Spring Garden National Bank (Philadelphia, PA)

View Charter #3468 on SPMC View balance sheet

Episode Information

Episode UID
346801097
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
34680 national
Charter Number
3468
Start Date
May 8, 1891
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3524d1f076dcb77f

Response Measures

Borrowed from banks or large institutions, Clearinghouse loan, Full suspension, Books examined

Other: Bank placed in hands of National Bank Examiner (W. B. Drew) and subsequently a receiver appointed; Penn Safe Deposit & Trust Company made an assignment.

Clearinghouse involved: Yes (loan, examination, or other measures)

Receivership Details

Depositor recovery rate
25.7%
Date receivership started
1891-05-21
Date receivership terminated
1901-12-09
OCC cause of failure
Fraud
Share of assets assessed as good
12.1%
Share of assets assessed as doubtful
23.9%
Share of assets assessed as worthless
64.0%

Description

Receivership appointed and bank officers arrested for falsifying records and embezzlement.

Events (5)
1. March 13, 1886 Chartered
Source
historical_nic
2. May 8, 1891 Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals amid ongoing financial stringency and apparent insolvency/management misconduct surfaced; rumors and weakening credit prompted depositors to withdraw.
Measures
President placed the bank in hands of National Bank Examiner Drew; police stationed around the building; doors closed by examiner's order.
Newspaper Excerpt
News of the suspension spread through the city like wildfire, and it was not long before the frightened depositors began to gather around the bank building... Men and women with bank books in their hands thronged about the doors demanding admittance.
Source
newspapers
3. May 8, 1891 Suspension
Cause
Government Action
Cause Details
Closed by order of the Comptroller of the Currency / National Bank Examiner following heavy withdrawals and concerns about reserves and assets.
Newspaper Excerpt
This bank is closed by order of the controller of the currency until further notice. W. B. DREW, National Bank Examiner.
Source
newspapers
4. May 21, 1891 Receivership
Source
historical_nic
5. May 22, 1891 Receivership
Newspaper Excerpt
Benjamin F. Fisher has been appointed receiver of the Spring Garden National Bank of Philadelphia.
Source
newspapers

Newspaper Articles (24)
1. May 8, 1891 Evening Capital Journal Salem, OR
Article from Evening Capital Journal, May 8, 1891

Click image to open full size in new tab

Article Text

FINANCIAL. NATIONAL BANK CLOSES. PHILADELPHIA, May 8.-Spring Garden National bank closed its doors at 11 o'clock this morning. Among stock holders and depositors a strong feeling prevails that the closing of the bank will prove but temporary, and that they will recover their money. THe SILVER PURCHASED. WASHINGTON, May 8.-Four hundred and fourteen thousand ounces of silver was purchased to day at prices ranging from $98 15 to $98 40. MADE AN ASSIGNMENT. PHILADELPHIA, May 8.-The Pennsylvania Safe Deposit & Trust company, which has its office in Spring Garden National Bank building made an assignment this afternoon. The company is said to be solvent. The assignment was simply for protection against a run,

2. May 9, 1891 The Morning News Savannah, GA
Article from The Morning News, May 9, 1891

Click image to open full size in new tab

Article Text

A BANK SHUTSIIS DOORS. THE SPRING GARDEN NATIONAL OF PHILADELPHIA FAILS. The Crash followed by the Suspen8 on of the Penn afe Deposit and Trust Company-The Failures a Eurprise to the Public-Fair Rep rts at the Last Showing. PHILADELPHIA, May 8.-Under an order received from Controller of the Treasury Lacey the doors of the Spring Garden National Bank were cl sed at 11 o'clock this morning. News of the suspension spread through the city like wildfire, and it was not long before the frightened depositors began to gather around the bank building at Twelfth and Spring Garden streets. Scarcely had the announcement of the failure of the Spring Garden bank been made before there was a rumor afloat that the Penn Safe Deposit and Trust Company, also located at Twelfth and Spring Garden streets, had also suspended payment. A SURPRISE. To the general public the crash was a great surprise, for at the last sale of Spring Garden' bank stock on April 28, 1891, the price obtained was $121 50, which is exactly $21 50 above par. The capital stock of the institution was quoted at $750,000 and there was supposed to be a surplus of $130,000. A dividend of 21/2 per cent. was paid upon the capital stock at the last annual meeting and the bank was therefore generally supposed to be sound. THE CITY CAUGHT. The bank is a large depository of the city's money. According to the statement of City Treasurer Bardsley he has $144,000 on deposit in the institution. The officers of the bank are: President, Francis W. Kennedy; cashier, Henry H, Kennedy; assistant cashier, S. A. McClure. The board of directors were Francis W. Kennedy, Nathan Middleton, Ephraim Turland, Nelson F. Evans, Ephraim Young, Robert C. Thomas and John B. Stetson. At 11:30 the following notice was placed upon the door: This bank is closed by order of the controller of the currency until further notice. W. B. DREW, National Bank Examiner. A STATEMENT BY THE PRESIDENT. When the people gathered immediately af er the doors had closed, President Kens nedy looked outof a side door and called out that he had no statement to m ke. As soon as he had finished speaking ne disappeared inside, amid the shou S and jeers of t e disappoint crowd. Later he gave out the following statement: We have this morning decided to place the bank in the hands of Mr. Drew. the national bank examiner. This step has been forced upon us principally by reason of the large withdrawal of deposits during the financial stringency which commenced last September, and the continued dullness of general business since. To meet these demands and maintain our reserve it was found impossible to realize rapidly enough upon the assets. We have been below our reserve for some weeks past, and can see no immediate prospects of increasing it. We still owe a balance to the clearing house committee for outstanding loan certificates, the payment of which is being pressed These facts, coupled with the disturbances of the past week, have caused increased weakness on the part of some of our depositors, together with weakening of our credit with other banks. We trust that the suspension will be only temporary. FRANCIS W. KENNEDY, President. THE TRUST COMPANY. The Penn Trust Company is now a state institution, but it was originally an outgrowth of the bank in this city. The stockholders of the bank are also largely stockholders of the trust company. Samuel B. Huey was consulted by persons interested and connected with the trust company 88 to the di

3. May 9, 1891 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, May 9, 1891

Click image to open full size in new tab

Article Text

ANOTHER BANK GONE. The Spring Garden of Philadelphia Forced to Stop Business. BANK EXAMINER DREW CLOSES IT. Again Philadelphia City Is a Loser to the Extent of $144,000. PENN TRUST COMPANY ALSO ASSIGNS ISPECIAL TELEGRAM TO THE DISPATCH.1 PHILADELPHIA, May 3.-National Bank Examiner Drew, by order of the Controller of the Currency, to-day closed the doors of the Spring Garden National Bank, at Twelfth and Spring Garden streets. The Penn Trust and Safe Depost Company, an institution doing business in the same building and having practically the same set of officials, went into the ha nds of an assignee. While the President and other officers claim that the chances of the bank's resuming business are good and that the suspension would be only temporary, the general impression on the street is that the affairs of the bank are in very bad shape. No detailed statement was made public to-day, and President Kennedy said that it would be impossible to prepare one for-several days. Bank Examiner Drew took charge of the bank at 11:30 o'clock; at 1 o'clook closed the doors and soon afterward a squad of police marched up and took up their stations around the bank. The news of the closing of the bank spread quickly and within half an hour there was a crowd about the building, that steadily increased. Men and women with bank books in their hands thronged about the doors demanding admittance. Philadelphia Caught for 8144,000. To all the same answer was returned: "No one is allowed inside." Meanwhile all sorts o! rumors were set afloat regarding the condition of the bank and the causes which led to its closing. Many indignant depositors claimed that they had deposited money in the bank within a half hour of the time of the closing. Again the city is caught in the ruin, the Spring Garden Bank having been named as one of the depositories of the city's money, and when the doors closed there was $144,000 on deposit there. City Treasurer Bardsley and City Controller Thompson were both at the bank during the afternoon, but both claimed to know nothing of the causes which led to the suspension, and had very little to say about the suspension. Mysterious rumors connecting the defunct Keystone Bank with the suspension are afloat and together with the reports that are current regarding the affairs of the closed bank and its management, have created great excitement, At 12 o'clock the suspension was announced at the Clearing House, and the news: circulated throughout the business centers rapidly. Causes of the Failure. Each car which arrived brought people to swell the crowd, which it required the entire efforts of the police to keep moving. No one was admitted to the bank, and all the satisfaction the public got out of repeated inquiries at the door as to the cause which led to the closing of the bank was the following statement, issued by President Kennedy shortly after 12 o'clock: We have this morning decided to place the bank in the hands of Mr. Drew, the National Bank Examiner. This step has been forced upon us principally by reason of thelarge withdrawal of deposits during the financial stringency which commenced last September, and the continued dullness of general business since. To meet these demands and maintain our reserve. it was found impossible to realize rapidly enough on the assets. We have been below in our reserve for some weeks past, and can see no immediate prospect of increasing it. We still owe a balance to the Clearing House Committee for outstanding loan certificates, the payment of which is being pressed. These facts, coupled.with the disturbances of the past week, have caused increased uneasiness upon the partof some or our depositors, together with the weakening of our credit with the other banks. We trust that the suspension will only be temporary. Finances of the Bank. The bank's stock was quoted two days since at 121, par $100, and on Tuesday last it declared a dividend of 2½ per cent on its capital of $750,000 and carried $2,500 to its surplus fund, making its total surplus $132,500. The last statement of the bank, under the Controller's call showed loans and discounts $2,170,028 18; National bank notes outstanding, $45,000; individual deposits, subject to check, $1,998,830 34; demand certificates of deposit, $8,000; undivided profits, $41,725 04. The officers of the bank are F. W. Kennedy, President; H. H. Kennedy, Cashier; N. Middleton, Vice President. It is supposed that the Kennedy family was largely interested in various real estate operations. Some years ago, when the Spring Garden was a State institution, the Kennedys were heavily interested in real estate at Bradford Hills, near Downington. The Spring Garden Bank was established in 1871 under the State banking law and continued in operation as a State bank for a period of 14 years. In the fall of 1885 the institution was reorganized as a National bank. The Penn Safe Deposit and Trust Company, which was an adjunct of the Spring Garden National Bank, is a State institution, and was incorporated November 8, 1870, with a capital of $125,000, par $100. No dividends have ever been paid.

4. May 9, 1891 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, May 9, 1891

Click image to open full size in new tab

Article Text

ANXIOUS DEPOSITORS. THE PHILADELPHIA TRUST COMPANY CLOSES DOWN. The Comptroller of the Currency Orders the Doors of the Spring Garden National Bank Closed. PHILADELPHIA, PA., May 8.-The Pennsylvania trust company, which has its office in the Spring Garden national bank building, made an assignment this afternoon. The National trust company, which made an assignment this morning is really a part of the bank that is said to be solvent, the assignment being simply for the protection against a run. The capital stock of the bank is $750,000, fully paid in, and by the February statement the reserve fund amounted in round figures to $150,000. On Tuesday last the bank declared a semi-annual dividend of 21/2 per cent, and the stock sold at $1.21, par being $100. The bank's line of deposits amounted to about $2,000,000, and the city of Philadelphia, who has $400,000 locked up in the broken Keystone bank, again suffers to the extent of $154,000. SPRING GARDEN NATIONAL OF PHILADELPHIA. PHILADELPHIA, Pa., May 8.-Another of Philadelphia's national banks closed its doors this morning by order of the comptroller of the currency. After doing business for one hour and a half this morning the Spring Garden national bank closed its doors and posted the following notice: "By order of the comptroller of the currency this bank is closed until further notice. W. P. Drew, national bank examiner." The news of the closing of the bank spread rapidly and a large crowd soon collected, but admittance was denied to all. In answer to requests sent to President Kennedy asking for some information as to the reason of the bank closing, the following note was sent out: "We have this morning decided to place this bank in the hands of Mr. Drew, national bank examiner. This step has been forced upon us, principally by the large withdrawal of deposits during the financial stringency, which commenced last September, and the continued dullness of business since. To meet these on OUR reserves, it was found impossible to realize apidly on our assets. We have been below 111 our reserve for some weeks past, and can see no immediate prospects of increasing it. We still owe a balance to the clearing house committee for outstanding loan certificates, payment of which is being pressed. These facts, coupled with the disturbances of the past week, have caused increased uneasiness on the part of some of our depositors, together with a weakening in our credit with other banks. We hope the suspension will only be temporarily. W. F. KENNEDY, President."

5. May 22, 1891 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, May 22, 1891

Click image to open full size in new tab

Article Text

NEWS OF THE DAY. The Catholic Church at Saugerties, N. Y., was damaged $4,000 by fire. Albert P. McDonald has been appointed postmaster at Altoona, Pa. Benjamin F. Fisher has been appointed receiver of the Spring Garden National Bank of Philadelphia. Edwin C. Bassett, a locally known hypnotist of Hartford, is dead at his summer residence at Madison, Conn. The framers and housesmiths' strike of New York is no nearer a settlement than it has been for a week past.

6. May 22, 1891 The Morning Call San Francisco, CA
Article from The Morning Call, May 22, 1891

Click image to open full size in new tab

Article Text

BUSINESS TROUBLES. Shortage Discovered-Arrest of Bank Officials-Falsified Returns. PHILADELPHIA, May 21.-The statement of the condition of the Penn Safe Deposit and Trust Company, which recently assigned, shows an apparent deficit of $95,000 between the assets and liabilities. Francis M. Kennedy, President, and Henry H. Kennedy, cashier of the suspended Spring Garden National Bank, have been arrested upon a warrant sworn out by depositors of the bank, charging them with receiving deposits when they knew that the bank was insolvent. The hearing of President Marsh and exAssistant Cashier Lawrence, charged with falsifying the returns of the Keystone National Bank to the Comptroller of the Currency, was continued here this afternoon before the United States Commissioner. When Marsh's name was called he did not answer, and his counsel stated he did not know where Marsh was, or whether he would be present or not, as he had not seen him since last Saturday. BOSTON, May 21.-The Davis Shoe Company, it is reported, owe about $235,000 in open accounts, due for merchandise. The great bulk of the indebtedness is for notes yet to mature and contingent liabilities. No definite statement of the affairs will be given out until a meeting of the creditors Monday next. RICHMOND (Va.), May 21.-The Davis Shoe Company, a corporation chartered by Maine, which operated an extensive factory at the State Penitentiary, has made an assignment. The liabilities of the Richmond branch are $125,000. NEW YORK, May 21.-A morning paper says the failure of the insurance brokerage firm of Satterlee, Bostwick & Martin is announced. From the charges made by the most reputable underwriters of New York, and from statements of the President or Resident Manager of the greatest insurance rorporation of the country, it appears that for nearly a year certain members of the firm systematically misappropriated funds placed in their hands for the pay ment of various corporations. The amount involved in this neglect to pay the premiums and losses which this firm collected as agents reached nearly $150,000, but owing to the sacrifices of property owned by the two elder members of the house this sum has been lessened considerably. There are, however, still outstanding a number of obligations incurred after the method which caused the ruin of the brokers, whose aggregate shows how loosely are conducted transactions between insurance companies and brokers.

7. May 28, 1891 The Farmers' Union Memphis, MO
Article from The Farmers' Union, May 28, 1891

Click image to open full size in new tab

Article Text

# THE CRIMINAL RECORD. -One of the most fiendish crimes ever known in Kentucky is reported from Sandy Hook, the seat of Elliott County. A young school teacher, Miss Maude Eleanor, was thrown from a horse, frightened by two Wilcox brothers, each of whom the girl had refused to marry. With a leg and arm broken she was chained in a deserted cabin, where she had been kept a prisoner since the middle of April, and, slowly dying, was made the victim of her captor's desires. A posse, headed by her brother, found the girl, who died fifteen minutes later. The Wilcox brothers were captured, confessed, and were promptly shot to death. -On Sept. 28 last the stage from Eureka Springs to Harrison, Ark., was robbed. The Postoffice Department is just advised that Inspector Beebe, of the St. Louis division, located the robbers, obtained evidence of their guilt, arrested them and secured confession that they committed the robbery. The names of the robbers are Walter Markley and Mrs. L. B. Rose. The Inspector is now en route to Fort Smith, Ark., with the prisoners. -James Kane was hanged at Belleville, Ont., for the murder of his wife Elizabeth. When the drop fell Kane's neck was not broken, and he slowly strangled to death. His groans were horrib e to listen to. The prisoner mounted the scaffold with a firm step, and was pale but composed until the end. -At Philadelphia, Francis M. Kennedy, President, and Henry H. Kennedy, cashier, of the suspended Spring Garden National Bank, were arrested on the charge of receiving deposits after they knew the bank was insolvent. -Tennis Hampton, colored, charged with the murder of E. H. Webber, in 1889, was lynched by a mob at Beardsley's, La. -Two young men, named Johnston and Coward, became involved in a quarrel, in Jonesboro, Ark., when Johnston's father came to the rescue, separating the yo ng men. Coward then turned on the peace-maker and fatally stabbed him, whereupon young Johnston shot Coward twice. Both will die. -Elbogen, the theatrical agent who was convicted on the charge of sending girls to so-called dives in New Orleans for immoral purposes, was sentenced to State Prison for five years and eleven months. An application has been made for a stay in the Supreme Court pending an appeal for a new trial. At Shreveport, La., Jane A. Ware, a colored girl aged 16, was driven on the railroad track at the point of a pistol by John and William Anderson, colored, and held there until a train was so near that it was impossible for the girl to escape. A posse is in pursuit of the murderers. -The jury in the case of Captain Loar and deputies, charged with murder at the Morewood (Pa.) riots, after deliberating five hours, returned a verdict acquitting all the defendants. At Fergus Falls, Minn., the jury in the Goheen murder case rendered a verdict of guilty of murder in the first degree. -The decomposed body of Frank Lupesky was found hanging to a sapling near Caldwell, Kan., with a bullet hole through his neck. He is supposed to have been murdered for his money.

8. May 29, 1891 The Morning Call San Francisco, CA
Article from The Morning Call, May 29, 1891

Click image to open full size in new tab

Article Text

CHARGED WITH FRAUD. Arrest of the President of a Suspended National Bank. PHILADELPHIA, May 28. - Francis W. Kennedy. President of the suspended Spring Garden National Bank, was arrested this morning on a warrant charging him with making false entries in the books, false returns to the Comptroller of the Currency, and the em bezzlement of the bank's funds. H. W. Kennedy, cashier of the bank and brother of the President, was also arrested, charged with conspiracy to commit the same crimes. They were held under heavy bonds to appear for a preliminary hearing next Monday. From a few developments that took place in the affairs of the Spring Garden Bank it is evident that when the full story of the bank's management is told it will fairly rival that of the looted Keystone Bank. Receiver Fisher said to-day that the further he examined into the affairs the blacker the outlook became for depositors. Much of the collateral is of the most dubious character. A member of the depositors' Investigating Committee Investigating the bank's affairs said to-night that among the collateral of the bank were two notes-one for $50,000 and the other for $20,000-drawn by a person who has no existence. The suspension of the Spring Garden Bank has been far-reaching in its effects, and many business houses have been seriously crippled. Yesterday the American Machine Company was forced to assign by reason of the bank's failure, and to-day the Millward Cliff Cracker Company made an assignment from the same cause. The assets are thought to exceed the liabilities.

9. May 29, 1891 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 29, 1891

Click image to open full size in new tab

Article Text

CONDENSED DISPATCHES The Pith of the News taken from the Current Events of the Day. The New York attorney general renders an opinion that state forest lands can neither be sold or condemned. The temperance congress at Edinburg, Ill favors a world's temperance congress at Chicago during the World's Fair. Some roughs attacked two men at Hopkinton, Mass., Monday night. They were fired on and one is not expected to live. Sir John McDonald is suffering from an attack of indigestion. The report that he has congestion of the lungs is incorrect. The president and cashier of the wrecked Spring Garden National Bank at Philadelphia have been arrested for causing the failure. The Rhode Island Senate, Thursday, passed an act regulating and restraining the sale of strong malt and spirituous liquors. The Mystic mine owners at Ottumwa, Iowa, have imported negro miners and fear trouble. They have asked for arms and ammunition. The Hamilton Rubber Co. went into the hands of a receiver Thursday. It is in trust with the State Rubber Co. and others. Liabilities $100,000. Joseph Newton, a counterfeiter, was captured Wednesday night near Tick Creek in Union county, III. whereupon he drew & revolver and shot himself dead. Green Wells. & murderer, was lynched by M mob at Columbia, Tenn., Wednesd+v night. The mob overpowered the sheriff and broke into the jail with crowbars. Owing to the illness of Gen. Butler the case of Clarietta Johnson on a petition for release from prison on a writ of habeas corpus, will go over until Monday next. Commander-in-Chief Veazey has issued to the G. A. R. general orders 24. It states that the national encampment of this order will convene at Detroit, Mich., Wednesday, August 5, 1891 A. M. Neal, an overseer in the Naumkeag mills. Salem, Mass, who hired Rosie Doube, the girl who attempted to burn the mills, pleaded guilty Monday to violation of the child labor law and was fined $25. W. & J. M. Bent, boot and shoe manufacturers, Chituste. Mass, will probably settle through insolvency. Their liabilities are estimated at $150,000, of which amount about $100,000 is owed to Potter, White & Bayley. In response to a request from the sheriff, Gov. Ferry has sent arms and ammunition to Walla Walls, Wash, in view of a possible outbreak of soldiers over the arrest Thursday of some of their number who were indicted for complicity in the Hunt lynching. The proceedings. finding and sentence of the general court martial in case of Lieut. Commander George A. Bicknell, U.S. Navy, were approved Thursday by Secretary Tracy, and be is accordingly suepended from rank and duty for one year, retaining during that period his present number in the grade. The body of James McClenaghan, a wealthy Montreal saloon keeper, who on May 8th took a large sum of money from his safe and left his store with two men, said to be American horse buyers, was found in the Lachine canal, Wednesday, divested of all valuables and with a big wound on the back of his head. The reportof the Massachusetts insurance commissioner, Merrill, issued Monday, attacked the bond and investment company business. He says that it is doubtful if since the famous South Sea bubble. such & gambling mania has seized an intelligent people as that developed in the spread of the assessment endowment and its natural and legitimate offepring, the bond investment insanity.

10. May 29, 1891 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, May 29, 1891

Click image to open full size in new tab

Article Text

PHILADELPHIA'S BANK WRECKERS. The Brothers Kennedy Both ArrestedThe Charges Against Them. [By telegraph to the Dispatch.] PHILADELPHIA, May 28.-Francis W. Kennedy, president of the suspended SpringGarden National Bank, was arrested this morning on a warrant sworn out by BankExaminer Drew, charging him with making false entries in the books and false returns to the Comptroller of the Currency and with the embezzlement of $100,000 and upwards of the bank's funds. Henry H. Kennedy, cashier of the bank and brother of the president, wasalso arrested. charged with conspiracy with Francis W. Kennedy to make Ifalse entries and false returns, and with making both. When the two accused men heard that the warrants were out for their arrest they at once went before United States Commissioner Bell and gave themselves into custody. Counsel for the Kennedies stated that they were willing to waive a hearing and enter bonds for their appearance at court. Commissioner Bell declined to allow them to waive a hearing and fixed the bail of Francis Kennedy at $20,000 and that of Henry Kennedy at $15,000 for a hearing on Monday next. The Kennedies are already under $10,000 bail each to answer the charge of receiving money from depositors when they knew the bank was insolvent.

11. June 2, 1891 Evening Capital Journal Salem, OR
Article from Evening Capital Journal, June 2, 1891

Click image to open full size in new tab

Article Text

ASSIGNMENTS. TRENTON, N.J., June 2.-Philip Bunn, treasurer of the Star Rubber Co. has resigned his position as president of the first National Bank and made an assignment of his large clothing establishment. MONTREAL, June 2.-G. Lewis, cloak importer, has assigned. Liabilities, $50,000. PHILADELPHIA, June 2.-Christian Van Gunden and Ephram Young, marble works has assigned No statement is obtainable. Young was directorin the Garden National Bank. The downfall of that institution caused his failure. BOSTON, June 2.-Talbot Wilmarth and Co. wholesale manufacturers of woolen goods have assigned.

12. June 3, 1891 The Morning Call San Francisco, CA
Article from The Morning Call, June 3, 1891

Click image to open full size in new tab

Article Text

BUSINESS FAILURES. Assignment of Wholesale Woolen Manufacturers-Results of a Bank Suspension. BOSTON, June 2.-Talbot, Wilmarth & Co., wholesale manufacturers of woolens, have assigned. TRENTON (N. J.), June 2.-Philip P. Dunn, Treasurer of the Starr Rubber Company, has resigned his position as President of the First National Bank and made an assignment of his large clothing establishment. PHILADELPHIA, June 2.-Christian Van Gunden and Epran Young, marble-workers, have assigned. No statement is obtainable. Young was a Director in the Spring Garden National Bank. The down fall of that institution caused his failure.

13. June 3, 1891 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, June 3, 1891

Click image to open full size in new tab

Article Text

BUSINESS FAILURES. More Firms Go to the Wall In Eastern Financial Circles. PHILADELPHIA, June 2. - Christian VanGunden and Ephraim Young, marble workers, have assigned. No statement ia obtainable. Young was a director in the Spring Garden National bank. The downfall of that institution caused the failure. TRENTON, N. J., June 2.-Phillip P. Dunn, treasurer of the Star Rubber company, has resigned the position of president of the First National bank, and made an assignment of his large clothing establishment. BOSTON, June 2.-Talbot, Wilmarth & Co., wholesale manufacturers of woolens, have assigned. MONTREAL, June 2.-G. Lewis, cloak importer, has assigned. Liabilities, $50,000.

14. June 11, 1891 The Farmers' Union Memphis, MO
Article from The Farmers' Union, June 11, 1891

Click image to open full size in new tab

Article Text

# FINANCIAL AND INDUSTRIAL Christian Van Gunden and E. Young, marble workers, have made an assignment for the benefit of creditors, at Philadelphia. No statement of assets or liabilities can be obtained. Mr. Young was a director of the Spring Garden National Bank and the downfall of that institution caused the failure of his firm. -Incorporation papers were filed at Columbus, Ohio, for the Consolidated Oatmeal Company, with a capital stock of $3,500,000. All the oatmeal mills of the country are thus brought under one management, with headquarters at Akron. The Incorporators say that prices will probably be lowered. -The wholesale dry-goods and shoe firm of Connell, Hall, McLester & Co., of Nashville, Tenn., made an assignment. The liabilities are $473,000; assets, estimated, $725,000. -Representatives of Kentucky jeans manufactories, which operate 3,200 looms in Nashville, Evansville and other Southern cities, met at Louisville and determined to run only two-thirds time for the next fifteen weeks. This will reduce the output 50,000 pieces, valued at $60,000. The unsatisfactory condition of the trade is given as a reason. -The Indiana Midland strike, which tied up the west end of that road for thirty days and was thought to have been settled, is again at fever heat. The Sheriff of Montgomery County has made several successful attempts to restrain the strikers from interfering with the trains. He went with a posse of men to the scene of trouble again, with instructions that if necessary the State militia would be called into service. -R. G. Don's weekly review says: Trade is not very active, but almost everywhere hopeful. Failures at Bo-ton have made hoe manufacturers cautious. Hides are easy, dry goods quiet, and wool sales moderate. The exposures of official and banking misconduct at Philadelphia tend to make business inactive, and no life is seen in iron; wool is dull, though some concessions are made by Western holders. At Pittsburg a rise in iron is prevented by the reopening of some Mahoning and Shenango furnaces, and preparations of others; window glass is fairly active but flint is dull. At Cleveland iron is in more demand; trade is good in dry-goods, hardware and groceries, and dull in shoes. Some activity is noted at Cincinnati in clothing, and at Detroit trade is up to that of last year in volume, though the late season has made the wool movement slower than usual. Throughout the West and South the fine crop prospects give encouragement, almost the only complaint coming from New Orleans of drought in the adjoining region. In the Northeast continuous rains have made the prospects unsurpassed.

15. June 13, 1891 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, June 13, 1891

Click image to open full size in new tab

Article Text

The court then adjourned. THE QUAKER CITY SCANDAL. PHILADELPHIA, June 12.-Another arrest has beem made in connection with the treasury scandal. This afternoon H. H. Yard, former partner of President Lucas (deceased,) of the Keystone Bank, in seaside speculations, was captured in Trenton, N. J., where he is being held to await requisition papers. The warrant upon which Yard was arrested was issued on the charge of conspiring with tex-treasurer John Bardsley to steal city and state taxes. The deeper the expert accountants probe into the affairs of ex-City Treasurer Bardsley the more apparent the rascalities of the man become, and the enormous sums which he made away with are daily added to. Yesterday the accountants reported to Mayor Stuart that they had discovered a grave discrepancy in Bardsley's accounts with the state. Today they presented Mayor Stuart with a statement showing that for the school year ending June 30, 1890, Bardsley had received on the school account from the state $424,423. Of this he paid into the city treasury $400,000, leaving a balance not paid of $25,423 For the second year ending June 30, 1891, he received from the state on the school fund account $420,000, no part of which had been paid into the city treasury. The committee says this total deficit in the school fund account had been caused partly by Bardsley's repaying money due by him to the state and partly by diverting the money to his own use. It is surmised that Bardsley used a part of the $445,000 to take up the bad checks of the Keystone banks for $200,000 that he was carrying as cash. PHILADELPHIA, June e.Harry C. Jones, assistant bank examiner, was before the council committee investigating the affairs of ex-City Treasurer Bardsley today. He testified that Comptroller Lacey was here on the thirteenth of February last, and was at the Keystone bank. He was shown a statement of the condition of the bank, including the falsification of the ledger, the padding of the New York bank accounts, and the carrying of due bills as cash. Director of Public Works L E. Wagner testified to conferences held between himself and the officials of the Keystone bank regarding his acceptance of the presidency of the bank. Gen. Wagner testified that be told Examiner Drew that he understood that the receivership had been settled, and that it was to be Nelson F. Evans, president of the Spring Garden Insurance company, and a director of the Spring Garden bank. Gen. Wagner also added that he understood that Wanamaker was backing Evans for the position. In reply Mr. Drew said to Gen. Wagner: "No, I think you are mistaken. Mr. Wanamaker has nothing to do with it. Now that explains a thing that Idid not understand. Assistant Secretary Nettleton is a great friend of Evans and he is probably backing him for the position. It also explains some accounts at the Spring Garden bank that I did not understand, where Nettleton appears as a large borrower. The committee adjourned until Monday. WASHINGTON, June 12. - Theattention of Mr. Nettleton, assistant secretary of the treasury, was this evening called to the testimony today of Gen. L. E. Wagner before the councils' committee at Philadelphia, investigating the Keystone bank's condition. After reading it, Mr. Nettleton said: "I [ never backed Nelson F. Evans or any other person as a candidate for the receivership of the suspended Keystone bank, of Philadelphia. After the bank had been closed some days, and when the comptroller of the currency, who had little acquaintance in Philadelphia, was considering several names for the receivership, I suggested that of Evans, and recommended that the comptroller make inquiry at Philadelphia as to his fitness, which he proceeded to do. Mr. Evans was then president of a leading fire insurance company, and, as Itully be lieved, was of excellent personal credit. 1 had not a suspicion of the financial weakness or complications on the part of Evans or the Spring Garden National bank until the announcement of the failure of that bank Evans had no knowledge that his name was to be mentioned for the Feystone receivership until some time after it was done. I suggested his name simply because I had known him

16. June 13, 1891 The Helena Independent Helena, MT
Article from The Helena Independent, June 13, 1891

Click image to open full size in new tab

Article Text

NETTLETON DEN IES. He Contradicts the Testimony of Gen. Wagner as to Evans. WASHINGTON, Sune 12.-Assistant Secretary Nettleton's attention was to-night called to the testimony to-day by Gen. Wagner before the council committee of Philadelphia investigating the bank scandal. Nettleton said: "I never backed Nelson F. Evans or any other person as candidate for the receivership of the Keystone bank. After the bank had been closed some days and when the comptroller of currency, who had little acquaintance in Philadelphia, was considering several names for the receivership. [ suggested Evans, and recommended that the comptroller inquire in Philadelphia as to his fitness, which he proceeded to do. 1 had no suspicion of any financial weakness nor complication on the part of Evans or of the Spring Garden National bank until the announcement of the failure of the bank. Evans had no knowledge that his name would be mentioned for the Keystone receivership until some time after it was done. I suggested his name simply because I had known him long and believed him every way fit. I have borrowed no money from the Spring Garden bank, but it is probable that certain accommodation notes for which I am responsible are in that institution. If so, I am simply among the losers by the bank's failure, which T regret."

17. June 13, 1891 Wheeling Register Wheeling, WV
Article from Wheeling Register, June 13, 1891

Click image to open full size in new tab

Article Text

Never Backed Evans. WASHINGTON, June 12.-The attention of Mr. Nettleton, the Assistant Secretary of the Treasury, was called to the testimony to-day of Gen. W. E. Wagner, of Philadelphia, investigating the bank scandal. After reading it Mr. Nettleton said: "I never "backed" Mr. Nelson F. Evans or any other person as a candidate for the receivership of the suspended Keystone Bank of Philadelphia. After the bank has been closed some days, I suggested Mr. Evans. I had not a suspicion of any financial weakness or complications on the part of Mr. Evans, or of the Spring Garden National Bank until the annonneement of the failure of that bank. I suggested his name, simply because I had known him long and believed him every way fit. I have borrowed no money from the Spring Garden Bank, but it is probable that certain accommodation notes, on which I am responsible, are in that institution. If so, I am simply among the losers by the bank's failure, which I regret."

18. July 9, 1891 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, July 9, 1891

Click image to open full size in new tab

Article Text

EXAMINER DREW MUST GO. Consuls Asked to Look for Marsh--Yard Will Appeal--Broken Banks Dropped. PHILADELPHIA, July 7.-Correspondence of the comptroller of the currency' and Bank Examiner Drew, in which the latter was taken to task for his failure, in his report of January 29th, after 15 days' investigation, to include among the liabilities of the Keystone National Bank $544,851.46, for which it was then indebted on account of clearing house certificates, is made public. Mr. Drew says the omission was clearly an accident. On July 2d, the comptroller requested the resignation of Mr. Drew as a bank examiner, but at latest accounts he had not received it. The mayor has transmitted to President Harrison the resolutions of city councils expressing the wish that the President inform the several ministers and consuls of the United States of the desire of the government to secure the arrest and extradition Bank. of President Marsh of the Keystone Counsel for H. H. Yard have decided to appeal to the supreme court from the decision of Judge Allison ordering Yard to submit himself to the sub-committee on investigation of city councils' finance committee and to be sworn and to testify. The Clearing House Association yesterday dropped the Keystone and Spring Garden National Banks from membership. The executive committee of the depositors of the Penn Trust and Safe Deposit Company, which is now in the hands of a receiver, have addressed a circular letter to depositors asking them to contribute three per cent of the amount of their deposits, to be used to complete the investigation. Ephraim Young and Frank Benton were indicted by the grand jury yesterday, on the charge of conspiracy to cheat the Millward-Cliff Cracker Company of $52,000, by the issue of certain promissory notes and other false and fraudulent means.

19. July 10, 1891 The Wilmington Daily Republican Wilmington, DE
Article from The Wilmington Daily Republican, July 10, 1891

Click image to open full size in new tab

Article Text

At the Opera. No special attempt at decoration was made last night at Albert hall. The audience numbered about 6,000 and the artists included Albani, Nordia Belle, Edward Lloyd and the choral society. The kaiser wore the uniform of a British admiral. The kaiserin had a dress of cardinal silk with a dazzling tiara of diamonds. At the conclusion of the "Kaiser's March" the audience arose and cheered the imperial visitors and the kaiser and kaiserin bowed repeatedly. The queen's box, enlarged for the occasion, was occupied by the imperial royal personages. To Make an Exhaustive Examination WASHINGTON, July 10. - Secretary Foster has instructed Messrs. Brown and Faunce, the experts appointed to examir e the Keystone and Spring Garden banks in Philadelphia, to make a complete and exhaustive examination of those banks, exercising their own discretion as to whether they would work singly or together. They are instructed to submit partial reports every Saturday, showing the progress made and results attained, and at the conclusion of their work they are directed to make a complete report. The comptroller has directed Receivers Yardley and Fisher to furnish Messrs. Brown and Faunce all possible facilities to render their work effective.

20. August 18, 1891 Evening Star Washington, DC
Article from Evening Star, August 18, 1891

Click image to open full size in new tab

Article Text

BANK WRECKERS IN COURT. The Assistant Cashier of the Keystone Sentenced to Eight Years. PHILADELPHIA, PA., August 18. -Charles Lawrence, ex-assistant cashier of the broken Keystone National Bank, who yesterday pleaded guilty in the United States district court to two indictments charging him with making false entries in the bank's books and with conspiracy with Gideon W. Marsh, president of the bank, to make false entries, was this morning sentenced by Judge Biddle to eight years* imprisonment in the Eastern Penitentiary at labor and pay a fine of $100 and costs. Francis W.Kennedy, president, and Henry H. Kennedy, cashier of the suspended Spring Garden National Bank, were also brought before Judge Butler this morning. The two Kennedys also pleaded guilty yesterday to making false returns to the controller of the currency, misapplying the funds of the bank and making false entries in the books. After the two men had pleaded guilty Judge Butler was petitioned by their counsel to suspend sentence to allow them to get their affairs into order, and also on the ground that they could be of great assistance to the receiver of tbe bank in disentangling its affairs. Judge Butler reserved his decision on the matter until today. This morning he decided to grant the petition and postponed sentence until September 8.

21. November 14, 1891 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 14, 1891

Click image to open full size in new tab

Article Text

AFFECTING NATIONAL BANKS. Congress Will Pass Laws to Make the System More Perfect. ADMIRAL BROWN WRITES A LETTER. He Officially Denies the Many Derogatory Rumors Concerning Himself and Sailors-The President's Proclamation. WASHINGTON. D, C., Nov. 13.-[Special to THE BEE.]-Washington capitalists and bankers especially are much agitated just now about the affairs of the office of the comptroller of currency, owing to recent heavy bank failures, and there is talk of as important changes in office as in methods of running national banks. The manner in which the Keystone and Spring Garden National banks at Philadelphia failed appeared to be sufficient to insure a congressional investigation into the methods of operating the office of comptroller of the currency, and since the faiture or the Maverick at Boston the republicans in congress, as well as the democrats, are anxious for a searching inquiry. and preparations are now being made for it by Comptroller Lacey, who has for somo weeks had an expert on the books and papers preparing a line of defense. The comptroller of the currency is appointed by and reports to the president. Although he is located in the treasury department, uses its stationery, clerks and controls many of its accounts and most of its bouds, he is not under the secretary of the treasury and that officer has no control over him. He looks directly to the president. It will be recalled that when the Kevstone National failed and negligence was charged up to the comptroller, President Harrison, and not Secretary Foster, called for the papers and had an interview with and directed the movements of the comptroller. Although the law points out the manner in which banks shall be supervised by the comptroller and how they shall be closed under certain circumstances, he IS given almost untimited discretion. Congress will make an investigation largely for the purpose of devising additional laws intended to make national banking more perfect, but it will make some very pertinent inquiries as to how banks fail under conditions such as surrounded those at Philadelphia and Boston.

22. December 5, 1891 The Carbon Advocate Lehighton, PA
Article from The Carbon Advocate, December 5, 1891

Click image to open full size in new tab

Article Text

Couldn't Meet Its Losses. READING, Dec. 2.-A receiver has just been appointed for the Alliance Mutual Fire Insurance company of this city. The receiver was appointed on the application of J. R. Jones, of Philadelphia, who claims that the company was insolvent, because it did not make good a claim held by the petitioner. The officers of the company admitted that it could not meet its losses. Philadelphia Dry Goods Men in Trouble. PHILADELPHIA, Dec. 3.-Judgments aggregating nearly $40,000 have been entered against the firm of Turner & Hoyt, dry goods dealers of this city. Ephraim Turner, a member of the firm, has been connected with the Spring Garden National bank, which was closed some time ago.

23. December 9, 1891 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, December 9, 1891

Click image to open full size in new tab

Article Text

The Stockholders to be Assessed. PHILADELPHIA, Dec. 8.-Comptroller of the Currency Lacey has instructed General B. F. Fisher, receiver of the Spring Garden National Bank, to make an assessment equal to the capital stock on the shareholders of that collapse I institution. The capital stock of the bank was $750,000, and if all the assessments are collected $750,000 will be thus raised to pay off the indebtedness of the concern. The par value of the stock was $100 per share.

24. December 18, 1892 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, December 18, 1892

Click image to open full size in new tab

Article Text

# Refused a New Trial. In the United States Circuit Court yesterday Judge Buffington refused a new trial in the case of B. F. Fisher, receiver of the Spring Garden National Bank of Philadelphia, against L. T. Yoder. The new trial was asked for on the ground that one of the jurors had removed from the district of the court before serving. The Court ruled that this was not sufficient for a new trial.