9027559491294 902755949
hash
682eb9860931e903None
Click image to open full size in new tab
NIGHT BANKING A FAILURE New York. March 2.-All night banking in Long Acre Square has not been the success expected. and the Mechanics and Traders Bank, which has the only night and day branch in that vicinity. announces that it will suspend its night business.
Click image to open full size in new tab
NOW UNLI Worst of the New York Bank Run Has Subsided. , WITHDRAWALS DECREASE Some Belated But Timid Ones Still Stand in Line. SAVINGS BANK *PRECAUTIONS Criticism of the Managers Is Tempered With Commendation-Restoring Confidence. Special Dispatch to The Star. NEW YORK October 26 With the marked abatement yesterday in the runs on the trust companies, which have been paying out money to timid depositors since Wednesday morning. the officers of the concerns looked today for a continued diminution that would bring the request for withdrawals down to the normal Of course there were the usual though smaller. crowds awaiting the opening of the doors this morning and the same crowds assurance was given that all demands would be paid. At the offices of the Trust Company of America. where only $2,000,000 wa paid out yesterday, as compared with $12,000,000 on Wed esday and $9,000.000 on Thursday, the officers were confident that the flurry, so far as the run was concerned, was about over. The reformation of the line at the company's offices at 37 Wall street began less than two hours after the close of business yesterday. The first man took his stand in front 0° the door at 4:45 and at 6 o'clock he had nineteen to keep him company. Two young women, numb rs 22 and 24 in the line, went on picket duty at 10 o'clock last night. At the Colonial branch of the trust company. as on Thursday night, the number of all-night vigilants was much smaller than at the company's headquarters. Five stuck it out from last evening and two of these spent the night in the corridor within the revolving doors. Both were said to be bankers' representatives. At 6:20 o'clock this morning there were only fifteen in line. At the Lincoln Trust Company's 5th avenue entrance there were several of those who failed to get admitted when the doors swung shut yesterday afternoon who remained in their places all through the afternoon. being joined late in the evening by a few more, while this mornIng at sunrise the line was considerably lengthened "Deposit Brokers." At the Dollar Savings Bank, 147th street and 3d avenue, where a run started several days ago. a line of some length formed early this morning Several men who called themselves "brokers" went down the line offering to take over the accounts of any anxious ones at 90 cents on the dollar, spot cash. but they found few takers At the Harlem Savings Bank, where the officers announced yesterday that they would take advantage of a thirty days notice, "as a protection to the depositors, there were only a few persons collected Following the suspension of some small Brooklyn banks because of the lack of ready cash in the present financial situation. there were depositors at the doors of some of the trust companies and banks there this morning prepared to withdraw their accounts One line formed outside the Union branch of the Mechanics' and Traders' Pank in the Temple Bar building. This bank has ten branches distributed throughout the borough. The line began to form outside the bank at 8:30 o'clock. when between thirty and thirty-five persons took their places before the doors. Another line formed outside the Nassau Trust Company's building at Fulton street and Red Hook lane As early as 7:45 o'clock there were a few persons in front of the doors. The depositors also gathered outside the Brooklyn Savings Bank, at Pierepont and Clinton streets the second largest bank in Brooklyn, There was a rush of depositors to that bank yesterday afternoon. and this morning at o'clock ther were between fifteen and twenty persons outside its door. The executive committee of the clearing house association this morning issued a call for meeting of the full association to be held at 12 o'clock to decide whether or not to issue clearing house certificates James T. Woodward. chairman of the clearing house committee, said that the situation today depended largely upon developments among the Brooklvn banks. Soon after arriving at the subtreasury this morning Secretary Cortelyou had a conference with George W. Perkins of J. P. Morgan & Co. Mr. Perkins subsequently said "The atmosphere is fast clearing up. as any one can see. Mr. Perkins was asked if he thought this would be the last day of the financial difficulty He replied: "I think it is. James Stillman this morning after the conference at the clearing house. said: "The situation has been saved by the of the heroie Treasury action Secretary of the who has been so ab.y assisted by the whole-hearted co-operation of Mr. Morgan.
Click image to open full size in new tab
the Mechanics and Traders Bank. at No. 663 Broadway were shapped shut at noon to the second in the faces of some 300 excited and protesting depositors who had been standing in line for two hours. Not over tep of the clamoring crowd had been paid off. Vice-President Leo Schlexhget and at noon: "Unless the Clearing House stands by us the people will have to take what is coming to them. The Clear. Ing House is responsible for all this trouble. This bank has paid out close to $8,000 000 in the past three or four days. The institution is solvent. we can't pick money cut of the air." Waiting Line When Doors Openec. It appears that there has been a steady drain on the Mechanics and Traders' and its dozen branches 15 Manhattan and Brooklyn all week. Depositors were paid on promptly up to yesterday afternoon. when dilatory tactics were adopted. News of this spedid around the whole. sale clothing district and at 2.30 o'clork this morning there were twenty five persons in line at at'the door of the bank. The line doubled by the time the doors are opene] and then rapidly longthened out untH It assumed the propor Lons ora small parade, The Brooklyn branch offices of the Mechanics and Traders'. which are usually opened at 9-o'clock on Shurday mornings to allow the withdrawal of pay-roll accounts, were kep: closs! until 10 o'clock. None of them was subjected to a run. Depositors calling for large eums were sent to the nain bank in Broadway, Manhattan. Last Quarterly Statement. The Mechanics and Traders' and branches constitute what is known as the Sullivan chain and are managed by David A Bullyan The capital stork is $2,000,000. Here are the most signincant Items in the last quarterly statenent. $13,805,000 Due depositors 2,192,322 Due trust compinies and banks. Loans on discounts 14.346.633 393,000 Lisbilities of directors as makers President Sullivan was at the bank, but seciuded himself in his private ofnce. He refused to see callers. Most of the depositors who sought to withdraw meney this morning were business men and manufacturers of the neighborhood who have heavy payTOTAL They were compelled to hustle in other directions for money with which to satisfy their employees. Branch Offices and Officers. The Mechanics' and Traders Bank has twelve branches located as follows: Attantic Branch, No. and Atlantic evenue, Brooklyn: Fulton Street Branch. No. 415 Fulton street, Brooklyn: Hamilton Branch ..05 19-31 Hamilton avenue, Brooklyn Hancock Branch. No. 1550 Broid way Brooklyn; Madison Avenue Branch. No. US3 Madison avenue, Nor York, Mirket Branch, Finsnthat and Washington avenues,
Click image to open full size in new tab
"The general situation is improved by the enforcement of the sixty-day rule of the savings banks, which will tend to stop hoarding of cash, and also by the decision of the Clearing House to issue certificates and the increased assurance of thoughtful depositors refraining from withdrawing any unnecessary funds." CASH DEPOSITS EXCEED WITHDRAWALS. Officials of the ten Brooklyn branches of the Mechanics and Traders' Bank, of Manhattan, had a strenuous day. Most of them have large payrolls to meet on Saturday, and there was some hustling for cash for that purpose. The result was that the branches, which usually open at 9 o'clock, did not open until 10 o'clock yesterday. As soon as the payrolls had been provided for, the depositors, who had been collecting outside the doors, were admitted and paid off as rapidly as possible. Frederick W. Flottwell, of the Union branch, said at the close of the day's business that, although the withdrawals had been heavy, they had been exceeded by the cash deposits by $396,000 at the ten branches. "All the branches of the bank will open as usual on Monday morning," said Mr. Flottwell, "and the business will be continued as If the present conditions did not exist. The bank is in no way affected by the situation." Leo Schlesinger, speaking as vice-president and director of the Mechanics and Traders' Bank, said last night: "This is my first and only statement with regard to this bank, and I wish to state positively that the Mechanics and Traders' Bank has met all its engagements so far and will continue to do so. We have had no run on that bank. and our only difficulty has been in getting a sufficient quantity of small sized bills to make change with." By way of restoring confidence one of the directors of the Mechanics and Traders' Bank, at the Union branch, the largest in Brooklyn, in the Temple Bar Building, went out among the people in the line and talked with them. If It was found that money was needed badly the checks were taken inside and the money was brought out. A widow, who had $300,000 on deposit, came to seek advice. She was convinced that the situation was well in hand, and said that she would not only leave her money in that bank, but would refrain from drawing out several hundred thousands which she had in other banks. The Long Island Loan and Trust Company, also in the Temple Bar. had an easy day. On Thursday and Friday they lost $100,000 to the savings banks, but yesterday the deposits, including $50,000 from the Brooklyn Rapid Transit Company, far exceeded the withdrawals. No excitement among the depositors was reported from any section of the borough. On the other hand, the reports were quite general that many who had been anxious for their money early in the day were so reassured by the improvement in conditions throughout the city that they decided to leave their deposits with the banks and went home. Many employes of factories and builders in Brooklyn had to go without their money yesterday because of the suspension of the five banks on Friday. which had always been depended on for large payrolls. In most cases the men were told that arrangements would be made to get money for them elsewhere early this week.
Click image to open full size in new tab
EARING HOUSE CERTIFICATES TO STRENGTHEN BANKS Association Decides to Adopt Strong Measures and Relief Is Certain. NEW YORK, Oct. 26. With the unan imous decision of the New York Clearing House Association today to issue clearing house certificates for the settlement of debit balances by the banks, leading financiers believe that the final steps have been taken to restore conditions in financial circles to their wonted calm. The issue of these certificates will release for general circulation a large sum of currency, and the scarcity of money new the only cloud that lingers on the horizon. s Of scarcely less importance as tending to restore confidence was the introduction of a resolution in the meeting of the Clearing House Association providing for the readmission of trust companies to membership in this assoclation. This will place the trust companies under the rules of the clearing house, and tend to prevent recurrence of the situation which brought about the slump last week. News of Gold Imports Aid. Announcement of the early arrival of gold imports from Europe further improved the situation today. There is a balance of $60,000,000 in our favor in the trading between Europe and the United States, and an influx of the yellow metal from Europe at this time will serve to hasten the return to normal conditions in the financial world. Heidelbach, Ikelheimer & Co., of 37 William street, today announced that the first of the gold imports, $1,500,000 in amount, will arrive here Wednesday. With all these agencies operating to restore confidence, the reaction set in Friday continued unabated today, and the sun began to shine on Wall Street again. Except for the suspension of the Terminal Bank, in Brooklyn, a small Jenkins institution, whose closing had no effect on the situation, every report that went out over the ticker was fa. vorable. Stock Market Firm. The stock market continued firm and money was comparatively easier. The Trust Company of America, the Lincoln Trust, and the other institutions which were imperiled by runs rode the storm and their officials announced at the close of the day that their concerns would resume business Monday in capital shape to meet any demands that might be made upon them. It is understood that for the reason that Europe might get the idea that conditions are worse in New York than they reall are. J. P. Morgan and bankers in friendly association with them, opposed the issue of clearing house cer tificates, but gave way to the majority after the matter had been thoroughly threshed out. A committee headed by Vice President Cannon, of the Fourth National Bank was appointed to arrange the details for the issue. Banks will be permitted to avail themselves of the certificates to the amount of 75 per cent of their debit balances Financial men almost without exception declared after the adjournment of the meeting that this measure will undoubtedly bring to the situation the relief that is needed to restore confidence and stability to the market The final act of the meeting of the clearing house association was the adoption of a resolution thanking Secretary of the Treasury Cortelyou and J. Pierpent Morgan for their services during the time of the crisis. Surplus Was Wiped Out. The regular weekly bank statement issued today showed that the surplus which the banks had at the close of last week was entirely wiped out by the flurry, and that a deficit of $1,233,300 was created instead. A surprising feature of the statement was an increase of loans of $10,864,700. It had been expected that the enormous liquidation in the market during the week would have resulted in a considerable decrease in this item. While the skles were clearing in Wali Street, frightened depositors in- the Mechanics and Traders' Bank, 565 Broadway, with twelve branches in Manhattan and Brooklyn, and in the Broadway Trust Company, Broadway and Eighth street, made a descent upon the two institutions, and there were lively withdrawals for some time. All demands were met by the two concerns however. In a run on the Northern Bank of New York, Broadway and Fourth street, there was so much disorder that the police had to be called. The Broadway Trust Company adopted a rule that those who were withdrawing funds to pay off employes should lave the first call today. General approval was given to the action of the presidents of the savings banks, all of which today put into effect the rule which compels the filing of sixty days' notice of an intention to withdraw funds.
Click image to open full size in new tab
IWU MURE NEW YORK BANKS FAIL Unable To Weather Financial Storm BOTH DECLARED SOLVENT New Amsterdam National and Mechanics and Traders Close Doors. New York, Jan. 30.-National bank examiners took active charge of the affairs of Am National Bank and Metoday sterdam the New the and Traders a in both of to open chanics stitution, which Bank, failed state their doors this morning. Both these banks were included in the MorseHeinze-Thomas chain of banks and the of the National Bank America a ago of after North closing few days there has been what practically amounted to a run on them. Both were unable to take up their allotment of certificates which the house issued to the money panic clearing beginning them in during Ocwhen the drain their resources began tober upon and renewed the extend clearing house declined to further Fearing with the officials drawals their credit. today heavier of both banks decided last night to close. Cause Runs On Banks Failures Other of As a result of the closing these several other none of class, met banks, an important banks, with these heavy was withdrawals today. One of Bank, where a as soon as it developed the Oriental opened. quite run All were paid promptly Hugh Kelly and the depositors President announced had that twelve other institutions come to the aid of this bank and that he hoped to be able to withstand the drain. It is not anticipated the closing ef- of two banks will have any the general this city as both were these tion fect of on banking situa- going through gradual liquidation during the last few months in which their debts and credits have been gradually reduced. New Amsterdam Declared Solvent Bank Examiner Charles A. receiver Hanna, National temporary America, of the today Na tional Bank of North of was appointed temporary receiver New Amsterdam National Bank. the The institution's liabilities are placed at $4,482,016, of which $2,065,270 is due depositors. This bank was capital to ized at $1,000,000. The bank officials assert that not only will every deposbe paid in full, but the stockhold- dividend. itor will receive a substantial Bank ers New Amsterdam National in The formerly one of the chief links by was chain of banks established the W. Morse. The institution oc. Charles quarters in the Metropolitan the cupied house, in the heart of numbered upopera theatrical district, and those town among its clients are many of prominent on the stage. Failure of Mechanics and Traders Bank a Surprise. Mechanics and Traders at Bank $2. The state institution, capitalized last is a and previous to the panic to 000,000 carried deposits -amounting amount fall than $20,000,000, but this This more since been largely reduced. has two branches in Manhattan these bank has ten in Brooklyn. All and branches remained closed today. Mechanics and Traders E. Bank The of the banks in the was R. was one chain. Davis A. Sullivan Janmade Thomas its president by Thomas in uary, 1907. Old and Importan F. Augustus Heinz directorate of the Traders Bank after traol and bought I terest in the ins as and Heinze got 01 a result of the Octol It before the panic. It important of the state $26,000,000. banks,umv most total resources of of the state was also one established been was not banks ing having of the oldest ago and three quarters member of a century of the clearing house, only a of its founders. debut one to the state banking 22, In its date of partment report under and Traders August Bank On the Mechanics $18,825,000. 1907, net deposits of its last report. showed 19, the date of these October had shrunk to $10,077,000.
Click image to open full size in new tab
made the following We have ample means and are thoroughly solvent. All we have to do is to get cash. The receiver's accountants are working on the books now, and it will not be a great time before we are resuming business. Except for cash we are in good shape. There are upwards of six thousand depositors to be paid, and all will get every dollar of their deposits. William Sherer, manager of the Clearing House, gave out the following statement: There are outstanding $5,590,000 of Clearing House loan certificates, which are amply secured. These certificates are for the account of the Mechanics and Traders' Bank, the National Bank of North America, the Oriental Bank and the New Ainsterdam National Bank. The Oriental Bank had a debit at the Clearing House this morning of $100.000, which was met. No extraordinary action was taken at the Clearing House meeting this morning, Mr. Sherer made it clear that no more loan certificates would be issued by the Clearing House at this time. David A. Sujilvan, president of the Mechanics and Traders' Bank, issued the following statement: Mr. Sullivan stated to the press to-day that the bank is absolutely solvent and the depositors will be paid in full; that he will devote all of his to the work time and attention of rehabilitating the bank and bringing about a resumption of and that after this has been accomwill retire from the business, plished he management of the bank. as he feels that, not having piloted the institution through the present storm, success may be better assured under new management. and that he urges all depositors and friends of the bank to co-operate with the movement to reopen the bank. Clark Williams, State Superintendent of Banks, took charge yesterday of the Mechanics and Traders', and placed one of his state bank examiners, M. W. Hutchins, in control of the main offices. An examiner was also detailed to each of the thirteen branches. Expert accountants were at once put to work by Mr. Hutchins to examine the condition of the bank's assets and report thereon. Mr. Williams said last night that he would have nothing to give out as to the condition of the bank until to-day. The State Superintendent of Banks, unlike the Controller of the Currency, has not the power to appoint a receiver, but this has to be done through the state courts. The depositors did not bother much with the ten branches of the Mechanies and Traders' Bank in Brooklyn yesterday. Each of the ten had up the sign declaring that business was suspended. The prevailing opinion among depositors is that the bank will be able to pay all its debts. The Wallabeut Market branch has on deposit much of the funds of the marketmen. George Dressler, president of the Wailabout Market Merchants' Association, has called a meeting for to-day, at which the situation will be discussed and help offered to members in urgent need. It is reported that the Brooklyn lodge of Elks is badly affected by the closing of the bank, as it has on deposit about $30,000. It has also $38,000 tied up in the Borough Bank, it is reported. There was a little excitement at the Greenpoint branch of the Mechanics and Traders' Bank, at Manhattan and Greenpoint avenues, yesterday morning, when it became known that the bank had closed its doors. but it soon quieted. Albany, Jan. 30.-The Mechanics and Traders' Bank of New York has a deposit of $50,000 of state funds, according to an authorized statement made at the State Treasurer's office today. The deposit is secured by canal improvement bonds on file at the State Treasurer's office,
Click image to open full size in new tab
BROOKLYN BANK KEEPS DOORS SHUT NEW YORK, Feb. 1.-The Home Bank of Brooklyn, which was hit by a run yesterday, failed to open its doors for business today. It was said that the suspension of the Mechanics and Traders' bank, in which institution the Brooklyn concern had a large sum of money on deposit, was responsible for the closing. Wm. C. Damron, president of the Home bank, is a director of the Manhattan institution. Superintendent of Banks Clark Williams ordered the closing, after. a meeting of the board of directors last night and a state bank examiner was put in charge. Although no official statement was issued, President Damron said that the institution was perfectly solvent and would resume business shortly. The deposits amount to over $700,000 and the capital stock is placed at $100,000.
Click image to open full size in new tab
PLAN TO REOPEN BANK. Mechanics and Traders' Making Effort to Stave Off Receivership. Depositors of the Mechanics and Traders' Bank held a meeting in the law offices of Gilbert Elliott, at No. 44 Court street Brooklyn. last night, and tried to formulate a plan for staving off the threatened receivership. Paul Grout, counsel for the directors, presided. A representative of the directors explained to the depositors that the bank would apply to the Attorney General for twenty-one days additional time before the appointing of a receiver, and asked the depositors to agree upon a plan for deferred payments. He said that if such a plan were adopted the bank would be able soon to resume business. Some of the depositors were willing to agree to this proposal and stand by the directors, while others wished to await the report of the State Bank Examiner. The examiner has been going over the books, and probably will not make a report of his findings for a week or more. After a warm discussion the meeting adjourned without taking any stand. Mr. Grout said later that the bank was perfectly solvent and that he did not expect it to be placed in the hands of a receiver. The Attorney General, he said, would receive a plan soon through which the directors hope to be able to resume business. There will be another meeting of the depositors this evening. A meeting of the directors was held yesterday afternoon to consider plans for resumption. No plan was adopted. Depositors of each branch have appointed a committee to work in conjunction with the directors. The Brooklyn headquarters of the depositors committee will be at Room 1,006. Tempie Bar Building, No. 44 Court street, and the Manhattan headquarters will be at No. 621 Broad way.
Click image to open full size in new tab
Effect is Small. Memphis, Tenn.-Announcement of the suspension of two banking institutions in New York had little effect in financial circles there. The fact that both institutions were known to have been carried by the clearing house banks through the serious panic times was generally known, and their failure to keep on their feet after they were put on their feet is no surprise. Bank examiners took active charge of the affairs of the New Amsterdam National bank and the Mechanics and Traders' bank, a state institution. Both of these banks were included in the Morse-Heinz chain of banks, and after the closing of the National Bank of North America a few days ago there had been what practically amounted to runs upon them. Both of them were still unable to take up their allotment of the certificates which the clearing house issued during the stringency beginning in October, and when the renewed drain upon their resources began, the clearing house authorities declined to further extend their credit.
Click image to open full size in new tab
Effect is Small Memphis, Tenn. -Announcement of the suspension of two banking institations in New York had little effect in financial circles there. The fact that both institutions were known to have been carried by the clearing house banks through the serious pauie times was generally known, and their failare to keep on their feet after they were put on their feet is no surprise. Bank examiners took active charge of the affairs of the New Amsterdam National bank and the Mechanies and Traders' bank, a state institution. Both of these banks were included in the Morse-Heinz chain of banks, and after the closing of the National Bank of North America a few days ago there had been what practically amounted to runs upon them. Both of them were still unable to take up their allotment of the certificates which the clearing house issued during the stringency beginning in Oetober, and when the renewed drain upon their resources began, the clearing house authorities declined to further extend their credit.
Click image to open full size in new tab
CLOSED BANKS MAY OPEN. Mechanics and Traders' String Hopes to Be Revived in Month. New York, March 3.-By virtue of Justice O'Gorman's order modifying that part of Justice Platzek's receivership decision which restrained the Mechanics and Traders' Bank from exercising its corporate prerogatives, the stockholders of the bank met this afternoon and voted to reduce the capital stock from $2,000,000 to $1,000,000. Of the former capital stock $1,000,000 was transferred to the surplus, to be used in paying the bank's indebtedness. Justice O'Gorman's order was operative only to-day. The next step will be to obtain the consent of depositors to the system of deferred payments already announced. If success attends this effort, counsel for the bank will be in a position to go to the superintendent of banks with the request that the receivership be vacated. Lawyers Interested in bank's affairs expressed
Click image to open full size in new tab
DEPOSITORS HOPEFUL. Mechanics and Traders' Receivers to Co-operate for Resumption. Depositors of the Mechanics and Traders' Bank who have hoped for a speedy reopening of the institution had their hopes raised last night when, at a meeting of the chairmen of the various depositors' committees, the directors and the counsel of the bank, held at No. 44 Court street, Brooklyn, they were informed that the receivers had agreed to a ord every facility for carrying out their wishes. A conference between Edward M. Grout and Paul Grout. attorneys for the directors, and the receivers took place yesterday morning in the offices of Morgan J. O'Brien. After a discussion of the entire question. the receivers promised to extend to the bank every facility to bring about a resumption of business, and agreed not to take any steps likely to lead to the appointment of permanent receivers until the directors had had plenty of time to carry out their plans. To arrive at this result it was decided to apply to the court for an order authorizing the receivers immediately to pay the Clearing House indebtedness of the Mechanics and Traders' Bank, thereby releasing securities held by the Clearing House in which the bank has an equity of over $4,000,000. It was also arranged that an application be
Click image to open full size in new tab
O'BRIEN DECLINED PLACE. Jackson Wanted Him to Act as Receiver for Bank. Attorney General Jackson, it was learned yesterday, before appointing receivers for the Mechanics and Traders' Bank, asked Morgan J. O'Brien, former Supreme Court justice, if he would act as one of the receivers. Mr. O'Brien declined the place. Mr. O'Brien takes an active interest in local, state and national politics and is an organization Democrat. He is one of the oldest stockholders of and depositors in the Mechanics and Traders'. After his refusal to accept the Attorney General appointed Mr. O'Brien's brother-in-law. Henry Haggerty. Later Mr. O'Brien was appointed counsel for the receivers. Of the four receivers last appointed on Mr. Jackson's motion two are what might be called "Tammany men," and another a stanch upstate Democrat.
Click image to open full size in new tab
attorney general under Attorney General Jackson and appointed by the latter as temporary receiver for the Hamilton bank, October 23 last, and Joseph Ford, formerly private secretary to Mr. Jackson and later receiver for the Mechanics & Traders' bank, were before the grand jury today. Both were questioned by District Attorney Jerome. As to what questions were put to the two men Mr. Jerome, Mr. White and Mr. Ford were equally reticent.
Click image to open full size in new tab
BANK WINS TEST CASE. Court Virtually Approves Mechanics and Traders' Resumption Plan. Justice Hendrick in the Supreme Court. handed down a decision yesterday in which he virtually approved of the deferred payment plan and agreement for the reorganization and reopening of the suspended Mechanics and Traders' Bank, which closed its doors on January 29 last. The decision was rendered on the application of Strauss & Anderson, counsel for the bank, for permission for Joseph Heidelberger, a depositor and an incompetent, to sign the deferred payment plan. The application stated that 84 per cent of the depositors had already assented to the plan, and that it was made in the nature of a test case, as over
Click image to open full size in new tab
# MECHANICS' BANK # DEPOSITORS WON'T LOSE NEW YORK, Aug. 10. -The World says: The resumption of business by the Mechanics' and Traders' bank under the name of the Union bank, with a new set of officers, will mark the culmination of an unprecedented series of financial rehabilitations on the part of suspended banks and trust companies. It means that though 13 banks and trust companies closed their doors in the panic of last October and in the flurry at the end of January, not a single one of the 51,000 depositors loses a dollar, every penny of the aggregate deposits of $89,837,318 being already paid back or ready for payment.
Click image to open full size in new tab
BANK RECEIVERS DISCHARGED. Mechanics and Traders Ready to Open Under Mr. Grout's Presidency. Justice Pound, of the Supreme Court, approved yesterday the application for the discharge of the temporary receivers of the Mechanics and Traders' Bank, and gave permission to the institution to take the name of the Union Bank of Brooklyn. which change was suggested by Superintendent Williams of the State Banking Department. Justice Pound's order awarded $20,000 to each of the receivers, J. Henry Haggerty and Joseph D. Ford. Ex-Judge Morgan J. O'Brien will receive $15,000 as counsel fees. The proceedings yesterday were the last legal formalities to the reopening of the Mechanics and Traders' Bank. Ex-Controller Grout, the new president, announced that it would reopen next Monday. Attorney General Jackson appeared in court for the state, and said that he was satisfied with the statement made to the court by Mr. Grout and with the recommendations of the State Superintendent of Banks.
Click image to open full size in new tab
SPECIAL GRAND JURY EMPANELLED. Justice Rogers Makes No Mention of Racetracks in His Address. The special grand jury, which was called together at the instigation of Governor Hughes, was empanelled in Kings County yesterday morning. The members were sworn in by Justice W. M. Rogers, who was sent from his home in Watertown to hold a term of the Supreme Court in Brooklyn. In his address to the jurymen he made no mention of the expected racetrack gambling investigation, but simply told them of their powers and the necessity of rejecting hearsay evidence. It is understood that the case of ex-Patrolman David H. Shellard, who is charged with shooting Barbara Rieg, and the affairs of the Mechanics and Traders' Bank prior to its suspension, will be placed before the jury, along with a number of minor criminal matters, before the racetrack investigation begins.
Click image to open full size in new tab
Texas saving bank, placed in receiver's hands. 18-John R. Walsh, president Chicago National bank and several railroads, convicted of misappropriating institution's funds. 21-Capital State Bank, Boise, Idaho, suspended. 22-Traders and Mechanics' Bank, Pittsburg, Pa., closed doors. 25-N: ional Bank of North America, New Yor: closed for liquidation, by order of government. 29-New Amsterdam National bank, capital $1,000,000. and Mechanics and Traders' bank, both of New York, taken in charge by comptroller of currency. 31-Oriental Bank of New York closed doors, following run. Feb. 13-W. B. Ridgely, comptroller of currency, accepted presidency of reorganized National Bank of Commerce, Kansas City, Mo. 26-International and Great Northern Railroad Co., a Gould line, placed in receivers' hands. 27-Financiers E. R. Thomas and O. F. Thomas indicted on charge of mismanagement of funds of Provident Savings Life Assurance society. Mar. 13-John R. Walsh denied new trial; sentenced to five years in federal prison. 16-People's National bank, Aspin, Col., closed. Apr: 1-Pike County Bank and Trust Co., Macomb City, Miss., placed in receiver's hands. 21-Bank of Wauseon, Wauseon, O., closed doors. 24-T. A. McIntyre & Co., with houses in many cities, failed for $1,000,000. May 8-Euclid Avenue Trust Co., Cleveland, O., assigned. 14-Reserve Trust Co., and American Savings bank, Cleveland, O., closed their doors. 28-G. W. MacMillen & Co., Pittsburg, Pa., stockbrokers, failed; liabilities, $1,800,000. Jun. 3-Kosciusko Company bank, Warsaw, Ind., closed by state auditor. 23-Citizens' bank, Dover, Ky., closed doors. Jul. 14-National Deposit bank, Philadelphia, Pa., closed by comptroller of currency. 17-Farmers and Merchants' Banking Co., Cleveland, O., failed. 22-Standard Oil $29,240,000 flue decision unanimously reversed by United States court of appeals at Chicago. Aug. 6-First National bank, Belle Plaine, Minn., closed by order comptroller of currency: bank was insolvent: President J. G. Lund committed suicide. 25-A. O. Brown & Co., one of largest New York brokerage firms, failed; liabilities over $1,000,000. Sep. 10-A. Booth & Co., largest fish house in country, forced into receiver's hands. Oct. 16-Union National bank, Sommerville, Pa., closed by government. Nov. 5-Charles W. Morse and Alfred H. Curtis, great financiers, found guilty of misapplication of funds and falsifying books of National Bank of America, New York. 6-C. W. Morse sentenced to 15 years; Curtis given liberty on suspended sentence. 23-Eldred bank of Eldred, Pa., suspended; capital stock, $100,000. Dec. 7-National exchange bank at Springfield, Mo., closed; excitement caused by effort of W. O. Oldham, cashier of State Savings bank, to shoot President H. B. McDaniel, of Union National bank. 11-Springport, Mich., State Savings bank closed by bank examiner. 16-Somersworth, N. H., First National bank closed, following discovery of shortage of $85,000. 23-Thomas F. Ryan announced retirement from finance. 26-Henry W. Poor, New York broker, assigned for creditors.
Click image to open full size in new tab
FINANCIAL Jan. 2-State Bank, Rockyford, Col., closed doors. 6-Four big New York diamond firms forced into trustee's hands; liabilities, $4,500,000. 8-Chicago Great Western railroad JOHN placed in hands of receivers. ROCKEFELLER 16-Western Bank and Trust Co., Dallas, Tex., largest Texas saving bank, placed in receiver's hands. 18-John R. Walsh, president Chicago National bank and several railroads, convicted of misappropriating institution's funds. 21-Capital State Bank, Boise, Idaho, suspended. 22-Traders and Mechanics' Bank, Pittsburg, Pa., closed doors. 25-National Bank of North America, New York, closed for liquidation, by order of government. 29-New Amsterdam National bank, capital $1,000,000, and Mechanics and Traders' bank, both of New York, taken in charge by comptroller of currency. 31-Oriental Bank of New York closed doors, following run. Feb. 13-W. B. Ridgely, comptroller of currency, accepted presidency of reorganized National Bank of Commerce, Kansas City, Mo. 26-International and Great Northern Railroad Co., a Gould line, placed in receivers' hands. 27-Financiers E. R. Thomas and O. F. Thomas indicted on charge of mismanagement of funds of Provident Savings Life Assurance society. Mar. 13-John R. Walsh denied new trial; sentenced to five years in federal prison. 16-People's National bank, Aspin, Col., closed. Apr. 1-Pike County Bank and Trust Co., Macomb City, Miss., placed in receiver's hands. 21-Bank of Wauseon, Wauseon, O., closed doors. 24-T. A. McIntyre & Co., with houses in many cities, failed for $1,000,000. May 8-Euclid Avenue Trust Co., Cleveland, O., assigned. 14-Reserve Trust Co., and American Savings bank, Cleveland, O., closed their doors. 28-G. W. MacMillen & Co., Pittsburg, Pa., stockbrokers, failed; liabilities, Jun. $1,800,000. 3-Kosciusko Company bank, Warsaw, Ind., closed by state auditor. 23-Citizens' bank, Dover, Ky., closed Jul. doors. -National Deposit bank, Philadelphia, Pa., closed by comptroller of cur17-Farmers rency. and Merchants' Banking Co., Cleveland, O., failed. 22-Standard Oil $29,240,000 fine dectsion unanimously reversed by United States court of appeals at ChiAug. engo. 6-First National bank, Belle Plaine, Minn., closed by order comptroller of currency; bank was insolvent; President J. G. Lund committed suicide. 25-A. O. Brown & Co., one of largest New York brokerage firms, failed; liabilities over $1,000,000. Sep. 10-A. Booth & Co., largest fish house in country, forced into receiver's Oct. hands. 16-Union National bank, Sommerville, Pa., closed by government. Nov. 5-Charles W. Morse and Alfred H. Curtis, great financiers, found guilty of misapplication of funds and falsifying books of National Bank of America, New York. 6-C. W. Morse sentenced to 15 years; Curtis given liberty on suspended sen23-Eldred tence. bank of Eldred, Pa., suspended; capital stock, $100,000. Dec. 7-National exchange bank at Springfield, Mo., closed; excitement caused by effort of W. O. Oldham, cashier of State Savings bank, to shoot President H. B. McDaniel, of Union National bank. 11-Springport, Mich., State Savings bank closed by bank examiner. 16-Somersworth, N. H., First National bank closed, following discovery of shortage of $85,000. 23-Thomas F. Ryan announced retirement from finance. 26-Henry W. Poor, New York broker, assigned for creditors.
Click image to open full size in new tab
BANKER HAS BUT $2. NEW YORK, May 17.-David A. Sullivan, who was president of the Mechanics and Traders' Bank when the panic of 1907 got that bank into difficulties and caused the collapse of Brooklyn banks in which he was interested, has to borrow money now to live on, and his own property consists of a watch worth $2, according to his testimony in supplementary proceedings under a judgment obtained by the Merchants' Exchange National Bank. The testimony was filed in the county clerk's office yesterday. Sullivan was asked if any legal actions were pending against him and he mentioned several in which large amounts are involved.