Wallkill Bank - Middletown, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 1, 1877*
Location: Middletown, New York (41.445, -74.424)

Metadata

Model: gpt-5-mini
Short Digest: a171b6ae

Response Measures

None

Description

Articles describe the Wallkill Bank as defunct with a receiver (John Burroughs) already in place and settlements being made for depositors and stolen/misappropriated bonds. No contemporaneous bank run is mentioned; this is a bank failure with receivership and liquidation activity (1877-1878).

Events (3)

1. July 1, 1877* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Misappropriation of bonds by officers and other claims/embezzlement leading to insolvency and failure; bank described as defunct and in receivership by mid-1877.
Newspaper Excerpt: the late Wallkill Bank; receiver of the late Wallkill Bank
Source: newspapers

2. July 26, 1877 Receivership

Newspaper Excerpt: The case of John Burroughs, receiver of the late Wallkill Bank, against ex-State Senator Edward M. Madden ... has been decided ... in favor of the defendants, on the ground that Mr. Wheeler had a counter claim against the bank (New York Herald, July 27, 1877).
Source: newspapers

3. February 23, 1878 Other

Newspaper Excerpt: A meeting of the stockholders and receivers of the defunct Wallkill Bank was held to-day ... Receiver Burroughs reported that he had collected in round numbers $208,000, including $37,000 in assessments. He had paid depositors $158,000; ... and has in cash on hand $8,700. (Feb 23-24, 1878).
Source: newspapers

Newspaper Articles (3)

1. July 27, 1877 The New York Herald New York, NY

Article from The New York Herald, July 27, 1877

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Article Text

DECISION IN A BANK CASE. MIDDLETOWN, N. Y., July 26, 1877. The case of John Burroughs, receiver of the late Wallkill Bank, against ex-State Senator Edward M. Madden and William Clemsen, his partner in business, to recover $15,000 on the Indorsement of the late Ehsha P. Wheeler, has been decided by Hon. E. L. Fancher, the referee, in favor of the defendants, on the ground that Mr. Wheeler had a counter claim against the bank This decision, unless reversed on appeal, will increase considerably the dividend on the estate of Mr. Wheeler, who died bankrupt, and may necessitate an assessment on the stockholders of the bank to pay the Diteen per cent due depositors.

2. February 24, 1878 The New York Herald New York, NY

Article from The New York Herald, February 24, 1878

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Article Text

THE DEFUNCT WALLKILL BANK. MIDDLETOWN, N. Y., Feb. 23. 1878. A meeting of the stockholders and receivers of the defunct Wallkill Bank was held to-day to consider the manner in which affairs were conducted by Receiver John Burroughs. General C. H. Van Wyck, who had examined the bills in the Comptroller's office, at Washington, reported that the attorney's bills were excessive, and that other expenses were extravagant. A Middletown law firm having the largest bill, offered to abate $1,500 thereon. This bill was made against the bank previous LO its failure and and been allowed in full. the directors demand a reduction of $3,000, including a charge of $1,500 for counsel to the receiver. Mr. Burroughs, who bas had $2,500 per year for five years, offered to serve without pay after the 1st of April next. Since the meeting Receiver Burroughs reported that he had collected in round numbers $208,000. including $37,000 in assessments. He had paid depositors $158,000; owners of the stolen bonds on the twenty. Ave per cent com. promise, $11,000; taxes una builders' lien, $5,400; le gal expenses, $8,200; other expenses, $16,600; and has In cash ou band, $8,700. There has been expensive litigation over bouds misappropriated by officers and other claims are still pending.

3. February 25, 1878 New-York Tribune New York, NY

Article from New-York Tribune, February 25, 1878

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Article Text

BUSINESS TROUBLES. THE WALLKILL BANK. MIDDLETOWN, N. Y., Feb. 24.-A meeting of the stockholders and receivers of the defunct Wallkill Bank was held yesterday to consider the manner in which the affairs were conducted by Receiver John Burroughs. General C.H. Van Wyck, who had examined the bills in the Controller's Office at Washington, reported that the attorney's bills were excessive and that other expenses were extravagant. A Middletown law firm having the largest bill, offered toabate $1,500 thereon. This bill was made against the bank previous to its failure and had been allowed in full. The directors demand a reduction of $3,000, including a charge of $1,500 for counsel to the receiver, Mr.Burroughs, who has had $2,500 per year for five years, whooffered to serve without pay after the 1st of April next. Since the meeting. Receiuer Burroughs reported that be had collected in round numbers $208,000, including $37,000 in assessments. He had paid depositors $158,000; owners of the stolen bonds on the 25 per cent compromise, $11,000; taxes and builder's lien, $5,400; legal expenses, $8,200: other expenses, $16,600; and has in cash on hand $8,700. There has been expensive litigation over bonds misappropriated by officers, and other claims are still pending.