J. M. Masterton & Company (Mount Vernon, NY)

Episode Information

Episode UID
3896978591019
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
389697859 hash
Start Date
November 7, 1884
Location
Mount Vernon, New York (40.913, -73.829)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
1eeb7989afef7214

Response Measures

None

Description

The bank's failure triggered a run on the East Chester Savings Bank, which shared the same building but was a separate institution.

Events (3)
1. November 7, 1884 Other
Newspaper Excerpt
John M. Masterton and Philip Lucas, Jr., composing the firm, made a general assignment.
Source
newspapers
2. November 7, 1884 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The firm made an assignment for the benefit of creditors following losses reportedly due to Colorado mining stock speculation and alleged fraudulent transfers of property.
Newspaper Excerpt
the banking firm of J. M. Masterton & Co. had made an assignment to ex-County Judge Silas D. Gifford.
Source
newspapers
3. November 8, 1884 Receivership
Newspaper Excerpt
the banking firm of J. M. Masterton & Co. had made an assignment to ex-County Judge Silas D. Gifford.
Source
newspapers

Newspaper Articles (3)
1. November 9, 1884 New-York Tribune New York, NY
Article from New-York Tribune, November 9, 1884

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Article Text

FAILURE OF A A GREAT INDIGNATION IN MT. VERNON. THE MATTER TO BE PRESENTED TO THE GRAND JURY-INDEBTEDNESS $125,000. The residents of Mt. Vernon were panicstricken yesterday morning by the announcement that the banking firm of J. M. Masterton & Co. had made an assignment to ex-County Judge Silas D. Gifford. The rs spread through the village and neighborhood with great rapidity, and soon the bank, its entrance and the sidewalk in front of it were beseiged by depositors and other persons who had business transactions with the bank. Many persons who had entrusted their savings to the East Chester Savings Bank, which transacts its business at the banking house of Masterton's Crushed there In the greatest consternation to find out whether they had been robbed of their money, what had become of it. and to get it back If possible. Several of the trustees of the Savings Bank, assured the depositors that the bank was in no wise affected by the closing of Masterton's bank. that it was as sound as any savings Institution in the country: that its basiness would go on to-morrow as usual, when those who desired to withdraw their deposits could do 50: that they were prepared to pay every dollar entrusted to them but that It would he for the interest of every depositor to allow his money to remain where It was. This assurance allayed the fears of the depositors, and they. with few exceptions returned totheir homes,but those who had deposIted their funds with the firm of Masterton& Co. bewalled their anticipated lossee, varying from is hundred dollars thousands, and some of them bitterly denounced the to 11 was firm and charged It with preconceived france, as freely rumored that some of the residents who were do ing business with them had withdrawn, the full amounts of their deposits. or nearly 80, a day or two before SUBpending-gave rise to the suspicion that they had been privately advised to withdraw them. At 1 o' 'clock a meeting of creditors was held at which committees were appointed to learn the condition of the bank, and another to consider what steps should be taken for the interest of creditors depositors,and later Police Justice Cornellus E. Keene, of New-Rochelle, of the committee appointed to learn the condition of the bank of J.M. Masterton & Co., reported that with Messrs. Berry & Bigelow, he had had an interview with the cashier and teller, Messrs. Bissell and Lucas: that the amount of indebtedness to creditors was less than $125,000; that the assets cannot be positively stated at present; that Mr. Masterton and Mr. Lucas say the depositors have been made preferred creditors: that all their available property of whatever nature will be used to pay their debts. Mrs. Masterton, at the time the assignments were made, declared that she would give all she owned to aid her husband to meet his liabilities. Mr. Keene stated that all the real estate of J. M. Masterton consists of a marble quarry at Tuckahoe and the country house at Bronxville, also some houses at Mount Vernon. The committee on the question whether any legal proceeding could be had in behalf of the depositors and creditors of the banking house and firm of J. M. Masterton & Co., reported that from trustworty sources the firm has been for some time in a state of bankeuptcy, and this fact has been concealed. From all the information that they had received they believed the assignment made to be a fraud upon the creditors and depositors; that the firm until 3 p. m. on November 7 received large deposits from a large number of their dealers, well-knowing at the time that such receipts and deposits were received in violation of law and were taken with preconceived intent and design to defraud their creditors. They believed further that large sums deposited in the bank were withdrawn from the bank by favored depositors within the last few days before the closing of the bank. from and in pursuance of information and advice received from the firm, thus showing that the firm then contemplated and intended said assignment. If the facts stated in this report are true (as we firmly believe them to be), we have no hesitation in saying proceedings of a criminal nature should be immediately taken against all persons connected with the institution, and that the several matters be laid before the Grand Jury of this county. It was also recommended that immediate step be taken by the depositors, in meeting assembled, to select a suitable and proper person to be receiver or assignee of said firm in the place of Silas D. Gifford. The committee also recommended that further and immediate steps be taken to inquire into matters of said assignment, and take prompt steps necessary to set the same aside. The report was adopted. Many of the depositors and their friends manifested a disposition to push J. M. Masterton to the wall, by presenting the case to the Grand Jurv to-morrow. Justice C. E. Bigelow counselled them to adopt a different course. He advised that the committees should see Mr. Masterton and Mr. Lucas and hear what they had to say-first also to get more facts in regard to their sudden collapse. and then If it was expedient to bring the matter before another Grand Jury, which would be empanthat a fortnightof course the in eled to harriedly plunge into legal proceedings would be attended with delay. great expense, and that the lawyers would get all. or next to it, and the depositors get nothing; that he himself was a creditor to the amount of about $500. Justice Keene said that he was in the same boat and to the same extent as Justice Bigelow, but he was opposed to the course of beginning any criminal proceedingsuntil further information had been obtained. Mr. Hendricks said he deposited check for$1,000, on a New York bank, with the firm a few minutes before 3 p. m. on Friday. and on learning of the closing of Masterton's bank yesterday morning he telegraphed to New-York and ascertained that the firm had drawn the money. This action was considered to be a violation of the laws. Judge Gifford was seen in the afternoon. He thougdt from the information he had received that the indebtedness of the firm was about $150,000. That the money had been lost in Colorado mining stocks. That there is about $5,000 on hand, besides some $15,000 due the bank. The County Treasurer, David Cromwell has two sums of money on deposit In the bank. one of them was $8,284 and the other $14,560 50. The larger sum was deposited there to meet interest on bonds.

2. November 11, 1884 New-York Tribune New York, NY
Article from New-York Tribune, November 11, 1884

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Article Text

CROWDS ABOUT THE MOUNT VERNON BANK. MEETING OF MASTERTON'S CREDITORS-HIS PROPERTY CONVEYED TO HIS WIFE. At an early hour yesterday a large crowd of depositors in the Savings Bank of East Chester gathered in front of the building in Mount Vernon to withdraw their savings from that institution. Deputy Bank Examiner Van Rankin refused to allow the directors to transact any business until he had examined its condition. About 11 o'clock a. m. he informed the assembled depositors that its affairs were all right, that the bank was as perfectly sound as any savings bank in the State, that every depositor would be paid every dollar, but that those who withdrew their deposits would lose their four months' interest. About $21,000 were paid out during the day, and to-day the officers of the bank would go on paying all demands as fast as possible. By 2 o'clock most of the crowd had disappeared, and it was thought that the run upon the institution was practically over. At an adjourned meeting of the creditors and depositors of the banking house of J. M. Masterton & Co., held in Roe's Hall, Mt. Vernon, last evening, Jacob Holwegs, of New-Rochelle, presiding, the committee appointed to consider what measures should be taken for their benefit, presented the following report, which was adopted We have as far as practicable ascertained from the records of the office of the Register that prior to November 8, John M. Masterton was possessed of what is genorally known as the marble quarry property in the village of Tuckahoe. This property comprises many distinct parcels of land containing in the neighborhood of fifty acres. The exact quantity, your committee is unable to state. This property is now subject to a mortgage of $15,000, which your committee believe to be the full market value of the proparty at the present time. This is all the property your committee has been able to ascertain as belonging to John M. Masterton. From the records in said office it also appears that on February 27, 1873 John M. Masterton and wife conveyed to Elias Dusenbury, and on the same day Elias Dusenbury and wife conveyed to Josephine Masterton the premises on which they now reside, and upon which has been erected a stone mansion and out-buildings. These deeds were evidently held by the said Masterton, and were not recorded until November 3, four days before making his assignment, when they were simultaneously recorded. Without expressing any opinion upon the matter, we leave the depositors to infer the bona fides of this transaction. From the examination made in said Register's office we flud that the property where he now resides was conveyed some years ago to Mary M. Lucas, and the said Lucas now has no interest therein. This conveyance was made in the year 1862, since which time Lucas has become possessed of five lots of land in the village of Mount Vernon. These conveyances were made by Sarah A. Anderson, Wilson Brown referee and Henry Dykman referee This property conveyedto Mrs. Lueus by Mrs. Sarah Anderson is now encumbered and subject to a mortgage owned and held by Mrs. Sarah Farrell to secure the payment of $5,000: also by two mechanics Hens. held respectively by Charles E. Raymond of $1,100, and by William Leroy to secure the payment of $1,000. The total liens against this property amount to $7,100, and whether It will bring this amount we leave the depositors here assembled to judge. By an examination in the County Clerk's Office, we find that on November 7. John M. Masterton and Philip Lucas, Jr., composing the firm, made a general assignment. It is a fact worthy of mention, that the wives of neither J. M. nor Philip Lucas, Jr., join the assignment, and whatever right of dower they have in the real estate of the the assigners has not been conveyed. By an examination in the Sheriff's office we find that an attachment against the property of John M. Masterton has been Issued at a suit of Samuel J. Hornott, William J. Hayes and John P. Gurst, jr., claiming an indebtedness of $80,298. That the Sheriff, pursuant to such an attachment, has attached all the property of John M. Masterton, Including the property transferred to Silas D. Gifford, both real and persoual, as well as the property conveyed by Elias Dusenberry to Josephine A. Masterton. P. L. McClellan. WINNAR A. LAWLOR. John Berry, in behalf of the committee appointed to obtain information concerning the assets of the firm, gave an amusing account of the committee's visit to the home of J. M. Masterton, and their reception and the result of the interview with Mr. Masterton, which was brought to an abrupt termination by the appearance of Mrs. Masterton upon the scene, informing them that the interview must be brought to a close, with an intimation that the committee must leave, and they left. And their interview with Judge Gifford afforded them very little satisfaction as to the information they obtained. Brief remarks were made by Judge Kene, of New Rochelle, P.L. McClellan, Justice Lawlor and others. Judge Kene said that at the meeting held on Saturday he was in favor or making haste slowly; but the developments which had since been brought to light, he was in favor if adopting prompt and vigorous measures to punish the trickster who had been acting under false pretences, double dealing with parties and had taken advantage of his partner in business. Very bitter feeling was manifested by all present, and to take

3. November 12, 1884 New-York Tribune New York, NY
Article from New-York Tribune, November 12, 1884

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Article Text

THE MOUNT VERNON BANK MUDDLE. HOW IGNORANT DEPOSITORS LOST THEIR MONEYEFFORTS TO MAKE AMENDS. The run upon the East Chester Savings Bank at Mount Veruon was far less yesterday than on Monday. During the two days, about $51,000 was paid out to depositors. The directors said that they would continue paying off the depositors as long as they made demands. Many of the depositors who have liberal sums placed to their credit have not appeared. feeling satisfied that the institution is perfectly sound. Many persons in moderate circumstances who did not know that the banking house of J. M. Masterton & Co. and the East Chester Savings Banks, were entirely disconnected, have unintentionally deposited their savings with J. M. Masterton & Co., instead of the Savings Bank, merely remarking when they called at the banking house, that they desired to put some money in the bank, without specifying the Savings Bank. and thus a class of citizens who could ill afford to lose a single dollar have sacrificed their earnings. The Law Committees having under consideration the most practicable, and judicious course to pursue, in order to get all the money possible from the assets of the firm of Masterton & Co., held a meeting at Judge Lawler's office, to mature their plans of action in the matter, and to day it is probable that some developments of importance may result from their labors. Two of the creditors of the firm, C. C. Bigelow and John Berry. yesterday filed writs of attachment against some property in Tenth-ave., claimed to belong to Mrs. Lucas, and also against the property of Mr. and Mrs. Masterton. Another meeting of the creditors will be held on Saturday evening. Colonel Henry Huss. on being elected Supervisor of the Town of East Chester, transferred t .e town funds from the private bank of Masterton & Co. to the Union Trust Company of New York, on the ground that he did not consider the former a responsible institution. For this action he was severely censured, and was on that account defeated at the following election of town officers. On handing over the funds and papers of the town to his successor, David Quackenbush, he put the latter in possession of a certificate showing a deposit there of $15,000 for the payment of interest on $50,000 in bonds stolen from the Manhattan Savings Bank, the coupons attached thereto not having been presented for payment. The $15,000 of town funds were subsequently re-transferred from the Union Trust Company to the bank of J. M. Masterton & Co., and may probably be considered as lost or nearly so. It IS, however, understood that Mr. Quackenbush has offered to mortgage his property so far as may be necessary to make good the loss which his bondsmen would otherwise incur. At the office of Harriot & Noyes, No. 53 Exchange-place. the brokerage firm which had attached the property of -the Mount Vernon banking firm of J. M. Masterton & Co., it was said yesterday that the property attached was supposed to be ample to satisfy the debt of over $80,000. Mr. Masterton had not lost money in speculating through the house and had speculated little. No further information could be given, for the members of the firm had no intimate knowledge of the affairs of the broken firm.