16354. New York Building Loan Banking Company (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 28, 1903
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
5d49c002

Response Measures

None

Description

Referee and banking examiners found a large deficit; Attorney-General petitioned and a temporary receiver (Charles M. Preston) was appointed in September 1903. No newspaper accounts describe a depositor run or a temporary suspension/reopening — the company is in receivership and effectively closed. Stockholder riots and hearings followed.

Events (4)
1. July 28, 1903 Other
Newspaper Excerpt
The report of the referee, James F. Farren ... alleges that the company had made false reports ... has a deficiency amounting to $317,467 and that its management has been extravagant and reckless.
Source
newspapers
2. September 13, 1903 Receivership
Newspaper Excerpt
Charles M. Preston ... was appointed yesterday by Justice Dugro to be temporary receiver of the New York Building Loan Banking Company. The order ... states that the Court has been satisfied that the liabilities of the company are in excess of the assets.
Source
newspapers
3. September 15, 1903 Other
Newspaper Excerpt
Charles M. Preston qualified yesterday temporary receiver for the defunct New York Building Loan Banking Company. He took possession of the offices of the company at 111 Fifth avenue in the afternoon.
Source
newspapers
4. October 20, 1903 Other
Newspaper Excerpt
Stockholders of the New York Building Loan Banking Company ... stampeded the meeting called at the offices of the company ... resulted in the arrival of a squad of reserve policemen.
Source
newspapers

Newspaper Articles (10)
1. July 29, 1903 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, July 29, 1903

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MANAGEMENT RECKLESS. Charges Against New York Building Loan Banking Company. Albany, N. Y., July 28.-Arguments in the case of the New York Building Loan Banking Company. which was to have been heard today before Justice Herrick of the Supreme Court, was not had, because Attorney General Cunnen had arranged to change the venue from Albany County to New York County. The justice set August 3, the date for hearing State Superintendent of Banking Kilbourn last December, through former Attorney General Davies, endeavored to have a receiver appointed for the company on the ground that it was insolvent The attorneys of the company protested the action and from Justice Herrick secured a restraining order pending the appointment and report of a referee regarding the condition of the company. The report of the referee, James F. Farren. who was appointed by Justice Herrick, was made public today. It alleges that the company had made false reports to the banking department of the State in 1900. 1901, and 1902. has a deficiency amounting to $317,467 and that Its management has been extravagant and reckless.

2. September 13, 1903 The Sun New York, NY
Article from The Sun, September 13, 1903

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CHAS. M. PRESTON RECEIVER For the N. Y. Building Lean Banking Co. After Its Bitter Fight. Charles M. Preston, a Democrat. formerly Superintendent of the Banking Department of the State, was appointed yesterday by Justice Dugro to be temporary receiver of the New York Building Loan Banking Company. The order, which was filed by Deputy Attorney-General T. C. T. Crain, calls for a bond of $100,000. It states that the Court has been satisfied that the liabilities of the company are in excess of the assets, and that it would be not only inexpedient, but unsafe, to allow the company to continue business as at present. The appointment of a receiver is without prejudice to the right of the company to apply for the discharge of the receiver when it can show that it has become solvent. The application for a receivership was made by Attorney-General Cunneen, after a referee, who investigated the affairs of the bank. upon an unfavorable report made by examiners of the Banking Department, had informed the court that there was a deficit of $317,000. The officials of the company rather more than intimated that there was "polities" in the proceeding and an attempt to provide a fat receivership for somebody. Secretary Busby of the New York Building Loan Banking Company said yesterday that the affairs of the institution were in such condition that the receiver, if he wished, could straighten everything out within forty-eight hours. He added: "This situation has been brought about and the company nearly wrecked by a lot of fool State officials." Mr. Preston said that his appointment had not been due to any political favor. He said also that he had already qualified in the matter of bonds and would take charge of the company on Monday.

3. September 15, 1903 The Sun New York, NY
Article from The Sun, September 15, 1903

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PRESTON IN AS RECEIVER. Says He Never Liked Building Loan BankIng Co.'s Methods. Charles M. Preston qualified yesterday temporary receiver for the defunct New York Building Loan Banking Company. His bond is $100,000. He took possession of the offices of the company at 111 Fifth avenue in the afternoon. There are about 12,000 depositors, and their aggregate claims amount to $6,000,000. Mr. Preston said there was some hope that the company would resume business. Paul Worms, the president. introduced the receiver to the office force and then went away. Frank Jerold. a shareholder. has assumed leadership of some of the depositors who are not satisfied with the Worms administration. L. M. Martin, counsel for Jerold, said yesterday: "We are not satisfied with the appointment of Mr. Preston. He has been in too close touch with the officers of the company." When told yesterday afternoon that his appointment was not pleasing to Jerold's friends. Receiver Preston laughed and said: "I have just received a letter from Jerold asking me to give him a job." Mr. Preston said that he never liked the business methods of the company. "Much of their property," he said, "was held subject to first and second mortgages. 80 the securities they had to offer were largely equities. When I was in the State Banking Department seven or eight years ago I complained of this to the AttorneyGeneral, who ordered an investigation. But the company was found then to be solvent and the proceedings were dropped."

4. October 20, 1903 The Washington Times Washington, DC
Article from The Washington Times, October 20, 1903

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POLICE QUELL ANGRY STOCKHOLDERS' RIOT Meeting Called by New York Building Loan Banking Company Stampeded. NEW YORK, Oct. 20.-Threats and accusations made by 200 stockholders of the New York Building Loan Banking Company against the officers of that concern yesterday resulted in the arrival of a squad of reserve policemen, who were summoned to quell the disorder and prevent bloodshed in the offices of the company, where a special meeting had been called. It was contended that inasmuch as the company was in the hands of a receiver its officers had no legal right to call the meeting, the announced purpose of which was to vote a stock assessment of 20 per cent. Hundreds of angry stockholders were unable to get into the room where the meeting was held on account of lack of space. They had an overflow meeting outside the building, and Fifth Avenue was almost blocked by the crowd. When as many as possible had entered the room J. P. Eustace, brother of Mark Eustace, vice president of the company, declared that the charge of insolvency made against the company was false.

5. October 20, 1903 Evening Star Washington, DC
Article from Evening Star, October 20, 1903

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STOCKHOLDERS IN A RIOT. Stormy meeting of Creditors of New York Company. A dispatch from New York last night says: Stockholders of the New York Building Loan Banking Company, for which Charles M. Preston is temporary receiver, stampeded the meeting called at the offices of the company today to vote a stock assessment of 20 per cent. Only 200 of the 400 or 500 present could get into the room where the meeting was held. Those who got in made such an uproar that one of the stockholders, a policeman, telephoned the West 30th street station for the reserves. When Lawyer James P. Eustace tried to explain the purpose of the call the Protective League of Brooklyn, representing 3,000 stockholders, took charge of the meeting and passed resolutions declaring the call contempt of court, a violation of the injunction of September 12. charging gross mismanagement by the officers and directors, demanding their resignation, and denouncing the state banking authorities for "allowing an insolvent banking concern to continue to do business for years." Outside the building 5th avenue was almost blocked with the overflow, the fact that some 4,000 of the stockholders are Italians being responsible for the presence of hundreds of Italian women, many with bank books in one hand and babies on the other arm. Packed against one another on the stairways, in the entrance to the building and up in offices, people exchanged stories of their losses by the investment of money in the company. Many of the tales were pitiful in their expression of destitution caused by the insolvency of the banking business. Expressions of disgust were divided about equally between the management of the company and the state banking authorities, who have permitted it to run so long. During a lull in the excitement a collection of several dollars was taken up for an Irish woman who said she had lost her savings in the corporation and had recently been dispossessed. Assistant District Attorney Miner announced tonight that he had received a letter from the referee, James J. Farren of

6. October 20, 1903 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 20, 1903

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WOMEN IN A MOB. Stockholders of the New York Building Loan Banking Company, for which Charles M. Preston is temporary recciver, stampeded the meeting called at to of the company yesterday stock assessment of per vote the offices a 20 500 present cent. Only 200 of the 400 or the could get into the room where meeting was held. Those who got the in made such an uproar that one of stockholders, a policeman, telephoned the West Thirtieth street station for the reserves. When Lawyer James P. Eustace tried to explain the purpose of the call the Protective League of Brooklyn, representing 3,000 stockholders, took charge of and passed the call contempt declaring the meeting of resolutions court, violation of the injunction of September 12, charging gross mismanagement by the officers and directors, demending their resignation, and denouncing the authorities concern State an insolvest banking banking for allowing to continue do business for years." the avenue was Outside to building Fifth almost blocked with the overflow, the fact that some four thousand of the stockholders are Italians being responsible for the presence of hundreds of Italian women, many with bank books in one hand and babies on the other arm. The large crowd, mostly poor people, clamored for admission to the building, packed the stairways leading to the third floor, and discussed with opprobrium the conduct of the officers and directors. When as many as possible had entered the room J. P. Eustace, brother of Mark Eustace, vice president of the company, declared that the charge of insolvency made against the company The remark was by and accusations threats was false. against followed the offishouted from all parts of the rooms. disorder cials, The ensuing resulted in the call for the police. Counsel for the Stockholders' Protective League said the company was in the hands of a receiver and that the officers had no legal right to call the meeting. The announcement was with cries of "Turn the robbers "Make the officers pay greeted out;" the "Talk deficit;" Send them to Sing Sing.' about Miller's syndicate," shouted one man; "why it was a 1, 2, 6 proposition compared to this." Such scenes as were witnessed around the Constable building during the stormy conflict between the officers of the comand the shareholders have been New York. pany rare in Thestriking feature poverty the a percentage people, was the apparent large of of whom most of were women. They all seemed to be convinced that they were the victims of a and every of against the vituperation conspiracy, fresh officers outburst of the concern was bandied about from tongue to tongne. Packed against one another on the stairways, in the entrance to the building, and up in the offices, people exchanged stories of their losses by the investment of money in the company. Many of the tales were pitiful in their of expression destitution caused business. by the insolvency of the banking of disgust were Expressions the management divided about equally between of the company and the State banking authorities, who have permitted it to run 80 long. During a lull in the excitement a collection of several dollars was taken up for an Irish woman who said she had lost her savings in the corporation and had recently been dispossessed. Assistant District Attorney Miner announced last night that he had received a letter from the referee, James J. Farren, of Albany, who reported that he had found the reports of the company to the banking company not fully true, and that the charges could be substanK tiated documetary by evidence Kings, Queens, in the county clerk's offices in New York, and Westchester counties Mr. Miner said that a rigid investigation would he instituted at 000A

7. October 20, 1903 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 20, 1903

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MADE A GREAT UPROAR NOISY MEETING OF BUILDING ASSOCIATION STOCKHOLDERS. Some Shouted "Turn the Robbers Out," "Send Them to Sing Sing," Etc.Police Called In. NEW YORK, Oct. 19.-Stockholders of the New York Building Loan Banking Company, for which Charles M. Preston is temporary receiver, stampeded the meeting called at the office of the company today to vote a stock assessment of 20 per cent. Only 200 of the 400 present could get into the room where the meeting was held. Those who got in made such an uproar that one of the stockholders, a policeman, telephoned the West Thirteenth-street station for the reserves. When Lawyer James P. Eustace tried to explain the purpose of the call the Protective League of Brooklyn, representing 3,000 stockholders, took charge of the meeting and passed resolutions declaring the call contempt of court, a violation of the injunction of Sept. 12, charging gross mismanagement by the officers and directors, demanding their resignation and denouneing the State banking authorities for "allowing an insolvent banking concern to continue to do business for years." Counsel for the Stockholders' Protective League said the company was in the hands of a receiver and that the officers had no legal right to call the meeting. The announcement was greeted with cries of "Turn the robbers out." "Make the officers pay the deficit." "Send them to Sing Sing." "Talk about Miller's syndicate," shouted one man, "why it was a one-tosix proposition compared with this." Outside the building Fifth avenue was almost blocked with the overflow, the fact that some 4,000 shareholders are Italians being responsible for hundreds of Italian women, many with bank books in one hand and babies on the other arm. The large crowd, mostly poor people, clamored for admission to the building, packed the stairways leading to the third floor and discussed with opprobrium the conduct of the officers and directors. Assistant District Attorney Miner announced to-night that he had received a letter from the referee, James J. Farren, of Albany, who reported that he had found the report of the company to the banking department not fully true and that the charges could be substantiated by documentary evidence in the county clerk's offices in Kings, Queens, New York and Westchester counties. Mr. Miner said that a rigid investigation would be instituted at once.

8. December 1, 1903 The Jersey City News Jersey City, NJ
Article from The Jersey City News, December 1, 1903

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To Eric G. Lofquist and Lydia M., his wife, the "New York Building Loan Banking Company," and Charles M. Preston, temporary receiver of "New York Building Loan Banking Company," by virtue of an order of the Court of Chancery of New Jersey, made on the day of the date hereof, in a cause wherein the Howard Savings Institution is complainant, and you are defendants, you are required to appear, plead, answer or demur to the said complainant's bill, on or before the twelfth day of January next, or the said bill will be taken as confessed against you. The said bill is filed to foreclose a mortgage given by Eric G. Lofquist and wife to complainant, dated February 1, 1902, on land in Township of Kearny, Hudson County, N. J., recorded in Book 459 of Mortgages for Hudson County, page 450. You, Eric G. Lofquist and Lydia M. Lofquist, are made defendants, because you may have some interest in said premises, yet unconveyed. You, "New York Building Loan Banking Company," and Charles M. Preston, temporary receiver of said company, are made defendants, because you claim to own said premises. Dated November 11, 1903. JAMES C. MCDONALD, Complainant's Solicitor, 22 Clinton street, Newark, N. J.

9. January 5, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, January 5, 1904

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lates to the proceedings against the New York Building Loan Banking Company, which he calls the "sensational episode of the year." Mr. Kilburn recites at length the innumerable ways In which the company was trying to holster UD its failing fortunes: the fight in court. etc., which finally led to the receivership now in operation.

10. February 12, 1904 New-York Tribune New York, NY
Article from New-York Tribune, February 12, 1904

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NewDork Daily Cribence FRIDAY, FEBRUARY 12, 1904. the NEWS THIS MORNING. FOREIGN.-The Russian Baltic Sea fleet have has There may started been a for third the sea Far fight; East. the Admiral dispatches Alexieff do was not this clear. make to the supreme command of Far the East. Russian appointed both land and sea, in the of forces, St. Petersburg reports bombardments saying Arthur on Tuesday and Wednesday, suffering Port fleet withdrew after is renewal of the as the Russians expected, severe that the losses; Japanese however, a Arthur; bombardment were the tearing report buildings in Port Manchurian of down the high blowing up of a bridge on the The is confirmed from Tien-Tsin. Railway censorship still prevails at the St. strict press and in the absence of news battles Petersburg, is fed on all sorts of stories of populace by sea and land and Russian victories. the Japanis great rejoicing in Tokio over paThere victories: on Wednesday night crowds ese streets with bands and transparencies; were cheered The Mikado has a the peared. the raded British the wherever issued and giving they procla- apofficially declaring war Constantinovitch mation therefor. Nikolai and reasons Mikhaflovski, the Russian critic, author Four publisher, died at St. Petersburg. were drowned off the coast of the Luzon, P. of a small boat in a storm; setting Province Americans of Tayabas, men. I., by two the were upteachers and two medical Roosevelt issued a directing citizens of war strict neutrality in proclamation States DOMESTIC.-President to observe the the Senator United between Russia and Japan. Hanna's condition was reported by his physiclans to be extremely serious, his temperature caused pulse having increased and the fever greater and weakness. The State Railroad Commissioners made sweeping recommendations street the better management of elevated and for railroad traffic in Manhattan and Brooklyn. Baltimore banks resumed business; sev- is eral streets were cleared of debris; the The city Rev. not likely to need outside aid. Dr. Richard H. Nelson, of Philadelphia, was Alchosen Bishop Coadjutor of the Diocese of The American Exchange National Bank bany. of Syracuse, was closed by a National Bank Examiner. Swollen rivers in Penn- A sylvania flooded factories and homes. bold attempt was made to dynamite a bridge at Conn., the result, most probably. of labor troubles. Ansonia, Six "cattle kings" were arrested for fencing-in government lands. CITY-Stocks were dull at email net the A victory was gained in transfer changes. fight, the Interurban giving transfers A et the four chief points in dispute. permanent receiver was appointed for the NewYork Building Loan Banking Company. brought to make the United States pay a on Steel A suit Corporation was dividend the Japanese its common stock A speech by Minister, Kogoro Takahira, defining Japan's for warring with Russia, was read at of the Silk to the wife of reasons vorce the dinner was granted Association. DeWitt fifteen A Clin- min- d1ton West, after a jury deliberated Chief Croker was in command fire near the a at utes. threatened a spectacular Fire block It was waterfront learned that that Mayor McClellan approved a plan to connect by the Manhattan ends of the two big bridges It was reported an elevated structure. that a number of small insurance companies which suffered heavily by the Baltimore fire would be absorbed by larger ones. THE WEATHER.-Indications for to-day: Fair. The temperature yesterday: Highest, 27 degrees; lowest, 11.