National Broome County Bank (Binghamton, NY)

Episode Information

Episode UID
151301141
Episode Type
Suspension โ†’ Closure
Bank Type
national
Bank ID
15130 national
Charter Number
1513
Start Date
January 24, 1895
Location
Binghamton, New York (42.099, -75.918)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d29663ebcc411470

Response Measures

None

Receivership Details

Depositor recovery rate
51.8%
Date receivership started
1895-01-28
Date receivership terminated
1905-09-30
OCC cause of failure
Fraud
Share of assets assessed as good
42.0%
Share of assets assessed as doubtful
28.9%
Share of assets assessed as worthless
29.1%

Description

Suspended by officials amid discoveries of defalcation in the co-located savings bank; later placed in receivership.

Events (4)

1. August 9, 1865 Chartered
Source
historical_nic
2. January 24, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closures followed discovery of defalcation by Tracy R. Morgan and badly kept books in the co-located Chenango Valley Savings Bank; officials voluntarily closed/suspended fearing a run.
Newspaper Excerpt
Broome County National Bank, in the same rooms, has suspended, Morgan is cashier.
Source
newspapers
3. January 28, 1895 Receivership
Source
historical_nic
4. January 29, 1895 Receivership
Newspaper Excerpt
The comptroller of the currency has appointed Orris U. Kellogg of Cortland, N. Y., receiver of the National Broome County bank of Binghamton, N. Y., which suspended payment on the 24th inst.
Source
newspapers

Newspaper Articles (20)

Article from Daily Kennebec Journal, January 25, 1895

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ANOTHER BANKING CRASH. One Bank Closed and One Suspends at Birmingham, N. Y.-Defalcation by Treasurer. Albany, N. Y., Jan. 24.-The following dispatch from State Bank Examiner Backus at Binghamton, was received at the state banking department, this afternoon: "Have closed the Chenango Valley Savings Bank; defalcation by Treasurer Morgan; the cause and full extent not known. Books in bad condition; not written or posted; defalcation confessed. Broome County National Bank, in the same rooms, has suspended, Morgan was cashier. A burglary of the vault was attempted about 3 A. M. by Cashier Morgan and President Brownson of the National Bank, but was prevented by a detective I had engaged."


Article from The Daily Morning Journal and Courier, January 25, 1895

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CLOSED THE BANK. It Was Caused by the Defalcation of the Treasurer. Albany, Jan. 24.-The following dispatch from State Bank Examiner Backus, at Binghamton, was received at the state banking department this afternoon: "Have closed Chenango Valley bank. Defalewation by treasurer. The cause and full extent not known. Books in bad condition. Not written or posted. Defalcation confessed. Broome County National bank, in same rooms, has suspended. Morgan is cashier. Burglary of vault attempted about 3 a. m. by Cashier Morgan and President Browne of the national bank; prevented by detective whom I had engaged." The trouble inthese banks, occupying quarters in the same rooms of the one building, will, it is thought, be a strong argument in favor of the bill pending in the senate to compel savings banks to occupy separate rooms.


Article from The Jersey City News, January 25, 1895

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BROOME'S BANK TROUBLES. BINGHAMTON, N. Y., Jan. 25, 1895.Late yesterday afternoon it was learned that the following sensational dispatch had been sent by State Bank Examiner Philo H. Backus to the State Banking Department at Albany:"Have closed Chenango Valley Savings Bank; defalcation by Treasurer Morgan; the cause and full extent not known. Books in bad condition; not written or posted: defalcation confessed. "Broome County National Bank in same room has suspended; Morgan is cashier. Have wired Supt. Preston in full in New York. Burglary of vault attempted about 3 A. M. by Cashier Morgan and President Brownson of National Bank; prevented by detective whom I have engaged." The truth of these charges is questioned by citizens, and there is considerable criticism regarding the action of Examiner Backus for indulging in such extraordinary statements. It is believed that the action of the bankers and the condition of the bank's affairs will not justify the charges. D. L. Brownson last evening made the following statement:-"The books and papers that Mr. Morgan and myself attempted to remove to his house on Thursday morning were entirely of a private nature, belonging to Mr. Morgan individually, and were in no way connected with either the Broome County National or the Chenango Valley Savings Bank.'


Article from Birmingham Age-Herald, January 25, 1895

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BADLY TANGLED BOOKS CAUSED THE CLOSING DOWN OF A BINGHAMPTON, N. Y., BANK. BINGHAMPION, N. Y., Jan. 24.-At noon the comptroller of the currency assumed charge of the National Broom County bank. This bank was voluntarily closed by its officials this morning. They feared a run, which the bank was totally unprepared so meet. It is asserted th the Chenango Valley bank (state bar which was also closed, has securities sited with the Bingbank ufficient to meet hampton Savin all obligations. The bank examiners have been at work on the books of the savings tank for three days. ey refused to divulge the result of tb vestigations, but it is evident that affairs of the bank are badly tangle The witho deposits at the Bingbampton Savings bank continued throughout the day. There was a run on the Binghampton Trust company. At both banks the officials say they have sufficient funds to pay every depositor in full and more currency on the way. A meeting of the directors of the Chenango Valley bank was held at 11 o' clock, and it was decided to post the regular sixty day notice for the withdrawal of deposits. Officers of the bank state that they have sufficient securities in the hands of the bank examiner to pay every depositor in full and leave a good surplus. The only trouble appears to be that the books are badly mixed up and need a thorough straightening.


Article from The Norfolk Virginian, January 25, 1895

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HEAVY BANK RUNS. Series of Examinations and Startling Disclosures. By Southern Associated Press ALBANY, N. Y., Jenuary 24.-The following dispatch from State Bank Examiner Philo H, Backus, at Binghamton, was received at the State banking department thisafternoon: "Have closed Chenango Valley Savings Bank; defalcation by Treasurer Morgan; the cause and full ex tent not known; books in bad condi tion; not written or posted; defalcation confessed, Broome County National Bank in same room has suspended. Morgan is cashier. Have wired Superintendent Preston in full to New York and notified Comptroller of Currency. Received replies from both. Burglary of vault attempted about 3 a, m. by Cashier Morgan


Article from The Norfolk Virginian, January 25, 1895

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and President Brownson of National bank. Prevented by detective whom [ bad engaged." BINGHAMTON, N. Y., January 24.- Citizens had recovered from the shock following the suspension of the Merchants' Ross private bank, and affairs were taking on their nor. mal aspect when the rumor was circulated that the Chenango Valley Bank had drawn its ourtains. On the beels of this startling report came the aunouncement that the National Broome County Bank had also closed. Citizens were fairly paralyzed with astonishment and the apprehension of small depostors was magnified by exaggerated stories which were circulated. A heavy run on the Binghamton Savings Bank was begun and the crowd of anxious depositors increased with the hours, but the bank was prepared for the emergenoy. The officers stood behind the heavy plate glass windows, sur rounded by piles of shining gold and silver. Runs were also made upon the other banks of the city, but all de. positors were promptly paid, and when the doors were closed at 3 o'clock it was evident that the rusues were over.


Article from Richmond Dispatch, January 26, 1895

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Protect the Deposito rs. The people of New York State and city, and indeed we might say of the whole country, had on Thursday the advantage of an object-lesson well calculated to teach them that depositors in banks ought to have the same perfect protection which moteholders already possess. The circulating notes of the National Broome County Bank of New York are as good and as current to-day as they were last week, but the deposits in that bank are not considered safe by the owners. Read yesterday's telegrams on this subject: "This bank was voluntarily closed by its officials this morning. They feared a run, which the bank was totally unprepared to meet." "They feared a run." What sort of run? Why, they expected the depositors to come to the bank and demand their money. Read again: "The withdrawal of deposits at the Dinghamten Savings Bank continued throughout the day. There was a run on the Binghamton Trust Company. At both banks the officials say they have sufficient funds to pay every depositor in full and more currency on the way." "Whidrawal of deposits" is # eughe-


Article from Waterbury Evening Democrat, January 29, 1895

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Receiver For a Bank. WASHINGTON, Jan. 29.-The comptroller of the currency has appointed Orris U. Kellogg of Cortland, N. Y., receiver of the National Broome County bank of Bing hamton, N. Y., which suspended payment on the 21th inst.


Article from Evening Star, January 29, 1895

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Broome County Bank Receiver. The controller of the currency has appointed Orris U. Kellogg of Cortland, N. Y., receiver of the National Broome County Bank of Binghamton, N. Y.


Article from The Providence News, January 29, 1895

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To Straighten Out Accounts. WASHINGTON, Jan. 29.-The comptroller of the currency has appointed Orris U. Kellogg receiver of the National Broome County bank of Binghamton, N. Y., which suspended payment on the 24th lost.


Article from The Vermont Watchman, January 30, 1895

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Savings Bank Embezzler. THE latest bank defalcation comes from Binghamton, N. Y., where the Chenango Valley Savings Bank and the Broome National Bonk, of which Tracy R. Morgan was treasurer and cashier, have closed their doors because of embezzlement by that official. He has confessed the crime. The books of the banks are in a deplorable state. News of the failure caused a run on the Binghamton Savings Bank. The crowd of anxious depositors at that institution was great, but the bank was prepared for the e mergency. The officers, pale but cool and composed, stood behind the heavy plateglass windows surrounded by piles of shining gold and silver. They had protected themselves with a large amount of cash, and during the day telegrams were received from metropolitan banking institutions to the effect that they would support the Binghamton banks for unlimited amounts.


Article from Connecticut Western News, January 31, 1895

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Receiver For a Bank. WASHINGTON, Jan. 29.-Thecomptroller of the currency has appointed Orris U. Kellogg of Cortland, N. Y., receiver of the National Broome County bank of Binghainton. N. Y., which suspended payment on the 24th lust.


Article from The State Rights Democrat, February 1, 1895

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At the Editor's old Home BINGHAMTON, N.Y., Jan. 28.-The city is bankrupt. The police funds were on deposit in the National Broome County bank, which closed its doors in last week's panic and is now in the hands of Examiner Van Vranken. The total amount of the city's funds in the bank was $101,036.85, and this is needed February 1 to pay policemen, teachers and other employes and public officers. The board of alderman held a special meeting,and decided to borrow money enough for current expenses. Broome county is in almost as bad shape, as all the county funds were on deposit in the bank, amounting to about $100,000. All business in the city is practically paralyzed.


Article from The State Rights Democrat, February 1, 1895

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them remain there, if the subscriptions were unpaid. The assistant attorney-general has made a search of the statutes, and determined that there is no federal law covering such cases and that newspaper subscriptions are governed by legal laws like other private contracts. Voorhees Bill. WASHINGTON, Jan. 29.-As soon as the finance committee reassembled this afternoon, Representative Voorhees, who had his bill pr nted since the morning adjournment, submitted it to the committee. Separate votes were taken, and it was soon apparent that nothing could be done and an adjournment was taken with nothing accomplished. A Will stolen. SAN FRANCISCO, Jan. 29,-The discovery was made shortly before the office of the county clerk closed yesterday afternoon that the will of the late ex-Senator James G. Fair had been stolen, and that in its place: a lot of worthless papers had been inserted in the envelope that contained the bulky document. At the Editor's old Home BINGHAMTON, N. Y., Jan. 28.-The city is bankrupt. The police funds were on deposit in the National Broome County bank, which closed its doors in last week's panic and is now in the hands of Examiner Van Vranken. The total amount of the city's funds in the bank was $101,036.85, and this is needed February 1 to pay policemen, teachers and other employes and public officers. The board of alderman held a special meeting,and decided to borrow money enough for current expenses. Broome county is in almost as bad shape, as all the county funds were on deposit in the bank, amounting to about $100,000. All business in the city is practically paralyzed. A Substitute Bill. WASHINGTON, Jan. 28.-A substitute for the Reilly Pacific railroads bill has been introduced in the house by Boatner for the members of thecommittee on Pacific roads, who made the minority report against the Reilly bill. The bill provides for a Pacific railroad commission to take charge of the governmentaided roads when they default in payment of their debts, and to control them as representatives of the government until a comprehensive plan can be adopted by congress for settling the relations of the companies with the government. Message. WASHINGTON, Jan. 28.-The president today sent to congress a message in which he advises the selling of bonds abroad, the retirement of greenbacks and the making of duties payable in gold. Not Guilty. BOSTON, Jan. 28.-The jury in the case of Attorney John F. Dore, brought from Seattle, Wash., charged with the embezzlement of $250,000, returned a verdict today finding him not guilty on six counts. On the other three, the jury could not agree. It improbable that the case will come up again. Rebels Routed COLON, Jan. 28.-Rebels and government troops had an engagement Friday at Pradera. The rebels were routed. The inhabitants are depending upon the Americans for protection. The United States cruiser Atlanta is coaling here, and the New York isexpected. A French warship has been ordered to Colon. A Cord Showing WASHINGTON, Jan. 27.-Members of congress who believe that the income tax is an equitable method of raising revenues are gratified at the unexpectedly good showing of the preliminary canvass made by the collectors of the intermal revenue at the direction of Secretary Carlisle. They believe that the greater the amount realized from this tax the more popular it will become,and the more firmly rooted as a part of the policy of the government. From the results of the canvass of the internal revenue bureau, it appears that the income may yield more than $50,000,000. What Shall be Done. WASHINGTON, Jan. 27.-The president and Secretary Carlisle passed several hours together at the White House this afternoon. Mr Carlisle brought with him nancial data bearing on the depleted treasury gold reserve, and with this as a basis the president began the preparation of a message to congress. It is understood that it will treat principally of the continued drain of the gold reserve and remedies for stopping it The message will, it is said, be short and vigorous, and be delivered tomorrow. The Big Strike. BROOKLYN, Jan. 27.-Were it not for the scarcity of cars today one would not have known that one of the biggest strikes in the history of Brooklyn was in progress. Church members had to walk to church in many instances or take chances in the enormous crowds which took possession of the cars. Otherwise there was a perfect calm. Large crowds assembled around the depots, military guards are stationed, but there was no violence there. War Coming CITY OF MEXICO, Jan. 27.-The situation is unchanged today. Both Mexico and Guatemala are going on with their war preparations, and prominent Mexicansthink the outlook is very gloomy for peace, unless Guatemala recedes from the bold stand she has taken. If MexiCO is pushed into the fight over the international boundary, her policy will be as outlined by President Diaz and his cabinet, that this dispute and other little matters will be settled at once and forever, and the necessary means used to that end. Very Cold. ST. PAUL, Minn., Jan. 27.-This was the coldest day of the winter here. At 7 o'clock this morning the thermometer registered 26 degrees below zero. It was excessively cold all day, and at 7 o'clock this evening the mercury was still 10 degress below. The cold wave extends from St. Paul to the Rockies, the register at Helena at 8 o'clock tonight being 10 below. Snow in Texas. DALLAS, Tex., Jan. 27.-Specials from all parts of Texas report a general snow


Article from Essex County Herald, February 1, 1895

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Banks in Trouble. A despatch from State Bank Examiner Backus at Binghampton, New York was received at the state' banking department at Albany, stating: "Have closed Shenango Valley Savings Bank; defalcation by Treasurer Morgan; the cause and full extent not known. Books in bad condition, not written or posted; defalcation confessed. Broome county National Bank, in same rooms has suspended. Morgan is cashier. Burglary of vault attempted about 3 a. m. by Cashier Morgan and Pres. Brownson of the national bank; prevented by detectives whom I had engaged."


Article from San Antonio Daily Light, February 13, 1895

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Made An Assignment. BINGHAMPTON, N. Y., Feb. 13.Last night David Bronson made an assignment to Judge Robertson. Bronson keeps a grocery store and is also president of the Broome county National bank and of the Chenango Valley Savings bank. Besides the employes of the store who have wages due them, the only preferred creditor is Receiver O. V. Kellogg, of the Broome County National bank, the amount named being $4,000. Bronson is the sonin-law of Tracey Morgan, the cashier of both banks, who has been charged with heavy shortages in his accounts.


Article from Evening Star, March 15, 1895

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A Failed Bank's First Dividend. Mr. Eckels, the controller of the currency, said today that checks were yesterday sent to the receiver of the Broome County National Bank at Binghamton, N. Y., with which to pay a first dividend of 2 per cent to the creditors of the failed bank. Mr. Eckels is now convinced that the bank will pay anywhere from 50 to 75_ per cent and possibly as high as 90 per cent. The amount above 50 or 60 per cent will depend largely upon whether the national bank is eventually held to be liable for certain savings bank deposits.


Article from The Sun, September 12, 1897

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THE WHATE PASS BOOK CASE. Important Sult Growing Out of the Closing of Two Binghamion Banks in 1895. BINGHAMTON, Sept. 11.-The famous white pass book" case came up for trial at a special term of the Supreme Court in this city Friday before Judge Mattice of Oneonta. The amount involves $125,000, and there are about 140 pass books. About forty different law firms are engaged in the case. This suit arose out of the sensational closing of the National Broome County Bank and the Chenango Valley Savings Bank about Jan. 20, 1895, by the bank department. Ex-Mayor Tracy R. Morgan was Cashier of the National Broome County Bank and Treasurer of the Chenango Valley Savings Bank. Orris U. Kellogg of Cortland, N. Y., receiver of the National Broome County Bank, brings the action to determine whether the bank represented by him or the Chenango Valley Savings Bank should pay the amount of these white pass books. The Chenango Valley Savings Bank and the holders of the white pass books are made defendants in this action, and the relief demanded in the complaint is, which bank is liable under these books. Over ten years previous to the closing of these banks Mr. Morgan had been receiving deposits and issuing to depositors these white pass books in the name of the National Broome County Bank. No record, however, of any of these deposits appears on any of the books of the National Broome County Bank, neither does a record appear on any of the books of the Chenango Valley Savings Bank. The two banks do business in the same room in the Phelps Bank building. and Mr. Morgan had general supervision of both of them. It is contended on the part of Mr. Kellogg. the receiver of the National Broome County Bank. that all of themoney represented by these books was paid in through the window of the savings bank, and therefore that bank should be liable, although the books are issued in the name of the National Broome County Bank. On the part of the savings bank it is contended that it never, in fact, received the money, and the books being issued in the name of the National Broome County Bank by Mr. Morgan, who was the Cashier, the savings Lank 18 not liable. Soon after the closing of these two banks, in the vault used by both was found an individual ledger containing a full record of the deposits and payments made by Mr. Morgan concerning the white pass books, but there was nothing in the ledger to indicate which bank it belonged to. What has become of the $125,000 represented by these pa 8 book is a mystery, and is one of the sensational questions involved in the closing of these banks, which resulted in the finding of a number of indictments against Mr. Morgan. The Court will be required to take evidence as to Mr. Morgan's transactions with each individual depositor. and from that evidence will determine to which bank he will charge the amount represented by each pass book. No doubt at least two weeks will be consumed in the trial of the case.


Article from New-York Tribune, October 28, 1904

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EX-MAYOR TRACY R. MORGAN. Binghamton, N. Y., Oct. 27.-Tracy R. Morgan, a former Mayor of Binghamton. died at his home in this city to-day at the age of 86 years. Mr. Morgan was cashier of the Broome County National Bank and treasurer of the Chenango Valley Savings Bank, the wrecking of which institutions precipitated the bank panie of 1894 in this city. Mr. Morgan had been under indictment since the collapse of these banks, but owing to his age and physical infirmity, the case was never brought to trial.


Article from Americus Times-Recorder, October 30, 1904

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Indicted Banker Dies. Binghamton, N. Y., Oct. 29.-Tracy R. Morgan, a former mayor of Bing. hamton, died at his home in this city; aged 86 years. Mr. Morgan was the cashier of the Broome County National bank, and treasurer of the Chenango Valley Savings bank, the wrecking of which institutions precipitated the bank panic of 1894 in this city. Mr. Morgan had been under indictment since the collapse of these banks, but owing to his great age and physical infirmity, the case was never brought to trial.