T. L. Watson & Company (Bridgeport, CT)

Episode Information

Episode UID
51003371013
Episode Type
Run → Suspension → Reopening
Bank Type
private
Bank ID
5100337 routing
Routing Number
51-0033
Start Date
May 14, 1884
Location
Bridgeport, Connecticut (41.167, -73.205)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
363b5885eee306a2

Response Measures

None

Events (3)
1. May 14, 1884 Run
Cause
Correspondent
Cause Details
Run triggered by panic linked to New York failures and former correspondent ties to Hatch & Foote and inability of their correspondent to honor drafts.
Measures
Colonel Watson telegraphed deposit of $25,000 at Park Bank, NY to be made available; payments temporarily suspended.
Newspaper Excerpt
the news ... had the effect of precipitating a run upon the banking firm of T. L. Watson & Co.
Source
newspapers
2. May 14, 1884 Suspension
Cause
Correspondent
Cause Details
Suspension due to inability of Connecticut National Bank (where T.L. Watson & Co. kept deposits) to honor their drafts amid New York panic.
Newspaper Excerpt
was compelled to suspend payment at 3 p. m., owing ... to the inability of the Connecticut National Bank ... to honor their drafts.
Source
newspapers
3. May 15, 1884 Reopening
Newspaper Excerpt
the bank began paying off depositors ... Colonel Watson ... it soon became evident that he could hold the fort ... From $30,000 to $40,000 was paid out.
Source
newspapers

Newspaper Articles (7)
1. May 15, 1884 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 15, 1884

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other than the the city funds, think Most of that the the bankers worst Marine has and been bank, heavy were capitalists sound. are attributed to the the craze for of the result was a street, sion, troubles values, Hatch and and gambling foregoing shrinkage passed. in conclu- Wall The the & Foote have been heavy losers antic New Hariem, Middletown & William- by Tunnel Railroad: also on the Boston. Hoosae had & Western Railroad. They great faith in Gould stocks, a d are have of supposed to have suffered through the failure also Viflard. Rupture Between Jay Gould and Russell Sage. The Commercial Advertiser says: "It on excellent authority that a is place yesterday reported rupture Gould and took between serious Jay this Russell Sage. In consequence of large block the Western Union thrown on the market aud 80 broke price was from 60 to 54. A bad feeling continues and great trophe financiers is believed between today's catas. these to have been largely induced by the circurastance." From Other Places. BRIDGEPORT, Conn. May 14. The banking house of T. L. to suspend was clock compelled this payment Watson at three Co. afternoon owing, as was to of the Connecticut whom they to bank, their the with inability p deposits, National honor said, drafts, on account of the condition of affairs in New York BOSTON, May 14. announcement of the failures New The today in York naturally caused a little flury here and during the forenoon some wild rumors affecting several operators on the bull side of the market were upeasiness. As no feeling was failures considerable better current prevailed there and and there there were was a return of confidence. Prominent bankers who were interviewed state that Boston banks are in sound condition and if trouble comes they will stand by each other. One prominent financier said if there were no more failures in New York there would be no trouble here, but if the failures continue the result cannot be foreseen. There was no reason, he said, to anticipate a collapse in Boston. but a panic once inaugurated is like the tumbling of a pile of bricks. There was little appearance of excitement on the streets today. WASHINGTON, May 14. Hundreds of telegrams have been received from New York by the members of Congress today urging legislative action to relieve the financial strain. Just before the adjournment of the House consent was asked by Mr. Springer to pass Mr. Ding ley's bill authorizing the secretary of the treasury to invest in bonds the lawful money deposited by banks for the retirement of the circulation. The effects of the enactment of the bill will be to put in circulation about $30,000,000. Messrs Holman, and Wells objected, and the House adjourned. A meeting of the committee on banking and currency has been called for Monday forenoon, to discuss the best method to secure passage at the earliest date of the Dingley and McPherson bills. Regarding the condition of institutions here, there is no expectation that any of them will be affected by the New York faileres. Comptroller Cannon has read a dispatch from a private source in New York which he considers reliable stating that the people there think the worst is now over. ALBANY, May 14. The New York failures occasioned uneasiness today. The National Albany Exchange Bank is involved by the suspension of the Metropolitan, $135,000. Its surplus is $483,000, All drafts drawn by it on the Metropolitan will be paid on presentation by the Importers' and Traders' National Bank of New York city. The National Exchange is the only Albany bank involved by the New York failures. A Secret Meeting was held at Jay Gould's house tonight and was attended by Russell Sage, Frank Work, Sidney Dillon and C. J. Osborne, to discuss, was said, and to devise means for averting further panic tomorrow. and sustaining the market at any cost. The result of the deliberations could not be obtained. Amos R. Eno has stated in public that he will back the Second National Bank, the full amount of the deposit account of which is $4,180,000, and today deposited $2,000,000 in cash to meet the present emergency. Shortly after midnight the following was given out for publication The clearing house committee have carefully examined the affairs of the Metropolitan Bank, and the assets fully justify them in recommending the loan committee to advance an amount to enable it to immdiately resume business. The bank will he opened tomorrow morning for business as usual. Secretary Folger was seen this and was asked his opinion in regard to in Wall street. to afternoon the panic He refused want talk at length but said it showed a of

2. May 15, 1884 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, May 15, 1884

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The Effect in Boston. (Special to the Press.) BOSTON, May 14.-The feeling in Boston was one of security, for the time being at least, and of congratulation that Boston banks and bankers suffered so little. There was some little flurry in the forenoon but as the day advanced and no failures were announced here and those in New York came to be better understood the effects of the first shock were somewhat dissipated. Leading bankers united in expressing the opinion that nothing that had happened yet in New York would affect the standing of any Boston bank or broker. They said that the Boston banks were very strong and that of late they have not been carrying large balances in New York. They have been pursuing a very conservative course lately in view of a possible crash. The condition of the brokers can be less easily ascertained but it is thought that they, too, have been acting with considerable caution of late. Checks were refused on State street until an examination had been made to satisfy the broker that the money the check represented was actually on deposit. As to the future some were quite confi* dent and all tried to be hopeful. If there were no further failures in New York there would be no trouble here, nearly every one said, but if failures continued in large numbers, the ultimate result could not be foreseen. There was no reason to anticipate any collapse in Boston, but a panic once inaugurated was like the tumbling down of a pile of bricks. Some few seemed little apprehensive of a general panic though they disliked to express such an opinion. The New York failures were discussed quite freely among the brokers and bankers, but there was little appearance of excitement anywhere, or of great interest on the part of the general public. State of the Phlladelphia Market. PHILADELPHIA, Pa., May 14.-There was a drop in prices this morning, solely due to sympathy with the Wall street market One failure was announced, that of C. W. Bayard, a small operator, whose holdings were sold out under rule. It is not believed that his liabilities will exceed $10,000. Oil Trade in Pittsburg Demoralized. PITTSBURG, Pa., May 14.-The report of heavy failures in New York has completely demoralized the oil trade in this city, and intense excitement prevails. The Chicago Market Steady. CHICAGO, May 14.-In the face of the news from New York, the markets after an early decline have shown great steadiness. Springfield, Mass., Not Affected. SPRINGFIELD, Mass., May 14.-The tumble in Union Pacific stock is the chief cause for anxiety here, nearly $1,000,000 of the stock being held in this city, and as much more in Northampton and other neighboring places. The banks have very little of the stock as collateral. Condition of the London Markets. LONDON, Eng., May 14.-There was one small failure upon the Stock Exchange to-day. The panic in New York caused much excitement on the street. After the Exchange closed Louisville and Nashville securities had fallen nine points and ot her leading American railroad stocks had fallen from two to five points. Failures Reported in Connecticut. BRIDGEPORT, Conn., May 14.-The banking house of T. L. Watson & Co. of this city was compelled to suspend payment at 3 o'clock this after. noon owing as was announced to the inability of the Connecticut National Bank with whom they keep a deposit to honor their drafts on account of the condition of affairs in New York, Suspensions in Buffalo. BUFFALO, May 14.-Hilton & Waugh, oil brokers suspended today, but it is not believed that any of the banks in this city will be affected by the suspension of the banks in New York city.

3. May 15, 1884 Daily Republican Wilmington, DE
Article from Daily Republican, May 15, 1884

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E THE GREAT CRASH GREAT SMASH OF BANKS IN NEW YORK-THE RESULTS OF FRAUDULENT PRACTICES. Wall street, New York, was a scene of panic and disaster on Wednesday. The failures were announced of the Metropolitan Bank, and the firms of Hatch & Foote, Nelson Robinson & Co., O. & Co., Goff & Co., J. C. M. Williams Bogart Donnell, & Burnham. Randall, Lawson & Simpson, and Hotchkiss & It said that the Metropolitan Bank will be able to pay its depositors, but that it is not likely to resuine. The bank's capital was $3,000,000, and its report to the clearing house last Saturday showed the following as its condition at the time : Loans, $10,977.000; specie, $1,779,000 legal tenders, $491, 000 deposits, $8,425,000 circulation, & $1,305,000. D. B. Hatch, of Hatch Foote, said it was impossible for him state whether their suspension was temporary or final. A meeting of the Clearing House Association was held, at which a reso lution was adopted for the appointment of a committee of five to receive from be banks, members of the Association, bills receivable or other securities to be appropriated by said committee, who shall be authorized to issue therefor to bank loan certificates interest at 6 per per such bearing depositors cent. cent. in excess of 75 per of in case securities, annum not except of United shall States bonds, and said certificates be received in settlement of balances at he Clearing House." had a quieding effect, and the in This stock action markets, became which had firmer been Folger, tone. greatly Secretary demoralized, who is in New telegraphed to Washington early in an order for York, the day call the for immediate bonds, payment of the 127th and Secretary made the sury the Acting announcement of the accord- Treaingly. Secretary Folger " expressed his determination to use all the power of the Government to prevent panic, and to act promptly to the utmost limit ey of his authority.' There was a run re the on the during day Second announce National et Bank, notwithstanding all st men' by Examiner Scriba that the ets bank was solvent. Lee It appears that John C. Eno, President of the Second National Bank, had rtbeen using its funds in Wall street speculations, to the amount,rumor said, nd of $2,000,000. Whatever the deficit, however, it was made good by his 08father, Amos R. Enos, a wealthy real estate owner. John C. Eno resigned an the Presidency of the Bank on Tuesday afternoon, and the Directors appointed to as his successor James A. Trowbridge, son of a former President. The Presiod dent of the Metropolitan Bank is Geo. I. Sauey, a well known philanthropist, his who within a few years has given to religious and charitable institutions ub $1,500,000. The Atlantic State Bank, of Brookleft lyn, closed its doors in the afternoon BOL in conseqnence of the failure of the Mecropolitan Bank, through which it 'BOD cleared. The Atlantic Bank expects to re-open to-day. Its capital 18 $200, ex 000. he banking house of T. L. Wat son & Co., of Bridgeport, Connecticut for suspended at 3 o'clock this afternoon owing. 1: said, inabilities - connecticut National Bank, in which they deposit, to honor thei Pen drafts, on account of the condition o atlairs in New York." Watson & Co oto leit expect to resume payment to-day. Telegrams from all other points ery North, West and South, received las No. night, show that no trouble has grown out of the Wall street panic. It wa rket reported last night that the deficit the in the Second National Bank of New York amounted to $4,000,000, and tha en if the President's father paid $3,500,000 iver the amount, the Directors giv n 624 $500,000. The bank paid out $500,00 codyesterday. Emile de Smet, a prominent lumbe for dealer of Moss Point, A.a., has failed food with liabilities estimated at $400,000. A New Orleans creditor holds a mortgage ness on De Smet's property for $150,000 on't whiele is believed to cover all available ture assets. -

4. May 15, 1884 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, May 15, 1884

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A Stir in Bridgeport. A; Rumor-The Banking House of T. L. Watson & Co-Twenty-Five Thousand Dollars to the Rescue-A Stream of Callers for Money-Plenty for All To-Day. The news of the trouble at the house of Hatch & Foote, New York, had the effect of precipitating a run upon the banking firm of T. L. Watson & Co. The old firm of Hatch & Watson was at one time the financial correspondent of Hatch & Foote, but since the death of the late Mr. Hatch, sr., and the reorganization of the Bridgeport house, the relation of correspondent was dissolved. It was this former connection, which brought on the run yesterday. It began about noon, and up to half-past two several thousand dollars had been disbursed. At that hour payment was temporarily suspended. Mr. Watson was in New York, and available funds were not at hand. News of these facts spread quickly, and a constant stream of callers passed in and out of the establishment all the afternoon. Shortly after the suspension of payments a dispatch was received from Colonel Watson, stating that he had deposited $25,000 with the Park bank, of New York, to the credit of the Bridgeport bank, and had notified the Bridgeport bank to pay over the money immediately to the firm. Mr. Morehouse, the chief clerk, said about 3 o'clock that the money could not be obtained from the Bridgeport bank, as it could not be spared there, and that with it a part of those in waiting could be satisfied. Colonel Watson telegraphed that he was coming up right away, and came up on the; next train. He announced that there would be plenty of money in readiness this morning to meet every and all claims against the concern.

5. May 15, 1884 New-York Tribune New York, NY
Article from New-York Tribune, May 15, 1884

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PAYMENTS SUSPENDED AT BRIDGEPORT. BRIDGEPORT, Conn., May 14.-The banking house of T. L. Watson & Co., of this city, was compelled to suspend payment at 3 p. m., owing, as was announced, to the inability of the Connecticut National Bank, in which they kept their deposit, to honor their drafts. Deposits were received up to the time payments were stopped. Mr. Watson, the active member of the firm, was in New-York, and at 2:40 telegraphed to Mr. Morehouse, his cashier, that he had deposited $25,000 with the Park Bank, New-York, to the credit of the Bridgeport Bank for his immediate use. Mr. Morehouse tried to obtain the above amount from the bank but was unable to get it. At 3 another dispatch was received from Mr. Watson saying : " I am arranging for cash as fast as p ssible and will pay as rapidly as possible to-morrow." As soon as these dispatches were posted, the crowd of anxious depositors began to quietly withdraw. There will doubtless

6. May 16, 1884 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, May 16, 1884

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The Excitement Over. The Run on Colonel Watson's Bank Bridgeport-Not Much of Shower-The Battle Won by the Bank. It was expected that a crowd would besiege the banking house of T. L. Watson & Co., Bridgeport, yesterday morning waiting to get their money, owing to the scare of the day before. The doors were opened an hour and a half ahead of time and the bank began paying off depositors. Contrary to expecta tion, there were but few claimants on hand when the doors were opened, which was probably because it was not widely known that the bank would open before the usual time. Colonel Watson was in charge and it soon became evident that he could hold the fort. Before the eyes of the depositors in plain sight were bags of gold in which were thousands of dollars' worth of the precious metal, and piles of crisp greenbacks lay on the counter. By 8:30 o'clock there was a line of solemn-faced men extending from the paying teller's desk to the sidewalk. Two policemen stood at the portals of the house to preserve order. Their duties were not enormous, for, although the disposition of impatience in each depositor to take his turn was somewhat marked, there was detected a feeling of doubt in each as to the wisdom of his course. Colonel Watson, with a smile on his face, acted as paying teller, personally receiving each applicant and passing out promptly the amount of his claim. He had a pleasant word for each and seemed glad of the opportunity to aid in demonstrating that his house is capable of meeting obligations to the last farthing. As depositors received their money they retired, some of them with the bills in their hands, others tucking them in wallets and vest pockets, walking away in silent and evident satisfaction, their places in the line being filled by others. Hour after hour this process continued, and although a steady fire of bills and specie at the enemy was kept up, the places in the fallen ranks were filled by fresh recruits, who in their turn were met and vanquished. "What shall we do with our money now we've got it?" said one of the gentlemen who had been most anxious while in the line of applicants." "Don't know," said another, whose hands, deep in his pockets, indicated a severe strain on his suspenders, "guess we'd better put it back again; about the safest spot we can keep it." General Stephen R. Smith, of New Haven, who is a friend of Colonel Watson, passed most of the morning in the banking house assisting, as an old bank officer, in his efficient way, in any work needed at his hands. A half dozen clerks, some of them specials called at this juncture, found him an adept and invaluable aid. The general said: "I have been familiar for years with the operations of this house and know from personal knowledge of Colonel Watson's ability to meet all obligations dollar for dollar. This has been done to-day, and the firm finds a handsome surplus to their credit." At 11:30 the run practically ceased. From $30,000 to $40,000 was paid out.

7. May 22, 1884 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, May 22, 1884

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THE WALL STREET PANIC FURTHER DETAILS OF THE GREAT FLUTTER IN NEW YORK. Vanderbilt's Brokers Heady to Reap a Har -Suspended Firms Re. pairing statements The Latest Failures. In addition to the very full report of the panic that prevailed in Wall street yeaterday afternoon week given in the GAZETTE AND JOURNAL telegraphic dis. patches, the following particulars are given It said that the Metropolitan Bank will be able to pay its depositors but that it is not likely resume. The bank' capital was $3,000,000, and its report to the clearing honse last Saturday showed the following as its condition at the time: Loans, $10,977,000 specie, $1,779.000 legal tenders, $491,000 deposits D $8,425,000; circulation, $1,305,000. B. Hatch, of Hatch & Foote, said it impossible for him to state whether their suspension WAS temporary or final. A meeting of the clearing house association was held, at which resolution was of adopted for the appointment committee of five "to receiv from the banks, members of the association, bills receivable or other securities to be appropriated by said committee who shall be authorized to issue therefor to such depositors bank loan certificates bearing interest at per cent per annum not in excess of 75 per cent of securiti or bills receivable, 80 deposi ited, except in case of United State bonds, and said tificates shall be receivable in settlement of balances at the clearing house. This action had a quieting effect, and the and the stock market, which had been greatly demoralized, became firmer in tone. There was run during the day on the Second National Bank notwithstanding an announcement by Examiner It Soriba that the bank was solvent. appears that John C Eno. president of the Second National Bank. had been using its funds in Wall street specula tions, to the amount, rumor said, of $2,000, 000. Whatever the defioit, how ever, it was made good by his father, Amos R Eno, wealthy real estate owner. John c. Eno resigned the presidency of the bank on Tuesday week, and the directors appointed as his suo. cessor James A. Trowbridge, son of former president The president of the Metropolitan Bank is George I. Seney well known philanthropist, who within few years has given to religious and charitable institu tions $1,500,000. The Atlantic State Bank, of Brooklyn, closed its doors in the afternoon. in consequence of the failure the Metropolitan Bank, through which cleared. Its $200.000. capital is The banking honse of T.L. Watson Co., Bridgeport, Connectiont, suspended at o'clock in the afternoon. owing, it WHB said, "to the inability of the Connectiont National Bank, in which they deposit, to honor their drafts. on account of the condition of affairs in New York NEW YORK, May 15 The Metropolitan Bank has posted notice on its doors saying Bank examiners having made investigation its affairs, the bank will resume business noon o-day WALL STREET, 10.15 The bank ing firm of Dimick & Co. has suspended The firm has beon leading promoters Bankers and Merchants Telegraph Com. pauy. The bankers and merchants telegraph stock is now offered at 75 cents against sales at $1.19 yesterday STOCK MARKET BTRENGTHENING NEW YORK, WALL STREET 10.20 The stock market opened strong advances extending from one half to per cent. METROPOLITAN 's NEW PRESIDENT STREET, NEW YORK, May 15 Henry L Jacque has been elected president of the Metropolitan Bank in place of G. Soney, resigned. ALARM AMERICANS IN LONDON. LONDON, May 15 -The failures in Ne York yesterday have caused great anxiety and excitement among Americans resid ing here and having business connections interests in the United States. The anxiety is particularly painful among travelera and many of these have decided suddenly to terminate their trips and retnro to America NEW YORK, May 15 Just before the opening of the xohange this morning, crowd was larger than usual and was waiting for signal to begin. Just clock marked 10 the president raps of the gavel and the pent excitement gave and 500 hands were lifted and the various pools were formed. Five minutes afterwards Dimick failure was announced. great crowd has gathered in the streets again day four nearly within corner every blocks of the centre of operations are gathered knots men in earnest consul. tation. and passers by can hear the various comments OR the state of affairs As rule the majority of those ex pressions of opinion take favorable view the situation, and such phrases as 'the worst is over now. 'the banks are all right, Jay Gould won't let the market break are heard amid the din. Wells, Fargo & Co., have notified Donnell Lawson & Simpson, that they will pay drafts on that firm drawn by the Utah National Bank of Odgen, Utah, Fred Kiesel & Co. of the same place, and of Anderson Bro. '8 of Eagle Rock, Idaho STILL FALLING The stock of the Bankers Merchants' Telegraph Company, yesterday sold at 119,18 now down Mr Dimook of the suapended firm was the chief supporter of the company said to have furnished the capital which to build its lines. Mr Dimock says the trouble has been caneed by the inability to raise money on securities. All nis customers' accounts have been profitable George Patnam Smith has been appointed assignee. are given to customers. LONDON BANKERS ON THE PANIC. LONDON May 15 -The agent of the Associated Press this morning called upon the leading London bankers having important American connections, with view learning their opinions concera the panic yesterday in Wall street The feeling generally expressed was one of confi dence that the panic should be consi merely idered local currence. They were posi tive it would occasion failures no London, either inside or outside the Stock Exchange. The general soundi of the financial situation here is densed by the fact that there have not beer rumors of large failures. The re deoline of American securities during the past few days has attracted new class of investors into the market. are stimulated also by the cheapness money in England, Germany and France. One prominent banker said it was amazing how little real stock was being sold here, but, he said, the bear sales were immense. The market shows a strong disposition to respond to anything favorable from America. The participation of bank officials in in frandulent sohemes was severely censured. This one thing had done more than anything else to weaken public con fidence. BOSTON