Murray Hill Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 12, 1896
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 5bb97492

Response Measures

None

Description

Article (New-York Tribune, 1896-08-12) reports the Murray Hill Bank closed and that the Attorney-General will appoint a receiver. No explicit depositor 'run' (mass panic withdrawals) is described; problems attributed to large real-estate investments and liquidity strain. Classified as suspension leading to permanent closure/receivership.

Events (2)

1. August 12, 1896 Receivership

Newspaper Excerpt: Mr. Kilburn will now make his report to the Attorney-General, who will appoint a receiver.
Source: newspapers

2. August 12, 1896 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank crippled by withdrawals of $175,000 in quick assets from investments and heavy real-estate mortgage exposure; insolvency concerns leading to closure.
Newspaper Excerpt: The closing of the Murray Hill Bank ... Mr. Kilburn will now make his report to the Attorney-General, who will appoint a receiver.
Source: newspapers

Newspaper Articles (1)

1. August 12, 1896 New-York Tribune New York, NY

Article from New-York Tribune, August 12, 1896

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Article Text

investment was one of $56,000 in the stock and bonds of the Bavarian Brewing Company. AMOUNT OF DEPOSITS. The total number of depositors in the bank is 17,000, with $1,172,565 54 deposited. During the months of June and July there was deposited about $200,000, but more than this amount was withdrawn. There was, Mr. Kilburn said, $175,000 in quick assets withdrawn from investment and placed in second mortgages on real estate, which could not fail to cripple the bank's ability to meet démands. The Murray Hill Bank was organized in 1878 by its late president, Mr. Darling, and has been considered a strong institution. It has had only one previous setback in its career, when, about two years after its organization, it suspended payment. Confidence in the bank was quickly restored, however. The officers of the bank are: F. T. Hopkins, president; W. D. Bruns, vice-president: Albert H. Gale, cashier, and William C. Bryant, assistant cashier. The directors are Rufus M. Stivers, John Weber, James Carney, Bernard Metzger, Ferdinand T. Hopkins, Philip Diehl, Robert N. Ford. Charles H. Heimburg, Frederick T. Steinway, Thomas McManus and William D. Bruns. H. C. Fahnestock, vice-president of the First National Bank, said the closing of the Murray Hill Bank was a great surprise From the way its accounts had been running of late it was supposed that it was doing a profitable business. It had made no requests whatever of the First National for accommodation. Its balance with the First National was sufficient to cover its clearings for several ordinary days. NO EFFECT ON STOCKS. The closing of the bank was utterly without effect on the stock market. The bank did no business downtown. Among bank officers the incident increased the prejudice against banks in the metropolitan district which operate with small capital. The bank's stock had been quoted of late at 140. A great deal regarding the bank was known to a good many real estate brokers. Some brokers declare that it was ridiculous to attribute the bank's failure to real estate deals of a legitimate kind. when mortgages for nearly the full value of real estate could be placed. One broker called up an uptown bank which was supposed to be thoroughly versed in Murray Hill Bank matters and asked the cause of the failure. The answer was, "Dry rot." A well-known broker. who was formerly a depositor in the bank. said: "I drew out my money a few years ago. I did not like the manner in which William A. Darling was handling the bank. I had an idea that there was too much dealing in real estate in a manner which the head of a bank could not safely pursue. The present management has done the best it could. under the circumstances, I have no doubt, but it had inherited too large a load to manage." Two of the directors of the bank were spoken of by well-informed real estate dealers as being men of large wealth. Thomas McManus, one of these, was a police captain in John Kelly's day. He retired from the force and became a builder. In real estate circles he is reputed to have considerable wealth. He owns two block fronts in Third-ave., not far from the Murray Hill Bank: has five or six pieces of property with new buildings at the southwest corner of Fifth-ave. and One-hundred-and-fourteenth-st., and owns property in One-hundred-and-sixteenth-st., near Fifth-ave. Bernard Metzger, another director of the bank, is put down as having considerable wealth, made in the cattle business. He is not the real estate dealer of that name. Mr. Kilburn will now make his report to the Attorney-General, who will appoint a receiver.