15764. Eastern Trust Company (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
July 6, 1904
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
57d5f71f

Response Measures

None

Description

Articles (dated July 7, 1904) report the Eastern Trust Company will be voluntarily dissolved (announcement dated July 6, 1904). This is a voluntary liquidation to avoid receivership; no run is reported and the company will permanently cease operations and distribute surplus to stockholders.

Events (1)
1. July 6, 1904 Suspension
Cause
Voluntary Liquidation
Cause Details
Management announced a voluntary dissolution/liquidation to distribute surplus to stockholders and to avoid the customary receivership; all debts to be paid in full on presentation.
Newspaper Excerpt
The Eastern Trust Co., which was formed here two years ago, will be voluntarily dissolved according to a statement issued, today. ... Every obligation of the company will be paid in full upon presentation, the surplus of over $900,000 will be distributed shortly thereafter among the stockholders, and the capital ($1,000,000) will likewise be distributed upon the conclusion of the legal requirements.
Source
newspapers

Newspaper Articles (2)
1. July 7, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 7, 1904

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Article Text

VOLUNTARILY DISSOLVED. Eastern Trust Co. at New York Will Suspend. New York, July G.-The Eastern Trust Co., which was formed here two years ago, will be voluntarily dissolved according to a statement issued, today. by William Nelson Cromwell, counsel for the institution. Every obligation of the company will be paid in full upon presentation, the surplus of over $900,000 will be distributed shortly thereafter among the stockholders, and the capital ($1,000,000) will likewise be distributed upon the conclusion of the legal requirements. It is designed to avoid the customary receivership in liquidation, a plan oufficially approved by Supt. of Banks Kilburn. Mr. Cromwell says that after paying its debts the Trust Co. will return to its stockholders over 190 per cent. upon their holdings.

2. July 7, 1904 New-York Tribune New York, NY
Article from New-York Tribune, July 7, 1904

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Article Text

COMPANY TO DISSOLVE. Announcement Regarding Eastern Trust-Action Voluntary. The Eastern Trust Company, it was announced last evening by William Nelson Cromwell, counsel for the institution, will be dissolved voluntarily. All its debts will be paid in full when presented. The surplus of more than $900,000 will be distributed among the stockholders after the debts are settled, and when the legal formalities are finished the capital of $1,000,000 will also be distributed. This method of ending the trust company was decided on to avoid the customary receivership in liquidation, a plan officially approved by the State Superintendent of Banks. Mr. Cromwell says that after all the debts are paid the company will return to the stockholders more than 190 per cent on their holdings. The Eastern Trust Company began business in July, 1902. Charles M. Jesup was the president, H. A. Ware the vice-president, George B. Seeley the secretary, and J. Wesley Allison the treasurer. In April of last year the Van Norden Trust Company tried to buy the Eastern Trust Company to use as a downtown branch. One or two of the directors of the downtown concern were in favor of selling it to the Van Norden Trust Company, but the majority of the directors voted against it. At the last annual meeting, January 20, there was a contest between the recognized management and a party which wanted to put the institution in liquidation. The opposition urged that as the statement of January, 1904, showed a profit of $22,000, which was only $1,000 more than that shown in the statement of January, 1903, it would be well to stop business and let the stockholders have their money. Proxies were sent out in the names of W. G. Park, A. A. Lisman and Charles Kimberley, who were leaders in the liquidation scheme.