8067. City National Bank (Greenville, MI)

View Charter #3243 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
3243
Charter Number
3243
Start Date
June 1, 1893
Location
Greenville, Michigan (43.178, -85.253)

Metadata

Model
gpt-5-mini
Short Digest
2605b584a30f091f

Response Measures

Full suspension, Books examined

Receivership Details

Depositor recovery rate
27.9%
Date receivership started
1893-06-27
Date receivership terminated
1899-06-24
OCC cause of failure
Fraud
Share of assets assessed as good
39.1%
Share of assets assessed as doubtful
49.6%
Share of assets assessed as worthless
11.3%

Description

Multiple contemporaneous articles (June 22–24, 1893) report a steady run on the City National Bank of Greenville culminating in suspension by Bank Examiner George B. Caldwell on June 22. Examiner took possession; a receiver was reported to be or soon to be appointed and later actions (1896 articles) refer to a receiver and lawsuits showing the bank failed because its president Leroy Moore misapplied large sums. Classified as run → suspension → closure (receiver).

Events (5)
1. August 28, 1884 Chartered
Source
historical_nic
2. June 1, 1893 Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals beginning early June (articles say run continued since June 1) and inability to negotiate loans; later evidence shows president misappropriated large sums.
Measures
None reported to avert withdrawals; bank officers attempted to negotiate loans but were unable to; examiner later took possession.
Newspaper Excerpt
the run on the bank, which has continued since June 1
Source
newspapers
3. June 22, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by bank examiner after a steady run and inability to negotiate loans (stringency of money market); examiner George B. Caldwell took possession.
Newspaper Excerpt
The City National bank of this city was closed this morning by order of Bank Examiner Caldwell.
Source
newspapers
4. June 27, 1893 Receivership
Source
historical_nic
5. June 28, 1893 Receivership
Newspaper Excerpt
the City bank, which is in the hands of a receiver.
Source
newspapers

Newspaper Articles (19)
1. June 22, 1893 Evening Star Washington, DC
Article from Evening Star, June 22, 1893

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COULDN'T REALIZE ON SECURITIES. Why Some Business Concerns With Large Assets Failed. RIDGWAY, PA., June 22. 1 -The Ridgway Bank, a private institution, this morning posted the following notice on its doors: "Owing to the present depressed financial situation, rendering it impossible to realize on securities of any kind, and therefore being unable to meet all obligations, we have decided that it is for the best interests of all creditors of the Ridgway Bank to close its doors. We believe the assets to be in excess of the liabilities and that all depositors will be paid in full as soon as the assets can be realized on. A full statement will be given to the public as soon as the same can be prepared." The notice is signed by D. C. Oyster, president. and I. D. Bell, cashier. A gentleman who was in close consultation with the officials of the bank estimates the assets $364,000 and the liabilities $216,000. This bank has had the confidence of the working people. many of whom have all their wealth in the bank's care. GREENVILLE, MICH., June 22. -The City National Bank of this city WAN closed this morning by order of Bank Examiner Caldwell. No statement of the bank's condition has yet been made public. OMAHA. NEB., June 22. -Sloan, Johnson & Co., wholesale grocers, have assigned. Liabilities are upward of $300,000, with assets about $80.000. SALT LAKE. UTAH. June 22.-The Utah Clothing Manufacturing Company, one of the largest concerns of the kind 111 the territory. was closed yesterday by creditors. The capital stock of the company is $100,000. No statement has been given out yet as to the amonnt of the liabilities or assets. CHICAGO. June 22.-Baird & Bradley, a wellknown real estate firm. nssigned today. The assets are placed at $600,000 and the liabilities at $400,000. Inability to realize on real estate holdings is said to be the cause of the suspension. The partners are Lyman Baird, Wyllys W. Baird and George R. Warner. PORTSMOUTH. OHIO, June 22.-The Citizens Savings Bank assigned this morning to A. F Holcomb and Frank M. Smith. A run on the bank made this step necessary. The liabilities are something over $300,000 and assets over $400,000. The great excitement has spread. and runs more or les strong are being made on the other banks, viz. the Portsmouth National. Farmers' National s, s and First National. and thev are taking ad ie, vantage of the 10 per cent limit. The Little Kanawha lumbering mills are in the hands of 8 receiver. The failure of the Citizens' will em T. barrass some of the manufacturers here.

2. June 23, 1893 Grand Rapids Herald Grand Rapids, MI
Article from Grand Rapids Herald, June 23, 1893

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GREENVILLE BANK CLOSED. The Stringency of the Money Will Not Affect the Town. GREENVILLE, Mich., June 21-The following notice appears on the door of the City National bank this morning: "Owing to the continued withdrawal of deposits and the stringency of the money market. this bank is closed and in my possession. (Signed) GEORGE B. CALDWELL National Bank Examiner. The suspension caused no excitement for money is free here, 69,000 having recently been paid in for potatoes. Mr. Caldwell makes this statement regarding the situation: Deposits, 8210. 000: assets, 8312.000; capital stock. 850,000. The stockholders are all responsible and the majority of the securities are mortgages. A receiver will probably be appointed and dollar for dollar paid.

3. June 23, 1893 The Morning News Savannah, GA
Article from The Morning News, June 23, 1893

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A Michigan Bank Suspends. Greenville, Mich., June 22.-The City National bank of this city was closed this morning by order of bank examiner Caldwell. No statement of the bank's condition has yet been made public.

4. June 23, 1893 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 23, 1893

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Business Embarrassments GREENVILLE, Mich., June 22.-The City National Bank suspended payment this morning, and George B. Caldwell, bank examiner, took possession. The failure 18 due to & steady run on the bank, $52,000 having been withdrawn in three weeks, and the inability of the bank officers to negotiate loans, although they had kilt edge security. The examination up to this time shows deposits of $210,000, and assets of $312,000. BOSTON, June 22.-Creesy & Noyes, contractors and builders. and Benning C. Noyes & Co., furniture manufacturers, have made an assignment. Mr. Creesy is president of the Little Kanawha Lumber Company. which lately went into the hands of a receiver. and the assignment of the two aboye-mentioned firms is due to their being involved as indorsers on the paper of the company. CHICAGO, June 22.-Baird & Bradley. a well-known real estate firm, assigned today. The assets are placed at $600,000 and liabilities at $400,000. Inability to realize in real estate holdings is said to be the cause of the suspension. The partners are Lyman Baird, Wyllis W. Baird and George R. Warner. RIDGEWAY, Pa., June 22.-The Ridgeway Bank, a private institution, has suspended. The assets are estimated at $564,000 and the liabilities at $216,000. Many working people have all their means in the bank's care. NEW YORK, June22.-D. MeD. White, of the Consolidate Stock Exchange, has aunounced bisinability to meet contracts.

5. June 23, 1893 The Herald Los Angeles, CA
Article from The Herald, June 23, 1893

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Eastern Bank Failures. GREENVILLE, Mich., June 22.-The City National bank suspended this morning and the bank examiner took possession. The failure is due to a steady run on the bank and the inability of the bank officers to negotiate loans. Ae far as known the bank's deposits are $210,000, assets $312,000. RIDGWAY, Pa., June 22.-The Ridgway bank has failed. Assets, $364,000, liabilities, $216,000.

6. June 23, 1893 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, June 23, 1893

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Bank Examiner Takes Charge. GREENVILLE, Mich., June 22.-The City National bank suspended this mornng and the bank examiner took possession. The failure is due to a steady run on the bank and inability of the bank officers to negotiate loans. So far as known the bank's deposits are $210,000, assets $312,000.

7. June 23, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, June 23, 1893

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THE FAILURE CROP. A Large Coffee House in New York Suspends. NEW YORK, June 22.-The failure of Henry Sheldon & Co., tea and coffee dealers at 109 Front street, is announced. The firm is one of the best known coffee houses on the street and have done a large business. They are highly rated in the commercial agencies, and the resources are between $200,000 and $300,000. D. McD. White, of the Consolidated Stock Exchange, has announced his inability to meet contracts. BOSTON, June 22.-Creesy & Noyes, contractors and builders, and Benning C. Noyes & Co., furniture manufacturers, have made an assignment. Mr. Creesy is president of the Little Kanawha Lumber company, which lately went into the hands of a receiver, and the assignment of the two above-mentioned firms is due to their being involved as endorsees on the paper of that company. GREENVILLE, Mich., June 22.-The City National bank, of this city, was closed this morning by order of the bank examiner, Caldwell. No statement of the bank's condition has vet been made public. The cause of the suspension was the steady withdrawal of deposits and the stringency of the money market. RIDGEWAY, Pa., June 22. - The Ridgeway bank, a private institution, has suspended. A gentleman who was in close consultation with the officials of the bank during the night estimates the assets at $364,000, and the liabilities $216,000. This bank has had the confidence of the working people, many of whom have all their means in the bank's care. SANTA ANA, Cal., June 22.-The First National bank and the Commercial Bank of Santa Ana did not open their doors this morning, owing to heavy withdrawis of deposits and inability to collect fast enough. Both are declared to be solvent, have ample assets and can in time pay in full. POMONA, Cal., June 22. -The People's bank did not open this morning. This notice was on the door: "Owing to the existing financial stringency, the board of directors of this bank have decided to temporarily close its doors. Depositors will be paid in full." Los ANGELES, Cal., June 22.-A careful review of the banking situation indicates that the financial atmosphere is clearing. The arrival of a large amount of coin from the North, aggregating $250,000, and the announcement that $500,000 more would arrive today had a reassuring effect. The Farmers and Merchants' bank received $500,000 additional this morning, and opened its doors with over a million of coins in its vaults, more than enough to meet all demands. It is estimated that about $8,000,000 has been withdrawn from the banks during the

8. June 24, 1893 The Sun New York, NY
Article from The Sun, June 24, 1893

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Other Bank Failures, MINNEAPOLIS, June 23.-The State Bank of this city suspended payment this morning. the assurance being given to depositors that it would resume in a few days. The bank has a paid-up capital of $75,000. Steady withdrawals by depositors were the cause of the action. The bank is one of the smaller ones of the city. SEATTLE, June 23.-A special from New Whatcom. Wash.. says the First National Bank closed its doors at noon yesterday. Inability to realize on its securities is the cause given for suspension. The bank's officials state that their assets are double their liabilities. and that depositors will be paid in full. GREENVILLE. Mich., June 23.-The failure of the City National Bank. which suspended payment yesterday, was due to a steady run on the bank. which has continued since June 1. The examination up to this time shows deposits of $210,000 and assets of $312,000. It is not known yet whether the bank will be able to resume or will be compelled to go into a receiver's hands. The bank was examined on Sept. 28. 1892. and reported in good condition. INDIANAPOLIS, June 23.-The First National Bank of Kendallville suspended payment today.

9. June 28, 1893 The Star Reynoldsville, PA
Article from The Star, June 28, 1893

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LATER NEWS WAIFS. FINANCIAL AND COMMERCIAL Comptroller Eckels has been officially in formed of the failure of the following National banks: The first National Bank of Kendallville, Ind.; the First National Bank of Santa Anna. Cal.; and the First National Bank of Whatcom, Wash. He has ordered Bank Examiner Packard to take charge of of the Kendal'sville bank. At San Francisco the Pacific bank has closed. The Peoples Home Saving bank, under the same management, has also,gone down. At Greenville, Mich., the City National bank has suspended. The Cataract bank, Niagara Falls, N. Y.. the largest bank in Niagara county, closed its doors. The New York clearing-house committee authorized the taking out onFriday of $450,000 in clearing-house certificates. The total now outstanding is $5,350,000. The East Side bank, Los Angeles, Cal., opened its doors again on Saturday morning. This is the first of closed banks to resume. A feeling of confidence has returned. The other banks will open in a day or two except the City bank, which is in the hands of a receiver.

10. June 28, 1893 Watertown Republican Watertown, WI
Article from Watertown Republican, June 28, 1893

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A 5-YEAR-OLD son of William Atherton, of Guthrie, O. T., while playing the about some building stone, pulled pile down on himself and was killed. ANDY MULDOON, an oil well shooter, was hauling 200 quarts of glycerine to Guffey Station, Pa. The wagon was overturned and an explosion ensued, which left nothing of Muldoon and his horses but shreds of flesh. PRINCESS EULALIA has presented to Robert A. Parke of the Pennsylvania Railroad, a beautiful and costly dagger, highly ornamented and inlaid with jewels. Mr. Parke had personal charge of the train in which the Princess traveled. A NEW YORK dispatch says that Mrs. Eleanor Fletcher Bishop, the mother of the late Washington Irving Bishop, the famous mind-reader, masannounced her marriage to Lucius Langdon Nicholas, whoi is said to be a great-great-grandson of an emperor of Russia. JOHN CRAMER and Charles Kennel tempted to drive across the tracks of the Reading Railroad Company at Philadelphia in front of an express train. The engine struck their wagon, demolishing it and instantly killing Cramer. Kennel's leg was broken and he was terribly bruised. MGR SATOLLI, papal delegate, is in St. Paui. THE People's Bank at Pomona, Cal., has closed. CONGRESS will be asked to establish a national board of health. THE Bank of Commerce at San Francisco has closed its doors. THE First National Bank of New Whateom, Wash., has failed. A RECEIVER has been appointed for the Omaha & St. Louis Railroad. THE armored cruiser Maine was launched at Brooklyn navy yard on June 22. LETTERS of credit on Europe SO far are not more than 20 percent of the amount last year. THE City National Bank of Greenville, Mich., has failed. The deposits are $210,000. A CORRESPONDENT in Rio Janeiro telegraphs that the Vatican envoy there has been removed. TYPUS FEVER has broken out in the garrison at Munich. It is due to the quality of the food. THE Reading and Grand Trunk roads have formed a close traffic arrangement. The alliance is important. WILLIAM KLINE, of Brightwood, Ind. was murdered while asleep at his home. A hatchet was the weapon. ALNIN G. CLARKE, missing from Home City, O., has been found in Chicago. Creditors will be paid in full. BURGLAR HENDERSON has confessed to the murder of John Tarpin at Haughville, Ind. He is under arrest. POPULIST railway commissioners in Kansas are preparing for an onslaught upon freight tariffs in that state. DECATUR'S grand jury caused surprise by returning no indictment against the lynchers of Sam Bush, the negro. THE Rev. Rodney Edwards, formerly pastor of Trinity Church in San embez- Francisco, was arrested charged with zling $1,200 trust funds. IT is said Justice Fitzgerald, of the California supreme court, will be named by Gov. Markham as United States senator to succeed Mr. Stanford. SEWARD A. SIMONS, a lawyer of Buffalo, is on trial for violating the alien labor law. He is accused of sending to Canada for a coachman and a gardener. PETITIONS have been addressed to Flower, of New York, declaring Tonathat Gov. troops are not needed at wanda and asking their withdrawal. THE Duke of Veragua has sent a letter to Secretary Gresham thanking the government for the manner in which he was entertained while in the United States. RAINMAKER MELBOURNE has made a contract with Senator Warren and other citizens of Laramie County, Wyo., to produce one-half inch of rain within the next five days. THE Iowa Republican convention will meet at Des Moines August 15. NINETEEN persons were prostrated by heat in New York on the 20th. JAMES GRANGE, a bookbinder at New York, assigned to Andrew Gilhooly with preferences of $20,736. THE Citizens' Exchange Bank, the of Grant, Neb., has closed its doors, State Banking Board taking charge. RATES of $51 first class and $33 second were St. Paul to San Francisco, class, announced by the Great Northern. JAMES McCLAY, charged with placing Centies the tracks of the Michigan tral Railroad with a view of wrecking a train, was convicted at Saginaw, Mich A STEADY improvement in the condiof labor is shown by the report of a tion sub-committee of the Senate committee on finance on prices and wages for fifty years. THE death is announced at New York of Mareschal Jose Simeaode Oliveria, of Brazil, president of the Brazilian com- Exmission to the World's Columbian position. JUSTICE BEACH, of New York, granted Blanc a decree of absolute Frederick from Elizabeth Blanc, the divorce "Baroness." She is enjoined from the use of his name. IT has been learned that Ralph E. Gaylord, who left Omaha, Neb., sixty have days ago, and who was thought to He insane, is in financial distress. debts. has been probably fled to escape his PHIL Eddy, who was to have been to the beautiful and accommarried plished Widow Davis, at Columbus, is said to have robbed her of $300, which Ind., she had intrusted to his keeping. WALTER BESANT, the English novelist, has arrived at New York. Miss LOUISE ESTLING committed suicide at Sedalia, Mo., by hanging. MGR. SATOLLI' attitude on the school Pope. question is again indorsed by citizen the of PHILLIP GRAVER, a wealthy Allegheny City, Pa., committed suicide

11. June 29, 1893 Echo De L'ouest Minneapolis, MN
Article from Echo De L'ouest, June 29, 1893

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Faillites da Banques La "City National Bank" de Greenville Mich. 8 suspendu ses paiements. Est fermée également la "Ridgeway Bank" de Ridg way Pa. Passif 236000 doilars. La Todd County Bank de Long Praire Minn a fait faillite. La "St Paul & Minneapolis Trust Co" de Minnespo'is dont l'ex gouverneur A. McGill est président a déposé son bilan. L'inspecteur des banques M. Caldwele a ordonné la fermeture de la "Cty National Bank" de Greenville Mich. Passif encore inconnu. La "Queen City Bank" de Buffulo N. Y. ayant un capital de 600,000 dollars a suspendu ses paiemente. Fredman & Fredman de Chicago ont déposé leur bilan ainsi que Sherman & Byrne de New-York et Creety & Noyes de Boston. L'American Exchange Bank de Minheapolis a fermée BES portes. La "First National Bank" et la Commercial Bank" toutes deux de Santa Anna Cal. n'ont pas ouvert leuis portes samedi dernier. Les portes de la "Peoples Bink" de Pomoma Cal. sont restées her métiquement closes lundi matin. La "Bank of Commerce" de San Diego, Cal. a fait faillite. Il en est de même de la "Loan & Savinga Bank" de Tresno Cal La "State Bank" et la "Bank of New England" de Minneapolis ont suspendu leurs paiemente. MM. B iri et Bradly de Chicago ont fait faillite. Passif 400,000. Tombées également: "The Sabina Bank" of Wilmington, Ohio et la "Bank of Ness City," Kansas. Quand donc la serie sera-t-elle terminée?

12. June 29, 1893 Eagle River Review Eagle River, WI
Article from Eagle River Review, June 29, 1893

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NEWS PARAGRAPHS. DR. McGLYNN has returned to New York from Rome. and Savings has no, THE Cal., Loan suspended. Bank of FresTHE Bassett planing mill at Minneapolis was burned. The loss is $50,000. GERMANY has broken off the negotiations with Russia for a commercial treaty. THE Minnesota Sangerbund at St. Paul elected Carl Heerle of Duluth president. E. H. TODD, a Quincy, Ill., carriage manufacturer, committed suicide with revolver. MILTON BOYER was adjudged insane at a Galesburg, Ill. He shot his sister week ago. The Turner & Seymour hardware factory at Torrenton, Conn., burned with a loss of $85,000. THE Braddock wire mills at Rankin, Pa., have been shut down and 700 men are out of work. CHINA asks a new treaty with the United States in view of the immigration situation. FRANK HAYES, 19 years old, was sentenced to imprisonment for life at Detroit for murder. BURGLARS robbed the safe of the Buckeye dry goods store at Terre Haute, Ind., of $600 in cash. MRS. JENNIE JOHNSON committed suicide at Cleveland by leaping from a fourth-story window. PRESIDENT CLEVELAND has accepted Col- an invitation to attend the Williams 1ege centennial celebration. REAR ADMIRAL MARKHAM and the court- offiof the Camperdown are to be martialed cers for the Victoria disaster. A UNION of French-Canadians and other Catholics in the Dominion urged by ex-Premier Mercier, of Quebec. TWENTY plantations were flooded beNew Orleans by a break in the low levee. The loss will amount to $1,000,000. BURGLARS robbed the hardware store G. E. Vanderveen, the grocery of Smeenge, of and the post-office at Holland, Mich. FIVE men were entombed in a mine Swissvale, Pa., by a fall of earth. will near All were rescued, but Henry Kane probably die. IN order that holders of Reading genmortgage bonds may receive their eral interest, arrangements are being aucmade July to sell the coal on hand at tion. A 5-YEAR-OLD son of William Atherof Guthrie, O. T., while playing the about ton, some building stone, down on himself and was pile well pulled killed. ANDY MULDOON, an oil shooter, hauling 200 quarts of glycerine was to Guffey was Station, Pa. The wagon overturned and an explosion ensued, his which left nothing of Muldoon and horses but shreds of flesh. PRINCESS EULALIA has presented to Robert A. Parke of the Pennsylvania Railroad, a beautiful and costly dagger, with ornamented and inlaid highly Mr. Parke had personal charge travof jewels. the train in which the Princess eled. A NEW YORK dispatch says that Mrs. Eleanor Fletcher Bishop, the mother the of the late Washington Irving as announced her Bishop, famous marriage mind-reader, to Lucius Langdon Nicholas, who is said to be a great-great-grandson of an emperor of Russia. JOHN CRAMER and Charles Kennel at tempted to drive across the tracks Phil- of the Reading Railroad Company at adelphia in front of an express demol- train. The engine struck their wagon, it and instantly killing Cramer. was ishing Kennel's leg was broken and he terribly bruised. MGR SATOLLI, papal delegate, is in St. Paui. THE People's Bank at Pomona, Cal., has closed. a CONGRESS will be asked to establish national board of health. THE Bank of Commerce at San Francisco has closed its doors. THE First National Bank of New Whatcom, Wash., has failed. A RECEIVER has been appointed for the Omaha & St. Louis Railroad. THE armored cruiser Maine was on launched at Brooklyn navy yard June 22. LETTERS of credit on Europe so far are not more than 20 percent of the amount last year. THE City National Bank of Greenville, Mich., has failed. The deposits are $210,000. A CORRESPONDENT in Rio Janeiro telegraphs that the Vatican envoy there has been removed. TYPUS FEVER has broken out in the garrison at Munich. It is due to the quality of the food. THE Reading and Grand Trunk roads have formed a close traffic arrangement. alliance is important. WILLIAM KLINE, of Brightwood, home. Ind., was murdered while asleep at his A hatchet was the weapon. ALNIN G. CLARKE, missing from Chicago. Home City, O., has been found in Creditors will be paid in full. BURGLAR HENDERSON has confessed Haugh- to the murder of John Tarpin at ville, Ind. He is under arrest. POPULIST railway commissioners onslaught in Kansas are preparing for an tariff's in that state. grand jury caused surprise the upon DECATUR'S freight against by returning no indictment lynchers of Sam Bush, the negro. THE Rev. Rodney Edwards, formerly Franof Trinity Church in San cisco, pastor was arrested charged with embezzling $1,200 trust funds. is said Justice Fitzgerald, of the California IT supreme court, will be named

13. November 4, 1896 The Copper Country Evening News Calumet, MI
Article from The Copper Country Evening News, November 4, 1896

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OF INTEREST TO BANKERS. Suit Which Has Been Submitted to the United States Court. Grand Rapids, Mich., Nov. 3.-A suit of more than usual Interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced, showing Moore's methods, is sensational in its nature.

14. November 4, 1896 The True Northerner Paw Paw, MI
Article from The True Northerner, November 4, 1896

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MICHIGAN PICKINGS. WHAT 13 GOING ON IN OUR OWN STATE. Items Whsch Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced, showing Moore's methods, is sensational in its nature.

15. November 6, 1896 The Times Owosso, MI
Article from The Times, November 6, 1896

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MICHIGAN PICKINGS. WHAT IS GOING ON IN OUR OWN STATE. Items Whsch Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced. showing Moore's methods, is sensational in its nature.

16. November 7, 1896 Arizona Republican Phoenix, AZ
Article from Arizona Republican, November 7, 1896

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ARE THEY LIABLE? Important Legal Question Submitted to the Court. GRAND RAPIDS, Mich., Nov. 6.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John Foster, directors. Leroy Moore was president of the bank. When it failed in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and one-half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore, and the directors continued to let him have his way, and he increased his liability by $54,000 before the failure. The sult is to determine whether the directors can be held financially responsible for the neglect of duty for permitting Moore to continue his loaning.

17. November 11, 1896 The True Northerner Paw Paw, MI
Article from The True Northerner, November 11, 1896

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MICHIGAN PICKINGS. WHAT 13 GOING ON IN OUR OWN STATE. Items Whech Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors, Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced. showing Moore's methods, is sensational in its nature.

18. December 18, 1898 The Herald Los Angeles, CA
Article from The Herald, December 18, 1898

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National Bank Changes According to the latest bulletin of the comptroller of the currency, of date December 12th, the following changes have taken place: National Banks Organized.-The Calcasieu National bank of Lake Charles, Louisiana; capital, $100,000. H. C. Drew, president; Frank Roberts, cashier. (Date of certificate, December 6, 1898.) The National Hamilton bank of Boston, Mass.; capital, $500,000. Henry G. Denny, president; Geo. H. Davenport, cashier. (Date of certificate, December 7, 1898. ) Applications to Organize National Banks Approved.-The Western National bank of Oklahoma City, Oklahoma territory, with a capital of $50,000, by the following persons: M. L. Turner, Guthrie, Oklahoma; A.L. Frick and others. The Citizens' National bank of Springfield, Ohio, with a capital of $100,000, by the following persons: Edward S. Buckwalter, Springfield, Ohio; John L. Zimmerman, Charles S. Kay and others. Liquidation.-The Pontiac National Bank, Pontiac, Mich. The Farmers and Merchants' National bank of Hickman, Ky. The Globe Natonal bank of Cheago, Ill. Insolvent/The First National bank of Flushing, Ohio; Henry M. Davies appointed receiver in place of James W. De Lay. The City National bank of Greenville, Mich.; Thomas A. E. Weadock appointed receiver.

19. September 28, 1906 The Evening Times Grand Forks, ND
Article from The Evening Times, September 28, 1906

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of Address William Barret Ridgely COMPTROLLER OF THE CURRENCY. Delivered Before the Pennsylvania Bankers Association at Philadelphia, Pa., Thursday Evening. making or causing to be made tho Except from very rare and exceptional causes, such as sudden panics ough examinations and audits of th or runs due to false rumors. there is bank books. and checking up not onl never any reasonable excuse for the the clerks and minor officials, but als failure of a bank or trust company It is almost always the result of inthe presidents, cashiers and manag excusable folly and incompetence or ing officers. There are, however, sti dishonesty and fraud, and often due too many cases where the director a to all of these combined When content themselves with choosing of bank does fail. it is the fault of the ficers whom they believe to be hones board of directors Many others may and competent and leaving everythin be to blame, perhaps more than the directors, but the final responsibili* to them. Fortunately when the righ kind of officers are chosen, the result of bank management rests upon the obtained are often quite as good a directors, and they are to blame. that is, the whole board as a board and when the directors follow up the busi the members as individuals are to ness more closely There is much t blame if they allow the officers or perbe said in favor of one man manage haps only a few of the directors. to so ment of any business and especiall; manage the business of the bank as to of a bank, when you have the righ bring on insolvency It may be the man in the right place It is apt t be vigorous, efficient and successful president or cashier who commits in detail the acts or crimes which wreck Many of the great banks of the world as well as the most successful rail a bank: the directors may be entirely ignorant of what is being done. but ways, industrial and commercial en it is their fault if they allow themterprises, owe their commanding suc selves to be kept in ignorance or to be cess to the genius of one strong mar who, by his force and high character deceived and thus permit it to be done has completely dominated their af It is the duty of the directors of a fairs. bank to keep themselves informed When a board of directors finds such about its business and to so direct its affairs as to prevent its failure a man, or when he finds himself an chooses a board of his own to sup The laws under which most joint Ir port him. it makes a great bank stock banks are organized define the most cases even where a great genius duties and responsibilities of directors is no chosen, the directors elect to in practically the same terms. The office men of high character and suf National Bank Act provides that The ficiently ability American banks. cer affairs of each association shall be tainly since the civil war have been managed by not less than five direc very successful The record of the tors,' and that "each director when national banks is remarkable in the appointed or elected, shall take an oath small number of failures and the comthat he will. so far as the duty de paratively small amount lost to devolves on him, diligently and honestly positors ot the many billions of doladminister the affairs of such associa lars on deposit The trust companies tion, and will not knowingly violate or and the banks cf many states have willingly permit to be violated any highly satisfactory and commendab of the provisions of this title records These records have been In many cases the federal courts largely made by banks run entirely by have declared that a director's duty is their officers with little real supervinot discharged by merely electing sion by the directors, for such manofficers of good reputation, ability and agement has been the rule rather than integrity to manage a bank and then the exception. leaving its business in their hands The success gained is a tribute The board of directors. the courts have mainly to the judgment of directors in held. is bound to maintain a superchoosing their officers and the honesty vison of the affairs of their associaand ability of the American bank of tion, and to have a general knowledge ficer The results are better than one of the character of its business and the might have supposed, but they are not manner in which it is conducted, and as good as they should be The weak. to know at least upon what security ness and shame of American banking its larger lines of credit are given is that more often than it should hapThe United States supreme court depen. there are scandalous failures of cision most in point is the case of banks which have been robbed and Briggs vs Spaulding, which was suit lotted by officers who had so gained brought by the receiver of the First the confidence of their shareholders National Bank of Buffalo against the and directors as to be given absolute defendants directors. for failure control of the business with little or to perform faithfully and diligently the no supervision check or examination duties of their offices: that they had on the part of the directors failed to call and hold meetings an There is no excuse for such robbery point any committee of examination of a bank It can not happen where require bonds or make personal ex the directors are honest and doing amination into the conduct and man their duty It is no answer for the agement of the affairs of the bank but directors to sav they had confidence allowed the executive officers to mianin their officers and did not know the age it without supervision In render real condition It is their business and ing its decision, the court said. Mr their sworn duty to know the condi Chief Justice Fuller delivering the tion. and to prevent such stealing opinion It is no answer. either to blame the Without reviewing the various bank examiner or the supervising audecisions on the subject, we hold thority The examiner and the bank that directors must exercise oring department may or may not be to dinary care and prudence in the blame. Sometimes they are at fault in administration of the affairs of the not having discovered conditions soon bank, and that this includes some er. But the examiner can not an thing more than officiating as should not be expected to entirely pre figure-heads. They are entitled vent wrond doing in a bank except SO under the law to commit the bank far as fear of detection may do so ing business, as defined to their The examiner does his duty if he disduly authorized officers but this covers dishonesty and crime after it does not absolve them from the is committed He can do nothing unti some, perhaps all, the harm is done duty of reasonable supervision nor ought they to be permitted to until the loan is made the forged note be shielded from liability because is in the bank the fraudulent entry of want of knowledge of wrong made and the money gone. It is for doing. if that ignorance is the rethe examiner to discover fraud It is sult of gross inattention (Briggs the directors' business to prevent it vs. Spaulding, 141 U S. 132.) If they do not, they are guilty of crim inal intent or almost equally crimina In the case of Gibbons vs. Anderson neglect. No officer can rob and ruin et al. decided by the United States a bank. unless the directors are his circuit court for the western district confederates or his dupes of Michigan April 21, 1897. suit was For probably the same reason that brought by the receiver of the City we all think all men are mortal, but National Bank of Greenville, to estabourselves, bank directors are apt to lish the liability of defendants who believe their bank and its officers are were directors of the bank. for negliexceptions to the rule and to feel such gence in their performance of their absolute confidence in them as to al duties as such One of the directors low them to continue to run the bank of the bank Moore. from the organibusiness as they always have done zation of the institution dominated the without close supervision and with lit bank and through his malversation of tle or no searching examination. Have the funds the bank failed The other we not, they say to themselves, known directors, the defendants in this suit. these men all their lives Are we claimed to have been ignorant of any not sure they are honest? Do we no thing wrong in the affairs of the bank unitl it failed The court, by Justice know they are able and faithful? Hap pily in the great majority of cases they Severens, district judge, said referring do. But they must remember it is to the case of Briggs vs. Spaulding men with just such reputations who In my opinion it does not meet occassionally turn out to be scoun the requirement of this statedrels, and are discovered too late to ment of the law that directors have been faithless to every relation may confide the management of in life and to have robbed and deceived the operations of the bank to a every one who has trusted them. How trusted official. and then repose frequently it seems that they plunder upon their confidence in his right the most ruthlessly those whom they conduct, without making examinawould seem most in honor bound to tions themselves, or relying upon protect It must be remembered that his answers to general questions it is only men who have the talent: put to him with regard to the to establish reputation for capacity status of the affairs of the bank. probity and honor. who get the chance The idea is not to be to commit such crimes They are gentolerated that they serve as mere erally men of unusual talents bank ly gilded ornaments of the insti wrecker is never fool It takes tution. to enhance its attractiverather exceptional ability to first ac ness, or that their reputations quire a position where it is possible should be used as a lure to cusand then to carry out the plan Only tomers It is inconsisa man of considerable nerve and cour tent with the purposes and policy age would dare to try such a thing or of the banking act that its vital could carry it on without early dis interests should be committed to covery. What I wish to impress mos one man, without oversight and on any bank director who may happen control (Gibbons vs. Anderson to hear or read what I say, is that 80 Fed, Rep., 345.) it is men who have just as high reputa We thus see that the highest courts tions and stand just as well amon have decided and confirmed what is their friends and associates as the mer the inevitable conclusion from any you are trusting, who occasionall thoughtful consideration of the subcommit these gigantic frauds in banl ject, that directors must actually dir management No bank director o ect the affairs of their bank, and for a shareholder who hears or reads this director to fail to do so is to violate can fail to remember a case or many his oaht and disobey the law in mancases where men whose intimate ner for which he is not only morally friends and closest business associates but legally responsible had the same reason to trust them at This is not any view of the relationyou have to trust the officers of your ship of directors to their trusts, but swindled their closest friends an is as old as the management of joint neighbors bringing shame, sorrow an stock companies by boards of direcruin on all who had blindly depende tors, chosen by the shareholders to upon them. Your men may be all you represent them It is the only tenable think them; most of them are: let u theory in relation to a director's duty hope that all of them are; but you and responsibility How thoroughly is who are both morally and legally re sponsible can it actually carried out in practice? In