Produce Bank - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 9, 1883
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: cf17ae27

Response Measures

None

Description

The Produce Bank (59 Barclay St.) was placed into voluntary liquidation and depositors were invited to withdraw funds, with Continental National depositing funds to cover deposits after a court order. Articles state the bank 'simply goes into voluntary liquidation' and that stockholders intended to reorganize and start a new bank (Washington Market Bank). No contemporaneous run is described in these items (an earlier run 'about two years ago' is mentioned but not part of this episode). Classified as suspension_reopening because the bank suspended operations/entered liquidation but was to be reorganized/reopened under a new name and depositors were paid.

Events (3)

1. December 9, 1883 Other

Newspaper Excerpt: The court denied the application for a receiver provided that ... there be paid to the bank on Monday the amounts at that time due to the entire deposit account. ... the bank deposited with the Continental National Bank funds and securities sufficient to meet its liabilities to depositors, amounting to $154,000.
Source: newspapers

2. December 9, 1883 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors resolved to place the bank in liquidation (voluntary), requesting depositors withdraw balances; court conditioned denial of receiver on funds being deposited to cover depositors; management intends to reorganize under a new name.
Newspaper Excerpt: At a meeting of the directors of this bank, held this day, it was resolved to place the bank in liquidation. All depositors will be paid in full on demand, and you are requested to withdraw your deposit without delay.
Source: newspapers

3. December 11, 1883 Other

Newspaper Excerpt: The Produce bank, 59 Barclay street, has decided to go into liquidation and reorganize under another name.
Source: newspapers

Newspaper Articles (6)

1. December 9, 1883 The Sun New York, NY

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WINDING UP THE PRODUCE BANK.] Speedy Action to Avoid Receivership-A New Bank to be Started. A suit has been begun by the AttorneyGeneral for the dissolution of the Produce Bank of this city and for the appointment of a receiver. It is charged that in July last. when the affairs of the bank were examined by the Superintendent of the Banking Department. it was found that its capital of $125,000 had been reduced by impairment $26,482.07. and that the bank had failed up to Nov. 30 to make good the deficiency. The case was before Judge'Lawrence yesterday afternoon upon a motion for the appointment of a receiver. It was alleged in opposition to the motion that the bank was prepared to pay all its depositors on demand. the amounts due them being not more than $150,000; that the appointment of a receiver would ruin the bank. and postpone the payment of depositors for two years, and that the capital has been reduced to $100,000 and the deficiency more than made up. Judge Lawrence denied'the application. provided that, as had been proposed. there be paid to the bank on Monday the amounts at that time due to the entire deposit account. and that such amount be held as a separate trust by the bank to pay its depositors on demand. The directors at once held a meeting. and decided to put the bank in liquidation. In order to comply with the agreement made in court, the bank deposited with the Continental National Bank funds and securities sufficient to meet its liabilities to depositors, amounting to $154.000. A notice was mailed to each depositor Inst evening announcing the decision of the Board of Directors, and stating that all depositors would be paid in full. and requesting them to withdraw their deposits without delay. The troubles of the bank date back several years. and arose from large advances made to Contractor Docker in connection with work upon the Riverside Park. The bank received as security an assignment of Decker's claim against the city for $286,000. Of this amount the city has paid $108,000. and $178,000 has been in dispute. Recent conferences between the city officials and the officers of the bank resulted in A proposition from the former to compromise the claim for $100,000. The bank held out for $125,000, and the matter is still in statu quo. A director of the bank said yesterday that if the bank should accept the amount offered by the city its stockholders would receive 60 cents on the dollar, out that if the full amount of the claim could be collected the bank would show a handsome surplus. The bank. he said. had not lost $1,000 in the last two years. Its business has decreased owing to its complication with the city. It was subject to a run about two years ago on the same account. A banker conversant with the affairs of the institution said last evening that the bank could have obtained a settlement of its claim against the city a long time ago had its management seen flt to utilize potent political influence. but. feeling that the entire claim was legitimate, it had declined to do so. The capital of the bank is $100,000. It made its clearances through the Continental National Bank. for which reason that institution was selected ns the depository of its assets to an amount sufflcient to protect its depositors. President Randolph of the Continental Bank said that he had examined the affairs of the Produce Bank. and was convinced that it could have continued in business had the claim against the city been settled in full. One of the large stockholders said that a now bank would be started at once in the same locality by the stockholders of the Produce Bank to be known as the Washington Market Bank.

2. December 9, 1883 New-York Tribune New York, NY

Article from New-York Tribune, December 9, 1883

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A BANK'S CAPITAL IMPAIRED. RECEIVER ASKED FOR, BUT NOT NAMED. A THE PRODUCE BANK GIVEN A DAY OF GRACE-ITS DEPOSITORS TO BE SECURED. An order was issued on Thursday by Justice Lawrence, of the Supreme Court, directing the officers of the Produce Bank, at Barclay-st. and College place, to show cause why the bank should not be dissolved and a receiver appointed. Yesterday Deputy Attorney-GeneralJohn C. Keeler moved for the appointment of a receiver. He stated that in July last, Bank Superintendent Paine had reported as the result of an examination of the bank that its capital stock, which was $125,000, had been impaired to the amount of $26,482 0 The bank was ordered to make this good, but had not done so, and the suit had therefore been brought. Mr. Keeler added that a further examination in November had shown an impairment of the capital to the extent of $81,000. John L. Calwadader, in opposing the motion, said, in behalf of the bank, that the institution had made good the alleged deficiency by reducing its capital from $125,000 to $100,000; that a mistake of $10,000 had been made by the examiner; that certain assets had increased in value, and that the bank was now in a proper condition to do business, if left alone. It owed $154,000 to depositors (of whom there are about 400) and it had no other creditors except the Continental National Bank; and he and the directors of the Produce Bank were prepared to rescue it by putting in $154,000, and wo ild ask the depositors to call for their money tomorrow. Mr. Cadwadader then read a letter from Mr. Paine, who stated that he did not object to the plan proposed. namely, to deposit in the bank the amount due depositors (about $156,000) by to-morrow, and to inform them by circular to get their deposits, the money to remain subject to their call until all the deposits were paid. Several affidavits were then read. In one C. H. Pendergast, the president of the Produce Bank, said that in making up the alleged impairment of the capital, $10,000 was an error and should not have been included. The deficiency, later, was much more than paid, $25,000 being added to the assets and property of the bank between July and November. Mr. Pendergast added that without the appointment of a receiver all of the debts and liabilities of the bank could be absolutely discharged, while the appointment of a receiver would be fatal both to the depositors and the creditors of the bank. C. C. Baldwin, a director of the bank, stated that the bank was prepared to pay on demand all of its deposits, amounting to about $150,000. Edmand D. Randolph, president of the Continental National Bank, in his affidavit stated that to P ace the Produce Bank in the hands of a receiver would be injurious to the depositors, stockholders and creditors. Mr. Keeler said that the affidavits referred to the July examination, and not that of November, in which a deficiency of $81,000 wasdiscovered that the reduction was not properly carried out; and that a receiver should be appointed, because only the depositors and not the stockholders (some of whom have protested against the reduction of capital) would be benefited by the paying in of $154,000. Justice Lawrence denied the motion for -the appointment of a receiver on the condition that money to pay the depositors should be paid into the Produce Bank to-morrow morning. The following notice was sent to the depositors last night: At a meeting of the directors of this bank, held this day, It was resolved to place the bank in liquidation. All depositors will be paid on full in demand, and you are requested to withdraw your deposit without delay. It is understood that the Continental National Bank. in accordance with the statements of its officers and the order of the court, has supplied the money to pay the depositors on demand. President Randolph said yesterday The Produce Bank has assets amply sufficient to pay its deposits and, I think, about 60 per cent of its stock. I have had occasion to inquire into the affairs of the bank several times and I am satisfied that my estimate is not far wrong. We simply purpose to save the bank from wreck. and in paying the depositors this bank is fully protected from loss. The Produce Bank simply goes into voluntary liquidation. R. T. Woodward, of Woodward, Baldwin & Co., one of the directors of the Produce Bank, said that the stockholders would receive not less than 60 per cent. He added There has been at no time any question in regard to the ability of the bank to pay its depositors. Since the examination in July, when we were told that the bank was behindhand, there has been a gradual withdrawal of deposits, 80 that now they are only about $154,000. If the bank should receive from the city the full amount of its claim, it would be able to return to its stockholders considerably more than 100 cents on a dollar. The Produce Bank, several years ago, advanced large sums of money to the contractor on the Riverside Park on assignment of his claims for work against the city. The full amount due from the city is said to be about $260,000. The bank has offered to settle the matter for about one-half, and tho city has offered to pay $100,000, but no agreement has yet been reached. will he called the Washing-

3. December 9, 1883 New-York Tribune New York, NY

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TWELVE PAGES. THE NEWS THIS MORNING. FOREIGN.-Several ports of the Hovas in Madagascar have been destroyed by the French fleet. The Papal organ in Rome censures certain The Crown Prince on takpriests in Ireland. ing his departure from Madrid left gifts amounting A Belgian engineer has to 75,000 pesetas. been arrested for the attempt to murder M. de LesThe Earl of Dunraven is dead. It seps. is reported that another meeting of the Emperors of Germany, Russia and Austria will be held. Domestic.-Several Democratic members of Congress yesterday urged the President to take some step to aid Patrick O'Donnell, the slayer of President Capen, of Tufts College, in Carey. his annual report states that it has been deemed inadvisable to admit women to that college. Père Hyacinthe arrived in Boston on Friday night. William Green, of Anderson County, Tennessee, died yesterday from a mad dog's bite received A fire in a building on Federal-st., in June. Boston, yesterday, damaged property to the amount The trial of James Nutt, for of $126,000. killing N. L. Dukes, will begin at Pittsburg on The argument for the defence in January 7. the Walton Dwight insurance case was closed at Norwich yesterday. CITY AND SUBURBAN.-Extensive frauds in the letting of city contracts have been discovered, by which the city has lost $6,000,000 within a few Six men and a boy who were rescued from years. the wrecked bark Benefactress arrived here yesterday ; the other members of the crew, fifteen in number, are believed to have been lost. An application for a receiver for the Produce Bank, whose capital is impaired, was denied. The funeral of Mrs. Dillon took The New-York Petroleum Exchange place. A tug-boat was held two lively meetings. sunk in the East River by an Erie Annex boat. The police captains sent a letter to Justice Murray. Gold value of the legal-tender silver dollar Stocks were dull [4121₂ grains), 85.39 cents. and higher, and closed firm. THE WEATHER.-TRIBUNE local observations indicate cloudy weather, with light rains, followed by fair and clear weather. Temperature yesterday Highest, 54°; lowest, 48° ; average, 52°.

4. December 10, 1883 New-York Tribune New York, NY

Article from New-York Tribune, December 10, 1883

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THE TRIBUNE. Yesterday's issue of THE SUNDAY TRIBUNE was a particularly valuable and interesting paper. It contained the usual special cable letter, correspondence from San Francisco, Chicago, St. Louis, Boston and Phil, adelphia, London letter from G. W. 8., book reviews, musical review of the week, art news, society topics, "London Gossip," Broadway Note-Book detailed exposure of gigantic frauds in the Public Works department of this city, letters from THE TRIBUNE'S Parts correspond ence about France, Spain and Germany, letter from an eminent Japanese savant describing the people of Corea. their manners and customs, "Pulpit Sketch" of Monsignor Capel, continuation of "Jack's Courtship," and much other matter of varied and general interest. The following is a brief summary of leading news topics: FOREIGN.-Several ports of the Hovas in Madagasear have been destroyed by the French fleet. The Papai organ In Rome censures certain priests in Ireland. The Crown Prince OD taking his departure from Madrid left gifts amounting to 75,000 pesetas. A Belgian engineer has been arrested for the attempt to murder M. de Lesseps. The Earl of Craven is dead. It is reported that another meeting of the Emperors of Germany, Russia and Austria will be held. DOMESTIC.-Several Democratic members of Congress on Saturday urged the President to take some step to aid Patrick O'Donnell, the slayer of Carey. President Capen, of Tufts Colleve, in his annual report states that it has been deemed inadvisable to admit women to that college. Père Hyacinthe arrived in Boston on Friday night. William Green, of Anderson County, Tennessee, died on Saturday from a mad dog's bite received in June. A fire in a building on Federal-st. Boston, on Saturday, damaged property to the amount of $126,000. The trial of James Nutt. for killing N. L. Dukes, will begin at Pittsburg on January 7. The argument for the defence in the Walton Dwight insurance case was closed at Norwich on Saturday. CITY AND SUBURBAN.-Extensive frauds in the letting of city contracts have been discovered, by which the city has lost $6,000,000 within a few years. Six men and a boy who were rescued from the wrecked bark Benefactress arrived here on Saturday; the other members of the crew. fifteen in number, are believed to have been lost. An application for a receiver for the Produce Bank, whose capital is impaired, was denied. The funeral of Mrs. Dillon took place. The New-York Petroleum Exchange held two lively meetings. A tug-boat was sunk in the East River by an Erie Annex boat. The police captains sent a letter to Justice Murray. Gold value of the legal-tender silver dollar (412)2 grains), 85.39 cents. Stocks were dull and higher. and closed firm. Coples of the paper may still be obtained at the office of THE TRIBUNE or by mail. Price 3 cents.

5. December 11, 1883 Daily Globe Saint Paul, MN

Article from Daily Globe, December 11, 1883

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Business Failures. BALTIMORE, Md., Dec. 10.-Christian F. Richter, builder, assigned. The bond of assignee is $5,000. NEW YORK, Dec. 10.-The Produce bank, 59 Barclay street, has decided to go into liquidation and reorganize under another name.

6. December 13, 1883 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, December 13, 1883

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Brief News Items. Robert A. Garlick. a prominent merchant of Ontario, died suddenly Tuesday night from blood-poisoning. caused bv running the sharp point of a paper-file hisarm. A grand romeria, or people's pic-nic, which was held in Havana, Cuba, recently, lasting three days, is the theme of much comment. It was for a charitable purpose, and over $30,000 in paper money was realized. In view of the gratilying results another great romeria is proposed for an early day. Henry W. Shaw, who attempted to dispose of a large lot of postage-stamps, was arrested at Williamsport, Pa., yesterday and lodged in jail on suspicion of having stolen them. He also had in his possession a quantity of small silver coin. The stamps were chiefly new twos, with some ones and twos. Maude Hasslasher, a pretty little girl of seven, has been sent to a Protestant institution in New York by the Society for the Prevention of Cruelty to Children. She is the daughter of an opera singer known on the stage as Marie Gurney, who has recently been divorced from her husband. The poor child was deserted by both her parents. A special from Las Vegas, New Mexico, says: Tuesday morning, while digging for the foundation for the new court-house, the laborers, who were old miners, discovered signs of pay dirt." They immediately gave it a trial, which resulted in showing that they had struck a rich deposit. Great excitement prevails in thetown, and everybody is staking off claims. Mr. G. E. Woodberry, of Beverly, Mass., being engaged on a life of Edgar A. Poe for the American Men of Letters Series," is desirous of obtaining the loan or copy of any autograph letters by Poe, however unimportant they may seem. Many such letters are believed to exist in private collections. None will be published without the explicit consent of the owner. Five mounted men raided the town of Bisbee, Arizona, Saturday night. They killed J. C. Tappiner, J. A. Nolly, and D. A. Smith, and wounded Mrs. Roberts. Afterwards they robbed Castenada's store of $1,200. The whole was accomplished so rapidly that no attempt at defence was made. Later advices state that the men are believed to be the same engaged in the robbery of the Southern Pacific train at Gage Station on the 17th ultimo. The robbers fled in the direction of Sonora. The directors of the Produce Bank of New York, which is at 59 Barelay street, have decided to place the bank in liquidation, and a notice has been sent to depositors to draw their balances, which would be paid in full and close their accounts. Mr. Suydam, the cashier of the bank, said yesterday that its clearing-house representative, the Continental National Bank, was the only creditor besides the depositors, and that the assets of the bank were ample to pay all demands in full. Thebank will be reörganized under another name. A special from Delphos, O., says: Monday night a large number of masked men appeared at the jail and took the keys of Martin Barrett, the watehman. They then proceeded to the cells of Rost and Hoffechter. who were arrested for burglary, and after securing them demanded that they give the names of their confederates in the numerous burglaries which have recently been committed, or be hanged. They refused: whereupon they were suspended for a time. When nearly dead they were let down, and again asked to give the names of their confederates. They said they could not, and they were again suspended, and the mob went away. The watchmen cut the men down, but they are still in a critical condition. Nearly all their companions have left town."