15759. East Side Bank (New York, NY)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: February 1, 1895
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 0fc4068e

Response Measures

Full suspension, Books examined

Other: Clearing house agent (National Shoe and Leather Bank) refused to act as redemption agent, prompting examination and closure.

Description

Multiple articles (Feb 2, 1895) report heavy withdrawals over two days driven by insidious rumors, and that the State Superintendent closed the bank for examination after its clearing-house agent (National Shoe and Leather Bank) withdrew as redemption/clearing agent. State examiner indicated the bank could not go on and a receiver was likely — so a run led to suspension and apparent permanent closure/receivership.

Events (3)

1. February 1, 1895 Run

Cause: Rumor Or Misinformation
Cause Details: Insidious and scurrilous rumors circulated for weeks alleging impaired solvency; deposits declined and heavy withdrawals occurred over two days (about $100,000–$229,584).
Measures: Officers requested an examination by the State Banking Department; cooperated with clearing-house and redemption agent initially.
Newspaper Excerpt: These attacks have resulted in something like a run on the bank during the last two days... During the two days about $100,000 was drawn out... the bank within the last two days has paid out $229,584.
Source: newspapers

2. February 2, 1895 Suspension

Cause: Correspondent
Cause Details: The National Shoe and Leather Bank withdrew as the East Side Bank's clearing-house/redemption agent; coupled with rumors and withdrawals, the State Superintendent took possession and suspended operations for examination (closing the doors).
Newspaper Excerpt: The East Side Bank... has been closed by Superintendent of Banks Preston in order that an examination into its condition may be made.
Source: newspapers

3. February 3, 1895 Other

Newspaper Excerpt: It will be impossible for the bank to go on again... it is hard to say what will happen after the bank is in the hands of a receiver.
Source: newspapers

Newspaper Articles (10)

1. February 2, 1895 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, February 2, 1895

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NEW YORK BANK SHUT. The East Side Bank With $460,000. Liabilities Goes to the Wall. NEW YORK, Feb. 2.-The East Side Bank on Ground street has been closed by Superintendent of Banks Preston, in order that an examination into its condition may be made. The capital stock of the bank is $100,000. The cash on hand when business was suspended was $115,000, liabilities to depositors, $460,000. The balance of the assets of the bank are in bills receivable. Thomas R. Majors, a Canadian, and formerly a resident of Toledo, 0., is the president.

2. February 3, 1895 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, February 3, 1895

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New York, Feb. 2.-The Eastside bank on Grand street has been closed by Superintendent of Banks Preston in order that an examination into its condition may be made. The capital stock is $100,000; cash on hand when business was suspended, $115,000; liabilities to depositors, $460,000. The balance of assets are in bills receivable. Thomas R. Manners, Canadian, formerly a resident of Toledo, O., is the president.

3. February 3, 1895 New-York Tribune New York, NY

Article from New-York Tribune, February 3, 1895

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THE EAST SIDE BANK CLOSED. BROUGHT ABOUT BY THE WITHDRAWAL OF ITS CLEARING HOUSE AGENT. ITS OFFICERS SAY THAT THE TROUBLE IS DUE TO THE CIRCULATION OF FALSE RUMORS AFFECTING THE CREDIT OF THE INSTITUTION-ITS CONDITION. The State Banking Department yesterday closed the East Side Bank, at No. 135 Grand-st. and at half past 9 o'clock Mr. Judson. State Bank Examiner. took charge. and posted on the door of the institution the simple announcement that the bank was closed pending an examination. The officers of the bank were not there when Mr. Judson took possession. but when they arrived they were highly indignant, and said there was no occasion for such an action. Meyer Thalmessinger, the vice-president, had this to say about the action of the Banking Department: Why we are closed up I don't know. We are all right. and the action taken this morning was a complete surprise to me. The action is plainly the result of the scurrilous attacks recently made upon the bank by a section of the press that is unscrupulous and foul. These attacks have resulted in something like a run on the bank during the last two days, although it was slight compared with what it would have been If confidence in us had been less great. During the two days about $100,000 was drawn out. but our deposits amounted to about $600,000. so that about half a million was left in. Our capital is $100,000 and our surplus is $25,000. while our additional profits amount to about $13,000. We have no liabilities beyond our deposits. Mr. Judson, in reply to questions, made the following statement: You are aware that for some time there have been rumors affecting the solvency of the bank. some of them baseless, but others sufficiently plausible to call for an examination. I began the examination two days ago. and, while I am unable to make public now any results, my reports to Mr. Preston caused him to direct me to close and take possession of the bank to-day. As I am now only in the midst of the investigation, nothing definite can be announced. It will be some four or five days before the examination will be completed So far as I am aware, no charges affecting the Integrity of any of the officers of the bank have been made It was agreed. in view of the rumors. by Mr. Manners, the president: Mr. Crane. president of the Shoe and Leather Bank: the Clearing House agents of the bank and myself. that It would be best to overhaul thoroughly the condition of the bank and set at rest the rumors, If false, or permanently close the bank, if circumstances required it. THE PRESIDENTS EXPLANATION. Thomas R. Manners, the president of the institution. said: An explanation is due to our depositors and friends of the circumstances connected with the suspension J: the East Side Bank For several weeks insidious rumors have been circulated by persons formerly connected with this Institution tending to impair Its standing and credit. These rumors had no foundation, and were prompted by malicious motives. Laboring under this disadvantage, the officers and directors exerted every possible means to avert the final disaster But the mischief had been accomplished and our deposits gradually declined The bank within the last two days has paid out $229,584. equal to an average reserve of more than per cent. It was an impossibility on short notice further to realize upon Its assets without great sacrifice. We destred an examination by the Banking Department and have no hesitation in saying that the result of such examination will show that this Institution has been conducted in an honest, upright and business like manner, and that every depositor will be paid in full. The Immediate closing of the bank was due to the action of the National Shoe and Leather Bank, which refused on Friday to act longer as its Clearing House agent. The Shoe and Leather Bank fent out notices to this effect yesterday in time to prevent the other banks accepting any drafts of the East Side Bank for Monday's clearances. John M. Crane, president of the National Shoe and Leather Bank. said that the action of Superintendent Preston was undoubtedly due to the notices sent out by the Shoe and Leather Bank to the associated banks announcing its withdrawal as the closed bank's redemption agent. Mr. Crane was of the opinion that there was nothing wrong with the East Side Bank Its suspension was due really to lack of business There had been no Impairment of capital, so far as Mr. Crane knew, and President Manners said that there was an actual surplus of $10,000. THE EXAMINATION OF THE BANK It has been known for several days that the State Banking Department has been making an examination of the affairs of the East Side Bank but the officers of the institution, as well as the bank examiner. said that it was a regular examination. and the bank was perfectly solvent. According to the last statement of the bank, on December 19. its condition was as follows:

4. February 3, 1895 New-York Tribune New York, NY

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LIABILITIES $100,000.00 Capital stock 25.000 00 Surplus 11,110 45 Undivided profits 697.794 23 Deposits 97 93 Unpaid dividends $834,002.63 Total RESOURCES $537,427 21 Loans and discounts 35,215.78 Liabilities of directors Due from trust companies, State and National banks 134,973.60 15,107 28 Other real estate 15,000.00 Bonds and mortgages 14,867.37 Stocks and bonds 5,518.72 Specie 55,538.00 Legal-tenders etc Cash item 1.938 43 Current expenses 6,941.24 11,475.00 Assets not otherwise specified Total $834,002.63 The directors of the East Side Bank at the last report were Walter Lut jen. John Overbeck, John Byrnes, Martin Simons, Samuel Cohn, Thomas S. Ollve, G. Wessels, Emanuel J. Myers, Jacob Horowitz Thomas R. Manners, A. Stern and Francis Halpin. The bank was chartered in 1888. Its present officers are Thomas R. Manners, president: M. Thalmessinger. vice-president, and Mr. Henderson, cashier. Mr. Manners, the president, is a Canadian, and was at one time associated with Erastus WIman. The East Side Bank was a State institution, started in 1888 at No. 459 Grand-st. and two years ago moved to its present quarters, No. 135 Grand-st. The bank began business with a capital of $100,000, and had a subscribed surplus of $25,000 Business at first was fair, and two dividends were paid early in the bank's careerone of 2 1/2 per cent and one of 3 per cent. Of late years there have been no dividends. Mr. Thalmessinger used to be with the Mechanics and Traders' Bank. He brought $250,000 in deposits to the new bank. and got $5,000 salary, as did the president. John Byrnes and William R. Clark both preceded Mr. Thalmessinger as vicepresident. The paving teller, Mr. Henderson, was also the bank's assistant cashier. There was no regular cashier. William B. Nivin, the last cashier, left the institution in September last. and Henderson filled his place. There are sixty-five shareholders who have stock. Mr. Kelly, president of the Fifth National Bank, was the holder of twentyfive shares, and Mr. Thalmessinger held forty shares. The depositors were chiefly East Side merchants and small tradesmen. Half a million was the average amount of the bank's deposits. OFFICIAL NEGLIGENCE. The closing of the doors of the bank calls attention again to the gross negligence which has been the chief characteristic of the State Banking Department. The case of the East Side Bank is similar to that of the Madison Square and the St. Nicholas banks, and is another example of an institution lending money on colhardly worth its weight as old paper. of the lateral The suspension bank discloses and the that fact that it was filled up with bad paper If the Banking Department had done its work carefully these loans must have been discovered It also discloses the fact that the never practised long partment ago. that supervision which loans. dewould have prevented the placing of such NOT POSSIBLE FOR IT TO GO ON. State Bank Examiner Judson said last evening Avenue before he would be to a at days the Park Hotel ready that it might make be public bank. several full financial statement in relation to the "Has there been any defalcation?" he was asked. "I think not." he replied. "We have been keeping close watch upon the bank lately on account of a which were in circulation after the services former cashier were dispensed reports of the with. because We it knew that the bank was a weak sister, Continued on Second Page

5. February 3, 1895 New-York Tribune New York, NY

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THE EAST SIDE BANK CLOSED. Continued from First Page. was not paying expenses and was running behind in its business, and at length we stepped in and took possession in order to prevent loss to depositors." "Will the depositors lose anything?" "I feel confident that there will be no loss to the depositors, and it is possible that the stockholders will not lose much, but a receivership is expensive and it is hard to say what will happen after the bank is in the hands of a receiver." "The affairs of the bank will, then, be closed?" "Yes, It will be impossible for the bank to go on again." "You do not feel that the State Banking Department was remiss in allowing the affairs of the bank to get in such a condition?" "No. We have kept watch of the bank and have taken possession in time to prevent loss to the depositors. I do not think the public can accuse the department of failure to guard the interests of the public in the banks. It is not yet certain that the depositors will lose anything in the case of the Madison Square Bank or of the St. Nicholas Bank. The depositors can recover from the stockholders, under the law that makes a stockholder responsible for twice the amount of his stock." "In the case of the closed Harlem River Bank, where there was a defalcation, will the depositors lose anything?" "That will depend upon the question as to the responsibility of the stockholders."

6. February 3, 1895 The Herald Los Angeles, CA

Article from The Herald, February 3, 1895

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A Bank Closed. NEW YORK, Feb. 2.-The Eastside hank on Grand street has been closed by Superintendent of Banks Preston, in order that an examination into its condition may be made. The capital stock is $100,000; cash on hand when business suspended, $11,500; liabilities to depositors, $400,000. The balance of the assets are in bills receivable. Thomas R. Manners, a Canadian, formerly a resident of Toledo, Ohio, is the president.

7. February 7, 1895 River Falls Journal River Falls, WI

Article from River Falls Journal, February 7, 1895

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THE EAST. Dr. F. W. OSTRANDER, who had the reputation of being the oldest practicing physician in Brooklyn, N. Y., died at the age of 90 years, IN New York the Leonard Smokeless Powder company, with a capital of $10.000,000, made an assignment. THE well-known leader of New York society, Ward McAllister, died of the grip, aged 64 years. AT the age of 70 years Judge E. Rockwood Hoar, United States attorney general under President Grant in 1870, died at his home in Concord, Mass. BY a lamp explosion at Philadelphia, Pa., Mrs. Zindlinger and her twin daughters were burned to death. ALEXANDER VONKARIAGE, of Wilkes barre, Pa., because his 2-year- old child would not stoperying, dashed its brains out on a hot stove. THE firm of Brower & McGowan, New York brokers, suspended with liabilities of $400,000. OFFICER P. J. DEVERAUX shot exCapt. M. D. Fenton and then killed himself in the police station at Holyoke, Mass. IN New York the East side bank was closed pending an examination into its condition. It owes depositors $460,000. THE death of ex-Congressman M. D. Stevens occurred in his chair at the Times office in Middletown, N. Y. FIRE destroyed the Phoenix glass factory at Monaca, Pa., the loss being $175,000.

8. February 9, 1895 The Diamond Drill Crystal Falls, MI

Article from The Diamond Drill, February 9, 1895

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DOMESTIC. ARIZONA bandits held up a Southern Pacific train near Wilcox and blew the express safe with dynamite, securing $50,000. AN investigation showed that twenty-one of the chain gang of convicts at Savannah, Ga., were permanently disabled by exposure to freezing weather. EXCHANGES at the leading clearing houses in the United States during the week ended on the 1st aggregated $942,531,065, against $917,003,847 the previous week. The increase, compared with the corresponding week in 1894, was 24.2. THE Michigan senate passed a joint resolution submitting to the people an amendment to the constitution provideing an educational qualification for electors. THE steamship Kingdom, forty-two days out from Shields, for Charleston, S. C., was thought to be lost with her crew of thirty-five. INTENSELY cold weather prevailed in the northwest. At Grantsburg, Wis. the thermometer registered 42 degrees below zero and at Negaunee, Mich., 40 below. THERE were 354 business failures in the United States in the seven days ended on the 1st, against 363 the week previous and 370 in the corresponding time in 1894. THE bank of Trenton, Neb., was ordered closed by the state banking board. in THE Leonard Smokeless Powder company, with a capital of $10,000,000, made an assignment in New York. A TREASURY statement shows that the receipts from all sources during the month of January were $27,804,399 and the expenditures $34,823,447, a deficit for the month of $6,719,048 and for the fiscal year of $34,282,070. BECAUSE his 2-year-old son would not stop crying Alexander Vonkariage, of Wilkesbarre. Pa., dashed its brains out on a hot stove. CHAMPION CORBETT discussed sparring matches before a committee of the Minnesota legislature, defending his profession. THE Iron Mountain mine in Shasta county, Cal., was sold for $300,000 cash to an English syndicate. JOHN RENO died at Columbus, Ind. He was one of the first train robbers in the United States and was a daring individual. CATHERINE MORRISON, of New York, a wealthy young woman, committed suicide by cutting her throat in a church confessional. BUD ELLIS, a Methodist preacher at Aurora, Mo., while insane killed his wife, shot his daughter and took his own life. THE coinage at the several mints during January was: Gold, $3,098,300; silver, $574,000; minor coins, $68,200. Of the silver coined $200,000 was in silver dollars. Since July 1, 1894, the number of silver dollars coined was 5,293,978. BROUWER & McGowan, brokers on the New York stock exchange, have suspended with liabilities of $400,000. THE deaconess home, a hospital in Cleveland, O., was destroyed by fire and four of the fifteen inmates were cremated. DURING January the fire losses in the United States amounted to $10,936,968, against $13,576,485 in January, 1894. A ROCK ISLAND passenger train was derailed near Topeka, Kan., and twenty passengers were hurt. THE East side bank of New York was closed pending an examination into its condition. It owes depositors $460,000.

9. February 14, 1895 Grant County Herald Lancaster, WI

Article from Grant County Herald, February 14, 1895

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For the Week Ending Feb The little village of Jonestown, Miss., was completely destroyed by fire. The Phoenix glass factory at Monaca, Pa,, was burned, the loss being $175,000. A. S. Bowers, of Denver, Col., was murdered and his store fired to hide the crime. Ex-Congressman M. D. Stivers died in his chair at the Times office in Middletown, N. Y. Harrison Stevens (colored)was hanged at Dawson, Ga., for the murder of J. G. Wells a year ago. A boiler in an icehouse at Elwood. R. I., exploded. killing three men and injuring ten others. Capt. John Tuttle, the oldest lake captain in the country, died at Salem, Wis., in his 82d year. Matthew Elan & Co., dealers in fruits in New York, made an assignment with liabilities of $150,000. A Rock Island passenger train was derailed near Topeka, Kan., and twenty passengers were hurt. The Iron Mountain mine of Shasta county, Cal., was sold for $300,000 cash to an English syndicate. At Wichita, Kan., Capt. James M. Lewis, a retired army officer, dropped dead from heart disease. A loss of about $100,000 was caused by a fire in the Minneapolis branch of the Moline (Ill.) plow works. Assistant Attorney General Newell, of Illinois, has given an opinion that women cannot be tax collectors. Brouwer & McGowan, brokers on the New York stock exchange, have suspended with liabilities of $400,000. "Green goods" dealers were flooding Illinois and Indiana with circulars telling how to secure $40,000 for $2,000. During January the fire losses in the United States am wi ted to $10,936,968, against $13,576,485 111 January, 1894. Capt. J. B. Sawyer, the oldest locomotive engineer in the United States, died at Denton, Tex., aged 83 years. Gov. McKinley announces that he is not a candidate for Senator Brice's seat, leaving a clear field to Foraker. The East side bank of New York was ciosed pending an examination into its condition. It owes depositors $460,000. in the police station at HoΓyoKe, Mass., Officer P. J. Deveraux shot exCapt. M. D. Fenton and killed himself. Col. Nathaniel O. H. R. Dawson, United States commissioner of education for many years, is dead in Selma, Ala. Great Britain, France and Russia are said to have instructed their ministers to advise China and Japan to come to terms. The house of W. H. Fenton at Port Republic, N. J., was burned and he. his wife and three children perished in the flames. A portable engine exploded on a farm near Moorsland, Ind., killing three men and injuring three others, one fatally. Ten thousand Mexicans marched to the palace and tendered their services to Diaz in the event of war with Guatemala. The two children of George Stitzel were burned to death in their home at Sheffield, Mo., during the absence of their parents. Influential members of Holy Trinity Catholic church at Bucyrus, O., refused to obey the mandate to withdraw from secret societies. Hundreds of car loads of provisions were awaiting distribution in Nebraska, while the destitute were starving and freezing. Frederick Andrews. aged 30, died in the county hospital at San Francisco the day after his sister found him and told him he was heir to $250,000. Three partially consumed sticks of dynamite were found under = Baptist in which revival meetings were being held. The eargo of the New HamburgAmerican line new steamer Phoenecia, which reached New York on its first

10. February 20, 1895 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, February 20, 1895

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THE NEWS EPITOMIZED. Eastern and Middle States. WARREN F. PUTNAM, ex-President of the Exeter (N. H.) National Bank, who was found guilty of embezzlement, was sentenced to five years in State Prison. His defalcations wrecked the bank. A YOUNG woman named Catherine Morrison killed herself with a razor in a confessionalbox in the Roman Catholic Church of the Epiphany, in New York City. Religious mania was supposed to have been the cause. ALL the troops remaining on duty in Brooklyn were ordered back to their armories and for the first time since the beginning of the trolley tie-up, the peace of the city was entirely in the hands of the civil authorities. Much disorder prevailed, though the cars were run on almost schedule time. THE East Side Bank, a State institution, of 135 Grand street, New York City, was obliged to suspend payments. THEODORE WELD, one of the last antislavery agitators, died at his home in Hyde Park, Mass., at the age of ninety-one years. He was born in Hampton, Conn. He died of old age. BROOKLYN trolley strikers made a big demonstration at City Hall Plaza to induce the Aldermen to vote to revoke trolley car licenses. The police dispersed the crowd with clubs. The Aldermen passed the resolution, 10 to 8. RESOLUTIONS were passed at a great Reform mass meeting in Cooper Union, New York City, denouncing the Lęxow Police bills and demanding the establishment of the principle' of non-partisanship in municipal affairs. FREDERICK DANMELLEE and his six-yearold son were burned to death during a fire in Danmeller's house at Pittslurg, Penn. Fireman John Patterson fell from the buildng and was fatally injured. A STORY of love, jealously, murder, and suicide ended in the killing of William Becker by Carl Fesecke, who then killed himself, in an immigrants' boarding house at New York City.