7875. E. H. Gay & Co. (Boston, MA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
October 22, 1908
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
1c846364

Response Measures

None

Description

E. H. Gay & Co. was a private bond-dealing banking house in Boston that went into receivership/bankruptcy in October 1908. Newspapers report appointment of John P. Reynolds Jr. as receiver (Oct 22–23, 1908) and attribute failure to heavy exposure to Hudson River Electric Power Company bonds and related railroad/financing losses. No run on the bank is mentioned in the articles; event is a suspension/closure with receiver appointed.

Events (2)
1. October 22, 1908 Receivership
Newspaper Excerpt
John P. Reynolds, jr., was appointed receiver for the banking firm of E. H. Gay & Co., of this city, by Judge Dodge, in the United States District Court to-day. ... The liabilities of the firm are said to amount to about $7,000,000, mostly in connection with the Hudson River Power Company and the Pittsburg and Binghamton Railroad, in which the firm was heavily interested.
Source
newspapers
2. October 22, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy losses and inability to collect on large bond holdings (Hudson River Electric Power Company interest default and costly railroad financing) led to insolvency and petition in bankruptcy.
Newspaper Excerpt
John P. Reynolds, Jr., was today appointed receiver for the banking firm of E. H. Gay & Co., of this city.
Source
newspapers

Newspaper Articles (13)
1. October 18, 1908 The Washington Times Washington, DC
Article from The Washington Times, October 18, 1908

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Article Text

BROKERS FORCED INTO BANKRUPTCY E. H. Gay & Co., of Boston, Go to the Wall. NEW YORK, Oct. 17.-A petition in bankruptcy was filed in the United States court in Boston today against E. H. Gay & Co., of that city and New York. While the amount for which the company is forced into court is nominal, it is said that its debts, secured and unsecured, total between $7,000,000 and $8,000,000. The firm besides its main office in Boston and its branch in this city has other branches in Philadelphia, Montreal, and Pittsburg. It was considered one of the largest private banking houses in Boston, and did a bond, not a stock, business. The probability of a receivership was foreshadowed little more than a week ago, when J. P. Reynolds was put in charge of the affairs of the house as a special representative, at the request of a large number of creditors. This arrangement evidently did not suit others, to whom large sums were owing, and today Elliot Norton, an attorney of this city, representing large creditors-I. Morton Beardsley, of Canton, Pa., and Horace E. Farrington, of Boston-took steps to throw the concern into bankruptcy. The claim of Beardsley is the largest. It is for only $3,068. The firm is composed of Eben Howard Gay and Joseph W. Jackson. It was formed ten years ago and dealt exclusively in bonds. The bankruptcy petition is said to be due primarily to the failure of the Hudson River Electric Power Company to meet its interest on $4,322,000 of the first mortgage bonds that became due in August. Gay & Co. were heavily interested in these bonds. The Hudson River Electric Power Company supplies light and power to its subsidiary companies for the cars of the Mohawk Valley, and furnishes 90 per cent of the power for the General Electric Company, and all the power for the private and public lighting of Troy, Albany, Schenectady, Saratoga, Glens Falls, Oneida, and several other places. The firm was also involved in the financing of the Pittsburg, Binghamton, and Eastern railroad. This was an enormous project involving $20,000,000. The line was to extend from the Pennsylvania coal fields to Binghamton, a distance of 225 miles. When the agreement was made for Mr. Reynolds to take charge of the firm's business on August 8, the firm turned over to him its holdings, which were largely in power and electric companies.

2. October 22, 1908 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 22, 1908

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Receiver for Boston Bank. Boston, Oct. 22.-John P, Reynolds, Jr., was today appointed receiver for the banking firm of E. H. Gay & Co., of this city. The liabilities of the firm are said to amount to about $7,000,000, mostly in connection with the Hudson River Power company, and the Pittsburg and Binghampton railroad.

3. October 23, 1908 New-York Tribune New York, NY
Article from New-York Tribune, October 23, 1908

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RECEIVER FOR GAY & CO. APPOINTED. Boston, Oct. 22.-John P. Reynolds, jr., was appointed receiver for the banking firm of E. H. Gay & Co., of this city, by Judge Dodge, in the United States District Court to-day. Since the petition of three of the creditors of the firm asking that bankruptey proceedings be instituted they have made an examination of the firm's affairs, and to-day consented to the appointment of Mr. Reynolds. The liabilities of the firm are said to amount to about $7,000,000, mostly in connection with the Hudson River Power Company and the Pittsburg and Binghamton Railroad, in which the firm was heavily interested.

4. October 23, 1908 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, October 23, 1908

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BOSTON BANK FAILURE. H. Gay and Co. Have Liabilities Amounting to $7,000,000. BOSTON, Mass., Oct. 23.-John P. eynolds, Jr., was appointed receiver the banking firm of E. H. Gay & 0., of this city. The liabilities of company are said to amount to out $7,000,000, mostly in connection ith the Hudson River Power Co. and e Pittsburg & Binghampton railroad.

5. October 23, 1908 The Ely Miner Ely, MN
Article from The Ely Miner, October 23, 1908

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11 women and children and four men perishing. The forest fires in North- be ern Michigan were reported to raging with most disastrous results. Hundreds made homeless by Michiforest fires need shelter and food gan and Gov. Warner issued an appeal for help. Relief work was started promptly in Detroit and elsewhere. Capt. Peter C. Hains and his brother, T. Jenkins Hains, were indicted in New York for the murder of William E. Annis. Judge David B. Howell of Newark, N. J., committed suicide by shooting. E. H. Gay & Co., bond dealers of Boston, went into the hands of receivers, the liabiliities being estimated at $8,000,000. Turkish troops massacred Armenians in the village of Viran-Shehr and brutally abused the women and children. The German balloon Plauen, which left Berlin in an endurance contest, was picked up in the North sea by a trawler. Clinging to the balloon were the two aeronauts, Hackstetter and Schreider, in an almost exhausted conOne dition. man was drowned and 75 persons were thrown into a panic when the steamer New York of the Albany Day line was rammed by a tug in the North river. Fire destroyed two big salt warehouses in South Chicago, Ill., the loss being about $150,000. Fire caused $500,000 damage in the yards of the Rock Island (III.) Lumber Company and the Rock Island Sash and Door works. Clara Watland, 15 years old, committed suicide at New Sharon, Ia., because her mother scolded her, it is said, for tardiness in returning home from school. It is feared there will be an outbreak of the Sioux Indians at Fort Yates, S. D., if the government order providing for the removal of the Indian graves in the military cemetery there be carried out. The Union National bank of Summerville, Pa., was closed by the bank examiner. William Randolph Hearst was served with papers notifying him that suit for $600,000 had been brought against him for slander and libel by Gov. Charles N. Haskell of Oklahoma in the Douglas county (Nebraska) district court. The German balloon Busley came down in the North sea. The two men on board were rescued by a passing steamer. This is the fourth air craft in the international race to fall into the sea. The American battleship fleet arrived at southeastern Japan but bad weather delayed its entry into Yokohama harbor. Forest fires broke out again in northern Michigan, the towns of Metz and La Rocque being burned and others threatened. John Cook, aged 78 years, in jail at Champaign, Ill., awaiting trial for the murder of Mrs. Edna McLennan, committed suicide by hanging. Cur- 'O 'I JO the JO Reports wood of Detroit by Indians in northern Canada were untrue. The Hindu colony in British Columbia, 2,000 persons, will be moved to British Honduras. About 140 of the students and teachers of the South Lancaster academy at South Lancaster, Mass., are suffering from ptomaine poisoning, believed to have resulted from eating some canned corn. The plants of the Barber Asphalt Company and the Barber Roofing Company at North Venice, Ill., were destroyed by fire. The loss is about $50,000. Frederick S. Baird, a Chicago lawyer, was found guilty by a jury at Omaha of conspiracy. to defraud the government of public lands in Nebraska. A memorial tablet to mark the place where the debate between Abraham Lincoln and Stephen A. Douglas occurred on October 15, 1858, was unveiled at Alton, Ill. Gov. Deneen appointed John R. Marshall of Chicago commanding the Eighth infantry, Illinois National Guard, as commissioner to the national negro fair at Mobile, Ala., in 606T Two more of the balloons in the international race for the James Gordon Bennett trophy have descended in the North sea, and one, the German entry Busley, manned by Dr. Niemeyer and Hans Hiedemann, has not yet been, heard from. Chicago's National league teamthe Cubs-are still champions of the world. They captured the fifth game of the series from the Detroit Tigers inoj Minuing snq7 '0 07 Z JO score e sq games, to one for the Detroits. Chancellor Andrews of the Univer-

6. October 23, 1908 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, October 23, 1908

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REYNOLDS NAMED RECEIVER. He Will Take Charge of The Affairs of E. H. Gay and Company. Boston, Oct. 23.-John P. Reynolds, jr., was appointed receiver for the banking firm of E. H. Gay & Co., of this city by Judge Dodge in the United States district court yesterday. Since the petition of three of the creditors of the firm asking that bankruptcy proceedings be instituted, they have made an examination of the firm's affairs and yesterday consented to the appointment of Mr. Reynolds. The liabilities of the fidm are said to amount to about $7,000,000, mostly in connection with the Hudson River Power company and the Pittsburg and Binghamton railroad, in which the firm was heavily interested.

7. October 23, 1908 The Yale Expositor Yale, MI
Article from The Yale Expositor, October 23, 1908

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Stums, a TOW TITICS BOUCH and the the cars were burned, and children and of 11 Metz, women four North- men perishing. The forest fires in ern Michigan were reported to be raging with most disastrous results. Hundreds made homeless by Michifires need shelter Gov. Warner issued an gan and forest appeal and food for help. Relief work was started promptly in Detroit and elsewhere. Capt. Peter C. Hains and his T. Jenkins Hains, were New York for the dicted brother, in murder inof William E. Annis. Judge David B. Howell of Newark, N. J., committed suicide by shooting. E. H. Gay & Co., bond dealers of Boston, went into the hands of receivers, the liabilities being estimated at $8,000,000. Turkish troops massacred Armenians in the village of Viran-Shehr and brutally abused the women and children. balloon Plauen, which in an endurance left The Berlin German contest, by was picked up in the North sea a to the were aeronauts, the trawler. two Clinging Hackstetter balloon and Schreider, in an almost exhausted condition. One man was drowned and 75 persons were thrown into a panic when the steamer New York of the Albany Day line was rammed by a tug in the North river. Fire destroyed two big salt wareloss houses in South Chicago, III., the being about $150,000. Fire caused $500,000 damage in the yards of the Rock Island (111.) Lumber Company and the Rock Island Sash and Door works. Clara Watland, 15 years old, committed suicide at New Sharon, Ia., her mother scolded her, it is for tardiness in said, because returning home from school. It is feared there will be an outbreak of the Sicux Indians at Fort Yates, S. D., if the government order Inproviding for the removal of the dian graves in the military cemetery there be carried out. The Union National bank of Summerville, Pa., was closed by the bank examiner. William Randolph Hearst was served with papers notifying him that suit for $600,000 had been brought against him for slander and libel by N. Haskell of Oklahoma county Gov. in the Charles Douglas (Nebraska) district court. The German balloon Busley came down in the North sea. The two men were rescued by a This is the fourth on steamer. board air fall passing craft into in the international race to the sea. The American battleship fleet arrived at southeastern Japan but bad weather delayed its entry into Yokohama harbor. Forest fires broke out again in northern Michigan, the towns of Metz and La Rocque being burned and others threatened. John Cook, aged 78 years, in jail-at Champaign, III., awaiting trial for the murder of Mrs. Edna McLennan, committed suicide by hanging. Reports of the murder of J. O. Cur wood of Detroit by Indians in northern Canada were untrue. The Hindu colony in Eritish Colum- to bia, 2,000 persons, will be moved British Honduras. About 140 of the students and teachers of the South Lancaster academy at South Lancaster, Mass., are suffering to from ptomaine poisoning, believed have resulted from eating some canned corn. The plants of the Barber Asphalt Company and the Barber Roofing Com- deat North Venice, Ill., were pany stroyed by fire. The loss is about $50,000. Frederick S. Baird, a Chicago law- at was found guilty by a jury the yer, Omaha of conspiracy to defraud Negovernment of public lands in braska. A memorial tablet to mark the place where the debate between Abraham Lincoln and Stephen A. Douglas occurred on October 15, 1858, was unveiled at Alton, III. Gov. Deneen appointed John R. Mar- the shall of Chicago commanding Eighth infantry, Illinois National Guard, as commissioner to the na- in tional negro fair at Mobile, Ala., 1909. Two more of the balloons in the international race for the James Gordon Bennett trophy have descended in the North sea, and one, the German entry Busley, manned by Dr. Niemeyer been and Hans Hiedemann, has not yet heard from. Chicago's National league teamCubs-are still champions of the the world. They captured the fifth game of the series from the Detroit Tigers four by a score of 2 to 0, thus winning games, to one for the Detroits. I Andrews of the Univerof Nebraska forbade fights sity Chancellor class pain and other students' pranks on of

8. October 29, 1908 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, October 29, 1908

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FINANCIAL Illinois Central's proposed electrification plans call for an expenditure of $25,000,000. The Bethlehem Steel Corporation has secured orders for structural steel aggregating 15,000 tons. The Balkan situation is improving, but foreign Government bonds were generally weak. Twenty railroads in the second wek of October return a decrease of 3 per cent. in gross earnings. Warwick Iron & Steel directors declared a half-yearly dividend of 3 per cent. The La Rose Company, of Cobalt, after paying its 2 per cent. quarterly dividend this week had $436,000 cash in its treasury. According to Price the amount of cotton ginned so far this year is 38 per cent. greater than the amount during the corresponding period of 1907. At its present rate of output the Rand is producing about $140,000,000 of gold a year. Rhodesia's September output was worth $1,000,000. Baldwin's have received an order from the St. Paul Railroad for 12 locomotives and the same company placed orders for 38 more with the American Company. John P. Reynolds, Jr., has been appointed receiver for the failed banking firm of E. H. Gay & Co., of Boston. The firm has a Philadelphia branch under the management of a Warren Coulston, Jr. Canada is taking a little gold from New York. The Boston & Montana Smelte: will go into full operation the first of next month. Full operations mean that the Amalgamated Copper properties will be turning out their normal tonnage of copper. Reports from the Connellsville cok district show that the number 0 idle furnaces increased last week There were on Saturday 17,621 to blast and 20,011 out of blast. Ur to this time last year the output of that region was 16,000,000 tons and this year it is about 7,000,000 tone

9. October 29, 1908 The Champion Arcadia, Bowling Green, FL
Article from The Champion, October 29, 1908

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ceed the late George Porter. Mr. Honghston is a member of the legislature. Tokio, Oct. 24.-Tang Shao Y1, special envoy of the Chinese government; who is making a tour of the world to study financial, industrial and political conditions in various countries, has been received in audience by the emperor at Tokio, John P. Reynolds, Jr., has been appointed receiver for the banking firm of E. H. Gay & Co., of Boston, by Judge Dodge in the United States district court. The liabilities of the firm are said to amount to about $7,000,000. An epidemic of typhoid, which has been prevalent in Montreal for several weeks, past, is assuming serious proportions. All the city hospitals are filled to capacity. The hospital cases alone number 200, while private physicians are overrun with calls. Benjamin F. Gilbert, aged 18 years, has been found guilty of murder in the first degree at Norfolk, Va., his sweetheart, Miss Amanda Morse, whom he shot down July 28, last, when she refused his suit. Counsel for the prisoner has asked for a new trial.

10. October 30, 1908 Lewiston Evening Teller Lewiston, ID
Article from Lewiston Evening Teller, October 30, 1908

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Caused by Gav & Co.'s Failure. Boston. Oct. 30.-The application for a receiver for the Hudson River lower company and seven other corporations in New ork state is an outcome of the recent failure of E. H. Gay & Co., bankers of this city, New York, Philadelphia and Montreal, owing about $2,000,000. Gay & Co. financed all eight companies. The failure of Gay & Co. was attributed to the depression in the bond business and to its attempts to finance the New York state properties.

11. October 30, 1908 The Midland Journal Rising Sun, MD
Article from The Midland Journal, October 30, 1908

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FINANCIAL Illinois Central's proposed electrification plans call for an expenditure of $25,000,000. The Bethfehem Steel Corporation has secured orders for structural steel aggregating 15,000 tons. The Balkan situation is improving, but foreign Government bonds were generally weak. Twenty railroads in the second wek of October return a decrease of 3 per cent. in gross earnings. Warwick Iron & Steel directors declared a half-yearly dividend of 3 per cent. The La Rese Company, of Cobalt, after paying its 2 per cent. quarterly dividend this week had $436,000 cash in its treasury. According to Price the amount of cotton ginned so far this year is 38 per cent. greater than the amount during the corresponding period of 1907. At its present rate of output the Cand is producing about $140,000,000 of gold a year. Rhodesia's September output was worth $1,000,000. Baldwin's have received an order from the St. Paul Railroad for 12 locomotives and the same company placed orders for 38 more with the American Company. John P. Reynolds, Jr., has been appointed receiver for the failed banking firm of E. H. Gay & Co., of Boston. The firm has a Philadelphia branch under the management of J. Warren Coulston, Jr.

12. October 30, 1908 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 30, 1908

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Boston, Oct. 29.-The application for a receiver for the Hudson River Electric Power company and seven other corporations in New York state is an outcome of the recent failure of E. H. Gay & Co., bankers, of this city, New York, Philadelphia and Montreal, who carried about $7,000,000 in obligations. Gay & Co. financad all eight companies. The failure of E. H. Gay & Co. was attributed to the depression in the bond business and to its attempts to finance the New York state properties.

13. October 31, 1908 The San Juan Islander Friday Harbor, WA
Article from The San Juan Islander, October 31, 1908

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Minor Happenings of the Week The supreme court of Nebraska has sustained the legality of the Nebraska blue laws, forbidding almost all Sunday business transactions. John P. Reynolds, Jr., has been appointed receiver of the banking firm of E. H. Gay & Co., of Boston. The liabilities amoun to about $7,000,000. Prince August William of Prussia, fourth son of Emperor William, and the Duchess Alexandra Victoria of Schleswig-Holstein, were married on Thursday last. The Austria-Hungary government has published an order prohibiting the export or transmission through AustroHungary of any war material of any kind to Servia or Montenegro. The Presbyterian synod of Illinois, at a meeting last week, passed resolutions urging the defeat of Speaker Cannon, of the national house of representatives, who is seeking re-election. Whitelaw Reid, American ambassador, unveiled a tablet in the city of Bath, England, in memory of Edmund Burke, the English statesman and orator. The tablet had been set upon the house where Burke lived in Bath. The Pacific cruiser fleet, commanded by Rear Admiral Swinburne, sailed from Honolulu Thursday, with the accompanying torpedo boat destroyers in tow, for the Pacific coast. The cruisers will proceed to Magdalena bay for target practice, after which they will visit the west coast of South America. Nevadans are alarmed over the announcement that another Mormon colony is to be established near Reno. This will make four colonies in as many different sections of the state. Negotiations are pending, it is said, for the sale of the Delmonte hotel at San Francisco, to a syndicate of English capitalists for a consideration of between $2,500,000 and $3,000,000. Delegates representing practically every civilized nation of the world are assembled in Denver to attend the 35th annual convention of the Woman's Christian Temperance Union. Congress will be asked to make an appropriation of $35,000,000 for carrying on the work of the Isthmian canal during the fiscal year 1910, if estimates prepared by the commisson are approved by the war department. The appropriation for the present year is $27,000,000. The, supreme court of the United States has indicated disapproval of the efforts to bring that court into politics at this time by denying the motion to advance the hearing in the case of the Nobel State bank of Oklahoma against Gov. Haskell and others, involving the constitutionality of Oklahoma's bank deposit guaranty law.