1523. Burr & Knapp (Bridgeport, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
September 10, 1914
Location
Bridgeport, Connecticut (41.167, -73.205)

Metadata

Model
gpt-5-mini
Short Digest
9c48a6b7

Response Measures

None

Description

Burr & Knapp was a private banking and real-estate firm that suspended payment and was placed in receivership and later bankruptcy beginning September 10, 1914. Newspaper pieces describe insolvency, appointment of a receiver (John C. Chamberlain), bankruptcy proceedings, and eventual trustee/criminal proceedings. Some articles describe runs at other local banks caused by the failure, but there is no clear evidence of a depositor run on Burr & Knapp prior to suspension—rather the firm appears insolvent and closed and then put into receivership and bankruptcy.

Events (8)
1. September 10, 1914 Receivership
Newspaper Excerpt
Judge Howard J. Curtis of the superior court today appointed John C. Chamberlain temporary receiver of the banking and real estate firm of Burr & Knapp.
Source
newspapers
2. September 10, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Firm insolvent due to large unmarketable mortgages, poor real-estate investments, and alleged misappropriations; insolvency predates closure (insolvent four months before bankruptcy filing).
Newspaper Excerpt
temporary receiver of the banking and real estate firm of Burr & Knapp. The banking business of the firm was closed today, the firm having this morning notified its customers that it would be obliged to suspend payment on all checks for a time.
Source
newspapers
3. October 1, 1914* Other
Newspaper Excerpt
The recent failure of Burr & Knapp, a private banking house with a branch In the West End, did much, it is said to cause uneasiness among a certain class of the depositors.
Source
newspapers
4. October 3, 1914 Other
Newspaper Excerpt
Receiver found but $5 in bank of Burr & Knapp ... three months chance of creditors getting more than if they forced the firm into bankruptcy ... creditors voted to put the firm into bankruptcy proceedings.
Source
newspapers
5. October 17, 1914 Other
Newspaper Excerpt
Receiver John C. Chamberlain was able to get today in an effort to settle the affairs of Burr & Knapp, bankers and real estate operators who recently suspended business.
Source
newspapers
6. October 24, 1914 Other
Newspaper Excerpt
Following the filing of notice of adjudication of bankruptcy in the case of Burr & Knapp, private bankers ... It is probable that John C. Chamberlain, temporary receiver will be appointed temporary trustee.
Source
newspapers
7. November 16, 1914 Other
Newspaper Excerpt
Chamberlain completes duties as receiver and continues as trustee ... affairs now in federal court; receipts and disbursements summarized and trustee appointed.
Source
newspapers
8. May 30, 1916 Other
Newspaper Excerpt
Misappropriation of $110,000 of funds of the private banking firm of Burr & Knapp was charged ... The bank failed several weeks ago, with liabilities of $800,000.
Source
newspapers

Newspaper Articles (13)
1. September 10, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, September 10, 1914

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Russians Claim Evacuation of Cracow By Austrians English Absorbed In Report of Sir John French Reciting Detailed Story of English Defeat Receiver Named "LEAK" POLICE TORPEDO, NOT MINE, HOW WAR IN DEMARTINO For Burr & Knap DESTROYED PATHFINDER Statement Issued to Effect DEATH DENIED TAX WILL That Depositors Will Another Great Battle in the Neigh= Realize 100 Cents on the Rigid Investigation Being Made By Police Heads Brings Geo. borhood of Lemburg==French War Dollar. BE RAISED Fox in Limelight. Department Issues No Official Judge Howard J. Curtis of the suCharles A. Pratt, Man Who perior court today appointed John C. Beer, Wine and Freight TransFailed to Answer Coroner's Chamberlain temporary receiver of Statement This Afternoon portation To Be Assessed. the banking and real estate firm of Call, Believed to Be Present Burr & Knapp. The banking business Informant. Washington, Sept. 10-Democrats of of the firm was closed today, the firm London, Sept. 10-All England today is reading the fear the ways and means committee today having this morning notified its cusIntimations that there had been a tomers that it would be obliged to completed the war revenue tax bill fully dramatic and matter of fact report in which Sir John "leak' from police headquarters dursuspend payment on all checks for a providing for a tax of 3 per cent. on French tells of the severe defeat administered by the Germans time. ing the original investigation of John all freight transportation, an Increase Attorney E. O. Hull. law partner of to the English troops a few days after the landing of the English DeMartino's death, during November, of 50 cents on beer and 20 cents a galMr. Chamberlain made the following lon on all domestic wines. This will 1910, brought to the police department forces in France. The nation is solaced by the brave defense statement for the bankers today. net an estimated revenue of $107,000,yesterday, caused general consterna"The firm of Burr & Knapp is permade by its soldiers against an attack which is regarded as 000 a year. The, tax on freight was tion in the detective bureau. fecely solvent and will pay 100 cents agreed to after a conference with the overwhelming. Official notice was taken of the intifor every dollar it owes. The firm President who had expressed opposimations by Superinitendent Eugene makes many three years' mortgages tion to it. Birmingham and Captain George Aron good real estate selling these mortLondon, Sept. 10-A despatch to the Reuter Telegram Comnold, resulting in every detective begages to other people. At the present time there is no market for securities ing called to account and closely geuspany from Petrograd says that the Austrians have begun evacof this sort and the firm finds itself tioned by the police, heads. INCREASE IN DEATHS uating Cracow. Though it was ascertained that Delike a farmer. who is land poor with tective George Fox had been called lot of unmarketable mortgages on Cracow has been described as the main rallying point for to a West-end home and had there its hands. These securities will OVER AUGUST 1913 the Austrian and German forces in Galicia. It is the old capbeen asked indirect questions about the eventually be turned into good cash. conduct of a person striking another 'Under the circumstances it was ital of the kingdom of Poland and situated in a broad plain on by an automobile, he yesterday rtThere were 20 more deaths in Authought best to close the bank temthe left banak of the Vistula, 30 miles from the frontier of Sifused to acknowledge he was directly gust this year than in August, 1913, porarily until its affairs can be adasked or informed at that time of the according to the record of vital stalesia. It is a city of about 100,000 population and about 100 justed but you can assure every deactual conditions surrounding the Detistics compiled in the town clerk's of positor or claimant against the bank miles west of Lemberg. Martino death. fice. The total number of deaths was that they be paid in full." A further grilling is due today, as 166 for the month! The month shows The bank was open today but will officials have declared they will ferret be closed until the receiver has gone an alarming increase in the number London, Sept. 10-2:50 p. m. The official press bureau has to the bottom, with of deaths. 38 less its affairs. given out the following statement: intimations

2. October 3, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, October 3, 1914

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RECEIVER FOUND BUT $5 IN BANK OF BURR & KNAPP Believes Chamberlain Its Atty. Company Will Pay Debts. CREDITORS CONTINUE VOTE RECEIVED TO ERSHIP Real Are Estate Assets. Mines Large and Part of Firm's $5 but That instead drawer of $50 there when was affairs he took of in the as cash receiver of what the Attorney in Burr charge C. & Chamberlain Knapp firm was told at a the meeting creditors afJohn banking yesterday superior court Chamberlain state ternon. business of the of the Attorney explanation the room of the after the to in a which lengthy he found with the creditors conconsent to that under firm, pleaded have the receivership a three the a tinued. He said months receivership chance of and a half stood a better if the accreditors their money than force the firm By return now of pending were to pressed. present consented tion bankruptcy the creditors proposiArnold, unanimous into to vote the receivershippen the bankruptcy tion, but Messrs. who have did brought not vote vote the and Greenman, proceedings was taken on either way. The Harrie Le Brun the Attorney motion of hamberlain the Burr & said Knapp Mr. that bank Burr trouble with years ago between when 500 and began purchased 25 for $40,000, in the town lots of had Debeen building lots He said these had never pew, 600 N. Y. developed and load never any dividends. too much of a as the paid had been carry, especially when They firm to the money Mr. for one not have lots and Burr out and were now real firm Knapp Mr. did had, bought said to go the the lots several borrow the cash. about He $140,000, pressing that him that for if worth estate agents sell were the land continued and as an asset under a would authority to might eivership be he thought cents dollar. the the property creditors receive that 100 transon Speaking the of the events that the bank Cham- was to the day Attorney peto Mr. a payobliged berlain pired up said suspend, that considered Knapp the was same in that for he month. for the bill in honest ment cullar if he deferred had a Attorney receipt Cham an berlain as his pocket. Knapp was paying said that Mr. his bank had been than it took the man, each that day more to money an hour before the busout in, that closed even he up believed He said that that the together his inability close. bank iness combinati could ation go of circumstances on. to get money had with forced "You're the bank right, to he C. was Knight, a peculiar one Knapp of man," said Henry "Do you say but Mr. he wasn't creditors. on Tuesday, Mr. Knapp is honest now. It on worrying honest the was do any rednesday? to worry. an needn't who have that bank "I deposited they I his creditors $300 in closed,' declared was "When Mr. William stood the hour before Shaughnessy to the girl clerks money of the the handing by and one that Knapp didn't they worse highway was banking telling business took another my had money been than and himself but is protect money atrobbery. from tell me. a highway It One as can robiber, I got. but That not Any from deal to me. of such a returned the honesty should be parade here with objection this such tempt a to man who must are meet familiar with the business from Attorney all transaction." Chamberlain estate mortagages said on that which in owned real about $100,000 might be Bridgeport firm of full valuation company had thought said the the Waterhe realized. worth He of Co. stock which in was said worth also vleit $50,000 Hydraulic Mr. Chamberlain in mortface value. was about $113,000 Loan & Trust realCo. on ized. said gages that there in which the full Georgia value could be there Chamberlain in Arkansas offered for Mr. time ago was Attorney also a lead Knapp mine had been and he receiver which a short the hands of a A $10,000 that in consummated. faccorundum thought might be and a the Fails this sale mine in Canada in which marketwere able tory at Niagara the mine is made as part of assets. product of also mentioned Attorney Chamberrepresented the firm's said this investment was propably said: worth $80,000 lain in cash In and conclusion in he this mat$150,000 "I am now. probably than deeper any other together person financially Taking all one in this we will each this matter if believe out of than ter get more room. is continued and every proceedings the we of receivership us the bankruptcy would if now.' are pressed

3. October 17, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, October 17, 1914

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e $25,000 Stock At Burr & Knapp Sale No Market for City Title Guaranty Trust & Safe Deposit Co. Effects de A bid for $300 made by Hervey E. Burr, was the best and the only bid for $25,000 worth of stock of the City Title Guaranty Trust and Deposit Co. which Receiver John C. Chamberlain was able to get today in an effort to settle the affairs of Burr & Knapp, bankers and real estate operators who recently suspended business. About half a dozen prominent business men were assembled in the old offices of the firm when Receiver Chamberlain appeared to start the sale. Among them were Thomas Arnold and John H. Greenwood who have brought proceedings to have Burr & Knapp declared bankrupts. No other bid being forthcoming Mr. Chamberlain took Mr. Burr's bid under consideration and will submit it to Judge Burpee in the Superior court next Thursday when a petition will be heard to have a permenent receiver appointed for the firm. Attorney Chamberlain said today that the City Title Guaranty Trust and Deposit Co. was established about seven years ago by Charles J. Knapp, who is listed as the manager of the company. Attorney Chamberlain said the firm had spent about $60,000 in making a correct transcription of the land records of Bridgeport. He said the shares in the company were held by Mrs. Burr and Mrs. Knapp and there was some question as to whether they were part of the assets of Burr & Knapp, but that both owners of the stock had offered it in an effort to liquidate the debts of the banking firm. Attorney Chamberlain said the company had not earned any money because purchasers of real estate invarlably preferred to have a title searched by some attorney whom they knew rather than by a title searching company. Attorney Chamberlain said the company owed Burr & Knapp, $1,760 for the last year and a half of the company street Whoever in for the rent, offices purchases the in stock Main must assume this debt. Mr. Burr, who bid for the stock, is the treasurer of the company. Attorney Chamberlain is dts president.

4. October 23, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, October 23, 1914

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Deposits Are Returned The telegram , from Congressman Donovan was posted in the offices of the bank today and just inside the railing was piled hundreds of thous= ands of dollars showing the readiness with which the bank was to rheet all who came to withdraw their funde. The Hae of anxious faced women mostly those who do not speak English and who were led to believe their savings were in danger, by malicious stories circulated in their neighborhood, thinned out rapidly and this afternoon the line had entirely vanished. In the mean time many who were quick to withdraw their savings yesterday, returned today and redeposited their money. They were chagrined when they learned that they had lost their interest. They could not understand why this was necessary but were informed that while the officials regretted the action, the state laws compelled it. It is a credit to the good sense of the majority of the depositors that they were unalarmed by the turn matters took and many of the (solid citizens of the town spent time in reassuring those who seemed frightened by the harmful reports which did much to disturb many of that class of depositors who are unaccustomed to the banking laws of the state. The recent failure of Burr & Knapp, a private banking house with a branch In the West End, did much, it is said to cause uneasiness among a certain plass of the depositors. If the uneasy ones could have been persuaded against their rashness they would not today have their life's earnIngs at the mercy of the speculator who is always quick to prey upon those who are unfamiliar with the laws and customs of the state. Now that the foolish run is over It is earnestly to be hoped that the friends of the people who were led to withdraw their savings will do all that Is possible to encourage them to re-

5. October 24, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, October 24, 1914

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CHAMBERLAIN LIKELY TO BE TRUSTEE FOR BURR & KNAPP BANK Following the filing of notice of adjudication of bankruptcy in the case of Burr & Knapp, private bankers, Referee in Bankruptcy John W. Banks will hold a hearing of creditors within a few days at which a permanent receiver will be appointed. It is probable that John C. Chamberlain, temporary receiver will be appointed temporary trustee. Schedule of assets and liabilities have not as yet been filed, but will be prepared within a few days. According to the petition filed, the firm was insolvent four months before going into bankruptcy.

6. November 16, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, November 16, 1914

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Although Attorney John C. Chamberlain is said to have votes representing the majority of creditors of the defunct banking firm of Burr & Knapp, there is a report that a man not hitherto mentioned will be named trustee. Attorney Chamberlain claims to represent claims to the amount of $225,000. This would give him control, but Referee Banks has the power to disqualify any candidate and appoint any person he thinks best fitted for the place, So many claims were received this morn ing that Referee Banks declared the voting for trustees would not start until 3 this afternoon. Three nominations were made this morning, when the hearing started in the presence of a crowd that completely filled the superior court room. Justice Bacon Wakeman of Fairfield, nominated Attorney John C. Chamberlain. He said Mr. Chamberlain, because of his long association with Burr & Knapp and his familiarity with conditions, was best qualified for the position, Attorney L. S. Finklestone proposed the name of Attorney C. S. Canfield. He referred in glowing terms to Attorney Canfield's high standing in the community, his widely known legal ability and his reputation for integrity. He thought the best interests of the creditors would be served by the appointment of Attorney Cangfield. He told abou the manner in which Attorney Chamberlain has acted as receiver, but Referee Banks said the time for those remarks was after the nominations had been closed. Attorney R. C. Mallette nominated the American Bank & Trust Co. of East Bridgeport, for trustees. Then Attorney Finklestone arose again and began his arraignment of Attorney Chamberlain. He said Receiver Chamberlain had been lax in his methods. He had allowed certain books to get out of his possession so the City Title & Guarantee Co. had been able to gain advantages, The speaker opposed Mr. Chamberlain for trustee because he had been so closely connected with Burr & Knapp both socially and in a business way. He even charged that Mr. Chamberlain had given H.M. Knapp money to get away.

7. December 5, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, December 5, 1914

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BURR & KNAPP'S AFFAIRS NOW IN FEDERAL COURT Chamberlain Completes Duties As Receiver and Continues As Trustee COURT ALLOWS HIM $1,200 FOR SERVICES Cash Balance of $1,193 On Hand When Expenses for Two Months Are Paid The report. of Receiver John C. Chamberlain of Burr & Knapp, which has been accepted by the superior court, shows that after conducting the business for two months, he has $1,183 to. turn over to himself as trustee. After this report had been accepted by Judge Burpee he discharged Attorney Chamberlain as receiver. This proceeding formally takes the firm's affairs from the superior court. About a month ago some of the credItors threw the firm into bankruptcy so that from this time the United States' court will have jurisdiction. Receiver Chamberlain reported that during the two months he acted as receiver / the receipts were $75,131.50. The disbursements were $74,748. The latter included all expenses of conducting the business. Receiver Chamherlain presented a bill for $1,200 for his services which the court allowed. This sum also included counsel fees. Mr. Chamberlain remains in charge of the affairs of the involved banking house, by virtue of his appointment as trustee in the proceedings in the bankruptcy court. The effect of the discharge of Receiver Chamberlain is to take the affairs of the estate from the state court into the federal court.

8. January 19, 1915 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, January 19, 1915

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MOREHOUSE HAS BILL REGULATING PRIVATE BANKS Stratford Representative Wishes to Prevent Failures Like Burr & Knapp (Special to The Farmer) Hartford, Jan. 18 As a direct result of the recent failure of the firm of Burr & Knapp in Bridgeport and to prevent further financial collapses of this sort Representative Ivan Morehouse of Stratford will introduce a bill this week, bringing all private banking institutions under the rigid supervision of the state banking commission. Representative Morehouse's bill in its preliminary draft provides that all private banking houses shall maintain a reserve fund of 15 per cent of the aggregate deposits, four-fifths of this amount to bei in currency and one-fifth of bonds approved by the banking commission. At present no reserve fund is required of private banking institutions, a bond of $10,000 being the only surety to depositors. The bill further provides that should the reserve fund in any private bank fall below 15 per cent of the aggregate for a term of thirty days, no loans or discounts may be made and no dividends declared on capital stock. "All private banks will be required to make exhaustive reports of their financial status five times annually, on demand of the banking commission. Should a bank commissioner deem it necessary, the bill provides, in order to prevent the public from being defrauded, he or the state's attorney, for the county in which the bank is located, may apply to a judge of the superior court for the appointment of receivers. The bill provides that private banks shall bear their share of the expenses of the banking commission. Representative Morehouse says he expects there will be considerable opposition to his measure from private banks. He cites the recent failure of the Burr & Knapp concern in Bridgeport as a good argument in support of his bill. The fact that no reserve fund has been required of private banks leaves for the depositors in the Burr & Knapp bank practically the $10,000 bond as their only surety for deposits.

9. April 24, 1915 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, April 24, 1915

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Creditors Threaten Criminal Action In Burr & Knapp-Case (Continued From First Page.) "In other words," inquired Attorney Klein, "if a man deposited $1,000 today, the firm would use it for its own purposes and the man might not be able to get his $1,000 tomorrow?" The witness admitted that was about the true situation. "How long have you been with Burr & Knapp?' asked the lawyer. "Since 1899," she replied. "You've been well schooled," said Attorney Klein. Referee Banks was then asked to consider the case of William Shaughnessy of this city, who claims he was the last person to deposit in Burr & Knapp's before the firm failed September 10 last. He deposited $300 about 10 a. m. and the bank closed a few minutes later. When he returned at 4 in the afternoon and demanded his money he couldn't get it. He testified that a woman clerk pointed to an envelope containing his money but said she couldn't give it to him unless he got an order from the receiver. Shaughnessy claimed two other depositors on that fatal morning returned and got their money. Mrs. Rahm said she couldn't explain it unless it was because Shaughnessy's money, being the last, was placed on top of a pile in the drawer and was used to pay other claims. Receiver Chamberlain said there was just $164 cash in the bank when he took charge at 4 p. m. September 10. Attorney Thomas M. Cullinan, counsel for Shaughnessy, claimed his client is entitled to this sum. Referee Banks said he would reserve decision on all matters that came before him today.

10. May 1, 1916 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, May 1, 1916

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Creditors Who Press Burr & Knapp Get Cash BackFunds of Depositors Helped Pay Household Expenses - Knapp Defends Action. Hearing of Bankrupt Is Reopened Before Commissioner Today - Comley Challenges Bowers' Motive in Investigation-Find Ridiculous Sales on Books. Herbert M. Knapp, head of the former banking firm of Burr & Knapp, was called upon the witness stand before Referee in Bankruptcy John W. Banks today to be examined by Spotswood D. Bowers, counsel for several creditors, as to his acts for the defunct company and many entries that appear on the books. Among the facts disclosed at this morning's session, a continuance of which is on this afternoon are these: Mrs. H. M. Knapp drew $1,800 for her household expenses in addition to her regular division of profits from the business and moneys paid to her by her husband. Knapp, though many times "worried about the finances of the company, believed up to the day of the receivership, that something would come up which would permit the concern to go on." A court award of $187,000 to the Watervliet Hydraulic Co. came too late to prevent catastrophe. That the Fairview Lawn property, recently sold for less than $1,000 was, as previously testified by Hervie Burr, worth between $50,000 and $60,000 and that other securities of the company appraised at ridiculously low estimates have since been sold for large, sums of money. The Burr & Knapp Co. was accustomed to "kite" checks upon the Georgia Loan & Trust Co. through the First-Bridgeport National Bank and that shortly before the failure the practice was called "irregular" and Burr & Knapp were called upon to deposit $125,000 worth of securities with the local bank. The special account with the Georgia Loan & Trust Co. under which these check operations were held, was disclosed to show totals of $392.000 worth of such transactions during May and June, 1914. An effort to disclose whether these check transactions had had the countenance of the directors of the Georgia Loan & Trust Co. or had been done by Knapp personally was abortiye and Knapp declared that he is not now a director of the company and if he were he would not disclose a list of the stockholders to the investigators. Although $130,000 in drafts were returned to Bridgeport in 1914 with checks aggregating $109,500 the investigation showed that no records were to kept of the securities turned over the Bridgeport bank. An attempt to show that a divided not was kept at one of the local banks for the express purpose of covering overdrafts was not clearly accounted for in the investigation today. Efforts to show that Mrs. Mary H. Burr was aware of transactions being made by the Burr & Knapp firm brought forth the assertion from the witness that if any criminal transactions should be uncovered in the investigation he was alone responsible and would accept the blame. It was disclosed, however, that in the summer of 1913 the concern was much worried by financial conditions and that Mrs. Burr saved the day by having a Mrs. Penfield journey to Boston (Continued on Page 2.)

11. May 30, 1916 New-York Tribune New York, NY
Article from New-York Tribune, May 30, 1916

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HELD IN $110,000 THEFT Bridgeport Banker Misappropriated Funds, Is Charge. Bridgeport, Conn., May 29.-Misappriation of $110,000 of funds of the private banking firm of Burr & Knapp was charged to-day with the arrest of Herbert M. Knapp, partner in the bankrupt firm. Knapp also is charged with complicity with Solomon Lavozsky in appropriating $4,033 belonging to the Hungarian Benefit Society's Confederation. A warrant for Lavozsky's arrest was granted by Judge Curtis. Knapp was made a prisoner later and immediately released on $6,000 bonds. Lavozsky was not arrested, however. It. is expected that he will be served with the warrant to-morrow. The bank failed several weeks ago, with liabilities of $800,000. The receiver asked to be discharged yesterday, but the creditors objected, insisting upon an investigation.

12. November 16, 1916 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, November 16, 1916

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Oscar H. Peters, junior master of the Boston High School of Commerce for nine years, is dead. Robert M. Parker was elected vice president of the American Sugar Refining Co. of New York. Carrol Galt of Washington, nephew of Mrs. Woodrow Wilson, committed suicide by taking poison. Gold coin to the amount of $100,00 was withdrawn from the sub-treasury for shipment to South America. Gold coin to the amount of $2,500,sub000 was withdrawn from the treasury for shipment to Argetnina. Re-election congratulations have been received by President Wilson from rulers of several foreign nations. Thirty-one officers of the Fifth New Jersey Infantry will resign when they are mustered out of the Federal service The City of Berlin has paid out $40,460,000 to needy relatives of soldiers in the field since the beginning of the war. Julius Rosenwald, of Chicago, has given $500,000 for the proposed medical department of the University of Chicago. The British prohibition on importation of cotton hosiery. established October 3, has been suspended until January 1. Forty-four thousand German naval held by the naval prisoners are prisoners are 31,000 British British held and by the Germans. Four trainmen were killed when a locomotive drawing a freight train near on the Lackawanna road blew up Hainesburg, N.J. The United States Grand Jury met alIndianapolis to investigate the at leged illegal registration and voting frauds in Indiana, E. L. Cord, of Phoenix, Arizona, won the Dougias-Phoenix automobile race, 8 covering the 273 mile course in hours and 13 minutes. A gift of $10,000 to be used in connection with the expense of the course in military training was announced by University of Pennsylvania A record price for beef cattle was at the Kansas City stock yards when paid 40 head, averaging 1.357 pounds each, sold for $11.40 per hundred pounds. Nine-tenths of the ballots cast in Tuesday's election by the New last militiamen on the Mexican border York reached the office of the Secretary of State. The Department of Cominerce an. nounced that 968 sailing, steam gas and unrigged vessels were built in end- the United States during ten months ing November 1. Detective Sergeant W. T. Thompson a in New York Hospital from complication died of diseases resulting from paa bullet wound he received while trolman in 1907 Resolutions calling upon President Wilson to "urge Congress to place an embargo on all foodstuffs leaving the the country" have been adopted by Columbus City Council. Rear Admiral Adolph Marix, U S. retired, has received that his nephew, N., Squadron Commander Reginald in Marix, has been seriously wounded an air battle in France. The Department of Commerce the rethe exports of cotton for ports ended November 11 at 188,307 bales week against 154,093 bales in the corresponding week last year. Herbert M. Knapp, head of the pribanking house of Burr & Knapp, vate of Bridgeport which was wrecked with was heavy losses to the depositors, sentenced to jail for one year. Clarence Ware, a member of the was severely bitten by a artillery, shark in the Panama canal yesterday to opposite Corozol. He was taken the Ancon hospital for treatment. Mary McDonigle, aged 18, is hos- hicherself to death in a coughing at Wilkes-Barre, and doctors Five are pital unable to give her any relief. weeks ago she started to hiccough. Two Bellevue Hospital nurses which were injured when the ambulance in to the were hurrying a patient they collided with a motor truck at York. hospital First Avenue and 59the Street, New Trial by court-martial of Capt. cruiser Edward L. Beach of the armored on Memphis, wrecked in a hurricane the lives, was ordered by loss of the many Santo Domingo reef with the Navy Department. Isadore Matin, of Brooklyn, was from arrested charged with having stolen for the $4.000 to $5,000 a year in silver five years from his employers 109 last & Miller, silversmiths, of Piser South Fifth Street, Williamsburg. of a regulative dog will law Passage the sheep raising industry was Chas. whereby be encouraged in New York W. State Wicks predicted Utica .chairman by Senator of the Wicks Legof islative investigation Committee. fifth transfusion of blood has been MilA into the veins of Mrs. Inez sufframade Boissevain, New York was holland gist now in Los Angeles, reported and the pa- as tient's "critical" condition tonight by the attending phy- to sicians. Pleurisy developed today complicate the severe anemia. Movements of Steamships. New York, Nov. 15.Arrived: Chicago

13. January 18, 1917 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, January 18, 1917

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Chamberlain Tells of Agreement to Stifle Competition Here. # BURR & KNAPP BANK ASSETS CHIMERICAL Witness Tells Referee That Arkansas Lead Mines were "Holes In Ground." John C. Chamberlain contributed more sensational testimony of the affairs of Burr & Knapp, the Georgia Loan & Trust Co. and the method by which insurance companies have agreed to stifle competition in Bridgeport, at yesterday afternoon's session of the Burr & Knapp trusteeship hearings in the United States District Court. Of the "Coleman" letter, written by the president of the Georgia Loan & Trust Co., in which the expression "real money" was given much prominence by the complaining petitioners, Mr. Chamberlain made full explanation. He told how the Georgia Co. had been formed to buy 10 per cent. mortgages from the farmers in Georgia and adjoining states which were brought here and replaced at 8 per cent. or less, that the business was immensely profitable but could not be operated by the northern banker. At the failure of Burr & Knapp it was necessary to have some agency here. Hervey Burr had volunteered to try to organize a new company. He had hopes of having his cousin, Miss Penfield, of Boston, H. LeRoy "Royal" Lewis and a Mr. Henshaw of Bridgeport, contribute some "real money." This fact was communicated by Chamberlain to his Georgia friends and became the basis of the "real money" letter. There was no other "real money" in sight, Chamberlain testified. The stock of the City Title Guaranty & Trust Co. was taken for the purpose of reorganizing the Title Guaranty & Trust Co., because the legislature was not in session. No stock of the new company was ever sold and the impression that it had increased largely in value is a mistae, Chamberlain said. Supplementing previous testimony with regard to the value of the insurance business of Burr & Knapp, Chamberlain sprung the surprise of the afternoon when he told of the manner in which insurance companies doing business in Bridgeport are bound together by an agreement not to appoint new agents in this city. "In the first place this insurance business is the most peculiar ever built up in this city. It was founded actually on a system of compulsion. No man could obtain a mortgage from Burr & Knapp except he cancel all insurance outstanding on property and transfer it to companies held by Burr & Knapp. Knapp quarrelled with every insurance agent in the city of Bridgeport yet held seven different companies' business here. He got these before a general agreement by which no insurance company can establish a new agency in Bridgeport. He built up an organization that in 1913 did $3,800 business in premiums. "When the Burr & Knapp failure occurred a general adjuster came to this city and said that the companies permitted a receiver to become temporary agent. They appointed me. Then the bank started. The adjuster came back. I had been appointed trustee. The adjuster said that the joint rules of the companies did not permit a trustee to be an agent. They would not permit me to sell the insurance agencies though they said I could sell the books, etc. He said that the companies were not going to have their agencies lost under the agreement and that the seven representatives of the various companies represented by Knapp were then in the city ready to hold a general meeting and save their agencies here. I took no part in the meeting but was later informed that they had turned the agencies over to the Title Guaranty & Trust Co." "I told the agents that while I owned the bulk of stock in the City Title Co. I had no money to put into the new concern and did not know where I could get it. Stiles Goodsell had encouraged Hervey Burr in the idea that a new company could be established. Burr went out and got his intimate friends to place their money in the concern. He financed the whole arrangement. Royal Lewis put in about $16,000 cash, I think, Mr. Henshaw $1,000 and Mr. Burr's cousin the balance. I sold Mrs. Burr's interest for $300. And it was advertised for sale in all the city newspapers for a week. I would not have even joined with anybody in the purchase of it at that time. My interest at that time was in the Georgia Loan & Trust Co. In the transfer of stock what was intended to be done was that I should receive $10,000 par value, Mrs. Knapp, $5,000. After the purchase of stock and the payment of obligations of the City Title Co. to Burr & Knapp the new company had about $12,000 cash. "I am perfectly frank to admit that I wanted Hervey Burr to make a living out of it, but outside of that, no living person could sell the business of Burr & Knapp to anybody else and there is nobody today, if the Title Guaranty Co. goes out of business, who can take that Georgia Loan & Trust Co. business and make it pay even though in the past over thirty millions of dollars' worth of securities have been sold here in twenty years past. "In fact the Title Guaranty Co. to whom the stock was sold for $300 has run behind $600 in two years on title searching business. The records have been kept up but title searching business in this city is controlled by a few persons and until they die the business will not go elsewhere. "Burr & Knapp had no profitable business of any kind to turn over to anybody," Chamberlain asserted in answering a question as to why the mortgage and rent collecting business of the bankrupt estate had not been sold. Burr & Knapp actually ran behind $15,000 a year on business expenses for the last ten years of their business. Besides this in living expenes they ran behind another $15,000. The total average annual deficit of the company for the lat eight years of their business was approximately $30,000. "Did you get those figures from