16626. Tradesman's Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 4, 1898
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
9a69a4bb

Response Measures

None

Description

Articles (Oct 1898) report Tradesman's Bank of New York suspended (article dated Oct 5 says it suspended 'yesterday') and evidence of problematic insider loans by President McNaughton; subsequent reports place liabilities and describe the bank as having failed. No explicit contemporaneous description of a depositor run is given, so this is classified as a suspension that resulted in permanent failure/closure.

Events (2)

1. October 4, 1898 Suspension
Cause
Bank Specific Adverse Info
Cause Details
National examiner discovered a recent $400,000 loan to President McNaughton secured by wool exchange shares and other suspicious disbursements; indicative of insider malfeasance and adverse bank-specific information.
Newspaper Excerpt
President James F. McNaughton, of the Tradesman's bank, which suspended yesterday, made the statement to-day that the bank is solvent.
Source
newspapers
2. October 15, 1898 Other
Newspaper Excerpt
The liabilities of the Tradesman's recent bank in New York, that failed recently, are now placed at $3,800,000.
Source
newspapers

Newspaper Articles (3)

Article from The Saint Paul Globe, October 6, 1898

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Article Text

FILLED WITH TREASURE. Bank Examiner Found $600,000 in Tradesmen's Bank Vaults. NEW YORK, Oct. 5.-President James F. McNaughton, of the Tradesman's bank, which suspended yesterday, made the statement ti. day that the bank is sclvent. National Bank Examiner Kimbali say3 that the has discovered that a loan of $400.000 of the bank's money was made quite recently to President McNaughton. who gave as collateral a number of wool exchange shares. In addition to this sum Mr. Kimbail said $8,500 was doled out to two individuals one a member of *he wool exchange, but whose names were not given. President McNaughton asserts that the clearing house committee's investigation into the status of the Tradesmen's bank was "a farce-a deliberate attempt to throw the bank down." About $600,000 of cash was found by the examiner in the bank's safes. TO CURE A COLD IN ONE DAY, Take Laxative Bromo Quinine Tablets. All druggists refund money if it fails to cure. 25c The genuine has L. B. Q. on each tablet.


Article from Perrysburg Journal, October 15, 1898

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Article Text

of a yacht. Trains collided at Indianola, Neb., Sol Brace, exgineer; E. J. Walters, Areman, and and William McCarl, brakeman, were killed. Essie Jackson, aged 10 years, was stoned to death by boys at Shelbyville, Ind. Wilkinson, six privates, one Indian and 30 at in the fight with the killed Maj policeman Indians Indians were island, Minn. Fighting was still and Gov. In Secretary Alger graphed Bear progress, Clough asking volunteer tele- him authorize the use of the disbanded regiments to just about to be for the protection of the frontier. The Bankers' & Merchants' Mutual Fire Insurance company at Liberty, Mo., Senator has assigned. John T. Morgan, of Alabama, him on the president to inform called of the success of the Hawaiian commission. The Rock River Methodist conference session in Chicago declared for 200 to 6. equal lay in representation by a vote of The liabilities of the Tradesman's recentbank in New York, that failed ly, are now placed at $3,800,000. session in Grand Rapids, Mich., the In board of foreign missions, of its American the first time in the 90 Margaret J. years history, for elected a woman, member. of Minnesota, as a Evans, exchanges at the leading clearThe in the United States during ing houses week ended on the 7th aggregated the $1,466,580,990. the against $1,240,877,751 compared week. The increase in 1897 with previous the corresponding week was 4.7. were 169 business failures days in There United States in the seven week the the 7th, against 195 the of 1897. ended previous on and 212 in the corresponding period D. Saxton, the only brother murGeorge William McKinley, was O., and of Mrs. in the street in Canton. friend dered Anna George, an intimate arrest, Mrs. dead man, was under fatal charged of the with having fired the shots. Burns, Michael Brennan in a burn- and John unknown men death Mass. two car at Northampton, New ing freight flood in the Hoosac valley, and A caused damage to buildings at $100.000. York, tracks estimated of Delrailway late Thomas F. Bayard, $75,000. aware, The left an estate valued the at officials Reports department received by in Washington Minneof the war Indian outbreak in and from the of a reassuring character may be sota they were now feel that the uprising silver regarded numbers as over. of counterfeit $100 in Large certificates were discovered Francisco. San C. Williams was hanged of John at Salem, Alfred Mass., for the murder an Italian farmer. Gallo, volume of business throughout heavy. The continues very baseball the country percentages of the for the The in the National league Boston, clubs on the 9th were: .611; week ended .650; Cincinnati, Philadel.688; Baltimore, Cleveland, .552; Chicago, .504; York, .507; Pittsburgh, phia. .521; Louisville, New .452; Brooklyn, 262. .370; .486; .340; St. Louis, diWashington. Chaney shot and killed and his then vorced Jessie wife at Garrett, Ind., his own life. ook Miller, who raised the United to San Admiral Hawaii, returned Francisco States flag on over his flagship. the Philadelphia. J. Corbett issued a meet challenge him i a to James contest any man of in limited the world rounds to or to a finigh. annual report of Commissioner A. Jones The Indian Affairs William advancement in the shows of a general steady "nation's wards." the condition and of Mrs. McKinley funeral arrived of in President Canton, O., to attend who was the murdered. George D. Saxton, the beach front Twenty Atlantic buildings City. N. on J., occupied were burned, by 50 business in establishments, the loss being $200,000. and Mattie Mahoney Ind., Howard shot to Clark death near Rockport, Ky., while were officers from Owensboro, murder. by resisting arrest and for Edward Smellen- O., lost Loren poultry Lake dealers at Payne, men in New $1,000 berg, to "green goods" have York. unionists in large agitation cities in Trades an active more effective favor inaugurated of devising some their opponents method of fighting than boycott. the Frank Daniels and in Joe a barn JunEmil were and burned to death kle near Green Bay, Wis. in Omaha, Neb.. killed and ten and 6 Harry Trains Jones, other colided persons of Chicago, were was seriously e destroyed injured. Hotel Grand at Leeds, men Ia., were was The by fire and two burned to death. g depopulated Yellow fever Miss., has and nearly persons varge of who starva- rea main Jackson, there are on the tion. PERSONAL AND POLITICAL


Article from The Paducah Evening Sun, September 3, 1908

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Article Text

How He Allowed Himself to Be Loaded Up With Such Paper is Mystery. VICTIM OF SOME SHREWD MEN New York. Sept. 3 Although Russell Sage was held UD to his generation as a mode; of caution and astuteness in his stock and bond dealings and in his loan business. It was disclosed that shrewd men succeeded in loading him up with about $1,071,000. par value, of boads and 18,100 shares of stock and scrip which are worthless. Besides there are some "open accounts" upon which the executors can realize little or nothing. Mining shares, railroad. bank and trast/company issues, shares in warehouse and grain elevator concerns. 9a raflroad construction companies and firms, industrial concerns and steal companies. improvement shares. electrie vallroad stock, land grant scrip. defanited state bonds of Georgia and North Carolina and defaulted town bonds are among the securities found in Mr. Sage's safe deposit vaults. Mr. Sage's stock and bond register was kept by Charles W. Osborne, con fidential man during Mr. Sage's lifetime, and now one of his three exeentors. Reminders of Old Crazes. The securities of nominal value owned by Mr. Sage comprise a sort of Index to the periodic financial spasms that have swept over the United States since civil war times. The defaulted state bonds are a reminder of the era when the federal government, the commonwealths and lesser political entitles issued their paper to provide funds for ratiroad building. The worthless rolling mill securities were put cut during a craze for rolling steel rails. Grain elevators were an old-time favorite invostment. Rafroad shares are remnants of foreclosures which wiped out the equity behind the shares. There are listed $60,000 of North Carolina bonds, some Issued to promote railroad construction. and some antebellum paper of that commonwealth. There are $140,000 of Georgia 7 per cent gold bonds due in 1894, upon which the unpaid interest is equal to or greater than the principal. These bonds have been repudiated by the states. Whether Mr Sage bought them at their face value or had them left on his hands as collateral for unpaid notes. or bought them at a fraction of their face value in the speculative expectation that the courts might some day compe payment. is conjectural. Won By Name of Gould. Fifty shares of the Produce Exchange Trust company's provisional receipts have a nominal value. according to the appraisement. After it was organized the trust company's $2,500,000 of capital and $2,500,000 of surplus became tied up in syndicate loans, time loans. etc. Edwin Gould and the late General Samuel Thomas reopened the company but the provisional receipts merely represented so many certificates of past years of indebtedness. The trust company has since been merged with another. Mr. Sage's subbscription to Its shares was probably induced by the name of the son of his old friend. Jay Gould. Nineteen shares of the MarshaH Consolidated company have a value of $2.83 The Tradesman's bank and New York wool warehouse went down together about ten years ago. Mr. Sage held 500 shares of the bank) stock and 200 shares of the warehouse stock. Stock in Wrecked Road. Two railroads have been sold by the executors since Mr. Sage died. on July 22. 1906. One was a favorite possession of the financier. although he had to make up a deficit yearly to keep it in operation. It was the Poughkeepsie and Eastern At one time Mr. Sage scared the Vanderbilts by threatening to connect this and the New York and Northern. now the Putnam division of the New York Central, and by crossing the Poughkeepsie bridge, give the Erie an entrance to Manhattan Mr. Sage owned all the $500,000 of bonds and $500,000 of stock of the Poughkeepsie and Eastern and the executors sold the road for $350,000 The financier was president of the Minnesota Railway Construction com pany, which built a line which the Chicago. Milwaukee and St. Paul gobbled up. The construction company went into the hands of a re-