Somerset County Bank (Somerville, NJ)

Episode Information

Episode UID
1907780291123
Episode Type
Suspension β†’ Closure
Bank Type
trust
Bank ID
190778029 hash
Start Date
July 8, 1893
Location
Somerville, New Jersey (40.574, -74.610)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
943d684b86e78c67

Response Measures

None

Description

Closure initiated by Banking Commissioner/Chancellor due to large holdings of Pidcock paper; limited withdrawals occurred but no organized run.

Events (2)
1. July 8, 1893 Suspension
Cause
Government Action
Cause Details
State Banking Commissioner (Duryea) applied to Chancellor for rule to show cause to appoint a receiver because the bank held large amounts of J. N. Pidcock's questionable paper.
Newspaper Excerpt
In compliance with Chancellor McGill's order, the Somerset County Bank did not open its doors this morning.
Source
newspapers
2. * Receivership
Newspaper Excerpt
W. Y. Johnson, who was appointed receiver of the Somerset County bank, has just made his report to the chancellor. In it he says that he is prepared to declare a dividend of 50 per cent. to the depositors as soon as he is ordered by the court to do so.
Source
newspapers

Newspaper Articles (16)
1. July 7, 1893 The Jersey City News Jersey City, NJ
Article from The Jersey City News, July 7, 1893

Click image to open full size in new tab

Article Text

PIDCOCK'S DISASTER Somerset Co. Bank Closed on Complaint of Commissioner Duryea. THE "OLD MAN'S" PAPER THE CAUSE Over $85,000 With the ExCongressman as Maker or Endorser. The Supreme Court Clerk Denies That Confessed Judgments of $65. 000 Have Been Filed. special to The Jersey City News. TRENTON. July 7. 1893 I ''n' Attorney General, for State Bank Commissioner George S. Duryea. asked the Supreme Court today for a rule to show cause why a receiver should not be appointed for the Somerset County Bauk, R State bank deing business at Somerville and said to be embarrassed because it has $55,000 of paper with ex-Congressman Janelson Pidcock as either maker or endorser. The bill filed states that the assets are believed to be unsafe because of the mortgages whic h Mr. Pidcock has placed \on his pro perty. The rule to show cause is returnable next Wednesday, and until the rule is disposed of. the bank will have to close its doors. The order of the court WAS served on the bank this afternoon. The Clerk of the Supreme Court denies tent confessed judgments to the amount of $63,000 have been filed in the Supreme Court, made to Alvah A. Clark by J. Nelson Pidcock.

2. July 8, 1893 The Jersey City News Jersey City, NJ
Article from The Jersey City News, July 8, 1893

Click image to open full size in new tab

Article Text

THE BANK'S DOORS CLOSED. A Few Depositors Withdrew Their Money But No Run. Special to The Jersey City News. SOMERVILLE, July 8, 1893-In compliance with Chancellor McGill's order, the Somerset County Bank dil not open its doors this morning. When it became known here yesterday that the bank would be closed pending argument on a motion to appoint a receiver, there was considerable excitement and a few depositors withdrew their money. There was nothing like a run upon the bank, as the facts did not become generally known until after banking hours. Assistant Attorney General Johnson, and Thomas Johnson, head clerk of the Commissioner of Banking, CHIME here yesterday afternoon and had an interview with the bank officials. Alvah A. Clark, counsel for the bank, said the institution would be able to pay all its depositors in full. He thought It might be able to pay some of the stockholders, but could not tell. He added that the bank had never been as prosperons as in the last six months. Only last week it declared a dividend of 3 per cent., but it is said here that in addition to Pidcock's paper it holds paper of other directors to the amount of $37,000 largely secured. A reporter saw Mr. Pidcock himself in Mr. Clark's office. He appeared to be worried somewhat over his financial troubles, but refused to say anything. and referred the reporter to his counsel, Mr. Clark. The latter said his client's Hfairs were not in as bad condition as was currently believed. Unless Mr. Pidcock was pressed too hard ne would be able to pull through.

3. July 8, 1893 The Sun New York, NY
Article from The Sun, July 8, 1893

Click image to open full size in new tab

Article Text

A JERSEY BANK IN TROUBLE. A Large Amount of J. N. Pidcock's Paper Held by the Someraet County Bank. SOMERVILLE. July 7.-Owing to the financial troubles of J. Nelson Pidcock. who is a large stockholder and director in the Somerset County Bank. that institution will close its doors to-morrow morning. The Commissioners of banking. upon receiving a statement of the bank officials to-day. applied to the Chancellor for a rule to show cause why a receiver should not be appointed. The ground upon which the rule was asked was that the bank held a good deal of Pidcock's paper. and it was of such an uncertain character that it would be best to have the bank go into the hands of a receiver. The Chancellor granted the rule. and it is returnable next Wednesday. Assistant Attorney-General William Johnson and Thomas Johnson. head clerk of the Commissioner of the Banking Department. came to Somerville this afternoon and had an interview with the bank officials. Alvah A. Clark. the counsel for the bank. said to-night that the institution would be able to Day back all its deposits. am unting to $140,000. He thought they might be able to pay something on the stock. but he could not tell how that would be. He said the bank would not open its doors to-morrow morni g. It is a State bank. and it has been Inancially weak for several years. Messrs. Clark and Pidcock and their friends ought up a large part of the stock about two years ago and ousted some of the old directors. They have been doing all in their power to make it a success. Mr. Clark said to-night that the bank had never been so prosperous as it had in the past six months. Its actual profits were $1,800 in excess of what they had ever been in the same length of time before. Its assets. too. were in better shape Onls last week the Board of Directors declared a dividend of three per cent.. though against the advice of their counsel. It is said by outside persons here. who profess to know. that the bank holds paper of Mr. Pidcock to the extent of $88,000. From the same source comes the information that the bank holds paper of the members of the Board of DIrectors alone to the extent of $137,000. but this is largely secured. This. it is said. is what caused the Banking Commissioner to act. Calvin Corte. a well-to-do farmer of Neshanio is President of the bank. and A. Dayton is the cashier. There is only one other bank in 8omerville. and that is the First National Bank. which ia a very prosperous institution.

4. July 8, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 8, 1893

Click image to open full size in new tab

Article Text

EMBARRASSMENTS OF THE PIDCOCKS. NO ASSIGNMENT BY THE EX-CONGRESSMANFAILURE OF THE SOMERSET COUNTY BANK. The failure of the concerns controlled by J. N. Pidcock, jr., is alleged to mean that his father, the ex-Congressman, is in financial difficulties. It has been understood that J. N. Pidcock, sr., was, financially and otherwise, the real head of the concerns now in trouble. Alvah Clark, Mr. Pidcock's relative, continues to assert that J. N. Pidcock, sr., has not assigned. However, a number of deeds and mortgages have been recorded, and It is asserted that Mr. Pidcock now owns nothing to assign. It is said in Jersey City that the debts of the Pidcocks there are about $50,000. Judson & Buckingham, of the Central Stock Yard, and Wilkinson & Sherman each hold about $15,000 of the Pidcock paper. Other stock yards in Jersey City are reported to hold $10,000 more. Somerville, N. J., July 7.-The Somerset County Bank, of Somerville, will close its doors to-morrow morning. Alvah A. Clark, counsel for the bank, said to-night that the bank was ruined even if it did open its doors after next Wednesday, which is the return day of the rule granted by Chancellor McGill to-day at Trenton. He also said that the deposits, amounting to $140,000 would be paid in full. Mr. Clark also spoke for Mr. Pidcock and said he would pull through unless he was too hard pressed. Pidcock has filed large mortgages to secure his credit tors. The people in the town are in a state of great excitement.

5. July 8, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 8, 1893

Click image to open full size in new tab

Article Text

INVOLVED IN PIDCOCK'S EMBARRASSMENT. Trenton, N. J., July 7.-Chancellor McGill this morning granted a rule to show cause why a receiver should not be appointed for the Somerset County Bank, a State bank at Sometville. The application was made by Attorney-General Stockton in behalf of Banking Commissioner Duryee, and the rule is returnable on Wednesday. Deputy Commissioner Johnston went to Somerville this afternoon and took charge of the bank's affairs. The back's embarrassment is due to that of ex-Congressman Pidcock, whose paper the bank carries to the extent of about $90,000. The capital stock of the institution is $100,000: the surplus is $15,000, and the deposits are about $250,000.

6. July 9, 1893 New-York Tribune New York, NY
Article from New-York Tribune, July 9, 1893

Click image to open full size in new tab

Article Text

CRIPPLED BANKS AND FIRMS BUSINESS TROUBLES REPORTED FROM VARIOUS PARTS OF THE COUNTRY Wennecome, WIs., July 8.-The Citizens' Bank closed Its doors at noon yesterday. Cashier Varwacter was arrested OII the charge of receiving deposits after he knew the bank to be insolvent. He says that the bank can pay in full. Le Sueur, Minn.. July -The Bank of Le Sneur made an assignment to-day. There was no run on the bank and the reason given is that the bank was closed to protect home depositors. The liabilities are $225,000 and assets about the same. Rapids, Mich. July 8.-The Northern National Big of Bank closed its doors this morning. Withdrawal funds by depositors caused the suspension. Lambertville, N. J., July 8.-At the time of exCongressman J. N. Pidcock's failure the Hunterdon County National Bank of Flemington was carrying his notes to the amount of about $30,000. The teller of the bank said this morning that the full amount was not yet known, but would undoubtedly reach the figures named above. The bank is fully able to meet this loss. Cleveland, July 8.-The firm of Corrigan, Ives & Co. was placed in the receiver's hands yesterday on petition by Judge Stevenson Burke, who charges that the active partners have contracted debts to the extent of $100,000 without the consent of all, contrary to the articles of agreement. The firm is sales agent for twenty-four mines, among them the Pewable, Eureka. Dunn, Cambria, Iron Belt, Mansfield and Buffalo. James Corrigan, the senior partner, says that no difficulty will be experienced In meeting all obligations. Boston. July 8.-Francis F. Morton, dealer in lumber. has assigned. The liabilities will not exceed $75,000 and the assets are sufficient to insure the creditors a good dividend. The cause was the stringency of the money market. Tower, Wing & Co., shoddy manufacturers, who recently assigned owing $95,000, have gone into insolvency. William S. Richardson, leather, has gone into insolvency. He owes $75,000 and offers 35 per cent, payable in thirty days. Chicago, July 8.-A receiver for the Produce Cold storage Exchange was applied for to-day. Semerville, N. J.. July 8.-Excitement can high in this town this morning over the announcement of the failure of the Somerset County Bank. Notice was posted on the door stating that no business would be transacted except to receive payments for paper due. There was a FILL on the bank. and at 10 a. m. a large crowd of depositors elamored for admission and excitedly inquired about their money. Finding that they could get no satisfaction they went away. Several of the largest depositors drew out their money in time to save themselves. The general feeling here is that the worst has not been disclosed as to the condition of the bank.

7. July 12, 1893 The Lambertville Record Lambertville, NJ
Article from The Lambertville Record, July 12, 1893

Click image to open full size in new tab

Article Text

Pidcock's Embarassment Gets the Somerset County Bank into Chancery. The Attorney General, for State Bank Commissioner George S. Duryea, asked the Cbancellor last Friday for a rule to show cause why a receiver should not be appointed for the Somerset County Bank, a State Bank doing business at Somerville and said to be embarassed because it has $85,000 of paper with ex Congressman Nelson Pidcock as either maker or endorser. The bill filed states that the assets are believed to be unsafe because of the mortgages which Mr. Pidcock has placed on his property. The rule to show cause is returnable to day (Wednesday,) and until the rule is disposed of, the bank will have to close its doors. The order of the court was served on the bank Friday afternoon. The Clerk of the Supreme Court denies that confessed judgments to the amount of $65,000 have been filed in the Supreme Court, made to Alvah A. Clark by J. Nelson Pidcock. The statements which the bank has made from timeto time of its sound condi tion have caused the Commissioner to watch the bank closely, and when it was learned that it held a large amount of "Nelse" Pidcock's notes without any valuable collateral, it was decided to apply for a receiver. The bill filed in the case is voluminous and covers many pages of closely written type. It sets forth that the directors are William Keys, William A. Murtry, George S. Van Arsdale, Calvin Corle, James P. Major, John Frelinghuysen, James N. Pidcock, Alvah A. Clark and Alexander G. Anderson. All these are makers and endorses of paper held by the bank in sums ranging from $300 to $68,000. Pidcock's paper represents the largest sum $68,000, and Alexander G. Anderson is next with about $27,000; then come Alvah Clark with $17,000, and Calvin Corle, the President of the bank, with about $16,000. Most of the pa. per endorsed by Pidcock was made by the Quitman Lumber Company, the Rockaway Railroad Company and the White House Manufacturing Company. The greater part of the paper which is chargeed Mr. Clark has Mr. Pidcock's name upon it, and is included in the amount for which Mr. Anderson is liable.

8. August 31, 1893 The Wilmington Daily Republican Wilmington, DE
Article from The Wilmington Daily Republican, August 31, 1893

Click image to open full size in new tab

Article Text

Fifty Per Cent. for Depositors. SOMERVILLE, N. J., Aug. 31.-W. Y. Johnson, who was appointed receiver of the Somerset County bank, has just made his report to the chancellor. In it he says that he is prepared to declare a dividend of 50 per cent. to the depositors as soon as he is ordered by the court to do so.

9. August 31, 1893 The Evening Herald Shenandoah, PA
Article from The Evening Herald, August 31, 1893

Click image to open full size in new tab

Article Text

Philadelphia Traction Employes Strike. PHILADELPHIA, Aug. 31.-Two hundred workmen in the cable power houses of the Philadelphia Traction company quit work last night because of a 10 per cent. reduction in their wages. The officials say they can secure men to take the strikers' places, but the latter declare that green hands cannot do the work. Fifty Per Cent. for Depositors. SOMERVILLE, N. J., Aug. 31.-W. Y. Johnson, who was appointed receiver of the Somerset County bank, has just made his report to the chancellor. In it he says that he is prepared to declare a dividend of 50 per cent. to the depositors as soon as he is ordered by the court to do so.

10. August 31, 1893 The Sun New York, NY
Article from The Sun, August 31, 1893

Click image to open full size in new tab

Article Text

The Somerset County Bank's Affairs, SOMERVILLE. N.J., Aug. 30.-Willam Y. Johnson, receiver of the Somerset County Bank, has prepared his first report to the Chancellor. In it he states that he is ready to declare a dividend of 50 per cent. to depositors as soon as the Court issues an order to that effect. Since taking possession of the bank's property Mr. Johnson has collected $56,674.59, which together with the cash on hand at the time the bank failed. makes the amount at hand on Aug. 26, $78,212,827. less disbursements of $572.31. The liabilities to date amount to $147,000.

11. September 1, 1893 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, September 1, 1893

Click image to open full size in new tab

Article Text

Fifty Per Cent. for Depositors. SOMERVILLE, N. J., Aug. 31.-W. Y. Johnson, who was appointed receiver of the Somerset County bank, has just made his report to the chancellor. In it he says that he is prepared to declare a dividend of 50 per cent. to the depositors as soon as he is ordered by the conrt to do so.

12. December 17, 1894 New-York Tribune New York, NY
Article from New-York Tribune, December 17, 1894

Click image to open full size in new tab

Article Text

WILL SUE THE BANK'S DIRECTORS. Somerville, N. J., Dec. 16. The stockholders of the Somerset County Bank, which is now in the hands of a receiver, held a meeting yesterday and voted to bring suit against the directors of the bank who served in 1892 and 1893. The suit will be an endeavor to recover $33,000. R. V. Lindabury, counsel for the stockholders, advised this step, holding that the directors were responsible to that extent for the losses sustained through alleged loose management. The directors against whom the suits are to be aimed include ex-Congressman Pidcock, ex-Congressman Alvah Clark, ex-Senator W. J. Keys and other prominent men of this section.

13. July 26, 1895 The Evening Herald Shenandoah, PA
Article from The Evening Herald, July 26, 1895

Click image to open full size in new tab

Article Text

Bank Directors Sued. PLAINFIELD, N. J., July 26.-Sheriff George A. Dilts served twenty of the most prominent men of the county with subpΕ“naes. All the men served were members of the board of directors of the defunct Somerset County bank, of Som'erville, and the suit in chancery is the result. The suit is brought by Receiver Johnson for the benefit of the stockholders to recover moneys which the bill charges were lost by the illegal and fraudulent conduct of the directors. The bill charges also that the directors discounted notes of irresponsible parties in sums footing up to $50,000.

14. July 26, 1895 The Wilmington Daily Republican Wilmington, DE
Article from The Wilmington Daily Republican, July 26, 1895

Click image to open full size in new tab

Article Text

Bank Directors Sued. PLAINFIELD, N. J., July 26.-Sheriff George A. Dilts served twenty of the most prominent men of the county with subpoenaes. All the men served were members of the board of directors of the dofunct Somerset County bank, of Somerville, and the suit in chancery is the result. The suit is brought by Receiver Johnson for the benefit of the stockholders to recover moneys which the bill charges were lost by the illΓ©gal and fraudulent conduct of the directors. The bill charges also that the directors discounted notes of irresponsible parties in sums footing up to $50,000.

15. August 19, 1895 The Jersey City News Jersey City, NJ
Article from The Jersey City News, August 19, 1895

Click image to open full size in new tab

Article Text

IN CHANCERY OF NEW JERSEY. Between William Y. Johnson, Receiver of the President, &c., of the Somerset County Bank at Somerville, Complainant, and James N. Pidcock, et als., defendants. On bill, &c. On petition of the First National Bank of Jersey City. Notice of sale. By virtue of the orders made in the above entitled cause by the Chancellor, on December 10th, 1894, and July 20th. 1895. I. Linsly Rowe. one of the Masters of the Court of Chancery of New Jersey, shall expose to sale at public vendue on Tuesday. the twentieth day of August. 1895, at 2 o'clock P. M., at the real estate salesroom. No. 55 Montgomery street, Jersey City. N. J., all the securities mentioned in the above stated petition, and not heretofore sold, held by the First National Bank of Jersey City as collateral to the debt of James N, Pideock. Dated August 12th. 1895. LINSLY ROWE, Master in Chancery of N. J. Catalogues of the above securities can be procured at the office of the Master, No. 259 Washington street, Jersey City, or at the salesroom.

16. December 23, 1895 The Jersey City News Jersey City, NJ
Article from The Jersey City News, December 23, 1895

Click image to open full size in new tab

Article Text

RECEIVER FOR A BANK. Mr. George H. Vanderveer of Somerville was this morning appointed permanent receiver of the Somerset County Bank and his bonds were fixed at $30,000. All the creditors of the insolvent institution have been paid off excepting the stockholders, and in a few days the final dividend to them will be paid aggregating about 421/2 per cent. The receiver expects to wind up the affairs in a few days. His fee allowed this morning was $500.