9180. City National Bank (Greenville, MI)

View Charter #3243 on SPMC

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 3243
Charter Number: 3243
Start Date: June 1, 1893
Location: Greenville, Michigan (43.178, -85.253)

Metadata

Model: gpt-5-mini
Short Digest: dcad5304

Response Measures

Full suspension, Books examined

Receivership Details

Depositor recovery rate: 27.9%
Date receivership started: 1893-06-27
Date receivership terminated: 1899-06-24
OCC cause of failure: Fraud
Share of assets assessed as good: 39.1%
Share of assets assessed as doubtful: 49.6%
Share of assets assessed as worthless: 11.3%

Description

Contemporary June 1893 articles report a steady run beginning June 1 and the bank's suspension/closure by the bank examiner on June 22, 1893. A receiver was appointed soon afterward (reports by June 28, 1893 indicate the bank was in hands of a receiver) and later litigation and receiver names appear in 1896 and 1898 sources. Cause of run/suspension driven by steady withdrawals and inability to negotiate loans; later evidence shows president Leroy Moore misappropriated funds, which explains ultimate failure.

Events (5)

1. August 28, 1884 Chartered

Source: historical_nic

2. June 1, 1893 Run

Cause: Bank Specific Adverse Info
Cause Details: A steady run on the bank beginning June 1; officers were unable to negotiate loans to meet withdrawals amid a tight money market.
Measures: None successfully; continued withdrawals led to closure by the bank examiner.
Newspaper Excerpt: The failure is due to a steady run since the first of the month.
Source: newspapers

3. June 22, 1893 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank suspended by examiner after continued withdrawal of deposits and inability to negotiate loans during the money stringency; deposits $210,000, assets $312,000 reported in press.
Newspaper Excerpt: GREENVILLE, Mich., June 22.-The City National bank suspended this morning and the bank examiner took possession.
Source: newspapers

4. June 27, 1893 Receivership

Source: historical_nic

5. June 28, 1893 Receivership

Newspaper Excerpt: The City National bank, which is in the hands of a receiver. (reports June 28, 1893). Later articles (1896,1898) reference a receiver and litigation involving the bank's failure and mismanagement by its president Leroy Moore.)
Source: newspapers

Newspaper Articles (19)

1. June 23, 1893 The Wichita Daily Eagle Wichita, KS

Article from The Wichita Daily Eagle, June 23, 1893

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FAILURES. Los ANGELES, Cal., June 22.-The financial atmosphere seemed to be clearing today. The banks have received large consignments of cash from the north, and are prepared to meet all demands. The excitement has subsided considerably, and the runs on the banks were much less violent than yesterday. POMONA, Cal., June 22.-The People's bank has suspended. WASHINGTON, June 22-Extensive shipments of money, telegraphed from New York to San Francisco, were made today by direction of United States Treasurer Morgan. The bank failures of yesterday on the Pacific coast have evidently spurred the banks to increase their supply of ready money to meet any emergency that might arise. NEW York, June 22.-The failure of Henry Segelton & Co., dealers in tea and coffee, is announced. No statement is obtainable. RIDGWAY, Pa., June 22.-The Ridgway bank, a private concern, has suspended. The assets are estimated at $364,000, and the liabilities at $216,000. GREENVILLE, Mich., Jane 22.-The City National bank was closed this morning by order of the bank examiner. CHICAGO, June 22.-Baird & Bradley, the well known real estate firm, have assigned. The assets are placed at $600,000 and the liabilities at $400,000. SANTA ANA, Cal.. June 22.-The First National Bank and the Commercial bank of this place did not open their doors this morning. Both are declared to be solvent and able to pay depositors in time. PHILADELPHIA, June -The board of managers of the Reading railway, at today's meeting, decided to abandon the rehabilitation plan. An official of the company said that a foreclosure of the first mortgage was now inevitable. KEOKUK, Iowa, June 22.-0u application of the United States Trust company of New York, holding a mortgage for $2, 750,000 on the road, the federal court appointed John F. Baruard, ex-president of the Ohio and Mississippi, receiver for the Omaba and St. Louis railway. running from Council Bluffs to St. Louis. The road is 145 miles long, and rans from Pat. terson Mo., to Council Bluffs, Iowa. Its general manager is F. M. Gault of Council Bluff. PERU. Ind., June 22.-J. D. Cole, the millionaire brewer of this city, an equal partner in the firm of Crane & Co., the Cincinnati lumber firm which assigned on Wednesday, says that a disagreement with his partner caused the failure. The liabilities are given as $150,000 and the assets as $400,000. Mr. Cole is the princicreditor. Some Huntington (W. Va.) people are affected, however, the creditors in that vicinity being involved to the aggregate amount of $75,000. NEW YORK, June 22-Suit will be brought against the American Banker of this city for publishing under the heading "Closed and Liquidated Banks" the name of the Bank of Commerce of Chicago. The statement caused a run on the bank, which was in good conditian. It will sue for $100,000 damages. SAN FRANCISCO, June 22.-The Bank of Commerce closed its doors this morning. A statement on the door said that the suspension was only temporary, and that the depositors would be paid in full. NASHVILLE, Tenn., June 22.-The well known grain firm of B. Rhea & Son has gone into liquidation. The debts of the firm are about $110,000, which has been secured by the transfer or property of the firm in amounts satisfactory to the creditors. NEW YORK, June 22.DD McD. White of the Consolidated exchange has announced his inability to meet his contracts. BOSTON, June 22 -The contractors and builders Creesy & Noyes, and Benuing C. Noyes & Co., furniture manufactures, have assigned. They are involved as indorsers on the paper of the Little Kanaw. ha Lumber company, of which Creesy was president, and for which a receiver was recently appointed. No statement was made. GREENVILLE, Mich. June 22.-The City National bank suspended this morning and was taken possession of by the bank examiner, The failure is due to a steady run since the first of the month. Inability to negotiate loans embarassed the bank, The deposits are $210,000 and the assets $312,000.

2. June 23, 1893 Grand Rapids Herald Grand Rapids, MI

Article from Grand Rapids Herald, June 23, 1893

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GREENVILLE BANK CLOSED. The Stringency of the Money Will Not Affect the Town. GREENVILLE, Mich., June 21-The following notice appears on the door of the City National bank this morning: "Owing to the continued withdrawal of deposits and the stringency of the money market. this bank is closed and in my possession. (Signed) GEORGE B. CALDWELL National Bank Examiner. The suspension caused no excitement for money is free here, 69,000 having recently been paid in for potatoes. Mr. Caldwell makes this statement regarding the situation: Deposits, 8210. 000: assets, 8312.000; capital stock. 850,000. The stockholders are all responsible and the majority of the securities are mortgages. A receiver will probably be appointed and dollar for dollar paid.

3. June 23, 1893 The Anaconda Standard Anaconda, MT

Article from The Anaconda Standard, June 23, 1893

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Couldn't Keep Up. GREENVILLE, Mich., June 22.-The City National bank suspended this morning and the bank examiner took possession. The failure is due to a steady run on the bank and the inability of the bank officers to negotiate loans. So far as known. the banks deposits are $210,000 and its assets, $312,000.

4. June 23, 1893 Wheeling Register Wheeling, WV

Article from Wheeling Register, June 23, 1893

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NEW YORK, June - -D. McD. White, of the Consolidated Stock Exchange, has announced his inability to meet contracts. BOSTON, MASS., June 22.-Cressey & Noyes, contractors and builders, and B. C. Noyes & Co., furniture manufacturers, have made assignments. NEW YORK. June 99 - The amount of clearing house certificates issued to-day was $2,359,000. This brings the total up to $4,900,000 since it was decided to issue the certificates. A feeling of uneasiness still prevails in bank circies on account of the Western and Pacific coast bank troubles. All day banks and private banking houses here were receiving bad news from California, particularly Los Angeles together with a demand for currency. Bankers do not, as a rule, place much reliance on the heralded return of gold from Europe. The half million on its way here is regarded as a mere drop in the bucket. WASHINGTON, June 23. -Secretary Carlisle bas modified the notice announcing that the prepayment of interest would begin on Monday next. He has now decided that payment may be made as fast as delivery of the checks can be effected and the treasurer of the United States and the several assistant treasurers have been notified accordingly. Holders of four per cent. coupons, due July 1st, may therefore now present them for payment without rebate, and owners of the checks for July interest may have them cashed as soon as received. NEW YORK, June 23.-Henry Sheldon & Co., coffee and tea commission merchants and dealers. failed this afternoon. The law firm of Taylor & Parker has been put in charge of the house, and will endeavor as soon as possible to settle with the many creditors. Los ANGELES, CAL, June 22.-It is quiet at all the banks. Confidence has been restored. and a good many people who withdrew funds re-deposited. SAN FRANCISCO, June 22.-The Bank Commerce closed its doors this mornic A notice on the door stated the bank wa temporarily closed: depositors will paid in full. GREENVILLE, MICH., June 22. -The City National Bank suspended payment this morning, deposits $210,000, assets $312,000.

5. June 23, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, June 23, 1893

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ALL ARE STILL SOUND. The Banks of New York Taking Out Clearing=House Certificates. NEW YORK, June 22.-The amount of clearing-house certificates issued to-day was $2,350,000 which brings the total up to $4,900,000. So far the banks have remained in good condition and the Clearinghouse committee has not been called upon to examine any of them. The feeling of uneasiness still prevails in banking circles on account of the Western and Pacific Coast bank troubles. All day the banks and private banking-houses here were receiving bad news from California, particularly from Los Angeles, together with demands for currency. The bankers do not, as a rule, place much reliance on the heralded return of gold from Europe as the half million on its way here is regarded as a mere drop in the bucket. Henry Sheldon & Co., coffee and tea commission merchants and dealers, failed this afternoon. The failure caused great surprise, for the firm was one of the best known :downtown and did a large business. At the office of Taylor & Parker, who were put in charge, it was said that Sheldon & Co. had decided to suspend in preference to making any formal assignment. One of the lawyers said: "We have not an exact idea just yet as to the value of assets, but they will run up to a considerable sum. The liabilities amount to $200,000 at the least. Diomed White of the Consolidated Stock Exchange has announced his inability to meet his contracts. BOSTON, June 22.-Creesy & Noyes, contractors and builders, and Benning C. Noyes & Co., furniture manufacturers, have made an assignment. ANDERSON, Ind., June 22.-A receiver was to-day appointed for the Anderson Iron and Bolt Company. The liabilities are $34,000 and the estimated assets $93,000. NASHVILLE, Tenn., June 22.-The - wellknown firm of B.S. Rhea & Son, graindealers and commission merchants of this city, have gone into liquidation. Debts amounting to about $110,000 were paid and secured by the transfer of the assets and property of the firm in amounts satisfactory to the creditors. GREENVILLE, Mich., June 22. - The City National B nk suspended this morning and the Bank Examiner took possession. The failure Is due to a steady run on the bank and the inability of the officers to negotiate loans. So far as known the bank's deposits are $210,000 and its assets $312,000.

6. June 23, 1893 The Daily Morning Astorian Astoria, OR

Article from The Daily Morning Astorian, June 23, 1893

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BANK FAILURES. The Financial Stringency Causes Various Suspensions. San Francisco, June 22.-At a meeting of the board of directors of the Pacific Bank tonight it was decided not to open the doors tomorrow. The direct cause of the suspension is a notice from the clearing-house association that the bank's paper would not hereafter be accepted. It has been known for some time that the bank was laboring under financial difficulties, and the announcement from the board does not create much surprise. The Pacific Bank was organized in 1863 by R. H. McDonald, and its present manager is R. H. McDonald. It has a paid-up capital stock of $1,000,000. It had a nominalreserve of about $700,000 and deposits of about $1,500,000. The loans are said to be about $2,500,000. The failure seems to be altogether due to the recent monetary troubles, and it is expested that the depositors will lose nothing. It is believed that the closing of the doors of the Pacific Bank will result in the suspension of the Peoples' Home Savings Bank, a collateral institution, and practically under the same management. Santa Ana, Cal., June 22.-The First National bank and the Commercial bank of Santa Ana did not open their doors this morning owing to heavy withdrawals and inability to collect fast enough. Both are solvent and have ample assets. It is understood that both the Orange and Tustin banks have closed for a like reason. It is regarded here as a senseless scare. Pomona, Cal., June 22.-The People's Bank did not open this morning. This notice was posted on the door: "Owing to the existing financial stringency, the board of directors of this bank have decided to temporarily close its doors. Depositors will be paid in full." There is very little excitement. The belief is .general that the bank is perfectly solvent. New Whatcom, June 22.-The First National Bank, the oldest bank in the county, closed its doors today at 12 o'clock. Cashier Atkins states that every depositor will be paid in full. Greenville, Mich., June 22.-The City National Bank has been closed by the bank examiners. No statement has as yet been made. Ridgeway, Pa., June 22.-The Ridgeway Bank has failed. Assets $364,000, liabilities, $216,000.

7. June 23, 1893 The Herald Los Angeles, CA

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Eastern Bank Failures. GREENVILLE, Mich., June 22.-The City National bank suspended this morning and the bank examiner took possession. The failure is due to a steady run on the bank and the inability of the bank officers to negotiate loans. Ae far as known the bank's deposits are $210,000, assets $312,000. RIDGWAY, Pa., June 22.-The Ridgway bank has failed. Assets, $364,000, liabilities, $216,000.

8. June 23, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, June 23, 1893

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THE FAILURE CROP. A Large Coffee House in New York Suspends. NEW YORK, June 22.-The failure of Henry Sheldon & Co., tea and coffee dealers at 109 Front street, is announced. The firm is one of the best known coffee houses on the street and have done a large business. They are highly rated in the commercial agencies, and the resources are between $200,000 and $300,000. D. McD. White, of the Consolidated Stock Exchange, has announced his inability to meet contracts. BOSTON, June 22.-Creesy & Noyes, contractors and builders, and Benning C. Noyes & Co., furniture manufacturers, have made an assignment. Mr. Creesy is president of the Little Kanawha Lumber company, which lately went into the hands of a receiver, and the assignment of the two above-mentioned firms is due to their being involved as endorsees on the paper of that company. GREENVILLE, Mich., June 22.-The City National bank, of this city, was closed this morning by order of the bank examiner, Caldwell. No statement of the bank's condition has vet been made public. The cause of the suspension was the steady withdrawal of deposits and the stringency of the money market. RIDGEWAY, Pa., June 22. - The Ridgeway bank, a private institution, has suspended. A gentleman who was in close consultation with the officials of the bank during the night estimates the assets at $364,000, and the liabilities $216,000. This bank has had the confidence of the working people, many of whom have all their means in the bank's care. SANTA ANA, Cal., June 22.-The First National bank and the Commercial Bank of Santa Ana did not open their doors this morning, owing to heavy withdrawis of deposits and inability to collect fast enough. Both are declared to be solvent, have ample assets and can in time pay in full. POMONA, Cal., June 22. -The People's bank did not open this morning. This notice was on the door: "Owing to the existing financial stringency, the board of directors of this bank have decided to temporarily close its doors. Depositors will be paid in full." Los ANGELES, Cal., June 22.-A careful review of the banking situation indicates that the financial atmosphere is clearing. The arrival of a large amount of coin from the North, aggregating $250,000, and the announcement that $500,000 more would arrive today had a reassuring effect. The Farmers and Merchants' bank received $500,000 additional this morning, and opened its doors with over a million of coins in its vaults, more than enough to meet all demands. It is estimated that about $8,000,000 has been withdrawn from the banks during the

9. June 24, 1893 The Sun New York, NY

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Other Bank Failures, MINNEAPOLIS, June 23.-The State Bank of this city suspended payment this morning. the assurance being given to depositors that it would resume in a few days. The bank has a paid-up capital of $75,000. Steady withdrawals by depositors were the cause of the action. The bank is one of the smaller ones of the city. SEATTLE, June 23.-A special from New Whatcom. Wash.. says the First National Bank closed its doors at noon yesterday. Inability to realize on its securities is the cause given for suspension. The bank's officials state that their assets are double their liabilities. and that depositors will be paid in full. GREENVILLE. Mich., June 23.-The failure of the City National Bank. which suspended payment yesterday, was due to a steady run on the bank. which has continued since June 1. The examination up to this time shows deposits of $210,000 and assets of $312,000. It is not known yet whether the bank will be able to resume or will be compelled to go into a receiver's hands. The bank was examined on Sept. 28. 1892. and reported in good condition. INDIANAPOLIS, June 23.-The First National Bank of Kendallville suspended payment today.

10. June 28, 1893 The Star Reynoldsville, PA

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LATER NEWS WAIFS. FINANCIAL AND COMMERCIAL Comptroller Eckels has been officially in formed of the failure of the following National banks: The first National Bank of Kendallville, Ind.; the First National Bank of Santa Anna. Cal.; and the First National Bank of Whatcom, Wash. He has ordered Bank Examiner Packard to take charge of of the Kendal'sville bank. At San Francisco the Pacific bank has closed. The Peoples Home Saving bank, under the same management, has also,gone down. At Greenville, Mich., the City National bank has suspended. The Cataract bank, Niagara Falls, N. Y.. the largest bank in Niagara county, closed its doors. The New York clearing-house committee authorized the taking out onFriday of $450,000 in clearing-house certificates. The total now outstanding is $5,350,000. The East Side bank, Los Angeles, Cal., opened its doors again on Saturday morning. This is the first of closed banks to resume. A feeling of confidence has returned. The other banks will open in a day or two except the City bank, which is in the hands of a receiver.

11. June 28, 1893 Watertown Republican Watertown, WI

Article from Watertown Republican, June 28, 1893

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A 5-YEAR-OLD son of William Atherton, of Guthrie, O. T., while playing the about some building stone, pulled pile down on himself and was killed. ANDY MULDOON, an oil well shooter, was hauling 200 quarts of glycerine to Guffey Station, Pa. The wagon was overturned and an explosion ensued, which left nothing of Muldoon and his horses but shreds of flesh. PRINCESS EULALIA has presented to Robert A. Parke of the Pennsylvania Railroad, a beautiful and costly dagger, highly ornamented and inlaid with jewels. Mr. Parke had personal charge of the train in which the Princess traveled. A NEW YORK dispatch says that Mrs. Eleanor Fletcher Bishop, the mother of the late Washington Irving Bishop, the famous mind-reader, masannounced her marriage to Lucius Langdon Nicholas, whoi is said to be a great-great-grandson of an emperor of Russia. JOHN CRAMER and Charles Kennel tempted to drive across the tracks of the Reading Railroad Company at Philadelphia in front of an express train. The engine struck their wagon, demolishing it and instantly killing Cramer. Kennel's leg was broken and he was terribly bruised. MGR SATOLLI, papal delegate, is in St. Paui. THE People's Bank at Pomona, Cal., has closed. CONGRESS will be asked to establish a national board of health. THE Bank of Commerce at San Francisco has closed its doors. THE First National Bank of New Whateom, Wash., has failed. A RECEIVER has been appointed for the Omaha & St. Louis Railroad. THE armored cruiser Maine was launched at Brooklyn navy yard on June 22. LETTERS of credit on Europe SO far are not more than 20 percent of the amount last year. THE City National Bank of Greenville, Mich., has failed. The deposits are $210,000. A CORRESPONDENT in Rio Janeiro telegraphs that the Vatican envoy there has been removed. TYPUS FEVER has broken out in the garrison at Munich. It is due to the quality of the food. THE Reading and Grand Trunk roads have formed a close traffic arrangement. The alliance is important. WILLIAM KLINE, of Brightwood, Ind. was murdered while asleep at his home. A hatchet was the weapon. ALNIN G. CLARKE, missing from Home City, O., has been found in Chicago. Creditors will be paid in full. BURGLAR HENDERSON has confessed to the murder of John Tarpin at Haughville, Ind. He is under arrest. POPULIST railway commissioners in Kansas are preparing for an onslaught upon freight tariffs in that state. DECATUR'S grand jury caused surprise by returning no indictment against the lynchers of Sam Bush, the negro. THE Rev. Rodney Edwards, formerly pastor of Trinity Church in San embez- Francisco, was arrested charged with zling $1,200 trust funds. IT is said Justice Fitzgerald, of the California supreme court, will be named by Gov. Markham as United States senator to succeed Mr. Stanford. SEWARD A. SIMONS, a lawyer of Buffalo, is on trial for violating the alien labor law. He is accused of sending to Canada for a coachman and a gardener. PETITIONS have been addressed to Flower, of New York, declaring Tonathat Gov. troops are not needed at wanda and asking their withdrawal. THE Duke of Veragua has sent a letter to Secretary Gresham thanking the government for the manner in which he was entertained while in the United States. RAINMAKER MELBOURNE has made a contract with Senator Warren and other citizens of Laramie County, Wyo., to produce one-half inch of rain within the next five days. THE Iowa Republican convention will meet at Des Moines August 15. NINETEEN persons were prostrated by heat in New York on the 20th. JAMES GRANGE, a bookbinder at New York, assigned to Andrew Gilhooly with preferences of $20,736. THE Citizens' Exchange Bank, the of Grant, Neb., has closed its doors, State Banking Board taking charge. RATES of $51 first class and $33 second were St. Paul to San Francisco, class, announced by the Great Northern. JAMES McCLAY, charged with placing Centies the tracks of the Michigan tral Railroad with a view of wrecking a train, was convicted at Saginaw, Mich A STEADY improvement in the condiof labor is shown by the report of a tion sub-committee of the Senate committee on finance on prices and wages for fifty years. THE death is announced at New York of Mareschal Jose Simeaode Oliveria, of Brazil, president of the Brazilian com- Exmission to the World's Columbian position. JUSTICE BEACH, of New York, granted Blanc a decree of absolute Frederick from Elizabeth Blanc, the divorce "Baroness." She is enjoined from the use of his name. IT has been learned that Ralph E. Gaylord, who left Omaha, Neb., sixty have days ago, and who was thought to He insane, is in financial distress. debts. has been probably fled to escape his PHIL Eddy, who was to have been to the beautiful and accommarried plished Widow Davis, at Columbus, is said to have robbed her of $300, which Ind., she had intrusted to his keeping. WALTER BESANT, the English novelist, has arrived at New York. Miss LOUISE ESTLING committed suicide at Sedalia, Mo., by hanging. MGR. SATOLLI' attitude on the school Pope. question is again indorsed by citizen the of PHILLIP GRAVER, a wealthy Allegheny City, Pa., committed suicide

12. June 29, 1893 Eagle River Review Eagle River, WI

Article from Eagle River Review, June 29, 1893

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NEWS PARAGRAPHS. DR. McGLYNN has returned to New York from Rome. and Savings has no, THE Cal., Loan suspended. Bank of FresTHE Bassett planing mill at Minneapolis was burned. The loss is $50,000. GERMANY has broken off the negotiations with Russia for a commercial treaty. THE Minnesota Sangerbund at St. Paul elected Carl Heerle of Duluth president. E. H. TODD, a Quincy, Ill., carriage manufacturer, committed suicide with revolver. MILTON BOYER was adjudged insane at a Galesburg, Ill. He shot his sister week ago. The Turner & Seymour hardware factory at Torrenton, Conn., burned with a loss of $85,000. THE Braddock wire mills at Rankin, Pa., have been shut down and 700 men are out of work. CHINA asks a new treaty with the United States in view of the immigration situation. FRANK HAYES, 19 years old, was sentenced to imprisonment for life at Detroit for murder. BURGLARS robbed the safe of the Buckeye dry goods store at Terre Haute, Ind., of $600 in cash. MRS. JENNIE JOHNSON committed suicide at Cleveland by leaping from a fourth-story window. PRESIDENT CLEVELAND has accepted Col- an invitation to attend the Williams 1ege centennial celebration. REAR ADMIRAL MARKHAM and the court- offiof the Camperdown are to be martialed cers for the Victoria disaster. A UNION of French-Canadians and other Catholics in the Dominion urged by ex-Premier Mercier, of Quebec. TWENTY plantations were flooded beNew Orleans by a break in the low levee. The loss will amount to $1,000,000. BURGLARS robbed the hardware store G. E. Vanderveen, the grocery of Smeenge, of and the post-office at Holland, Mich. FIVE men were entombed in a mine Swissvale, Pa., by a fall of earth. will near All were rescued, but Henry Kane probably die. IN order that holders of Reading genmortgage bonds may receive their eral interest, arrangements are being aucmade July to sell the coal on hand at tion. A 5-YEAR-OLD son of William Atherof Guthrie, O. T., while playing the about ton, some building stone, down on himself and was pile well pulled killed. ANDY MULDOON, an oil shooter, hauling 200 quarts of glycerine was to Guffey was Station, Pa. The wagon overturned and an explosion ensued, his which left nothing of Muldoon and horses but shreds of flesh. PRINCESS EULALIA has presented to Robert A. Parke of the Pennsylvania Railroad, a beautiful and costly dagger, with ornamented and inlaid highly Mr. Parke had personal charge travof jewels. the train in which the Princess eled. A NEW YORK dispatch says that Mrs. Eleanor Fletcher Bishop, the mother the of the late Washington Irving as announced her Bishop, famous marriage mind-reader, to Lucius Langdon Nicholas, who is said to be a great-great-grandson of an emperor of Russia. JOHN CRAMER and Charles Kennel at tempted to drive across the tracks Phil- of the Reading Railroad Company at adelphia in front of an express demol- train. The engine struck their wagon, it and instantly killing Cramer. was ishing Kennel's leg was broken and he terribly bruised. MGR SATOLLI, papal delegate, is in St. Paui. THE People's Bank at Pomona, Cal., has closed. a CONGRESS will be asked to establish national board of health. THE Bank of Commerce at San Francisco has closed its doors. THE First National Bank of New Whatcom, Wash., has failed. A RECEIVER has been appointed for the Omaha & St. Louis Railroad. THE armored cruiser Maine was on launched at Brooklyn navy yard June 22. LETTERS of credit on Europe so far are not more than 20 percent of the amount last year. THE City National Bank of Greenville, Mich., has failed. The deposits are $210,000. A CORRESPONDENT in Rio Janeiro telegraphs that the Vatican envoy there has been removed. TYPUS FEVER has broken out in the garrison at Munich. It is due to the quality of the food. THE Reading and Grand Trunk roads have formed a close traffic arrangement. alliance is important. WILLIAM KLINE, of Brightwood, home. Ind., was murdered while asleep at his A hatchet was the weapon. ALNIN G. CLARKE, missing from Chicago. Home City, O., has been found in Creditors will be paid in full. BURGLAR HENDERSON has confessed Haugh- to the murder of John Tarpin at ville, Ind. He is under arrest. POPULIST railway commissioners onslaught in Kansas are preparing for an tariff's in that state. grand jury caused surprise the upon DECATUR'S freight against by returning no indictment lynchers of Sam Bush, the negro. THE Rev. Rodney Edwards, formerly Franof Trinity Church in San cisco, pastor was arrested charged with embezzling $1,200 trust funds. is said Justice Fitzgerald, of the California IT supreme court, will be named

13. November 4, 1896 The Copper Country Evening News Calumet, MI

Article from The Copper Country Evening News, November 4, 1896

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OF INTEREST TO BANKERS. Suit Which Has Been Submitted to the United States Court. Grand Rapids, Mich., Nov. 3.-A suit of more than usual Interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced, showing Moore's methods, is sensational in its nature.

14. November 4, 1896 The True Northerner Paw Paw, MI

Article from The True Northerner, November 4, 1896

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MICHIGAN PICKINGS. WHAT 13 GOING ON IN OUR OWN STATE. Items Whsch Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced, showing Moore's methods, is sensational in its nature.

15. November 6, 1896 The Times Owosso, MI

Article from The Times, November 6, 1896

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MICHIGAN PICKINGS. WHAT IS GOING ON IN OUR OWN STATE. Items Whsch Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors. Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced. showing Moore's methods, is sensational in its nature.

16. November 7, 1896 Arizona Republican Phoenix, AZ

Article from Arizona Republican, November 7, 1896

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ARE THEY LIABLE? Important Legal Question Submitted to the Court. GRAND RAPIDS, Mich., Nov. 6.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John Foster, directors. Leroy Moore was president of the bank. When it failed in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and one-half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore, and the directors continued to let him have his way, and he increased his liability by $54,000 before the failure. The sult is to determine whether the directors can be held financially responsible for the neglect of duty for permitting Moore to continue his loaning.

17. November 11, 1896 The True Northerner Paw Paw, MI

Article from The True Northerner, November 11, 1896

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MICHIGAN PICKINGS. WHAT 13 GOING ON IN OUR OWN STATE. Items Whech Will Be of Interest to Our Readers Gathered from Here and There -Crimes Casualties and Other Occurrences of the Week Reported by Wire, Grand Rapids, Mich., Nov. 3.-A suit of more than usual interest to bankers has been submitted in the United States court. It is that of Robert T. Gibbons, receiver of the City National bank of Greenville, against Henry N. Anderson and John J. Foster, directors, Leroy Moore was president of the bank. When it failed, in June, 1893, he was found to be a debtor to the amount of $175,000, or for three and a half times the total capital of the bank. In October, 1892, his indebtedness, direct and as indorser, was $121,000, and the comptroller of the treasury ordered a curtailment. The bank was managed entirely by Moore and the directors continued to let him have his own way, and he increased his liability by $54,000 before the failure. The suit is to determine whether the directors can be held financially responsible for their neglect of duty in permitting Moore to continue his looting operations. Some of the testimony adduced. showing Moore's methods, is sensational in its nature.

18. December 18, 1898 The Herald Los Angeles, CA

Article from The Herald, December 18, 1898

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National Bank Changes According to the latest bulletin of the comptroller of the currency, of date December 12th, the following changes have taken place: National Banks Organized.-The Calcasieu National bank of Lake Charles, Louisiana; capital, $100,000. H. C. Drew, president; Frank Roberts, cashier. (Date of certificate, December 6, 1898.) The National Hamilton bank of Boston, Mass.; capital, $500,000. Henry G. Denny, president; Geo. H. Davenport, cashier. (Date of certificate, December 7, 1898. ) Applications to Organize National Banks Approved.-The Western National bank of Oklahoma City, Oklahoma territory, with a capital of $50,000, by the following persons: M. L. Turner, Guthrie, Oklahoma; A.L. Frick and others. The Citizens' National bank of Springfield, Ohio, with a capital of $100,000, by the following persons: Edward S. Buckwalter, Springfield, Ohio; John L. Zimmerman, Charles S. Kay and others. Liquidation.-The Pontiac National Bank, Pontiac, Mich. The Farmers and Merchants' National bank of Hickman, Ky. The Globe Natonal bank of Cheago, Ill. Insolvent/The First National bank of Flushing, Ohio; Henry M. Davies appointed receiver in place of James W. De Lay. The City National bank of Greenville, Mich.; Thomas A. E. Weadock appointed receiver.

19. September 28, 1906 The Evening Times Grand Forks, ND

Article from The Evening Times, September 28, 1906

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of Address William Barret Ridgely COMPTROLLER OF THE CURRENCY. Delivered Before the Pennsylvania Bankers Association at Philadelphia, Pa., Thursday Evening. making or causing to be made tho Except from very rare and exceptional causes, such as sudden panics ough examinations and audits of th or runs due to false rumors. there is bank books. and checking up not onl never any reasonable excuse for the the clerks and minor officials, but als failure of a bank or trust company It is almost always the result of inthe presidents, cashiers and manag excusable folly and incompetence or ing officers. There are, however, sti dishonesty and fraud, and often due too many cases where the director a to all of these combined When content themselves with choosing of bank does fail. it is the fault of the ficers whom they believe to be hones board of directors Many others may and competent and leaving everythin be to blame, perhaps more than the directors, but the final responsibili* to them. Fortunately when the righ kind of officers are chosen, the result of bank management rests upon the obtained are often quite as good a directors, and they are to blame. that is, the whole board as a board and when the directors follow up the busi the members as individuals are to ness more closely There is much t blame if they allow the officers or perbe said in favor of one man manage haps only a few of the directors. to so ment of any business and especiall; manage the business of the bank as to of a bank, when you have the righ bring on insolvency It may be the man in the right place It is apt t be vigorous, efficient and successful president or cashier who commits in detail the acts or crimes which wreck Many of the great banks of the world as well as the most successful rail a bank: the directors may be entirely ignorant of what is being done. but ways, industrial and commercial en it is their fault if they allow themterprises, owe their commanding suc selves to be kept in ignorance or to be cess to the genius of one strong mar who, by his force and high character deceived and thus permit it to be done has completely dominated their af It is the duty of the directors of a fairs. bank to keep themselves informed When a board of directors finds such about its business and to so direct its affairs as to prevent its failure a man, or when he finds himself an chooses a board of his own to sup The laws under which most joint Ir port him. it makes a great bank stock banks are organized define the most cases even where a great genius duties and responsibilities of directors is no chosen, the directors elect to in practically the same terms. The office men of high character and suf National Bank Act provides that The ficiently ability American banks. cer affairs of each association shall be tainly since the civil war have been managed by not less than five direc very successful The record of the tors,' and that "each director when national banks is remarkable in the appointed or elected, shall take an oath small number of failures and the comthat he will. so far as the duty de paratively small amount lost to devolves on him, diligently and honestly positors ot the many billions of doladminister the affairs of such associa lars on deposit The trust companies tion, and will not knowingly violate or and the banks cf many states have willingly permit to be violated any highly satisfactory and commendab of the provisions of this title records These records have been In many cases the federal courts largely made by banks run entirely by have declared that a director's duty is their officers with little real supervinot discharged by merely electing sion by the directors, for such manofficers of good reputation, ability and agement has been the rule rather than integrity to manage a bank and then the exception. leaving its business in their hands The success gained is a tribute The board of directors. the courts have mainly to the judgment of directors in held. is bound to maintain a superchoosing their officers and the honesty vison of the affairs of their associaand ability of the American bank of tion, and to have a general knowledge ficer The results are better than one of the character of its business and the might have supposed, but they are not manner in which it is conducted, and as good as they should be The weak. to know at least upon what security ness and shame of American banking its larger lines of credit are given is that more often than it should hapThe United States supreme court depen. there are scandalous failures of cision most in point is the case of banks which have been robbed and Briggs vs Spaulding, which was suit lotted by officers who had so gained brought by the receiver of the First the confidence of their shareholders National Bank of Buffalo against the and directors as to be given absolute defendants directors. for failure control of the business with little or to perform faithfully and diligently the no supervision check or examination duties of their offices: that they had on the part of the directors failed to call and hold meetings an There is no excuse for such robbery point any committee of examination of a bank It can not happen where require bonds or make personal ex the directors are honest and doing amination into the conduct and man their duty It is no answer for the agement of the affairs of the bank but directors to sav they had confidence allowed the executive officers to mianin their officers and did not know the age it without supervision In render real condition It is their business and ing its decision, the court said. Mr their sworn duty to know the condi Chief Justice Fuller delivering the tion. and to prevent such stealing opinion It is no answer. either to blame the Without reviewing the various bank examiner or the supervising audecisions on the subject, we hold thority The examiner and the bank that directors must exercise oring department may or may not be to dinary care and prudence in the blame. Sometimes they are at fault in administration of the affairs of the not having discovered conditions soon bank, and that this includes some er. But the examiner can not an thing more than officiating as should not be expected to entirely pre figure-heads. They are entitled vent wrond doing in a bank except SO under the law to commit the bank far as fear of detection may do so ing business, as defined to their The examiner does his duty if he disduly authorized officers but this covers dishonesty and crime after it does not absolve them from the is committed He can do nothing unti some, perhaps all, the harm is done duty of reasonable supervision nor ought they to be permitted to until the loan is made the forged note be shielded from liability because is in the bank the fraudulent entry of want of knowledge of wrong made and the money gone. It is for doing. if that ignorance is the rethe examiner to discover fraud It is sult of gross inattention (Briggs the directors' business to prevent it vs. Spaulding, 141 U S. 132.) If they do not, they are guilty of crim inal intent or almost equally crimina In the case of Gibbons vs. Anderson neglect. No officer can rob and ruin et al. decided by the United States a bank. unless the directors are his circuit court for the western district confederates or his dupes of Michigan April 21, 1897. suit was For probably the same reason that brought by the receiver of the City we all think all men are mortal, but National Bank of Greenville, to estabourselves, bank directors are apt to lish the liability of defendants who believe their bank and its officers are were directors of the bank. for negliexceptions to the rule and to feel such gence in their performance of their absolute confidence in them as to al duties as such One of the directors low them to continue to run the bank of the bank Moore. from the organibusiness as they always have done zation of the institution dominated the without close supervision and with lit bank and through his malversation of tle or no searching examination. Have the funds the bank failed The other we not, they say to themselves, known directors, the defendants in this suit. these men all their lives Are we claimed to have been ignorant of any not sure they are honest? Do we no thing wrong in the affairs of the bank unitl it failed The court, by Justice know they are able and faithful? Hap pily in the great majority of cases they Severens, district judge, said referring do. But they must remember it is to the case of Briggs vs. Spaulding men with just such reputations who In my opinion it does not meet occassionally turn out to be scoun the requirement of this statedrels, and are discovered too late to ment of the law that directors have been faithless to every relation may confide the management of in life and to have robbed and deceived the operations of the bank to a every one who has trusted them. How trusted official. and then repose frequently it seems that they plunder upon their confidence in his right the most ruthlessly those whom they conduct, without making examinawould seem most in honor bound to tions themselves, or relying upon protect It must be remembered that his answers to general questions it is only men who have the talent: put to him with regard to the to establish reputation for capacity status of the affairs of the bank. probity and honor. who get the chance The idea is not to be to commit such crimes They are gentolerated that they serve as mere erally men of unusual talents bank ly gilded ornaments of the insti wrecker is never fool It takes tution. to enhance its attractiverather exceptional ability to first ac ness, or that their reputations quire a position where it is possible should be used as a lure to cusand then to carry out the plan Only tomers It is inconsisa man of considerable nerve and cour tent with the purposes and policy age would dare to try such a thing or of the banking act that its vital could carry it on without early dis interests should be committed to covery. What I wish to impress mos one man, without oversight and on any bank director who may happen control (Gibbons vs. Anderson to hear or read what I say, is that 80 Fed, Rep., 345.) it is men who have just as high reputa We thus see that the highest courts tions and stand just as well amon have decided and confirmed what is their friends and associates as the mer the inevitable conclusion from any you are trusting, who occasionall thoughtful consideration of the subcommit these gigantic frauds in banl ject, that directors must actually dir management No bank director o ect the affairs of their bank, and for a shareholder who hears or reads this director to fail to do so is to violate can fail to remember a case or many his oaht and disobey the law in mancases where men whose intimate ner for which he is not only morally friends and closest business associates but legally responsible had the same reason to trust them at This is not any view of the relationyou have to trust the officers of your ship of directors to their trusts, but swindled their closest friends an is as old as the management of joint neighbors bringing shame, sorrow an stock companies by boards of direcruin on all who had blindly depende tors, chosen by the shareholders to upon them. Your men may be all you represent them It is the only tenable think them; most of them are: let u theory in relation to a director's duty hope that all of them are; but you and responsibility How thoroughly is who are both morally and legally re sponsible can it actually carried out in practice? In