22780. Wisconsin Marine and Fire Insurance Company bank (Milwaukee, WI)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: July 26, 1893
Location: Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model: gpt-5-mini
Short Digest: 45f59384

Response Measures

None

Description

The bank was closed by directors on July 26, 1893 and a receiver was appointed; numerous articles describe suits by the receiver. Later reports in Jan 1894 state the bank will resume/resurrect operations. No article describes a depositor run on this bank itself — the July suspension is attributed to the money-stringency (liquidity/market conditions) and creditor action. I set bank_type to unknown because the name is that of an insurance company acting as a bank; available articles don't state charter type.

Events (2)

1. July 26, 1893 Suspension

Cause: Macro News
Cause Details: Closed by order of directors citing stringency in the money market; also closed following a suit by a creditor and receiver appointment.
Newspaper Excerpt: By reason of the stringency in the money market this bank is closed by order of directors. J. P. MURPHY, Cashier.
Source: newspapers

2. January 15, 1894 Reopening

Newspaper Excerpt: The Wisconsin Marine and Fire Insurance Company bank at Milwaukee will resume Monday. (reports Jan. 1894 of bank's resurrection and release of state funds tied up by suspension.)
Source: newspapers

Newspaper Articles (13)

1. July 26, 1893 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, July 26, 1893

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MINING STOCKS. 5 Bodie Belcher 20 55 Bullion Best & Belcher 25 48 Confidence Choller & 15 Caledonia 1 Con. Virginia 10 40 Challenge Con Gould & Curry 5 Con. New York 5 Hale & Noreross 30 Crown Point 40 Potoli 5 65 Justice Ophir 5 Kentuck 3 Savage 35 Mexican 45 Sierra Nevada 10 35 Decidental Union Con Overman 10 40 Yellow Jacket 5 5 eg. Belcher Alpha Con Utah 10 10 Alta 5 10 Andes Lady Washington. EASTERN MARKETS. NEW YORK STOCK EXCHANGE. NEW YORK, July 25.-Stocks opened slightly lower. but the pressure was less pronounced. Shortly after the opening a better feeling set in and fractional advances were scored. St. Paul rose from 51% to 523/4. Later the market showed more resisting power, from the fact that there are now two sides to the trading. Some operators think the decline has run its course and are buying whenever favorites fall below a certain point. Some stocks, however, are weaker than ever, notably Missouri Pacific, Northern Pacific and Atchison. The first named dropped from 233/2 to 21, Northern Pacific preferred from 22 to 19% and Atchison from 15½ to 13%; weakening the whole list. Northwestern sold down to 94. At 11 o'clock the market was somewhat steadier. Speculation was tame after 11 o'clock, except Northwestern, which sold down to 92½. but rallied 1/4. and Omaha proferred dropped 6%, to par. At noon the market was easier again. There were sharp borrowing demands for stocks, Rock Island and Western Union commanding 1-64@1-32 for use. The bank failures at Milwsukee, Louisville and Indianapolis, more particularly the suspension of the Wisconsin Marine and Fire Insurance Company bank at Milwaukee, utterly demoralized the holders of western stocks this atternoon, and a general rush to sell was witnessed. Granger stocks sold at the lowest price in years. St. Paul dropped to 48½ Northwestern to 89, Rock Island to 55% and Burlington to 70. It was liquidation pure and simple, although the bear element did all in its power to accelerate the dow nward movement. Blocks and blocks of long stocks were thrown over the board and the question of price did not seem to enter into the operation. Dividend payers and fancy stocks suffered alike. Northwest fell off 6½: Omaha preferred, 6%: General Electric, 5%; Burlington and St. Paul, 4½ each; Big Four, 33/4; New York Central, 3½; Manhattan, 3½; Sugar, 2½; Rock Island, Lackawanna and Louisville & Nashville, 2%; Missouri Pacitic and Northern Pacific preferred and Lake Shore, 2½ each, and Atchison, Distillers, Union Pacific and Western Union about.2 per cent. After the delivery hour, when it was found that no Wall street houses were in trouble, there was a rally of 1/2@3 per cent. and the market closed steady. Government bonds-Lower. Petroleum-Dull. FINANCIAL Money on call-Firmer, ranging from 3@8 per cent.; closing, offered at 8 per cent. Prime mercantile paper, S@12 per cent. Sterling exchange-Weaker, with actual business in bankers' bills at $4.811/2 @4.81% for 60-days, and $4.83%@4.84% for demand. SILVER. The silver market is neglected. Bars, per ounce, 691/20; Mexican dollars, 58c. BONDS

2. July 29, 1893 The Kimball Graphic Kimball, SD

Article from The Kimball Graphic, July 29, 1893

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Senator Mitchell's Bank Suspends. MILWAUKEE, Wis., July 26.-At 10 o'clock Tuesday the following notice was posted on the doors of the Wisconsin Marine and Fire Insurance Company bank: By reason of the stringency in the money market this bank is closed by order of directors. J. P. MURPHY, Cashier. The bank was closed on an action brought by Benjamin Well, a real estate man, who allege ed that the bank owed him $3,341.71, which it is unableto pay. On motion of B. K. Miller, Judge Johnson appointed Washington Becker, receiver under bonds of $1,000,000. This bank is the city depository and at the present time holds $1,535,000 of the city's money. It IS impossible to get a statement from the officials of the bank at the present time, but it is believed a statement will be prepared during the day. This is Senator Mitchell's bank and has been considered the strongest bank in the city.

3. August 5, 1893 Grand Rapids Herald Grand Rapids, MI

Article from Grand Rapids Herald, August 5, 1893

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Article Text

Another Suit Against Mitchell. MILWAUKEE. Aug. 4. - Washinfon Becker as receiver of the Wisconsin Na. tional Fire Insurance Company bank, has begun suit against John L. N. Mitchell, David Ferguson and John Johnson to collect promissory notes that aggregate 8000.000. The notes given by Mr. Mitchell aggregate 8300,000; those given by Johnson and Ferguson $150,000 each. The notes were not secured by collateral, and were in the hands of the banks at the time of appointment of a receiver. The Northwestern National Insurance company of this city has also begun suit against Sensitor Mitchell to recover $91,000 tied up in the failure of the Wisconsin Marine and Fire Insure ance Company bank. When the deposit was made it is claimed Senator Mitchell as president of the bank personally guaranteed it.

4. August 5, 1893 The Providence News Providence, RI

Article from The Providence News, August 5, 1893

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SENSTATIONAL DEVELOPMENTS. Mysterious Unendorsed Notes in the Mitchell Bank of Milwaukee. MILWAUKEE, Aug. 5.-There were sensational developments yesterday regarding the Mitchell Bank. Washington Becker as receiver of the Wisconsin Marine and Fire Insurance Company bank has begun suit in the Superior Court against John L. Mitchell, David Ferguson and John Johnson to collect promissory notes made May 22, 1893, which aggregate $600,000. The notes given by Senator Mitchell aggregate $300,000, and those by Johnson and Ferguson $150,000 each. These notes were in the hands of the bank at the time of the appointment of a receiver. The notes have never been paid. The notes were not secured by collateral. They were merely a promise to pay. The Northwestern National Insurance Company has brought suit against John L. Mitchell for $90,000, which represented the company's funds in the bank at the time of the collapse. Mitchell is a director of the company and he is held personally responsible for the funds.

5. August 5, 1893 The Herald Los Angeles, CA

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Article Text

A Receiver's Suit. MILWAUKEE, Wis.. Aug. 4.-Washington Recker, as receiver of the Wisconsin Marine and Fire Insurance Company bank, has begun suit in the superior court against John L. Mitchell, David Ferguson and John Johnson to collect unsecured promissory notes aggregating $600,000.

6. August 5, 1893 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, August 5, 1893

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BROUGHT SUIT FOR $500,000. Mitchell, Johnson and Ferguson Heavy : Borrowers at "Mitchell's" Bank. MILWAUKEE, Aug. 5. - Washington Becker.as receiver of the Wisconsin Marine and Fire Insurance Company bank, has begun suit against John L. Mitchell, David Ferguson and John Johnson to collect promissory notes that aggregate $600,000. The notes given by Senator Mitchell aggregate $300.000, those given by Johnson and Feguson $150,000 each. The notes were not secured by collateral, and were in the hands of the bank at the time of the appointment of a receiver. The Northwestern National Insurance company, of this city, has also begun suit against Senator Mitchell to recover $91,000 tied up in the failure of the Wisconsin Marine and Fire Insurance company's bank. When the deposit was made it is claimed Senator Mitchell, as president of the bank, personally guaranteed it.

7. August 5, 1893 The Daily Morning Astorian Astoria, OR

Article from The Daily Morning Astorian, August 5, 1893

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SUING A BANK PRESIDENT. Milwaukee, August 4.-Washington Recker, as receiver for the Wisconsin Marine and Fire Insurance Company bank, has begun suit in the superior court against John L. Mitchell and others, to collect unsecured promissory notes aggregating $600,000.

8. August 10, 1893 Wood County Reporter Wisconsin Rapids, WI

Article from Wood County Reporter, August 10, 1893

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# MESSRS. MITCHELL, JOHNSTON # AND, FERGUSON SUED. # RECEIVER BECKER DEMANDS # $600,000 FROM THEM. Suit Brought in the Superior Court to Collect Promissory Notes Made by the Wisconsin Marine and Fire Insurance Company Bank Officials Mitchell Sued again. Milwaukee, Aug. 4.—Washington Becker, as receiver of the Wisconsin Marine and Fire Insurance Company bank, has begun suit in the superior court against John L. Mitchell, David Ferguson and John Johnston to collect promissory notes made May 22, 1895, which aggregate $600,000. It appears from the allegations of the complaint that on May 22, 1895, John L. Mitchell made promissory notes to the Wisconsin Marine and Fire Insurance Company bank as follows: Two for $100,000 each and two for $50,000 each. On the same day David Ferguson made three notes to the bank for $50,000 each and John Johnston did exactly the same. All these notes were made payable one day after date and bore interest at the rate of five per cent. per annum. These suits bring the Marine bank failure into both the civil courts of this county, the receivership being in the circuit court. These notes were in the hands of the bank at the time of the appointment of a receiver. The notes have never been paid. The notes were not secured by collateral. They are merely promises to pay. At the bank it was stated that the notes not being sued upon were demand notes given the bank on May 22 by Messrs. Mitchell, Johnston and Ferguson as additional security for debts due to the bank from them. These notes were not paid and formed part of the assets of the bank when the institution went into the hands of a receiver and were sued on the same as any other matured paper would be. The notes in question were given to secure the bank on some notes that it had taken in. They were taken up by Messrs. Mitchell, Johnston and Ferguson and their own notes, which were at that time as good as cash, were given to the bank in place of the questionable ones. Now, owing to the collapse of the bank and the personal liabilities of the three gentlemen who gave the good notes for the questionable ones, the notes must be sued on and their value secured from the property of the principals whose property has been mortgaged to secure the depositors of the bank. Receiver Becker has no other alternative as receiver except to take the steps he did to insure the payment of the notes. In the deal Messrs. Mitchell, Johnston and Ferguson became losers to the amount of the depreciation of the notes that they canceled by giving their own, as they expected, of course, to pay them, not realizing at that time that they would soon be buried in a financial crash. The Northwestern Mutual Insurance company has sued John L. Mitchell for $90,000. The Marine bank was the sole depository of the company and the company's funds which were on deposit were tied up by the closing of the bank. It is understood that the suit against Mr. Mitchell is to hold him responsible on his guarantee as a stockholder. Mr. Mitchell, by the way, is a director of the Northwestern Mutual.

9. August 11, 1893 Iowa County Democrat Mineral Point, WI

Article from Iowa County Democrat, August 11, 1893

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L. Mitchell was at the Wisconsin Marine and Fire Insurance Company bank Saturday morning for about two hours and then he left the city for Washington to attend the special ses- sion of congress. Mr. Mitchell looked careworn and weary and in explana- tion of his appearance he said that since the failure of his bank he had worried himself sick. "I will be glad when all this business comes to an end," he remarked. "Don't ask me to talk about the suit brought against me by my mother, because on that subject I will not talk. My case is in the hands of my attorneys, who will look out for my interests while I am away." He was equally reticent concerning the suit against him to recover for the bank on his notes given May 26 and representing $300,- 000 brought by Receiver Becker. He said he would not talk about matters relating to the bank under any con- sideration. Ex-Cashier John Johnston spent the whole morning with Receiver Becker. He was very talkative regarding the suits brought by the receiver. The fact that the notes of Messrs. Mitchell, Ferguson and Johnston were given away back in May to secure the Schlesinger and other worthless paper, was pointed out to him as leaving the impression with depositors that at the time the notes were given the officials of the bank knew it was in- solvent. Mr. Johnston said such an impression was entirely wrong and did the officers of the bank a great in- justice. "At that time," said he, "we thought the bank perfectly sound and none of us had the least idea that it would be forced a month later to suspend. We were afraid about the time the notes were given that some of the firms whose paper we were carrying would fail. We knew the paper was worth- less and that a failure would involve the bank unless we secured it. Had we closed the bank then the people would have denounced us, so we de- cided to protect the depositors by taking up the worthless paper and placing in its stead our notes, which are assets worth 100 cents on the dol- lar. "All this hue and cry about dis- honesty amounts to nothing and I am paying no attention to it. I defy any body to prove a crooked act on the part of the officials of the bank and as I have already said if there has been anything done by us pointing to the mismanagement of the bank it was an error in judgment on our part. The bank is perfectly solvent today and was when we gave the notes against which the receiver has brought suit." "The statement is made that you withdrew from the bank knowing that it was only a question of time when it must fail, and you preferred to be out when that time came." "This is untrue. Had that been true I hardly think I would have so readily come to the front with my property and my money to do my part towards securing the creditors against loss. I trust the creditors of the bank and the people of Milwaukee will give us credit for doing what we have towards securing our creditors against loss." Receiver Washington Becker, of the Wisconsin Marine bank was generally supposed to be second vice-president of that institution, although in the strict letter of the law he was not an officer at all, but merely a stockholder. This relieves him from any responsi- bility in the management of the bank, and if the grand jury attempts to in- vestigate him, it will find him bur- dened with proof that he was not an officer of the bank. About two months ago when Mr. Becker took stock in the bank the office of second vice-president was created by the directors for him and he was also elected to membership on the board of directors. Afterwards it was found by consulting the arti- cles of association of the bank that they contained no provision for the office of second vice-president and that there was no vacancy on the board of directors to which Mr. Becker could succeed. This made his election as second vice-president null and void, so it was decided that pending an amendment to the articles of associa- tion creating the office of second vice- president and providing for another member in the directory, Mr. Becker should act in the bank simply as an advisor. It has been the intention of the directory to arrange for Mr. Becker's accommodation at a meeting which should have been held the day following the failure of the bank. Of course this meeting was never held so Mr. Becker very fortunately slid very gently away from danger. Receiver Becker would not talk at length about Judge Wallber's special call for another grand jury. "I know," he said, "that the banks that have suspended since the last grand jury will be the subject for the coming body. As to how the Wisconsin Marine and Fire will be affected I cannot say." Samuel Howard, attorney for Mrs. Mitchell in her suit against her son, Jno. L. Mitchell, said that his client was simply claiming her rights under the will of her husband, the late Alex- ander Mitchell. He refused to discuss the matter further than to say he did not know whether the old homestead on Grand avenue would figure in the case.

10. August 11, 1893 Iowa County Democrat Mineral Point, WI

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'TICHOLIN WESSES AND FERGUSON SUED. RECEIVER BECKER $600,000 FROM THEM. Suit Brought in the Superior to Collect Promissory Notes by the Wisconsin Marine and Insurance Company Bank Mitchell Sued again. Milwaukee, Aug. 4.-Washi am JO SR Marine and rire Insurance bank, has begun suit in the court against John 1. Mitchell, Fergusoja and John Johnston to promissory notes made May 22, which aggregate $600,000. It appears from the allegations complaint that on May 22, 1893, Anossproad эриш T the Wisconsin Marine and rire ance Company bank as follows: for $100,000 each and two for PLANCE Ann anims the no each son made three notes to the $50,000 each and John Johnston actly the same. All these notes were made one day after date and Dore at the rate of tive per cent. num. These suits bring the bank failure into both the civil of this county, the receivership in the circuit court. These notes were in the hands bank at the time of the appointm a receiver. The notes have paid. The notes were not collateral. They are merely to pay. At the bank it was stated notes not being sued upon mand notes given the bank 22 by Messrs. Mitchell, Johnston Perguson as additional securit debts due to the bank from them. notes were not paid and formed

11. November 5, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, November 5, 1893

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The Sheriff Gets It. MILWAUKEE, Wis., Nov. 4.-The establishment of James Morgan & Co., one of the largest retail dry goods firms in the West, is in the hands of the sheriff on an execution issued in favor of the receiver of the Wisconsin Marine and Fire Insurance Company bank for $30,000.

12. January 18, 1894 The Redwood Gazette Redwood Falls, MN

Article from The Redwood Gazette, January 18, 1894

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NEWS OF THE WEEK. Tuesday, Jan. 9. About 2,000 Ohio miners are out of employment. California wine growers protest against the Wilson bill. The Detroit Tribune advocates General Alger for the senate. Governor McKinley's second inauguration as chief executive of the state of Ohio occurred Monday. Six new cardinals will be created at the March consistory. It is again asserted Satolli will be one of them. It is now stated that the Aztec Indians intend to join the Yaquis in the fight against the Mexican government. The new Catholic church at Marshfield, Wis., one of the finest in the La Crosse diocese, was dedicated Sunday. One passenger was killed in a wreck on the Northwestern road at Valley City, Neb., caused by an imperfect switch lock. Wednesday, Jan. 10. The reported resignation of President Peixoto of Brazil is denied. An Indiana congressional convention endorsed Senator Voorhees for president. Serious disturbances, said to be due to Balmacedists, have occurred at Santiago. The iron and steel works at Bessemer, Colo., will resume Monday, giving employment to 2,500 men. Burglars attempted to rob Corbett's quarters at Jacksonville, Fla., but were scared away by bullets from the pugilist's pistol. Jefferson barracks, the United States recruiting station located near St. Louis, was damaged by fire to the extent of $50,000. General Nelson A. Miles will recommend the purchase of the government buildings at the world's fair for removal to Fort Sheridan. The mercury fell to 8 deg. below the freezing point at Los Angeles, Cal., Monday night and it is estimated that one-fifth of the orange crop of the state is ruined. Thursday Jan. 11. Pork advanced 77 1-2 cents per barrel at Chicago. M. Flobert, the inventor of the Flobert carbine, is dead. Colorado coal dealers have formed a combine and raised prices. Chief Justice William Penn Lyon has retired from the supreme court of Wisconsin. Arrangements are being made to connect Tiffin and Fostoria, O., by an electric street railway. The Wisconsin Marine and Fire Insurance Company bank at Milwaukee will resume Monday. Valliant, the anarchist who threw the bomb in the chamber of deputies Dec. 9, has been sentenced to death. Charley Bennett, the famous base ball catcher, was run over by a Santa Fe train at Topeka and lost both legs. John E. Koetting, the absconding cashier of the South Side Savings bank of Milwaukee, is on trial in that city. Friday, Jan. 12. It is said Peter Jackson, the pugilst, is a physical wreck on account of dissipation. The widow of William Makepeace Thackeray, the distinguished author, is dead. A Burlington passenger train was held up by five masked men near St. Joseph. M. Dupuy has been elected president of the French chamber of deputies by a vote of 290 to 67. Three men were killed and another fatally injured by the explosion of a boiler at Adelphi, O. Electric street cars have ceased running at Ironwood and Hurley, Wis., on account of the deep snow. It is announced that Lilian Russell and Signor Perugini, the tenor of her company, are to be married at an early date. Two boys were burned to death in a fire at Dickinson, N. Y., and their mother and two sisters are not expected to live. The Ohio District United Mine Workers decided to submit the question of a cut in wages low enough to meet the Pittsburg reduction to the local organizations. Saturday, Jan. 13. The Rock Island railroad has laid off 18 freight crews. The report that Louis Kossuth has died was without truth. Licenses have been issued at Jacksonville for the Corbett-Mitchell fight. General Alger will decline to be a candidate for United States senator. The agent of the Adams Express company at Marion, Ind., was robbed of $600. Honors World's Fair.

13. January 19, 1894 Iowa County Democrat Mineral Point, WI

Article from Iowa County Democrat, January 19, 1894

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The Madison correspondent of the Milwaukee Journal says that Assistant State Treasurer Proudfit is authority for the statement that the resurrection of the Wisconsin Marine and Fire Insurance company bank of Milwaukee and the Commercial bank of Eau Claire releases all the moneys of the state that were tied up by the suspension of banks last summer. The amount due the state from both these banks was about $157,000, and, although there was a great cry that the state had lost large amounts of money through these bank failures, the money is again safe.