Endicott Company, Bankers (Endicott, NY)

Episode Information

Episode UID
50096971482
Episode Type
Run Only
Bank Type
private
Bank ID
5009697 routing
Routing Number
50-0969
Start Date
June 8, 1923
Location
Endicott, New York (42.098, -76.049)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5d09e52eac3d5417

Response Measures

None

Description

Contemporaneous reports describe a rumor-driven run tied to Jenney's arrest; later civil litigation alleges a deliberate campaign of falsehoods.

Events (1)
1. June 8, 1923 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors of insolvency spread after the arrest of president Earl B. Jenney; plaintiffs later alleged rivals deliberately circulated false statements to provoke withdrawals.
Measures
Bank remained open and honored checking accounts on demand; invoked 60-day rule for interest accounts; received funds ($35,000) from Irving National to bolster cash.
Newspaper Excerpt
Rumors spread through Endicott yesterday morning, following the arrest of Mr. Jenney... depositors started a run on the bank.
Source
newspapers

Newspaper Articles (8)
1. June 9, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, June 9, 1923

Click image to open full size in new tab

Article Text

Endicott Banker Is Tendered Big Ovation 'Run' on Bank of Yesterday Turned Into a Parade of Confident Friends Last Night and a Veritable Reception This Morning Endicott, June 9—The building of the Endicott Co., Bankers, surrounded yesterday by depositors clamoring for their deposits, was the center of a different scene this morning. Confidence late yesterday replaced doubt and before banking hours were over the "run," caused by the arrest of Earl B. Jenney on a charge of using the mails to defraud, was over. It was a continuous reception of congratulatory friends that was held this morning by Mr. Jenney and his wife at the offices of the bank. Mr. Jenney vibrated from friend to friend with smiles and jubilant assertions that his enemies had "framed" him and had failed. There were many hand shakes and the exchange of mutual assurances of confidence. "We took in more money on deposit yesterday than we paid out," Mr. Jenney said. "One friend came and deposited $10,000. Many called me up on telephone and offered assistance. The loyalty of my friends, in whom I have always trusted, showed itself stronger than ever." In the midst of happy reassurances, one of Mr. Jenney's attorneys, James F. Sullivan, arrived with two large packages, which he said had just been received from the Irving National bank of New York city. One was marked "$12,000" and the other "$23,000." "There's $35,000," Mr. Sullivan said, "lend me a knife." He cut the twine, ripped off the great patches of red sealing wax and disclosed great packets of bank notes. The Rev. Rocco Macchiaverna, pastor of the Church of St. Anthony of Padua, was there, giving his friends and parishioners assurance of the solvency of the Endicott Co., Bankers, and of his personal confidence in the integrity of Mr. Jenney. The sight of $35,000 urged him to even more enthusiastic utterance. Parade Last Night. A great demonstration of confidence was given Mr. Jenney last night, when Pezzulla's band came down from the North Side and proceeded to serenade him. Then a procession was formed, and Mr. Jenney and his many friends had a march of triumph. In front of the Security building, where the business of the Endicott Company, Bankers, is conducted, Mr. Sullivan and Father Macchiaverna made addresses to the crowd. "I speak English not very well," said the clergyman, "but I want to say that Mr. Jenney is all right." Then came a spirited burst of Italian, which was understood and applauded by many of his hearers. Mr. Jenney emphasized both yesterday and today that there was "nothing to" the charge brought against him as president of the United States Capital corporation of New York, and today he was bitter in his denunciation of the men who he says "framed" him.

2. June 9, 1923 The Ithaca Journal Ithaca, NY
Article from The Ithaca Journal, June 9, 1923

Click image to open full size in new tab

Article Text

Arrest of Endicott Bankers Causes Run On Village Bank Binghamton, June 9 — Earl Burt Jenney, president of the United States Capital, the Endicott Company, Bankers, the State National Corporation, all of Endicott, and Fred August Belden, cashier of the bank and an officer of the Capital Corporation, are being held in $35,000 and $12,000 bail, respectively, the first being charged with using the mails to defraud, and the second in aiding preparing the alleged fraudulent matter, for action in United States District Court. Mr. Jenney was arrested Thursday afternoon at 1 o'clock by Deputy United States Marshal John F. Shay on complaint of Postoffice Inspector Harry G. Morganroth, and was immediately arraigned before United States Commissioner Robert S. Wickham. After pleading not guilty, through his attorney, Charles J. Mangan of the office of Mangan & Mangan, he was released on bail for hearing on June 21. Belden was arrested yesterday morning, and after pleading not guilty was held on bail for a hearing on the same date. Rumors spread through Endicott yesterday morning, following the arrest of Mr. Jenney, that the Endicott Company, Bankers, was insolvent, and as a result depositors started a run on the bank. There were hundreds in the crowd around the entrance to the bank building at No. 48 Washington avenue, Endicott, as early as 10 o'clock in the morning, and at noon it is estimated that there were 500 persons in the crowd which were besieging the doors of the institution. The bank was kept open and Mr. Jenney stated last evening that every checking account had been honored on demand, and that the bank had taken advantage of the 60 days allowed by law in which to pay all interest accounts. These will be payable on and after August 8. Mr. Jenney also said that some of these accounts had even been paid.

3. June 28, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, June 28, 1923

Click image to open full size in new tab

Article Text

Party Is Given in Honor of North Side Girl venue was hostess Tuesday afternoon at a party given in honor of her eigh Eleanor English, Cecelia Terry, Emily Wilcox, Ruth Cofnick and Edward E about the month of April, 1923, the defendants wickedly, maliciously, illegally and unlawfully conspired, confederated, connived, planned and agreed among themselves to cause the financial, moral and physical ruin of this plaintiff and to drive him out of Endicott and to wreck his said business known as 'The Endicott Company, Bankers,' and his private fortune and to wreck his said business enterprises known as 'United States Capital Corporation of New York' and 'The State National Corporation,' and to cause a run on said plaintiff's private bank, and destroy the same, so that the said State Bank of Endicott might be the only bank operated in Endicott for the benefit of themselves and their colleagues and business enterprises, and that the property owned or controlled by said plaintiff and the said corporations over which he had management might be obtained by the said defendant, George F. Johnson, and his said associates, these defendants, for the benefit of themselves and said Endicott Johnson Corporation at forced sale and at less than their real values and that the plaintiff might be removed as an opposing element to the plans and purposes of the defendant, George F. Johnson, and his said associates in the conduct of both public and private affairs in the said village of Endicott and vicinity and the character and reputation for honesty and fair dealing which he had built up during the years he had lived at Endicott, and his moral rectitude and integrity destroyed, and the said defendants in pursuance of such conspiracy, so conspired and did the acts hereinafter set forth for such unlawful purpose of injuring this plaintiff, and depreciating and rendering valueless the stock of the United States Capital Corporation in which he was substantially the principal stockholder and where his private fortune, aside from his banking capital was placed, and destroying his private bank known as the Endicott Company, Bankers, with insinuations voiced by the said defendants, their agents and servants as to lack of integrity and weakness of said bank and the securities in which the funds thereof were invested, and to cause a run to be made thereon by the depositors therein, who would be frightened by such statements to the end that the vengeance and spite of these defendants might be vented in full and this plaintiff might be ruined in his health, morals and finances, and be caused mental worry, anxiety, physical strain and anguish. Alleged Conspiracy Means. "15. That in pursuance of such conspiracy the defendants, George F. Johnson, William F. Dickson, John E. Paden and Maurice E. Page, employed one G. W. B. Whitten, an employee of an alleged detective agency known as Investors Vigilance Committee, Inc., of New York city, and a man stated and alleged to them by his superiors to be a soldier of fortune, unscrupulous, cold-blooded, ruthless, relentless and fearing neither God nor man, as their paid agent to take whatever steps might be necessary, without regard to their legality, to manufacture evidence, to use improper influence upon officials with whom he claimed to be in direct contact, to harass and ruin this plaintiff, and to cause him to be unjustly accused and put in jail, using the money of these defendants and their influence for such improper purpose. "16. That pursuant to such employment the said Whitten made false and fraudulent statements to the attorney general of the state of New York as to the financial solvency of the different enterprises in which this plaintiff was interested, for the purpose of procuring action by the said attorney general's office which would tend to harass, annoy and ultimately destroy such corporations and particularly the United States Capital Corporation; that the said Whitten went to the office of the said attorney general for such purpose, and for the purpose of carrying out the same, reports were circulated by the said defendants that the several enterprises of the said plaintiff and particularly the United States Capital Corporation were to be investigated at Albany, and on May 3, 1923, the date on which the hearing was scheduled to be held at Albany, a meeting of the representative citizens in Endicott was called at 8 o'clock in the diner of the Endicott Johnson Corporation, at a time when it was impossible for the plaintiff to be present at such meeting by reason of the fact that he had been subpoenaed to Albany, and also certain of his employes and officers connected with his enterprises had been called before the attorney general and were out of the village. At said meeting in Endicott in the presence of 450 people, a public attack was made on plaintiff, people being invited from Binghamton and Johnson City. It was stated that the purpose of the meeting was to rid the community of Blue Sky fraudulent investments and their promoters. The meeting was ostensibly held under the auspices of the Endicott Chamber of Commerce, which was a cover used by these defendants for the unlawful purposes of said conspiracy. The defendants, Dickson, Paden and Page, employes and officers of the Endicott Johnson Corporation, were on the committee and were interested with the other defendants in this conspiracy. In connection therewith a Mr. Budd, who was one of the officers of the so-called alleged detective agency of the Investors Vigilance Committee, Inc., of New York, was hired and induced to come to Binghamton by the defendants, and he assisted in the conduct of the meeting, making a public speech thereat. Before permitting said Budd to address the said meeting, the defendants, Dickson and George F. Johnson, instructed him not to make any direct reference to this plaintiff, but to so shape his remarks that they could and would be interpreted by those present as relating to this plaintiff and the different enterprises in which he was interested. At the time in question the plaintiff was engaged in selling stock in the United States Capital Corporation, which said stock was legal, of full value and represented a good portion of the savings and life work of this plaintiff, but the entire talk of Budd was so directed and treated that by reason thereof and other acts of the defendants that plaintiff was unable to sell but a small amount of stock in the village of Endicott. That the sole purpose of the above meeting was for carrying on the fraudulent purposes set forth in this complaint and as a part thereof, and the same was held while and staged at a time when this plaintiff could not be present, as he was obliged to appear under a subpoena at Albany before the attorney general or a deputy attorney general. He was obliged to employ counsel for such purpose and said hearing was subsequently adjourned to the city of Binghamton where another hearing was held and this plaintiff was examined. The real estate and property in connection with said corporation was investigated both as to value and lo-

4. June 28, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, June 28, 1923

Click image to open full size in new tab

Article Text

said defendants George F. Johnson and his associates, these defendants, were to 'get Jenney at any cost, to frame him and to railroad him to jail'; that the defendants did not care how it was done or what it cost and that the said defendants did not want to be informed in advance of any of the unlawful acts contemplated by said Witten so that they might not at any time be connected up therewith. That Jenney was to be run out of town and railroaded to jail and the credit therefor was to be taken by the so-called detective corporation by whom the said Witten was purported to be employed and that the defendants were to furnish whatever funds that might be necessary to carry out said unlawful conspiracy, and said Witten explained to said defendants that 'anybody can be framed if you know the ropes' and said Witten was instructed to proceed along those lines to accomplish said purposes. Alleged 'Framing' of Case. "22. That in furtherance of said conspiracy the defendant, George F. Johnson, and his associates also em- Attempt to Muzzle News. Paragraphs 2, 3 and 24 refer to an alleged effort on the part of the defendants to keep the news of Jenney's arrest becoming public on June 7, after they learned that $100,000 in currency expected by them and intended for use in withstanding an anticipated sympathetic run on the State Bank of Endicott had not arrived. The complaint continues: "25. That during the morning of June 8, 1923, the defendants, through the various superintendents and foremen employed in the Endicott-Johnson Corporation factories caused information to be given to the workers of the arrest of this plaintiff and caused statements to be made to said workers that the plaintiff's said private bank known as the Endicott Company, Bankers, was insolvent and in financial difficulties and said defendants likewise caused such information concerning the plaintiff's arrest and the alleged insolvency of said private bank to be disseminated through agents throughout the Village of Endicott and vicinity, both by telephone and

5. June 28, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, June 28, 1923

Click image to open full size in new tab

Article Text

Shoe Manufacturers Charged with Plot to Ruin Private Bank (Continued from Page 12.) fendant, Warner, while believing that such run would ultimately be successful in causing the plaintiff's complete financial ruin, was disappointed at the smallness of the crowd participating in the run up until that time and after giving out such information at 11 a. m., as aforesaid, that all payments had been stopped, also stated, referring to the noon whistle at the Endicott Johnson factory, that when the whistle blew it would be different, that word had been passed in the factories that Jenney was insolvent and when the workers quit for lunch the run on his bank would develop in real earnest. Alleged Creation of Suspicion. "27. That beginning on or about May 1, 1923, in pursuance of said conspiracy aforesaid and for the purpose of injuring the credit of this plaintiff in his enterprise known as Endicott Company, Bankers, the said defendants in control of the State Bank of Endicott, attached to drafts drawn by the Endicott Company, Bankers, on New York banks, and sent through their bank for collection, a statement which was pinned to such draft, and which was as follows in substance: 'Wire us if not paid'; the intended purpose of such statements being to call attention to the banks through whom such drafts were sent and upon whom the same were drawn that there was a possibility that the draft was of no value by reason of the fact that it was drawn by the Endicott Company, Bankers, and creating suspicion in the minds of the persons and banks through whose hands such drafts went. On the day when said run was being made and directed under the said illegal conspiracy aforesaid, on said Endicott Company, Bankers, the defendant, George W. Johnson and his brother, Walter L. Johnson, sat in the directors' room of the State Bank of Endicott, immediately across from the building occupied by Endicott Company, Bankers, watching the said run, directing the same and directing persons obligated to them and who relied upon their advice to take their bank books, go across to the plaintiff's said private bank and get their money immediately from Endicott Company, Bankers, all for the purpose of said conspiracy above set forth. That during the said time said defendant George F. Johnson, repeatedly called up the said defendant, George W. Johnson, who was his son, asking him as to the progress of said run, their employes and agents had employed a photographer to take moving pictures of the run and of the incidents in connection with the said conspiracy, to be used by them in the furtherance of their business enterprise, which said moving picture concern was present at Endicott at said time for the said purpose aforesaid, all in pursuance of said conspiracy. That the said George F. Johnson and said defendants knew the minute when the said plaintiff was to be arrested under and pursuant to the information lodged against him, and timed the run on said bank to be had in connection therewith. That on the date of said run the State Bank of Endicott under direction of these defendants, although the Endicott Company, Bankers, had ample funds on deposit with them, refused to pay checks drawn on the Endicott Company, Bankers, and presented to them and sent personally a trade acceptance payable at the Endicott Company, Bankers, in a large amount and not in the usual channels and in the usual course of business, all in pursuance of the conspiracy to wreck this plaintiff and his said business enterprises. That the defendant, Lulu E. Johnson, wife of said George W. Johnson, instructed certain friends, employes and other persons interested, that said Endicott Company, Bankers, was insolvent, was about to fail and that they should immediately withdraw their deposits from said bank if they desired to save the same, all of which was done on the day when said run was started as aforesaid. That the said witnesses and the several defendants above set forth walked among the employes of said Endicott Johnson Corporation for the purpose of stirring up suspicion, ill will and fear of the loss of their life savings among the same, a goodly portion of which said employes were of foreign extraction, a great many of them not speaking the English language, and who would be more susceptible to this particular kind of rumor than natural born Americans. By reason of the unexpectedness of the assault upon this plaintiff, his arrest, and the unreadiness of his private enterprise known as the Endicott Company, Bankers, for such a movement, the defendants believed that plaintiff's said business enterprises would be wrecked and he himself, by reason of the false statements as to his personal character and reputation, would be morally, financially and physically ruined, all in pursuance of said alleged conspiracy.

6. June 28, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, June 28, 1923

Click image to open full size in new tab

Article Text

their employes and agents had employed a photographer to take moving pictures of the run and of the incidents in connection with the said conspiracy, to be used by them in the furtherance of their business enterprise, which said moving picture concern was present at Endicott at said time for the said purpose aforesaid, all in pursuance of said conspiracy. That the said George F. Johnson and said defendants knew the minute when the said plaintiff was to be arrested under and pursuant to the information lodged against him, and timed the run on said bank to be had in connection therewith. That on the date of said run the State Bank of Endicott under direction of these defendants, although the Endicott Company, Bankers, had ample funds on deposit with them, refused to pay checks drawn on the Endicott Company, Bankers, and presented to them and sent personally a trade acceptance payable at the Endicott Company, Bankers, in a large amount and not in the usual channels and in the usual course of business, all in pursuance of the conspiracy to wreck this plaintiff and his said business enterprises. That the defendant, Lulu E. Johnson, wife of said George W. Johnson, instructed certain friends, employes and other persons interested, that said Endicott Company, Bankers, was insolvent, was about to fail and that they should immediately withdraw their deposits from said bank if they desired to save the same, all of which was done on the day when said run was started as aforesaid. That the said witnesses and the several defendants above set forth, walked among the employes of said Endicott Johnson Corporation for the purpose of stirring up suspicion, ill will and fear of the loss of their life savings among the same, a goodly portion of which said employes were of foreign extraction, a great many of them not speaking the English language, and who would be more susceptible to this particular kind of rumor than natural born Americans. By reason of the unexpectedness of the assault upon this plaintiff, his arrest, and the unreadiness of his private enterprise known as the Endicott Company, Bankers, for such a movement, the defendants believed that plaintiff's said business enterprises would be wrecked and he himself, by reason of the false statements as to his personal character and reputation, would be morally, financially and physically ruined, all in pursuance of said alleged conspiracy. Lasting Damage Charged. "28. That although materially injured, harmed and damaged by such run, the plaintiff's said private bank, known as the Endicott Co., Bankers, is still running, and the defendant, George F. Johnson and his associates have promised the said Witten a large sum of money

7. September 15, 1923 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, September 15, 1923

Click image to open full size in new tab

Article Text

E. B. Jenney Drops His $1,500,000 Damage Suit Against Johnson Former Senator Hinman, as Attorney for Defendants, Denies That Any One Connected with Corporation Will Be Associated with Enterprise SUDDEN WITHDRAWAL OF ACTION IS OPPOSED Supreme Court Justice Leon C. Rhodes this morning dismissed the $1,500,000 conspiracy action brought by Earl Burt Jenney, head of the Endicott Co., Bankers, against George F. Johnson, George W. Johnson, Mrs. George W. Johnson, William F. Dickson, John E. Paden, Chester B. Lord, Maurice E. Page and David E. Warner, upon the motion of Thomas B. Merchant of the firm of Merchant, Waite & Waite, representing Mr. Jenney. The motion followed the demand of Harvey D. Hinman, of the firm of Hinman, Howard & Kattell, representing the defendants, that Mr. Jenney submit to an examination in court. Justice Rhodes limited the costs of the action to be paid by the plaintiff upon withdrawing the suit to taxable costs amounting to about $10, saying that as an arrangement had been affected, as he understood in the reorganization of the Jenney bank, he thought it would be better to allow the bank to get on its feet without penalizing the plaintiff with heavy costs, demanded by the defendants and which would amount to about $5,000. Denies E J Will be Represented in Bank. Former Senator Hinman, as attorney for the Endicott Johnson Corporation, at the conclusion of the court proceedings which resulted in the discontinuance of the conspiracy action, issued the following statement: "The statements in the Morning Sun of Saturday, Sept. 15, to the effect that officials of the Endicott Johnson Corporation will be on the board of directors of any of Mr. Jenney's concerns, or of any concerns in which he may later be interested, is untrue. "No person connected or associated with the Endicott Johnson Corporation is, will be or can be associated in any way with any undertaking or business in which Mr. Jenney is interested or connected, or may in the future be interested or connected." Mr. Merchant in his motion before the court for a dismissal of the complaint, said: "This action was brought to recover damages alleged to have been sustained by the plaintiff, arising out of the run on the Endicott Co., Bankers, and alleged efforts on the part of the defendants to block the sale of stock of the United States Capital Corporation. "A movement is now on foot to reorganize the United States Capital Corporation and eventually to form a National Bank in Endicott, which will supersede The Endicott Co., Bankers. If this proposed reorganization can be put through there would be no point in bringing this action to trial, and if we did push the case for trial we probably could not recover more than nominal damages. "Believing that this reorganization will redound to the benefit of the community at large and to the plaintiff and be a humanitarian act, we make formal application to withdraw this action. "On Sept. 8, 1923, we tendered a stipulation to the attorneys for the defendants to withdraw and discontinue this action and tendered them the accrued costs of the action before notice of trial. They declined to accept the costs and declined to sign the stipulation, whereupon we obtained an order to show cause from Your Honor on Sept. 8, 1923, returnable this morning, Sept. 15, and under the circumstances, believe we are entitled to a discontinuance of this action without further costs." Not Ordinary Law Suit. Former Senator Hinman, in answering argument against dismissal of the complaint, laid stress upon the damage, which he alleged had been done to his clients by the conspiracy charge. He said: "In an ordinary lawsuit a defendant should be and usually is willing plaintiff withdraw and discontinue the litigation; but this is not an ordinary lawsuit. It is an unusual and extraordinary case. It was brought by a banker against men of the highest standing and character, and who are officials of the largest concern in this part of the country, to recover $1,500,000 as damages alleged to have been sustained by plaintiff as the result of a conspiracy on the part of the defendants, which plaintiff alleges they entered into and carried on for the purpose of ruining him and his business. Some of the particular and criminal charges against the defendants are that they wrongfully caused the arrest of plaintiff for having used the mails fraudulently and caused a run on his bank through the circulation of false rumors, statements and reports concerning the plaintiff and the solvency of his bank and caused the attorney general of the state to proceed against plaintiff under the provisions of Section 352 of the General Business Law on the ground that plaintiff was engaged in a scheme to defraud by the sale of worthless stock in one of his corporations. "While it is not usual in this county to file pleadings in the clerk's office until final judgment in the action is filed, the complaint in this action was filed two days after the action was begun. That complaint was given to one of our local newspapers for publication, and was published practically in full, with all its irrelevant and offensive allegations, which, as stated, had nothing to do with the merits of the case. The next day the complaint was published in full in the other local newspaper, thereby giving wide publicity to all the charges made by plaintiff against defendants. In due time defendants appeared in the action and served separate answers to the complaint in which they denied, under oath, all the charges of conspiracy and wrongful and illegal acts on their part. Those answers have not been published. Thereafter, the plaintiff's attorneys of record served an amended complaint in the action, from which they eliminated much of the immaterial and offensive matter contained in the original complaint. Neither that amended complaint, nor any reference to or mention of it had been published. Thereupon the defendants served separate answers to such amended complaint, in which they denied, under oath, the charges of conspiracy and wrongful and illegal acts on their part. Those answers have not been published. "Now the plaintiff asks to withdraw and discontinue the action. If that is done, it leaves the plaintiff's side of the case fully stated and in the possession of the entire community without the community knowing the defendants' side. If a trial of the action is had, it will enable the defendants to present their side of the case and the facts and to prove they were not guilty of any of the wrongful acts charged against them. In other words, if the action is discontinued, it will, for all practical purposes, as far as the public is concerned, leave plaintiff's charges unanswered and undenied. It was for that reason we declined to consent to a discontinuance of the action. It is true plaintiff's attorneys' presented a stipulation for the discontinuance of the action and asked us to sign same, which we declined to do. They also tendered us the usual taxable costs of the action, which we declined to accept. "We are aware of the decisions and practice of our courts, which enable a plaintiff to discontinue an action at any time before trial upon payment of costs. "In view of the decisions, we are not at all certain that this court can refuse the application which plaintiff now makes for the discontinuance of this action, or that it can impose any conditions, except the payment of costs and such extra allowance of costs to be paid by plaintiff to defendants as the court may allow. We do say, and we believe the court will agree with us, that, if in any case, the court has power to refuse and should refuse to grant a discontinuance of an action the facts here present make this such a case. "If the court shall conclude it has no discretion in the matter and that under the law and the decisions the plaintiff is entitled to discontinue the action on payment of costs, then we submit that the plaintiff should be required to pay not only the taxable costs, but an extra allowance of costs, because the case is a difficult and most extraordinary one. We submit herewith an affidavit showing in a general way, the amount of labor which has been expended and expense incurred on behalf of defendants in the preparation of the case for trial and to prove the falsity of the charges made against defendants by plaintiff. "The action was begun by personal service of the summons and complaint on the defendant on or about June 26, in which Mr. Jenney charged the defendants with having conspired to ruin him and his various business concerns in Endicott and asked for damages of $1,500,000 which he alleged were sustained by him because of the illegal acts of the defendants. "The defendants through their attorneys, Hinman, Howard & Kattell, served separate answers to the complaint, in which the conspiracy was denied. Within 20 days after the service of the answers the plaintiff, through Merchant, Waite & Waite, served an amended complaint in which the charges of conspiracy were again charged. These were again answered by the defendants' attorneys who made a motion before Justice Abraham L. Kellogg of Oneonta on Aug. 30, to compel the plaintiff to submit to an examination before trial and to compel him to produce books and records of his private bank and of the United States Capital Corporation for inspection. These papers were very voluminous and contained many affidavits." Justice Kellogg ordered that the plaintiff show cause at a special term of court on Sept. 4, in this city, why the defendants should not have an examination of Mr. Jenney and also his books and records. The hearing was adjourned from time to time until this morning. Affidavit by Mr. Hinman. Mr. Hinman, in his affidavit for an extra allowance for costs of the action to the defendants, says: "Since this action was begun, I have spent substantially all of my time in connection with the examination of the facts, interviewing persons having knowledge of the various transactions and matters involved in the litigation, the examination of the law, the preparation of the pleadings and motion papers and generally in preparing this case for trial and getting ready for production the evidence to establish defendants' innocence of the charges made against them in the plaintiff's complaint and amended complaint in this action. Likewise, my law partner, Roger P. Clark, has been so engaged and during that time has been nearly two weeks in the State of Michigan investigating the plaintiff's history and transactions while a resident of that state and where he conducted several private banks. "In addition thereto, much of the time of said Clark and myself has been devoted to an examination of various records, conveyances and documents of record in Broome county clerk's office in which the plaintiff or his said corporations, the United States Capital Corporation and the State National Corporation are named as grantors or grantees. In connection with such examination we have employed and it was necessary for us to employ two experts of wide experience and standing to examine, make photographs of and advise concerning the typewritten matter appearing in such documents, records and conveyances and report to us the result of such examination and investigation, which reports we have and which it was necessary for us to have in preparing for the trial of this case and for use on the trial of the action. "We have also been obliged to employ and we have employed five of the most competent real estate men in the county to appraise the various properties, the title to which has stood or stands in the name of plaintiff or his said corporations, and which values had a very material bearing on the issues involved in this action and the transactions and dealings of plaintiff. Such appraisal has been completed and the expense necessary incurred and must be paid. "As I have stated, practically all of the time of my said partner and myself, since the commencement of this action, has been given to such work and necessarily so. "In such work and in the preparation of the case for trial, and it is practically ready for trial on the part of the defendants, it has been necessary for us to and we have expended and necessarily incurred expenses on behalf of the defendants in the sum of nearly $5,000. In that work, it has been necessary for us to make and we have made trips to Philadelphia, Pa., New York city, N. Y., Albany, N. Y., Rochester, N. Y., Buffalo, N. Y., Indianapolis, Ind., as well as to the state of Michigan, as above stated. "As appears from the pleadings and the motion papers, herein referred to and which are hereby made a part hereof, this case is a difficult and extraordinary case in my opinion, which is based upon a practice covering a period of 32 years. "I submit that if the court permits a discontinuance of this action, it should impose as a condition thereof the payment of three separate bills of cost by plaintiff and of an extra allowance of costs due to the fact that the case is not only difficult and extraordinary, but that a large amount of labor has been expended and expenses incurred in preparing the case for trial." What Charge Alleged? The conspiracy charge in brief alleged that Mr. Johnson and his associates conspired to ruin Jenney dominate and control his banking business in the village of Endicott and because they desired to own, dominate and control his real estate holdings in the town of Union. It also was alleged that the defendants conspired to cause a run on the Endicott Co. Bankers, and also attempted to coerce agents of the United States Capital Corporation into testifying as they wished, by threats and intimidations, to produce the arrest of Jenney on a charge of illegal use of the mails. The complaint also alleged that the defendants attempted to prejudice the courts and used unfair influence and tried to "frame" the plaintiff. Mr. Jenney in his complaint also alleged an attempt on the part of the defendants to muzzle the news of the arrest of the plaintiff, when they learned that $100,000 in currency expected by them and intended for use in withstanding an anticipated sympathetic run on the State Bank of Endicott had not arrived. That during the morning of June 8, the defendants through superintendents and foremen employed by the Endicott Johnson Corporation factories caused statements to be given to the workers of the Jenney bank's insolvency and arrest of Mr. Jenney, so that a run was precipitated on the Jenney bank. The first complaint submitted by the plaintiff contained 33 closely typewritten pages.

8. April 1, 1925 Press and Sun-Bulletin Binghamton, NY
Article from Press and Sun-Bulletin, April 1, 1925

Click image to open full size in new tab

Article Text

Earl Burt Jenney Is Exonerated by S. Judge Cooper Indictment Against Endicott Banker Accused of Using Mails to Defraud Is Dismissed in Federal Court and Bail Is Discharged WILL ASK TO BE FREED OF BANKRUPTCY Earl Burt Jenney, former president of the United States Capital Corporation and the Endicott Co. Bankers, who was arrested in June, 1923, charged with using the mails to defraud after an investigation by a private detective and who was indicted on the charge short time later, has been exonerated by Federal Judge Frank Cooper of Schenectady who yesterday signed an order dismissing the indictment against Jenney and discharging the ball bond for $10,000 given for his appearance in Federal court when received late yesterday afternoon from Utica. according to word The dismissal of the indictment After the detective had worked as is the culmination series stock in the Jenney for several weeks charges made against Jenney resulted in turned his information over to the and by which on the of the Endicott Federal which resulted in Bankers on June 1923 and the arrest. The principal evidence resulted in action for $1,500.- against Jenney consisted of circulars 000 damages brought Jenney pertaining to the financial status of Johnson and the United States Capital Corporaagainst George other members of the Endicott tion, one of Jenney's four subsidiary Johnson Corporation on charge organizations for the development real estate in West Endicott The conspiracy to ruin him. The civil action by Jenney was dis- Federal claimed that missed in Court, after the these figures and Endicott Co. Bankers, had been ad- statements that were false and that several of them were through judged in the the malls to prospective stock cusThere original indictment all of which tomers. Jenney after his arrest started his leged that Jenney attempted to fraud Maurice E. Page by misuse of civil action charging that George Johnson George W Johnthe mails. son and other members the En. Harry C. Perkins who appeared dicott Corporation were in for Jenney today that proceed to cause his ruin be. ings will be started within few cause they unable dominate to have Jenney and control his banking business in from and is likely the village of Endicott and because that Jenney will go West, to make they desired to own. and control his a fresh start in the business world real estate holdings in the town of Preparations for the trial of the indictment have been going for In statement made while he was some time, Perkins said. and until in jail Jenney said in part: just recently expected that the charge of using the mails to "My trouble began when purfraud would be pressed against chased the LeBaron property opJenney posite the factory in West Endicott. Arrested in 1923 it was zoned for rest- Jenney was arrested by Deputy United States Marshal John Shay on the complaint of Postoffice spector Harry Morganroth and he was released on bail on June 1923. Rumors spread Endicott following the arrest of Jenney and Fred August Balden eashier of the bank that the Endicott Co. Bankers were insolvent and as result started run on the bank at 48 Washington avenue, Endicott The arrests of Jenney and Balden was brought about an vestigation conducted by Major G. W. B. Witten. private detective representing the Investors' Vigilance Committee of 42 Broadway New York and was instigated by the dicott of The complaint in the case was based on affidavits sworn to by Harry Whittaker, former agent and bond salesman for Jenney and George Leslie Decker, assistant trea. surer of the United States Capital Corporation and also employed in the Endicott bank. The main part of the investigation was made by private detective. dential purposes to defeat my plan for business Later succeeded in having the vilfage trustees amend the zoning ordinance to make the property usable for During the run on the Endicott Co. Bankers, stated that the paid out $160,000 and that if left alone he could pay off all depositors with Interest and for the benefit of all. He fought persistently to oppose a receivership for the company Jenney in his civil action declared that Whitten made false and fraudulent statements to the attorney general of the state as to the different enterprises the Jenney interests were concerned in, particularly the United States Capital Corporation. with the result that an investigation was called for May 1923, at bany. While this meeting was in progress and Jenney was present, he claimed that representative citizens was held in Endicott in the diner of the E. Corporation in which public attack was directed against the Jenney interests.