Washington National Bank (New York, NY)

View Charter #4335 on SPMC View balance sheet

Episode Information

Episode UID
433501095
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
43350 national
Charter Number
4335
Start Date
March 23, 1891
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d2dacadf74a556a0

Response Measures

None

Description

Suspension followed discovery of impaired capital from insider loans; directors later opted for voluntary liquidation rather than reorganization.

Events (4)
1. June 5, 1890 Chartered
Source
historical_nic
2. March 23, 1891 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Capital found impaired after large loans to friends of the president secured by poor 'cat-and-dog' collateral; Gallatin National refused to clear, prompting examiner involvement.
Newspaper Excerpt
The Washington National bank will not open its doors tomorrow...the suspension is due...to the undue latitude accorded friends of President Sherman in the way of loans.
Source
newspapers
3. April 13, 1891 Other
Newspaper Excerpt
At a meeting of the directors and stockholders of the Washington National bank held here today it was decided that the bank should go into voluntary liquidation.
Source
newspapers
4. April 13, 1891 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (22)
1. March 24, 1891 The Morning News Savannah, GA
Article from The Morning News, March 24, 1891

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A BANK'S EYE BLACKED. The Washington National of New York Won't Open To-day. NEW YORK, March -The - Washington National bank will not open its doors tomorrow. The suspension is due, for the greater part, it is said, to the undue latitude accorded friends of President Sherman in the way of loans. A large-amount of securities deposited for these loans have been of the "cat and dog class." Depositors, it 18 said, will not suffer materially by the suspension, which was precipitated by the refusal of the Gallatin National bank to clear for the Washington National upon a (discovery that the capital of the latter bank is impaired. The bank began business last June with a paid up capital of $300,000. The net deposits are only about $600,000. The bank will be placed in the hands of the national bank examiner. The amount of the impairment of its capital is rather indefinite, but it is estimated at about $60,000.

2. March 24, 1891 Telegram-Herald Grand Rapids, MI
Article from Telegram-Herald, March 24, 1891

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CAPITAL IMPAIRED. The Washington National Bank of New York Forced to Suspend, NEW YORK, March 23.-The Washington National Bank, at No. 1 Broadway, closed its doors at 3 o'clock this afternoon, as it had been discovered that its capital had been impaired. The bank examiner will take charge tomorrow, and the bank's affairs probably will be wound up.

3. March 24, 1891 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, March 24, 1891

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WASHINGTON BANK OF NEW YORK. Wrecked by Favors Accorded Friends of Senator Sherman. [By telegraph to the Dispatch.] NEW YORK, March 23.-The Washington National Bank will not open its doors tomorrow. The suspension is due, for the greater part, it is said, to the undue latitude accorded friends of President Sherman in the way of loans. A large amount of the securities deposited for these loans have been of the "cat-and-dog class." The depositors, it is said, will not suffer materially by the suspension, which was precipitated by a refusal of the Gallatin National Bank to clear for the Washington National upon discovery that the capital of the latter bank is impaired. The bank began business last June with a paid-up capital of $300,000. The net deposits are only about $600,000. The bank will be placed in the hands of National-Bank-Examiner Hepburn. The amount of impairment of the capital is rather indefinite, but is estimated at about $60,000.

4. March 24, 1891 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, March 24, 1891

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NEWS BY TELEGRAPH. From All Quarters. ANOTHER BANK FAILURE The Washington National at New York Closed. MAJOR M'KINLEY ON THE TARIFF. Timothy Healey Assaulted By a Mob. AN EPIDEMIC OF GRIP IN NEW YORK. Three Men Killed By an Explosion. ITS DOORS CLOSED. National Washington Failure of New the York-Its Liberality Capital Seri of Bank impaired by the ously Bank's President, YORK, 1 Broadway a the NEW March at No. The Washington owing closed to National bank this afternoon, The serious its doors impairment late of been its loaned capital. out by bank's resources two have friends or confederthe president of its discovery to condition is not was a ates and the made. The bank accidentally of the Clearing House member through the Gallatin associa- na- the tion, but clears a new rule of tional bank. house Under which went into in effect this Jan- way clearing the bank's clearings to examinauary 1, their accounts Bank must tion by submit the clearing house. representing To-day the clearExaminer Hepburn, appeared at the its Washington affairs. tional ing house, bank to examine that its announcement capital was na- He soon discovered soon as this was prosimpaired. As President Sherman to inform but recovered had been too liberal directors to his friends. that foot trated, the was made that he sufficiently Two ac- up in loaning have money been discovered probably total losses. and $121,000 counts that are secured by poor a is for collateral, and the which had on John Silva, "hung on for One worthless $50,000 $70,000, president and other prom- draft been a cashed by It is the said that good Silva to-morrow. had hook.' to make had this a capital draft of $300,000 and of of the his innotice that The posits ised The bank president $600,000. Gallatin national for the debank stitution bank has will bank. given no longer Director said: clear Tilghman "The of bank It will to-morrow. will not open of Bank I am I the charge Examiner Hep- be placed in most probably will wound be up. paid in burn and that depositors said that the depositive Cashier Granger to both himvelopments the were directors. a None was and idea that the transactions full." self surprise president of them and in- of had volved any in any irregular about the details were he could say nothing which the funds says: Tilghman, a in the bank's afwithdrawn the Sidell methods by director of the bank, ago. "The irregularities a week V A fairs were a cursory discovered examination about impairment Saturday was last in After found that the This H made good by I was to have been this morning it the was neighborhood but of $75,000. the the President impair- direc- sum tors to-day, informed them had been that discovered ment was larger aggregate about be. It was and it was thought business. to I decided Sherman than would discontinue than $60,000 June more with then deto began business last The net A paid-up The bank capital about of $300,000. $600,000, and depositors DirectTilgham full. President will or be paid confidence in of the posits a had the are full only declares that the directors. Sherman at his He has disappeared. was found President Sherman He said the first man loan home this collateral was His made on overdrawn his from less he who had evening. poor the bank account. to a opin- and object was to from save failure. He is be of paid. the man that this maney between will $73,000 ion was for loan was and This overdraft $75,000. almost The the second same conditions. made made under would also be and good. he believed The sum involved this who received was about who it repre- was $60,Bridgeport, 000 and the Conn., firm man of gentleman, that city here. He said Mr. sents Sherman a brass refused to give his in name. closing up the in full. bank the directors and that were the depositors hasty would be paid

5. March 25, 1891 Daily Tobacco Leaf-Chronicle Clarksville, TN
Article from Daily Tobacco Leaf-Chronicle, March 25, 1891

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bankusky bonds William for a new county, court O., house. will issue $150,000 ing derrick Wesseman at Fort Wayne, was killed Ind. by a fallLouis Breedlove, farmer, near Urbana, O., assigned to the tune of $13,000. Van Wert, O., wants better $135,000. vice, and will put in works at water a cost ser- of was William Maynard, of Columbus, daughter. arrested for outraging his year-old O., The state board of tax commissioners. of Hovey Indiana, is chairman has been organized. Governor Horses H. and cattle about have die.1. A number D are affected with old time Washington epizootic. was John k Holland, a deserter from the iled by a train Hamilton, O. navy, He tramping to avoid arrest Rev. Joab Harper, 74, and Mrs. single Honey, 49. of Jeffersonville, O., tired Mary of life, have joined i sucs The trial of Charle Coomts for murder of Walter McClure, began the at Crawfordsville, Ind., Monday. Charlie Golden, of Hamilton, his hunting received a big charge of shot while in thigh. May lose the limb. Engineer Farrow and Fireman Dickison the were dangerously injured by a wreck on Pan-Handle near Coshoeton. Now they say a servant girl in Perrien's The family was kidnapped during the holidays. police think they smell amice. Near New Vienna, O., Told Moore, aged 19, quarreled with his father, William Moore, him. and shot and instantly killed George Taylor and John Loew met in Aurora saloon and popped at an other. hurt. Aims were bad and away no one each was Point Jefferson, O., is now a option favor town The vote was 2 to local 1 fluid. of no more "red licker, " or amber in John Wilson and Henry Matthews, Laporte, Ind., were thrown into a of ables. car by three men and robbed of their cattle valuT.T. Dixon, of Akron, tried to kill wife. Truman Golden, a passer-by inter his band. fered, and was nearly killed by the hus The wreeking of his barbershop at Sher rodsville is said to be the cause of Calvin lumbus. Dunlap's insanity. He was taken to CoMexico, near Perv, Ind., had deaths from diphtheria recently. Nearly seven every family in the place has from one to seven cases. Judgments aggregating $19,000 were tered Monday at Philadelphia a gainst enproprietors of the Colonnade hotel, H. the &C.R. Crump. . F. Chauncey, stranger, who was injured in a runaway accident at Mansfield, O., died after remaining unconscions nearly one week. Mack & Company, of Albany, sent by express to Detroit two months ago a $ . 00 package of coupon bonds which has disap. peared on the way. A bill has been inroduced in the Ohio legislature to appropriate $2,500 for monument to Capt. Desmond, killed a during the Cincinnati riots, Abner Abbott. formerly of Parkersburg, W. Va., was found floating in a river Wyoming territory. He had a $3,000 in check peared. on his person before he disap The board of directors of the Cincionati held their last day, management of the workhouse the meeting institution Tuespassing missioners. into the control of the police com The viticultural commission of California has been awarded a gold melal and diploma by the Paris exposition the display of native brandies at the recent exposition. The capital of the shington National bank, of New York, has been so impaired through the presid nt loaning to irre sponsible friends that the bank examiner has taken charge of the affairs. In a house of prostitution on George street, Cincinnati, Louis Benzinah mortally wounded by "Kid" Dugan, was who then tried to kill May Riley, the proprietress, over whom the difficulty arose. Abner Hazelett, of Muncie, Ind.. turned home for supper and found his rewife, baby and furniture gone. The woman is said to have returned to her former vorced. husband, from whom she was diThe South Side market house in Pitis burg was burned at midnight Morday night. Loss 00,000; insurance Stewart, of the partment, Assistant Caief not known fire dewas injured about the head by falling walls. Miss Nora Gray, while crossing a creek near Ramsey, III., on the railroad bridge, was surprised Monday evening by the approach of a train. She jumped from the bridge, which is fifty feet high. but wee

6. March 25, 1891 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, March 25, 1891

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THE WASHINGTON BANK. A Pretty Snarl President Sherman Left Its Affairs In. NEW YORK, March 24.-Technically speaking the doors of the Washington National bank, whose failure was spread broadcast yesterday afternoon, were not closed as it was announced they would be, today. Conspicuously posted on the doors was the following notice: "At the request of the directors, I have taken possession of this bank, in the name of the comptroller of the currency, Edward S. Lacey, under whose direction its affairs will be liquidated. "A. B. HEPBURN, "National Bank Examiner." The clerks were at their accustomed desks in the bank, but no money was received or paid out. Notices were posted this afternoon that all checks drawn on the Washington National bank, by the Commercial National bank, of Fremont, Nebraska, would be paid by the First National bank of this city. United States Examiner Hepburn gave out a lengthy statement this afternoon, in which he said so far as his examination had extended, there will be an apparent loss to the bank, from various sources, of $143,000. This would still leave the stockholders entitled to a dividend of 50 per cent. He thinks the depositors will be paid in full. Among the instances of bad business done, he says the bank received out-of-town collections sent them, forwarded marked "no protest," instructing the corresponding bank to hold them subject to order. At the same time, they certified checks that had been deposited against these collections, and allowed such items to stand. "No one thing ails the bank," added Hepburn, "but everything. Inadequate security for loans; loans to parties of notorious impecuniosity, and an utter disregard for established banking principles characterized the management throughout." The comptroller of the currency will probably appoint a receiver.

7. March 25, 1891 The Record-Union Sacramento, CA
Article from The Record-Union, March 25, 1891

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WASHINGTON NATIONAL BANK. The Affairs of the Bank Carried on in a Loose Manner. NEW YORK, March 24. - Technically speaking, the doors of the Washington National Bank, whose failure was spread broadcast yesterday afternoon, were not closed, as it was announced they would be to-day. Conspienously posted on the doors was the following notice: "At the request of the directors, I have taken possession of the bank in the name of the Comptroller of the Currency, Edward Lacy, under whose direction its affairs will be liquidated. "A.B. HEPBURN, "National Bank Examiner." The clerks were all at their accustomed desks in the bank, but no money was received or paid out. It was said at 10 o'clock that there was nothing new to be made public at that hour. Tilgham Sidell, one of the directors, today said that the capital stock of the bank was $300,000 and it had been impaired to the extent of $130,000 by loans made by President Sherman. Sidell said he felt certain the depositors would be paid in full and that the only persons who would be losers were the stockholders. Notice was posted this afternoon that all checks drawn on the Washington National Bank by the Commercial National Bank of Fremont, Neb., would be paid by the First National Bank of this city. United States Examiner Hepburn gave out a lengthy statement this afternoon, in which he said that as far as his examination extended there will be an apparent loss to the bank from various sources of $143,000. This would still leave the stockholders entitled to a dividend of 50 per cent. He thinks the depositors will be paid in full. Among the instances of bad business done, he says the bank received out-of-town collections and sent them forward marked "no protest," instructing the corresponding bank to hold them subject to order. At the same time they certified checks that had been deposited against these collections and allowed such items to stand. "No one thing ails the bank," added Hepburn, "but everything-inadequate security for loans, loans to parties of notorious impecuniosity, and utter disregard for established banking principles characterized the management throughout." The Comptroller of the Currency will probably appoint a receiver.

8. March 26, 1891 The Londonderry Sifter South Londonderry, VT
Article from The Londonderry Sifter, March 26, 1891

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The Washington National Bank of New York has suspended. The president of the institution is charged with the wreckage-he lent the money to his friends, and said friend are unable to pay up.

9. March 26, 1891 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, March 26, 1891

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CRALITY LEADS TO shington National Bank k in the Hands of Receive YORK, March 23.-The cement was made tonight gton National bank at ay would not open its . The bank's resources ut by the president to two discovery of the condition made & ank is not a member of se association but clears atin National bank. the clearing house into effect January 1, in this way must counts to examination by use. Today Bank Fxamine presenting the clearing t the Washington bank affairs. He soon discover al was impaired; as cement was made Presiden no has been in charge of strated, but recovered the directors he had been ng money to his friends. ave been discovered foot ) that are probably total or $70,000 secured by a ss collateral, and the other 000 on John Silvia, which by the president and "hung It is said Silvia has his draft good tomorrow d a capital of $300,000 and 00,000. The only officers complete announcement ank examiner were cashier : and director Sidney Tilgh resident has gone away, where. The president of nk at once gave notice on would no longer clear gton bank. This news y attempt being made to es. tor Tilghman said: placed in charge of Bank pburn, and will most prob up. I am positive every baid in full." er Granger said the devolo surprise to both himself and None of them had any sident was involved in any sactions, and he could Say he details of the method by Is were withdrawn. tor Tilghman said he light irregularities about n investigation disclosed t of capital in the neighbor The officials of the Gallat were very friendly and to continue to nk if the impairment Tilghman was

10. March 27, 1891 The Big Stone Post Big Stone Gap, VA
Article from The Big Stone Post, March 27, 1891

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Bank Suspended. NEW YORK, March 25.-Washington National Bank did not open its doors yesterday. The suspension is due for the greater part, it is said, to undue latitude accorded the friends of president Sherman in way of loans. Large amounts of security deposits for these loans, have been of "cat and dog class." Depositors, it is said, will not suffer materially. The suspension was precepitated by refusal of Gallatin National Bank to clear for the Washington Bank upon the discovery that the latter bank is impaired. The bank began business last June with paid up capital of $300,000. The deposits are only about $600,000. The bank was placed in the hands of national bank Exa miner Hepurn, and the amount of impairment of capital rather indefinite, but about $60,000.

11. March 27, 1891 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, March 27, 1891

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THE intimation that the Washington National Bank of New York suspended because its President loaned a Mr. Silver money without security evokes the remark that too much silver is sometimes harmful.

12. March 28, 1891 The Ketchum Keystone Ketchum, ID
Article from The Ketchum Keystone, March 28, 1891

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SINCE last week two prominent National Banks have suspended. The first to go under was the Keystone of Philadelphia. Later, the Washington National Bank of New York went under. Its affairs are said to be bad. The Keystone bank will make an effort to resume.

13. March 28, 1891 Evening Star Washington, DC
Article from Evening Star, March 28, 1891

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THE WASHINGTON BANK TO BESUME.-Controller Lacey this morning received from Bank Examiner Hepburn his report on the Washington National Bank of New York. The report is very gratifying and will not call for the appointment of a receiver. In fact. it is understood that arrangements have been perfected by which the bank will resume business on Monday.

14. March 29, 1891 The Record-Union Sacramento, CA
Article from The Record-Union, March 29, 1891

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NATIONAL BANKS. The New Bank at Kansas City Ready for Business. WASHINGTON, March -The Comptrolier of Currency received a telegram to-day from the Examiner in charge of the American National Bank of Kansas City, Mo., saying that the entire amount of capital of the bank ($500,000) had been paid in, and the bank will open IOr business on Tuesday or Wednesday. The Examiner says: The bank has $1,700,000 in the vault, including $635,000 which had been taken from the bank by the Examiner, and which has just been restored by order of the Comptroller of Currency. Comptroller Lacey to-day received the official report of Examiner Hepburn in regard to the Washington National Bank of New York, but refused to disclose its contents. He has addressed a communication to Hepburn, suggesting that only two courses are open if receivership is to be avoided. In the first place, the Comptroller can levy an assessment of fifty per cent. upon the capital stock, which would reinforce the assets of the bank by $150,000 cash. This could be done, however, in case the directors and large stockholders would agree to advance for the shareholders not prepared for immediate payment. In case this amount is paid in the Comptroller wodld permit the bank to resume business, and the amounts due depositors and creditors would be immediately available. In case resumption is impracticable, the Comptroller suggests that $357,000, in addition to the immediate available assets already in hand, would enable the bank to pay the creditors promptly in full, whereupon they could vote to go into voluntary liquidation and close the affairs of the bank themselves. This might be raised upon a pledge of loans and discounts of the bank, supplemental, if necessary, by a personal guarantee of the larger stockholders. If one of these plans is not adopted, it will be his duty to appoint a receiver and close the bank up in the usual way.

15. March 29, 1891 The Helena Independent Helena, MT
Article from The Helena Independent, March 29, 1891

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The Treasury Department Thrown Into Consternation by a New Counterfeit. Bogus Two-Dollar Silver Certificates Issued That Almost Defy Detection. Affairs of Two National Banks Now in Charge of the Comptroller of the Currency. WASHINGTON, March 28.-A sensation has been caused at the treasury department by the discovery of a counterfeit two dollar silver certificate 60 nearly perfect as to be almost impossible of detection. The paper with silk threads through it is for the first time almost a perfect imitation in the counterfeit just discovered. So far as is now known it is only used in counterfeiting certificates of the series of 1886. It is estimated that there are now nearly 810,000,000 of these notes in circulation and the problem before the treasury department is how to get them back into the treasury and substitute a new series without embarrassment before any considerable quantity of the counterfeit notes gets into circulation. This was the subject of a secret confer nce at the treasury depart. ment this afternoon between Secretary Foster and leading officials of the bureau of engraving and printing. it was practically decided to suspend the printing of $2 silver certificates and institute a new series of the same denomination. These will contain a vignette of Secretary Windom and be issued as soon as the necessary plates can be engraved. It will take about two months to prepare the plates, and in the meantimo the government will exert it utmost endeavors to secure and destroy the plates and other paraphernalia used in the manufacture of the counterfeit. The comptroller of currency received A telegram to-day from the examiner in charge of the American National bank of Kansas City saying that the entire Amount of the capital of the bank, $500,000. had been paid in and the bank would be open for business Tuesday or Wednesday next. The examiner says the bank has $1,700,000 in the vault. including $635,000 which had been taken from the bank by the examiner and which has just been restored by order of the comptroller of currency. Comptroller Lacey to-day received the official report of Examiner Hepburn regarding the Washington National bank of New York, but refused to disclose its contents. He addressed a communication to Hepburn suggesting that only two courses are open if a receivership is to be avoided. In the first place, the comptroller can levy an assessment of 50 per cent upon the capital stock, which would re-inforce the assets of the bank by $150,000 cash. This could be done, however, only in case the directors and larger stockholders would agree to advance for the shareholders not prepared for immediate payment. In case this amount is paid in the comptroller would permit the bank to resume business and the amounts due the depositors and creditors would be immediately available. In case resumption is impracticable the comptroller suggests that $357,000 in addition to the immediate available assets already in hand would enable the bank to pay creditors promptly in full, whereupon they could vote to go into voluntary liquidation and close the affairs of the bank themselves. This might be raised upon the pledge of loans and discounts of the bank sxpplemented, if necessary, by the personal guarantee of the larger shareholders. If one of these plans is not adopted it will be his duty to appoint a receiver and close the bank up in the usual way.

16. March 29, 1891 New-York Tribune New York, NY
Article from New-York Tribune, March 29, 1891

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AFFAIRS OF THE WASHINGTON NATIONAL. REPLY OF THE CONTROLLER OF THE CURRENCY TO BANK EXAMINER HEPBURN. Washington, March 28.-Mr. Lacey, Controller of the Currency. to-day received the official report of National Bank Examiner Hepburn in regard to the Washington National Bank of New-York, recently closed: but he refused to disclose the contents of the report. He has, however, addressed a communication to Mr. Hepburn, suggesting that only two courses are open If a receivership is to be avoided. In $50 dest place. the Controller can levy an assessment of 50 per cent upon the capital stock, which would reinforce the assets of the bank by $150,000 cash. This can be done, however, only in case the directors and larger stockholders agree to advance money for shareholders not prepared for immediate payment. so that the whole amount may be paid in without delay. those advancing the sums awaiting reimbursement until all the shareholders shall have paid their assessments. In case this amount were paid in, the Controller says, he would permit the bank to resume business, and the amounts due depositors and creditors would be immediately available. He says this course is preferred, for the reason that the assets would be worth from 10 to 20 per cent more if the bank should resume than If it is closed by receivership or liquidation. In case resumption is found impracticable, the Controller suggests that $357,000 in addition to the immediately available assets already in hand would enable the bank to pay its creditors promptly in full. whereupon they could vote to go into voluntary liquidation and close the affairs of the bank themselves. This $357,000, the Controller suggests, might be raised upon pledge of the loans and discounts of the bank. supplemented, if necessary. by the personal guarantee of the larger shareholders. The second plan, the Controller says, would be much more expeditions, and somewhat more economical than a POceivership. He adds that he hopes that one or the other of these plans may be adopted. otherwise it will be his duty to appoint a receiver and close the bank up the usual way. The bank's stockholders will meet to-morrow and discuss the situation. It was rumored in connection with this that the directors would consult on Monday with United States District-Attorney Mitchell in order to ascertain what his opinion was as to the nature of the transactions which John S. Silver has had with the bank to see whether they were criminal. Mr. Silver still keeps away from the reporters, and in the meantime bits of history of his connection with the ill-fated American Loan and Trust Company keep coming to the surface, and yesterday a pretty full chapter was completed. When Rowland N. Hazard was president of the American Loan and Trust Company Mr. Silver was a borrower to the extent of $175,000, which has not been paid up according to the best information obtainable. When the Decatur, Chese peake and New-Orleans Railroad was trying to build. and the Decatur and Nashville Construction Company was trying to help build the road. they together borrowed about $360,000 from the trust company. Mr. Silver was instrumental in obtaining a part of this money for the railroad and construction company. The trust company is still hanging on to some of the collateral of the unfinished railroad. of which Mr. Silver was president when the loans were effected.

17. March 29, 1891 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, March 29, 1891

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WASHINGTON BANK AFFAIRS. Two Plans by Which a Receivership Can Now Be Avoided. W ASHINGTON, March 28.-Mr. Lacey, Controller of the Currency, to-day received the official report of National Bank Examiner Hepburn in regard to the Washington National Bank, of New York, recently closed, but refused to disclose its contents. He has, however, addressed a communication to Mr. Hepburn, suggesting that only two courses are open if a receivership is to be avoided. In the first place, the Controller can levy an assessment of 50 per cent upon the capital stock, which would reinforce the assets of the bank by $150,000 cash. In case this amount was paid in the Controller says he would permit the bank to resame business. If resumption is found impracticable the Controller suggests that $357,000 in addition to the immediately available assets already in hand would enable the bank to pay its creditors promptly in full, whereupon they could vote to go into voluntary liquidation and close the affairs of the bank themselves,

18. March 30, 1891 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, March 30, 1891

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About the Washington Bank. WASHINGTON, March 28. - Mr. Lacey, comptroller of currency, today received the report of National Bank Examiner Hepburne in regard to the Washington National Bank of New York, recently closed, but he refused to disclose its contents. He has, however, addressed a communication to Mr. Hepburne, suggesting two courses which are open if a receivership is to be avoided. He says he is in hopes that one or the other of these plans may be adopted, otherwise it will be his duty to appoint a receiver and close the bank up id the usual way.

19. April 10, 1891 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, April 10, 1891

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TELEGRAPHIC JOTTINGS. Over a hundred French Canadians left Montreal yesterday to settle in Lynn, Mass. The Canadian cruisers will go into service about the first of May to protect the Canadians fisheries. The suspension of port works in Argentine is imminent. Fourteen generals have signed a manifesto against the Mitre-Roca coalition. The formation of a gigantic copper trust was inaugurated in Philadelphia yesterday which in extent and importance promises to eclipse even the sugar trust. Right Hon. George Augustus Frederick Cavendish-Bentinck, member of parliament for White Haven, is dead. He was born in 1821 and was a conservative. The strike of the Burlington switchmen is assuming a serious nature. The yards at Omaha are guarded by a strong detail of police and the strikers are at present quiet. Trouble is feared. The directors of the Washington National bank of New York met yesterday and voted in their opinion the bank should go into voluntary liquidation. They will recommend such action to the stockholders at their meeting on Monday. Three tramps went to sleep under a side tracked freight car near Pittsburg Wednesday night. Early yesterday morning an engine pulled the car out, killing John Mooney and an unknown man, and cutting off both feet of John Kerns of Philadelphia. Two Kansas towns elected women po-

20. April 14, 1891 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, April 14, 1891

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Business Failures. LANCASTER, Pa., April 13.-Thomas Baumgartner assigned this afternoon. His liabilities are estimated at from $560,000 to $750,000, and the assets are probably very small. Baumgartner was a member of the firm of Baumgartuer & Eberman, which assigned Saturday. The failure was brought about largely, it is said, by over indorsement and enormous speculations, largely on borrowed capital. Henry L. Stehman, a large farmer and tobacco dealer of East Hempfield township, made an assignment today. Liabilities, $100,000; assets about the same. BOSTON, April 13-A minority of the stockholders of the Para Rubber Shoe Company have petitioned for the appointment of a receiver for the company, alleging fraud and insolvency of the firm. The capital stock is $1,000,000. Of this amount the officers of the company are said to own or control about two-thirds. George D. Clapp, one of the directors, asserted that the company was perfectly sound. NEW YORK, April 13.-At a meeting of the directors and stockholders of the Washington National bank held here today it was decided that the bank should go into voluntary liquidation. LONDON, April 13.-At a meeting of creditors of Prior, Woolen & Co., timber merchants, whose failure was recently announced, it was shown that the unsecured liabilities amount to £42,000. A scheme of arrangement was agreed upon which provides for vesting the firm's property for the benefit of creditors. On April 2 an official statement issued by Prior, Woolen & Co., who are partners in the house of Heatley, Woolen & Co., of San Francisco, showed that the liabilities of the concern amounted to £56,800, and the assets to £104,055.

21. April 17, 1891 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, April 17, 1891

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SQUEEZED THE DIRECTORS. Complications Arising From Two Recent Heavy Failures. ASBURY PARK, N.J., April 16.-Couneilor McGill has appointed ex-State Treasurer Toffey receiver of the Decatur and Nashville Improvement Company. This corporation was organized under the laws of New Jersey for the purpose of constructing the Decatur, Chesapeake and New Orleans Railway. This is the railroad company whose bonds figure exclusively in the failures of the American Loan and Trust Company and the Washington National Bank, both of New York. J. Edward Simmons, the President of the Fourth National Bank of New York, is the receiver of the American Loan and Trust Company. Receiver Toffey has made, through counsel, a demand that Receiver Simmons return to him bonds of the Decatur, Chesapeake and New Orleans Railway Company of the face value of $333,000. Receiver Toffey claims that $183,000 worth of the bonds were squeezed out of the Decatur and Nashville Improvement Company as extra or additional collateral security upon certain loans. The other $150,000 worth of the bonds, Receiver Toffey alleges, were obtained by some of the directors of the American Loan and Trust Company by a similar process of "squeezing." The Decatur and Nashville Improvement Company had been promised certain loans. These loans were withheld until the $150,000 in bonds of the railway company were turned over to the directors of the loan company. These directors subsequently turned the bonds over to the loan company, and Mr. Simmons now has possession of them as the receiver of that corporation. If the bonds are not returned to Receiver Toffey he will bring suit for their recovery.

22. August 8, 1891 New-York Tribune New York, NY
Article from New-York Tribune, August 8, 1891

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TO REPLACE THE WASHINGTON BANK. A MOVEMENT ON FOOT TO ESTABLISH A NEW INSTITUTION ON THE SITE OF THE OLD. Some of the stockholders and old customers of the Washington National Bank, at No. 1 Broadway, which went into the hands of a receiver several months ago, are urging the adoption of some plan of reorganization by which the bank may, under another name and under conservative management, be enabled to resume business. The stockholders who have agreed to enter into such a movement represent $150,000 of the old stock. Among them are General Granville M. Dodge, who was the vice-president of the bank, and J. T. Granger. the cashier. Sidell Tilghman, who was the most prominent among the opponents of any attempt to reorganize the institution at the time of its failure, will not be represented in the new organization. The new institution will be entirely new-new name, new directors and changed policy. The promoters of the enterprise assert that there can be no lack of business, as the books of the Washington National show that between June 1 and October 11, 1890, there was an increase of more than $1,000,000 in the deposits. Nearly all the obligations of the Washington National, it is said, have been discharged, and the funds now accumulating are held for the benefit of stockholders. There is said to be a bright outlook for a final settlement with stockholders, and it is now estimated that they will receive in dividends between 60 per cent and 75 per cent of their original investments. It is thought that the prompt settlement which was made with the depositors in the old institution would induce them to return to the reorganized bank. Under the plan of reorganization the stockholders will be asked to leave in whatever dividends they might receivé from the settlement of the affairs of the Washington National as a subscription toward the capital stock of the new bank. the subscriber to receive full-paid stock to the amount of his dividends, and the new people putting in enough to-make up the original capital of $800,000.