16159. Mechanics & Traders Bank (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 15, 1876
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 28bfcdfe

Response Measures

None

Description

Contemporary articles state the Mechanics & Traders Bank failed in mid-June 1876 and a receiver (William J. Best) was appointed and has been paying dividends thereafter. The coverage describes a suspension/closing with receiver and ongoing liquidation/dividend payments; no article clearly describes a depositor run on this specific bank (one article notes its failure sparked runs on other banks). Bank type not explicitly given in texts; could be a state bank but not confirmed in articles.

Events (3)

1. June 15, 1876 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank insolvency due to poor securities and mismanagement; articles note poor securities and insolvency discovered before closing; dividends had been declared while bank was in broken condition; solvency problems led to suspension/closing.
Newspaper Excerpt: the Mechanics' and Traders' Bank, which failed last week.
Source: newspapers

2. July 20, 1876 Receivership

Newspaper Excerpt: The receiver, Mr. Best, of the Mechanics' and Traders' Bank is busily engaged in examining the accounts of the bank. He is unable to say yet what dividend will be made to the depositors ... It is believed that the depositors will receive 25 cents on the dollar.
Source: newspapers

3. February 28, 1878 Other

Newspaper Excerpt: The receiver of the Mechanics and Traders' Bank, Mr. William J. Best, says he expects to pay the depositors of that institution a small dividend next week. The bank failed in 1876, and at the time of the suspension a committee of the officers announced that funds remained sufficient only for the payment of sixty per cent of the deposits.
Source: newspapers

Newspaper Articles (12)

1. June 22, 1876 New-York Tribune New York, NY

Article from New-York Tribune, June 22, 1876

Click image to open full size in new tab

Article Text

# STATEMENT OF SUPERINTENDENT ELLIS. [BY TELEGRAPH TO THE TRIBUNE.] ALBANY, June 21.-In relation to the run upon the Dry Dock Savings Institution, Mr. Ellis, Superintendent of the Bank Department, says the bank can readily meet any demand that may be made on it. They have readily available as much money as they can possibly be called upon to pay out. He ranks it as one of the soundest banks in the city, and thinks the run was started by the proximity of the Mechanics' and Traders' Bank, which failed last week. The withdrawal of deposits at this time will relieve the bank from the payment of several thousand dollars of interest which accrues in July.

2. July 20, 1876 New-York Tribune New York, NY

Article from New-York Tribune, July 20, 1876

Click image to open full size in new tab

Article Text

# FINANCIAL EMBARRASSMENTS. The receiver, Mr. Best, of the Mechanics' and Traders' Bank is busily engaged in examining the accounts of the bank. He is unable to say yet what dividend will be made to the depositors, as, owing to the numerous accounts opened, all the books have not been examined with the ledgers. Some of the securities held by the bank, it is said, are considered very poor, and will not realize more than half of their supposed and estimated value. So far as the books have been examined there is no appearance of any irregularities; but a thorough investigation is to be made. It is believed that the depositors will receive 25 cents on the dollar. Assignments for the benefit of creditors have been filed with the County Clerk by Arnold Strauss to Charles W. Rodman, and by Robert Montross to Luther O. Snedecor. "Charles Morris and Harris Cassell, who have made an assignment to Henry Chuck, have filed their schedules, placing their liabilities at $26,569 69 and their assets at $7,662 61. Charles Hedges and Hiram Morse place their liabilities at $27,434 39 and their assets at $9,146 25.

3. October 1, 1876 The New York Herald New York, NY

Article from The New York Herald, October 1, 1876

Click image to open full size in new tab

Article Text

THE BOND STREET SAVINGS BANK. The officials of the above savings bank have given to the world, through the columns of the HKRALD, the trustees' statement of the condition of the institution; but it seems that the depositors are not satisfied to have them control the appointment of a receiver, which, it seems, they are desirous of doing. At the meeting on last Wednesday evening some of the heaviest depositors, principally residing on the Bowery, recommended through their counsel, Mr. Samuel Crook, the appointment of the present receiver of the Mechanics' and Traders' Savings Bank, but after a petition to this effect was signed it was said "the bank party" created disorder, and the meeting was adjourned to Friday evening, to take place at No. 291 Bowery, a full report of which was given yesterday. At this meetitg, according to the published statement, "out rageous disorder" prevailed. AMr. Descha was placed in the chair with scarcely the form of fair play, every motion made by depositors outside of the bank party was overruled and the voices of the objectors drowned by groans and shouts. The President was at first invested with power to name a committee who should recommend the receiver to Judge Landon, of Schenectady; but as this too obviously gave him (Descha) the nomination of that official, it was agreed that he should name three of the committee, after which the balance was filled by names equally in the interest of the bank party. One after another of the depositors objected to this management, but the crowd of yellers carried their motions. Upon learning the above facts a HERALD reporter waited on several ot the depositors, and they were in the main corroborated. Mr. John Bowden, a depositor, residing at No. 348 Bowery, stated that almost the unanimous wish of the depositors at the first meeting was the appointment as receiver of the gentleman whose name has already been published, but it was evident from the start that some other name had been agreed on by the bank party. All they wanted, how. ever was an honest man, and if Judge Landon appoints any other the depositors will take measures to turn him out. Mr. Best was waited on, and he told the reporter substantially the following story of the affair:-He bad been approached by n number of gentlemen, among whom were Messrs. Lynn, Campbell, Maguire and others, large depositors, to know 11 he would accept the receivership if recommended by the depositors and appointed by the Court. His reply was that he had no aspirations in that direction. but would accept the position 11 the depositors thought he could best serve their interests. He had nearly finished his arduous duties as receiver of the Mechanics and Traders' Bank and was ready to pay the dividend already announced, 80 that the final closing up of the concern only involved clerical duties. He paid a compliment to the trustees of the Boud Street Bank in saying that is was creditable to them ID having, like the New Amsterdam Bank directors, initiated themselves the proceedings for liquidation. The officers of the Bond Street Bank were subsequently sought, but the bank see:ned hermetically sealed as to the doors but not air-light us to the windows.

4. October 3, 1876 New-York Tribune New York, NY

Article from New-York Tribune, October 3, 1876

Click image to open full size in new tab

Article Text

LOCAL MISCELLANY. THE BROKEN SAVINGS BANKS. MEETINGS OF DEPOSITORS-DiVIDEND BY THE RECRIVER OF THE MECHANICS' AND TRADERS' BANK. An adjourned meeting of the depositors of the Bond Street Savings Bank was held last evening in the Germania Assembly Rooms. About 150 persons were present. The report of the committee of eleven appointed at the last meeting to recommend a suitable person as receiver was read. It stated that while the committee were in session on Saturday evening. a dispatch was received from Judge J.P. Landon, stating that on Wednesday last he had appointed Willis 8. Paine receiver of the bank. The report suggested the formation of a permanent organization of the depositors and closed with a recommendation to the Legislature to make trustees of savings banks responsible for deficiencics. The committee was then discharged and a permanent organization formed, with the following officers: William C. Marshall, President ; H. F. Lippold, VicePresident; George Rollwagen, Secretary; John Levis, Treasurer. A committee was appointed to confer with the receiver, empowered to act in every way for the depositors, consisting of James Brown, Samuel T. MeKinney, L. E. O'Brien, Henry Dauscha, and M. Corcoran. Mr. Best, the receiver of the Mechanics' and Traders' Bank, in the Bowery, will begin paying the depositors in that bank, to-morrow, a first dividend of fifty cents on the dollar. There are in all 3,202 depositors. The bank will be open from 10 a. 111. until 3 p. m. every day; and for the convenience of those engaged at work during the day, money will be paid on the deposits on Monday, Wednesday, and Thursday evenings, from 6 until 9 o'clock. Mr. Best is of the opinion that he will be able to pay from seventy-five to eigaty cents on the dollar. A claim has been made upon the past officers of the institution to the amount of $54,000, to make good the losses to the depositors resulting from outside speculations. It is thought that as these persons are responsible men, they will pay the amount rather than allow legal procedings to be taken. A meeting of the depositors of the Abingdon Square Savings Bank was held last evening at No. 79 Bank-st. There are 857 depositors on the books of the bank, but only 12 attended the me ting. It was considered advisable to postpone the consideration of any business until a fuller attendance could be o tained. Before adjourning, Francis Thompson the receiver of the bank. stated that $87,997 59 was due to the depositors. The total available assets were 825.316 49, from which could be realized about 25 per cent immediately. There were other assets, unavailable at the present time, which by next Spring would bring from 20 to 23 per cent.

5. April 25, 1877 The Sun New York, NY

Click image to open full size in new tab

Article Text

# There Shall Be One Law for All. TO THE EDITOR OF THE SUN—Sir: I find in to-day's SUN an account of the blood-curdling malediction and the appalling punishment which Recorder Hackett dealt out to a petty thief who appeared in his court yesterday. In another part of to-day's SUN I find the evidence before the Senate committee, and the message of Gov. Robinson, exposing the official career of Bank Superintendent Ellis. It appears that Mr. Ellis, after learning that certain savings banks were hastening to bankruptcy, allowed them to run on from bad to worse, knowing all the while that they were taking in the money of new depositors ignorant of their condition and of old depositors who had learned to trust them. In the case of the Mechanics' and Traders Bank, the interval between the discovery of the bank's insolvency and its closing was nearly two years; in the case of the Third Avenue Bank, which, perhaps, of all these failures, revealed the greatest amount of rascality and involved the greatest number of innocent people in disaster and ruin, the interval is placed at six months. In the latter instance, no less than 600 new accounts were opened during this period, and it is alleged that the officials made careful preparation, both for themselves and their friends, against the final crash. The charges with respect to the Security, Bond Street, People's, Trades, and other banks, are mainly repetitions of this same story. Now, what sentence will Recorder Hackett, or any other Judge, visit upon the parties guilty of these crimes, compared with which the petty theft I spoke about at the opening is nothing at all? Again, I find in to-day's SUN Mr. W. Allen Butler's extraordinary report upon the mismanagement and fraud of the officers of the Continental Life Insurance Company, which have caused widespread loss and suffering. Yet again, in Monday's SUN I saw an official report, charging ruinous cheating and perjury upon the officers of the Popular Life Insurance Company. What penalty shall be administered upon such men if a petty burglar deserved Recorder Hackett's sentence of twenty years in the State prison? But will these men receive any penalty under such law as is enforced in our courts? I see that one pompous newspaper goes so far as to say that Ellis ought to be removed from office! Now, what are we to think of laws and courts which deal with helpless men in one way, and with powerful men in another way? MOSES.

6. May 1, 1877 The Rutland Daily Globe Rutland, VT

Article from The Rutland Daily Globe, May 1, 1877

Click image to open full size in new tab

Article Text

From New York. THE ELLIS INVESTIGATION. NEW YORK, April 30. Before the senate committee to investigate the charges against Bank Superintendent Ellis, experts testified to-day that the Mechanics and Traders' bank building was worth $105,000 in 1874. Receiver Best of the broken bank testified that four dividends were declared from June, 1874, to December, 1875, although it was known that the bank was in a broken condition, and a minority of the trustees voted against them. THE CUSTOM HOUSE INQUIRY. Col. Burt testified before the custom house commission to-day that at least a saving of ten per cent. could be effected by the reduction of the force of employes, and giving the offices to competent men, and not for political favor. He thought the office of naval officer was a necessity. INSURANCE MATTERS. The Times Albany special says the insurance superintendent is investigating the Atlantic Mutual company of Albany, the Universal of New York, and thirteen other state companies. It is rumored that Senator Tobey will succeed McCall as deputy superintendent. AN IMMENSE ROBBERY. Thursday last, a driver of the New York transfer company received a trunk for delivery at west Twenty-third street. He drove to the company's stable, leaving the trunk in the wagon while taking dinner. He then delivered the trunk to the owner who discovered it had been tampered with and $53,000 worth of diamonds stolen. BASE BALL. Hartfords 1, Boston 1, after eleven innings were played darkness set in and the game was declared a draw. The Paducah and Memphis railroad, 168 miles long, capital stock $3,000,000, and funded debt $1,541,000, was sold to-day under an agreement with creditors to the trustees for $105,000. Phillipsburg, Penn., formerly a lively manufacturing town, has been almost destroyed by hard times. The people are seeking labor elsewhere. The Hope Methodist chapel, after 12 years' existence, was closed yeaterday for lack of funds. The farewell services were touching and impressive The gold exchange was dissolved to-day and passes under the control of the stock exchange. The room will be opened tomorrow as a branch of that institution for the sale of gold and government bonds. The reported salo of the Stevens battery to Russia is denied.

7. May 1, 1877 New-York Tribune New York, NY

Article from New-York Tribune, May 1, 1877

Click image to open full size in new tab

Article Text

THE ELLIS CHARGES. RESUMPTION OF THE INVESTIGATION. TESTIMONY CONCERNING THE AFFAIRS OF THE ME CHANICS AND TRADERS' BANK-SUMMARY OF THE CHARGES AGAINST MR. ELLIS. The Senate committee's investigation of the charges against Bank Superintendent De With C. Ellis was.continued vesterday at the St. Nicholas Hotel. The three members of the committee- -Senators Coloman, Wellman, and St. John-were present, as were Mr. Ellia and the counsel on both sides. Leopold Soldener testified that, as a real estate agent at No. 66 Bond-st. he was familiar with the values of real property In that neighborhood; he thought that in September and October, 1874, the Mechan ics and Traders' Bank building, with the land on which it stands, was worth from $105,000 to $110,000. A. A. Gould of No. 196 Prospect place, Brooklyn, a real estate agent, testified that the property at President and Van Brunt-sts. Brookly n. belonging to the Mechanics' and Traders' Bank, was worth in September, 1874. about $30,000; this prop erty consisted of a storehouse and bank: be would now give $15,000 for the two buildings, if he had the money. Later in the session J.S. Carman and J. M. W Tyckoff gav about the same estimates. William Brinkerboff of No 405 East Sixty first-st. for 26 years : real estate broker in New-York, testified that he was acquainted with the value of the Mechanics and Traders' Bank building and land in 1874 and estimated it at $105,000. These wit neases were called at the request of Mr. Ellis William J. Best. receiver of the Mechanics' and Traders' Bank, was recalled. He testifled that a resolution to re duce the salaries of the officers of the bank was intro duced by Mr. Gregory in April, 1874. In July the mat ter was taken up again, but once more deferred until the October meeting of the board, W when the salaries were slightly reduced. At the Japa meeting the semi annual dividend of three percent was de lared over the opposttion of Messrs. Gregory, Sharot. and Floyd. On Dec. 28 1874, asimilar dividend was declared, Measrs. Floyd and Gregory protesting. On June 14, 1875, the same dividond was declared with the same protesting votes, and six months later the same was declared again Mr. Gregory alone protesting This was the last dividend declared by the bank Senator St. John was particular to have recorded the names of the trostees who voted for these dividends, and he read an extract from the law which went into effect in May 1875, make ing trustees voting to declare a dividend jointly and SCV erally liable, if such dividend exceeded the earning during the period for which it was declared. Mr. Best was asked what would have been the effect uton the bank if majority of the trustees had voted against the dividends with Mr Floyd and Mr. Gregory. He replied the failure to declare a resulted resolution the calling said nothing relati consisting was appoint being Tappan, Gregory Floyd, They ported de Mt the value D that of these each he took 110 action MORE

8. February 15, 1878 The New York Herald New York, NY

Article from The New York Herald, February 15, 1878

Click image to open full size in new tab

Article Text

# A RETICENT RECEIVER. TO THE EDITOR OF THE HERARD:— Why cannot Mr. Best, the receiver for the Me- chanics and Traders' Bank, give the depositors some information about our money? Many of us have called frequently upon him, but to no purpose. A VICTIM.

9. February 28, 1878 The New York Herald New York, NY

Article from The New York Herald, February 28, 1878

Click image to open full size in new tab

Article Text

MECHANICS AND TRADERS' BANK. The receiver of the Mechanics and Traders' Bank, Mr. William J. Best, says be expects to pay the depositors of that institution a small dividend next week. The bank failed in 1876, and at the time of the suspension a committee of the officers announced that funds remained sufficient only for ine Day ment of sixty per cent of the deposits. Mr. Best has al. ready paid sixty five per ceul. His nexi abstalment, it is expected, will bring the figures neur 10 sevenlyfive per cent of the deposits.

10. March 4, 1878 New-York Tribune New York, NY

Article from New-York Tribune, March 4, 1878

Click image to open full size in new tab

Article Text

FAILURES AND ASSIGNMENTS. The failure of J. Hauck & Sons, provision dealers at No. 103 Eldridge-st., and at No. 32 Avenue-A, caused conside rable comment on Produce Exchange, Saturday. The firm had been members in good standing of the Exchange, for many years. They did an extensive pork business for both export and city trade. The failure 8 said to be due to complications in real estate, owned by the senior member of the firm, valued at about $150.000, but mortgaged for fully halfits value. The accounts of the firm are being made up in order to render a statement at an early day of the assets and liabilities. It is said the liabilities will not exceed $50,000. about $10,000 of which is due to members of the Produce Exchange. The firm was established in 1855, the sons becoming partners in 1871. Eight creditors, whose claims amount to $105,000, have filed a petition in bankruptcy against Griffith Rowe. The principal claimants are the New-York Life Insurance Company, $30,294 20; Manhattan Life Insurance Company, $15,417 74; Thomas M. Wheeler, $34,474.96; Coudert Brothers, $11,559 13. The offer of Z. Stern & Co., shirt manufacturers at No. 10 White-st. to compromise with their creditors by the payment of forty cents ou the dollar, has been withdrawn, and the estate will be settled by an assignee in bankruptey. The liabilities are $120,000. William J. Best, receiver of the National Trust Company, will ask leave to-day to pay to the depositors a dividend of 25 per cent. It is probable that the depositors will soon be paid in full. He hopes to pay the dopositors in the Mechanics' and Traders' Bank a further dividend soon of 6 per cent. making 71 per cent in all. The schedules of William C. Farleigb. filed on Saturday, state his liabilities at $13,608 10 and his assets at $3, 550 31. Bowie, Dash & Co. state that they were not interested, in any way, in the failure of John J. Adams & Co., of New-Orleaus.

11. March 15, 1878 New-York Tribune New York, NY

Article from New-York Tribune, March 15, 1878

Click image to open full size in new tab

Article Text

NEW-YORK CITY. Colored embroideries in Persian designs colors are new. Striped batiste ties at O'Neill's have embroidered ends. Square horn buttons beautifully colored carved are novelties. "Drap Kaboul" is a new suit material Arnold, Constable & Co.'s. Blond ties with variegated borders at man's are new and pretty. Antique carved silver clasps fasten the cut-away coats worn by ladies. Carriage parasols at E. A. Morrison's very small, and have extension handles. Old curiosities in odd designs are shown faience de Paris" at Bawo & Dotter's. Purchasers at Stewart's, on Wednesday, ceived some of their change in gold at par. Gilmore's Band, sixty performers, will by the Inman steamer City of Berlin on May 4. Sewing silk damasse grenadines at son's are very handsome, and sell for $1 per yard. W. T. Hantington has resigned a positio in the Custom House which he held for fifty years. Richard Meares is having a special sale colored and white balbriggan hose for 25 cents a pair. White satin evening boots at Lord & Tay lor's are ornamented with narrow lace and tiny flower Francis Rebzold, age four, has mysterious] disappeared from his father's home, No. 659 Second ave. A. T. Stewart & Co. have just opened a line of French bourettes, varying from $1 to $2 50 yard. Notwithstanding the Lenten season, Catholics and Episcopalians are continuing their ceptions. The polished brass ornaments, for which there has been a mania, are now rivalled by those mixed siver and brass. There will be a service every morning, at o'clock, during Lent, in St. Ann's P. E. Church, eenth-st.,Ine Fifth-ave. Novel pocket-books have a small silver on the outside, which, when moved by a spring, display the picture of the owner. The Gramercy flats in West Twentieth-st are almost finished, and the building adds much to appearance of that part of the city. Workmen are engaged in repainting frescoing the music-stand on the Mall. in Central preparatory to the regular Saturday afternoon concerts Tidies, chair and bureau covers, made with macramé lace: are the favorite fancy work at present The lace is not difficult to make, and looks rich colors, 11" ut 81 11 Mayor Ely, yesterday, signed the Aldermen' amendment to the ordinance in regard to arrying tols. permitting non-residents the same privileges 01 поле are su am Among the mortgages filed, yesterday, one for $15,000 on the Trinity Baptist Church grounds, at No. 141 East Fifty-fifth-st., the Mutual om Sujuroj Suedmo) Insurance William J. Best, the receiver of the Mechan ics' and Traders' Bank, began the payment of a 6 cent dividend to depositors yesterday. This makes total of 71 per cent received by the depositors. Picture galleries, brie-à-brae shops, fashionable dress-making establishments are now gregated in Fifth-ave, and the next May moving make very decided change in Broadway shops. A bread plate at Gorham & Co.'s is a terpiece of workmanship: the centre 18 in Japanes decoration in colors, an I around the edge, in large silver letters, are the words, Give US this day our bread. As passengers on the Staten Island boats passed to or fro from this city yesterday, they an opportunity of watching the shad fishermen the poles for the nets, preparatory to the opening of "uoseas Grace before Gruel," a painting by Pittz. representing a charity school of about thirty dren standing and waiting while the dignified matro grace before their trugal meal, is one of the

12. August 8, 1878 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, August 8, 1878

Click image to open full size in new tab

Article Text

# Sale of North Carolina and Alabama Bonds. New York, August 7.-The following stocks and bonds were sold at auction today: $63,000 State of North Carolina six per cent. special-tax bonds, $1,000 each, issued for the Atlantic, Tennessee and Ohio railroad, payable 1st April, 1899, sold for $13.50 per bond. By order of the receiver of the Mechanics and Traders Bank, $166,000 State of Alabama eight per cents, payable in January, 1900, $1,000 each, were sold and brought $20.50 each $1,000.