15300. Anglo-American Savings and Loan Association (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 6, 1900
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
33f51509

Response Measures

None

Description

No run or depositor panic is described in the articles. The association was enjoined from making payments (Dec 1900) and was placed in receivership (by Jan 1901 and thereafter under state receivers). Ultimately receivers controlled and sold assets, indicating permanent closure/liquidation.

Events (3)
1. December 6, 1900 Suspension
Cause
Government Action
Cause Details
Federal court injunction restraining the association from transferring property or making payments; petition seeking appointment of a receiver by shareholders following alleged improper payments and asset concerns.
Newspaper Excerpt
Judge Lacombe ... issued an order for the Anglo-American Savings and Loan Association of New York to appear ... and show cause why an injunction should not be granted and a receiver appointed ... The order restrains the association ... from making any transfers ... or making payments of any kind to stockholders or to withdrawing stockholders.
Source
newspapers
2. January 17, 1901 Receivership
Newspaper Excerpt
Important developments are looked for ... in connection with the affairs of the Anglo-American Savings and Loan Association, now in the hands of receivers. ... Joseph M. Dickey, one of the temporary receivers of the Association, testified ... handling the affairs of the company for two or three weeks ... The Anglo-American Association is now declared to be a bankrupt concern (Jan 1901).
Source
newspapers
3. April 20, 1901 Other
Newspaper Excerpt
Everything now in the hands of the receivers, and they may sell the assets and give stockholders the money. ... This throws the affairs of the company wholly into the hands of the State receivers, Charles S. Wilbur and Edward D. Candee ... the receivers can now go ahead and sell the company's assets and divide up whatever money there is among the stockholders.
Source
newspapers

Newspaper Articles (10)
1. December 6, 1900 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 6, 1900

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CONDENSED DISPATCHES. The Bulgarian cabinet has resigned owing to ministerial differences. By an explosion of gas in the Maxwell colliery of the Lehigh and Wilkesbarre Coal Co. at Ashley, Pa., Wednesday. SIX men were burned, four of them, it is feared. fatally. The mine was badly dam aged. The cause of the explosion is unknown. Eagle City on the American Yukon was connected by telegraph with Dawson City, Oct. 20, giving through service from Eagle to Skagway. The same system is also extended south to Atlin. Eagle is the first town on the American side of the boundary and is about 100 miles fr 111 Dawson. The strike of 400 men at the Royal City Planing mills, Vancouver, B. C., was settled, Wednesday. through the intervention of Federal Labor Commissioner Brenner. The management promised to defer the cut in wages which caused the strike for four months and the strikers thereupon returned to work. Secretary Gage's report has made an excellent impression in financial circles at Berlin. A financier to whom the correspondent of The Associated Press showed the figures, exclaimed: "It is magnificent and confirms the condition of the American money market, as indicated by the various loans to Europe during the year.' Robert Turner. 45 years old. of Taunton, Mass. was found dead by his ro m mate in a room at a hotel at Toronto Ont., Tuesday night, the gas being turned on. He had been there since May last, in the employ of a silver plate company. but was discharged. He left a note saying that despondency over his discharge caused his suicide. Fred T. Gilmore of Baxter. Ia., was knocked senseress, late Tuesday night, near Michigan avenue and Harmon court, Chicago, and robbed of $11,229 in negotiable papers, $23 in money and a watch. The robbers, Wm. Cummings and Geo. Hayes, after a desperate battle with detectives, were captured and all the boo y save the watch and money was recovered. Gilmore went to Chicago to exhibit cattle at the Live Stock show. Elmer J. Smart, assignee for the Rochester Savings Bank of Richester. N. H., which closed its doors three years ago, owing to the absorption of its business by other banks that were able to pay a higher per cent. of interest. states that he has petitioned the supreme court to grant a hearing Dec. 29. for the final settlement of the bank's affairs. It is expected that the final dividend of 13 7-10 per cent. will be paid to depositors, Jan. 10, 1901. Judge Lacombe, in the United Sta es circuit court at New York, Wednesday. issued an order for the Anglo-American Savings and Loan Association of New York to appear before him, Dec. 7. and show cause why an injunction should not be granted and a receiver appointed as asked for in a bill 01 complaint of James W. Carpenter, Marvin P. Carter and Pulaski P. Carter against the association. The order restrains the association until further notice of the court from making any transfers or conveyances of their property or making payments of any kind to stockholders or to withdrawing stockholders. Two men, one about 50, the other 20

2. December 6, 1900 New-York Tribune New York, NY
Article from New-York Tribune, December 6, 1900

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LOAN ASSOCIATION ENJOINED RECEIVER ASKED FOR THE ANGLOAMERICAN-COUNSEL SAYS IT IS SOLVENT. Judge Lacombe in the United States Circuit Court yesterday issued an order for the Anglo-American Savings and Loan Association of New-York to appear before him on December 7 and show cause why an injunction should not be granted and a receiver appointed, as asked for in a bill of complaint made by James W. Carpenter, Marvin P. Carter and Pulaski P. Carter, of Pennsylvania, shareholders in the association. The complainants also ask for the appointment of a special master to ascertain and determine their true interests in the association and the interests of other shareholders. The order restrains the association until further notice of the Court from making any transfers or conveyances of its property or making payments of any kind to stockholders or to withdrawing stockholders. The complainants in the case are shareholders to the amount of $4,445 46. They demand that this be paid to them. and allege that they are entitled also to a pro rata share in the interests, assets and proceeds of the association. The complaint alleges that the rights and duties of the officers and directors have been violated ever since the assoclation's organization in 1891 by the method adopted of paying out to withdrawing and other shareholders dividends without legally declaring or apportioning any dividends on the stock. The Anglo-American Savings and Loan Association is a National association. Its officers are: Thomas L. James, president: John D. Vermeule, vice-president; George M. Hard. treasurer, and A. H. Gilbert, secretary and general manager. E. L. Scofield, consulting counsel of the company, said late yesterday: The proceedings for an injunction and a receiver come as a surprise to us. I will say that the company is not insolvent and is nowise bankrupt. We will fight the application to the best of our ability. The fact of the case is that the company has plenty of assets, mostly real estate, but of the non-productive order for the most part. If a receiver should be appointed the assets of the company would be sacrificed, and there is no occasion for this. Our assets are ample to pay all our obligations to every stockholder. At a recent meeting of the Board of Directors it was voted to adopt a plan which would safeguard the assets of the company. We had prepared a statement which was to have been Issued to-day to all the shareholders, setting forth the plan proposed. This statement will be issued to-day. The statement is signed by the following directors: Thomas L. James, John D. Vermeule, George M. Hard. Phineas C. Lounsbury, Charles Gerding, Edward Thompson and Abel H. Gilbert. It was on this statement that the bill of complaint was founded The statement speaks of the increasing number of withdrawals, and asks the aid of shareholders in cerrying out a plan for realizing the full value of the association's assets for the benefit of creditors and stockholders. The signers expressed assurance of the association's solvency, and believe that, if judiciously handled. the assets would pay to the stockholders the full value of their stock. But. unless some suitable plan was at once adopted to this end, the properties would be sacrificed under forced sales at a most serious loss. The statement places the assets at $3,013,305.59 and liabilities, exclusive of the earned dividends and surplus, at $2,667,517 99. An explanatory statement shows valuable properties in Buffalo, Brooklyn, Philadelphia, Washington and Yonkers. An appraisement placed the value of these properties at $4,952,374. prior mortgages of $2,457,830 61 leaving the association's equity at $2,434,543 39. A real estate company was projected. to be organized under the laws of the State, to take over all these properties at their book cost value, giving to the association the bonds and mortgages of the real estate company. covering the properties at 5 per cent interest. The members were requested to exchange shares in the association for stock in the real estate company. The plan was approved by Frederick D. Kilburn, State Superintendent of Banking.

3. December 7, 1900 New-York Tribune New York, NY
Article from New-York Tribune, December 7, 1900

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SAY RECEIVER IS NOT NEEDED. COUNSEL FOR ANGLO-AMERICAN SAVINGS AND LOAN ASSOCIATION NOT READY TO ARGUE CASE TO-DAY. Officers of the Anglo-American Savings and Loan Association, of No. 256 Broadway, declared yesterday that the association was perfectly solvent, and that there was nothing to justify the application of James W. Carpenter, Marvin P. Carter and Pulaski P. Carter, of Pennsylvania, for a receiver. Thomas L. James, president of the association, and also president of the Lincoln National Bank, said the charges were false, and would be shown to be such when the case came before the courts. As told in The Tribune yesterday, Judge Lacombe, of the United States Circuit Court, set down the hearing of the case for to-day, but C. A. Deshon, counsel for the association, said yesterday that the motion was sprung upon him so unexpectedly that he could not possibly be ready with his argument against a receivership to-day, but would ask for more time. Mr. Deshon said the assets fully equalled the liabilities, and that the assets could be realized without loss if a sale was not forced by impatient creditors. The appointment of a receiver would prove exceedingly costly to the stockholders.

4. December 15, 1900 New-York Tribune New York, NY
Article from New-York Tribune, December 15, 1900

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QUESTIONS THE STATE COURTS. APPLICATION MADE IN UNITED STATES COURT FOR RECEIVER FOR THE ANGLO-AMERICAN. William A. Russell, of Russell & Winslow, on behalf of seven stockholders of the Anglo-American Savings and Loan Association, applied to Judge Lacombe, in the United States Circuit Court, yesterday for the appointment of a receiver for the association. His argument was based chiefly on the question of jurisdiction. He said the United States courts should take charge of the case, and added: We cannot trust the State courts nor the Attorney-General. The State Superintendent of Banking has allowed these people to file reports which covered up transactions in real estate out of which they must have made a great deal of money. William B. Hornblower, for certain other stockholders, argued that the case was without the jurisdiction of the United States courts. He called the attention of the court to the fact that Justice Maddox had appointed two receivers for the property in this State. Judge Lacombe said that he had not known that the State courts had taken any action in the case. He took the papers and reserved his decision.

5. December 20, 1900 Hutchinson Gazette Hutchinson, KS
Article from Hutchinson Gazette, December 20, 1900

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Can't Trust the State Cour's. New York, Dec. 15.-Application on behalf of seven stockholders of the Anglo_American Savings and Loan Association has been made to Judge LaCombe in the United States Circuit court for the appointment of a recelver. The argument of the attorney was based chiefly on the question of jurisdiction. He said the United States courts should take charge of the case. "We cannot trust the stalte courts," said the attorney, "nor the attorney general. The state superintendent of banking has allowed these people to file reports which covered up trains_ actions in reall estalte out of which they must have made a great deal of money." The attorney for other stockholders argued that the matter was entirely without the jurisdiction of the United Staties courts. He called the attention of the court to the fact that Justice Maddox had appointed two receivers for the property in this state. This seemed to be news to Judge LaCombe and he remarked that he had not known that the state courts had taken any action in the matter. He took the papers and reserved his decision.

6. January 17, 1901 New-York Tribune New York, NY
Article from New-York Tribune, January 17, 1901

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ANGLO-AMERICAN'S AFFAIRS. RECEIVERS WANT THE SAMPSON ORDER MODIFIED - IMPORTANT DEVELOPMENTS EXPECTED TO-DAY. Important developments are looked for to-day in connection with the affairs of the Anglo-American Savings and Loan Association, now in the hands of receivers. Abel H. Gilbert, secretary and general manager of the company. was to go on the stand yesterday at the hearing before ex-Judge George G. Reyonlds, the referee appointed to hear testimony and report on the advisability of transferring the real estate holdings of the alleged net value of $2,117,044.54 to the Empire Realty Company, organized by the directors of the AngloAmerican Association, for the purpose of preventing foreclosures and loss by first mortgage holders of real estate on which the Anglo-American company holds second mortgages. Russell & Winslow. representing Clarence A. Sampson, a shareholder. presented at the hearing yesterday Justice Dickey's order granting Sampson the rights of a party defendant, and this may have caused a change in the programme. Counsel for the directors objected to the scope of the order. An adjournment was then taken till 10 o'clock this morning. Edward P. Coyne. representing the receivers, said that he would apply to Justice Dickey to-day for -an order modifying the order giving Sampson the privileges of a party defendant. Thomas L. James, George M. Hard, Edward Thompson and Abel H. Gilbert, directors of the Empire Realty Company, held a long conference yesterday afternoon at the Lincoln National Bank, of which Mr. James is president. "It is reported that the directors of the Empire Realty Company contemplate withdrawing their offer to the receivers of the Anglo-American association, and now wish to let the permanent receivers go on with winding up the affairs of the company. Is that true?" Mr. James was asked. "No," said Mr. James, "there is no truth in the story." A lawyer who said he represented shareholders with claims amounting to $125,000 visited Russell & Winslow yesterday with the idea of pooling issues with that firm in bringing an action against the directors of the Anglo-American: association. No arrangement was effected. It was reported last night that Russell & Winslow were really making their fight in order to get receivers appointed by the Federal Court. after which. it was said. a call for a meeting of the stockholders in this city would be issued. and an assessment would be suggested as the best plan for raising money to pay interest where foreclosures are threatened. Mr. Russell declined to confirm the story. The Buffalo equities, for which cash was paid by the Anglo-American, amount to $1,084,000. One year ago a round million dollars was offered for these equities. but on account of the death of a Boston man the deal fell through temporarily. Now, the same persons who offered $1,000,000 will not give $100,000. preferring to wait and see what they can get out of the wreck.

7. January 18, 1901 The Penn's Grove Record Penns Grove, NJ
Article from The Penn's Grove Record, January 18, 1901

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INVESTORS MAY REALIZE Anglo-American Associati. n May Pay Twenty Cents on the Dollar The Receiver Testifies That Company's Annual Income Was $50,000, and That Expenses Were $150,000. New York City.-From Investigations completed by Deputy AttorneyGeneral Kisselburgh. representing the State Banking Department. It would appear to be practically certain that the Anglo-American Savings and Loan Association. with liabilities on November 20 last of $3,013,305.59. will pay less than twenty cents on the dollar to its shareholders, and that the attempt of Its directors to stave off receivership liquidation by transferring the company's extensive holdings of real estate to a separate real estate company will come to naught. Deputy Attorney-General Kisselburgh will also represent to the Court at the proper time that in the annual statement of the company. signed by the directors. the mortgages executed by Mr. Pearce, one of the directors of the company. which figure in the company's table of assets as $4,342,872.04, were represented as interest bearing loans, whether intentionally or otherwise, and that such representation makes the directors subject to criminal prosecution if the State authorities desire to construe the statement as perjury. Joseph M. Dickey, one of the temporary receivers of the Association. testified in the referee's proceedings before former Judge George G. Reynolds that in a general way, SO far as he had been able to judge from his handling the affairs of the company for two or three weeks. the expenses of the company for the last year had been about $150,000, while the income had been only about $50,000. The Anglo-American Association is now declared to be a bankrupt concern. There is no money in Its treasury with which to pay the sharehold ers, and suit has been begun by several dissatisfied investors with a view to forcing foreclosure proceedings. People in every walk of life have put money into this concern, because of the prominence of the men at its head. and the big inducements it offered. From seven to ten per cent. per annum was guaranteed to investors. and for a time these promises were fulfilled. Somehow, it became noised about that the Association was making large speculations in wild-cat real estate, and a general rush of shareholders to secure their money began. The treasury was soon depleted and the Association was forced to announce its inability to liquidate outstanding obligations.

8. January 30, 1901 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, January 30, 1901

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INVESTORS MAY REALIZE Anglo-American Association May Pay Twenty Cents on the Dollar. The Receiver Testifies That Company's Annual Income Was $50,000, and That Expenses Were $150,000. a New York City.-From investigations completed by Deputy AttorneyGeneral Kisselburgh. representing the State Banking Department, it would appear to be practically certain that the Anglo-American Savings and Loan Association, with liabilities on November 20 last of $3,013,305.59, will pay less than twenty cents on the dollar to its shareholders, and that the attempt of its directors to stave off receivership liquidation by transferring the company's extensive holdings of real estate to a separate real estate company will come to naught. Deputy Attorney-General Kisselburgh will also represent to the Court at the proper time that in the annual statement of the company. signed by the directors, the mortgages executed by Mr. Pearce, one of the directors of the company. which figure in the company's table of assets as $4,342,872.04. were represented as interest bearing loans, whether intentionally or otherwise. and that such representation makes the directors subject to criminal prosecution if the State authorities desire to construe the statement as perjury. Joseph M. Dickey. one of the temporary receivers of the Association, testified in the referee's proceedings before former Judge George G. Reynolds that in a general way, SO far as he had been able to judge from his handling the affairs of the company for two or three weeks, the expenses of the company for the last year had been about $150,000, while the income had been only about $50,000. The Anglo-American Association is now declared to be a bankrupt concern. There is no money in its treas. ury with which to pay the sharehold. ers, and suit has been begun by several dissatisfied investors with a view to forcing foreclosure proceedings. People in every walk of life have put money into this concern, because of the prominence of the men at its head, and the big inducements it offered. From seven to ten per cent. per annum was guaranteed to investors. and for a time these promises were fulfilled. Somehow, it became noised about that the Association was making large speculations in wild-cat real estate, and a general rush of shareholders to secure their money began. The treasury was soon depleted and the Association was forced to announce its inability to liquidate outstanding obligations.

9. April 20, 1901 New-York Tribune New York, NY
Article from New-York Tribune, April 20, 1901

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DIRECTORS MAY BE SUED. COURT WON'T ALLOW TRANSFER OF ANGLO-AMERICAN LOAN HOLDINGS. EVERYTHING NOW IN THE HANDS OF THE RECEIVERS, AND TH EY MAY SELL THE ASSETS AND GIVE STOCKHOLDERS THE MONEY. The directors of the Anglo-American Savings and Loan Association suffered a reverse yesterday at the hands of the Appellate Division. Justice Goodrich, of the Second Department, in Brooklyn, handed down a decision to the effect that the plan submitted by William B. Hornblower and other counsel for the transfer of the second mortgage holdings of the insolvent concern, amounting to about $2,000,000. to the Empire Realty Company, organized by the directors of the Anglo-American company, would be an injustice to certain shareholders of the AngloAmerican. This throws the affairs of the company wholly into the hands of the State receivers, Charles S. Wilbur and Edward D. Candee, who, unless the case is appealed, can now go ahead and sell the company's assets and divide up whatever money there is among the stockholders. Russell & Winslow, who opposed the Empire Realty Company's plan, will now, it was said last night. follow up thir original intention of bringing an action against the directors of the Anglo-American company, charging them with fraud and deceit in securing funds from stockholders. Frank A. Waggonner, of Russell & Winslow, said yesterday afternoon: "Justice Goodrich holds that under the laws of this State the company could not legally loan more than 50 per cent of the first value of property on first mortgages, and if there were uninvested money remaining the directors were required to invest it in bonds of the United States, or in securities such as are bought by savings/banks of this State. In scores of cases people in moderate circumstances were solicited by the agents of the Anglo-American company to withdraw their savings from banks and invest them with the company, because, as alleged. the company was investing the money only in first mortgages and real estate." Charles A. Deshon, of counsel for directors, when asked yesterday if the company intended to appeal, said: "We shall not know till Monday. The burden of protecting the interests of the stockholders now rests with the receivers, and will so remain unless the United States courts should take action changing the situation." The directors of the Anglo-American company, according to its last annual statement. were as follows: Thomas L. James, president of the Lincoln National Bank: John D. Vermeule, president of the Holland Trust Company: George M. Hard, president of the Chatham National Bank: Phineas C. Lounsbury, president of the Merchants' Exchange National Bank: Charles Gerding. Edward Thompson, John Fertig, William R. Pearce and A. H. Gilbert. Mr. Gilbert was secretary and general manager. A question from the beginning has been. Are the directors personally liable for the losses of the mismanaged company? Russell & Winslow asserted that a transferrence of the old company's assets to a new company would tend to relieve the directors of the old (Anglo-American) company from personal liability. With reference to this phase of the matter, Justice Goodrich, whose opinion was concurred in by all the justices save Justice Woodward, who did not vote, says: In addition to this, it may be possible that a claim will be made that the directors are liable for investing money in the Pearce mortgages, in violation of Articles 10 and 11 of association, in reference to which I express no opinion. If such a claim were successfully asserted and collected the stockholders would quite probably be insured against any substantial depreciation in the book value of such of the assets as are represented by the Pearce mortgages item. It was learned last night that counsel for the directors of the Anglo-American were a few days ago on the point of settling out of court the claims of the shareholders represented by Russell & Winslow. but withdrew their proposition. The liabilities of the company amount to $3,013,305.59 and the nominal assets are set down as $4,342,872 04. Against the nominal assets are first mortgage liens of more than $2.000.000. If the first mortgages are foreclosed it is feared that the $2,000,000 in second mortgage equities will practically be wiped out, leaving the shareholders little or nothing.

10. August 15, 1901 The Washington Times Washington, DC
Article from The Washington Times, August 15, 1901

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SANCTIONED BY THE COURT. A Plan to Buy Anglo-American Association Assets Approved. In the consolidated cases of James W. Carpenter et. al., James H. Claggett et. al., and Walter F. Siddall et. al. against the Anglo-American Savings and Loan Association, Justice Clabaugh yesterday signed an order approving the proposal of the Empire Realty Company made to the receivers, both in New York and this city, of the association, to purchase its assets. The association was last winter declared to be insolvent by the Supreme Court of the State of New York, and its affairs were placed in the hands of receivers. This action was taken on the application of the Attorney General for the State of New York. The association has considerable property interests in the District of Columbia, and local receivers for those assets were appointed by Judge Bradley some months ago, for the purpose of conserving and protecting them until the final winding up of the affairs of the association. In an effort to save as much as possible for the stockholders, the former directors of the association, comprising among their number ex-Postmaster General James, John D. Vermeule, of the Goodyear Rubber Company; George M. Hard, President of the Chatham National Bank of New York City, and others, organized the Empire Realty Company, under the incorporation laws of the State of New York, and this company offered to purchase all the assets of the association, and assume its indebtedness, save that due to stockholders. for 50 per cent of the book cost value of the assets, paying in cash $175,000, giving a bond to the receivers for a quarter of a million dollars that the property so purchased would net to the receivers 50 per cent of their book cost value, and giving a blanket mortgage on all of the property SO purchased by the realty company. As the realty company sells the property so purchased, it is required to turn over to the receivers the proceeds of sales made until the 50 per cent book cost value has been realized and paid to the receivers.