Union Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 5, 1910
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: ddc63e3c

Response Measures

None

Description

Newspaper articles indicate the Union Bank (also referenced as Mechanics and Traders' Bank (Union Bank) in one source) suspended operations in early April 1910 and was finally closed/placed in liquidation on or about April 5, 1910. Coverage attributes the failure to inherited bad securities and unsatisfactory financial condition following its earlier reopening after the 1907 panic, i.e., bank-specific adverse information. There is no explicit description of a depositor run in these articles; primary events are suspension and permanent closure/liquidation.

Events (2)

1. April 5, 1910 Receivership

Newspaper Excerpt: Mechanics and Traders' Bank (Union Bank) ... Finally Closed. Apr. 5, 1910. These five institutions did not get permission to reopen ... many depositors after the resumption withdrew their money, and the brunt of the second closing appears to have fallen upon an entirely new class of depositors, who now blame the Banking Department for permitting the failed banks to reopen.
Source: newspapers

2. April 5, 1910 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was placed in liquidation and had poor financial condition tied to inherited bad securities after its earlier reopening following the 1907 panic; state banking department criticized for permitting reopening previously.
Newspaper Excerpt: Shocked by the sudden suspension of the Union Bank, Frederick Marble, manager of a branch of the institution, died last night following a fainting spell when he saw the notice on the bank door that business had been suspended.
Source: newspapers

Newspaper Articles (4)

1. April 6, 1910 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, April 6, 1910

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Article Text

KET ACTIVE ST OF THE DAY ionals Get Busy and Things Up a Little uring Final Hour. RS RESIGNED TO ON SUPREME COURT ked Influences in Either tion, but General Inluence Is Bearish. ORK, April 5.-The relative acthe first and last hours of tomarket rescued it from what erwise have been the dullest the present year and converted Into decided animation. The those execution shaped that epiapparently from professional sion in stock market circles hift of opinion as to the likede of a decision by the suin the important cases innti-trust law. Yesterday's of immediate action was growing resignation to a probuntil the end of the present court or even until the end term to afford time for the asof the American Tobacco and OIL cases into one decision. nsions which the gold extent is assuming was regarded rather than a cause, of the speculation. don money market was engaged n the redemption of the $105,loan. which was expected to period of the most pressing it requirements. The continued mand for our gold is attributed tion for the next stock market in London. Ision to place the Union bank in in liquidation made an unImpression, although no other is supposed to be directly inthe affair. The incident is an of the panic of 1907 and is due dequate measure of reorganizaexample of the Union bank suggestion holding over from d. States steel was a prominent the day's market movement. ates of the corporation's earnthe first quarter of the year fluence on the stock and were basis for predictions of an inthe dividend rate at the dieting on the last of the month. the winter wheat belt were Influence on stocks. although of the most important wheat account of local election holthe effects in that market obscure. in cotton was considered with interest in the financial disbelief is widespread that imculative liquidation in the 25 markets is a probable event distant future. rere Irregular. Total sales, par 107,000. States 3s registered advanced on call.

2. April 9, 1910 The Washington Times Washington, DC

Article from The Washington Times, April 9, 1910

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Article Text

BANK SUSPENSION IS CAUSE OF DEATH NEW YORK, April 9.-Shocked by the sudden suspension of the Union Bank, Frederick Marble, manager of a branch of the institution, died last night following a fainting spell when he saw the notice on the bank door that business had been suspended. Marble had not known the bank's affairs were in a bad condition, and when he learned of the trouble he collapsed.

3. December 29, 1910 The Evening World New York, NY

Article from The Evening World, December 29, 1910

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Article Text

# DOUBLE FAILURE OF FIVE BANKS BLAMED ON STATE Depositors Ask Why Banking Department Allowed Doors to Reopen. NOT CHENEY'S DOING. Cause of Crippled Institutions Was Pleaded Before Clark Williams. Since the closing last Tuesday of the Northern Bank, a reorganization of the old Hamilton Bank, which went down in the panic of 1907, there has been considerable talk in the financial district as to why the State Banking Department ever permitted the institution to reopen its doors. Thousands of citizens were attracted by the bold advertising methods of Joseph G. Robin in getting new accounts. These new depositors did not know of the bank's inheritance of bad securities from the Thomas-Heinze-Morse regime, and they now blame the Banking Department. Nor are the depositors of the Northern Bank alone in their plight. Four other institutions that failed in 1907 were permitted to resume business upon what subsequently proved to be an altogether unsatisfactory financial basis. The Five Which Failed Twice. The five banks which have been forced to fall twice are as follows: | | First Closing. | Reopened. | Finally Closed. | | :---------------------------- | :------------- | :-------- | :------------- | | Hamilton Bank (Northern Bank) | Oct. 24, 1907. | Jan. 20, 1908. | Dec. 27, 1910. | | Williamsburg Trust Company | Oct. 25, 1907. | June 7, 1908. | Dec. 14, 1910. | | Mechanics and Traders' Bank (Union Bank) | Oct. 25, 1907. | Aug. 17, 1908. | Apr. 5, 1910. | | Borough Bank | Oct. 25, 1907. | Apr. 14, 1908. | Apr. 7, 1910. | | Jenkins Trust Company (Lafayette Trust Company | Oct. 25, 1907. | Apr. 15, 1908. | Nov. 30, 1909. | These five institutions did not get permission to reopen from the present head of the Banking Department, Orion H. Cheney, but from his predecessor, Clark Williams, now State Comptroller. Many Depositors Got Out. Mr. Williams permitted these banks to resume after hearing the cause of each institution pleaded by able lawyers hired by the principal directors, and strongly seconded by petitions from the then depositors. But many of these early depositors after the resumption withdrew their money, and the brunt of the second closing appears to have fallen upon an entirely new class of depositors, who now blame the Banking Department for permitting the failed banks to reopen.

4. July 30, 1914 The Sun New York, NY

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Article Text

# Charges Alarming Shrinkage. Mr. Richards at the meeting said that he was satisfied that apparently disas-trous results followed the methods em-ployed by those in charge of the liqui-dation. Since the bank suspended four years ago, he said, the investigation showed that the cash on hand had been reduced from $343,602.78 to $86,777.90, making a total loss of $246,824.88, or an average annual loss of $64.206.22. He said that if this pro rata loss continued the balance of $86.777.90 would be wiped out in approximately seventeen months. Mr. Richards said that the sum of $203,450 had been put in to protect the equities. He said that last year $72,000 was paid out for repairs on real estate, and he had found that 25 per cent., or $18,000 might be saved by asking for bids on such work. Mr. Richards explained at great length his plan for a yearly saving of $11,190 in salaries, including doing away with Mr. Dodge's $5,000 a year and a further $5,000 a year on taxes. He declared that he believed his depart-ment could make an annual saving to the depositors of $41,190. It looked for a time as though Mr. Richards would have a fairly comfortable afternoon until Milton J. Gordon, president of the Lamont Realty Company, said that he "understood Mr. Richards had placed in charge of the affairs of the Union Bank a Mr. Hogan (he meant Horgan). He then proceeded to make an attack on Horgan. "If Mr. Hogan is one of the depart-ment," Gordon continued, "you can ap-preciate the confidence I have in the de-partment. It's true Charles F. Murphy's nephew will give us the same insurance rate as Benedict & Benedict. But what confidence can we have in a gang of politicians?" "Hurrah!" shouted the crowd. "Don't hurrah," said Gordon, "this is a case of dollars and cents." "Mr. Richards, I believe you're honest in your intentions," he went on, "but I believe you are on the wrong track. If you want to do the fine thing why not have a committee of depositors to assist you?" "All right," said Richards, "appoint 'em to work with me. I'll advice with such a committee right along." Matthew T. Horgan then got the floor. He said that about thirteen years ago his unfortunate marriage led him to the divorce courts. In 1898 he was appointed to a department in Albany and "it was supposed I falsified an account." He said the record at Albany showed that he didn't, but was commended instead by his chief for his good work. He added: "I'll stand on my record." Louis H. Goldstein, Assistant District Attorney of Kings county and counsel to the Banking Department in connection with the bank's liquidation, said that a single transaction could not be pointed out that showed loss. # Denies a Dollar Wasted. "I challenge anybody to show where one dollar was wasted," he said. Ninety per cent of the money that was paid out was for contractual obligations. If you put Mr. Dodge out you are going to cripple the department. I tell you, Mr. Richards, we have the facts and you have not. "How about the insurance matter? Mr. Dodge selected Benedict & Benedict. They had handled the work properly. I can't understand how any charge should be made. That is unfair. Politics should not enter the department. When you ap-point Democrats because they are Demo-crats you are doing a fatal injury to the State Banking Department in New York. You are there to protect depositors, not to give jobs. It's a bad principle to put Bene-dict & Benedict out and these people [Murphy's nephew] in for reasons of your own." Mr. Richards explained that he gave the insurance work to Charles F. Murphy, Jr., because he believed in competition. A committee was appointed to act with the depositors' executive committee, but before its sub-committee had a chance to call on Mr. Richards, the Bank Super-intendent left the building.