Mechanics & Traders Bank (New York, NY)

Episode Information

Episode UID
9027559491297
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
902755949 hash
Start Date
January 30, 1908
Location
New York, New York (40.714, -74.006)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
104c6eca99a12bb4

Response Measures

None

Description

The articles discuss the 1908 suspension and subsequent reopening as the Union Bank, which later failed. The 1907-1908 episode involved a run and suspension during the Panic of 1907.

Events (3)
1. January 30, 1908 Suspension
Cause
Macro News
Cause Details
The bank suspended during the Panic of 1907/early 1908 following heavy withdrawals.
Newspaper Excerpt
the closing of the Mechanics and Traders' Bank of Brooklyn and its reopening as the Union Bank
Source
newspapers
2. August 17, 1908 Reopening
Newspaper Excerpt
its reopening as the Union Bank, since closed
Source
newspapers
3. July 31, 1911 Other
Newspaper Excerpt
The investigation of the State Banking Department into the circumstances of the closing of the Mechanics and Traders' Bank
Source
newspapers

Newspaper Articles (2)
1. July 31, 1911 The Evening World New York, NY
Article from The Evening World, July 31, 1911

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Article Text

Former Examiner Swears Offer Was Made by Relative of Receiver. HELD OUT FOR RAISE. Suspecting Plot, Says Witness in Union Inquiry, Tried to Draw Howe On. The investigation of the State Banking Department into the circumstances of the closing of the Mechanics and Traders' Bank of Brooklyn and its reopening as the Union Bank, since closed, went on at the Kings County CourtHouse to-day. William Justice Hayes, a former State bank examiner, who had talked at previous hearings regarding the offer to him of a bribe, told a different story under oath from the informal statement which he made last week. At that time he said that the only bribe offer which had been made to him was at a time when he was a Federal examiner in California. To-day he said that it was in connection with the investigation of the Jenkins Trust Company in Brooklyn says RELATIVE OF OFFICER OFFERED $50,000. "A man came to me," he said, "who was related to one of the officers of the bank, and told me that there would be $50,000 in it if I would go easy on my report." Assemblyman Goldstein, who was examining the witness, demanded the name. "Moe Howe, brother of one of the receivers," was the reply. "I thought it was part of a plot to discredit me and get me out of the department, so I pretended I meant to accept, just to see what was up. I said the amount was not enough. I asked how much money

2. September 6, 1911 The Evening World New York, NY
Article from The Evening World, September 6, 1911

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Article Text

BANK'S RATE LOW ON LOANS TO FOLK OF THE MANAGER Woman Paid Mechanics and Traders Ten Per Cent.-Insiders Borrowed for Two. George Tonkonogy was put through a long and painful examination by Counsellor James Cropsey in the examination to-day into the failure of the Union Bank of Brooklyn, of which Edward M. Grout was president, and of its predecessor, the Mechanics and Traders' Bank, of which David A. Sullivan, now under indictment, was president. The examination was held in Brooklyn before Deputy State Banking Superintendent Dodge. Mr. Tonkonogy, a Brownsville lawyer, had a prominent and commanding position in the Atlantic avenue branch of the Mechanics and Traders' Bank. Mr. Cropsey sought to establish that friends and relatives of Tonkonogy had little difficulty in getting money from the bank at less than reasonable interest, while other customers were not eavored. Mrs. Ann Murphy, an elderly woman, testified that she borrowed $20,000 from the Mechanics and Traders Bank, through the Atlantic avenue branch, at 10 per cent. interest, and paid it back. Then Mr. Tonkonogy was sworn and admitted, under close questioning, that his brother-in-law, George Weiner, in 1905, borrowed $60,000 from the bank on his note and paid only $1,200 for the accommodation. The bank still holds the note. Mr. Tonkonogy admitted that the money was loaned to his brother-in-law at the rate of 2 per cent. per annum. Also, he admitted, his brother-in-law had been a depositor only a short time. The $60,000 was loaned to Weiner to aid him in swinging a real estate and building transaction involving $84,000. All Weiner had of his OWN when he got the loan was $3,000. Mr. Tonkonogy was then questioned about a loan by the bank to the Pioneer Construction Company in 1907, just before the panic. The Pioneer Construction Company, it was brought aut, was organized by Mr. Tonkonogy's fatherin-law, Hoertz Zuckerman, to build a synagogue in Brownsville. The synagogue was built, but did not prosper, It was abandoned and the