15181. Rondout Savings Bank (Kingston, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: savings bank
Start Date: October 5, 1891
Location: Kingston, New York (41.927, -73.997)

Metadata

Model: gpt-5-mini
Short Digest: 15bbd93e

Response Measures

None

Description

Following the discovery of massive embezzlement and the closing of the Ulster County Savings Institution (Oct 3–5, 1891), the Rondout Savings Bank (and Kingston Savings Bank) posted notices invoking the 60-day notice law to prevent heavy withdrawals. There is no evidence in these articles that Rondout permanently closed or was placed in receivership; the action was a precautionary suspension of immediate withdrawals prompted by runs/distress at a neighboring local savings bank.

Events (1)

1. October 5, 1891 Suspension

Cause: Local Banks
Cause Details: Precautionary invocation of the 60-day notice law after the Ulster County Savings Institution was discovered embezzled and closed, triggering runs and depositors' alarm in Kingston and surrounding towns.
Newspaper Excerpt: the Rondout Savings bank have each posted notices notifying the depositors that the sixty days' notice required by law must be given.
Source: newspapers

Newspaper Articles (7)

1. October 4, 1891 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, October 4, 1891

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A Kentucky Bank Closed. KINGSTON, Ky., Oct. 3-The Ulster County Savings institution has closed its doors and is in charge of Bank Superintendent Preston. Examiners have been at work since Tuesday and already have found $463,000 has been stolen by Treasurer Ostrander and Matthew T. Trumpbour, assistant treasurer, and it is feared their stealings will reach over that/amount. At midnight last night Superintendent Preston swore to a complaint charging Trumpbour with perjury in swearing to false statements contained it the July report of the bank to the banking department, and Trumpbour was arrested. He was just preparing to flee from the town. Ostrander was arrested about two weeks ago for embezzling $75,000 and was under bonds for $20,000. His bondsmen last night turned him over to Sheriff Dill and he was also locked up in jail. When Ostrander was arrested, there was a run on the bank for three days, but other banks came to the rescue of the Ulster County Savings institution and the trustees made a statement showing a surplus of $247,000. As the statement was signed by a number of prominent men in this city who were directors of the bank, it had a reassuring effect, and depositors who drew out their money brought it back. The system adopted by Ostrander and Trumpbour was most ingenious, and for twenty years baffled the skill of expert examiners in the employ of the state. In carrying it out deceit and perjury were frequently and effectively employed. The statement showed resources, $2,135,000; due depositors, $1,888,000; surplus, $247,000. It is impossible to tell, or even to conjecture, the effect the closing of the bank will have on the people in Ulster county. A majority of the depositors were poor people. There are two other savings banks in the city, the Rondout and Kingston, the trustees of which have decided to demand sixty days' notice from depositors should there be a run of any consequence. The feeling against the trustees who signed the statement is bitter in the extreme, and they are characterized as thieves for making depositors believe the bank was solvent when they should have known its conditions. First Vice-President Brodhead, who had executive charge of the bank, also comes in for his share of censure in signing the statement and in allowing people to deposit their money. Ulster County Savings institution was incorporated by an act of the legislature April 12, 1851. The people had great confidence in the institution. It is said a number of bonds mentioned in the statement by the trustees were hypothecated in New York by Ostrander and Trumpbour. Another method mentioned was that deposits in many cases were entered on the bank's register for only a half and a third of the amount received, while entries in depositors' books were for the full amount, the difference being taken by the thieves. The streets of Kingston are filled with people and depositors arearriving on every train and by all manner of vehicles. Occasionally some of the excited farmers threaten to break into the bank building and get their money, while others suggest a lynching party be formed to hang Ostrander and Trumpbour. Business IS virtually suspended. A man who had $7,000 on deposit developed symptons of insanity and it is feared it may be necessary to take him to the asylum. The city officials fearing threats to burn the jail where Ostrander and Trumpbour are confined will be execute! summoned the fire department members of which are now watching the bank building, court house and jail opposite. The pr soners were arraigned this afternoon. Their examination was set for Monday morning. It was stated on the street to-day that after its affairs are wound up the bank will pay depositors seventy-five cents on the dollar. There was quite a run on the Kingston savings bank, which is opposite the closed

2. October 6, 1891 The Times Richmond, VA

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ANXIOUS ABOUT THEIR DEPOSITS. The Kingston Bank Officials Hope to Withstand the Kun. KINGSTON. N. Y., Oct. 5.-Many people came into town by railroad and wagon this morning from all directions to see about their deposits in the three savings banks. Those having money in the Ulster county institution, which has been plundered by its managers, have little hope of recovering their money. Those having deposits in the Klagston Savings Bank and the Rondout Savings Bank will have to wait sixty days to find out whether they can draw their money or not, as both those concerns have posted notices taking advantage of the law in that respect. Crowds of depositors are in line at each bank, with pass-books in hand, waiting their turn to give notice of withdrawal. The managers hope. however, to be able to restore confidence by showing the sound condition of the institutions. They have received remittances from Albany and elsewhere, which they rely on to carry them through the day at least It is reported from Newpaltz and Saugerties that runs are threatened on the savings banks at those places. The sixty days' notice will be demanded if runs occur there. Ostrander and Trumpb ur were arraigned to-day and withdrew their demand for an examination of the charges of wrecking the Ulster County Savings Institution. They were remanded to jail to await the action of the grand jury. TROY, N. Y., Oct. 5.-N. E. Brodhead, of Kingston, has been appointed temporary receiver of the Ulster County Savings Institution with a bond of $250,000. An injunction has also been granted restraining depositors and creditors from attaching the assets of the bank.

3. October 6, 1891 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, October 6, 1891

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The Kingston Bank Failure. TROY, N. Y., October 5.-Nicholas E. Brochead, of Kingston, was today appointed temporary receiver of the Ulster Savings Institution at Kingston. The receiver's bonds are $250,000. An injunction restraining the creditors and depositors from bringing attachments against the Lank S assets has been granted by the court. KINGSTON, N. Y., Oct. 5.-As expected, the city is rapidly filling up with people fromall over the county who were depostore in the three city savings banks. Business is at & standstill, and crowds stand all over discussing the wrecking of the Uister County savingsinstitution. The Kingston Savings bank and the Rondout Savings bank have each posted notices notifying the depositors that the sixty days' notice required by law must be given. A large crowd of depositors, with bank-books in their hands, stand in front of these institutions. Bynoon the block wherein the banks, courthouse and jail are situated was filled with depositors. There was a report that a targe number of men were coming from Creek Locks, and for this reason the Fourteenth militia company was ordered held in readiness for service. Ostrander and Trumpboar were arraigned this morning. They waived examin tion and were bound over to await the action of the grand jury next week.

4. October 6, 1891 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, October 6, 1891

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For Most Answers. H! Next to Most Answers. For Funniest Answer. H Next to Funniest Answer. THE KINGSTON STEAL. KINGSTON, N. Y., Oct. 5.-As was expected, the city is rapidly filling up with people from all over the county who are depositors in the three city savings banks. Business is at a standstill, and everybody is talking over the wrecking of the Ulster county Savings institution. The Kingston Savings bank and the Rondout Savings bank have each posted notices on their banking house doors notifying depositors that the sixty days' notice required by law must be given. The large crowds of depositors with bank books in hand stand in front of these institutions. It is said the Saugerties and New Paltz Savings banks will demand the sixty days' notice should there be any indication of a run. Depositors continued to arrive* in the city in large numbers this morning. and by noon the block of Wall street wherein the Ulster County Savings institution, the Kingston Savings bank, and the court house and jail are situated, was filled with people. Several policemen were stationed in front of the Kingston Savings bank to keep order. Of course, all the depositors could do was to give the required sixty days' notice. There was a report that a large number of men who held a meeting on Sunday were coming from Creek Lecks, and the Fourteenth Separate company members were notified to be prepared to report at the armory at a signal. The robbery and wreck of the bank continues to be the all-absorbing topic in the city and county. While, to a certain extent. the depositors and their friends in the city have become somewhat calmer, the depositors from the country towns, who have but just heard of the enormous thefts alleged against Ostrander and Trumpbour, are keeping up the excitement by their denunciations of the thieves.

5. October 8, 1891 Connecticut Western News North Canaan, Salisbury, Canaan, CT

Article from Connecticut Western News, October 8, 1891

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ULSTER COUNTY SCRASH Another Kingston Bank Will Not Open for Business. AT LEAST $463,000 EMBEZZLED. Bank Directors Censured by Indignant Depositors Who Had Been Led to Return Their Money by Statements That the Institution Was Perfectly Sound. KINGSTON, N. Y., Oct. 5.-Groups of excited people have all day been discussing the financial calamity which came with the susp vision of the Ulster County Savings institution. Persons against whom a shadow of sus rests are being kept under closesurTheir houses are picion veillance. The carefully bank watched by day and night. and its of detectives to ascured stockholders the aid depositors assist have in sewhat has become of the stolen and who were or certaining money directly indirect- the inly implicated in the plundering of stitution. The Management Censured. Had the trustees of the institution im mediately upon ascertaining that Treas urer Ostrander was a heavy defaulter placed the bank's affairs in the hands of the banking department and asked for investigation and had they acaccountants, an state immediate refused by further expert to cept any deposits or transact any business, butlittle odium would have been cast upon the management. As it was the statement made by the board of trustees, backed up by many of the leading business and professional men, restored the utmost confidence in the time honored institution, and hundreds of depositors continued their business as before. Must Have Known Its Condition. whohad withdrawn their accounts the two days' run This was done up very deposits. during Many returned to the when their closing hour of the bank on Friday, of the persons in charge must have known its rotten condition. It is this more than anything else that has exasperated many of of the depositors. It is stated by one the officials of the institution that nearly a year ago there were certain evidences that all was not right, but that the trustees were desirous of fixing the responsibility where it properly belonged, and for this reason worked the matter upsecretly, When they became fully assured that Ostrander was guilty of using the funds they deposed and arrested him. This they also did in the case of his assistant, Matthew T. Trumpbour. Preparing to Escape. The wonder is, however, why Trumpbour is behind the iron as had opportunity to escape. every today bars, evident That he he at preparing to escape was the of his arrest, for his was and had he not apwas partially time packed, time trunk been would just in the nick of be himself on prehended doubt enjoying that Canadian he did soil no today. The supposition is not hasten his departure on Friday for lack of ready funds and did not wish to excite suspicion by undue haste. Notwithstanding the statement made Ostrander both he and his accomplice in by crime have been extravagant and high livers. On all sides it is asserted that wine, women and stock speculation have and been their ruin. Both Ostrander Trumpbour have been twice married, and their later matrimonial events have been the subject of much scandalous gossip. For some reason Ostrander's oldest son took his departure from the parental roof immediately after the father's second marriage and never returned. Over $463,000 Is Missing. examiners have found already that Expert over $463,000 has been stolen by TreasOstrander and Matthew T. Trump bour, urer assistant treasurer, and it is feared that the stealings will exceed that amount. Ostrander was arrested about two weeks embezzling $75,000, and was ago of $89,000. His bondsmen bonds for last he under night was turned him over to Sheriff Dill and locked up. When Ostrander was arrested other there was a run on the bank, but trustees came to its rescue and the banks made a statement, showing that there was a surplus of $247,000. Another Bank to Close. meeting of the board of trustees of At Kingston a Savings bank it was decided the take advantage of the sixty days' notice, for to institution will also not open This will and business that today. greatly intensify Rondout excitement and runs on the Savings the bank and other money depositories bank feared. Meeting were held by and are lasting until a late hour, con- to sultations officials, are being had to devise plans disa panic. Messengers have been to meet to New York and other places tive runs. patched obtain sufficient cash to meet the prospec-

6. October 8, 1891 The Austin Weekly Statesman Austin, TX

Article from The Austin Weekly Statesman, October 8, 1891

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RESULTS OF THE KINGSTON FAILURE. Neighboring Banks Claiming the Sixty Days Notice to Prevent Heavy Runs. KINGSTON, N. Y., Oct. 5.-As was expected, the city is rapidly filling up with people from all over the country who are depositors in three city savings banks. Business is at a standstill and crowds stand around discussing the wrecking of the Ulster County Savings Institution. The Kingston Savings bank and the Rondout Savings bank have each posted notices on their banking house doors, notifying their depositors that the sixty days notice required by law must be given. Large crowds of depositors, with bank books in hand, stand in front of the institutions. It is said that the Saugerties and New Peltz Savings banks will also demand the sixty days notice should there be any indication of a run. The robbery and the wreck of the Ulster County Savings bank continues to be the all absorbing topic in the city and county. While, to a certain extent, the depositors and their friends have become somewhat calmer, the depositors in country towns, who have but just heard of the enormous theft alleged against Ostrander and Trumpdour, are keeping up the excitement by their denunciations of the thieves. The depositors continued to arrive in the city in large numbers this morning and by noon that block of Wall Street wherein the Ulster Company Savings Institution, the Kingston Savings Bank and the court house and jail are situated, was filled with people. Several policemen were stationed in front of the Kingston Savings Bank to keep order. All persons who had no business with the bank were ordered away. Mayor Kraft was at this point and aided in forming a line, SO there would be no struggling 1 on pushing. Of course all the depositors could do was to give the required ] a sixty days notice. There was a report that a large number of men who i held a meeting on Sunday was comt ing from Creek Lacks and that for 1 this reason the Fourteenth Infantry company had been ordered out. The D. company was not ordered out, but the I sheriff ordered Capt. Frear to be in f readiness and the company notified I by message every member of the comt pany to be prepared to proceed to arI mory at the signal. Ostrander and Trumpdour were arTO 1 raigned before Recorder Hussey this t morning and waived examination and , were bound over to await the action ( of the grand jury next week. ,

7. October 8, 1891 Delaware Gazette and State Journal Wilmington, DE

Article from Delaware Gazette and State Journal, October 8, 1891

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STOLE HALF A MILLION DOLLARS. A Kingston Savings Bank Robbed by Its Treasurers. Stealings Covered Up by Systematic Deceit and Perjury Practiced for a Period of Twenty Years--The Officials Under Arrest and the Bank Closed. KINGSTON, N. Y., Oct. 3.-The Ulster County Saving Institution has closed its doors, and is in charge of Bank Superintendent Charles M. Preston. Expert examiners have been at work since Tuesday, and have already disclosed that the enormous sum of $463,000 has been stolen by Treasurer Ostrander and Matthew T. Trumpbour, assistant treasurer, and it is feared that the stealings will reach over that amount. At midnight Superintendent Preston swore to a complaint charging Trumpbour with perjury in swearing to false statement contained in the July report of the bank to the banking department, and Trumpbour was arrested at his home by Chief of Police Hood. He had his clothes all packed up and was preparing to flee from town. He was locked up in jail. Ostrander was arrested about two weeks ago for embezzling $75,000 and was under bonds of $20,000, and his bondsmen last night turned him over to Sheriff Dill and he was also locked up in jail. When Ostrander was arrested there was a great run on the institution and banks came to the rescue of the Ulster County Savings Institution and the trustees made a statement that there was a surplus of $247,000. The statement being signed by such well-known men as Judge Alton B. Parker, Gen. George H. Sharpe, Judge William S. Kenyon, Postmaster Noah Wolven, John W. Searing of the Kingston Leader. and other reputable citizens, had a reassuring effect and the depositors who drew out their money brought it back. The system adopted by James E. Ostrander and Matthew T. Trumphour, the latter being fully cognizant of the steal and assisting in concealing it for the purpose of swindling the depositors and hiding the theft, which grew by degrees, was most ingenious, and for 20 years has baffled the skill of expert examiners. In carrying it out deceit and perjury have been frequently and effectively emploped. KINGSTON, N. Y., Oct. 5.-As was expected, the city is rapidly filling up with people from all over the country who are depositors in the three saving banks. Business is at a stand still and crowds stand everywhere discussing the working of the Ulster County Savings institution. The Kingston Saving Bank and the Rondout Savings Bank have each posted notices on their banking house doors notifying depositors that the 60 days' notice required by law must be given. Large crowds of depositors with bank books in hand stand in front of these institutions. It is said the Saugerties and new Paltze Savings Bank will demand the 60 days' notice, should their be any indication of a run. A RECEIVER APPOINTED. TROY, N. Y., Oct. 5.-At Justice Fursmans' special term this morning an order was granted on motion of the deputy attorney-general appointing Nicholas E. Berodhead of Kingston, temporary receiver of the Ulster County Savings Institution at Kingston.