8186. Newton National Bank (Newton, MA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 789
Charter Number: 789
Start Date: July 27, 1867
Location: Newton, Massachusetts (42.337, -71.209)

Metadata

Model: gpt-5-mini
Short Digest: d04b76c3

Response Measures

None

Description

Contemporary July 1867 dispatches report the Newton National Bank as 'lately defunct' with a receiver appointed and liabilities collected and forwarded to Washington. Causes cited are defalcations, bad management, and forged paper (embezzlement). No article describes a depositor run prior to suspension; the bank is described as failed/defunct and placed in receivership (permanent closure). A later 1883 article notes recovery of funds from government litigation, included as an 'other' event.

Events (5)

1. February 8, 1865 Chartered

Source: historical_nic

2. July 27, 1867 Receivership

Newspaper Excerpt: The newly appointed receiver of the Newton National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington.
Source: newspapers

3. July 27, 1867 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Defalcations and bad management; forged paper (William H. Lane) and embezzlement/defalcation by cashier/officers
Newspaper Excerpt: Defunct Newton (Mass.) National Bank. BOSTON, Mass., July 27.-The newly appointed receiver of the Newton National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington.
Source: newspapers

4. February 23, 1883 Other

Newspaper Excerpt: At a meeting today of the stockholders of the Newton Bank they were informed that the total sum of $371,000 had been recovered from the Government.
Source: newspapers

5. May 15, 1908 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (10)

1. July 29, 1867 New-York Tribune New York, NY

Article from New-York Tribune, July 29, 1867

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NATIONAL BANK FAILURES. It is reported that the National Bank at Unadilla, in Otsego County, New-York, has failed, with liabilities said to amount to $200,000. The bank was chartered about 12 years ago, under the old Safety Fund law of this State, and about two years since it took its na. tional character, with a capital of $150,000, and power to increase to $250,000. Its officers were Arnold B. Watson, President, and Clark J. Hayes, Cashier. The President, it is said. owned $100,000 of the capital, and the balance was in the hands of the Cashier and some relatives in Albany. It is reported that the assets of the bank will not go far toward meeting its liabilities. The assignment of the Unadilla National Bank is a general one, and the institution is still kept open according to law, though doing no business. A receiver from Washington has been applied for, and will probably arrive in a few days. The owner of $20,000 of the stock in Albany is a son of Mr. Watson, the President of the bank. It is stated by the President and Cashier that had the bank closed some months ago something would have been saved, as it is the losses will, I am told, be total. The newly appointed receiver of the Newton National Bank, Mass., lately defunct. has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90,000 has been collected. The balance, $10,000, is considered good, and $10,000 doubtful or bad, including in the latter category $2,500 of forged paper of William H. Lane. The authorities having charge of the bank propose, in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer. The Auburn Advertiser prints the following respecting the collapse of the Weetsport Bank: "We are informed that the failure is in consequence of dabbling in stocks by a prominent officer of the bank, who, finding himself in a close corner, pledged everything available in order to carry the speculations along while awafting a rise in stocks. and effecting an insurance to the amount of $30,000 on his life to be used as 'collateral." The failure sweeps the entire capital of the bank-$100,000. We understand a receiver is to be appointed at once to wind up its affairs."

2. July 29, 1867 Daily Ohio Statesman Columbus, OH

Article from Daily Ohio Statesman, July 29, 1867

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FROM NEW YORK. Bishop Mclivaine, NEW YORK, July 27.-Bishop McIlvaine, of Ohio, sailed in the City of Antwerp for England, to attend the Grand Council of the Episcopal Church in September. Mortality Report. The deaths in New York for the week were 678; increase 92 over last week. The mortality was mostly among children. Arrests. George Williams, George M. Wilkes and Joseph S. Odley, have been arrested as the supposed authors of a large number of forgeries within several months, including that of a check for $17,000 on the Broadway Bank, purporting to be signed by the Board of Education. George W. Chandler, alias Garrison, an actor of-some repute. has been arrested for alleged bigamy. He pleads an Indiana divorce in bar. Fatal Case of Cholera. A fatal case of cholera occurred in the township of Newton, Greene county. It is reported that several other persons were attacked in the same house. The premises have been disinfected. The Unadilla Bank. NEW YORK, July 27.-The liabilities of the suspended Unadilla Bank are estimated at $200,000. It was chartered about 12 years ago, under the old safety fund law. of the State, and some two years ago took its national charter with a capital of $150,000. however to increase to $250.000. The President, it is said, owned $100,000 of the stock, and the balance was in the hands of the cashier and some relations at Albany. It is `reported the assets of the bank will not go far towards meeting its liabilities. The demption agency is said to be the house of Watson & Co., leather dealers. Albany. The Herald's dispatch says fast living on the part of somebodyeconnected with the bank, together with wild and unprontable speculations in produce and mining stocks, contributed to its downfall. The Newton National Bank. A Boston dispatch says the Receiver to the Newton National bank has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90.000 have been collected. Of balance $10.000 is considered good and the rest doubtful or badi; including $25,000 in forged paper of Wm. H. Lane. The authorities haying charge of the bank, propose, in case it is wound up, to resist the payment of checks obtained through the cashier, Mr. Dyer.

3. July 29, 1867 The Wheeling Daily Register Wheeling, WV

Article from The Wheeling Daily Register, July 29, 1867

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Sunday Night's Dispatches. FROM NEW YORK. Liabilities of Suspended Banks. NEW YORK, July 28.-The liabilities of the suspended Unadilla Bank is estimated at $200,000. It was chartered about twelve years ago under the' old safety fund law of the State and some two years ago took its national charter, with a capital of $150,000 and power to increase to $250,000. The President, it is said, owned $100,000 of the stock, and the balance was in the hands of the Cashier and some relations at Albany. It is reported that the assets of the bank will not go far toward meeting its liabilities. The redemption agency is said to be the cause of the failure of Watson & Co., leather dealers, Albany. The Herald says: Fast living on the part of somebody connected with the bank, together with wild and unprofitable speculation in produce and mining stocks, contributed to its downfall. A Boston dispatch says: The receiver to the Newton National Bank has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $100,000 of which nearly $90,000 has been collected. Of the balance. $10,000 is considered good, and the rest doubtful or bad, including $2,500 forged paper of Wm. H. Lane. The authorities having charge of the bank propose. in case it is wound up, to resist the payment of checks obtained through the Cashier, Mr. Dyer.

4. July 29, 1867 The Evening Telegraph Philadelphia, PA

Article from The Evening Telegraph, July 29, 1867

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NATIONAL BANK TROUBLES. Reported Collapse of the Unadilla National Bank-Liabilities $200,000. A report reached the city yesterday that the National Bank at Unadilla, in Otsego county, liaNew York, had made a bad break, with bilities said to amount to $200,000. The bank was chartered about twelve years ago, under the old Safety Fund law of this State, and about two years since it took its national character, with a capital of $150,000, and power to increase to $250,000. Its officers were Arnold B. Watson, President and Clark J. Hayes, Cashier. The President, it is said, owned $100,000 of the capital, and the balance was in the hands of the Cashier and some relatives in Albany. will It is reported that the assets of the bank not go far towards meeting its liabilities. Fast living on the part of somebody connected with the institution, together with wild and unprofitable speculations in produce and mining stocks, contributed to its downfall. Its redemption agency is said to be the house of Watson & Co., leather dealers, of Albany. N. Y. Heraid. TROY, N. Y. July 27.-It appears upon trustworthy information that the management of the Unadilla National Bank has been of an exceedingly reckless character. The managers of the bank own a large majority of the stock, and it understood that they have lost it in extravagant mining and produce speculations. In doing this they have not only used up the capital of the bank, but have also taken the special deposits, at a very heavy rate of interest, from all the old farmers and other confiding people in the neighborhood. On these special deposits they have paid seven per cent. interest, while the usual interest upon such deposits ranges not to exceed five per cent., and oftentimes as low as four per cent also learn that many of the merchants in and around that neighborhood have been sending certific ates of deposit on this bank to pay their debts in New York, which, having been returned to the bank for New York funds, have remained in the hands of the Unadilla Bank unpaid. It 18 probable that the holders of these certificates will be compelled to await the action of the receiver, to be appointed, before the they can ascertain what proportion of assets they will receive as dividends. For some time the authorities of this bank have struggled to get back under the old State system, to the end that they might administer their affairs much more economically and with less popular suspicion. Of course the innocent people of that section of the country are in the highest state of alarm and indignation at the reckless acts of the bank officers. Corresponding banks throughout the country, which have sent the Unadilla items for collection, have in no instance received a response for some time past. Hence it has been found necessary to send special agents to Unadilla to ascertain the true status of affairs. It appears that the Government Examining Agent some time since paid the bank an official visit to ascertain its standing, and to learn it it was complying with the National Banking law. It is understood that the bank was then very deficient in the number of legal-tenders which the law required it to have on hand. This shows full well that the law can be violated at any time by all national bank officers. In the case of this failure, as in many other similar instances, it has been ascertained that the legaltender security to be kept in the bank for the benefit and safety of depositors has always been found missing when the receivers are appointed. The assets of the bank are very light compared with the liabilities. Defunct Newton (Mass.) National Bank. BOSTON, Mass., July 27. -The newly appointed receiver of the Newlon National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington. The discount notes amount to $ 110.000, of which a nearly $90,000 has been collected. The balance, f $10,000, is considered good, and $10,000 doubtfulor bad, including in the latter category $2500 a of forged paper of William H. Lane. The authorities having charge of the bank 0 propose, in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer. e d The Weedsport Bank Defalcation. The Auburn Advertiser prints the following e respecting the collapse of the Weedsport Bank:'We are informed that the failure is in conseo quence of dabbling in stocks by a prominent y officer of the bank. who, finding himself in a close corner, pledged everything available in le order to carry the speculations along while h awaiting a rise in stocks, and effecting an insuh rance to the amount of $30,000 on his life to be f used as 'collateral.' The failure sweeps the entire capital of the bank $100,000. We une derstand a receiver is to be appointed at once to is wind up its affairs." ts Additional Particulars of the Collapse of S the Unadilla National Bank. TROY, N. Y., July 28. The assignment of the Unadilla National Bank is a general one. and the institution is still kept open according y law. though doing no business. A receiver al from Washington has been applied for, and will a probably arrive in a few days. The owner of of $20,000 ot the stock in Albany is a son of Mr. Watson, the President of the bank. s tated or by the President and Cashier that had the bank al been closed some months ago, something would e. have been saved; as it is, the loss will, I am told, be total. ed I telegraphed last night, great distress prent vails in ali the country surrounding Unadilla. a he my information showing that one woman, nt widow, has become crazed by her losses, and that another has attempted to commit suicide. eir The losses cover a wide extent of country, and as will be desolating in their effects. Probable Collapse of the Whole National he Bank System. ny The following National Bank failures have ny been reported within the past few days. The weakness of the whole system is here exhibited. hip If in piosperous times these institutions cannot set sustain themselves, what effect would a sudden as financial crisis have upon them? They would go off by the bundred:ter UNADILLA NATIONAL BANK, OTSEGO COUNTY, as NEW YORK. Cause of failure. of Provision and stock speculations. rk. President Arnold B. Watson. Cashier int Clark J. Hayes. $150,000. Capital $200,000. Liabilities. ng Redemption Agents Watson & Co., Albany. W WEEDSPORT NATIONAL BANK CAYUGA COUNTY NEW YORK. eld Cause of failure. Stock speculations. D.E. Havens. President ect Cashier W. Lawrence. $100,000. gh Capital $100,000

5. July 29, 1867 The Evening Telegraph Philadelphia, PA

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Defunct Newton (Mass.) National Bank. BOSTON, Mass., July 27.-The newly appointed receiver of the Newlon National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington. The discount notes amount to about $110.000, of which nearly $90,000 has been collected. The balance, $10,000, is considered good, and $10,000 doubtful or bad, including in the latter category $2500 of forged paper of William H. Lane. The authorities having charge of the bank propose, in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer.

6. August 1, 1867 Daily Ohio Statesman Columbus, OH

Article from Daily Ohio Statesman, August 1, 1867

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The Record of Swindling. Under the head of "National Bank Failures," Monday's New York Herald contains in its "special telegrams" the following: The assignment of the Unadilla National Bank is a general one, and the institution is still kept open according to law, though doing no business. A Receiver from Washington has been applied for, and will probably arrive in a few days. The owner of $20,000 of the stock in Albany is a son of Mr. Watson, the President of the Bank. I is stated bv the President and Cashier that had the Back closed some months ago something would have been saved; as it is the losses will, I am told, be total. As I telegraphed last night, great distress prevails in all the country surrounding Unadilla, my information showing that one woman, a widow. has become crazed by her losses, and that another has attempted to commit suicide. The losses cover a wide extent of country, and will be desolating in their effects. PROBABLE COLLAPSE OF THE WHOLE NATIONAL BANK SYSTEM. The following National Bank failures have been reported within the past few days. The weakness of the whole system is here exhibited. If in prosperous times these institutions cannot sustain themselves, what effect would a sudden financial crisis have upon them? They would go off by the hundred: Unadilla National Bank, Otsego county, N. Y + Cause of failure, provision and stock speculations. President, Arnold B. Watson; Cashier, Clark J. Hayes. Capital, $150,000. Liabilities, $200,000. Redemption Agents, Watson & Co., Albany. W eedsport National Bank, Cayuga county, N.Y.-Cause of failure, stock speculations. President, D. E. Havens; Cashier, W. A. Lawrence. Capital, $100,000. Liabilities, $125,000. Newton National Bank, Middlesex county, Mass.-Cause of failure, defalcations and bad management. President. Joseph N. Bacon; Cashier, Mr. Dyer. Capital, $150,000. Liabilities, $200,000. Redemption Agent, Park Bank, New York. THE BANK ROBBERY AT BRIDGEPORT. [From the Hartford Times (evening), July 27.] No further developments have been made public in reference to the defalcation at the Pequonnock National Bank. The Board of Directors have offered a reward of $500 for the apprehension of the fugitive, W. Hamilton Barnum.

7. August 1, 1867 The Wheeling Daily Register Wheeling, WV

Article from The Wheeling Daily Register, August 1, 1867

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THE DEFUNCT NATIONAL BANK. BOSTON, MASS., July 27.-The newly appointed receiver of the Newton National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90,000 has been collected. The balance, $10,000 is considered good, and $10,000 doubtful or bad, including in the latter category $2500 of forged paper.

8. August 2, 1867 Indiana American Brookville, IN

Article from Indiana American, August 2, 1867

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National Bank Troubles. The Unadilla National Bank of New York, which has suspended, had a capital of $150,000, owned by the President, Arnold B. Watson, and Cashier Clark J. Hayes, and their relatives. Its liabilities amount to $200,000. Its embarrassments are said to be due to somebody's fast living and wild speculations. The Receiver of the Newton, Massa. chusetts, National Bank, has collected and forwarded to Washington the list of its liabilities. The discount notes amounted to $110,000, $90,000 of which have been collected, and $10,000 more are considered good.

9. February 24, 1883 New-York Tribune New York, NY

Article from New-York Tribune, February 24, 1883

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MONEY RRCOVERED BY A BANK. |BY TELEGRAPH TO THE TRIBUNE.) BOSTON, Feb. 23.-At a meeting to-day of the stockholder of the Newton Bank they were informed that the total sum of $371,000 had been recovered from the Government About sixteen years ago a Boston bank ingfirm, Mellen. Ward & Co., were trying to make a corner on certain copper stocks. To carry out their designsthey secured the co-operation of Julius F. Hartwell, disbursing clerk In the Boxton Sub-Treasury and through him obtained $1,250,000 belonging to the United States Government. Finally Hartwell informed Edward Carter, thee lef swindler, that there was to be a count of the funds in the Sub-Preasury on February 28, 1867, at walch the embezzlement would oe discovered. Career was a dir ctor in the Newton National Bank. and he induced the cashier to place in his hands the funds and 80curries of the bank to the amount of $371,000. Tue bank falled, and for several years the stockholders have encevered to secure a return of the money, on the ground that the Government was a receiver of stolen funds.

10. February 26, 1883 Daily Republican Wilmington, DE

Article from Daily Republican, February 26, 1883

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Money Recovered By a Bauk. BOSTON, Feb. 24.-At a meeting today of the stockholders of the Newton Bank they were informed that the total sum of $371,000 had been recovered from the Government About sixteen yearsago a Boston bankingtinn, Mellen, Ward & Co., were trying to make a corner on certain copper stocks. To carry out their designs they secured the co-operation of Julius F. Hartweil, disbursing clerk in the Boston Sub-Treasery and through him obtained $1,250,000 belonging to the United States Government. Finally Hartwell informed Edward Carter, the chief swindler, that there was to be a count of the funds in the Sub-Treasury on February 28, 1867, at which the embezzlement would be discovered. Carter was a director in the Newton National Bank, and he induced the cashier to place in his hands the funds and securities of the bank to the amount of $371,000. The bank failed, and for several years the stockholders have endeavored to secure a return of the money, on the ground that the Goverminent was a receiver of stolen funds.