Charles M. Whitney & Company (New York, NY)

Episode Information

Episode UID
5873864991091
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
587386499 hash
Start Date
November 11, 1890
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
2c5c98778b6a21bd

Response Measures

None

Events (1)
1. November 11, 1890 Suspension
Cause
Macro News
Cause Details
Stringency in the money market and heavy declines in stocks amid broader Wall Street failures and market panic led to the firm's inability to obtain funds and its assignment to an assignee.
Newspaper Excerpt
C. M. Whitney, banker, 96 Broadway, has suspended.
Source
newspapers

Newspaper Articles (10)
1. November 12, 1890 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 12, 1890

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THE STOCK MARKET. New York Brokers Excited Over Fluctuating Stocks in London. NEW YORK, Nov. 11.-There was a larger attendance of brokers on Exchange this morning than there has been for years. Every stock on the list had a crowd of btokers trying to trade in it, and when the market opened the scene was one of confusion and excitement. Cables reporting an advance of 2 to 5 per cent in London were received before opening and caused the brokers to take the bull side, and a dis position to buy was shown all round. Sugar opened up at 52 1-2, and moved up to 57, then reacted again to 55. C. M. Whitney, banker, 96 Broadway, has suspended. The failure of Decker Howell & Co., of Broadway, and of David Richmond has been announced to the stock exchange. Narr & Friend, of Philadelphia, brokers. have failed. Narr was a member of the New York stock exchange. The London stock market was rampant at its close. Everybody was scrambling to purchase and prices were leaping upwards two per cent. at a bound.

2. November 12, 1890 New-York Tribune New York, NY
Article from New-York Tribune, November 12, 1890

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years, vestment was excited by the unnatural depression. The squeeze in money rates and the crash in stocks dragged two firms and one individual broker yesterday into insolvency. The first failC. M. & created surfirm as prise, ure, a that house because of devoted of the Whitney to high standing investment Co., of business, the to the risks the transaction of of attendant which tive operations. is generally upon The supposed second an failure escape large specula- that & while not be Decker, the unexpected, most Howell the announcement Co., and, was deemed was wholly to important one of the day. The late suspension of David Richmond was recognized as comparatively unimportant. FAILURE OF DECKER. HOWELL & CO. A steady outpouring of the Northern Pacific and the North American stocks at the Stock Exchange at rapidly declining prices had prepared Wall Street for the news that Decker, Howell & Co., at No. 44 Broadway, were compelled to suspend. The house was known to be carrying large amounts of the so-called Villard" stocks, and the previous declines in their prices had a few weeks ago aroused fear that it could not weather the storm. At the same time many persons had supposed that the liquidations at that crisis had relieved the firm sufficiently to enable it to continue its heretofore prosperous career General expressions of regret were heard when the news of the suspension became public, as the firm has a long and honorable record in Wall Street, and its members are popular. The firm was organized on January 1, 1881, and consisted of Joseph S. Decker, George R. Howell, William A. Williams and William Evans, jr. All but Mr. Williams are members of the Stock Exchange. Mr. Decker joined the Exchange on March 6, , 1873, Mr. Howell on January 13, 1872, and Mr. Evans on February 3, 1874. Mr. Decker for over twenty years has been well known in Stock Exchange circles, and the firm organized in 1881 only succeeded a number of combinations previously made which had been successful in business. Among the styles under which the principal members had conducted business were Leonard, Sheldon & Foster, Leonard, Sheldon & Co., and Leonard, Howell & Co. Mr. Howell is a son-in-law of Mayor Fitler, of Philadelphia He entered the firm of Leonard, Howell & Co. in 1878, and the successor firm was that which suspended yesterday. Mr. Decker had been originally a partner of Turner Brothers. The sales under the rules of the Stock Exchange for account of Decker, Howell & Co., were as follows: Wisconsin Central, 200 shares: Northern Pacific preferred, 1,300; Northern Pacific common, 2,400; North American, 3,100; Great Northern, 400: Edison Electric Illuminating Company, 400: Western Union, 100; St. Paul, Minneapolis and Manitoba, 100; Toledo, Ann Arbor and North Michigan, 200 Missouri Pacific, 100; Sugar Refineries Company, 600 shares. The suspended firm has done a heavy business in stocks and bonds for years. For a long time past it has operated for the North American Company, the successor to the Oregon and Transcontinental Company. Henry Villard has been suspected of having large accounts with the house. but the members of the firm disclaimed the idea that their failure was, to any of his personal operations. They ascribed their suspension to the stringency in money, which embarrassed them in the handling of their large business. The continuance of the stringency in money, assisted by bear attacks upon the credit of the concern, finally brought the house face to face with practical inability to obtain funds. It is said by some persons who are in a position to know the facts, that even the stress of funds would not have carried the house under had it not been that the North American Company refused to take up loans which Decker, Howell & Co. had negotiated for the company. Henry Villard is now in Europe and furnished no assistance. It is generally hoped that the firm may be able to resume ere long. Mr. Decker himself declared that there was no lack of assets in control of the house, but that if depreciation in values was continued at the recent rate the future was uncertain. William Nelson Cromwell, to whom the firm made an assignment, said that if the creditors showed good judgment in handling the firm's securities, they would realize their claims in full. Friends of the firm felt confident that the action of the Clearing House Association in expanding credits would enable the house to make a full adjust ment in time. STATEMENT OF MR. DECKER. Joseph S. Decker made the following statement in regard to the failure of his firm Our trouble has come upon us chiefly from the troubles in the money market, the recent stringency in money the want of confidence which has been felt in Wall Street since August last. While we do general business. we are interested chiefly in Villard stock and have been carrying a large line of North American. Our obligations are chiefly in behalf of the North American Company. Our credit has been such that we have always able to get all the money we wanted from been the banks and private banking houses. We never been known as borrowers from the Stock have Exchange itself, but the recent stringency in money and the difficulty of obtai the usual collaterals has forced us to money on have never done the last two months. what we do, during before to go on the Stock Exchange and large sums of money. yes, very large sums. borrow day to day. That was so unusual for Decker from Howell & Co. that it attracted general attention. and we were obliged to borrow millions day, which made our situation worse of dollars the last few days it became about impossible During for us to secure money. Finally we had to have assistance to meet the emergency by suspending year ago we had ample security, but our stocks were of special line. We were known as Vilon. stock lard's to bankers, borrow and had only security on his Mr Speaking of the liabilities of his firm, Decker said I cannot tell exactly what our lia bilities are, but am afraid that they will to gate fully $10,000,000 Still, aggre secured The every dollar of banks money is due almost entirely and bankers, from whom we have borrowed money of and who own ample securities in the shape Villard stocks Mr. Villard is in no sponsible for our trouble. cannot that way redifficulty came about through our relations say with our the North American Company. C. M. WHITNEY & CO. COMPELLED TO SUSPEND The first failure yesterday was that of C. M Whitney & Co., bankers and brokers of No. 96 Broadway. The announcement of the failure was made on the floor of the Stock Exchange at 10:58 a. m. It was not wholly unexpected, though was the the first one resulting from the heavy decline it in market. The assignment was made to George W. Quintard, of No. 922 Fifth-ave. Quintard took possession of the office of the firm Mr. shortly before noon, but neither he nor the firm would give condition or the Street it was some bers cerning assignment. of to the the the firm's On any the information attributed causes of mem- con- the by fall in Southern securities, in which

3. November 12, 1890 Wheeling Register Wheeling, WV
Article from Wheeling Register, November 12, 1890

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Whitney Bank Not A ffected. NEW ORLEANS, L.A., November 11.In answer to an Associated Press inquiry the Whitney National Bank has issued the following statement with reference to the Whitney failure at New York. The President and Directors of the Whitney National Bank officially state that the suspension of C. M. Whitney, of New York, only affects the Whitney National Bank to the extent of $235.60. The Whitney Bank is not now, or has it ever been. directly or indirectly interested in the firm of C. M. Whitney & Co., or their transactions. A small complimentary account has been kept with C. M. Whitney & Co., the National Bank of Commerce being the New York correspondent of the S Whitney National Bank.

4. November 12, 1890 Asheville Daily Citizen Asheville, NC
Article from Asheville Daily Citizen, November 12, 1890

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The cause of the foregoing unusual amount of news from Wall street is found in the suspension yesterday of Chas. M. Whitney and the failure of Decker Howell & Co., J. T. Walker & Son. and of David Richmond in New York: Narr and Friend in Pidadelphia and the temporary embarrassment in New York of three banks which, however, were found to be in good shape. As the foregoing dispatches indicate. no further trouble is anticipated.

5. November 12, 1890 The Times Richmond, VA
Article from The Times, November 12, 1890

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FINANCE AND COMMERCE. QUOTATIONS OF THE NEW YORK COTTON MARKET. Situation of Tobacco at Richmond and Other Important Centres-Cotton and Farm Products-Peanut QuotationsMiscellaneous. NEW YORK, Nov. 11.-Money was strin. gent throughout the day, and closed at ½ of one per cent. per diem in additional to the legal rate. The lowest was 15. Exchange closed steady posted rates, 4801/20 4851/2 : actual rates, 4791/2479% for sixty days, and 484%@4% for demand. Governments closed steady currency 6's, 113 bid ; 4's, coupons, 123 bid 41/2'8 do., 104 bid. There was a general and important upward movement in stocks this morning which was entirely due to the improvement Oi the financial aspect in London. Early private cables announced that 2,500,000 pounds of gold were on the way from the Continent to the Bank of England, and that confidence on the London Stock Exchange had consequently to a large extent been restored. Money there was easier. and the early London prices for American stocks before the opening of this market were all from 1½ to 3½ points higher than the closing figures last night. Of course these favorable advices had a wholesome effect on this morning's market, and at the opening prices were firm and in the first hour, although the market was extremely wild and irregular, prices advanced 1 to 21/4 per cent. Lake Shore, Northern Pacitic preferred and North American were exceptions, declining, respectively, 1½, and 5% per cent. The transactions of the first hour were on an enormous scale, and the largest morning's business in years was done by noon, fully 485,300 shares changing hands up to that hour. At 11 o'clock there was another slump in prices, but the weakness was only of short duration, and about 11:30 prices began advancing again. At noon they were up 1/4 to 4½ per cent., the latter in Sugar Trust which was very firm on the announcement of the appointment of the receivers. The weakness in the half-hour to 11:30 was due chiefly to the announcement of the suspension of C.M. Whitney & Co., bankers and brokers, which was made on the Stock Exchange about 11 o'ciock. Twelve hundred shares for their account were sold under the rule. The recovery and advance of the forenoon was turned into another panic and large declines in the afternoon in consequence of the continued heavy selling and decline of Northern Pacific and North American.

6. November 12, 1890 New-York Tribune New York, NY
Article from New-York Tribune, November 12, 1890

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STATEMENT FROM THE WHITNEY BANK. New-Orleans, Nov. 11.-In answer to an Associated Press inquiry the Whitney National Bank has issued the following statement with reference to the Whitney failure at New-York: "The president and directors of the Whitney National Bank officially state that the suspension of C.M. Whitney & Co., of New-York, only affects the Whitney National Bank to the extent of $235 61. The Whitney Bank are not now, nor have they ever been, directly or indirectly, interested in the firm of C. M. Whitney & Co., or their transactions. A small complimentary account has been kept with C. M. Whitney & Co., the National Bank of Commerce being the New-York correspondent of the Whitney National Bank." C. M. Whitney is a large stockholder in the bank, which, although comparatively a new one, has been one of the most successful here. Mr. Whitney is also interested in the Whitney Iron Works and Baker, Sloo & Co., & large saddlery firm, but both concerns claim that they are not affected by the failure.

7. November 12, 1890 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 12, 1890

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Charles M. Whitney & Co. Suspend. NEW YORK, Nov. 11.-Charles M, Whitney, a prominent member of the stock exchange has suspended. Charles M. Whitney & Co., represent here the Whitney National bank of New Orleans and some other southern financial institutions. The firm was composed of Charles M. Whitney, Edward S. Larcher and Frank M. Larcher. The assignment was made to George W. Quintard. There is a preference in favor of Maria Louisa Whitney as guardian of Morgan Whitney to the full amount of her claim, which is not stated.

8. November 27, 1890 The Morning Call San Francisco, CA
Article from The Morning Call, November 27, 1890

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EMBARRASSED FIRMS. Failure of a Minneapolis Banking-House. Whitney & Co.'s Assignment. MINNEAPOLIS, Nov. 26.-A dispatch from Duluth says the banking-house of Bell & Oyster has failed; liabilities, $715,000; assets, $1,200,000. The bank was on the bonds of Forrestal Bros., St. Paul contractors, who failed a short time ago. This led to distrust, weakened the credit of the bank, and made it impossible for it to secure cash to meet accruing obligations. The bank announces that all deposits will be met in full. The bank's attorney said to-night the failure was occasioned simply by the line of discounts and rediscounts which the bank was carrying proving too large for times of such extreme financial stringency. Bell's West End Bank is also closed. WEST SUHERIOR (Wis.), Nov. 26-As a consequence of the failure of the bank at Duluth, there was a run on the Bank of Commerce here to-day, and depositors drew out $30,000. Other banks came to the assistance to-night, and confidence is restored. NEW YORK, Nov. 26.-A statement in the assignment of O. M. Whitney & Co., made to-day, shows the liabilities to be $5,235,000, and assets $4,124,000. The statement adds: "About $3,300,000 of the liabilities are secured by debts owing by bankers." The largest creditor is Mrs. M. L. Whitney of New Orleans. About $1,900,000 is practically unsecured. The assets may be largely. increased by the sale of securities belonging to the firm upon which it is impossible to put a value at present. CHICAGO, Nov. 26.-Charles E. Johnson this noning turned over to the Jennings Trust Company, as assignee of the Prettyman Bank, all the securities, documents and combinations of the safes of that institution. GUTHRIE (Oklahoma), Nov. 26.-The Sheriff now in charge of the Commercial Bank is taking an inventory of the assets. The creditors are trying to break the assignment, claiming it was bogus and made for the purpose of covering up fraud. which was undoubtedly perpetrated. According to the Sheriff, the cash in the vaults does not exceed $5000. ANTWERP, Nov. 26.-The - failure of the banking-firm of Oostendorp is announced. Liabilities, $1,500,000. Theassets are largely land in the Argentine Republic.

9. December 3, 1890 The Enterprise Wellington, OH
Article from The Enterprise, December 3, 1890

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MEET." HHL JO SMIN Gathered from All Quarters. DOMESTIC. DURING October past 46,267 immigrants came to this country, against 6881 October's up 180'68 18 u.ruq grain RUSSELTIS 'H 'O Da mej B peurnq SUM 1 nights ago. Two unknown men and a dozen horses perished. CHARLES S. JOHNSON, assignee of Prettyman's bank and the North Division Lumber Company at Chicago, has been deposed. and the Jennings Trust Company has been appointed in his stead. It was suspected that Johnson was interested in theaffairs of the bank. AT Milwaukee, Wis., on the 25th William Clark, owner of the electric light plant, was knocked down by two B JO robbed pus modep eur Jueu uour sachel containing $19,000. RICHARD H. ALLEN & Co., bankers and commission merchants of New York, 'H Hasuk 01 2574 eqt uo pen.Spsse Liabilities are estimated at $1,000,000. eqf up ano broke are 8 2554 ent NO lumber piles on the Cheboygan (Mich.) Lumber Company's docks. A heavy gale was blowing and before the flames were controlled about 12,000,000 feet of lumber, together with tramways, docks, etc., were destroyed. Loss, $200,000; insurance $30,000. CHARLES WEBSTER, or Crumley, the actor, who shot and killed Robert McNeill in New York some time ago, because of the latter's attentiveness to Webster's wife, has been sentenced to seven years for manslaughter. IN the United States District Court at Portland, Ore., on the 25th a decree was entered appointing a receiver for the Oregon Improvement Company. THE death warrant of Smith, the Allegheny County (Pa.) murderer, who is now in an insane asylum, hasbeen withdrawn by Governor Beaver. THOMAS RALL, of Floral Park, L. I., was killed and Alfred Alchin, of Peekskill, N. Y., was seriously injured by being struck by a train on the Long Island railroad, while walking on the tracks near Floral Park on the 25th. IN the United States Circuit Court at -I°N espnf 2374 out uo Minual Pault 7S check out 04 decision e релериел uos that the Minnesota State law prohibitoriginal uş jo Sup packages was in conflict with the commercial clause of the Federal Constitution and therefore void. out uo collision out JO 0800 the NI Delaware, Lackawana & Western railup 'g November uo Syracuse seef PROP which four persons were killed, the New York State Board of Railroad Commissioners finds that Michael A. Clark, the telegraph operator, caused the accident; that the officials were in fault in employing a youth only seventeen II" that recoments pue 'eSe JO Tears switches be kept locked. THE exports of merchandise from the United States during October past were '916'952'86$ 18 in October, 1889. Imports during the same period were valued at $72,604,751, against $68,749,155 in October. 1889. SECRETARY WINDOM has directed that the revenue cutter now being built at Baltimore for service on the Texas staeqf решеи eq uom uo SEM Chicago JO 'SHIS R GEORGE mails #47 Sujen JO contriction 2574 equal for illegal purposes. Sims did a large -IP 10 secreep not deeting up business ehe 04 Attantic 041 more e[dood 04 90JOA Pacific coast, purporting to have been issued by the probate court of Box Elder his up punoj seal 1a V TO County office constituted his stock in trade. 18 beach out uo dn probed V Marblehead Neck, Mass., a few days which uo paper JO stip e contained ose was the following: "Foundered at seabark Water Witch, September 15, '90. Forward to 12 Bow street, London. Adrift in a boat-ten lost." THE strike of the freight conductors and brakemen on the Chicago & Eastern declared 2516 eqf uo SEM PEOJ Inlinois -O.I spueq II" pus strikers ehe sq No turned to work. THE liabilities of C. H. Whitney & Co. of New York, who made an assign. 48 peaced are 'ore stay Mej e quour $5,235,2 and the assets at $4,124,112. 7In 4728 eqf uo """d" Green LV Joseph Ford, a colliery engineer, quarreled with his wife and struck her, tous uos PIO his Tatally min 4728 out uo "X N 'IIIH Spung Nava ult. Frank Oatman and Cliff Bentley, nine and eleven years old respectively, were struck and killed by a train on the Delaware & Hudson branch railroad. Powers eqf up 71" 2774 the uo зны V Dry Goods Company's buildings at St. Paul, Minn., caused $150,000 damages to the company. Fully insured. JESSE HOUCHINS, a notorious countersię 18 peq his up arrested SEM Felter home in Oakland City, Ind., on the 27th ult. by United States officers. Some counterfeiting tools were found in his possession. W. B. WEEKS, ex-treasurer of Greeley County, Neb, has been arrested for embezzlement. ED HERBERT and four Swedes who were out sailing near Bayfield, Wis., a few days ago, were probably drowned, *Snq B &q dn SUM two their se THE steamboat T. P. Leathers, bound from Lakeport, Miss., for New Orleans, Address 74 near erg sq destroyed SUM Miss., on the 27th ult. The chamber maid and four roustabouts, all colored, were lost. 710 4728 the uo ""I Attantic LV three children named Fred Hawley and Millard and Fred Falty were playing in "u" Card 71 ueqm '71d pues descrited e When taken out all the boys were dead. 710 4728 ent uo ""Ed" LV TRE e IIIM 04 the mille Mitter, fatally shot Meade Walker. aged seven

10. January 22, 1891 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 22, 1891

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ternoon reported favorably upon the bille authorizing the Boston & Maine Railroad Co. to increase their capital stock $5,000,000, and the Concord & Montreal, $3,000,000. Business Troubles. NEW YORK, Jan. 91.-The Corona Marble Company quarries at Brandon has asked its creditore for an extension. The company virtually consists of Charles M. Whitney & Co., bankers and brokers. who failed about six weeks ago. Liabilities about $30,000. Isaac Rich and D. W. Robinson, of Bradford, Pa., who obtained credit for about $100,000 worth of boots and shoes from Little, Maxwell & Co. of Boston and other firms, sold out and decamped with the proceeds. They were arrested at Hamilton. Ontario, Wednesday. They were going to England with their wives. An attachment for $5001 was granted by Judge Lawrence of the Supreme court ugainst Chas S. Higgins & Co., soap manufactures. and Herace K. Thurber, in favor of the Suffolk National Bank. Boston. McLachlan Bros. & Co. of Montreal have assigned. Liabilities over $700,000. MONTREAL, Jan. 91.-Gilmore, Lindeay & Co. have failed. Liabilities, $225,000.