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TWO INSTITUTIONS WRECKED BINGHAMTON DEPOSITORS IN A PANIC. THE BROOME COUNTY NATIONAL BANK AND THE CHENANGO VALLEY SAVINGS BANK CLOSE THEIR DOORS TRACY R. MORGAN. CASHIER OF EACH BANK. CONFESSES STEALING $100,000. [BY TELEGRAPH TO THE TRIBUNE.] Binghamton, N. Y., Jan. 24.-Binghamton Folis confronted with a grave financial crisis. lowing upon the sensational failure of the Ross family of bankers and the Merchants' State Bank, on Monday. this morning was announced the suspension of the Broome County National Bank and the Chenango Valley Savings Bank, both in the same building. D. L. Brownson R. is president of the savings bank and Tracy Morgan treasurer. This morning before daylight they were seen to enter the bank by a side door, and a few minutes later emerged with a big basket full of papers and books. Detective Stephenson and Policeman Heath had been instructed the night before by Bank Examiner and Backus to watch the bank from the outside. when they saw Messrs. Morgan and Brownson come out with the basket they followed them. of As both bank officials were well-known men. high standing. the policemen were loath to deal arbitrarily with them. and allowed them to go several blocks with their burden. Then Stephenson spoke to Mr. Morgan, requesting that he return the books and papers. A heated argument followed. and the policemen were finally obliged to force Morgan and Brownson to return at the the muzzle of a revolver. They returned to bank. and then one of the policemen informed 9:15 Examiner Backus of the occurrence. At the o'clock, shortly after the time for opening bank. the examiner declared the institution The insolvent. and ordered the doors closed. Broome County National Bank also closed up. Mor- as the officials feared a run.. Brownson and gan are also president and cashier. respectively. of this bank. The news of the suspension spread like wildwhen the news of the books was noised abroad a panic was All fire the the and besteged attempt with to created steal other city banks were de- for positors all day long and, although prepared the run, it is a question of how long their cash on hand will hold out. The Broome County and National Bank was the repository for the city county funds. amounting in all to nearly $300,000. But the sensation of the day. however, was reserved until this afternoon when Treasurer Morgan's confession to Examiner Backus was made public. The Tribune correspondent saw Mr. Backus and learned that Morgan had confessed to embezzling nearly $100,000. and also to forgery on several occasions. He has changed the bank his made false entries and erasures, had caused the wreck bank Examiner Backus said he embezzlement records, ings of had that the and hardly savinto the books before he saw crooked work. He of but he denied it. Later on had looked defaulting been accused Morgan forced when there more proof came up the bank official was to acknowledge his guilt He made a written confession to the Examiner last night, and this morning his evident intention, when removing the books. was to cover up the traces of his guilt. When the Examiner discovered the true state of affairs he forbade Morgan and Brownson 40 be at the bank. Their entrance this morning is nothing short of burglary. and this with Morgan's confession of stealing gives sufficient ground for a criminal action against them both. Mr. Morgan is seventy-nine years old and has been one of the most respected citizens of Binghamton. He is one of the trustees of Christ Episcopal Church He served the city one term as Mayor. Mr. Morgan was also a prominent Odd Fellow. and, indeed, was custodian of the of a Binghamton Lodge's funds to the building amount $20,000. The lodge contemplated chapter-house with this, but it is feared that his peculations have been extended to this sum. Morgan refuses to see any one. These bank failures are the first in the business history of the city, and the effect will be $600,000 that of defor years will be paralyzed. Over money is tied up in the savings bank. positors' and as most of it belongs to the poorer classes, times will be still harder for them. deThe the hard four defunct banks carried $2,500,000 in posits. The run upon the Binghamton Savings depositors Bank heavy, and the crowd of anxious was increased was with the hours: but the bank pale, prepared for the emergency The officers, heavy but cool and composed, stood behind the plate glass windows surrounded by protected piles of gold and silver They had shining themselves with a large amount of cash, from and the day telegrams were Ived metropolitan during banking institutions to the banks effect that they would support the Binghamton for unlimited after amounts. the opening of the National Broome Soon County Bank to-day there were first heavy of demands upon its funds. One of the was for $1,000 made by George Pierce. these Soon after. E M. Tierney withdrew deposit for $2,000 and this was followed by draft $11,000 of made by General E. F. Jones. Then the were closed. doors The last statement made by the bank shows the following figures: Liabilities Deposits, $397,500; rediscounts. $18,087; total, $415,588. customers' paper, $414,000; cash, $61,000; $14,500; overdrafts, Assets $19,000; due from other banks, total, $511,500 Tracy R. Morgan was cashier of both banks, which were virtually in one, except that regulated separate books were kept each, one being by the National banking la and the other was regulated by the State Banking Department. the Brownson is president of both banks, and Loomis is son-in-law of Mr. Morgan. Bentamin N. is vice-president of the savings bank. Albany, Jan. 24.-The following dispatch from State Bank Examiner Philo H. Backus, at Binghamton, was received at the State Banking Department this afternoon: Have closed Chenango Valley Savings Bank: and def full Treasurer Morgan: the cause alcation by known; books in bad condition: not Broome written extent not or posted: defalcation confessed. has sus County National Bank, in same room, wired Supering Morgan Is cashier Have pended; New-York, and notified tendent Preston in full from Controller of t the Currency Received replies Burglary of vault attempted About Na. both Cashier Morgan and President Brownson, of I had tional Bank; prevented by detective whom engaged. Washington, Jan. 24.-Controller Eckels has ordered Bank Examiner Vanvraken to assume charge of the National Broome County Bank of Binghamton, New-York, which closed its doors to business this morning. The bank has a capital ofof $100,000 and had a reserve of $20,000. No ficial statement of its condition has been received here. A PROVIDENCE FIRM IN DIFFICULTIES Providence, Jan. 24.-The Kent & Stanley Company. a large manufacturing corporation here, has anaddressed a circular letter to its creditors nouncing present inability to meet maturing payortension of time The
