 29.-The announcement from Washington to-night that a receiver had been appointed for the City National Bank of this city came as a great surprise to the business interests of Buffalo and even to some of the directors of the bank. Its president, William C. Cornwell, was for a number of years president of the State Bankers' Association and is regarded as one of the ablest bankers of the State. Up to a year and a half ago the bank was known as the City Bank of Buffalo. It was then made a national bank. Joseph E. Gavin, one of the directors of the City National Bank, was interviewed at his home to-night: "It is as much of a surprise to me as it is to you," he said. "I really had not expected anything like this." "Have you any idea what caused it?" "No: I have not." "Had you any reason to suppose the bank was shaky?" "No: I did not think it was. It was something I never dreamed of."

2. June 30, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, June 30, 1901

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Article Text

CITY NATIONAL BANK, BUFFALO, IS FORCED TO CLOSE ITS DOORS habilate the bank, notify me and I will WASHINGTON, June 29.-Comptroller appoint a receiver." In accordance with of the Currency Dawes late tonight apthe tenor of this dispatch and reports pointed a temporary receiver of the City from Buffalo, the comptroller has apNational Bank of Buffalo, N. Y. The folpointed E. J. Vaughan, national bank lowing statement was made by Mr. examiner, as temporary receiver of the Dawes tonight: "A recent examination bank. The failure of the bank is due of the City National Bank of Buffalo by to injudicious loans. It is not thought a special examiner showed a serious conthat the loss to depositors will be large. dition of affairs existing in the bank. The following is a statement of the resources and liabilities of the bank as In order that this report might be shown by a report of its condition at thoroughly verified the comptroller on the close of business April 24, 1901: Friday sent A. D. Lynch, of his office, toLiabilities-Capital stock, $300,000; surgether with another examiner, to Buffalo plus and undivided profits, $220,291; cirto make a careful re-examination of the culation outstanding, $287,855; due to condition of the bank. On Saturday Mr. trust companies and savings banks, $126,Lynch telegraphed the comptroller that 368; due to national banks and bankers, the former report was sustained in all $1,110,121; dividends unpaid, $78; individual particulars, and thereupon the comptroldeposits, $1,567,694; United States deler wired him as follows: 'The condition posits, $190,000; total liabilities, $3,802,103. Resources-Loans and discounts, $2,258,of this bank is so serious that I cannot 375; stocks, securities. claims, etc., inconsent to its reopening for business cluding real estate, $107,468; United States Monday morning unless sufficient assets bonds to secure. circulation, $300,000; to pay the depositors in full are satisface United States bonds to secure United States deposits, $200,000; premiums on torily guaranteed. The bank is certainly United States bonds to secure United insolvent, and I have no right, under States deposits, $200,000; premiums on these circumstances, to permit the withUnited States bonds, $9,243; banking house drawal of deposits by delay in action. If furniture and fixtures, $184,500; cash on the directors think that their efforts from hand and with other banks, $724,938; 8 this time until banking hours Monday are per cent fund and due from United States insufficient to provide means to re- treasury, $17,577; total resources, $3,802,103.

3. June 30, 1901 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, June 30, 1901

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Article Text

Surprise in Buffalo. Buffalo, N. Y., June 29.-The announcement from Washington tonight that a receiver had been appointed for the City National bank of this city came as a great surprise to the business interests of Buffalo, and even to some of the directors of the bank. Its president, W. C. Cornwall, was for a number of years president of the State, Bankers' association. and is regarded as one of the ablest bankers of the state. Up to a year ago the bank was known as the City Bank of Buffalo. It was then made a national bank.

4. July 1, 1901 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, July 1, 1901

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Article Text

THE BANK FAILURE AT BUFFALO. The City National Bank Did Not Open Its Doors This Morning. Buffalo, N. Y., July 1.-The City National bank which was placed in the hands of a receiver on Saturday night by Comptroller of Currency Dawes, did not open this morning. I. D. Lynch, chief of the division of insolvent banks, and Special Bank Examiner W. A. Mason, took charge of the bank today pending the arrival of Mr. Vaughn, temporary receiver.

5. July 1, 1901 Richmond Daily Palladium Richmond, IN
Article from Richmond Daily Palladium, July 1, 1901

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Article Text

Rank Doors Closed. Buffalo, N. Y, July 1.-The - City National bank did not open its doors today. It is ordered in the hands of a receiver by Comptroller Dawes. A statement is expected during the day.

6. July 1, 1901 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, July 1, 1901

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TELEGRAPH BRIEFS. / The New York Coffee Exchange has voted to suspend business on July 5 and 6. Pastors at St. Louis and Decatur, Ills., announce that they will appear in the pulpit wearing shirt waists. Unknown blackmailers, failing to extort $10,000 from Charles D. Barney, of Philadelphia, sent his daughter an infernal machine. Frank G. Logan, a prominent member of the Chicago Board of Trade, has retired from active business. Mrs. Nancy B. Irving startled the economic convention at Detroit by announcing that drunkenness is necessary. Comptroller Dawes has closed the City National bank, of Buffalo, owing to injudicious loans. General Maximo Gomez has arrived. in New York, but refuses to give a hint as to the purpose of his visit. John Benson and Hjeimer Herbert were suffocated at Legrand, Minn., being buried in a ditch which they were digging. Joseph Erb, aged 36, employed by the National Biscuit company at Watertown, Wis., was caught in an elevator and killed. Arline Kightlinger, aged 7, was killed, and Willie Barnes and Annie Costeal perhaps fatally injured by lightning near Farmington, O. The dismembered body of Mrs. A. T. Taylor, of Cleveland, was found on the railroad track there.

7. July 1, 1901 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, July 1, 1901

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Article Text

Choate's Oratory Pictured by Hoar I heard Rufus Choate a great many times. I heard nearly all the speeches given in "Brown's Life;" and I heard him a great many times at the bar, both before juries and the full court. He is the only advocate I ever heard who had the imperial power which would subdue an unwilling and hostile jury. His power over them seemed like the fascination of a bird by a snake. Choate's method was pure persuasion. He never appealed to a base motive nor tried to awake coarse prejudices or stormy passions. He indulged in no invective. His wit and sarcasm and ridicule amused the victim almost as much as It amused the bystander. He had the suaviloquentia which Cicero attributes to Cornelius. There was never a harsh note in his speech. He had a voice without any gruff or any shrill tones. It was like a sweet yet powerful flute. He never strained it or seemed to exert it to its fullest capacity. It do not know any other public speaker whose style resembled his in the least. Perhaps Jeremy Taylor was his model, if he had any model. The phraseology with which he clothed some commonplace or mean thought or fact, when he was compelled to use commonplace arguments, or to tell some common story. kept his auditors ever alert and expectant. An Irishman, who had killed his wife, threw away the axe with which Choate claimed the deed was done, when he heard somebody coming. This. in Choate's language, was "the sudden and frantic ejaculation of the axe!" Indeed his speech was a perpetual surprise. Whether you liked him or disliked him you gave him your ears, erect and intent. He used manuscript a great deal. even in speaking to juries, When a trial was on, lasting days or weeks, he kept pen, ink and paper at hand in his bedroom. and would often get up in the middle of the night to write down thoughts that came to him as he lay in bed. He was always careful to keep warm. It was said he prepared for a great jury argument by taking off eight great coats and drinking eight cups of green tea.-Senator George F. Hoar in July Scribner's. SHORT TELEGRAMS Pastors at St. Louis and Decatur, Ills., announce that they will appear in the pulpit wearing shirt waists. Unknown blackmailers, failing to extort $10,000 from Charles D. Barney, of Philadelphia, sent his daughter an infernal machine. Frank G. Logan, a prominent member of the Chicago Board of Trade, has retired from active business. Mrs. Nancy B. Irving startled the economic convention at Detroit by announcing that drunkenness is necessary. Comptroller Dawes has closed the City National bank, of Buffalo, owing to injudicious loans. General Maximo Gomez has arrived in New York, but refuses to give a hint as to the purpose of his visit. John Benson and Hjeimer Herbert were suffocated at Legrand, Minn.. beIng burled in a ditch which they were digging. Joseph Erb. aged 36, employed by the National Biscuit company at Watertown, Wis., was caught in an elevator and killed. Arline Kightlinger, aged 7, was killed, and Willie Barnes and Annie Costeal perhaps fatally injured by lightning near Farmington, O. The dismembered body of Mrs. A. T. Taylor, of Cleveland, was found on the railroad track there.

8. July 1, 1901 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, July 1, 1901

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Article Text

Buffalo Bank Closed. Washington, July 1.-Comptroller of the Currency Dawes has appointed a temporary receiver for the City National bank of Buffalo, N. Y.

9. July 1, 1901 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, July 1, 1901

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FAILED TO OPEN. City National, of Buffalo, In Hands of Officers. Buffalo, N. Y., July 1.-The City National bank, which was placed in the hands of a receiver on Saturday night by Comptroller of the Currency Dawes, did not open its doors this morning. L. D. Lynch, chief of the division of insolvent banks, and Special Bank Examiner W. A. Mason took charge of the bank today pending the arrival of Mr. Vaughn, the temporary receiver. President Cornwell said that he would probably make a statement later in the day, but had nothing to say just now. Not more than fifty people were at the bank at 10 a. m., the usual opening hour, and a few minutes later these had left.

10. July 2, 1901 The Kalispell Bee Kalispell, MT
Article from The Kalispell Bee, July 2, 1901

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MORE BANK FAILURES. By Associated Press: Buffalo, N. Y., July 2.-The Niagara bank, a state institution has suspended. Superintendent Kilbourne said: "I have closed the bank because I think it insolvent. The main reason of its failure is the failure of the City National bank.

11. July 2, 1901 Ottumwa Semi-Weekly Courier Ottumwa, IA
Article from Ottumwa Semi-Weekly Courier, July 2, 1901

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CIVIL LAW IS DEAD LETTER IN CAPE COLONY BUFFALO BANK DOES NOT OPEN ITS DOOR A Correspondent Says the Issue Is of the Gravest Moment. WAS CLOSSED BY COMPTROLLER DAWES SATURDAY NIGHT. THE CRISIS IS IMMINENT Not More Than Fifty People at Bank at Usual Hour and These left in a Few Minutes. Alleges That Liberty is Dead and That the Liberal Party Should Intervene and Summon a Great Popular Con Buffalo, July 1.-The City National bank which was placed in the hands of ference-Method is Illegal. a receiver Saturday night by Comptrol1er Dawes, did not open its doors this morning. President Cornwell said he London, July 1.-The Daily News would probably make a statement latpublishes an article by its parliamen er in the day. Not more than fifty tary correspondent on the political sitpeople were at the bank at the usual opening hour, and a few minutes later uation in Cape Colony. In view of the these had left. prorogation of the Cape parliament,

12. July 2, 1901 The Daily Ardmoreite Ardmore, OK
Article from The Daily Ardmoreite, July 2, 1901

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BANNER SALVE the most healing salve in the world. Depositors are Anxious. Buffalo, N. Y., July 1.-A big crowd of depositors surrounded the failed City National bank this morning. They got no satisfaction except from reading the receivership notice. Other banks are prepared to meet developments.

13. July 2, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 2, 1901

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Buffalo's Bank Failure. BUFFALO, N. Y., July 1.-The City National bank, which was placed in the hands of a receiver on Saturday night by Comptroller of the Currency Dawes, did not open its doors this morning. M. P, Lynch, chief of the division of insolvent banks, and Special Bank Examiner W. A. Mason took charge pending the arrival of temporary Receiver Vaughn. Not more than fifty people were at the bank at 10 a. m., the usual opening hour, and a lew minutes later they had left.

14. July 3, 1901 New-York Tribune New York, NY
Article from New-York Tribune, July 3, 1901

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NIAGARA BANK GOES DOWN. INSOLVENCY CAUSED BY FAILURE OF BUFFALO CITY NATIONAL. Buffalo, July 2.-The Niagara Bank, a State institution, closed its doors to-day, the following notice being posted on the doors: I have closed and taken possession of this bank. F. D. KILBURN, Superintendent of Banks. The Niagara Bank was organized on September 15, 1891. It had a capital of $100,000. The officers are: President, P. H Griffin; vice-president, M. M. Drake: cashier, William T. Hayes; assistant cashier, Edwin T. Voltz: directors, P. H. Griffin, M. M. Drake. John Esser, Maurice B. Patch, Charles O. Rano, T. Gullford Smith, Peter C. Doyle, W. T. Hayes, W. P. King and Michael J. Healy. The chairman of the clearing house committee, S. M. Clement. said: It should be distinctly understood that the closing of the Niagara Bank to-day has been brought about solely by reason of its close connection with the City National Bank. its president having been vice-president of the City National Bank, and that no other bank here is in any way affected. At the meeting of the clearing house committee yesterday the Niagara Bank was the only one that applied for any assistance. Frederick D. Kilburn, the Superintendent of Banks, on his arrival in town this morning became satisfied that the bank could not get through with the assistance asked for, and accordingly directed that the bank be closed in order to protect all interested. Mr. Kilburn said: I have closed this bank because I think it insolvent. The main reason for the suspension is the failure of the City National Bank. This bank is involved in that to an extent not yet to be announced. but I do not deem it safe to permit this one to continue business any longer. As to whether this bank has been in trouble heretofore I have nothing to say. There is no defalcation. The bank was interested the same as was the City Bank. That is all. I am confident that there is no trouble with any of the other banks. Considerable excitement resulted from the posting of the notice. A crowd gathered as the clerks left the bank and went downstairs. To them the closing of the institution was quite as much of a surprise as it was to the persons who, having business with the bank. stopped and gaped as they beheld the placard. The Commercial" says: Superintendent Kilburn of the State Banking Department found among other things, that the bank was carrying the paper of concerns in which its president. P. H. Griffin, was interested to the extent of $160,000. That fact might not have been considered in any way fatal to the solvency of the institution If the City National Bank had not failed. The City National Bank, according to a statement made this morning. had loaned different concerns in which P. H. Griffin was interested to the extent of $400,000. The failure of the City National under the burden of paper which the Controller of the Currency believed represented Injudicious loans, taken in connection with the fact that one of its heaviest stockholders had borrowed from the Niagara Bank nearly twice the amount of the capital stock of the latter institution, leaving it with its surplus entirely wiped out. convinced Superintendent Kilburn that the Niagara Bank should be closed. The collapse of the Niagara Bank will have a serious effect upon the efforts of the City National Bank to bring about a rediscounting of the objectionable car which it carries. After the feverish pulse of the local financial world has settled back to its normal condition it is believed the City Bank will be able to complete arrangements by which its depositors can be paid by the bank, and not by the agents of the government. The National City Bank is the local correspondent of the Niagara Bank. of Buffalo. The Buffalo institution is said to have a small credit balance here. McIntyre & Marshall, Stock Exchange brokers of this city, have issued this notice: "Our Buffalo correspondent states that it Is confidently believed there that there will be no more bank failures or financial troubles in that city. The Niagara Bank was closely related to the City National, which failed on Monday. and it is thought that the latter's trouble precipitated the suspension of the Niagara Bank this morning.

15. July 4, 1901 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, July 4, 1901

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BUFFALO BANK MAY RESUME. Statement of Counsel-Condition of the Niagara Bank. Buffalo, July 3.-William H. Hotchkiss, counsel for the City National bank, said to-day: "Acting on the instructions of the comptroller of the currency, we are formulating plans which, in my judgment, will render the appointment of a permanent receiver for the City National bank unnecessary and will bring order out of chaos in a very short time." A meeting of the directors of the City National bank was held to-day at which the plan of Mr. Hotchkiss referred to above was considered, but inasmuch as it must be approved by the comptroller of the currency, Mr. Hotchkiss declined to give any details. He believed the bank will pay 100 cents on the dollar and that the stockholders will realize something. State Bank Examiner Loond this afternoon gave out a statement showing the condition of the suspended Niagara bank on July 1. The liabilities are placed at $1,004,163, among the principal items being: Deposits, $661,872; due to banks, $154,225; capital stock, $100,000. The resources include such items as: Loans and discounts, $702,408; due from banks, $99,871; stocks and bonds, $82,762; cash and exchange, $63,581. At the close of banking hours to-day Mr. Clement of the Marine bank and chairman of the clearing house committee, issued the following statement: "The return from to-day's clearings having been very satisfactory, showing that the business between the banks has returned to its normal condition. Reports from the two up-town banks, the Union and the Metropolitan, show there has been practically no run upon them to date, but that on the contrary, the deposits have exceeded the withdrawals. It may fairly be said that the trouble is all over."

16. July 4, 1901 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, July 4, 1901

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Bank Examiner in Charge. Buffalo, N. Y., July 2.-The City National bank, which was placed in the hands of a receiver Saturday night by Comptroller of the Currency Dawes, did not open its doors during the morning. M. D. Lynch, chief of the division of insolvent banks, and Special Bank Examiner W. A. Mason took charge pending the arrival of Temporary Receiver Vaughn.

17. July 7, 1901 New-York Tribune New York, NY
Article from New-York Tribune, July 7, 1901

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THE BUFFALO BANK FAILURES. Buffalo, July 6.-Attorney-Go neral John €. Davies and John E. Mason. Deputy Attorney-General, are here for the purpose of looking over the affairs of the Nlagara Bank. The Attorney-General round that the report of Superintendent Kilburn of the State Banking Department was not ready. According to the State Banking laws, no one except the Attorney-General, or one of his deputies. can make application for the appointment of a receiver for a State bank. Superintendent Kilburn said to-day that so far as he could see there was no reason why a receiver for the bank should not be appointed, and an application for the appointment of one will be made. His report will be ready soon. The appointment ultimately of a receiver for the City National as well as for the Niagara Bank is not unlikely.

18. July 10, 1901 The Washington Times Washington, DC
Article from The Washington Times, July 10, 1901

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No Receiver at Present. Charles G. Dawes, Comptroller of the Currency, yesterday assured W. C. Cornwell, President of the insolvent City National Bank of Buffalo, that he would indefinitely postpone the appointment of a receiver for that institution while an effort'is made by the directors to bring the affairs of the bank into such shape that voluntary liquidation can be declared. The directors will endeavor to realize in cash as much as possible on the paper held against the manufacturing concerns that caused the bank's failure.

19. July 12, 1901 The Providence News Providence, RI
Article from The Providence News, July 12, 1901

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ASKS FOR A RECEIVER Buffalo, N. Y., July 12.-As a result, it is said, of the failure of the City National bank, the Schauroth Shoe company has applied for the appointment of a receiver. The liabilities are not given, but President Schauroth says the company is perfeetly solvent, and if the assets are not slaughtered the creditors will be paid in full.

20. July 12, 1901 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, July 12, 1901

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Shoe Company Wants Receiver. Buffalo, N. Y., July 12.-As a result, it is said, of the failure of the City National bank, the Schauroth Shoe company has applied for the appointment of a receiver. Liabilities are not given but President Schauroth says the company is perfectly solvent and if the assets are not slaughtered, the creditors will be paid in full.

21. July 12, 1901 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, July 12, 1901

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Shoe Company Fails. Buffalo, N. Y., July 12.-As a result, it is said, of the failure of the City National bank the Schauroth Shoe company has applied for the appointment of a receiver. The liabilities are not given, but President Schauroth says the company is perfectly solvent and if the assets are not slaughtered the creditors will b paid in full.

22. July 13, 1901 Wheeling Register Wheeling, WV
Article from Wheeling Register, July 13, 1901

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RECEIVER ASKED FOR. Shoe Company in Trouble Because of Bank Failure. BUFFALO, N. Y., July 12.-As a result, it is said. of the failure of the City National Bank. the Schauroth Shoe Company has applied for a receiver. The liabilities are not given, but President Schauroth says the company is perfectly solvent, and if the assets are not slaughtered, the creditors will be paid in full.

23. July 13, 1901 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 13, 1901

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Says Creditors Will be Paid. Buffado, N. Y., July 12.-As a result, it is said, of the failure of the City National bank, the Schauroth Shoe company has applied for the appointment of a receiver. Liabilities are not given, but President Schauroth says the company is perfectly solvent and if the assets are not slaughtered, the creditors will be paid in full.

24. July 19, 1901 Hot Springs Weekly Star Hot Springs, SD
Article from Hot Springs Weekly Star, July 19, 1901

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Buffalo Shoe Company Fails. As a result, it is said, of the failure of the City National Bank, the Schauroth Shoe Company of Buffalo, N. Y., has applied for the appointment of a receiver. President Schauroth says the company is perfectly solveni.