16156. Matthew Morgan's Sons (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
June 24, 1884
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
2b9ff440

Response Measures

None

Description

Multiple contemporary dispatches (dated June 24–25, 1884) report that Matthew Morgan's Sons 'suspended' and made an assignment (assignee W. P. Dickson). Cause repeatedly given as shrinkage/ depreciation in railway and other securities (large holdings of Denver & Rio Grande, C.C.&I.C., Mexican bonds). No article describes a depositor run; the firm suspended and was assigned, indicating permanent failure/closure.

Events (1)
1. June 24, 1884 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension attributed to depreciation/shrinkage in value of securities and railroad bonds (Denver & Rio Grande, C., C. & I. C., Mexican national bonds) and inability to realize on real estate; assignment made to protect creditors; assignee W. P. Dickson named in reports next day (June 25).
Newspaper Excerpt
Matthew Morgan's Sons, bankers, of William street, have suspended.
Source
newspapers

Newspaper Articles (10)
1. June 25, 1884 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, June 25, 1884

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THE WALL STREET FAILURE. History of the Firm of Morgan's Sons. NEW YORK, June 24. Matthew Morgan's Sons, bankers, of William street, have suspended. The concern is an old one. The stock market was heavy and depressed on the announcement of the failure but at the present time 18 steadier. The firm of Morgan Sons are not members of the Stock Exchange. They are known as merchant ban)ers. They drew exchanges and dealt in securities not on the stock list. Morgan's Sons have been in business in this city about 35 years. They came originally from New Orleans and have always been correspondents of several London houses. They are rated at $1,000,000. Their suspension is due to the shrinkage in valves. At the Stock Exchange the firm had been identified with the Denver aud Rio Grande and the C. C. and I. C. Railroad Cos. Henry Morgan was formerly a director of the Denver & Rio Grande C. The house gained considerable notoriety for its opposition to the Pennsylvania Railroad Co. some years ago in the c. C.& I. C. litigation. Eventually the firm sold its holdings of the C. c. & I.C. bonds. amounting to $400,000, at 129 after it had offered to let them go ac 109. This transaction was the talk of the street at that time. The house has dealt extensively in exchange. The Morgan family owns the New York Hotel and other valuable property in this city.

2. June 25, 1884 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, June 25, 1884

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FINANCIAL. Another Excitement on Wall Street. NEW YORK, June 24.-Great excitement was occasioned on Wall street today by the announcement that the old established banking house of Matthew Morgan's Sons had been forced to suspend. Henry and Edward Morgan, who comprise the firm, said they would probably make a statement this after-

3. June 25, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 25, 1884

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BUSINESS DIFFICULTIES. Suspension of the Well-Known BankingHouse of Matthew Morgan's Sons. NEW YORK, June 24.-Matthew Morgan's Sons, bankers, have suspended. The firm were not members of the Stock Exchange. They are known as merchant brokers, and drew exchange and dealt in securities not on the stock list. The suspension is attributed to shrinkage in the value of railroad bonds, principally Denver & Rio Grande, of which they were large holders at high prices. Edward Morgan is expected from Europe in a few days. Their liabilities are mainly due on 'Change, but they have no liabilities on the Stock Exchange. The members of the firm are large real estate owners, the New York Hotel being one of their holdings, and it is believed their inability to realize on real estate is the immediate cause of the suspension. The house has been doing business in this city for thirty years. The members came originally from New Orleans. They have always been correspondents of several London houses. They were rated at $1,000,000. The suspension is due to the shrinkage of values at the Stock Exchange. The firm was identified with the Denver & Rio Grande and the C., C & I.C. railroad companies. Morgan was formerly a director in the Denver & Rio Grande. Thehouse gained considerable notoriety for its opposition to the Pennsylvania company, some years ago, in the C., C. & I. C. litigation. Eventually the firm sold its holdings of C., C. & I. C. bonds, amounting to $400,000, at 129, after it had offered them at 109. This transaction was the talk of the street at that time. The house dealt extensively in exchange. The Post says: "Great surprise was created in Wall street this morning by the announcement that the banking house of M. Morgan's Sons, 39 Wall street, had suspended. The house is one of the oldest banking firms in the city, and was founded by the late Matthew Morgan fifty years ago. It was formerly known as Matthew Morgan & Sons. Through a brother of Matthew Morgan the firm began with an extensive New Orleans connection, which it always retained. The firm did a general banking business, and was interested in other enterprises. including, it is said, the cotton trade. Their standing in business circles was always very high. At the office of the firm no statement could be obtained in regard to the cause of the suspension or the amount of the assets and liabilities. The failure had little effect on the stock market. which, independently of this, had been very feverish and excited throughout the morning. Messrs. Edward and Henry Morgan, members of the firm, are individually large owners of real estate in this city. The assignment was made to protect all creditors equally. The correspondents of the firm are the Union and City banks in London. and A. M. Heine, Marcuard Andre & Co., and Hattenger & Co. in Paris. They have correspondents also in all parts of Europe. The social connections of the members of the firm are very high, a daughter of Edward Morgan being the wife of August Belmont, jr., and Henry Morgan is connected with the family of Mr. Brown, of Brown Bros. & Co., by marriage. C. F. Woerishoffer, who is prominently identified with the "bear" interest, when interviewed, to-day, in regard to the situation in Wall street, said: "I regard the failure of Morgan's Sons as very serious. It was an old house and greatly respected. I don't think it will have a great effect on the stock market. It is more of a commercial disaster I did not anticipate any more failures at present, although I think stocks will go lower." Regarding Gould's position he said: "Gould cannot fail; he has lost a great deal of money, but has plenty left. Anything may happen. Gould may go under; this house may tumble down, but I am taking my chances on it. I don't intend to move." The market. Mr. Woerishoffer said, looked bad, and he acknowledged that he felt blue. The insolvent schedule of Thomas J. Crombie, a lumber dealer, was filed to-day. Liabilities, $95,000; nominal assets, $117,000; actual assets, $75,000. The principal creditors are D. C. Coney, $30,000, with no security; Max Danziger, $13,000, with no security; Fifth National Bank, $23,000; Mount Morris Bank, $32,000. The insolvent schedules of Julius F. Diberg, a merchant, show liabilities of $24,000; nominal assets, $15,000; actual assets, $9,000.

4. June 25, 1884 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, June 25, 1884

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FINANCIAL BREAKERS, They Engulf Another New York Banking Firm. Matthew Morgan's Sons Go Down for Five Millions-Another Effect of the Shrinkage in Securities The Causes. NEW YORK, June 24.-Matthew Morgan's Sons, bankers have suspended. The announcement of the failure caused some depression in thestock market, but subsequently recovered and became steadier. The firm was an old one. Morgan's Sons are not members of the stock exchange. They are known as merchants and bankers, draw exchange, and dealt in securities not on the list. The concern of Matthew Morgan Sons was rated as worth $1,000,000 by the agencies. It is presumed on the street that the firm lost its money in Denver & Rio Grande, although the members of the concern refuse to give out any information concerning the cause of their suspension. They had a large amount of real estate, and some surprise is expressed at their not being able to raise money on it enough to help them out of their difficulties. Mr. Edward Morgan, the head of the house, has been in Europe for six months, and is on the ocean now en route for home. The failure was known in inside banking circles before it got on the street. The liabilities of the concern are estimated at from $3,000,000 to $5,000,000. The friends of Morgan's Sons say the suspension is a good deal like that of Garrison's assignment; that is, their assets exceed their liabilities. The suspension is mainly due to the decline in securities. The firm was a large subscriber to the Mexican National Construction company, and it is understood that it held quite a number of Mexican national bonds, Denver & Rio Grande issues, Kansas Pacific consols, and various New England securities. LATER. - The assignment made by M. Morgan's Sons, the bankers, was in order to protect all creditors equally. The correspoondents of the firm are the Union and City banks in London, and A. & M. Heine, Marcuard, and Andre and Hattener & Co. in Paris. They have correspondents also in all parts of Europe. The social relations of the members of the firm are very high, the daughter of Edward Morgan being the wife of August Belmont, Jr., and Henry Morgan is connected with the family of Mr. Brown, of Brown Bros & Co., by marriage. C. A. Woerishoffer, prominently identified with the "bear" interest, was interviewed regarding the situation in Wall street. He said: "I regard the failure of Morgan's Sons as very serious. They were an old house and greatly respected. I do not think it will have a great effect on the stock market. It is more of a commercial disaster. I do not anticipate any more failures at present, although 1 think stocks will go lower." Regarding "Gould's position, Mr. Woerishoffer said, "Gould cannot fail. He has lost a great deal of money, but he has plenty left. Anything may happen. Gould may go under, this house may tumble down, but I am taking my chances on it. I do not intend to move." The market, Woerishoffer said, looked bad, and he acknowledged that he felt blue.

5. June 25, 1884 New-York Tribune New York, NY
Article from New-York Tribune, June 25, 1884

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BANKING HOUSE FAILURE* ENSION OF MATTHEW MORGAN'S SONS. ILITIES UNKNOWN-THE TROUBLE DUE TO DEPRECIATION OF SECURITIES. the surprise of most brokers in Wall Street, uspension of the banking house of Matthew an'sSons, at No. 39 William-st. was announced rday. The liabilities of the firm canbe estimated, but as it was not connected tly with the Stock Exchange, and is not supI to be involved in any pending transactions, favorable effect was produced on pricesby the : firm is uncement. one of the oldest in the Street, and for 1 years it has enjoyed the reputation of being mely conservative. Matthew Morgan, the nal founder of the firm, was at one time a ment wholesale druggist in New-OrHe is said to have established banks in that city and to have interested prominently in the State finances uisiana. He came to New-York in 1842 and some heavy investments in real estate, alth he was never a speculative operator in that et. He built the New-York Hotel in conjuncwith Hickson W. Field, and his sons still own t interest in the property. Entering the bankusiness, he became t he fiscal agent here of the Orleans Canal and Banking Company, and the Mechanics and Traders' Bank of Orleans. He had five sons-Henry, ard, Charles, George and Matthew, jr. Henry dmitted as a partner in his father's business tober 3, 1853, under the firm name of MatMorgan & Son. On January 1. 1859, Matjr., and Edward Morgan entered the concern, the name became Matthew Morgan & Sons. irm was dissolved on October 25, 1861, and vember 19, 1862, the founder of the firm died. , business was carried on from November, 24, under the firm styleof Matthew Morgan's Sons, Henry. Edward and Charles Morgan as partCharles died in October, 1872, and the interhis estate in the business ceased by limitaon July 1. 1873. The two surviving partners nued the business. Henry Morgan being the active member. He was understood to hold a hirds interest in the concern. The firm did a general banking business and had successful up to within a few years. boom" of 1880 appears to have carhe firmaway from its conservative moorings. became interested heavily in the Denver and rande Railroad, the Continental Construction any, which collapsed with the failure of ate General Burt's scheme to carry the BosHoosac Tunnel and Western Railroad across tate of New-York to Buffalo; the Mexican nal enterprise, Kansas Pacific securities and properties which have suffered a great shrinka value. The Street has also credited the with recent heavy losses in Union Pacific, Paul and Western Union. These operaexhausted the resources of the firm, I suspension was precipitated by heavy sales onday of St. Paul and other stocks which L. Hoffman & Co are believed to have been carryor them. ary Morgan, a member of the firm, said have suspended. There is nothing more to be said. uspension was caused by the shrinkage in the value urities held by the firm. No assignment has been What the assets and liabilities are we cannot say In the present condition of the market, it is difficult : what is the real value of anything. I cannot say the firm will be prepared to make a statement of ndition. official of a Southwestern railway said, with ence to the failure 1878 the firm of M. Morgan's Sons subscribed for urchased a considerable amount of the consolidated I of the Denver and Rio Grande Railway Company, JO поллодола certain e snuoq B SB received 11 *

6. June 26, 1884 Savannah Morning News Savannah, GA
Article from Savannah Morning News, June 26, 1884

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BROKER WATSON GORED. HIS BULLISH RAID ON OIL ENDS IN DISASTER. Light at Last Let in on the Ruin Wrought by the Middletons Behind the Desk at Washington-W. P. Dickson Named as Assignee for the Morgans-Other Commercial Complications. PITTSBURG, June 25.-Great excitement was occasioned in oil circles here to-day by the failure of Thomas F. Watson, the heaviest dealer on the floor of the exchange. He has been heavily "short" for some weeks, and this morning was unable to fulfill a contract for the delivery of 77,000 barrels. His shortage was $11,000. Watson was prominently connected with the Penn Bank muddle, and is under bail, charged with conspiracy to defraud that bank. When the bank closed his account was found to be $97,000 overdrawn. Watson was a fearless operator, and has been "bearing" the market since the bank's failure. THE MIDDLETON STATEMENT. WASHINGTON, June 25.-The statement of the assignee who has been examining the books of Middleton & Co., the bankers who failed in this city recently, was made public to-night. It shows the total liabilities to be $465,000; the face value of the assets $374,311, of which $70,304 represents the value of such as are considered good, and $6,312 the value of such as there is a possibility of realizing upon. Among the total losses are individual overdrafts amounting to $168,957. The cash found in the bank's assets amounted to $305. A HOTEL ASSOCIATION ASSIGNS. ST. LOUIS, June 25.-The Lindell Hotel Association has made an assignment to James L. Huse for the benefit of its creditors. The assets and liabilities are unknown. The association is composed of Charles R. Scudder, Henry Ames and J. H. Chassaing. ROME BANKERS FAIL. ROME, GA., June 25.-R. T. and C.B. Hargrave, bankers, failed to-day. Their liabilities are $60,000 and the nominal assets $75,000. The stringency of the money market caused the failure. THE MORGAN FAILURE. NEW YORK, June 25.-Matthew Morgan's Sons have assigned to W. P. Dickson.

7. June 28, 1884 The Milan Exchange Milan, TN
Article from The Milan Exchange, June 28, 1884

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LATE NEWS ITEMS. IN the Senate on the 24th almost the entire session was devoted to the Mexican pension bill, as amended on the day previous. The amended bill was discussed at considerable length, Democratic Senators contending that Republicans were endeavoring to defeat the primary object by adding amendments. The bill was finally passed, 37 yeas, 27 nays, and six Senators paired. Messrs. Hawley and Edmunds voted with the Democrats In the House the bill granting fifteen days' leave of absence annually to letter carriers was passed, as also the bill repealing the pre-emption, timber culture and desert land laws, and amending the homestead laws. The House bill on the electoral count was adopted as a substitute for the Senate bill. LIGHTNING did damage in various parts of New York and Canada on the 24th. THE obsequies of the late Bishop Simpson took place at Philadelphia, Pa., on the 24th. GENERAL WARD B. BURNETT, a veteran of five wars, died at Washington, D. C., on the 24th. MATTHEW MORGAN'S SONS, bankers, New York, suspended on the 24th. EFFORTS are being made to have Orangemen from all over Great Britain attend the meeting at Newry, July 12. THE Pan-Presbyterian Council with delegates from all over the world, convened at Belfast, Ireland, on the 24th. IN order to guard against cholera French ships have been denied entry at Italian ports. ALLAN PINKERTON, the world-renowned detective, was reported lying at the point of death in Chicago on the 25th with malarial fever. A DISASTROUS forest fire was raging in two counties of New Hampshire on the 24th. THE window glass factories of the West decided to close on the 28th for the usual Summer repairs. JUDGE DRUMMOND, of the United States Circuit Court, Chicago, has forwarded his resignation. ON account of cholera in France the Sanitary Council at Vienna has been summoned. THE report of the conflict between Christians and Jews in Novgorod is confirmed. KING JOHN of Abyssinia is placing troops so that in the event of the fall of Kassala he can seize it. EVANGELIST MOODY, after a most successful revival in London, will sail for New York with his family July 12. CHAIRMAN HENDERSON and the the committee called on General Logan at Washington on the 24th and formally apprized him of the fact that he had been nominated for Vice-President.

8. July 2, 1884 Morris Tribune Morris, MN
Article from Morris Tribune, July 2, 1884

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Another Bad Crash. NEW YORK, June 25.-Not Wall street alone, but business and financial circles generally, were both surprised and excited by the announcement that the banking house of Matthew Morgan's Sons had suspended payment. The house was the oldest in the city, and was regarded as one of the safest and

9. July 3, 1884 The Iowa Plain Dealer Cresco, New Oregon, IA
Article from The Iowa Plain Dealer, July 3, 1884

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NEWS CONDENSED. Concise Record of the Week. EASTERN. A dispatch received at Boston by the American Board of Commissioners of Foreign Missions, dated Hong Kong, announces the total loss of the missionary brig Morning Star at Kusail. The crew and passengers were saved. Owing to depression in the railway bond and share market, Matthew Morgan's Sons, bankers. New York. suspended. The liabilities are said to be about $1,000,000. Stout & Co., bankers, of New York, suspended payment, with liabilities estimated at $1,000,000. They were largely interested in the Metropolitan Elevated Road. In a race of three and a half miles at New London, the Yale crew defeated the Harvards by three lengths. At Taylorsville, Penn., Miss Thompson entered her father's drug store, weighed out a grain and a half of strychnine, and calmly swallowed it. Antidotes were administered without effect.

10. July 3, 1884 The True Northerner Paw Paw, MI
Article from The True Northerner, July 3, 1884

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NEWS CONDENSED. Concise Record of the Week. EASTERN. Judge Drummond has resigned his position as United States Judge for the Chicago circuit. Judge Drummond is now in his 75th year. He has been United States Judge since 1850. All the coal mines in the Hocking Valley and Shawnee district are idle, the 5,000 employes having struck against the 10 cents per ton reduction. No trouble is reported. A dispatch received at Boston by the American Board of Commissioners of Foreign Missions, dated Hong Kong, announces the total loss of the missionary brig Morning Star at Kusail. The crew and passengers were saved. Owing to depression in the railway bond and share market, Matthew Morgan's Sons, bankers. New York, suspended. The liabilities are said to be about $1,000,000. Stout & Co., bankers, of New York, suspended payment, with liabilities estimated at $1,000,000. They were largely interested in the Metropolitan Elevated Road. In a race of three and a half miles at New London, the Yale crew defeated the Harvards by three lengths. At Taylorsville, Penn., Miss Thompson entered her father's drug store, weighed out a grain and a half of strychnine, and calmly swallowed it. Antidotes were administered without effect.