Mitchell's Bank - Milwaukee, WI

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: July 27, 1893
Location: Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model: gpt-5-mini
Short Digest: 90491916

Response Measures

Full suspension

Other: Receiver appointed; petition by Benj. M. Weil led to formal suspension and receiver bond fixed.

Description

Contemporary reports (July 1893) describe Mitchell's Bank in Milwaukee as having been subjected to a prolonged drain/heavy withdrawals and then closed, a receiver was appointed and the institution is reported as a failure. Articles link the failure to the Erie Railroad receivership and show petitioning and appointment of a receiver (Washington Becker). No clear explicit single misinformation event is described, so classify as a run (withdrawal drain) that led to suspension and receivership (closure).

Events (3)

1. July 27, 1893 Run

Cause: Local Banks
Cause Details: Reports link the bank's failure to the Erie Railroad going into receivership and consequent loss of confidence and withdrawals
Measures: Bank officers closed doors voluntarily and sought legal protection; statements issued by Cashier Murphy and principals to reassure depositors
Newspaper Excerpt: subjected to a constant drain some time and had realized it could get on for a while only on short notice
Source: newspapers

2. July 27, 1893 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Formal suspension followed heavy withdrawals and the bank's impaired ability to meet payment obligations after loss of confidence tied to Erie receivership news; petition filed by Benj. M. Weil led to formal suspension and receiver appointment (Washington Becker).
Newspaper Excerpt: it remained open only a few minutes and then the doors were bolted and a notice of suspension was posted
Source: newspapers

3. July 28, 1893 Receivership

Newspaper Excerpt: upon petition Benj. M. Weil, ... Judge Johnson ... receiver appointed Washington Becker and fixed his bond at $1,000,000. The suit of Benj. M. Weil ... resulted in the appointment of a receiver, closed the bank after it had closed its doors.
Source: newspapers

Newspaper Articles (3)

1. July 26, 1893 The Sun New York, NY

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# RECEIVERS FOR ERIE. President King and J. G. McCullough the Men. # NO SURPRISE FOR WALL STREET. Mitchell's Bank Biggest in the List of Yesterday's Failures. The Tower of Milwaukee's Financial Strength Falls with a Startling Crash-Senator Mitchell Had Chased a Falling Market Down in an Effort to Unload Stocks and Save His Bank-Two Indianapolis and Three Louisville Institutions Suspend-Smaller Failures Elsewhere. The following statement was furnished to the newspapers late last evening: Under the resolutions of the Board of Directors, adopted at its last meeting, held July 20, the Executive Committee of the Erie Railroad Company, after full consideration, yesterday adopted resolutions placing the road in the hands of receivers. The receivers appointed by the Court are John King and J. G. McCullough. This measure was taken purely in the interests of the road and its creditors. Within the last few weeks, during the severe money stringency, the floating debt of the Erfe, which every one knows has existed for the past few years, became impossible of renewal, and in order not to sacrifice the best interests of the company, it was decided to place the road in receivers' hands to preserve the system intact, and to preserve and develop the transportation business of the company. The owners of its securities should not sacrifice their holdings because of this step. The names of the directorate of the Erie Company are a sufficient guarantee of the honest and intelligent management of the interests committed to their hands. The order was granted by Judge Lacombe of the United States Circuit Court. The receivers' bond was given in $500,000 with D. O. Mills and J. Lowber Welsh of Philadelphia as sureties. This is the fourth time that the Erie Company has been placed in the hands of receivers. The event will hardly surprise Wall street or the railroad world, since every one having to do with financial affairs and the transportation industry has known for weeks that the company was hard up. Its floating debt is understood to be about $6,500,000. A large part of it consists of loans secured by collateral made by large institutions, banks, and private bankers. It also has outstanding a large amount of paper given for supplies and to meet obligations incurred in operating the road. It is understood also that the company is in arrears on a number of routine payments, such as its pay rolls. The obligations last named, or, rather, the inability of the company to borrow money to meet them, precipitated the receivership. It has been rumored in Wall street for several days that a receivership was imminent, and sharp declines in the prices of all of the company's securities have, to an extent, corroborated the reports. Of late years the company has constantly been in a precarious condition financially, and this fact, together with the recent decline in its securities to receivership prices, and the belief in Wall street that the company is insolvent will doubtless go a great way toward lessening the effect of the announcement made above. The directors of the company are: John King. J. G. McCullough, J. Lowber Welsh, Cortlandt Parker, Henry H. Cook, William Libbey. William A. Wheelock, William Whitewright. George W. Quintard. Ogden Mills. William L. Strong. M. F. Reynolds. Morris K. Jesup, James J. Goodman, Wm. N. Gilchrist. The total mileage of the Erie system at present is 1,008 miles. This includes the New York, Pennsylvania and Ohio Railroad, but not the Chicago and Erie Railway operated by it, which is 268 miles long. According to a report for its last fiscal year, ending Sept. 30, the company earned a surplus over all charges of $733,259, and according to statements recently made by its directors, it has been earning so far this year enough to pay its fixed charges, but anything above that amount has, of course, been insignificant for the purpose of financing the company. The bottom facts about the property are that it has been handicapped for years by the results of the Gould-Fisk régime, and by the subsequent administration of Hugh J. Jewett. It has been almost constantly in the money market as a seller of bonds, partly to acquire new property and make improvements, and also to fund maturing issues. Of late its ability to borrow has been restricted, owing to the liens already placed upon its assets.

2. July 29, 1893 St. Croix Avis Christiansted, Charlotte Amalie, VI

Article from St. Croix Avis, July 29, 1893

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notice of the blockade from the Fret ch Government was SO far merely vorbal. It is currently believed that in consequence of representations from the British and Chinese ministers to the French Government at Paris the formal notice of the blockade has been averted. The Paris Journal des Débats, in an article, asserts that the demand of France includes territory ceded to Siam by England after the Burmese war, hence it was useless to deny that France must reckon certainly with China and possibly with England. The article further condemns the danger and difficulty of an off shore blockade instead of seizing the defences of Bangkok. Other Parisian journals are more extreme in their utterances, demanding the adoption of measures perfectly adapted to precipitate a conflict with England. Telegrams from Milwaukee announce the failure of Mitchell's Bank in that city, an establishment hitherto synonymous for wealth and integrity. The liabilities are estimated to be nine million dollars. The failure, it is stated, is in consequence of the Erie railway having passed into the hands of 8 receiver. New York, July 27th.-Yesterday in the House of Commons, during the continuation of the discussion in Committee on the Home Rule Bill, Mr. Chamberlain moved that the imperial control of taxation in Ireland be made a permanent one instead of six years as proposed. Mr. Gladstone during the debate strongly resented the imputation that the Liberals had truckled to the Nationalists, and during his speech he compared Mr. Chamberlain to the proverbial "Devil's Advocate", who always misconstrued best intentions. On the conclusion of his speech there were cheers and counter cheers. The Irish were delighted at Mr. Gladstone's remarks, and amidst the cheering, shouted "Devil's advoeate." The amendment on being put to the vote was defeated by double the usual majority. The blockade of Bangkok has been delayed unril the expiration of the notices issued, which expire 01 Sunday next. The Chinese Minister at Pa is has. informed M. Deville that Siam is not in possession of any territory near to the 23rd parallel, the extreme point that the French Government demand the cession of territory from the Siamese. He also informed M. Deville that according to despatches received it was thought by his Government that the black flage will not re-inforce the Siamese but will assume the offensive in Tonquin. It is officially announced that Queen Victoria has commanded the Marquis of Salisbury to visit Osborne to meet the Emperor of Germany. There are current rumours in London that the

3. July 29, 1893 The Superior Times Superior, WI

Article from The Superior Times, July 29, 1893

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The bank opened at busias it had done on every morning, ness day few for more than half a century min but it remained open only a bolted utes and then the doors were and a notice of suspension was posted Or litle while later, upon petition Benj. M. Weil, the bank consenting, Judge Johnson, of the circuit court, receiver appointed Washington Becker and fixed his bond at $1,000,000. The suit of Benj. M. Weil, which reaulted in the appointment of a receiver, closed begun after the bank had was its doors. The suit is an amicable leone and was begun because order some to gal steps were necessary in have the bank formally go into liquida- of all tion and to protect the interests depositors. CASHIER MURPHY MAKES A STATEMENT. Cashier Murphy made the following "We have not much to say statement: about the matter at the present time and We fact there is not much to be said. have in been subjected to a constant about drain some time and had realized could get on for asset on which the bank We felt that every on short notice. it money the existing conditions under as only a question of time before sus- and pension must inevitably come We might therefore decided to close. all have got through best to-day for all possibly but it was considered business right. concerned not to open for means This bank is not insolvent by any realize only time is needed to It enough and to meet every liability. Mitchell not only has ample assets, but Mr. it. and Mr. Johnston are behind Washington Becker, of the Wisconsin and Fire Insurance Company to Marine said: "I have every reason receive Bank, depositors will hope that our in a reasonably short time 1 their can't money say how soon. of course, but it will be atan early dav hope CITY HAS $1,630,000 ON DEPOSIT city of Mitwankee had $1,630,000 InsurThe the Wisconsin Marinea and Fire only in Company Bank. As it has be about ance $8,000 in the office it will 6001 forced to suspend payment city' deposit in Mitchell's $1,500,000. Bank The by a bond for John is protected on the bond are David The Mitchell, sureties John Johnston and Ferguson. Robert Eliot & Co. and the Friend notice Clothing Company gave them Bros. outstanding checks draw by Fire that Wisconsin Marine and should Bank. on the be presented at the Central National Checks of the Daiey Roller National Mills, o will be paid at the the Daisy Milwaukee Bank and chec ke of at the Exchange Wisconsin Mills of Superior National will Bank. be paid that Cashier Bigelow announces of the E. National will pay all checks ComFirst & Co. T. i. Chapman National pany P. Bacon and the Northwestern Insurance checks Company of the Badger Illuminating Owen The Company the Edison Bros. Illuminating will also be Company the and First National at be presented paid Checksdrawn at by the Marshall following & firms III & & Co., are sley's to Bank for payment H. West Bradley Metcalf Company, H. Son, D. Fisbeck & Son, A. F. Gallun C. & Cribb, Inbusch Bros., George Co., Osseo, Wis: C. H Shores & Richland CenA. 11. Alex. Krouskop, Kehler. Montello, E Wis.: M. ter, Wis: of Soldiers Grove, Wis. Plum, Platt. Wis. Bank treasurer of Manitowoc Parker Nelson Co., & Co.,Boscobel Manitowoc, Manufactur- on MilwauHildebrand Davis Bros. ing Bank. kee Company, National: on South Side Savings and Checks of the following-named individuals will com- be panics, the firms Wisconsin National Cudaby Bank: St. paid Paul at Railway Company & Co. E. R.GodBros., L. H. Shakman the Merrill estate, A. frey Moore Sons Manufacturing Company, Company Toy the & Sons, the Meinecke Mendel, Meinecke H. S. Mack & Co., H. Company, G. B. Van Norman, Jacob S. Ogden, Smith & Lindsay Co., Bros., and the Morawetz National estate. Exchange Bank will Robert pay The checks of the following: "lothing the Co., Friend Bros the Eliot & Daisy Roller Mill, of John Company, House. estate Plankinton William Plankinton. Fire Plankinton. Wisconsin Marine and InThe Bank capital of state bank suranceCompany in 1853, with a David the highest permitted. in 1840 and $500,000, entered the bank death Ferguson Johnston in 1856. On 1887 the he beJohn Alexander Mitchell in bank to each of one-third of the of the queathed and the management since. of them. been in their charge his son, bank has was bequeathed to elected to One-third Mitchell, who was president. John 1. father's place as president of till his Mitchell became vice-presiJohn L. David Ferguson More the bank, JohnJohnston cashier. was apdent recently and Robert L. Jennings John Johnpointed assistant to be cashier. actively connected bank on ston with ceased the management John of the P. Murphy, the first of the year. of the Plankinton cashBank, formerly succeeded cashier Mr. monthsago Johnston Washing: as of ier. Twoor who three is a brother-in-law interest John ton Becker, L. Mitchell. purchased position an of second elected in re-president the bank. was The created at to that fill it. time and Mr. Becker statement was of the bank, rendered The on last July 3. 1893, is as follows: RESOURCES $6,485,673 Loans and discounts 29,233 567,412 Overdrafts bonds and mortgages 1,038,472 Loss and Due from expense banks and bankers CASH535,361 124,226 Currand Currency silver 165,281 Checks on clearing house $8,946,344 61 Total resources LIABILITIES. $ 500,000 on 67