15165. First National Bank (Islip, NY)

View Charter #8794 on SPMC

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: national
Bank ID: 8794
Charter Number: 8794
Start Date: December 12, 1914
Location: Islip, New York (40.730, -73.210)

Metadata

Model: gpt-5-mini
Short Digest: d21df3e9

Response Measures

Full suspension, Books examined

Other: Federal examiner took charge at request of directors; receiver later expected.

Receivership Details

Date receivership started: 1914-12-30
Date receivership terminated: 1915-02-08
OCC cause of failure: Fraud

Description

Cashier H. Clayton Haff disappeared Dec 12, 1914; a run followed with ~$40,000 withdrawn. Federal examiner found delinquent/forbidden notes and shortages; bank was closed by federal authorities Dec 26-29, 1914. Newspapers state the examiner took charge and a receiver was expected. Later reporting (Oct 1915) states the bank reopened a few months after the closing. Cause of run and suspension is bank-specific adverse information (delinquent/forbidden notes/shortage/defalcation).

Events (6)

1. July 12, 1907 Chartered

Source: historical_nic

2. December 12, 1914 Run

Cause: Bank Specific Adverse Info
Cause Details: Disappearance of cashier H. Clayton Haff and discovery of delinquent/forbidden notes and a large shortage (reported $25,000–$50,000); depositors withdrew about $40,000.
Measures: No special remedial measures described beyond examination; directors requested examiner take charge and bank was closed by authorities.
Newspaper Excerpt: When Haff disappeared the depositors began to withdraw their deposits, and this drain upon its resources was believed to be another reason for enforced suspension.
Source: newspapers

3. December 26, 1914 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Federal examiner found capital and surplus wiped out after discovery of shortages/forbidden notes concealed by cashier; directors requested examiner to take charge and doors were closed by federal authorities or at examiner's recommendation.
Newspaper Excerpt: The First National Bank of Islip, Long Island, was closed today by the federal authorities.
Source: newspapers

4. December 30, 1914 Receivership

Source: historical_nic

5. February 8, 1915 Restored To Solvency

Source: historical_nic

6. March 1, 1915* Reopening

Newspaper Excerpt: A few months later the bank reopened, and is now doing business: (reported in Oct 1915 articles).
Source: newspapers

Newspaper Articles (13)

1. December 26, 1914 Newark Evening Star and Newark Advertiser Newark, NJ

Article from Newark Evening Star and Newark Advertiser, December 26, 1914

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HAFF'S BANK AT ISLIP CLOSED BY FEDERAL ORDER Capital and Surplus of $42,000 Wiped Out, Says National Bank Examiner. NEW YORK, Dec. 26.-The First National Bank, of Islip, L. I., was closed today by the Federal authorities. H. Clayton Haff, cashier of the institution, disappeared last week and returned on Thursday. It was reported that the bank had suffered a shortage of $40,000 to $50,000. When Haff disappeared the depositors began to withdraw their deposits, and this drain upon its resources was believed to be another reason for enforced suspension. The bank is capitalized at $25,000 and its deposits were recently reported at over $245,000. An inspection of books and accounts of the bank has been in progress since Haff went away. WASHINGTON, Dec. 26.-The national bank examiner in charge of the First National Bank, of Islip. L. I., reports that the capital and surplus of the institution, $42,000 in all, have been wiped out and that at the request of the directors he has taken charge. No further details were reported.

2. December 26, 1914 The West Virginian Fairmont, WV

Article from The West Virginian, December 26, 1914

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Cashier Missing; Bank Closed Down NEW YORK, Dec. 26.-The First National Bank of Inslip; L. I., was closed today by the federal authorities. H. C. Haff, cashier of the institution, disapeared last week and returned on Thursday. It was reported that the bank had suffered a shortage of $40,000 to $50,000 When he disappeared the depositcrs began to withdraw deposits, and this drain upon its resources was believed to be anoth erenosarwsthaevhmhmhm to be anotehr reason for enforced suspension.

3. December 27, 1914 New-York Tribune New York, NY

Article from New-York Tribune, December 27, 1914

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Run Followed Disappearance of H. Clayton Haff and Doors Are Closed. OFFICIALS SAY HE VIOLATED ORDERS $25,000 Notes Overdue Were Given by Lumber Concern and Its Customers. Islip, Long Island, Dec. 26.-H. Clayton Haff, cashier of the First National Bank of Islip, which closed its doors to-day, may have to face charges of a serious character. According to bank officials, he issued $25,000 worth of notes, against the.instructions of the board of directors. These notes, it is said, are overdue and have caused the closing of the bank. 1 aff, supposed to have been worrying about the notes, brought on an investigation by a federal bank examiner by disappearing from home December 12. He returned Wednesday. While examining the bank after Haff had disappeared H. G. Hanna. the examiner, 8 discovered the forbidden notes in locked boxes scattered through the bank. Most of these notes, it was stated, were given by the Roscoe Lumber Company, of Long Island City, and its customers. One of these customers, it is believed, is Benj: min R. Raynor, president of the bank, who is a carpenter and builder. Coupled with the non-payment of the notes as the cause of the bank's collapse has been the withdrawal by depositors of about $40,000. There has been a run in progrèss for several days. The examiner reported to Washington to-day that the capital and surplus of the institution-$42,000 in allhad been wiped out. H had taken charge, he said, at the request of the directors. Despite the run and Haff's disappearance, the closing of the bank this morning caused great surprise. Although few depositors will lose, it is believed that the closing of the institution will work a hardship on business men and cause great financial difficulties. The directors said that it might take six months to straighten out affairs, but hópes are entertained that a reopening can be effected by late spring. Haff said this evening: "I have returned to Islip voluntarily, and I am ready and willing to do anything I can to help straighten out the affairs of the bank. I have tendered my services to Mr. Hanna, the examiner in charge, and will make similar offer to the receiver, who is expected next week. At the proper time I will make a further statement." The bank was organized seven years ago with a capital stock of $25,000. Its resources are said to be not more than $250,000. The bank has earned about $25,000 during its existence. Its last quarterly report, dated October 1, showed deposits of $121,000. Following his disappearance, the cashier wrote a letter to his wife, in which he said that his absence was connected with the affairs of the bank. An accountant was immediately put to work on the books, and reported that the books and cash were correct and I none of the assets was missing. The only condition in the bank that could be criticised, it was said, was that Haff had permitted the institution to carry some overdue notes. He has t been cashier of the bank since its organization, and is also a member of the real estate firm of Doxsee & Haff. His daughter, Adelaide, is employed in the bank.

4. December 27, 1914 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, December 27, 1914

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Bank Closed, the Dewey, 77 Years Cashier Gone and of Age, Is In Good Shortage Is Found Health and Spirits BY ASSOCIATED PRESS. BY ASSOCIATED PRESS New York, Dec. 26.-The First NaWashington, Dec. 6.-Admiral Dewtional Bank of Islip, Long Island, was ey was 77 years old today. Secretary closed today by Federal authorities. H. Daniels, his aides and members of the Clayton Haff, cashier, disappeared last week and returned on Thursday. navy general board called on him at It was reported the bank had sufhis home and found him in good spirits fered a shortage of $40,000 to $50,000. and health. When Haff disappeared depositors be"I feel very proud of the fact," said gan to withdraw their money and that Secretary Daniels to the admiral, "that drain upon its resources was believed you were appointed to the naval acadto be another reason for enforced susemy by a secretary of the navy from pension. The bank is capitalized at North Carolina, Mr. Dobbin." $25,000 and its deposits were recently "I suppose," returned the admiral reported at more than $245,000. "that's why I have been a democrat

5. December 27, 1914 Evening Star Washington, DC

Article from Evening Star, December 27, 1914

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LONG ISLAND BANK CLOSED. First National of Islip Is Posted by Federal Authorities. NEW YORK, December 26.-The First National Bank of Islip, Long Island, was closed today by the federal authorities. H. Clayton Haff, cashier of the institution, disappeared last week and returned Thursday. It was reported that the bank had suffered a shortage of $40,000 to $50,000. When Haff disappeared the depositors began to withdraw their deposits, and this drain upon its resources was believed to be another reason for enforced suspension. The bank is capitalized at $25,000, and its deposits were recently reported at more than $245,000. Inspection of the books and accounts of the bank has been in progress since Haff went away. The national bank examiner in charge of the First National Bank of Islip, Long Island, reports that the capital and surplus of the institution, $42,000 in all, have been wiped out and that at the request of the directors he has taken charge. No further details were reported.

6. December 27, 1914 Richmond Times-Dispatch Richmond, VA

Article from Richmond Times-Dispatch, December 27, 1914

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NATIONAL BANK CLOSES Capital and Surplus of Islip Institution Are Wiped Out. NEW YORK, December 26.-The First National Bank of Islip, Long Island, was closed to-day by Federal authorities. H. Clayton Haff, cashier, disappeared last week and returned on Thursday. It was reported the bank had suffered a shortage of $40,000 to $50,000. When Haff disappeared depositors began to withdraw their money, and that drain upon its resources was believed to be another reason for enforced suspension. The bank 18 capitalized at $25,000, and its deposits were recently reported at more than $245,000.

7. December 27, 1914 The Sun New York, NY

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ISLIP BANK CLOSES; BLAME CASHIER HAFF $25,000 Shortage Due, Say Directors, to Delinquent Notes He Concealed. $40,000 WAS DRAWN IN RUN ISLIP. L. I., Dec. 26.-The First National Bank of Islip was closed to-day by the board of directors following the recommendation of H. G. Hanna, the national bank examiner. His inquiry into the condition of the bank revealed that there was a shortage of $25,000, which is about $1,000 more than the bank's surplus. The cashier of the bank. H. Clayton Haff. who disappeared without a word to any one on December 12, returned to town Wednesday and offered to help straighten out the tangle which the other officers of the bank found its affairs to be in. By that time, however. the bank was in the hands of the Federal inspector and Haff's services were not accepted. It is unlikely that they will be. The run which the bank has undergone in the last two weeks has drained its resources of nearly $40,000. When it was found on Christmas eve that there remained but $6,000 in cash in the bank. and the actual condition of its finances was explained by Mr. Hanna, the directors decided not to open this morning. The shortage is understood to be the result of delinquent loans. The directors place the responsibility for this upon Haff. the cashier. Almost all of the amount involved was loaned. according to the directors, to the Roscoe Lumber Company of Long Island City and its customers, with whom. the directors say, Haff was ordered not to do business. Charles S. Daily, vice-president of the bank, explained to-day that the fact that Haff had placed the Roscoe Lumber Company paper away in lock boxes and other places in the bank and that these transactions did not appear upon his books accounted for the lack of knowledge the directors had of these dealings. The deposits of the bank amounted to $121,000 on October 21. It is not thought likely that the depositors will lose, though business men in Islip may be delayed six months or more in securing their money left with the bank. Haff was bonded for $10.000 by a surety company. H. Clayton Haff. the cashier, said this evening: "I have returned to Islip volumtarily and I am ready and willing to do anything I can to help straighten out the affairs of the bank. I have tendered my services to Mr. Hanna and I will make similar offer to the receiver who is expected next week. At the proper time I will make a further statement." A meeting of the stockholders has been called for Monday evening to discuss what can be done to rehabilitate the bank and continue the business.

8. December 29, 1914 Norwich Bulletin Norwich, CT

Article from Norwich Bulletin, December 29, 1914

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American Red Cross has of issued the The for funds for aid starving an appeal thousands in Mexico. Charles W. he will OsHoboken bachelors. introduce trom of a Bill taxing all to a A large fat opossum for was New sent Year's I gift Colonel by Roosevelt Frank Niemak, of Sayville, L. California's Relief of food Ship for Camino, the Belgians, Panama carCanal. is rying now a cargo passing through the number of marriage licenses 1914 shows isa The Chicago so far in total of sued decrease in of 91P below the last year. negroes were beaten to shot death and Two white men were at Fairand wounded several during race rioting play, S. C. Miss Enid Bliss the of New American York, Red a in Munich. nurse Cross in serving Germany with died of appendicitis Nicholas Bawlf, and owner known of as two the ele- oat bed at Winnipeg. vator king of companies Canada, was found dead in his The American consul-general for American at Berlin to has carry arranged cotton to Germany in return ships for German drugs. Two prisoiers in the at United Atlanta, States Ga., States Penitentiary from the tuberculosis camp, escaped where they were confined. The First National after Bank a run of Islip, brought L. C. closed its the doors disappearance returned. of H. Haff, about cashier, by who later The federal court has ordered bond interest paycently ment of the semi-annual Leaf Railroad. which receiver. of the Clover went into the hands of a relief next state ship for Belgian New York renow The which will sail from taking aboard a Friday. will Kansas be the cargo Hannah, and expected to clear investigation was begun the fire yester- on day An by Coroner Mix New of Haven in which her life. Christmas Miss Carrie Eve Pollard in of Waterbury lost locomotive and repair resumed shops yes- on The Haven system of the to time was fixed. terday, the New one which week the in recent advance shutdown Mrs. N. shot E. Chuck and seriously of New injured Brighton, him by in Pa., was when she visited dying of tuberculosis. a her hospital husband, there, where he is Frank W. Miller, wife injured of the in Mrs. banker, who was afBridget accident, Saturday at the ternoon, an is resting comfortably Norwalk hospital. a persons were hurt Lake when Shore & coach Six on a Kalamazoo, train left the tracks Chicago a collission passenger with a freight train after near Hartford, Mich. a William G. McAdoo, Secretary to act of the as Treasury, left Washington of President Wilson the 1. the representative opening of the exposition at San at Diego, January injuries inflicted on was his sentenced wife by shooting, For Robert J. Coe, at New Haven, E in the superior less than court eight nor more than to 15 years not in state prison. Representative Kahn, will of California, shun the n said that Congressmen chartered to take Ca- the e "dry' warships through the Panama Exposition. nal Congressment to the San Francisco seriously injured Two persons others were slightly roundhouse hurt when a e a and runaway seven engine Kan., left and a collided with at a Misouri-Pacific Atchison, passenger train. e d ashes of W. W. Rockhill, and later form fine f erly The minister adviser to to China the Chinese Honolulu. governa H. I., are expected ancial ment, who died recently to reach at Litchfield within a day or two. b. The Rev. St. John Mark's c. Episcopal Dean, asphyxiated thirty-one, church and y rector Dunmore, of Pa.. was machinist narof Conrad escaped Schweitzer, a similar a fate yesterday rowly in the church rectory. r J. of t 1, private banking of New concern York, has e e notified B. Greenhut from s The Greenhut its 57,000 money, & Co., depositors as the to withs draw has their decided to withdraw store the banking business. the o is thousand employes Smith & in Sons mills the Seven of Co., the at Alexander Yonkers are account out of of work inCarpet the holidays on the annual The ventory. uary 4. during closing of the plant mills for will reopen JanE. and other Large quantities found of by heroin detectives Blorni who at is drugs searched were the rooms of Street, Alfred Williamsd No. 220 North Sixth and Bernard Webber ly Bioroni sold drugs extensive- neighborhood. burg. are among said to school have children in the d of New ! Governor-elect the Whitman selection of wil- of 1fam York announced Hayward. formerly National secretary Committee assistants n the Republican Mr. Whitman's office, as and one of attorney's appointment in the district the Governor. The counsel pay# to $5,000 a year,

9. January 1, 1915 Putnam Patriot Putnam, CT

Article from Putnam Patriot, January 1, 1915

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NEWS IN BRIEF Venezuela has formally proposed to the neutral governments of Europe and Asia, as well as the two Americas, that a conference be held in Washington to revise or supplement the rules of international law respecting the rights of neutrals in the present war. Beneficial results of the new welfare system introduced in Sing Sing prison are already being shown, Warden Thomas Mott Osborne told members of the West Side Y. M. C. A., in New York. William G. McAdoo, Secretary of the Treasury, left Washington to act as the representative of President Wilson at the opening of the exposition at San Diego. Stanley Townsend, 27 years old, the champion all-around athlete of the Y. M. C. A., of South New Jersey, was drowned when his sneak boat upset near Atlantic City. The First National Bank of Islip, L. 1., closed its doors after a run brought about by the disappearance of H. C. Haff, cashier, who later returned. Two negroes were beaten to death, and several white men were shot and wounded during race rioting at Fairplay, S. C. The number of marriage licenses 13sued in Chicago in 1914 shows a decrease of 916 below the total of last year. The lumber yards of the Pope & Cottle Co., at Chelsea, Mass.. were destroyed by fire, at a loss of $125,000. The American Red Cross has issued an appeal for funds for aid of the starving thousands in Mexico. Assemblyman-elect Charles W. Ostrom of Hobcken, N. J., announces he will introduce a bill taxing all bachelors. The Belgian Relief Fund being collected in New York has reached the total of $737,853. niral George Dewey celebrated L. agent 77th birthday. al passer fifty pound catfish was captured ral solic Lockhart, Tex. istant .11 the city park lakes in New York arnes ere thrown open to skaters. Charles Blanchette of Aurora, Mich., No shot a black fox whose skin is valued Pres If et $300. The Hoster Columbus Associated Breweries, of Columbus, Ohio, a $12,000,000 corporation has applied for a receivership. Percy L. Lawrence, president of the First National Bank of Crowley, La., was indicted on a charge of embezzling $60,000 of the bank's funds. Argentine is spending $1,700,000 at the San Francisco fair. one of the most ramous or American minstreis, died in a hospital at Lynn, Mass., after an operation for appendicitis. A Maine farmer who arrived at Boston with a shipment of 600 Christmas trees found the market so poor that he gave the trees to the Salvation Army. THU

10. January 22, 1915 Honolulu Star-Bulletin Honolulu, HI

Article from Honolulu Star-Bulletin, January 22, 1915

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The First National Bank of Islip, L. I., closed its doors after a run brought about by the disappearance of H. C. Haff, cashier, who later returned. King George sent a message to Hussien Kemal, new Sultan of Egypt, assuring him. of his friendship and support.

11. October 3, 1915 New-York Tribune New York, NY

Article from New-York Tribune, October 3, 1915

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BANK DEMANDS HAFF'S TRIAL Islip Directors Send Wilson Protest Against Further Delay. Islip, Long Island, Oct. 2.-The board of directors of the First National Bank of Islip to-day sent to President Wilson a copy of a resolution, passed Thursday, protesting against further delay in the trial of H. Clayton Haff, the former cashier, whom the officials accuse of having wrecked the institution and who, they charge, confessed his dishonesty. Haff left Islip early in December, 1914, and an investigation of his books followed. Before he returned, ten days later, a run had started, and the bank was closed December 28. Haff was indicted, charged with having falsified his reports to the Controller of Currency. He was released under $10,000 bail and his case has twice been adjourned. "Whereas, H. C. Haff, the defaulting cashier of the First National Bank of Islip, N. Y.," says the protest, "has petitioned for clemency for his selfconfessed illegal act in connection with the wrecking of said bank and has had his trial adjourned on the false pretence that he was aiding the bank, it devolves upon the officials and directors to protest against further adjournment."

12. October 3, 1915 The Washington Times Washington, DC

Article from The Washington Times, October 3, 1915

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BANKERS ASK WILSON TO PROSECUTE HAFF Directors of Islip Institution Protest Against Further Delay in the Case. NEW YORK, Oct. 3.-Although H. Clayton Haff denies all knowledge to a $64,000 defalcation from the First National Bank, at Islip. L. I.. whose cashier he formerly was, the directors have sent a statement to President Wilson charging him with being a self-contessed defaulter. In it they also protest against any further adjournment being granted Haff in his trial on an indictment by the Federal grand jury accusing him of falsifying his reports to the Comptroller of Currency. Haff, who is a son of Captain Haff, the skipper of cup defender. fame, is under $10,000 bail and his trial has been twice adjourned. The $64,000 loss will be made good, it is said, by Haff's bonding companies. The resolution of protest forwarded to the President was adopted by the directors at a secret meeting. and a copy was also sent to Judge Chatfield, of the Federal court, in Brooklyn, before whom the case is pending: to John S. Williams, Comptroller of Currency, and Milville J. France, United States district attorney, conducting the prosecution. Haff. while cashier of the bank, left Islip on December 12, for Circleville, N. Y., to visit relatives. It was rumored he had left for good, leaving behind a wife and daughter, and a run on the bank started. Haff returned on December 23. but S the run had drained the resources of the institution, and an investigation revealed the shortage. H. G. Hanna, Federal examiner, on December 29 closed the doors. A few months later the bank reopened, and is now doing business: The resolution as forwarded to Presir dent Wilson ends thus: "We hereby petition for such gove ernmental conclusion of the case as will satisfy the cry for justice of the many who have been so grievously hurt because of said Haff's confessed dishonesty." "I never took any money from the bank." declared Haff last night. "They are trying to make whole cloth out of nothing. I did not contess, as I have nothing to confess."

13. October 4, 1915 The Sun New York, NY

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EX-CASHIER HAFF ASKS MERCY OF PRESIDENT Will Plead Guilty to Islip Bank Charge-Petition Out for Clemency. Tt was said yesterday that the resolutions forwarded to President Wilson by the board of directors of the First National Bank of Islip. Long Island, protesting against further delay in the trial of H. Clayton Haff. former cashier, who was indicted last April on the charge of falsifying his reports to the Comptroller of Currency, were for the purpose of defeating efforts made by Haff's friends. who have circulated a petition in Islip asking for Executive elemency. Copies of the resolutions, which were passed at a secret meeting of the board, were also sent to Judge Chatfield of the Federal court. the Comptroller of the Currency and to Melville J. France, United States Distriet Attorney of the Eastern District of New York. Mr. France said yesterday that there was absolutel no friction between the bank directors and his office and that he has not heard any one make the charge that the District Attorney had been remiss in prosecuting the charge against Haff. More than 500 names have been signed to the petition in behalf of Haff. Mr. France said that the Haff case would be called on October 6 and that an early date for the trial would be set. H. Clayton Haff at his home yesterday said that his attorney, former Congressman W. S. Bennet, was preparing to change his plea to "the technical charge of submitting inaccurate reports to the Comptroller" to "guilty" and throw him on the elemency of the President. Mr. Haff said that the petition in his behalf had been signed by stockholders and depositors of the bank and many prominent Islip people. He thought that the action of the directors was the result of his petition. Mr. Haff objected to the terms "defaulting cashier" and "self-confessed dishonesty" used in the resolutions. The former cashier is the son of the famous Capt. Frank Haff. skipper of cup defender yachts. After his disappearance on December 12, 1914, there was a run on the bank. He returned on December 23, but the ten days of stress cost the bank $64,000.