Pacific Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 1, 1882*
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: efbec15c

Response Measures

None

Description

Article describes the Pacific Bank's suspension and subsequent failure in May 1882, with a receiver (Price) taking charge and later revelations of embezzlement/speculation by trustee William J. Best. No explicit run on the bank is described in the excerpt; the sequence is suspension leading to failure/receivership.

Events (2)

1. May 1, 1882* Receivership

Newspaper Excerpt: When Receiver Price took charge of the institution he found Carruth's notes with their purported security, but with no record of the payment ... Receiver Price took charge of the institution ... failure of the bank in May, 1882.
Source: newspapers

2. May 1, 1882* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Embezzlement and losses from speculation by trustee William J. Best and irregularities in trust security accounting discovered around time of suspension/failure.
Newspaper Excerpt: This all preceded the failure of the bank in May, 1882. When Receiver Price took charge of the institution he found Carruth's notes...
Source: newspapers

Newspaper Articles (1)

1. October 28, 1885 The Washington Critic Washington, DC

Article from The Washington Critic, October 28, 1885

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Article Text

WILLIAM J. BEST ARRESTED. Charged With Embezzling $75,000 Which He Held in Trust. William J. Best was arrested in New York yesterday and taken to Boston. He is charged with embezzling $75,000 which he held as trustee under the will of the late Francis W. Carruth of New York city. The money was left in trust for the benefit of W. W. Carruth, son of the testator. Young Carruth succeeded in obtaining $70,000 from President Benyon of the Pacific Bank before the collapse of that institution. As security for his note he pledged the income of the fund left by his father. Trustee Best acknowledged the assignment. This all preceded the failure of the bank in May, 1882. When Receiver Price took charge of the institution he found Carruth's notes with their purported security, but with no record of the payment of. anything under the assignment of income. Best was practically in charge of the bank between the time of the suspension and the failure. The receiver and young Carruth applied to the Probate Court for the removal of Best and the appointment of a new trustee. The application was granted and Charles A. White was appointed. The new trustee sought to obtain an accounting from Mr. Best. Facts were finally learned which tended to show that Best had sold some of the securieties that formed the trust, and had lost others in speculation. The case was recently brought before the grand jury, and an indictment was found against Best. Mr. Best is well known in this city: He has frequently been a visitor here, and was at one time prominently befere the public as the prosecutor of charges filed against Mr. Knox, late Comptroller of the Currency, who was accused of gross irregularities in connection with the defunct Pacific Bank. The matter was the subject of a special Congressional investigation, by which Mr. Knox was vindicated.