City Bank (Schenectady, NY)

Episode Information

Episode UID
7507252891010
Episode Type
Run β†’ Suspension β†’ Closure
Bank Type
trust
Bank ID
750725289 hash
Start Date
February 13, 1884
Location
Schenectady, New York (42.814, -73.940)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
43729ec5488e6b45

Response Measures

None

Description

The bank experienced a run in February 1884 following the failure of a major debtor, but remained open until December 1884 when it suspended permanently after failing to make good on a capital impairment.

Events (2)
1. February 13, 1884 Run
Cause
Bank Specific Adverse Info
Cause Details
The failure of the Jones Car Company, to which the bank was a major creditor ($100,000), triggered a run.
Measures
Other banks tendered aid, but all depositors were paid in full from the bank's own resources.
Newspaper Excerpt
Excitement was caused to-day by a run on the City Bank. Over $50,000 was paid out. The bank is a creditor, to the extent of $100,000, of the Jones Car Company, which suspended payment.
Source
newspapers
2. December 15, 1884 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure of stockholders to make good on a $49,000 capital impairment ordered by the State Banking Department following losses from the Jones Car Works failure.
Newspaper Excerpt
The City Bank of Schenectady suspended this afternoon. ... The bank sustained heavy losses by the failure of the Jones Car Works Feb. 12, 1884. On Sept. 20 Bank Superintendent Paine directed the stockholders to make good in 90 days the deficit of $49,000 in the capital stock.
Source
newspapers

Newspaper Articles (12)
1. February 14, 1884 New-York Tribune New York, NY
Article from New-York Tribune, February 14, 1884

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4 RUN ON A SCHENECTADY BANK. SCHENECTADY, Feb. 13. - Excitement was caused to-day by a run on the City Bank. Over $50,000 was paid out. The bank is a creditor, to the extent of $100,000, of the Jones Car Company, which suspended payment. The run continued till noon. Other banks tendered aid, but all depositors were paid in full, and it is believed that confidence has been restored. The bank organized under the State law with $100,000 capital, and has deposits of $400,000. Its directors are some of the wealthiest men in Schenectady. It is hoped the worst is now over.

2. December 16, 1884 Grand Rapids Morning Telegram Grand Rapids, MI
Article from Grand Rapids Morning Telegram, December 16, 1884

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Those Who Can't Pay Their Debts. SCHENECTADY, N. Y., Dec. 15.-The City Bank of Schenectady suspended this afternoon. The bank had a paid-up capital of $100,000, and its last statement showed a surplus of $15,000, and undivided profits of $27,091. NEW YORK, Dec. 15.-A Levy & Son, importers and manufacturers of goods, 477 Broadway and 50 Mercer street, have made assignment, giving preferences for $65,644. Their total liabilities, as near as can be estimated, are $200,000, and it is thought there will be enough assets to pay their creditors in full. The failure was unexpected as the firm hoped to get an extension.

3. December 16, 1884 Savannah Morning News Savannah, GA
Article from Savannah Morning News, December 16, 1884

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RUIN OF A BIG BANK. The Embarrassment of the Jones Car Company Drags Down its Credit. SCHENECTADY, N. Y., Dec. 15.-The City bank of Schenectady suspended this afternoon. The bank had a paid up capital of $100,000, and its last statement showed a surplus of $15,000 and undivided profits of $27,091. Charles G. Ellis is President and E. N. Schoonmaker cashier. The City Bank sustained heavy losses by the failure of the Jones Car Works Feb. 12, 1884. On Sept. 20 Bank Superintendent Paine directed the stockholders to make good in 90 days the deficit of $49,000 in the capital stock. The bank had a judgment of $49,000 against the Jones Car Works, which the bank department would not recognize as assets. The deficit was nearly subscribed on Saturday, when the directors at a meeting failed to agree, one director refusing to make good his share. The depositors will probably not lose. Deposits were made within an hour before the suspension. A heavy run was made on the bank when the car works suspended, and the bank has since been under a cloud. Hon. Charles G. Ellis, President of the Schnectady LocomotiveWorks. wasin March elected President. succeeding W. McComus, resigned, and his administration revived hope for the bank. There is a conviction that the best has been done for the bank and that the suspension was unavoidable. IMPORTERS FAIL. NEW YORK, Dec. 15.-The firm of Henry Levy & Son, importers and manufacturers of fancy goods, at No. 477 Broadway, filed an assignment to-day for the benefit of their creditors to William H. Gelshner with preferences amounting to $65,644. The firm was established in 1844. The failure is said to be the result of business depression. The liabilities are about $300,000, and the assets $325,000 to $330,000. A SUGAR FACTORY FAILS. VIENNA, Dec. 15.-The sugar factory of Messrs. Megritsch has failed. The liabilities are $600,000. The failure was caused by the stoppage of the Bohemian land mortgage bank. THE CASE PLOW COMPANY'S ASSETS. RACINE, WIS., Dec. 15.-The inventory in the J. I. Case Plow Company, completed todav, shows the assets to be $440,000 and the liabilities $740,000.

4. December 16, 1884 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, December 16, 1884

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GEN ERAL NEWS. The City Bank of Schenectady, N. Y., suspended yesterday. James McIntyre, collector of internal revenue for the district of Delaware, died Sunday night at the residence of his son-in-law, Ex-Postmaster General Cresswell of Elkton. The deceased, who was 75 years old, was appointed collector during the first term of President Grant. Quarantine will be abolished at all the Italian ports next Saturday. Owing to a belief that the American Spanish Commercial treaty will soon be ratified confidence has been restored in Havana, and a considerable rise in public securities and shares has taken place there. A freight train on the Pittsburg & Western railroad ran into a land slide yesterday wrecking seven cars. The engineer was killed and the fireman in. injured tally. The Republic Iron Works at Pittsburg, Pa., resamed operations yesterday at a 10 per cent. reduction. A large part of the hands employed in W. B. Thoms & Co,'s hat factory, in Haverhill, struck yesterday morning owing to a cut down of 10 per cent. in wages. About 175 were at work including 60 women. The card room with 30 bands is running. It is stated that Sunday, the telegraph operators in Boston, representing every company doing business in that city met and forme1 a pretective association and that this action is in common with other operators throughout the country. It is also stated this organization is for protection rather than for the purpose of engineering another strike. Buffalo was visited yesterday by one o the most severe storms of wind and rain ever known in that section, the wind attaining a velocity of 64 miles an hour.

5. December 16, 1884 New-York Tribune New York, NY
Article from New-York Tribune, December 16, 1884

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SUSPENSION OF A BANK. PEOPLE OF SCHENECTADY SURPRISED ADVERSITIES OF THE CITY BANK-HOW ITS CAPITAL WAS IMPAIRED. (BY TELEGRAPH TO THE TRIBUNE.I SCHENECTADY, Dec. 15.-Men walked into the City Bank and made deposits to-day at 11:30 a. m. At 12:30 o'clock people who passed by the bank saw a rough white pasteboard fastened to the door. The board bora the simple inscription "suspended" in irregular black characters. Most of the men who were met on the street aud spoken to in regard to the broken bank said that they had expected. the crash to come sooner or later. and had withdrawn their money. Ii is stated that large sums were paid out this morning. On Saturday afternoon the directors of the bank held a meeting in the directors' room. Strenuous efforts were made to raise the amount necessary to save the bank from suspension, but in vain. One director said that he would subscribe $12,000, and others subscribed smaller amounts. No other banks in the city will be injured by the fall of the City Bank. In the past three months many of the stockholders have endeavored to dispose of stock. but there was no sale whatever for it. The City Bank was organized in 1874 by T. W: McCamus with a capital of $100,000 and was supposed to be in a sound condition up to the first of the present year, when the stock sold for $130 a share. On January 1, 1884, a committee of the Board of Directors was appointed to examine into its condition. The committee, after an investigation, reported in January to the full Board of Directors that the bank was sound. On February 12 the Jones Car Works failed, and on the next day it became known that the City Bank had obtained a judgment for $108,000 against the car company. On the next morning, when the bank was opened, a run began. About $60,000 was drawn out. The bank received many offers of assistance, but these were declined on the ground that the bank was perfectly solvent and able to pay all its indebtedness. The promptness with which depositors were paid brought back confidence in the bank, and toward noon the run was nearly ended. On March 29 the people of Schenectady were surprised to hear that T. W. McCamus, who had been the president of the bank for six years, had resigned. No reason for this act was made public. Two days afterward it became known that Mr. McCamus had transferred all his property to the City Bank. On the day when Mr. McCamus resigned Charles G. Ellis, president of the Schenectady Locomotive Works Company, was elected president, and E. Nott Schermerhorn was made cashier. Mr. McCamus remained in the bank as a director. Confidence in the bank was renewed by these appointments. After the reorganization of the bank its business revived somewhat, and there was hope that it would weather the storm. Confidence was shaken in September, when the shareholders received a notice from Superintendent Willis S. Paine, of the State Banking Department, that an examination by him. filed on September 20, showed that the capital of the bank was impaired to the extent of $40,078 02. The superintendent directed that the deficiency be made good in ninety days from September 20. Many of the shareholders declined to pay the assessment, and this is the reason of the bauk's downfall. The stockholders say that the depositers will be paid in full. Γ€ meeting of the directors was held this afternoon, but President Ellis and Cashier Schermerborn refused to make any statement about the bank.

6. December 16, 1884 The Democratic Leader Cheyenne, WY
Article from The Democratic Leader, December 16, 1884

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WIRE WHISPERS. The Dakota bill and Spanish treaty still hanging fire. No clue to the perpetrators of the London bridge outrage. Henry Levy & Son, importers of fancy goods, New York, failed. Liabilities, mostly foreign, $300,000. Telegraph operators in Boston have formed a protective association. The Galveston operators object to the reduction because of the cost of living there. Schenectady, N. Y., City Bank BUSpended yesterday. Paid up capital $100,000. Last statement showed a surplus of $15,000 and undivided profits of $27,000.

7. December 16, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 16, 1884

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Failure of a Schenectady Bank. SCHENECTADY, N. Y., Dec. 15.-The City Bank of Schenectady suspended this afternoon. The bank had a paid-up capital of $100,000, and its last statements showed a surplus of $15,000; undivided profits of $27,000. Charles G. Ellis, president. and E. N. Shoonmaker, cashier. The bank sustained heavy losses by the failure of the Jones car works, Feb. 12, 1884. When the bank superintendent directed the stockholders to make goodin ninety days a deficit of $49,000 in the capital stock, the bank hada judgment of $49,000 against the Jones car works. which the Bank Department would not recognize as assets. The deficit was nearly subscribed on Saturday, when the directors, at a meeting, failed to agree, one director refusing to give his share. The depositors will probably not lose anything. Deposits were made within an hour of the suspension.

8. December 16, 1884 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 16, 1884

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Bank Suspends. Schenectady, N.Y., December 15The City Bank of Schenectady suspended this afternoon. The bank had a paid up capital of $100,000. Its last statement showed a surplus of $15,000, undivided profits $27,000. Charles G. Geis, ier. president, and E. N. Shoenmaker, cash-

9. December 16, 1884 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, December 16, 1884

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A Bank Faiture. 1By telegraph to the Dispatch.) SCHENECTADY, N. Y., December 15.-The City Bank of Scenectady suspended this afternoon. The bank had a paid upeapital of $100,000. and its last statement showed a surplas of $15,000 and undivided profits of $27,091. Charles G. Ellis is president aud E. N. Schoenmaker cashier.

10. December 17, 1884 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, December 17, 1884

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THE NEWS IN BRIEF. Henry Levy & Son., N. Y., importers, failed Monday for $300,000. 807 There are in the whole country farms, the value of which is $10,197,096,770 TelegraΘ› h operators are said to be or ganizing prote: tive unions throughout the country. Mr. Blaine says that all re] orts of interviews with him since his arrival in Washing .gton are pure fabrications It is estimated that the mother-of-pearl fisheries in Lower California will net $1,705,000 during the year that will close this month. The French chamber of deputies abolished the grant for Catholic theological colleges. The grant was supported by the government. Gen. Sheridan has accepted the position of marshal of the day for the celebration of the completion of the Washington monument, on Feb. 21. The average number of deaths, as between married and single men, according to a London physician, is in the ratio of 10 to 6 in favor of the former. Beginning Jan. 1, the Chicago, Burlington & Quincy road will run a direct train from Des Moines to Kansas City, the route being almost an air line. Mrs. John B. Ruh committed suicide at Peoria, Ills., Monday, by first hacking her wrists with a dull knife, and then cutting her throat from ear to ear. Mr. Charles H. Lee, assignee of the J. I. Case Plow company of Racine, Wis., says that the liabilities of the firm are about $740,000 and the assets $440,000. Chief Justice Waite is ill and confined to his bed. He was Monday absent from his place on the supreme bench for the first time since assuming the duties of his office. The City bank, of Schenectady, N. Y., failed Monday afternoon, but received deposits within an hour of suspension. There is a feeling that depositors will be paid in full. Harry A. Garfield, son of the late president, is appointed class-day operator at Williams college. The other son, J. R., is to be one of the marshals on the same occasion. A stylish widow of Philadelphia, who has already had three husbands, instituted a breach of promise recently, in which her claim for damages was $10,000. The jury, after twelve hours' deliberation, awarded her $25. Mayor Edson of New York city nominated Fitz John Porter for commissioner of public works and Morgan J. O'Brien for corporation counsel. The board of aldermen refused to confirm O'Brien and laid Porter's appointment upon the table. At Erie, Pa., Monday, the Polish Catholic church was leveled by the storm, which ruffled the lake, and destroyed thousands of dollars' worth of fishermen's nets. Freight cars were blown from the track, and forest and orchard trees were torn up by the roots. Iowa farmers indulge bitter feelings toward the railways, which charge them freightage of 17 cents a bushel on corn to Chicago, while the value of the grain is but 13 to 15 cents. The railway commission has taken the matter in hand, and if not vested with full powers already, it will ask the regislature to enlarge the scope of their duties. There is soon to be erected a monument over the grave, in Clarendon, Vt., of Theophilus Harrington, who was from 1803 to 1813 a supreme court justice in that state, and died in that office. It was he who first officially refused to return fugitive slaves to their masters, replying to a slave-hunter who asked him what proof of ownership he would require, "I want a bill of sale from God Almighty."

11. December 18, 1884 Wheeling Register Wheeling, WV
Article from Wheeling Register, December 18, 1884

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THE City Bank, of Schenectady, N.Y., which suspended the other day, did not go to the wall through speculation in Wall street, but by making bad loans, which are more unfortunate than disgraceful. The announcement that the depositors will be paid in full is sufficient evidence that Wall street WSS not concerned.

12. December 26, 1884 The Kimball Graphic Kimball, SD
Article from The Kimball Graphic, December 26, 1884

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mainder of his gallery, one hundred pieces, is given to the Cincinnati museum. Miscellaneous News Notes. Redfield gives up the Spink county records and the war cloud vanishes. Elisha Hyatt, a Washington, Ind, banker, has assigned for $100,000. The official canvas of Montana shows 26,969 votes. Toole, Democrat, has 199 majority. At Indianapolis, Shoemaker asked that further proceedings in the Blaine libel suit be stayed. The City Bank of Schenectady, N. Y., suspended. $100,000. The bank had a paid-up capital of Lieut. Schwatka says the Yukon river in Alaska is as long as from Salt Lake City to New York, and as broad as from Philadelphia to New York. At a meeting of the Board of Erin in Chicago, the highest authority in the society of the Ancient Order of Hibernians, the expulsion of Henry F. Sheridan from the latter body was ordered, on the ground that he had endeavored to convert it into a quasi-political organization. Rev. W. R. Coovert of Pittsburg, at a spiritualists' meeting at Philadelphia, offered to give $500 to any one of them who could produce a phenomenon of slate writing that he could not demonstrate to be a fraud. A wealthy spiritual1st present accepted the challenge, and an arrangement will be made for public trial.