16630. Tradesmen's Bank (New York, NY)

Bank Information

Episode Type
Run → 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
50194324

Response Measures

Full suspension, Books examined

Other: Bank subsequently placed in liquidation; Wool Warehouse receiver appointed; Clearing House closed Tradesmen's Bank Oct 4, 1898.

Description

Newspaper accounts (Oct 1898) describe heavy withdrawals and instability followed by action of the Clearing House to close/suspend the bank (Oct 4, 1898). The failures are attributed to large exposures to the Wool Exchange/Warehouse concerns run by the Macnaughtan brothers (bank-specific adverse information). The bank was later put into liquidation by stockholders (January 1899), so suspension led to permanent closure. I corrected minor name variants (Tradesman's National Bank / Tradesmen's Bank) and used dates from contemporaneous reports.

Events (3)
1. October 4, 1898 Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals triggered by the bank's heavy exposure to the Wool Exchange/Warehouse enterprises run by the Macnaughtan brothers; deposit withdrawals about $500,000.
Measures
Notified public; notices on doors; Clearing House/Directors meetings to decide action; attempted investigation and suspension of payments.
Newspaper Excerpt
the suspension yesterday had no effect upon the money market... the suspension of the Tradesmen's Bank is attributed ... been within which last month withdrawn $500,000 depositors have mainly by Boston Macnaughtans
Source
newspapers
2. October 4, 1898 Suspension
Cause Details
Closed/suspended by the Clearing House committee because of its large holdings of Wool Exchange/Warehouse paper and heavy withdrawals; committee deemed it advisable to close and investigate.
Newspaper Excerpt
On Oct. 4 the Tradesmen's bank was closed by the Clearing House.
Source
newspapers
3. January 13, 1899 Other
Newspaper Excerpt
At 13th inst it was decided to go into liquidation. Stockholders will realize only 25 cents on the dollar. Depositors will be paid in full. Mr. Bates, of the Liquidating Committee, said ... a million dollars had been lost somewhere. ... the Tradesmen's Bank was to go into liquidation and not attempt a reorganization (Jan. 1899).
Source
newspapers

Newspaper Articles (8)
1. October 5, 1898 New-York Tribune New York, NY
Article from New-York Tribune, October 5, 1898

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out. not received, we know nor was of the there condition any money of depositors the paid bank. will it seems From paid all more in full. than The probable action that its of the sales. all Wool as announced Exchange feel be in deciding week. caused not to the continue depositors and of there the has bank been to a last shaky over withdrawal its condition. of accounts since then. but it was a cansteady not state the total hurt amount the withdrawn ank severely. The nor Wool will large Exchange sum. does and it not as owe know, the bank from anything. the closing organized of the it institution. suffer. so The far Wool Exchange decided was to discontinue to them conduct wool devote sales. its attention It has to its property, Building. which in consists and the largely Exchange of the has Wool an equity Exchange of the of fully bank $500,000. which which There are many of the accounts good for 100 cents nothing on the the dollar. officers hope recovered. There will may prove Among be some these on which is Co., the account of Boscan the ever late be firm of Sawyer, Manning line of discounts & with of the ton. bank. This firm As this to had failure. the a large reports I would that say the nothing that bank it to was was do with hard nothing the hit at present by all serious. embarrassment and has had of the concern. COVERED WITH NOTICES. 3 m. the outside doors of these the bank were were anBy p. with notices. Some of and local covered nouncements from out-of-town banks Tradesthat checks drawn on presented the at depositors Bank would be honored if that there men's banks named. It was reported meeting of other be in the course of the day a making would directors to decide the question of in the the impairment of the bank's capital Late good that it might continue in business. office order afternoon it was given out at had the been in the & Hirsch that there been of but that no such taken an adjournment Blumenstiel a pending meeting. action until trade to-day. had said prominent member of the wool bank's A that the announcement of the He reyesterday was a complete surprise to him. had purclosing the fact that a business friend called some of the bank's stock last spring. Bank chased to the date when the Clinton One just absorbed prior by the Tradesmen's Bank. friend was the principal reasons. he said. that his the rank of was the splendid showing of invested in the total deposits. which were then more than $4,000,000. According to the statement issued by the bank folJuly 1. its officers and directors are as David on James Macnaughtan. president: W. Clawson, lows: vice-president: James cashier: H. cashier: Bates, John G. Zabriskie assistant Augustus C. A. Brown. Jerome E. Bates, Julius Bechstein. Charles R. Kent. David M. Look. Kaufmann, E. Pitkin. James H. Swan Thomas B. Flint. David Rowland, Hunt. William John A. Frederick Clarence Whitman and reTweedy, Woolverton. Mr. Brown and Mr. Whitman signed. however, some time ago. THE BANK'S CORRESPONDENTS bank has the following correspondents: The National Bank, Chicago: National NaBank Drovers' of the Republic, Boston: Columbia oldtional Bank, Washington. It is one of the banks in the city, having been established where est 1823. It was first in Chatham Square, in did business in a small building. which it oc- reit with a white marble structure now From placed a well-known Square it moved to it Chatham cupied by pawnbroker. Broadway, ago where for many years. About five years West it was possession of its present quarters has in been took James Macnaughtan, who for nearly four years. its the wool business. and the of his bank has Wall ously Broadway. president business in remarked been the was with bulk in previ- of the That fact, it was wool was a source of more likely to Street bank men. yesterday, is the occupations thrive weakness. the of more for its widely a distributed are the make statefor men do not want to directors customers, of their affairs to boards of composed ments largely of their business competitors. in enMacnaughtans have been active Boston, deavoring The to make this city, instead of of the wool trade, and the suspenthe centre of the Tradesmen's Bank is attributed between by sion of its officers directly to the rivalry result one dealers of the two cities, as one the aggregating from of month been within which wool the deposits last withdrawn $500,000 depositors. have the institution. mainly by Boston in Macnaughtans have been interested were The enterprises relating to wool. They of many in forming the Wool Exchange Allan Macnaughtan, as already the New-York Wool president: instrumental which Warehouse said. capital Com- was a wwJJersey corporation. with a of which concern of is president and James pany. naughtan $1,000,000. William Wool and Record Allan Macare directors: the of which Allan and the Publishing tan Macnaughtan was president Company. Tradesmen's Macnaugh- paper Bank backer. and which got out a publication Safe Deposit Company, in Macnaughtan were and chants' which was Allan the suspended recently: directors, which have the and James Mer- been the Wool Club. All these institutions housed in the Wool Exchange _building Last winter the Tradesmen's Bank secured control of the Clinton Bank, a State institution. NO EFFECT ON THE MONEY MARKET The suspension yesterday had no effect upon the money market, and no other bank or instiis likely to suffer because of it. The not a lender of money for bank tution is differ Stock Extransactions. Opinions as to the which the depositors will some that payment will in change persons amount saying receive, be made full, and others declaring that not more than 80 cents on the dollar will be paid. The capital. according to one authority, will amount to between $250,000 and $300,000. No evidence of defalcation or misappropriation of funds was discovered. . THE NEWS IN WASHINGTON Washington, Oct. 4 -W. H. Kimball, bank examhas been placed in the National Bank of that which iner Tradesmen's at New-York, charge city, to-day. of failed to clear at the Clearing House An official of the bank had a conversation with Dep.

2. October 13, 1898 Mineral Point Tribune Mineral Point, WI
Article from Mineral Point Tribune, October 13, 1898

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4.3 The battleship Illinois was launched at Newport News. In Mississippi and Louisiana yellow fever is spreading. The triennial Episcopal council opened in Washington. The Tradesman's National Bank of New York suspended. Massachusetts democrats indorsed the Chicago platform. The Tradesmen's Bank closed its doors in New York. The funeral of the Rev. Dr. John Hall took place in New York. Robert Rennert, a leading hotelkeeper of Baltimore, is dead. The big deal for a national tobacco trust seems to have collapsed. Dr. W. F. McLean died suddenly at Elyria, Ohio. He was 65 years old. Richard Katsenmayor, the leader of German society in New York, is dead. James R. Keene is said to have made $1,000,000 in American tobacco. Several millionaires are likely to run for congress in New York this fall. Prescott E. Longley, a veteran hotel man of Wisconsin, is dead at Janesville. Bertha Beilstein, Allegeny, Pa., killed her mother and then committed suicide. Col. Roosevelt paid $1,005 into New York City's treasury, his personal tax for 1898. The city of Colorado Springs was visited by a fire which did $1,000,000 damage. The woolen mills owned by ex-Gov. Sawyer of New Hampton made assignments. A combine of shipbuilders and gun and armor plate manufacturers is under way. Colorado middle-of-the-road populists nominated Simon Guggenheim for governor. The New York court of appeals decided against the Gould heirs in the inheritance-tax case. The United States, Great Britain and Japan practically control the coal supply of the world. Richard Croker is said to have secured control of the New York state democratic committee. Bodies of those who lost their lives in the Wisconsin forest fires are beginning to be found. William L. Dean, treasurer of Vassar college, died suddenly of heart disease, aged 57 years. Old Nance Guilford was held in a London court to await requisition papers from Connecticut. Rev. Jabez Fox, who was well known in the west in the anti-slavery agitation. died at Washington A. W. Lyman, a well-known newspaper man, who served the Associated Press in Cuba, died in Brooklyn. The September report of Wisconsin national banks shows a falling off of nearly $2,000,000 in deposits since July, : The forest fires in Colorado and i Wisconsin have been checked by ( rains Light snow also fell in Colorado I Two thousand armed miners are on : guard at Virden Ill., to prevent the ) importation of negro miners from - Alabama. Louis Landerman of Fond du Lac, ' Wis. was accidentally shot while hunting ducks It is doubtful whether I he will recover "Coin" Harvey has been made general manager of a new ways and means committee of the national dem) ocratic committee. Miss Edna Smith, an heiress of St. Paul, Minn. has been spirited away from her home and is being held at La Grange, Ind. A large gathering of Mormon work-

3. October 13, 1898 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, October 13, 1898

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DOMESTIC. Chicago October wheat, 631/4;; silver, 60% Mrs. Caroline Miskel Hoyt, the actress, is dead. The battleship Illinois was launched at Newport News. In Mississippi and Louisiana yellow fever is spreading. The triennial Episcopal council opened in Washington. The Tradesman's National Bank of New York suspended. Massachusetts democrats indorsed the Chicago platform. The Tradesmen's Bank closed its doors in New York. The funeral of the Rev. Dr. John Hall took place in New York. Robert Rennert, a leading hotelkeeper of Baltimore, is dead. The big deal for a national tobacco trust seems to have collapsed. W. F. McLean died suddenly at Ohio. He was years of Elyria, Richard Dr. Katsenmayor, 65 York, the leader is dead. old. German society in New James R. Keene is said to have made $1,000,000 in American tobacco. Several millionaires are likely to run for congress in New York this fall. Prescott E. Longley, a veteran hotel man of Wisconsin, is dead at Janesville. Bertha Beilstein, Allegeny, Pa., killed her mother and then committed suicide. Col. Roosevelt paid $1,005 into New York City's treasury, his personal tax for 1898. The city of Colorado Springs was visited by a fire which did $1,000,000 damage. The woolen mills owned by ex-Gov. Sawyer of New Hampton made assignments. A combine of shipbuilders and gun and armor plate manufacturers is under way. Colorado middle-of-the-road populists nominated Simon Guggenheim for governor. The New York court of appeals decided against the Gould heirs in the inheritance-tax case. The United States, Great Britain and Japan practically control the coal supply of the world. Richard Croker is said to have secured control of the New York state democratic committee. Bodies of those who lost their lives in the Wisconsin forest fires are beginning to be found. William L. Dean, treasurer of Vassar college, died suddenly of heart disease, aged 57 years. Old Nance Guilford was held in a London court to await requisition papers from Connecticut. Rev. Jabez Fox, who was well known in the west in the anti-slavery agitation, died at Washington. A. W. Lyman, a well-known newspaper man, who served the Associated Press in Cuba, died in Brooklyn. The September report of Wisconsin national banks shows a falling off of nearly $2,000,000 in deposits since July. The forest fires in Colorado and Wisconsin have been checked by rains. Light snow also fell in Colorado. Two thousand armed miners are on guard at Virden, Ill., to prevent the importation of negro miners from Alabama. Louis Landerman, of Fond du Lac, Wis., was accidentally shot while hunting ducks. It is doubtful whether he will recover. "Coin" Harvey has been made general manager of a new ways and means committee of the national democratic committee. Miss Edna Smith, an heiress of St. Paul, Minn., has been spirited away from her home and is being held at La Grange, Ind. A large gathering of Mormon workers in the eastern states WAS begun in a bower on South mountain, near Chambersburg, Pa. Henry E. McDermott, assistant professor of chemistry at Columbia University, New York, committed suicide because of ill health. Jesse James, son of the noted outlaw. is said to be involved in a train robbery in Kansas. He keeps a cigar stand in Kansas City. Every vacancy in the medical department of the navy has been filled, and there were hundreds of applicants for the positions. The New York independents declare they will nominate Colonel Roosevelt for governor in spite of his letter declining their nomination. Striking miners from Pana, Ill., attacked the barracks of negro miners at Washington, Ind., and by threats compelled them to leave town. Ex-Mayor Robert R. Gibons, one of the pioneers of Bureau county and for many years prominent in political circles, died at Princeton, Ill. Elbridge T. Gerry and Robert Goelet have become citizens of Rhode fear in populistic Island, it legislation is stated, because New they York. A dispatch from Chattanooga says that the southern iron funnosse

4. October 17, 1898 Vilas County News Eagle River, WI
Article from Vilas County News, October 17, 1898

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DOMESTIC. Chicago October wheat, 63¾c. Ex-Mayor A. Oakey Hall is dead in New York. Mrs. Phoebe Clark Crilley, aged 102, is dead at New York. The late Thomas F. Bayard left an estate valued at $75,000. John Jacob Astor declined to run for congress in New York. The New York Times has reduced its prace from 3 to 1 cent a copy. New York city will build a big ocean bath-house at Coney island. Nearly $5,000,000 will be spent on New York city streets next year. A man in Milwaukee is credited with from a dozen to twenty wives. Ex-Congressman Sherman Hoar died of typhoid fever in Massachusetts. Blanche Willis Howard, the American actress, is dead at Munich, Germany. Most of the Georgia populists seem to have gone back to the democratic ranks. Joseph Simon, republican, was elected senator by the Oregon legislature. The Rev. John L. Scudder of Jersey City has started a dancing class in his church. The liabilities of the ruined Tradesmen's bank of New York are now put at $4,000,000. Hiram S. Maxim was arraigned in New York charged with bigamy and abandonment. Julius Newton, once a power in Wall street, in New York, was crazed by financial ruin. The steamer Amur has arrived at Victoria from Skaguay with about 300 pounds of gold dust. H. Sidney Everett, a son of Edward Everett, died Tuesday at Brighton, England, aged 63 years. Jacob Ulman has been arrested in Troy on the charge of stealing diamonds valued at $450,000. At Fort Collins, Col., Joseph Murray, United States agent in charge of the Pribyloff islands, is dead. The sugar trust and the Arbuckle combination began cutting prices. Sugar fell to five cents a pound. The collections of internal revenue in August, 1898, show an increase over August, 1897, of $11,006,235. Senator Foraker in a campaign speech at Wooster, Ohio, advocated the retention of all the Philippines. Baltimore and Ohio receivers declare they never will be able to discharge the company's obligations. Governor Tanner has ordered the sheriff to command the strikers to leave Virden and to disarm them. Oxford, Miss., reports fourteen cases and six deaths from yellow fever. Aid is asked to feed 600 negroes there. Commissioner Jones, in his annual report, says there are 23,952 pupils being educated in Indian schools. Dore Richardson, the divorced wife of Gen. Cassius M. Clay, was married to Riley Brock, a day laborer. Joseph Corcoran killed himself at Carlyle, Ill., because he accidentally shot Lelia Shade, his sweetheart. Commodore N. L. Weatherby of the Troy Yacht Club and three friends were drowned in the Hudson river. Rev. Dr. Cunningham Geikie, the wellknown religious commentator and historian, is dead. He was 78 years old. Two boys were burned to death near Sanborn, N. D., and two men met the same fate in a hotel at Leeds, Iowa. It is stated that the majority of Allen D. Candler, democratic nominee for governor of Georgia, was about 60,000. Mrs. Margaret J. Evans of Minnesota has been elected the first woman member of the American board of foreign missions. Ralph Johnston, aged 17, the only son of W. K. Johnston, architect, of Chicago, was killed in a bicycle accident at Whitby, Ont. It is announced that ex-Senator David B. Hill will stump New York state for Judge Van Wyck and the democratic state ticket. Gen. C. H. Collis has sent a letter to Mayor Van Wyck warning him against casting inuendoes upon the general's conduct in office. Chicago railroad men and merchants have formed a national anti-ticket-scalping committee to secure congressional legislation. It is reported that the number of lives lost on the Florida, Georgia and South Carolina coast during the recent hurricane was fully 100. The republicans of Massachusetts, renominated Gov. Roger Wolcott and adopted resolutions favoring the retention of all the Philippines. The court of appeals of Kentucky has declared constitutional a statute requiring railroads to provide separate cars for colored passengers.

5. October 28, 1898 Barre Evening Telegram Barre, VT
Article from Barre Evening Telegram, October 28, 1898

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A FAILURE IN WOOL. Another of the Maenaughtan Enterprimes In Receiver's Hands. New York, Oct. 28. - The New York Wool Warehouse company has been placed in the hands of a receiver by Justice Cohen of the supreme court. The application for a receivership was made by William Macnaughtan, the president. The action has been expected ever since the closing of the Wool Exchange and the failure of the Tradesmen's bank. All three of these concerns were managed by the Macnaughtan brothers. James was president of the bank, William of the Warehouse company and Allan of the Exchange. William Macnaughtan asked Justice Cohen to appoint a receiver for the Warehouse company. He made the application as a stockholder owning 82 1/2 shares of the stock, the par value of which is $8,250. The capital of the concern is $1.000.000. The court appointed Frederick W. Day of Elizabeth, N. J., receiver and ordered that he furnish a bond of $50,000 and deposit all funds with the Central Trust company. The Macnaughtans' enterprises, the Wool Exchange and the Wool Warehouse company, were established about three years ago. It was the intention to establish regular semimonthly sales of wool in this city. The scheme was a failure. Wool of late has been of very slow sale, and Boston had the preference. The effort to move the business from Boston to New York was futile. The Wool Exchange abandoned its sales in February and closed up a few weeks ago. The Wool Record, a paper published by the Macnaughtans, suspended publication at the same time. On Oct. 4 the Tradesmen's bank was closed by the Clearing House. While it was generally understood that the bank was solvent it held so much paper of the Exchange and Warehouse company that the Clearing House committee deemed it advisable to close it and have a thorough investigation of its affairs. It is said that among the bank's assets are many thousand shares of the New York Wool Warehouse company's stock

6. November 1, 1898 The Bourbon News Paris, KY
Article from The Bourbon News, November 1, 1898

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Warehouse Company Fails. NEW YORK, Oct. 28.-The New York Wool Warehouse Co. was Thursday placed in the hands of receivers by Justice Cohen, of the supreme court. The application for a receivership was made by William MacNaughton, the president. The action has been expected ever since the closing of the wool exchange and the failure of the Tradesmen's bank.

7. November 3, 1898 Daily Press Newport News, VA
Article from Daily Press, November 3, 1898

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WASHINGTON, Nov. 2.-Comptrol. ler Dawes will appeal from the decision of the New York judge, who held that the sheriff could levy on the assets of the Tradesmens Bank, because a receiver had not been formally appointed. He says if this decision is upheid it will cause heavy losses and endless confusion in the settlement of the affairs of suspended national banks.

8. January 21, 1899 The Democratic Advocate Westminster, MD
Article from The Democratic Advocate, January 21, 1899

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Business Troubles. A dispatch from Lynchburg, Virginia, in January 10, says :-Seven petitions bankruptcy were filed at Lynchburg by L. Roanoke parties, as follows John Kelley, liabilities, $2,038. and assets. $3. $105; Charles D. Keffer, liabilities, W. 457, and estimated assets, $1,770; Knighton, liabilities, $216, and assets $142; Leon Thiery, liabilities. $1,716; W. Murray, liabillties, $1,588; A. liabilities, P. Brown, of Salem, contracted by Brown Robert George Carrie $17,057, Smith, member. $1,035;Mrs. liabilities, Brothers. Merof which petitioner was a chants of Roanoke, Richmond, Baltimore, Lynchburg, Danville and Petersburg are the principal creditors. Mrs. Haskell Pawling, who has conducted the Star knitting mill at Hagaman, N. Y. since the death of her husband. Liahas filed a petition in bankruptey. bilities $140,000, and the assets about $150,000. The failure was precipitated principally by the illness of Mrs. Pawling. is The mill, which employed 175 men, closed dewn. BOSTON, Jan. 11.-The 34th annual meeting of the National Wool Manufacturers Association was held here today. Secretary North's report was an exhaustive review of the year. With all classes of of mills, he said, it has been a year small business, of much anxiety and often of hardship and embarrassment The chief exceptions have been in mills where large orders for army and navy have been obtained, but the extraordinary demands of the Government have failed to exert such influence upon the market as any would ordinarily have followed them. The number of failures and assignments in the wool manufacture have been larger. probably. than in any previous year since the panic of 1857 Justice Truax of the Supreme Court has appointed receivers for Hudnut's Pharmacy Fred at 205 Broadway, New York city, erick F. Anness, President of the eom pany. which is a New Jersey corporation The with a capital stock of $100,000 company obtained an execution last July George Hasting. New York city has failed. Abraham W. and Frederick W. Leggett (A. W. & ) F. W. Leggett, ) cheese com mission merchants at 155 Chambers street. have filed a petition in bankruptey with liabilities 878, 466 and nominal assets $6 W. Leggett. is 83 years old and parener. 195. Abraham has the been senior in business more than fifty years William Strang. proprietor of the Elmer Glass Works. New Jersey. has gone into voluntary bankruptey The failure of William Strang is the biggest financial His crash that ever occurred in Elmer. liabilities will doubtless exceed $40,000. assets which may net or with $20,000 heavy $25,000 Charles M. Surran. a for has also an as Liabilities, $6000: assets, signment. endorser Strang, made deals $7 000. He keeps a livery stable and calves. poultry and eggs Dun's Review. for the 14th instant says Failures for the first week of the year were $1,661,690 in amount manafacturing $496,452 and trading $1.163. 238. Failures for the week have been 318 in the United States The Tradesmen's Bank of New York is to out of a meet of the stockholders on the ing city go business At 13th inst it was decided to go into liquidation. and not attempt a reorganization. Stockhold ers will realize only 25 cents on the dollar. Depositors will be paid in full. Mr. Bates, of the Liquidating Committee. said that two so the reorseriously the crippled MacNaughtan bank brothers that had was impossible Ex Adams, as garization Congressman practically counsel for the bank, told the stockholders that a million dollars had been lost somewhere. and that in all his experience of law he had never heard of a surer case of criminal Bates operations made than this. Both he and Mr. and detailed statements to the stock and from what they is long holders, said there reason to believe that the Tradesmen's Bank failure may turn out to be as sensational as that of the Marine Bank in 1884. Colonel A. C. Woodruff, of Maryville, Ohio, has filed a petition in voluntary bankruptcy, giving his liabilities as over $50,000. Wm. B. Marche. Washington. D. bankruptey; liabilities $6,370. assets 8155. Harry E. Black, Baltimore, Md. bank ruptey. Liabilities 811.722 no assets