Suspension led to a receiver and long-running receivership actions and prosecutions; closure implied by receiver and winding-up.
Events (4)
1.October 14, 1871Run
Cause
Bank Specific Adverse Info
Cause Details
Sensational reports of insolvency and examiner allegations that liabilities exceeded assets prompted depositor withdrawals.
Newspaper Excerpt
The run on the Third Avenue Savings Bank has ceased, and a portion of the money withdrawn is being returned to the bank.
Source
newspapers
+82 days
2.January 4, 1872Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals driven by ongoing doubts about the bank's condition and publicized examiner/insolvency concerns.
Measures
Officers asserted ability to pay; declined offered interbank advance; indicated securities convertible and intended to claim sixty days' notice if forced to resort to them.
Newspaper Excerpt
A run was commenced on the Third avenue savings bank this morning... Three hundred thousand dollars have thus far been paid out, and there is half a million dollars cash still on hand...
Source
newspapers
+3.7 years
3.September 30, 1875Suspension
Cause
Voluntary Liquidation
Cause Details
Trustees suspended operations and applied for a receiver, initiating formal winding-up/receivership proceedings.
Newspaper Excerpt
The Third Avenue Savings Bank has suspended. The trustees have made application for the appointment of a receiver
Source
newspapers
same day
4.September 30, 1875Receivership
Newspaper Excerpt
application has been made for a receiver...the present Receiver, Mr. Carman, shall manage the bank... petition for Mr. Carman's removal ... receiver of the Third Avenue Savings Bank against Richard Kelly (suits)... the receivers ... are busy examining the books and securities.
STATE BONDS-Very weak, Tennesee and new South Carolina leading the decline.
STOCKS-The Stock Exchange presented an annimated scene during this morning, and the volume of business was large. Railway speсиlation opened with a buoyant feeling, and prices advanced from 1 to 3 per cent, but the announcement that a large operation in Reading & Philadelphia had falled precipitated the market into a state of depression, and the early improvement was lost. Reading was the weakest, and declined to 100%. During the afternoon it was rumored that the Commodore had loaned some leading operators $5,000,000, which started the market up once more, and the highest prices of the day were made. The market at the close was strong and higher. The Improvement ranged from 2 to 6 per cent, and was most marked in Reading, Lake Shore, New York Central, Rock Island, Ohio, and Western Union Telegraph. The dealings in Reading were very active at the close, and large blocks of stock changed hands. The run on the Third Avenue Savings Bank has ceased, and a portion of the money withdrawn is being returned to the bank.
t NEW YORK, Oct. 10.-The panicky state of the stock market continues, and fluctuations are wide, the average decline being three or four per cent. lower compared with last evening. Great excitement prevails.Many failures are apprehended. The banks are crowded. It is stated that fifteen insurance companies were winding up and closing business. CINCINNATI, Oct. 10.-The subscriptions for the relief of Chicago continue to flow in finely, and the amount of money being contributed bids fair to reach a quarter of a million dollars. THE generous action of Louisville, who, for her population and means, has contributed so royally, is commented upon in the highest terms, and warm praises of her magnimity and generosity are heard on all sides. NEW YORK, Oct. 8.-A sensational story is printed to day, that the 3rd A venue Savings Bank is insolvent, and has been in a rotten condition for two years. It is said that the State Examiners have reported the liabilities of the bank to be $483,000 in excess of its assets. G. M. Van Buren, U. S. Pension Agent in this city, was arrested yesterday, charged by Commissioner of Pensions, Byker, with being a defaulter to the amount of $11,000. He gave bail in $15,000 to appear for trial. Rumor says a civil suit has been commenced in the Supreme Court against James Fisk. Jr., by a lady whose name has been intimately associated with him. The affidavits in the case, it is alleged, expose much of the secret history of the Erie magnate, and show to what extent the Tammany ring and the Erie ring have united for plunder. The annual election of directors of the Erie road comes off on Tuesday.
vanced to 43/6 to-day-t highest point attained for some time past. Lake Shore directors to-day declared a dividend of 4 per cent, payable February 1st-the transfer books to close January th. It is stated that there will be no dividend on St. Paul common. A run was commericed on the Third avenue savings bank this morning. The bank officers say that the bank is able to make all necessary payments The drain lasted all dav. Three hundred thousand dollars have thus far been paid out, and there is half a million dollars cash still on hand, while a million in securities can be converted inside of one day. Another savings bank offered to advance the Third Avenue a quarter of a million, but the offer was declined. Thus far about $15,000 have been paid to the small depositors of the Bowling Green savings bank.
4.January 5, 1872Public LedgerMemphis, TN
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his intention to remain till his bail was satisfactorily arranged. Even should everything be finally settled to-day, it is understood Tweed will not start for the State capital until the Senate reassembles. Tweed displays a spirit of determination to take his seat as Senator, believing himself to be the bona fide choice of the majority in his district, and he has no idea of relinquishing what he considers his right till forced to by legislative action.
The run of depositors on the Third Avenue Savings Bank increased yesterday. An immense line of depositors thronged the sidewalk. The officers are still hopeful. If obliged to resort to their securities they will claim sixty days' notice, to which the law entitles them. It is very doubtful if the bank can stand the run much longer.
This morning depositors began to gather around the Third avenue Savings Bank. By nine o'clock they had formed long lines reaching for blocks. The general impression is that the bank will not stand the run.
ment only was permitted to take part in the work of conveying the body to the depot. A large number of officers of other regiments were present, The bands of the Ninth regiment and of the Oschenbrodel Verein soon arrived; the procession then formed, and at about 2 P. M. moved. The hearse was drawu by four black horses richly caparisoned. Carriages followed containing the relatives of the deceased and others. On arriving at the depot a special train, which had been waiting, conveyed the body to Brattleboro', Vermont, for burial. Our Relations with Spain. A Washington special to the Tribune says considerable excitement was caused in Washington by the report that Senator Roberts, Spanish Minister, had demanded his passports. Careful inquiry, however, proves the report to be untrue. The Tribune also states that it is reported that the Secretary of War has telegraphed to Gen. Jeff. C. Davis, Superintendent of Recruiting, to retain all recruits in New York city instead of sending them to western stations as heretotore. Army officers regard this as a sign of preparation for possible hostilities, indeed by the aspect of our relations with Spain. Mexican Affairs. The Herald's special from Matamoras, by Brownsville, Texas, of the 7th, says dispatches from Mier state that General Trevino, Revolutionist commander, will move from Sinar and, with 1000 men, attack Matamoras. Saltillo and Mier are said to have been reoccupied by the government troops. Ex-Comptroller Connolly has left the city, but the report of his flight to South America is denied. He left the city last Friday afternoon and his friends refuse to disclose the place of his retreat. The Run on the Savings Bank. Therun on the Third Avenue Savings Bank continued without abatement today. The hearing in the case of Collendar, the bank examiner, comes off to morrow.
6.January 11, 1872The New York HeraldNew York, NY
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The Assistant Treasurer paid out $460,000 gold on account of January interest, and $65,000 in redemption of the called bonds of 1862.
# STOCKS DULL AND STRONG.
The stock market was heavy, lower and intensely dull up to the close of banking hours, when the fall in the rate for money started a smart upward movement, owing to the covering of contracts by the "bears," who, on this sudden development of monetary ease and the additional report that the Third Avenue Savings Bank had lived down the run upon it, threw up the speculative sponge. The rise, like the decline in prices, represented very little business. Union Pacific and Pacific Mail were the strongest and advanced one per cent, the latter on the introduction in the Legislature of a bill authorizing the Pacific Mail Company to reduce their capital stock to $10,000,000, or one half their present capital.
# HIGHEST AND LOWEST PRICES.
The following table shows the highest and lowest prices of the principal stocks during the day:-
7.October 1, 1875The Morning HeraldWilmington, DE
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Suspension of Third Avenue Savings Bank. NEW YORK, Sept. 30.-The Third Avenue Savings Bank has suspended. The trustees have made application for the appointment of a receiver The exact standing of the bank at present is unknown. The report of the Superintendent of the Banking Department, in March last, showthe bank's resources to be $1,526,919 02, and the liabilities at $1,519,958 47, leaving a surplus of $6,960 65 in the bank's favor.
8.October 1, 1875The New Orleans BulletinNew Orleans, LA
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SUSPENSION OF A NEW YORK SAVINGS BANK. New YORK, Sept. 30.-It is stated that the Third Avenue Savings Bank has suspended and will not open to-day for business, and that application has been made for a receiver.
9.October 9, 1875The Morning HeraldWilmington, DE
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Condensed Telegrams. Nothing has been yet heard from Pond Worcester, Mass:, who SO mysteriously appeared early this week. Mayor Wickam, of New York, has asked police commissioners to resign before 15th. the collapse of the Third Avenue Savings nk, New York, has caused a slight run on Germania Savings Bank of that city. the Tennessee Central College at Nashe was dedicated on Thursday. foody and Sankey commence their real meetings in Brooklyn on the 31st. Irs. Henry Vanduser committed suicide Brooklyn yesterday by taking morphine. grand re-union of the soldiers will be dat Manchester, N. H., three days ne: k. Twenty-five hundred soldiers are pected to be present. he Murderer of Mr. Noe, it is surposed arrested in New York, yesterday. is said that Mr. Pond of Worcester, has been foully dealt with, as he $2,500 on his person 2t the time that disappeared. P. Smith, Commissioner of Indian airs, left Washington on business yesav. IIc will not return until the new retary has been appointed, when he hand in his resignation.
10.October 9, 1875Daily Kennebec JournalAugusta, ME
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NEW YORK. Moody and Sankey. Now York, October 8. It was decided last night at the conference with the Brooklyn ministers and Mr. Moody, that the latter, with Mr. Sankey, will commence their religious labors in the Brooklyn Rink, on Sunday, October 21st, as there will be no place ready in Philadelphia at that date. Nearly all the ministers of Brooklyn, except Fulton, give them a cordial welcome. Captured. A street car thief who had picked the pocket of a merchant, last evening, was chased by the latter, when the thief turned and fired at his pursucr, but was captured just as he was about firing on a policeman. Financial. There was a slight run, this morning, on a German savings bank, caused by the collapse of the Third Avenue savings bank. The worst is believed to be over, and the bank is said to be entirely sound. The Haytien Government. The Post's Washington specialsays the Haytien Government has carried out the terms of the protocal signed here a few weeks ago in regard to the liberation of the rebellious fugitives who sought safety and protection from Minister Berrett. Suit Termi aated. The old suit of John T. Green against the city to get pay on contracts for laying down big pipes at the upper end of the city, terminated to-day in a judgment for the plaintiff for $62,000, being entered by consent. Marine Disaster. The brig J. Leighton, from Port Johnson to Boston with coal, is ashore on the east end of Varner Shoals, and is water-logged. The sea is washing her deck, and high water will probably cover her. A small boat is astern ready to take the crew off. A tug boat has taken off some of the articles.
11.October 18, 1875The New York HeraldNew York, NY
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THIRD AVENUE SAVINGS BANK. Several of the heaviest depositors of the Third Ave. nue Savings Bank have been in consultation with the bank officials relative to resuming business again. They propose that as soon as it is known what dividend can be paid each depositor shall be credited with the amount due on that basis; that the bank be run under a email expense and shall pay but four per cent interest and that all the profits shall be added to the depositors' individual accounts. They also propose that the present Receiver, Mr. Carman, shall manage the bank, but that a new board of officers be appointed. If this plan is followed the creditors will in the end, it is said, receive upward of ninety per cent, while if they push the Receiver their dividend will not amount to more than fifty per cent. They further suggest that the most needy depositors be paid a dividend of about ten per cent as soon as possible, which can be easily done. with the property that can be negotiated without loss If this plan is not agreed to by a majority of the depositors they are in favor of waiting and giving the Receiver an opportunity to negotiate the property without sacrificing it to wind it up immediately,
12.October 19, 1875The New York HeraldNew York, NY
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THIRD AVENUE SAVINGS BANK. THE PLAN FOR RESUMPTION FAVORABLY RECEIVED-ITS BASIS. The proposition of several of the heaviest depositors of the Third venue Savings Bank to reorganize the bank and run it for the benefit of the depositors meets with much favor, and upward of &wenty depositors called at the bank yesterday and heartily indorsed the idea. The matter has been canvassed by the originators, and they deem the plan very feasible. The figures on which they base their calculations are as follows:RECEIPTS. $14,000 $200,000 mortgages, interest per year 5,000 Bonds market value $72,000, interest per year. 15,000 Rent of Bank property, interest per year, 3,000 Profits on $100,000, estimated deposits Total $37,000 EXPENDITURER $25,000 Interest at four per cent to depositors 8,000 For salaries, rent and other expenses, Total $33,000 From this statement they claim the institution can be made self-supporting and the receiver, Mr. Carman, can keep the real estate, amounting at a fair valuation now to about $250,000, until higher prices can be ob
13.November 10, 1875New-York TribuneNew York, NY
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# THIRD AVENUE SAVINGS BANK.
THE PETITION FOR MR. CARMAN'S REMOVAL-ADDI-
TIONAL COUNSEL TO ENTER THE CASE-LETTER
FROM MR. FITCH.
The petition prepared by the committee of
depositors of the Third Avenue Savings Bank, asking for
the removal of Mr. Carman as receiver, was signed by
several hundred depositors yesterday, at the committes
room, No. 554 Third-ave. Their counsel, Ashbel P. Fitch,
is in daily consultation with the depositors and is
to argue the motion to remove Mr. Carman, before
Judge Westbrook, at Kingston, on Saturday. The com-
mittee appointed on Monday evening by depositors
who were dissatisfied with Mr. Fitch met last
evening at No. 293 Third-ave. Edward Mallon presided,
and F. T. Maynard acted as Secretary. All the members
were present, and claimed to represent $40,000 in de-
posits. After a free interchange of opinion the Committee
decided to employ Algernon S. Sullivan as counsel. It was
14.November 18, 1875New-York TribuneNew York, NY
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# THE ACCUSED SAVINGS BANK OFFICERS.
Messrs. Lyon, Decker, Bates, Morgan, and Carman, former officers of the suspended Third Avenue Savings Bank, charged with certifying incorrect reports to the Bank Department of the condition of the bank, gave bail yesterday in the sum of $5,000 each, at the Fifty-seventh Street Police Court, Justice Duffy presiding. Benjamin A. Lyon of No. 244 East Sixtieth-st., Henry Sauipagh of No. 244 East Twenty-sixth-st., John Davidson of No. 805 Lexington-ave., William Bates of No. 709 Pacific-st., Brooklyn, and Philip J. Seiter of No. 1,019 Third-ave., were accepted as sureties. The case was then adjourned until this afternoon at 3 o'clock, when the accused officers will decide whether to demand an examination or waive it.
15.December 10, 1875New-York TribuneNew York, NY
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THE SAVINGS BANK RECEIVERS. The receivers of the suspended savings banks have entered upon their duties and are busy examining the books and securities. Bank Superintendent Ellis stated to a reporter of THE TRIBUNE last evening that there was nothing new to say about the condition of the banks. He should return to Albany to-day, and would visit this city again, probably, next week. Herman Uhl, receiver of the German Up-town Savings Bank, filed yesterday his bond as receiver, Oswald Ottendorfer and William Steinway becoming his bondsmen. Each of the boadsmon jusiifies in $150,000. The Mutual Life Insurance Company has begun a suit against the Third Avenue Savings Bank to foreclose a mortgage for $25,000 ou property on Fifth-ave., near Eighty-fifthst., originally mortgaged to the bank, but the mortgag on which the bank was guaranteed.
16.December 20, 1875New-York TribuneNew York, NY
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THE SUSPENDED SAVINGS BANKS. At a meeting of the depositors of the Peoples' Savings Bank on Saturday evening at No. 200 Third-ave. it was decided to employ counsel to procure the removal of the present receiver and Ito bring suits against the trustees in dividually in order that the deficiency might be made good. Another meeting will be held this afternoon to receive a preliminary report of the condition of the bank. The examination in the charge of perjury against T. W. Decker, late President of the Third Avenue Savings Bank, was continued on Saturday at the Yorkville Police Court, before Justice Duffy. The accountant employed by the depositors testified that he had found many irregularities in the yearly reports and some tietitious items. The hearing will be resumed on Dee. 27. The rumor that Christian Schwartz, late President of the German Uptown Savings Bank, was in the city and had intended to sail for Europe on Saturday, proves on investigation to be false. Papers for his arrest were prepared for presentation to court on Saturday by A. B. Fitch. It is believed that the report was intended to mislead those interested.
17.March 9, 1876New-York TribuneNew York, NY
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The case of the officers of the suspended Third Avenue Savings Bank is rendered serious by the decision of Judge Duffy. They are held for making oath to a fraudulent statement of the affairs of the bank, its true condition being concealed by false entries in the books. The technical ground of the defense will not help it in popular estimation. The argument that the defendants were not liable because the deceptive report was dated a
18.April 1, 1876New-York TribuneNew York, NY
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# TRUSTEES.
Mr. William A. Darling has published a defense of his conduct in connection with the Third Avenue Savings Bank. He declares that he knew nothing of any improper or dishonest transactions by the officers of the bank while he was trustee; and as for the Annual Report, signed by him as Secretary pro tem. in 1871, and now alleged to have been false if not fraudulent, he says that it was prepared by the Actuary, and was signed in good faith. We presume that Mr. Darling's account of the affair is correct. We know of no reason to charge him with fraud, or with a guilty knowledge of the mismanagement by those who took a more active part in the business than he did, and we certainly shall not make haste to suspect him of wrong while it is possible to believe him innocent.
From his letter, however, Mr. Darling seems to have committed a fault which is unfortunately too common. He accepted a trusteeship, and took no proper pains to execute the trust. "During a portion of the "year 1865, and most of the years "1866-7," he says, "I could not give "much attention to the affairs of the "bank, by reason of my absence in Washing-ton as a representative in the XXXIXth "Congress, and confinement to my house by "serious illness." It was during this period that the loans were made which ultimately led to the failure of the bank. Afterward, it is fair to assume, indeed Mr. Darling's letter virtually asks us to assume, that he gave but a superficial attention to the business, and so, when he signed the Report, although he believed it to be a correct exhibition of the condition of the institution, he really did not know whether it was so or not.
Now the depositors placed their money in the bank in the understanding that Mr. Darling and the other trustees associated with him would supervise its management and protect their interests. When the trustees accepted office they bound themselves in honor to do that, and when they neglected their trust, to run for Congress, or to take care of their private affairs, they were guilty of a breach of trust. Mr. Darling of course only did what hundreds of others do every day, without thought that they are doing wrong. But if the standard of business morality were as high as it ought to be, gentlemen whose names are now used for bait would realize that they have no right to accept a trust unless they are prepared to discharge the obligations it involves.
19.May 31, 1877The New York HeraldNew York, NY
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Reaching the Rope's End.
There is consolation in the fact that two unfaithful bank officers have been sent to the State Prison in Connecticut. The triumph of justice in the instance of the Hartford Bank will probably encourage some of the sufferers by the frauds of the Third Avenue Savings Bank in this city and other swindling concerns to take their griefs before the Grand Jury and secure the indictment of some of their victimizers. In view of the fact that the receiver of the Third
20.January 26, 1878New-York TribuneNew York, NY
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THE COURTS.
SUIT ON A TRUSTEE'S BOND.
Judge Van Brunt, in Supreme Court Circuit, Part III, yesterday rendered a decision in favor of the plaintiff in the suit of Samuel H. Hurd, receiver of the Third Avenue Savings Bank against Richard Kelly. Mr. Kelly, who was one of the trustees of the bank, signed a bond for $10,000 to enable the bank to tide over its difficulties. All the trustees signed similar bonds for various amounts. This suit is brought to recover $12,148 60, the amount of the bond with interest. The defence was want of consideration.
21.June 17, 1878The New York HeraldNew York, NY
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# THE THIRD AVENUE SAVINGS BANK.
TO THE EDITOR OF THE HERALD :-
Why cannot the receiver of the Third Avenue Savings Bank declare a dividend? Is there no judge in the city who will bring the receiver to time as Judge Hackett brought the Aldermen? This would be the greatest service the courts could possibly render.
SUFFERER.
22.May 21, 1881New-York TribuneNew York, NY
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# COMMITTED FOR FORGERY.
Abraham Sellers was taken before Justice Flammer at the Tombs Police Court yesterday, on complaint of Francis M. Harris, president of the Nassau Bank, for having forged, March 10, a check for $6,000 on the Nassau Bank, while acting as confidential clerk to Samuel H. Hurd, of No. 334 Lexington-ave. receiver of the Third Avenue Savings Bank. Sellers was committed for trial.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
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Third Avenue Savings Institution · Episode ID 1316429790862
