14990. German American Bank (Buffalo, NY)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
December 1, 1904
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
71815677

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Full suspension, Books examined

Other: Reorganization of directors; state superintendent took possession then Clearing House advanced funds and reorganized management.

Description

Multiple Dec 1–2, 1904 articles report a run triggered by rumors and a fight for control (former cashier Weppner disseminating rumors). On Dec 5, State Superintendent F. D. Kilburn closed/took possession of the bank because the run was increasing and management couldn't procure funds. Clearing House examined the bank, found it solvent, advanced funds and reorganized directors; newspapers do not explicitly state a final resumption of normal operations, so whether the bank reopened permanently is unclear.

Events (2)
1. December 1, 1904 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors disseminated by former cashier Edward A. Weppner and a fight for control prompted large deposit withdrawals.
Measures
Directors met and issued statements assuring solvency; paying depositors promptly; threatened prosecution of those who spread rumors; Clearing House offered cooperation.
Newspaper Excerpt
A fight for the controlling interest in the German-American bank to-day resulted in a run on that institution estimated by Vice-President Schilling at $400,000.
Source
newspapers
2. December 5, 1904 Suspension
Cause
Government Action
Cause Details
State Superintendent of Banking F. D. Kilburn closed/took possession of the bank due to an intensifying run and inability of management to obtain funds.
Newspaper Excerpt
I have closed and taken possession of this bank because of a run which is constantly increasing and the inability of the management to procure sufficient funds to meet such run.
Source
newspapers

Newspaper Articles (13)
1. December 2, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, December 2, 1904

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Article Text

RUN ON BUFFALO BANK. Caused by an Attempt to Get Control. Buffalo, Dec. 1.-A fight for the controlling interest in the German-American bank to-day resulted in a run on that institution estimated by VicePresident Schilling at $400,000. The withdrawals were made by large depositors, so that the run did not cause any perceptible excitement to-day. A message received from State Superintendent of Banks Kilburn concludes with the statement: "The bank, in my opinion, is absolutely sound and safe," and this is the general opinion expressed by bankers of this city. President Emory, of the GermanAmerican bank, called a meeting of the directors at the close of to-day's business. When the meeting was over the following statement was issued: "It has come to the knowledge of the officers of the German-American bank of Buffalo that certain persons formerly connected with the management have been disseminating rumors tending to impair its credit. The same persons have just recently demanded that the controlling interest in the bank be sold to them at their figures. The bank is perfectly solvent, able and willing to meet any demand upon it in full, and ready to submit its entire affairs to the examination of the clearing house at any moment." This statement was accompanied by another, which was as follows: "Notice is hereby given that Edward A. Weppener is no longer cashier of this bank, his relations having been severed this day."

2. December 2, 1904 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, December 2, 1904

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Article Text

Buffalo Bank Run Stopped. BUFFALO, N. Y., Dec. 2.-The run on the German-American bank which was started yesterday by rumors that the bank was liable to fail, stopped today. Deposits offered by persons who withdrew their money yesterday were refused. The bank's officials say they will prosecute the persons responsible for the run.

3. December 2, 1904 The Spokane Press Spokane, WA
Article from The Spokane Press, December 2, 1904

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Article Text

BANK RUN STOPPED (Scripps News Association.) BUFFALO, N. Y., Dec. 2.-The run on the German-American bank, which started yesterday by rumors of the bank's unreliability, was stopped today. Deposits offered by persons who withdrew their money yesterday were refused. The bank officials say they will prosecute the persons responsible for the run.

4. December 2, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 2, 1904

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Article Text

Bank Weathers Blast. Buffalo, N. Y., Dec. 2.-The GermanAmerican bank upon which a run was begun yesterday opened its doors as usual. At 10 o'clock there were about 20 withdrawing depositors in line. All were paid promptly.

5. December 2, 1904 New-York Tribune New York, NY
Article from New-York Tribune, December 2, 1904

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Article Text

RUN ON BUFFALO BANK. Fight for Control the Cause$400,000 Withdrawn. Buffalo, Dec. 1.-A fight for the controlling interest in the German-American Bank to-day resulted in a run on that institution estimated by Vice-President Schilling at $400,000. The withdrawals were made by large depositors, so that the run did not cause any perceptible excitement to-day. A message received from F. D. Kilburn, State Superintendent of Banks. closes with the statement, "The bank, in my opinion, is absolutely sound and safe," and this is the general opinion expressed by bankers of this city who are familiar with the internal affairs of the institution which led up to the present peculiar situation. President Emory of the German-American Bank called a meeting of the directors at the close of to-day's business. When the meeting was over the following statement was issued: It has come to the knowledge of the officers of the German-American Bank of Buffalo that certain persons formerly connected with the management have been disseminating rumors tending to impair its credit. The same persons have just recently demanded that the controlling interest in the bank be sold to them at their figures. The bank is perfectly solvent, able and willing to meet any demand upon it in full, and ready to submit its entire affairs to the examination of the Clearing House at any moment. This statement was accompanied by another, which read as follows: Notice is hereby given that Edward A. Weppner is no longer cashier of this bank, his relations having been severed this day. President Emory came here from Baltimore last spring to assume the presidency of the bank, having purchased a controlling interest in the institution. The minority stockholders have not always been in accord with the new officials. It was proposed by the new regime to consolidate the German-American and another bank in this city. Mr. Weppner was to be released should such a consolidation be effected: The minority stockholders represented by Mr. Weppner, it is said, bitterly opposed this move. To-day President Emory received the following from Superintendent Kilburn at Albany: Albany. N. Y., Dec. 1, 1904. Richard Emory, President German-American Bank. I understand that E. A. Weppner, cashier of the German-Américan Bank, is advising people to withdraw their money from said bank. I am told that he had made threats that unless the present management of the bank sold the bank to him and his friends, he would ruin the bank. Mr. Weppner appeared before me on November 3. 1904, together with yourself and others regarding the matters of this bank. He criticised $200,000 worth of loans and a deposit of $50,000 in a Washington bank, and ananother of $50,000 in a bank at Shenandoah. Penn. One hundred thousand dollars of the paper has been paid. and the deposits referred to have been withdrawn. The other $100,000 of loans I have every reason to believe are absolutely good, and will be paid when due. Mr. Weppner stated to me under oath that there was not another loan that he did not regard as good. The bank in my opinion is absolutely sound and safe. You may publish this telegram. F. D. KILBURN, Superintendent of Banks. It was the receipt of this telegram and the run on the bank to-day which resulted in the meeting of the directors.

6. December 2, 1904 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, December 2, 1904

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Article Text

GERMAN-AMERICAN BANK. One at Buffalo Opened its Doors This Morning. Buffalo, N. Y., Dec. 2.-The German American bank on which IL run was begun yesterday, opened its doors as usual at 9 o'clock this morning. At 10 o'clock there were about 20 depositore in line. They were being paid promptly. Vice Prest. Schilling shild there was no doubt whatever of the bank's ability to withstand any run, but that he did not anticipate that more than a few thousand dollars would be withdrawn. Prest. Emery states that the German-American bank had about $800,000 in available currency and within 24 hours could have 2,500,000.

7. December 2, 1904 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, December 2, 1904

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Article Text

$400,000 Run on Bank. Buffalo, N. Y., Dec. 1.-A fight for the controlling interest in the German-American Bank to-day resulted in a run on that institution estimated by Vice President Schilling at $400,000. The withdrawals were made by large depositors, so that the run did not cause any perceptible excitement today.

8. December 2, 1904 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, December 2, 1904

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Article Text

Run on Buffalo Bank. BUFFALO, Dec. 2.-A run on the German-American bank of Buffalo has resulted in the withdrawal of $300,000 of deposits. Edward A. Weppner, the cashier, was removed after an emphatic refusal by Richard Emory and Robert F. Schelling, owners of the controlling interest in the bank, to sell to him. It is alleged that Weppner declared, "If I say the word $800,000 in deposits will be removed forthwith, and that will ruin the bank."

9. December 3, 1904 Albuquerque Weekly Citizen Albuquerque, NM
Article from Albuquerque Weekly Citizen, December 3, 1904

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Article Text

Bank Stood the Run. Buffalo, N. Y., Dec. 2.-The German American bank upon which a run be gan yesterday, opened its doors as usual today at 9 o'clock. At 10 there were about twenty depositors withdrawing money in the line. All were paid promptly. The president stated today that the bank had $800,000 available currency and within twenty. four hours could have $2,500,000.

10. December 3, 1904 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 3, 1904

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Article Text

From Washington. [Correspondence of the Alexandria Gazette.] Washington, D. C., Dec. 3. The opening day of the third session of the 58th Congress, next Monday, although it will attract a large concourse of spectators, will be comparitively uneventful. The Senate will be in session probably not more than 15 minutes. The business of the House will occupy very little more time. President pro tem. Frye will continue to act as the presiding officer of the Senate until Senator Fairbanks shall be sworn in as Vice President on the 4th of March. The first business in order will be the call of the roll. Then a resolution will be adopted informing the House that a quorum of the Senate is present. A committee of two will be appointed to wait on the President and notify him that the Senate is in session and ready to receive any communication that be may have to make. Sepator Lodge will announce the death of Senator Hoar, of Massachusetts, and Senator Penrose the death of Senator Quay, of Pennsplvania. As a mark of respect to their memories the Senate will then adjourn until Tuesday. In the House the proceedings will be along similar lines. Speaker Cannon will call that body to order. There will be a roll-call and certain executive documents submitted on the initial day of the season, will be informally received. By that time the sergeant at-arms of the Senate will be ready to report that the Senate is in session and has appointed a committee to call on the President. The House may, then, if it be deemed advisable, refer some contest election case to a committee, and then the "Father of the House," Mr. Bingham, of Pennsylvania, will call for the appointment of three members to join the two of the Senate to wait on the President, Mr. Bingham will be a member of that committee. The House will then adjourn also as a mark of respect to the memory of Senators Hoar and Quay. No member of the House has died since the last ad jourument. This is considered a notable record and has not been duplicated in many years. The House "hopper" will be liberally patronized on the first day. Not less than two or three hundred bills and resolutions will be introduced. The President's message will not be sent to Congress until Tuesday afternoon. When the lawmakers assemble they will find the Capitol building in handsome repair, although only a few important alterations have been made since last adjournment. Senator Fairbanks who has arrived in Washington to attend the session of Congress, announces his intention to serve as a Senator until he is inauguratas Vice President on March 4. It is announced at the War Department today that a discharge from the army would be grantedlyonng Langhorne Putney, son of Mr. Stephen Putney, of Richmond, whose disappearance in St. Louis a short while ago created a great sensation. Contractors doing business hereafter with the Navy Department will be relieved of part of the heavy penalty imposed for failure to fulfil their obligaions. Under the present plan a penalty one fifth of one per cent. price of articles overdue for each day's delay when the amount involved is less than $10,000 and one tenth of one per cent when the amount exceeds $10,000. Secretary Morton's new order cuts this penalty in two. The bureau of supplies I as and accounts is also permitted to wave he entire penalty where it can be shown hat the contractor's breach of contract r due to strikers, riots, fires other unvailable causes. o Because of admissions made by offiP ials of the German-American Bank of o Buffalo, N. Y., that the institution was on asolvent a few weeks ago, the run on bank was renewed this morning with vigor that promises to increase as the b progresses. Former Cashier Weppti who resigned by request of the officials a few days ago, gave out a t atement in the morning newspapers, which he declared the institution had N 8 many big loans on "questionable o ecurity." b The Bureau of Equipment, Navy Deaitment, announces that a number of in ations on the Atlantic coast have been a b manned for wireless telegraphy and now prepared to receive and transmit SU ti essages, subject to the regulations reently published. 9 Today closes the racing season in the for and a very attractive card has been

11. December 6, 1904 New-York Tribune New York, NY
Article from New-York Tribune, December 6, 1904

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Article Text

BUFFALO BANK CLOSED. Action by Kilburn-It Is Unable to Meet Run. Buffalo, Dec. 5.-The German Bank. of which President Emory of the German-American Bank was also president, was closed to-day by F. D. Kilburn, State Superintendent of Banking, who posted the following notice on the door: I have closed and taken possession of this bank because of a run which is constantly increasing and the inability of the management to procure sufficient funds to meet such run. Almost immediately a crowd of people appeared in front of the German-American Bank, and in a few minutes there was a line of men and women at the paying teller's desk. Franklin D. Locke, a well known Buffalo citizen, who is connected with the Manufacturers and Traders' Bank and the Fidelity Trust Company, mounted a. chair and assured those in line that the bank was entirely solvent, and that Loran L. Lewis had been elected to succeed President Emory. A few minutes later the following notice of action taken by the Clearing House was posted on the doors: The Buffalo Clearing House has caused a careful examination to be made of the assets, liabilities and affairs of the German-American Bank, and find it solvent in every respect. They have decided to advance it such moneys as are necessary to meet all demands upon it. The board of directors have been reorganized. Mr. Emory has resigned as president and director, and the Hon. Loran L. Lewis. ST., has been elected as president. The Hon. John G. Wyckser and Franklin D. Locke have been elected directors. S. M. CLEMENT. Chairman Clearing House Committee. This had a most reassuring effect, and in a short time the excitement had subsided.

12. December 6, 1904 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, December 6, 1904

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Article Text

BUFFALO BANK CLOSED. Run Made on Another Institution Quickly Stopped. Buffalo, N. Y., Dec. 5.-The German Bank, of which President Emory of the German-American Bank was also President, was closed today by State Superintendent of Banking Hilburn. who posted the following notice on the door: "I have closed and taken possession of this bank because of a run which is constantly increasing and the inability of the management to procure suffle cient funds to meet such run." Almost immediately a crowd of peo ple appeared in front of the German< American bank and in a few minutes there was a line of men and women at the paying teller's desk. Franklin D. Locke, who is connected with the Manufacturers & Traders Bank and Fidelity Trust Company, mounted a chair and assured those in line that the bank was entirelyi solvent and that Lorain Leal Lewis had been elected to succeed President Emory. A few minutes later the following notice of action taken by the clearing house was posted on the doors: "The Buffalo Clearing House has caused a careful examination to be made of the assets, liabilities and af4 fairs of the German-American bank and find it solvent in every respect. It has decided to advance it such moneys as are necessary to meet all demands upon it." This had a reassuring effect and in short time the excitement had subsid ed. .

13. December 14, 1904 The Forest Republican Tionesta, PA
Article from The Forest Republican, December 14, 1904

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Article Text

BRIEF NEWS ITEMS. Pointed Paragraphs Chronicling the Week's Doings. Long Dispatches From Various Parts of the World Shorn of Their Padding and Only Facts Given in as Few Words as Possible For the Benefit of the Hurried Reader. Two tariff commission bills and several other measures relating to the tariff were introduced in the house of representatives. Japanese force sent to turn Rennenkampf's flank has been led into an ambush and repulsed with a loss of 1500 dead, according to Mukden reports. Run on the German-American bank at Buffalo was stopped by co-operation of the clearing house, but the German bank was closed by State Superintendent Kilburn. Banker Beckwith of Oberlin confesses that he and his cashier endorsed for Mrs. Chadwick two notes for $500,000 each that bore the name "Andrew Carnegie." Mr. Carnegie denies that he has signed any such notes.