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ORIENTAL BANK PAU. NEW YORK, January 31.-The Oriental Bank has suspended
16449. Oriental Bank (New York, NY)
Bank Information
- Episode Type
- Run → Suspension → Reopening
- Bank Type
- state
- Start Date
- January 30, 1908
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
d6bfdfd2
Response Measures
Accommodated withdrawals, Capital injected, Full suspension, Books examined
Other: Legal receivership fight and court-approved liquidation plan with Metropolitan Trust acting as liquidating agent; later examiners reported frauds in the bank's books.
Description
Contemporary reports describe a run beginning Jan. 30 (after other NY bank failures/closures), the bank being closed by the State Superintendent Jan. 31, and later reopened under a court-approved plan with Metropolitan Trust acting as liquidating/assisting agent; reopened March 23, 1908. Suspension was by state order; run was triggered by runs/closures of other local banks and clearing house disclosures.
Events (5)
1.
January 30, 1908
Run
- Cause
- Local Banks
- Cause Details
- Run began after the closing of New Amsterdam National and Mechanics & Traders banks and disclosures at the clearing house; depositors made heavy withdrawals (~$200,000) following those failures.
- Measures
- Twelve leading institutions volunteered assistance up to $1,000,000; bank paid depositors promptly during the run and directors sought outside assistance.
- Newspaper Excerpt
- Following the closing last night of the Amsterdam National and Mechanics & Traders State bank, there was a run on the Oriental bank during the day, which it successfully withstood.
- Source
- newspapers
2.
January 31, 1908
Suspension
- Cause
- Government Action
- Cause Details
- Bank did not open and was closed by order of the State Superintendent of Banks after the run and disclosures of clearing house/debit balances; examiner placed in charge.
- Newspaper Excerpt
- The Oriental bank ... did not open for business today. A notice was posted on its doors announcing that the institution was closed by order of the state superintendent of banks.
- Source
- newspapers
3.
February 21, 1908
Other
- Newspaper Excerpt
- The Metropolitan Trust Company ... will probably take over the suspended Oriental Bank in the near future and liquidate its assets for the benefit of depositors and stockholders. ... The bank closed on January 29. ... The bank is at present in the hands of the State Banking Department. G. S. Leonard, a state bank examiner, is in charge.
- Source
- newspapers
4.
March 6, 1908
Other
- Newspaper Excerpt
- Justice O'Gorman ... approved the plan ... temporary receivers ... will be set aside. A plan of liquidation has been agreed upon by the directors of the bank and the Metropolitan Trust Company, under which the latter agrees to pay off all the depositors ... the receivers stood in the way of the execution of this plan.
- Source
- newspapers
5.
March 23, 1908
Reopening
- Newspaper Excerpt
- The Oriental bank reopened its doors to its depositors again today, and about a dozen of them turned in their passbooks to be balanced, after which they will be paid in full.
- Source
- newspapers
Newspaper Articles (24)
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STOOD A RUN I Oriental Bank Stood Shock of a Run Successfully Yesterday I New York, N. Y., Jan. 30.-President Hugh Kelley of the Oriental bank, a state institution which withstood a run today, gave out a statement tonight that he believed the bank would open tomorrow morning for business. Following the closing last night of the Amsterdam National and Mechanics & Traders State bank, there was a run on the Oriental bank during the day, which it successfully withstood. It was given out that the bank would be able to secure all assistance necessary.
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Another New York Bank Fails, New York, Jan. 31.-The Oriental bank, which withstood the run yesterdaq, failed to open its doors this morning. A statement is promised by the bank officials.
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ORIENTAL BANK CLOSED BY STATE New York Institution Fails to Open After a Run-Affected by Other Failures, New York, Jan. 31.-The Oriental bank on which a run of depositors was started yesterday did not open for business today. The bank was closed by order of the state superintendent of banks. The Oriental is a state bank having a capital of $750,000. According to the last statement it owed individual depositors $7,575,000 and banks $3,477,000 and had a surplus fund of $912,000 and undivided profits of $304,000. The troubles of the Oriental date from the failure of the Borough Bank of Brooklyn and the International Trust company in October last.
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ORIENTAL ALSO Another New York Bank is in Trouble-Doors Were Closed This Morning CAPITAL IS $750,000 New York, Jan 31.-The Oriental bank at 184 Broadway, on which a run of depositors was started yesI terday, did not open for business today. A notice was posted on its doors announcing that the institution was closed by order of the state superintendent of banks. The Oriental is a state bank having a capital stock of $750,000. According to its last statement it owed to individual depositors $7,576,811, and to banks, bankers and brokers, $3,477,252. It had a surplus fund of $912,000 and undivided profits of $303,947 G. S. Leonard, a state bank examiner, was put in charge of the institution this morning. A. branch of the Oriental bank at 122 Bowery was also closed. A line of depositors was formed in front of the main offices in Broadway at an early hour to-day and when the hour for opening arrived there were about 75 depositors in line, some of whom had been standing for several hours in the extreme cold weather. As soon as the closing was announced this line melted away. The recent troubles of the Oriental date from the failure of the Borough bank of Brooklyn and the International Trust company in October last. The Oriental was a depository for the capital stock of the trust company when it was organized by William Dow and others last fall. When the Borough bank closed it was discovered that the Oriental bank had loaned it $250,000 and it was asserted that this was returned to the Oriental as part of the capital stock of the International Trust company, Richard W. Jones, jr, president of the Oriental bank, retired in November and Hugh Kelly, a well known commission merchant was elected president. In the distrust which followed the Brooklyn disclosures, the Oriental suffered considerably and it was compelled to take out about $2,400,000 of clearing house certificates. About $1,000,000 of these had been retired when the clearing house refused to issue any more certificates to the Oriental and a few other banks which were in need of further assistance. When these facts became known yesterday the depositors began to make heavy withdrawals taking out about $200,000 yesterday. Twelve of the leading financial institutions of the city volunteered yesterday to assist the distressed institution to the total extent of $1,000,000 in cash provided the directors would become individually responsible for the loan. The majority of the directors agreed to this but there were some among their number who were unable to do SO and a the plan failed. The directors at meeting this morning, decided to place the affairs of the bank in the hands of the state banking department. Charles E. Levy, one of the directors, announced that none of the depositors would suffer any loss in consequence of its closing.
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IN HANDS OF EXAMINERS Two More New York Banks Suspend Payment. New York, Jan. 31.-Bank examiners have taken active charge of the affairs of the New Amsterdam National bank and the Mechanics and Traders' bank, a state institution. Both of these banks were included in the MorseHeinze-Thomas chain of banks and after the closing of the National Bank of North America a few days ago there had been what practically amounted to runs upon them. Both of them were still unable to take up their allotment of the certificates which the clearing house issued during the stringency beginning in October and when the renewed drain upon their resources began the clearing house authorities declined to extend further their credit. Fearing heavier withdrawals the officials of both banks decided to close their doors. Although this action was not unexpected among the bankers and well informed men in the financial world it found many of the depositors unprepared and caused them much inconvenience. As a result of the closing of these banks several others not in the important class met heavy withdrawals of deposits. One of these was the Oriental bank, where quite a run of depositors began as soon as the office was opened for business. All depositors were paid promptly and President Hugh Kelly announced that twelve other institutions had come to the aid of the bank and that he hoped to be able to withstand the drain. It is not anticipated that the closing of the New Amsterdam and Mechanics and Traders' banks will have any effect upon the general banking situation in this city, as both of them have been going through a gradual liquidation for the last few months, in which their debits and credits have been gradually reduced.
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ORIENTAL BANK CLOSED. Another New York Institution Suspends Business. New York, Feb. 1.-The Oriental bank, on which a run of depositors was started Thursday, has suspended. A notice was posted on its doors announcing that the institution was closed by order of the state superintendent of banks. The Oriental is a state bank having a capital stock of $750,000. According to its last statement it owed to individual depositors $7,576,811 and to banks, bankers and brokers $3,477,252. It had a surplus fund of $912,000 and undivided profits of $303,947. G. S. Leonard, a state bank exaininer, was placed in charge of the institution. A branch of the Oriental bank at 122 Bowery also was closed. The recent troubles of the Oriental date from the failure of the Borough bank of Brooklyn and the International Trust company in October last. The Oriental was a depository for the capital stock of the trust company when it was organized by William Gow and others last fall. When the Borough bank closed it was discovered that the Oriental bank had loaned it $250,000 and it was asserted that this was returned to the Oriental as part of the capital stock of the International Trust company.
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America, the New Amsterdam bank and the Mechanics and Traders'. The Morse-Heinze-Thomas connection with these banks had weakened public confidence, and it was feared that runs would be made which the institutions could not meet. Therefore as a safeguard they were placed in the hands of the federal banking authorities. All are said to be solvent, and it was expected that depositors would be paid in full and that the banks would be able to resume business in a short time. After withstanding a run on the previous day and fearing a continuance, the directors of the Oriental bank decided to close its doors and turn the bank over to the state banking officials. The reason for this action was the disclosure at the clearing house of a debit balance of $939,000. # Steel Trust's Big Earnings. Despite the unfavorable showing of the last quarter of the year, the records of the steel trust show that its profits for 1907 were $160,984,477, which is over $6,000,000 in excess of the previous high water mark, reached in 1906. The October earnings, immediately preceding the financial and industrial disturbance, were the largest in the history of the corporation. The directors have declared dividends for the last quarter of the year of 1¼ per cent on the preferred and one-half of 1 per cent on the common stock. The first five years of the profit sharing plan of the trust have nearly closed, and it is reported in Wall street that those of its employees who have continuously held the preferred stock purchased when the plan was first announced in 1903 will receive an extra dividend of 65.4 per cent. # McCurdy Laughs at Suits. Richard A. McCurdy, former president of the Mutual Life Insurance company, who has spent two years in Europe, recently returned to his home in Morristown, N. J. When asked about the suits for the restitution of several million dollars which the management of his old company had brought against him he laughed and said: "I have lawyers, and they will take care of the suits. They are not worth talking about. I am seventy-three years old. The real question is, Which will last the longer, the suits or myself?" # Pittsburg Exchange Opens. The Pittsburg Stock Exchange, closed since Oct. 23 last, opened for business Jan. 27. There was a tendency on the part of the brokers to withhold sales, and only 271½ shares changed hands. The reopening of the exchange has already restored confidence to a notable degree. # Morse Lines Ask Receivership. In order to prevent various creditors from applying for a receivership on their own account the controlling interests and the bondholders' committee of the Consolidated Steamship lines, the Charles W. Morse $120,000,000 combine, have applied for a receiver for the Consolidated and the two weakest of its subsidiary lines, the Metropolitan and Eastern Steamship companies. These proceedings do not affect the Mallory, Clyde, New York and Porto Rico and New York and Cuba lines, which are also subsidiaries of the Consolidated. # Morgan Takes More Bonds. The New York city officials have decided to sell $50,000,000 in bonds, having arranged with J. Pierpont Morgan for the underwriting of the issue. It is expected that these bonds will be put on the market in a few days. Their proceeds will be used in carrying out needed public improvements.
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MAY TAKE ORIENTAL NEW LIQUIDATING AGENT. Metropolitan Trust Will Probably Save Bank from Receivership. The Metropolitan Trust Company, of which Brayton Ives is president, it was learned last night, will probably take over the suspended Oriental Bank in the near future and liquidate its assets for the benefit of depositors and stockholders. Hugh Kelly, president of the Oriental, is making heroic efforts to have the institution taken over and liquidated by some strong bank or trust company, so that the depositors may be paid off at once and not have to undergo the long and expensive process of a receivership. A week ago Mr. Kelly felt sanguine that the United States Mortgage and Trust Company would take over the Oriental and liquidate its assets. but some slight hitch is understood to have occurred when the negotiations were all but completed, with the result that the deal has been called off, greatly to the disappointment of the Oriental's depositors. Nothing daunted by this failure, however, Mr. Kelly has kept on looking for a liquidating agent, and now it is believed that the Metropolitan Trust Company will take up the task. The draft of a plan is understood to be all prepared and will soon be presented to Clark Williams, State Superintendent of Banks, for his approval. Control of the Mobile, Jackson & Kansas City Railroad, in which several of the Oriental Bank directors were heavily interested, passed a few days ago to the Metropolitan Trust Company. At a special meeting of the directors of the railroad, R. W. Jones, jr., former president of the Oriental Bank, and Charles E. Levy, a director in the Oriental, resigned and were replaced by George R. Sheldon and John W. Simpson, who are directors in the Metropolitan Trust Company. Alexander McDonald, who is a director of the Oriental, is also a member of the railroad's board. Brayton Ives, the president of the Metropolitan Trust Company, was elected chairman of the Mobile, Jackson & Kansas City board several weeks ago. The deposits of the Oriental amounted to $4,465,537.33 when the bank closed its doors. on January 29. Its surplus at this time was $788.81088, and it owed the Clearing House $1.751,351 28 for outstanding loan certificates. Its capital stock is $750,000. At the time the bank suspended President Kelly announced that it was perfectly solvent. and this statement has been borne out by examinations of the assets made since then. The bank is at present in the hands of the State Banking Department. G. S. Leonard. a state bank examiner. is in charge. The Metropolitan Trust Company, at No. 49 Wall street, has a capital of $2,000,000. a surplus of $7,345,150. and deposits of $23,747,753. Its stock is quoted at 540 bid.
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basis of the charges: ORIENTAL BANK FREE TO REOPEN BY COURT ORDER Justice O'Gorman. in the Supreme Court. to-day approved the plan of the Creators of the Oriental Bank. This means that the temporary receivers appointed at the instigation of AttorneyGeneral Jackson will be set aside. When Mr. Jackson WILS in the middle of his argument the Court cut him short. saying: "As I understand it, :0 per cent. of the depositor's consent to the plan." "Ninety-three per cent. to be exact." said David McClure, who appeared for the depositors. "Then I'm not going to interfere." said Justice O'Gorman. "The Court gives its approval." Mr. Jackson asked to be further heard. but Justice O'Gorman said he had heard enough. David McClure. counsel for the depositors. and Charles Beekman. for the directors, urged Justice O'Gorman to set aside the receivers of the Oriental Bank. Attorney-General Jackson. who had Henry Schneider and the Carnegie Trust Company appointed, on Feb. 29, opposed the application. The bank closed Jan. 31 last. A plan of l'quidation has been agreed upon by the directors of the bank and the Metropolitan Trust Company. under which the latter agrees to pay off all the depositors, whose claims amount to $4,000,000. The receivers sto di in the way of the execution of this plan. and the depositors were lined up against the Attorney-General. "The complaint in which the receivers were appointed was insuflicient." said Mr Beekman. The bank has a large capital and a large surplus. but at the present time is without sufficient cash to pay its depositors and creditors. We submit affidavits. verified by the officers of the State Banking Department. which show that the capital of the bank is intact and that it has a large surplus and is in condition to pay off its depositors and creditors by obtaining a loan from the Metropolitan Trust Company. Mr. Beekman said that Barrow. Wade & Co. had reported that the bank was solvent. after an exclusive examination of its accounts, and that the bank had & capital of $750,000 and a surplus
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ORIENTAL BANK TO OPEN MONDAY DESPITE JACKSON Restraining Order Brought to the County Clerk Five Minutes Late. Although the Oriental Bank probably will open its doors Monday. AttorneyGeneral Jackson indicated by his action to-day that he has not given up the fight to keep it closed. When Justice O'Gorman to-day signed the order vacating the receivership obtained by the State's attorney. a representative of the latter tried to file a notice of appeal. Owing to a peculiar state of circumstances. the County Clerk declined to receive the notice and it is likely that the Attorney-General will reappear with it early Monday morning. The restraining order which Mr. Jackson proposes to apply. however. will not act as a stay, and the Oriental may be placed in the position of opening with a sword suspended over its head. Justice O'Gorman signed the order after a conference in chambers with Attorney David McClure and Attorney-General Jackson As soon as the order was taken to the County Clerk's office a representative of the Attorney-General rushed into the office and threw down a paper. Notice Five Minutes Late. "What's this?" asked a clerk. "It's a notice of appeal in the Oriental case," said Mr. Jackson's man. "Well, it's just five minutes too late." said the celrk. glancing at the clock "It's five minutes after twelve and we close at 12 o'clock" The Attorney-General's assistant persisted. but the County Clerk was obdurate, declaring that it was past the legal hour. Justice O'Gorman signed two formal orders-one restraining the Carnegie Trust Company and Henry Schneider. the temporary receiver, from in any way interfering with or collecting or taking over the sum of $346,000 deposited by the Oriental Bank with the Superintendent of Banking and by him deposited with the Bankers' Trust Company: the other removing the receivers and approving the terms of the contract entered into between the Oriental Bank and the Metropolitan Trust Company. under which the depositors will immediately receive their money. S. Stanwood Menken, counsel for the directors, lost no time getting certified copies of the order to be served on the receivers, the Superintendent of Bank ing and the other parties interested. and said he would have them served at once. Appended to the order was an affidavit made by Martin G Bogue, in which he said he had served a copy of the order on the Attorney-General last night at the New Grand Hotel It was this copy which enabled Mr. Jackson to prepare his notice of appeal. "I have nothing to say at present," said Attorney-General Jackson, as he left the court-house.
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other things. vacates and sets aside the order made and entered herein February 28, 1908. appointing temporary receivers of the defendant in the above entitled action. Immediately upon the filing of such order today I served notice of appeal upon the Clerk of the County of New York and upon Messrs. Philbin, Beekman x Menken, attorneys for the defendant. a copy of which said notice of appeal. with a notice of such service. will be handed to you by the bearer of this letter. I am of the opinion that the service of the notice of appeal perfected the appeal and stays all proceedings under the order appealed from. as provided by section 1,313 of the Code of Civil Procedure. That there may be no question upon this point I intend to immediately apply to the court for an order staying all proceedings until the hearing and decision of the appeal. In my opinion there are several important legal questions involved in these proceedings, and I enclose a memorandum which I have prepared upon the subject, which defines my position. Yours truly. W. S. JACKSON, Attorney-General. The Attornev-General is the legal adviser of the State Superintendent of Banks and Mr. Williams was apparently up against the proposition of being advised not to do what the Court ordered him to do. After the refusal of the Carnegie Trust officer. however, there was nothing more for the State Superintendent to do and he left for Albany. Justice O'Gorman and also Justice FitzGerald remained at the County Court building until about 3 o'clock in the afternoon. In the meantime, however, the bank's lawyers had been conferring and had come to the conclusion to do nothing until the opening of court on Monday. The order signed by Justice O'Gorman besides vacating the receivership authorizes the Oriental Bank to enter into a contract with the Metropolitan Trust Company for the payment in full of its creditors under the terms set forth in the contract. It directs the State Superintendent of Banks to remain in control of the bank's property until the contract is executed and then to deliver the property to the Metropolitan Trust Company the liquidating agent. Mr. Jackson in his formal statement complains that no contract has as yet been entered into: that the proposed agreement as approved by the Court has not even been approved by the board of directors of the Metropolitan Trust Company or of the Oriental Bank. Furthermore, no bond has as yet been executed. "Up to this time." said the AttorneyGeneral "there has only been presented a proposition that it is said will be executed at some time. but which is not binding upon any one. The proposed agreement provides for the payment to the Clearing House of the amount due it by the bank. but no time is specified. The proposed agreement provides for the payment of depositors forthwith 'when the amount due each depositor shall be certified by expert accountants.'' Mr. Jackson said he could find no authority in law authorizing the Court to direct receivers to turn the property of an insolvent moneyed corporation over to the State Superintendent of Banks. The Court directs the State Superintendent upon the execution of the contract to turn over all the assets of the bank to the Metropolitan Trust Company. Mr. Jackson says: "I can find no law authorizing a court to direct the Superintendent of Banks to turn over to a third person the assets of a bank in his hands and which he has reported as unsafe and that it is inexpedient for it to continue in business. The only law I find requires the Superintendent of Banks in possession of the assets of a bank that he deems unsafe and inexpedient for it to continue business to report those facts to the Attorney -General, whose absolute duty it then becomes to bring an action for its dissolution." Mr. Jackson contends that the rights and liabilities of stockholders and others besides creditors are wholly unprotected by the Court's order. "This order," says the Attorney-General, 'establishes an entirely new practice and one wholly unauthorized and in effect it establishes the precedent for permitting insolvent corporations to select their own receivers and to administer their affairs regardless of the provisions of the law reQuiring their dissolution and the distriDution of their assets through officers appointed by the Court." Mr. Jackson promises to get as speedy a determination of the case as possible.
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ORIENTAL BANK DEPOSITORS DON'T GET THEIR MONEY Attorney-General Jackson Gets Receivership Fight Into Appellate Court. Attorney-General Jackson to-day won point in his fight to save the receivers a of the Oriental Bank and to prevent it from re-opening. After a lengthy argument before Justice O'Gorman. the latter refused to resettle his decision of Saturday in which he threw out the receivers and approved the plan of reorganization Justice O'Gorman sent the controversy to the Appellate Division. where it will he heard bv Justice O'Laughlin to-mor row. In the meantime the Oriental Bank's depositors who expected to get their money to-day will have to wait. Directors Make Appeal. Attorney-General Jackson and Deputy Attorney-General De Ford: David MeClure for the depositors and Stanwood Menken for the directors. opened in chambers before Justice O'Gorman. Mr. Menken said they wanted a resettlement of the decision. with a provision setting forth that the Attorney-General consented to the order. and, then filed a notice of appeal. This complicated the matter. said Mr. Menken. "It seems to me utterly unheard of that any lawyer." said Mr. Jackson, "and especially a lawyer for the peop could consent to do away with the legal rights of the people. The sole purpose of this application is to deny the people the right of appeal. What I said was that If Your Honor deemed this agreement. by which the depos tors were to be paid. legal. I consented." "No. I have a distinct recollection that you said you would consent to any plan by which the depositors were paid in full." said Justice O'German. "I asked you If you opposed the ratifleation of the agreement and you said 'no.''' Mr. Menken then informed the Court .. that Mr. Jackson had obtained a stay from the Appellate Division. o "I have nothing to sav about that." 1 said Justice O'Gorman. "I was assured that under this plan all the depositors were to be paid by Friday and that all were to be paid in full. It was my understanding that if this was not done the matter was to be taken up by this court and the Attorney-General." During the argument Justice O'Gor-
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THE NEWS THIS MORNING. CONGRESS.-Senate: Mr. Bailey spoke in advocacy of his substitute for the Aldrich currency bill. House: The death of Mr. Meyer, of Louisiana, was announced. and adjournment was taken without transacting any business. FOREIGN-General d'Amade reported that his forces. after an action lasting all day. had routed the warriors of two Moorish tribes and a part of Mulai Hafig's adherents: the losses of the tribesmen were enormous. The letter from Emperor William to Lord Tweedmouth will not be made public: the opposition leaders in both houses of Parliament acquiesced in the government's decision: Lord Rosebery accused the nation of making itself ridiculous over the incident. King Alfonso started for Barcelona, where great precautions have been taken to protect him: crowds cheered him on his departure from Madrid. M. Beernaert, Belgian Minister of State, has decided to oppose the revised Congo treaty owing to the inclusion of the grant to King Leopold: his action may China has not yet redefeat the measure. leased the Tatsu, but Japan's willingness to meet the request to supervise the export of arms indicates that the difficulty is nearing solution. DOMESTIC-The Navy Department received wireless messages from Rear Admiral Evans's battleship fleet, by way of Pensacola, Fla. District Attorney Jerome presented to the Governor at Albany his reply to the charges made against him by Metropolitan Street Railway stockholders. The special committee of the House of Representatives began the investigation of Mr. Lilley's charges of corruption in connection with contracts for submarine boats. Experiments with magnesium, according to Professor A. G. Mayer. of the Carnegie Institution. show that it will restore the vital spark when life seems to all intents and purposes to be extinct. Delay in the matter of the anti-racetrack gambling bills has been secured by the racetrack men, and the Judiciary Committee hearing has gone over until March 18. A successful balloon ascension was made Joy A. Holland Forbes, who went up at North Adams. Mass., and came down at Monson. Mass. travelling seventy-five miles in two hours. The employes in a considerable number of New England mills and factories were put on a short time basis. and in the next few weeks many more mills are expected to take similar action. It was reported at Chicago that federal District Attorney Sims would make an investigation- of thirteen alleged anarchist agents in various parts of the country and bring proceedings for deportation if justified. CITY.-Stocks were active and higher. Governor Hughes spoke at the opening of the exhibit of congestion of population in New York in the American Museum of Natural HisCounsel for the Oriental Bank failed tory. to get from Justice O'Gorman a resettlement of the order vacating the receivership of the bank. The Long Acre Electric Light and Power Company placed a valuation of $50,000,000 on its franchise. Controller Metz said that the city had no money to build either the Brooklyn Fourth avenue or the Lexington arenue-Broadway subway. The Attorney General's suit to dissolve the New York City Rajiway Company was continued in the Supreme Court. The liquor dealers held a lively meeting of protest against the action of the brewers in raising the price of been THE WEATHER-Indications for to-day: Fair. The temperature yesterday: Highest, 41 degrees: lowest. 28.
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JACKSON WINS A POINT. Justice Patterson, of the Appellate Division. yesterday set Friday as the day for a hearing on the order to show cause why arguments should not be heard immediately upon Atterney General Jackson's appeal from Justice O'Gorman's order vacating the order appointing temporary receivers for the Oriental Bank A delay was asked for by Martin L. Stover, who represented the Attorney Generay. E. Stanwood Menken, of counsel for the Oriental Bank, vigorously opposed the granting of any delay, but was overruled.
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# FRAUD IN FAILED BANK. Very Sensational Charges Are Made in Examiners' Report. Misconduct in the affairs of the Oriental bank, of New York, which is in the hands of receivers, is charged in a report written by the examiners employed by the receivers and made public Thursday. The report says: "The bank has been conducted in a most slipshod, loose and unbusiness-like manner and has been permeated with irregularities, frauds and crime."
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MANY JACKSON CHARGES. Attorney General Issues DenialsAsks Thorough Inquiry. Attacked from several quarters and facing charges of criminal misconduct in office, Attorney General Jackson had his hands full yesterday issuing statements and denials and holding consultations with his advisers. These are some of the things that "jolted" Mr. Jackson: Decision of the Appellate Division reversing the order of Justice Betts approving a contract made by Bruyn Hasbrouck, one of the receivers for the Brooklyn Bank, appointing Charles M. Dolson, at that time one of Mr. Jackson's deputies, counsel for the receivers; severe criticism by the Appellate Division of Mr. Jackson's action in causing his deputies to be appointed receivers; letter from Clark Williams, State Superintendent of Banking, advising Mr. Jackson that unless a court order was soon obtained to the contrary he would disregard his advice and turn the assets of the Oriental Bank over to the Metropolitan Trust Company; reply from Senator Saxe to the Attorney General's letter alleging that the latter contained maliciously false statements; statement of Jackson's alleged misconduct laid before the Governor for his consideration. Mr. Jackson was at his office early in the morning, and in the first statement he issued he denied absolutely the charge that he had asked Frank White, receiver for the Hamilton Bank, to give him half of the receivership fees for suggesting his name for receiver. Mr. White is said to have testified before the grand jury to that effect. In a later statement Mr. Jackson said he had called Mr. White up over the telephone, and that the latter had told pim that he had not said anything to the grand jury "that would be injurious to the Attorney General." Mr. White said that he had declined to discuss grand jury affairs with Mr. Jackson over the telephone. He refused to say whether he had testified before the grand jury that Mr. Jackson had asked him to "divide receivership fees" with him. Mr. Jackson was much agitated over this charge. "The best way out," said he, emphatically, "is to have the Legislature make a full investigation of me and my office. Let them go into everything and I will be vindicated beyond doubt." In accord with this view, he telegraphed Senator Grady and Assemblyman Palmer, the Democratic leaders in the Legislature, that he desired a bill passed calling for an investigation, and asked them not to oppose the Saxe measure. Mr. White took exception to some of the testimony of William R. Montgomery. He said that the Montgomery overdrafts had been discovered by expert accountants in going over the books of the Hamilton Bank, and denied that Mr. Jackson "had tipped him off to them." It is understood that Mr. Jackson has not yet been subpoenaed to appear before the grand jury. Yesterday afternoon he got a bulky letter from that body which was marked "strictly personal," and for this reason the Attorney General said he must refuse to disclose its contents. Joseph Ford, formerly Mr. Jackson's secretary, and now a receiver for the Mechanics and Traders' Bank, was down at the Criminal Courts Building in the morning. but was not the grand Neither he nor was served with subpoena that yesterday. Frank called The White impression before prevails jury. a the grand jury will make a presentment of some kind to the court within a few days. Papers used by the Attorney General in his inquiry into the affairs of the American Ice Company were returned to John R. Bennett, secretary of the company, yesterday by the District Attorney's office on an order signed by Mr. Osborne, special deputy Attorney General.
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ORIENTAL BANK RESUMES. Attorney General Jackson Unable to Balk the Plan. New York, March 23.-Five hundred thousand dollars which had been deposited by savings banks with the Oriental bank before the latter institution suspended payment several weeks ago, was paid to the savings banks today. The payment was made under the plan which had. been approved by depositors and which finally was approved by the courts in the face of opposition on the part of Attorney General Jackson. The Oriental bank reopened its doors to its depositors again today, and about a dozen of them turned in their passbooks to be balanced, after which they will be paid in full. Announcement was made today by counsel for the bank that the payments to all depositors probably will be completed within two weeks.
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# New York Bank Frauds. New York City. —In a statement to the Attorney-General the receivers for the Oriental Bank reported the discovery of many irregularities and crimes among the bank's assets and books.
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OUT OF CLEARING HOUSE. Suspended Banks Formally Expelled-May Be Readmitted. It was learned yesterday that at a recent meeting of the Clearing House Association formal action was taken terminating the membership in the association of the National Bank of North America, the New Amsterdam National Bank, the Oriental Bank, the Mechanics and Traders' Bank and the First National Bank of Brooklyn. These five hanks suspended payment during or after the panic last fall. To date only one-the First National Bank of Brooklyn-has resumed business. The action recently taken by the Clearing House was merely formal, as membership in the Clearing House automatically terminates when a bank suspends payment. The banks named above will never be able to get back the original numbers which they held in the Clearing House, but any or all of them on the resumption of business may be readmitted to the association if the committee on admission sees ftt. In such case, however, they will have to take new numbers at the foot of the list. of the five banks which forfeited membership two, the Oriental and the National of North AmeriC8, will probably go out of existence after the assets are liquidated. Plans are under way for the reopening of the New Amsterdam National and the Mechanics and Traders'. The National Bank of North America has an interest in the Clearing House Building Association, but this interest will be sold to the association, as provided by the rules.
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FINANCIAL Jan. 2-State Bank, Rockyford, Col., closed doors. 6-Four big New York diamond firms forced into trustee's hands; liabilities, $4,500,000. -Chicago Great Western railroad JOHN placed in hands of receivers. 16-Western Bank and Trust Co., Dallas, Tex., largest Texas saving bank, placed in receiver's hands. 18-John R. Walsh, president Chicago National bank and several railroads, convicted of misappropriating institution's funds. 21-Capital State Bank, Boise, Idaho, suspended. 22-Traders and Mechanics' Bank, Pittsburg, Pa., closed doors. 25-National Bank of North America, New York, closed for liquidation, by order of government. 29-New Amsterdam National bank, capital $1,000,000, and Mechanics and Traders' bank, both of New York, taken in charge by comptroller of currency. 31-Oriental Bank of New York closed doors, following run. Feb. 13-W. B. Ridgely, comptroller of currency, accepted presidency of reorganized National Bank of Commerce, Kansas City, Mo. 26-International and Great Northern Railroad Co., a Gould line, placed in receivers' hands. 27-Financiers E. R. Thomas and O. F. Thomas indicted on charge of mismanagement of funds of Provident Savings Life Assurance society. Mar. 13-John R. Walsh denied new trial; sentenced to five years in federal prison. 16-People's National bank, Aspin, Col., closed. Apr. 1-Pike County Bank and Trust Co., Macomb City, Miss., placed in receiver's hands. 21-Bank of Wauseon, Wauseon, O., closed doors. 24-T. A. McIntyre & Co., with houses in many cities, failed for $1,000,000. May 8-Euclid Avenue Trust Co., Cleveland, O., assigned. 14-Reserve Trust Co., and American Savings bank, Cleveland, O., closed their doors. 28-G. W. MacMillen & Co., Pittsburg, Pa., stockbrokers, failed; liabilities, $1,800,000. Jun. 3-Kosclusko Company bank, Warsaw, Ind., closed by state auditor. 23-Citizens' bank, Dover, Ky., closed doors. Jul. 14-National Deposit bank, Philadelphia, Pa., closed by comptroller of currency. 17-Farmers and Merchants' Banking Co., Cleveland, O., failed. 22-Standard on $29,240,000 fine decision unanimously reversed by United States court of appeals at ChiAug. cago. 6-First National bank, Belle Plaine, Minn., closed by order comptroller of currency; bank was insolvent: President J. G. Lund committed suicide. 25-A. O. Brown & Co., one of largest New York brokerage firms, failed; liabilities over $1,000,000. Sep. 10-A. Booth & Co., largest fish house in country, forced into receiver's hands. Oct. 16-Union National bank, Sommerville, Pa., closed by government. Nov. 5-Charles W. Morse and Alfred H. Curtis, great financiers, found guilty of misapplication of funds and falsifying books of National Bank of America, New York. 6-C. W. Morse sentenced to 15 years; Curtis given liberty on suspended sentence. 23-Eldred bank of Eldred, Pa., suspended; capital stock, $100,000. Dec. 7-National exchange bank at Springfield, Mo., closed; excitement caused by effort of W. O. Oldham, cashier of State Savings bank, to shoot President H. B. McDaniel, of Union National bank. 11-Springport, Mich., State Savings bank closed by bank examiner. 16-Somersworth, N. H., First National bank closed, following discovery of shortage of $85,000. 23-Thomas F. Ryan announced retirement from finance. 26-Henry W. Poor, New York broker, assigned for creditors.
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TEXT TOTAL Texas saving bank, placed in receiver's hands. 18-John R. Walsh, president Chicago National bank and several railroads, convicted of misappropriating institution's funds. 21-Capital State Bank, Boise, Idaho, suspended. 22-Traders and Mechanics' Bank, Pittsburg. Pa., closed doors. 25-National Bank of North America. New York, closed for liquidation, by order of government. 29-New Amsterdam National bank. capital $1,000,000, and Mechanics and Traders' bank, both of New York, taken in charge by comptroller of currency. 31-Oriental Bank of New York closed doors. following run. Feb. 13-W. B. Ridgely. comptroller of currency. accepted presidency of reorganized National Bank of Commerce, Kansas City. Mo. 26-International and Great Northern Railroad Co., a Gould line, placed in receivers' hands. 27-Financiers E. R. Thomas and O. F. Thomas indicted on charge of mismanagement of funds of Provident Savings Life Assurance society. Mar. 13-John R. Walsh denied new trial; sentenced to five years in federal prison. 16-People's National bank, Aspin, Col., closed. Apr. 1-Pike County Bank and Trust Co., Macomb City, Miss., placed in receiver's hands. 21-Bank of Wauseon, Wauseon, O., closed doors. 24-T. A. McIntyre & Co., with houses in many cities, failed for $1,000,000. May 8-Euclid Avenue Trust Co., Cleveland, O., assigned. 14-Reserve Trust Co., and American Savings bank, Cleveland, O., closed their doors. 28-G. W. MacMillen & Co., Pittsburg, Pa., stockbrokers, failed; liabilities, $1,800,000. Jun. 3-Kosctusko Company bank, Warsaw. Ind., closed by state auditor. 23-Citizens' bank, Dover, Ky., closed doors. Jul. 14-National Deposit bank. Philadelphia, Pa., closed by comptroller of currency. 17-Farmers and Merchants' Banking Co., Cleveland, O., failed. 23-Standard on $29,240,000 fine deelalon unanimously reversed by United States court of appeals at Chieago. Aug. 6-First National bank, Belle Plaine, Minn., closed by order comptroller of currency: bank was insolvent: President J. G. Lund committed suicide. 25-A. O. Brown & Co., one of largest New York brokerage firms, failed; liabilities over $1,000,000. Sep. 10-A. Booth & Co., largest fish house in country, forced into receiver's hands. Oct. 16-Union National bank, Sommerville, Pa., closed by government. Nov. 5-Charles W. Morse and Alfred H. Curtis, great financiers, found guilty of misapplication of funds and falsifying books of National Bank of AmerIca, New York. -C. W. Morse sentenced to 15 years: Curtis given liberty on suspended sentence. 23-Eldred bank of Eldred. Pa., suspended; capital stock, $100,000. Dec. 7-National exchange bank at Springfield, Mo., closed; excitement caused by effort of W. O. Oldham. cashier of State Savings bank. to shoot President H. B. McDaniel, of Union National bank. 11-Springport. Mich. State Savings bank closed by bank examiner. 16-Somersworth, N. H., First National bank closed. following discovery of shortage of $85,000. 23-Thomas F. Ryan announced retirement from finance. 26-Henry W. Poor. New York broker, assigned for creditors.
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JUSTICE INGRAHAM OBJECTS Says There Was No Reason for Appointing Carnegie Trust and Schneider. The bitter controversy in 1908 between the depositors of the Oriental Bank and William Schuyler Jackson, who was then Attorney General of the State of New York, over the latter's action in having temporary receivers appointed was recalled yes. terday by a decision of the Appellate Division of the Supreme Court in passing on the expenses of the receivership which the court considered unnecessary. The majority of the bench decided in favor of cutting down the charges favorably passed on by former Judge D. Cady Herrick as referee. while Presiding Justice Ingraham in his dissenting opinion went on record as opposed to allowing any charges whatsoever. About the time that Attorney General Jackson had the Carnegie Trust Company and Henry Schneider appointed as receivers of the Oriental Bank he also made several applications for the appointment of receivers for other institutions. In the case of the Oriental Bank he explained his action by saying that the plan whereby the Metropolitan Trust Company was to advance the bank sufficient funds to pay off its creditors was an effort to loot the bank and deceive the depositors. Justice Platzek appointed the receivers asked for. and the depositors became aroused over the action of the Attorney General. which they assailed as unnecessary interference in the affairs of the institution just at a time when it was getting of out of its difficulties following the panic 1907. The bank officials also objected. An action was brought to have the receivership vacated. and Justice O'Gorman granted the application. His decision the Appellate Division upheld, saying that Jackson acted too hastily in having the receivers appointed. Justice Ingraham expressed the view yesterday that the receivership was established for the sole purpose of helping the receivers. Then came the claims for the expenses for that brief receiversnip, amounting to Former Judge Herrick was apto pass on the accounts, not all of pointed $10,872. he did approve them. further and the while Appellate Division favored a still cut. Justice Davis approved the report of Judge Herrick. One of the expenditures objected to was that of $3,750 for counsel fees paid to John B. Stanchfield and Professor Charles A. Collin. The latter is the man who recently bore the letter that Governor Dix sent to District Attorney Whitman instructing him to consult with Attorney General Carmody in his investigation into the affairs of the Carnegie Trust Company. It will be remembered that this communication was delivered to the District Attorney by Stephen C. Baldwin, counsel for the officials of the Carnegie Trust Company. This claim for counsel fees was cut to $2,000. The Carnegie Trust Company asked a $3,000 fee as receiver of the Oriental Bank. Only $1,000 was allowed, which amount Schneider will also receive. The referee's fees and expenses amount to $670 more. The presiding justice said that there was no need for the receivers, and all that their appointment could have accomplished was to enable them to appropriate to themselves fees and expenses from the assets belonging to the creditors and stockholders of the Oriental Bank. "No court ad. ministering justice." said Justice Ingraham, "if the facts were known, would even have entertained an application for the appointment of receivers." Justice Ingraham went over some of these facts that he referred to. It appeared. he said, that the Carnegie Trust Company had been negotiating with the Oriental Bank to advance the latter money to pay its indebtedness, but that the creditors were not satisfied with the arrangement, preferring that made with the Metropolitan Trust Company. It appeared further, said the justice, that the president of the Carnegie Trust Company. who at the time was Charles C. Dickinson, who recently died under unusual circumstances, had been in communication with Attorney General Jackson. He had asked, the justice said, to be appointed recelver of the Oriental Bank, which fact the Attorney General did not tell the court in asking for the appointment of the Carnegie Trust Company as one of the Oriental receivers. Justice Ingraham said that he could not see that the receivers were entitled to anything as fees, as there was no service rendered He declared that if they had any claim it should be preferred against the state. as the court had no power to
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COUNSEL INVITES BANKERS ON STANO (Continued from First Page.) to do. No man can say anything stronger than this in proof of the feelings of his own. conscience." It was Charles W. Morse who spoke thus today to a representative of the International News Service who sought an interview of him on the revelations thus far made by the money trust investigation relating to the part played by the clearing house committee of the New York Clearing House assoclation in the failure of the Morse bunics after the stormy panic of 1907 had passed. Talks of Health and Hopes. Morse talked glibly about his/ health and his hopes. It was only when his visitor tried to get expressions on the subject of the light thrown by the Pujo committee on hitherto unpublished incidents which immediately preceded the wreck of his own banks as well as the Oriental and the mechanics and traders that his characteristic taciturnity asserted itself, "I thought all those things were ancier* history." he said. The former Ice king added that he had not had either opportunity or inclination to read the proceedings of the revelations pertaining to his own affairs or those of the Oriental. He had seen only brief reference to them. But he displayed keen interest in the remarkable narrative told before the congressional committee by R. W. Jones, Erskine Hewitt and Charles K. Beekman last Friday concerning the failure of the Oriental bank. Blames Clearing House, "There are three honorable and cap. able men," Mr. Morse declared. "They personally participated in the negotiations with the clearing house committee looking to the salvation of the Oriental. The public can place absolute reliance in their statements. 1 do not care at this time to say anything on the subject. The National Bank of the Republic and the New Amsterdam formed the keystone of an arch of business and financial enterprises. That was well understood by the clearing house committee." The ex-banker added mildly and without the least sign of bitterness in his tone that the New York Clearing House had usurped a power that it was never intended such an institut'on anywhere should ever have. He hoped such legislation as may be necessary to confine all the clearing houses of the country to their original functions would be soon enacted.