Merchants & Mechanics Bank (Troy, NY)

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BUSINESS TROUBLES

AT PHILADELPHIA. Philadelphia, Nov. 1.-Detwiler & Welsh, owners of the Market street flour mills, have failed. Liabilities about one hundred thousand dollars. AT TROY. Troy, N. Y., Nov. 1.-The MercLants and Mechanics' state bank closed to-day. AT WASHINGTON. Washington, Oct. 31.-The German American national bank, which grew out of the German American ravings bank, and occupied the same building, suspended this morning. The German American savings bank has also closed its doors and put up the following notice: Owing to the suspension of the German American national bank, this bank is forced to close. The officials of the savings bank declare that their institution is sound. Both banks were owned and patronized principally by Germans, and the suspension causes much surprise. An excited crowd surrounds the building. The cause was an inability to realize on real estate mortgages. The national bank examiner expects the depositors to be paid in full.

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TELEGRAPHIC NOTES

HEMANN & CO. CLOSE THEIR DOORS. CINCINNATI, Oct. 31.-Joseph A. Hemann & Co., bankers, of this city, have suspended. FAILURE IN MONTREAL MONTREAL. Oct. 31.-The liabilities of Patrick Rooney, dry goods dealer, who recently failed, are $180,000. HEAVY WEATHER ON LAKE ERIE. BUFFALO. Oct. 31.-There has been very heavy weather on Lake Erie. Snow and hail fell last night. Many vessels which put out yesterday have come back for safety. THE FAILURE OF A FLOURING CONCERN. Philadelphia, Oct. 31.-The failure of Detwiler & Welsh, owners of the Market Street Flour Mills, is announced. Their liabilities are stated to be less than $100,000 FORCIBLY CLOSED BY THE BANK SUPERINTEN. DENT. TROY, N.Y., Oct. 31.-The Merchants' and Mechanics' State Bank of this city, of which D. Thomas Vail is president, was closed to day by the State Bank Superintendent. THE SPINNING AND WEAVING OF COTTON. BOSTON, Oct. 31.-The New-England cotton manufacturers met here yesterday. Topics of interest were discussed by Professors Ordway and Atkinson, and Mr. Baker of the Bates Mill. A STATE WORKSHOP THAT PAYS. ALBANY, N. Y., Oct. 31.-L. D. Pilsbury, Superintendent of Albany Penitentiary, paid over to the County Treasurer to-day $42,437 51, this sum being the net earnings of that institution for the year ending to-day. THE NEW OFFICERS OF THE DANBURY ROAD. SOUTH NORWALK, Conn., Oct. 31.-The Danbury and Norwa.k Bailroad Company elected the following officers to-day: Roswell P. Flower, president; James W. Hyatt vice-president; Harvey Williams, secretary and treasurer. EVERMORE A HATED HOUSE. ALBANY, Oct. 31.-On Monday Jesse Billings called on his daughter Jennie, and requested her to return and keep house for him. She refused emphatically, declaring that she would never live at the house where her mother was murdered. She has since removed her baggaze from the house

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NEW YORK Bank Matters

TROY, October 31. The Merchants and Mechanics' State Bank of this city, Dr. Thos. Vail, President, was closed to-day by the State Bank Superintendent. Rum Did It. NEW YORK, October 31. John Riley, a cardriver, refused to pay for a drink in an up-town saloon last evening, and the barkeeper fatally shot him. Denial. The Tribune reports that President Green of the W. U. Co., states that the whole report about an extra dividend on that stock, is a fancy of speculators, and the subject has not been considered by the executive committee. Suspension. The suspended German American National Bank was organized in 1877 with a capital of $30000 and a circulation of $63,000. President, John Hitz, Swise Consul General. The cause of the failure was inability to realize upon mortgages. The National Bank Examiner, after a hasty examination, stated it was probable the depositors will be paid in full. Weather. A heavy northwesterly gale has prevailed since sunset. The thermometer has fallen to 39 and is rapidly falling. Fires. A fire at 444 Broadway, to-night, damaged the stock of Bamberger & Co., clothiers, $12,000; Van Praag & Co., wholesale necktie dealers, damage by water unknown; building damaged about $1,500. Another fire damaged the stock of Mayer & Jonassen, cloak manufacturers, $10,000.

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CRIPPLED BANKS

Failure of the Merchants and Mechanics' Bank, of Troy, N. Y. A GERMAN BANKING FIRM SUSPENDS Two Banks in Washington Close Their Doors. [BY TELEGRAPH TO THE HEBALD.] TROY, N. Y., Oct. 31, 1878. In compliance with an order from the Attorney General the Merchants' and Mechanics Bank (State) of this city ceased to transact business at noon 10-day. It is freely charged by the depositors that their funds were received after the closing of the bank became a certainty. The suspension will be severely telt among a large number of the laboring classes, who will be the principal losers. The stockholders are half women or guardians, who seem to have been generally inveigled into purchasing the shares. The bank officials decline to give any information on the subject, but D. T. Vail, the president, allegos that the difficulty was caused by the inability of the Scbaghticoke Woollon Mills to meet an obligation of $400,000 which the bank was carrying. Mr. Vall is also president of the latter corporation, and is freely charged with injudiciousness 10 making loans to manuiacturing concerns in which himself or a lew associates were in aterested. Disastrous real estate investments also contributed 10 create the trouble. The last statement ot the bank published showed a surplus of only $14,200, while the loans and discounts aggregated upwards of $750,000. The capital stock was $600,000, and 11 is thought the total loss will be about $300,000. The bank has been considered unreliable by business men for some time, hence the women are so largely involved. Daniel Robinson, manager of the Troy and Boston Railroad Company. is also believed to be somewhat involved personally by reason of the bank's closing. No other important trouble 18 anticipated in commercial circles here.

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BANK FRAUDS

-The report of the New York York bank superintendent on the condition of the suspended Merchants and Mechanics' bank. at Troy, N. Y., states that the bank is hopelessly insolvent; that according to the report of the examinerthere is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transactions of the bank, and have, in their sworn reports, concealed from the bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1878, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.

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Bank Suspension

The report of the New York bank superintendent on the condition of the suspended Merchants and Mechanics' Bank, at Troy, N. Y.. states that the bank is hopelessly insolvent: that according to the report of the examiner there is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transaction of the bank, and have, in their sworn reports, concealed from thr bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1877, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.

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A neglected industry in the United States, says the Boston Commercial Bulletin, is that of flax-growing and the manufacture of linen. Forty years ago nearly every farmer in the country knew how to raise and prepare flax for domestic use, and many of our fathers and mothers were to some extent engaged in this manufacture. Now, however, besides a few small mills in New England, and a couple of thread mills in New York and New Jersey, the business is given over to foreign manufacture. Of the raw flax used by the crash and thread mills, 4000 tons are imported, and 1000 tons are home-grown, principally in the northwestern. portion of the State of New York. A considerable portion of the imborted flax is Russian; that of the best is Belgian, a part Canadian, and some Irish. The report of the New York bank superinendent on the condition of the suspended Merchants and Mechanics' Bank, at Troy, N. states that the bank is hopelessly insolsent; that according to the report of the exEminer there is an apparent deficit of $465,664; that the officers have been guilty of grave iregularities. in the transactions of the bank, and have, in their sworn reports, concealed From the bank superintendent by false or quivocal statements the true condition of the Tank; that deceptive devices were adopted by Such officers in September, 1877, and he is conlinced that the financial condition of the cororation is beyond any practical remedy for estoring it to soundness. Motion for a reeiver will be made Monday. The New York Shipping List gets a great eal of truth into small space when it says: A very common error among business men limited experience is that of economizing the matter of advertising whenever times The dull,' profits small and prospects not overTromising. This is the rock on which many Business men are shattered. But the more perienced and successful merchant realizes Le fact that when trade is dull, it is the more

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How A BANK'S ASSETS HAVE DWINDLED FROM $700,000 TO $100,000.-A special dispatch to the New York World from Troy, N. Y., November 18th, says: James Forsyth, receiver or the broken Merchants and Mechanics' bank, took charge to-day. Before the failure the bank claimed $700,000 assets, but the examiner reported that the assets amounted to only $300,000. It is now said that they will not exceed $100,000. D. Thomas Vail, the president of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a millionaire. Some stockholders have threatened criminal proceedings against Vall, as it is believed he has speculated and lost heavily in Wall street.

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Diminished Assets

A Bank Supposed to Have $700,000 Assets, Now Reported to Have Only $100,000. A special dispatch from Troy, N. Y., is as follows : James Forsyth, receiver of the broken Merchants' and Mechanics' Bank, took charge to-day. Before the failure the bank claimed $700,000 assets, but the examiner reported that the assets amounted to only $300,000. It is now said that they will not exceed $100,000. D. Thos. Vail, the President of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a millionaire. Some stockholders have threatened criminal proceedings against Vail, as it is believed he has speculated and lost heavily in Wall street.

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How a Bank's Assets have Dwindled from $700,000to $100,000. TROY, N. Y., November 18.-James Forsyth, receiver of the broken Merchants and Mechanics' bank, took charge to-day. Before the failure the bank claimed seven hundred thousand dollars assets, but the examiner reported that the assets amounted to only three hundred thousand dollars. It is now said that they will not exceed one hundred thousand dollars. D. Thomas Vail, the president of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a mi'lionaire. Some stockholders have threatened criminal proceedings against Vail, as it is believed he has speculated and lost heavily on Wall street.

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BROKEN BANKS

CLAIMS AGAINST THE MERCHANTS AND MECHANIC BANK OF TROY. ALBANY, N. Y., Jan. 6.-Before Justice Osborn to-day. Charles E. Patterson, receiver of the Merchants and Mechanics Bank of Troy, asked for instructions with respect to several large claims which be bad been requested to pay. After considerable discussion a reference was ordered in regard to the claim of the Chemical Bank of ew-York for the return of a check for $48,555. which it had forwarded to the broken bank for collection. In regard to the application of the Troy Savings Bank for a preference on its claim of $68,000, deposited in the Merchants and Mechanics Bank. the matter was also referred to take proof. Judge Parmalee was appointed referee in both cases.

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Troy's Plandered Bank

ALBANY, Jan. 24.-Judge Osborn has conArmed the action of Charles E. Patterson, Receiver of the Merchants' and Mechanics' Bank of Troy, in bringing an action against the Schaghticoke Woolien Mills upon two $1,000 notes due the bank. He also authorizes the receiver to commence an action against the trustees of the said bank. and the employment of Moses Warren or Troy and Rutus W. Peckhain of Albany as counsel.

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ACTION FOR THE REMOVAL OF A BANK TRUSTEE TROY, N. Y., Jan. 29.-Shortly after the suspension of the Merchants' and Mechanics' Bank, Bank Superintendent Lamb requested that President Vall, of the above bank, Daniel Robinson and C. R. Church, should resiga the positions held by them as trustees of the Troy Savings Bank. Messrs. Vall and Church complied. but Mr. Robinson refused to resign, and Mr. Lamb began proceedings to remove him. The testimony taken is quite voluminous, and the report of the examiner 18 to the effect that Mr. Robinson has been guilty of such acts as will Justify the courts in removing him. The Troy Times says the Bank Examiner's report is damaging.

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A Bank Trustee Refuses to Resign. TROY, Jan. 29.-Shortly after the suspension of the Merchants' and Mechanics' Bank. Bank Superin tendent Lamb requested that President Vail of the above bank Daniel Robinson, and C. R. Church should resign the positions held by them as trustees of the Troy Savings Bank Messrs Vail and ( hureh complied but Mr. Robinson refused to reside. and Mr. Lamb began proceeding to remove him. The " stimony taken is quite voluminous, and the report of the Examiner is to the effect that Mr. Robinson has been guilty of such acts as will jusury the courts in removing him The Troy Times says the Bank Examiner's report 18 damaging

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TROY'S BROKEN BANK

A Claim of the Citizens' National Bank of New York Rejected. TROY, Jan. 31.-When the Merchants' and Mechanics' Bank suspended the Citizens' Nntional Bank of New York was a creditor for about $18,000. The attorney for the Citizens' Bank affirmed that their claim was entitled to preference, because the Merchants' and Mechanics' Bank had collected for the petitioner in the capacity of agent. Judge Osborn appointed Judge Parmalee to take testimony and report findings. The ref. eree finds that the Troy bank acted as collector. under 8 special agreement with the Citizens' Bank that the defunct bank should make collections for the Citizens' Bank from day to day, and, in lieu of other recompense, should hold and use the money collected. and at the end of ench week make return: that as the use of the money was the consideration for its collection. that tast destroyed the relationship of principal and agent and that in the matter of the money collected and merged in the capital of the bank the relations were simply debtor and creditor. and for that amount the Citizens' Bank could not claim precedence before other creditors. Of the $18,000 about $3,000 was collected after the suspension.ind Referee Parmalee finds that this forms no portion of the assets of the broken bank, but belongs to the Citizens' Bank. The opinion. if sustained by the Court, is important. as it establishes 11 precedent for several other cases.

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SUEING THE SECURITIES OF A BANK CASHIER. Justice Ingalls has granted leave to Charles E. Patterson, as receiver of the Merchants and Mechanics' Bank of Troy, N. Y., to bring suit against the sureties on the bond of the cashier of the bank for $20,000.

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NORTHERN TRIBUNE.

SATURDAY, OCTOBER 14, 1882.

Twenty-one towns in the United States bear the name of Garfield.

Judge Folger accepts the Republican nomination for governor of New York.

A single steamer took 30,000 barrels of apples from New York to London last week.

Eight more bodies of victims of the Asia disaster have been recovered and taken to Owen Sound by the tug Ann Long.

A leather belt has just been made in Hartford, Conn. which is an inch thick, 38 inches wide, and 125 feet long and weighs 1,834 pounds.

Secretary Lincoln has awarded contracts for levee work on the lower Mississippi, the total amount contracted for being 4,636,200 cubic yards, at a cost of $1,153,824.

At Charlottesville, Virginia, a mob of forty men broke into the jail, dragged out Jim Rhodes the confessed murderer of the Massie family, and lynched him in short metre.

Ninety-nine locomotives and 11,627 car wheels were exported from the United States last year. During the same period there were exported 2,164,648 pounds of iron rails.

A suit to recover $450,000 is brought by the receiver of Merchants' and Mechanics' bank of Troy, N. Y. against certain wealthy gentlemen who are charged with having conspired to ruin the institution.

Since the tariff commission left Long Branch six weeks ago it has traveled 5,200 miles, has passed through 20 states visited 22 cities, and taken the statements of 150 persons. The testimony will fill at least 1,000 printed pages.

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A CHARGE OF CONSPIRACY DISMISSED

TROY, N. Y., Jan. 20.-Judge Boardman has dismissed with costs the complaint in the action brought by Charles Patterson, as receiver of the Merchants and Mechanics' Bank of Troy, against the officers of that institution to recover $450,000. The complaint charged that the defendants conspired to defraud the bank of that amount. Judge Boardman finds that there was no conspiracy.

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An Important Case Decided

TROY, June 10.-The action brought by Charles E. Patterson as receiver of the Merchants and Mechanics bank to recover $450,000 as damages to the bank by the alleged conspiracy to divert the funds of the bank to the support of the Schlagiticoke woollen mills was decided to-day by the court of appeals against the receiver.