Merchants & Mechanics Bank (Troy, NY)

Episode Information

Episode UID
8238574090946
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
823857409 hash
Start Date
October 31, 1878
Location
Troy, New York (42.728, -73.692)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bff9dea6844bdfda

Response Measures

None

Description

Closed by State Bank Superintendent for insolvency and officer irregularities; receivers appointed subsequently.

Events (3)
1. October 31, 1878 Suspension
Cause
Government Action
Cause Details
Closed by the New York State Bank Superintendent after an examination found it hopelessly insolvent with large deficits and officer irregularities.
Newspaper Excerpt
The Merchants and Mechanics' state bank closed to-day.
Source
newspapers
2. November 20, 1878 Receivership
Newspaper Excerpt
James Forsyth, receiver of the broken Merchants' and Mechanics' Bank, took charge to-day.
Source
newspapers
3. November 28, 1878 Receivership
Newspaper Excerpt
Charles E. Patterson, of Troy, has been appointed receiver of the Merchants' and Mechanics' Bank of that city, vice James Forsyth, declined.
Source
newspapers

Newspaper Articles (19)
1. October 31, 1878 Daily Press and Dakotaian Yankton, SD
Article from Daily Press and Dakotaian, October 31, 1878

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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.

2. November 1, 1878 Daily Globe Saint Paul, MN
Article from Daily Globe, November 1, 1878

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BANK FAILURES. A Number Which Have Closed Their Doors ---Inability to Realize on Investments the Cause. WASHINGTON, Oct. 31.-The German American National bank, which grew out of the German American Savings 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." Officials of the Savings banks declare their institution is sound. Both banks were owned and patronized by Germans, and the suspension causes much surprise. An excited crowd surrounds the building. The cause of the failure was the inability of the bank to realize upon real estate mortgages. A National bank examiner, now in charge. states it is probable depositors will be paid in full. TROY, N. Y., Oct. 31.-The Merchants and Mechanics State bank was closed to-day. CINCINNATI, Oct. 31.-The banking house of James E. Hemann & Co. closed its doors this afternoon, All demands against the bank were paid over the counter up to 3 P. M, but accounts in the clearing house were not adjusted, and at 5 P. M a deputy from the theriff's office served an attachment issued at the instance of John Berger, for $1,140. He attached the fixtures of the bank. and also the household furniture of Mr. Hemann at his residence. It is stated that Archbishop Purcell and] his brothers are not depositors, and have not been for several months. The report that the Volksfreund newspaper is any way concerned is untrue. That concern loses nothing. Mr. Hemann has had no interest in that paper for fifteen years. The bank has been payingsix per cent. interest on current deposits, and has experienced some heavy losses. Last May the deposits amounted to $352,000. There was a run then, but the bank survived it. There has been a steady drain lately, and suspension was inevitable. The firm decline to make any statement of assets and liabilities, but the latter are very heavy, and variously stated from $175,000 to $250,000.

3. November 1, 1878 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 1, 1878

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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.

4. November 2, 1878 Evening Star Washington, DC
Article from Evening Star, November 2, 1878

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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.

5. November 2, 1878 The Sun New York, NY
Article from The Sun, November 2, 1878

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TROY'S BROKEN BANK. Its True Condition Concealed by False and Equivocal Statements, TROY, Nov. 1.-The following are extracts from the reports of Bank Superintendent Lamb and Bank Examiner Kirtland relative to the condition of the Merchants' and Mechanics' Bank, the doors of which were closed by the Attorney-General yesterday. Mr. Lamb, in his report to the Attorney-General, says: The result of this examination is a great surprise. in view of the character of the managers of the bank, and the reports which they have sworn to and sent to the Superintendent of this department for a long time. The bank 18, in my judgement, hopelessly and remedilessly insolvent. In evidence of this, 1 append hereunto the report of the Examiner. which shows an apparent deficit of $465.664.64. Further, I regret to add that the Examiner reports 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 orequivocal statements, the true condition of the bank. The Examiner finds, in particular, that deceptive devices were adopted by such officers in S. ptember, 1877, to evade the searching inquires then first made of the State banks in the schedules which I attached to blank forms for reports of such banks. It is only by such untruthful devices that the actual condition of this bank has been conceated for a year from me. I am convinced that the financial condition of this corporation is beyond any practical remedy for restoring it to soundness. The Bank Examiner reports: An examination of the condition, conduct. and affairs generally of the Merchants' and Mechanics' Bank of Troy shows a deficiency of assets to pay liabilities of $465,664.64 I found eight notes carried in the past due paper amounting in the aggregate to $337, These notes, I am informed, were procured about a year ago from the individual signing them for the purpose of enabling the officers to relieve the cash of that amount of items, and to swear to the report sent out from the department about that time. This bank has carried the Schagticoke Woollen Mill for some years. its present indebtedness being $430,867.98; of this amount $20,000 is probably secured by 18 good endorser. The management of this bank has for years, in seeking to conceal the true condition of the corporation, with which its President and directors are closely connected, resorted to transactions of a very questionable character, and for which, it appears, the President is almost wholly responsible. A motion will be made on Monday for the appointment of a receiver. It is said that the stockholders are to be assessed fifty per cent. The management of the institution is severely censured. and many of the unfortunate shareholders are in favor of instituting criminal proceedings. D. Thomas Vail. the President. owns over 800 of the 6,000 shares. and is also President of the Schaghticoke Woollen Company and the Troy and Boston Railroad Company.

6. November 2, 1878 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, November 2, 1878

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News of the Day. Richard Realf who obtained notoriety as member of the John Brown gaog, committ suicide in San Francisco recently. Frances Abbott, an aged woman. was fou lead at her home, in a basement, in N York. on Thursday, with her face partly cat by rats. James H. Wheatley, the proprietor of Brooklyn sugar refinery, and the holder of quarter million in trust funds belonging to fo different estates, has disappeared. The public debt statement shows a decrea the past month of $1,708,402.80, and t coin in the Treasury amounts to $227,666,22 17, including coin certificates of $35,516,350. The examination of Dr. Spear and Mal Clark. on the charge of poising the mother Mabel, at Boston, has resulted in their d charge. The decision is said to meet with go eral approval. Among the other new requirements of ( Boston police, are these-that the patrolm must be able to read and write the Engli anguage, be a citizen of the United States, resident of Boston and a taxpayer for one y previous to his appointment. The New York Bank Superintendent repo the condition of the Merchants and Mechani Bank of Troy to be hopeless, and must go t receiver. He says its condition for the I year has been concealed by false reports sw to as correct by the bank officers. There is n deficit of more than half a million dollars. Mr. Theodore N. Vail, Superintendent Railway Mail Service, has again tendered resignation of the position to the Postmas General, who has accepted it. Mr. Vail's S pessor has not been appointed. Mr. W. Thompson, of the Toledo division, who I been spoken of in this connection, will proba be appointed in a day or two. Governor I 7 Wallace, of New Mexico. forms the Interior Department that the Pr dent's proolamation has quieted the turbul element in the territory. and he thinks th will be no more trouble. Governor Wall believes in the occasional show of federal for to keep the mixed population of New Mex its good behavior. A white woman, camed Mary Westerms found wandering about the streets of Wa ngton yesterday with the dead body of a not born infant in her arms. She was kindly car for at the station and was afterwards sent the hospital. The woman was about two ive years of age, intelligent looking, but destitute circumstances. The Sonthern Relief Committee of Chamber of Commerce, New York, yesterd received a letter from the Secretary of Athens Female College, Alabama, offering ducate the daughter or daughters of Lieut Benner free of charge, and announc that one trustworthy citizen of Athens offe board one daughter for any length of ti she might remain at school. A few days ago a student at Ann Arbor U versity, Michigan, committed suicide. It since transpired that he was in love with inmate of a disreputable house in the city Thursday evening five students marched to house where the woman lived and drove inmates out with pistols and shotguns. ( policeman had 3 bullet fired through his c There is great excitement in Ann Arbor, a more trouble is anticipated there, unless nmates of the house leave town. While workmen were puring molten lead il cavity in one of the foundations of the N York Elevated Railroad yesterday an explos occurred which sent the dangerous fluid flyi a shower over the persons who were wat the operation. A drop of the fluid dropp down one youth's neck and rolled down his ba oside bis shirt, causing him to jump arou pretty lively. Several other bystanders h their faces and clothing sprinkled with the les which. where it touched the skin, left so olisters. A singular development transpired at F Lincoln to day. Mrs. Sargeant Noonan, w died last night, turos out to be a mao. M Noonan was a laundress at the post and a m popular midwife. She had been married th imes and was one of the widows of the Cus massacre. Her husband is a member of 1 Seventh cavalry, now in the field. There is explanation of the unnatural union, except t) the supposed Mexican woman was wo $10,000 and was able to buy her busban

7. November 2, 1878 Daily Republican Wilmington, DE
Article from Daily Republican, November 2, 1878

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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.

8. November 2, 1878 The New York Herald New York, NY
Article from The New York Herald, November 2, 1878

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BANK FAILURES. THE MERCHANTS AND MECHANICS' OF TROY HOPELESSLY AND REMEDILESSLY INSOLVENTDEVICES OF THE OFFICERS BY WHICH THE BANK SUPERINTENDENT HAS BEEN DECEIVED. TROY, N. Y., Nov. 1, 1878. The following are extracts from the reports of Bank Superintendent Lamb and Bank Examiner Kirtland relative to the condition of the Merchants and Mechanics' Bank, the doors of which were closed by the Attorney General yesterday. Mr. Lamb, in his report to the Attorney General, says:The result 01 this examination is a great surprise, in view of the character of the managers of the bank and the reports which they have sworn to and sent to the superiutendent of this department lor a long time. The bank 18, 1u my juagmeni, hopelessly and remedileasly insolvent. In evidence of this 1 append hereunto the report of the examiner, which snows an apparent deficit 01 $465,664 64 Further, I regret 10 add that the examiner reports that the officers have been kuilty 01 grave irregularities in the transactions of the bank, and have 14 their sworn reports concoaled from the Bank Superintendent, by false or equivocul statements, the true condition of the bank. DECEPTIVE DEVICES. The examiner Liods in particular that deceptive devices were adopted by such officers in September, 1877, to evade the searching inquiries theu first made of the State banks in the schedules which 1 attuched to blank forms for reports 01 sucn banks. It 18 only by such untruthial devices thai the actual condition 01 LOIS bank has been concealed lor a year from me. 1 am convinced that the financial condition of this corporation IS beyond any practical remedy for restoring 16 10 soundness. THE BANK EXAMINER'S REPORT. The Bank Examiner reports:An examination ot the condition, conduct and affairs generally of the Merchants and Mechadics' Bauk of Troy shows is deficiency of assets io pay liabilities of $465,664 64. 1 found eight notes carried in the past uue paper amounting lu the aggregate to $337,443 38. Those notes. I um informed. wure procurou about a year ago from the individual signing them for the purpose of enabling the officers to relieve the cash of that amount of 16cms and to swear to the report sent oui from the department about that time. This bank has carried the Schaglicoke Woollen Mill for some years, its present Indebtedness being $430,867 98. of this amount $20,000 is probably securau by a good indorser. The management of this bank has for years, in seeking to conceal the true condition ot the corporation, with which its president and directors are closely connected, resoried to transactions of a very questionable character, and for which, It appears, the president is almosi wholly responsible. A motion will be made on Monday for the appointment of a receiver.

9. November 5, 1878 The New Orleans Daily Democrat New Orleans, LA
Article from The New Orleans Daily Democrat, November 5, 1878

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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

10. November 20, 1878 New-York Tribune New York, NY
Article from New-York Tribune, November 20, 1878

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TELEGRAPHIC NOTES. CHICAGO'S UNFINISHED COURT HOUSE CHICAGO, Nov. 19.-The - proposition to make a county loan of $750,000 to complete the new Court House, which was lately submitted to the people, was rejected by a majority of 11.000. THE RESIGNATION OF A RAILWAY OFFICIAL PEORIA, III., Nov. 19.-John S. Cook, general manager of the Pekin, Lincoln and Decatur Hailway, has resigned, much to the surprise and regret of business men at both ends of the road. THE HOWARDS APPEAL FOR AID. PHILADELPHIA, Nov. 19.-Major Stokley received to-day an appeal from the Howard Association of NewOrleans for furtheraid. It states that $30,000 will be necesBary to pay debts, etc. JOSEPH WOOLEY NOT DEAD. RED HOOK, N. J., Nov. P.-Joseph Wooley, who was reported to have died from yellow fever at Norfolk on Friday, is alive. The report was owing to an error made by a telegraph operator. A RECEIVER NOT YET ON DUTY. ALBANY, Nov. 19.-The statement sent from Troy that John Forsyth, as receiver of the Troy Merchants' and Mechanics' Bank, had taken possession of the assets is premature. The receiver has not yet filed his bonds.

11. November 20, 1878 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 20, 1878

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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.

12. November 29, 1878 New-York Tribune New York, NY
Article from New-York Tribune, November 29, 1878

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CRIMES AND CASUALTIES-BY TELEGRAPH. LOSS OF A SCHOONER. ST. JOHNS, N. B., Nov. 28.-The schooner Annie B. has been lost. She was bound from Charlottestown to NewYork with potatoes. She was owned by Captain Secord and James Boyle, and was partly insured. ARREST OF A RAILWAY POSTAL EMPLOYE. BUFFALO, N. Y., Nov. 28.-Charles Kimball, of Kendallville, Ind., an employé of the Railway Mail Service, was arrested near Dunkirk last night, and committed to jail here to-day, by Special Agent C. E. Heary, for robbing the mails. Kimball has made a confession. RECEIVER FOR A TROY BANK. ALBANY, Nov. 28.-Charles E. Patterson, of Troy, has been appointed receiver of the Merchants' and Mechanics' Bank of thatcity, vice James Forsyth, declined. RAILWAY ASSURANCE.-Passenger (waiting) : " How iong is the next train to Cupplesam 1" Porter : " As long as this 'ere plat orm, if It don't get smashed in half afore it gets 'ere."-[Fun. RE THE GLASGOW BANK.-Evangeline: "Papa (to paterfamilias, whose wife and five daughters run heavy bills at the milliner's) what is unlimited liability 8" Papa: " Marriage, my dear."-[Fun.

13. December 12, 1878 The Manchester Journal Manchester, Bennington, VT
Article from The Manchester Journal, December 12, 1878

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TROY'S BROKEN BANK. The failure of the Merchants' and Mechanics' Bank of Troy bide fair to be nearly as bad as that of the Washington County Bank of Greenwich. A special despatch to the New York Times says: D. Thomas Vail, now nearly 70 years of age, bas always stood high in the confidence of his townsmen. After Mr. Edwin D. Morgan resigned the Presidency of the Hudson River Railroad Company, Mr. Vail acted #8 its chief officer, and it has frequently been remarked that his skill in management and the confidence which capitalists had in bis integrity and capacity saved the company from bankruptcy. Afterward he became President of the Troy and Boston Railroad Company and the Merchants' and Mechanics' Bank. Pending the opening of the Hoosac Tunnel the milroad was kept up by the bank. During a lew years past it has, however, been in condition to take care of itself, and the bank's money bas been diverted to the Schaghticoke Woolen Mills, into which $100,000 of Mr. Vail's money and $350,000 of the bank's funds have gone. When the last report of the bank was made to Superintendent Lamb, Mr. Vail stated under oath that the largest debt due the bank from any single corporation was $40,000 The Receiver's examination established the fact that the Schaghticoke Company owed $350,000. This discrepancy was made the basis of the charge presented to the Grand Jury, and Mr. Vail was indicted for perjury. The Schaghticoke notes have all dia appeared, but it is not believed that Mr. Vail has any knowledge of their whereabouts. In fact, he has been 80 ill since the failure occurred that bis family do not mention business matters to him. Until the failure be was supposed to be worth $1,000,000. It is now believed that be is bankrupt. The Receiver thinks that the stockholders and depositors of the bank will not recover a dollar, and that almost the only claim that will be paid is ebat of the Troy Savings Bank for $65,000, which in made by law superior to ali others. Proceeding against the other officers of the bank are pending.

14. January 7, 1879 New-York Tribune New York, NY
Article from New-York Tribune, January 7, 1879

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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.

15. January 7, 1879 The Sun New York, NY
Article from The Sun, January 7, 1879

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TROY'S PLUNDERED BANK. Two Questionable Claims Disputed by the Receiver-The Bank's Assets. TROY, Jan. 6.-Judge Osborne to-day denied, without prejudice, the motion by the attorney of the Chemical National Bank of New York to direct the receiver of the Merchants' and Mechanics' Bank of Troy to pay to the Chemical Bank $48,555.62, the amount of a check sent in payment of an account due the New York Central by the Troy and Boston Railroad Company. The questionable acts in this transaction were published in THE SUN of Dec. 31. Lawyers hero believe that the New York Central Railrond Company cannot collect the money from the Troy and Boston Company. having forfeited their. claim upon them in accepting the draft. The total assets of the bank are about $120,000, and the liabilities $478,000. of which there are alleged preferred claims exceeding the total assets. The receiver says that the hasty indictment of President Vail was a serious blunder of the creditors. Had no criminal proceedings been instituted Vail would have done all in his power to increase the assets: but, under existing circumstances, it is supposed that he will attempt to evade the payment of his individual liabilities to the bank, exceeding $100,000. Judge Osborne also appointed a referee to take testimony to enable him to decide whether the Troy Savings Bank's claim of about $68,000 is entitled to preference. The depositors have been granted standing in court, and strenuously oppose the claim. Thesavings bank made a contract with the Merchants' and Mechanics' Bank for a special deposit, limited under the statute to $75,000. It is claimed that Vail and Robinson, directors of the broken bank, used their influence as trustees of the savings bank to make the deposits as large RS possible, that they might loan the money to corporations in which they were interested: that the deposits frequently amounted to twice the sum allowed by law. and that the savings bank is only a codepositor and not entitled to preference.

16. January 25, 1879 The Sun New York, NY
Article from The Sun, January 25, 1879

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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.

17. January 30, 1879 New-York Tribune New York, NY
Article from New-York Tribune, January 30, 1879

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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.

18. February 2, 1879 The Sun New York, NY
Article from The Sun, February 2, 1879

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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.

19. October 3, 1879 Evening Star Washington, DC
Article from Evening Star, October 3, 1879

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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.