gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4e83b7a81a3a4fed
Response Measures
None
Description
Reorganization successor to Jenkins Trust Co.; superintendent took possession to effect liquidation.
Events (2)
1.April 15, 1908Reopening
Newspaper Excerpt
The Jenkins Trust Company...reopened its doors yesterday ... resumed business ... $100,000 had been deposited.
Source
newspapers
2.November 30, 1908Suspension
Cause
Voluntary Liquidation
Cause Details
Officers decided to liquidate due to inability to obtain required increase in capital and drain from installment payments to former depositors.
Newspaper Excerpt
The Lafayette Trust company ... did not open for business today. Announcement was made that the officers ... decided to permit the institution to go into liquidation. The superintendent of banks took charge.
Source
newspapers
Newspaper Articles (19)
1.April 16, 1908New-York TribuneNew York, NY
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OPENS AS LAFAYETTE TRUST CO. The Jenkins Trust Company, of Brooklyn, under its new name-the Lafayette Trust Company-reopened its doors yesterday and received many deposits from persons who had gathered long before 9 o'clock. The institution closed on October 26. The opening was preceded by a thanksgiving mass in a Bath Beach church, the funds of which had been tied up in the bank since its suspension. At Coney Island, prior to the opening of the branch there, several hundred persons held a parade. There was no crowd on hand when the main office was opened. but the depositors arrived shortly after the doors were thrown open. One hour after It had resumed business it was announced that $100,000 had been deposited. The withdrawals were said to have been less than $4,000.
TRUST COMPANY FAILS TO OPEN FOR BUSINESS New York, Nov. 30-The Lafayette Trust company. the reorganization of the Jenkins Trust company, Brooklyn which went down in the financial panic a year ago, did not open for business today. An announcement was made that.the officers of the institution had decided to liquidate. The failure to obtain an increase in capital was given as the cause of action. It is said that depositors will receive dollar for dollar.
3.November 30, 1908The Fargo Forum and Daily RepublicanFargo, ND
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BIG TRUST BANK QUITS FOR GOOD New York, Nov. 30.-The Lafayette Trust Co., a reorganization of the Jenkins Trust Co. of Brooklyn, which went down in the financial panic of a year ago, did not open for business today. Instead there appeared on the doors of the bank a brief formal statement, confirming the announcement made last night to the effect that the officers of the institution had decided to give up the struggle and permit the institution to go into liquidation. John G. Jenkins, jr., who was the president of the Jenkins Trust Co., is now on trial in Brooklyn on a charge of grand larceny, growing out of some of his acts while he occupied that po-, sition.
4.November 30, 1908The Marion Daily MirrorMarion, OH
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Brooklyn Trust Company Suspends. New York, Nov. 30.-The Jenkins Trust Company of Brooklyn, which suspended during the financial crisis of October, 1907, but resumed business in April of this year as the Lafayette Trust Co., will definitely close its doors Monday.
5.November 30, 1908New-York TribuneNew York, NY
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LAFAYETTE TRUST HIT DIRECTORS CLOSE DOORS. Deposits Are Too Low to Keep Up Its Branches. The Lafayatta Trust Company, successor to the Jenkins Trust Company, which opened its main office in Brooklyn and five branches on April 15, will theo Its doors this morning because of the inability to increase its capital steck to meet the requirenients of the new banking law. Three of the branches were closed some time 860. The main office and two branches which stop doing business this morning are at Nostrand and Gates avenues, Coney Irland and The deposits now held amount to $1,500,000 About $3,000,000 below normal. This action follows a rureting held yesterday at the home of Charles A Boody, at No. 137 Joralemon street, president of the People's Trust Company, at which were present President Harold A. Davidson of the Lafayette Trust Company, and Almet R. Latson, its counsel: A. T. Sullivan, president of the Nassau Trust Company: Edward Merritt, president of the Long Island Loan and Trust Company: Nathan Jones, president of the Citizens' Trust Company. and others. The following statement, signed by President Davidson and Mr. Latson, was given out: The proposed increase of the capital stock of the Lafayette Trust Company to meet the requirements of the new law for the operation of existing branches has proved unsuccessive Three branches have already been closed, and for the lack of the addition of capital two more must now be abandoned. A. continuation of business under these circumstances is impossbile. The advice of a number of the presidents of Brooklyn trust companies was sought at a conference held at the residence of Charles A. Boody. and it was the consensus of opinion that liquidation must ensue. and that this could be accomplished more expeditiously and more economically through the Banking Department under the recent statute than otherwise. The Superintendent of Banks has been consulted and will take possession to-morrow morning for the purpose of effecting such liquidation. The capital stock of the Lafayette Trust Company is $500,000. On October 25, 1907, during the panic, the Jenkins Trust Company closed its doors and much excitement resulted. John G. Jenkins was president of the trust company. He is now on trial before Justice Kelly, in the Supreme Court, Brooklyn, on the charge of the embezzlement of $50,000 from the trust company on October 23, or two days before it closed Its doors. The trial has been going on for about a week. When the Jenkins Trust Company was reorganized an effort was made to eliminate all Jenkins influence, and new directors and officials were elected. It was confidently expected that the capital stock would be increased without difficulty. President Davidson said last night that under the deferred payment scheme the old depositors in the Jenkins Trust Company had received about 75 per cent of their deposits. but it would not say how much more they would get.
6.November 30, 1908Deseret Evening NewsSalt Lake City, UT
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LAFAYETTE TRUST CO. Does Not Open Its Doors and Will Go Into Liquidation. New York, Nov. 30.-The Lafayette Trust company, a reorganization of the Jenkins Trust company of Brooklyn, which went down in the financial panic of a year ago, did not open for business today. Announcement was made that the officers of the company had deicded to permit the institution to go into liquidation. It was said that the installment payments to depositors in the Jenkins Trust company, provided for by the re-organization plan had proven too severe a drain on the resources of the company and also that the new officers had been embarrassed in their efforts to obtain new capital by members of the former management. John G. Jenkins, Jr., who was president of the Jenkins Trust company, now is on trial in Brooklyn on a charge of grand larceny growing out of some of his acts while he occupied that position. The superintendent of banks took charge of the Trust company today. An officer of the bank said depositors will receive 100 cents on the dollar.
7.November 30, 1908The Topeka State JournalTopeka, KS
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GIVES UP THE FIGHT. Lafayette Trust Company Fails to Open Its Doors. New York, Nov. 30.-The Lafayette Trust company, a reorganization of the Jenkins Trust company of Brooklyn, which went down in the financial panic of a year ago, did not open for business today. Instead there appeared on the doors of the bank a brief formal statement confirming an announcement made last night to the effect that the officers of the institution had decided to give up the struggle and permit the institution to liquidation. Failure to obtain an increase of capital, which the officers maintained was essential to a continuance of the bank, was assigned as a reason for the action. It was said that the installment payments to depositors in the Jenkins Trust company which were provided for by the reorganization plan had proven too severe a drain on the resources of the company and also that the new officers had been embarrassed in their efforts to obtain new capital by memories of the former management. John G. Jenkins. jr., who was president of the Jenkins Trust company, now is on trial in Brooklyn on a charge of grand larceny growing out of some of his acts while he occupied that position. The decision to close the Lafayette Trust company was reached last night after a conference between officers of the institutions and a number of Brooklyn bank presidents. In accordance with a request made at that time the superintendent of the bank took charge of the trust company today. An officer of the bank said depositors will receive 100 cents on the dollar.
8.November 30, 1908The Detroit TimesDetroit, MI
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BANK SUPERINTENDENT TAKES BANK IN CHARGE NEW YORK, Nov. 30.-State Superintendent of Banks Clark Williams today took possession of the Lafayette Trust company, of Brooklyn, successor to the Jenkins Trust company. and its several branches throughout the borough. The announcement of the suspension of the institution was made yesterday after a conference between president H. A. Davidson, of the trust company, and several Brooklyn bank heads. Inability to raise the increased capital demanded by the new banking laws, It is believed, was responsible for suspension. The deposits on Saturday totalled $1,500,000, and it was said that these would be paid in full.
9.December 1, 1908Los Angeles HeraldLos Angeles, CA
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TRUST COMPANY SUSPENDS; RECENTLY REORGANIZED Officers of Firm Decide to Go Into Liquidation-Payment of Former Depositors Too Severe NEW YORK, Nov. 30.-The Lafayette Trust company, a reorganization of the Jenkins Trust company of Brooklyn, which went down in the financial ranic of a year ago, did not open for business today. Announcement was made that the officers of the company had decided to permit the institution to go into liquidation. It was said the installment payments to depositors in the Jenkins Trust company provided for by the reorganization plan, had proven too severe a drain on the resources of the company, and also that the new officers had been embarrassed in their efforts to obtain new capital by members of the former management. John G. Jenkins, jr., who was president of the Jenkins Trust company, now is on trial in Brooklyn on a charge of grand larceny growing out of some of his acts while he occupied that position. The superintendent of banks took charge of the trust company today. An officer of the bank said the depositors would receive 100 cents on the dollar.
10.December 1, 1908The White Pine NewsEly, NV
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EFFORT WAS IN VAIN REORGANIZED JENKINS TRUST CO. CLOSES ITS DOORS-MANAGEMENT CLAIMS OLD OFFICERS PREVENTED SUCCESS. NEW YORK, Nov. 30.-The Lafayette Trust Co., a reorganization of the Jenkins Trust Co. of Brooklyn, which went down in the financial panic a year ago, did not open for business today. Announcement was made by the
11.December 1, 1908New-York TribuneNew York, NY
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LIQUIDATING LAFAYETTE TRUST. Treasurer Says Depositors Will Receive 100 Cents on the Dollar. The main office of the Lafayette Trust Company, at Gates and Nostrand avenues, Brooklyn, and its two branches in Ridgewood and Coney Island were closed yesterday. and Clark Williams, state Superintendent of Banks, took charge. President Davidson and A. K. Alford, a state bank examiner, were appointed special deputies to proceed with the liquidation under the new banking laws. The Lafayette Trust Company succeeded the Jenkins Trust Company, whose former.president, John G. Jenkins, jr., is now on trial for the embezzlement of $50,000. There was little excitement, although one depositor forced his way to President Davidson's office and when told that he could not have his money became abusive. He was taken out by the porter and a policeman. Many depositors were on hand at 10 o'clock in the belief that they were to be paid off at once. Asked how long It would be before the depositors would be paid. and whether they would receive 100 cents on the dollar. Mr. Williams said that any answer now would be more or less guesswork. H. F. Adams, treasurer, said that the depositors would be paid in full. A statement of assets and liabilities as of the close of business on November 28 will be given out to-day or to-morrow. The cost of the liquidation under the new laws will be triffing in comparison with receivership fees.
12.December 1, 1908The San Francisco CallSan Francisco, CA
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REORGANIZATION FAILS NEW YORK, Nov. 30.-The Lafayette trust company, a reorganization of the Jenkins trust company of Brooklyn, which went down in the financial panic of a year ago, did not open for business today. Announcement was made that the officers of the company had decided to. permit the institution to go into liquidation.
13.December 4, 1908The Hartford RepublicanHartford, KY
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FOR THE BUSY READER. Rebbers blew open the safe of the Olpe State Bank, at Olpe, Kan., and secured $2,000. The Atlantic battleship fleet under Rear Admiral Sperry has sailed from Manila. The next port of call is Colombo, Ceylon. Indications are that there will be a clash between miners and anthracite coal operators when the present agreement expires on April 1. Controller of the Currency Murray has issued a call on national banks for a statement of their condition at the close of business November 27. ... A cablegram from Che Foo, China says that two Japanese steamships collided off that port and it is believed that 700 persons were drowned. *** The La Fayette Trust Company, a re-organization of the Jerkins Trust Company of Brooklyn, which went down in the financial panic of a year ago has closed its doors. *** Mme Steinheil will be examined today by Magistrate Andre at Paris and it is expected that there will be some interesting developments in the now famous mystery. * * * Attorneys for Ray Lamphere have appealed his case to the Indiana Supreme Court. Lamphere was convicted of arson the case growing out of the Guinness tragedies at Laport, Ind. The recent rains have made it possible for tobacco to be prized and the members of the Burley Tobacco Society are rapidly delivering their crops at the warehouse where it is to be inspected. Jim McCarty and Tom Bryant, two white men and both employed at the same coal mines, in Daviess county, had a pistol duel last Friday night in which both were dangerously wounded. The trouble arose over family affairs. Col. Phil B. Thompson, 88 years of age, and at one time Lieutenant Governor of Kentucky, died at his home in Harrodsburg last Saturday. He serv ed one term as U. S. Senator, was a noted lawyer and a gallant exconfederate soldier and was prominent both politically and socially in his younger days.
14.May 5, 1909Omaha Daily BeeOmaha, NE
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No matter how much indignation is directed toward Mr. Maybray and his pals, his method of separating "Mikes" from their money appears decidedly raw when contrasted with the smooth work of financial experts. Possibly the fact that "miking" Is not sanctioned by law gives the taint of rawness to the scheme. Under guise of legal sanction the game of collusive robbery is no less rank, but It takes a veneer of cleverness in keeping within the forms of law while canning the spirit of the law and making off with the goods. But to the point: The Brooklyn Eagle relates that the Jenkins Trust company of that city, organized in 1905 with a capital of $500,000 and a surplus of $150,000. went into the hands of a receiver in October, 1907. with deposits of $4,500,000. On the following January reorganization was affected with the approval of the state's attorney general and the state superintendent of banks. In April, last year. the Lafayette Trust company reopened for business with capital stock increased to $800,000. In seven months the concern was again in the hands of receivers. But between April and November favored depositors got in their work, drawing out 75 per cent of the deposits, leaving 25 per cent to hold the sack. That was the purpose of the reorganization and the managers made good. Recently the receivers filed an inventory with the supreme court. in which it is shown that the nominal assets were $600,000 in excess of liabilities, but that of such assets more than $700,000 are doubtful or impossible of collection. In the detail of this report it is set forth that loans to the amount of $100,746 are of problematical value, and that there are other loans amounting to $677,618. on which it is impossible to realize anything at the present time. Another detail is that this total of bills purchased and past due amounts to $220,528. of which only 10 or 15 per cent is collectible. Here there is nearly $1,000,000 of assets, at least, pronounced doubtful by the receivers.
15.October 1, 1909New-York TribuneNew York, NY
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BROOKLYN FIRST NATIONAL DIVIDEND First of Banks Closed in Panic to Resume Payments to Stockholders. The First National Bank of Brooklyn, one of the institutions that were forced to close their doors during the 1907 panic, resumed dividend payments on its stock yesterday, when the directors declared a quarterly disbursement of 2 per cent, payable on October 5. This placed the stock on an 8 per cent yearly basis, as compared with 16 per cent paid before the panic. The First National is the first of the banks that closed during the panic to be put on a dividend basis. It was formerly one of the chain of banking institutions controlled by the late John G. Jenkins, as was the Lafayette Trust Company, once the Jenkins Trust Company, of Brooklyn, which is about to make a dividend payment of 20 per cent to depositors. The last named institution is still in the hands of the State Banking Department. It has already made one payment of 10 per cent to depositors.
16.October 2, 1910The SunNew York, NY
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Lafayette Trust Co. Stockholders Sued. A suit has been begun by Superintendent Cheney of the State Banking Department against the stockholders of the defunct Lafayette Trust Company of Brooklyn on behalf of the depositors for the recovery of the 100 per cent. assessment levied on each sto. kholder A committee of the stockholders has been appointed to resist the collection of the assessment and Almet R. Latson has been retained as counsel. The amount of stock involved is $50,000. The Lafayette Trust Company had a brief and unsuecessful career following the 1907 panie.
17.December 29, 1910The Evening WorldNew York, NY
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# 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.
18.January 18, 1911New-York TribuneNew York, NY
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UPHOLDS STATE BANKING LAW Court Decision Favors Cheney in La fayette Trust Litigation. A case that will be used to test the of the State Banking Superintendent liquidating corporations under Section of the banking law came up before Justice Aspinall in the Supreme Court, Brooklys yesterday. The state superintendent hold that the section gives him the right proceed against the stockholders of the corporations he is liquidating for the face value of their stock whenever he feels like it. The defendant in the case was August C Scharmann, of the Scharmann Brewies Company, who owns three hundred share of stock in the Lafayette Trust Company which went into liquidation. Mr. Cheney asked judgment against Mr. Scharmant for $30,000. Mr. Scharmann's lawyers held that the banking superintendent could not pro ceed against the stockholders until he has exhausted the assets of the banking com pany. Justice Aspinall held with Mr. Cheney that the Banking Department could proceed like the receiver of a national bank and sue the stockholders at any time during the process of liquidation The case will be appealed.
19.January 22, 1911New-York TribuneNew York, NY
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"Justice Aspinall, in Brooklyn, decided that Augustus C. Scharmann, one of the stockholders of the failed Lafayette Trust Company of that borough, is civilly liable to the full amount of his stock in the institution. It was the first decision under the 'panic amendment' to the state banking act, and as a precedent is regarded as of the greatest importance to all of the financial institutions in the state. The case will be fought up to the Court of Appeals.
"The directors of the Corn Exchange Bank elected William A. Nash chairman of the board, and Vice-President Walter E. Frew was promoted to the presidency. Mr. Nash served as president for twenty-eight
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
