East New York Savings Bank - East New York, NY

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: August 27, 1899
Location: East New York, New York (40.667, -73.882)

Metadata

Model: gpt-5-mini
Short Digest: 72e17a57

Response Measures

Accommodated withdrawals

Description

Newspaper (1899-08-27) reports rumors of insolvency leading to withdrawals (~$30,000 paid out). Bank officials deny insolvency, offer reward for rumormongers and state readiness to meet demands. No suspension or closure mentioned.

Events (1)

1. August 27, 1899 Run

Cause: Rumor Or Misinformation
Cause Details: Unfounded rumor that the bank was insolvent; officials offered a $200 reward for those who started the rumor.
Measures: Offered $200 reward for apprehension of rumormongers; paid out withdrawals and publicly affirmed bond holdings and ability to meet demands.
Newspaper Excerpt: the bank officials have issued a card offering a reward of $200 for the apprehension and conviction of the persons or person who started the rumor that the bank was insolvent. A number of small depositors withdrew their accounts yesterday. Mr. Linz said that so far the bank had paid out about $30,000, and that it was ready to meet all demands.
Source: newspapers

Newspaper Articles (1)

1. August 27, 1899 New-York Tribune New York, NY

Article from New-York Tribune, August 27, 1899

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Article Text

NOT WORRIED ABOUT THE BONDS. EAST NEW-YORK SAVINGS BANK HAS $107,000 LONG ISLAND CITY SECURITIES, AND IS CONFIDENT OF THEIR VALUE. One of the trustees of the East New-York SavIngs Bank said yesterday that the president of that institution, Fred Middendorf, had made a mistake in saying that the bank held only $20,000 of Long Island City improvement bonds. "As a matter of fact," said the trustee, "we hold bonds amounting to $107,000 of the Long Island City issue. I believe that the bonds are perfectly good, and I know that the interest has been paid up to date." John M. Linz, the cashier, verified the statement of the trustee, and added that President Middendorf must have misunderstood the question asked him when he made the statement that the bank had only $20,000 of the bonds. The bank officials have issued a card offering a reward of $200 for the apprehension and conviction of the persons or person who started the rumor that the bank was insolvent. A number of small depositors withdrew their accounts yesterday. Mr. Linz said that SO far the bank had paid out about $30,000, and that it was ready to meet all demands. He said that day before yesterday a representative of a Manhattan banking house that sold the Long Island City bonds to the East New-York institution called and offered to buy them back at a premium.