Kenyon, Cox & Company (New York, NY)

Episode Information

Episode UID
6832774590885
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
683277459 hash
Start Date
September 13, 1873
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
c44c2d71fccfa718

Response Measures

None

Description

Suspension on Sept 13, 1873 followed by assignment and bankruptcy proceedings in October 1873.

Events (3)
1. September 13, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large advances/indorsements to the Canada Southern Railway and related railroad paper becoming due; inability to negotiate more bonds in London.
Newspaper Excerpt
Kenyon, Cox & Co., bankers and brokers, Wall street, suspended to-day.
Source
newspapers
2. October 14, 1873 Other
Newspaper Excerpt
A petition in bankruptcy filed against Kenyon Cox & Co.; firm alleged to have suspended payment on Sept. 13, 1873 and not resumed for fourteen days (petition filed Oct. 14 reports proceedings).
Source
newspapers
3. October 28, 1873 Other
Newspaper Excerpt
Assignment of the real and personal property of Kenyon Cox & Co. to Wm. L. Scott for the benefit of creditors (deed of assignment dated Oct. 28, 1873).
Source
newspapers

Newspaper Articles (13)
1. September 13, 1873 Gold Hill Daily News Gold Hill, NV
Article from Gold Hill Daily News, September 13, 1873

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EASTERN DISPATCHES. [SPECIAL TO THE GOLD HILL DAILY NEWS.] DOMESTIC INTELLICENCE Failure of a Banking House-Specie Shipments. NEW YORK, Sept. 13.-Kenyon, Cox & Co., bankers and brokers, Wall street, suspended to-day. Daniel Drew was special partner in this house, it is said, and rumor has it that the difliculties of the firm were caused by operations in the interest of Drew. The specie shipments to-day were $114,340 in silver bars. Fearful Suffering on a Slaver-Cap ture of the Vessel. A London dispatch has been received at the Admiralty office from the commander of the British steam sloop Daphne, announcing the capture in the Indian Ocean, near the Seychette Islands, of a slave ship, upon which there had been horrible suffering. The small pox had raged on the ship, and out of 300 slaves taken on board, 250 died, and the remaining 50 were terribly emaciated from disease and want. Fall of the City of Mexico-Anniversary Festivities. The President and other high dignitaries are expected to be present at Monday's celebration here of the anniversary of the fall of the City of Mexico. Delegations from New Enggland, New Jersey, Pennsylvania, the Western and Southern States have promised to attend. The festivities of the day will be closed by a parade and grand dinner. Suit Against the Pacific Mail Steamship Company. NEW YORK, Sept. 13.-Aaron Freeman, who failed to get the Pacific Mail Steamship Company to bring a suit in his interest against Alden B. Stockwell, late President, has begun proceedings himself, and made the old Board of Directors of the company defendants. Freeman in his complaint charges that In January or February Stockwell, while acting as President of the Pacific Company, unlawfully appropriated to his own use 9,500 shares of Panama Railroad Company, which were the property of the Pacific Company, and that he loaned $565,000 of the company's money to Frank C. Markham on securities which proved to be nearly if not utterly worthless, with the intention that Markham should use it for their common advantage.

2. September 14, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, September 14, 1873

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NEW YORK. Specie Shipments. NEW YORK. September 13.-The specie shipments to Europe for the week amounted to $510,000. Bank Statement. Loans decreased $3,838,000; specie decreased $1,324,700; legal tenders decreased $1,962,700; deposits decreased $5,455,400; circulation increased $27,900. The Suspension of Kenyon, Cox & Co. Only 3600 shares were sold out under the rule today, for account of Kenyon Cox & Co. The cause of the failure has been the large advances to the Canada and Southern railroad, some of which are now beginning to fall due. Kenyon Cox, Daniel Drew and others have loaned their paper to assist in completing the road. trueting to further ne[CONTINUED ON RIGHT

3. September 14, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, September 14, 1873

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FROM NEW YORK. MONEY RETURNED. NEW YORY, September 13.-C. A. Kiep & Co., bankers and brokers, who were a fortnight ago robbed of $80,000 in gold notes, bonds, and currency, by a young man in their employ, have had nearly the whole amount returned through friends of the embezzler. The small amount withheld was spent in travelling expenses. SUSPENDED. Kenyon, Cox & Co., bankers and brokers in Wall street, suspended to-day. Daniel Drew was a special partner in the house, it is said, and rumor has it that the difficulties of the firm were caused by operations in the interest of Drew. The stock business of Kenyon, Cox & Co., was not the cause of the suspension, as they were carrying very few stocks compared to their usual compliment. Only 3,600 share were sold out under rule to-day, and of this Lake Shore sold at 91@91jc. The real trouble has been large advances to the Canada Southern railroad, some of which advances are now beginning to fall due. Messrs. Kenyon, Cox, Daniel Drew and others, it is understood, loaned their paper to assist in completing the road, trusting to further negotiations of bonds at London. Last Monday advices were received from London stating that it was impossible, at present, tito negoate more bonds, and aconsultation was held by parties in the interest of the Canada Southern, and Kenyon, Cox & Co. resolved to suspend. The decline in Wabash this afternoon was based on the supposition that that firm and its friends were large holders of the stock, but it appears that they have been relieving themselves for some time past and hence there was, comparatively speaking, but very. little stock sold.

4. September 14, 1873 Carson Daily Appeal Carson City, NV
Article from Carson Daily Appeal, September 14, 1873

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NEW YORK, Sept. 13.-Kenyon, - Cox & Co., bankers and brokers, Wall street, suspended to-day. Daniel Drew was special partner in this house, it is said, and rumor has it that the difficulties of the firm were caused by operations in the interest of Drew.

5. September 20, 1873 The Superior Times Superior, WI
Article from The Superior Times, September 20, 1873

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THE FINANCIAL CRASH. By telegrains in the St. Paul p:1pers of yesterday, we learn that the suspension of Jay Cooke & Co., on the 18th at Philadelphia, New York and Washington, was followed by that of E. W. Clark & Co, of Phil adelphia, Kenyon, Cox & Co., Fisk & Hatch, R. Schell and other prominent banking houses of New York. Fears are entertained of a general financial crash, and we await further news with anxiety.

6. September 20, 1873 The New North-West Deer Lodge, MT
Article from The New North-West, September 20, 1873

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Miscellaneous. aldalogo Philadelphia, September 17.-A large fire is now in progress here in Jessup & Moore's paper and rag warebouse, corner 6th and Arch Streets. Titusville, Sepetmber 18.--Discovery has been made in lower district of fourth sand rock which promises to be more prolific in petroleum than either of the formerly producing strats. Grand Haven, Mich., September 16.Nineteen dend bodles of the passetigers and crew of the ill-fated propeller, Ironsides, have been recovered. Thirty are known to be saved, and two more are missing. New York, Sept. 13.-Kenyon. Cox & Co. bankers and brokers, in Wall street, suspended to-day. Daniel Drew was s special partner in the house.

7. September 20, 1873 Clarksville Weekly Chronicle Clarksville, TN
Article from Clarksville Weekly Chronicle, September 20, 1873

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NEW YORK, Sept. 13.-Kenyon, Cox & Co., bankers and brokers, Wall street suspended to-day. Daniel Drew was a special partner in the house. The real trouble has been large advances to the Canada and Southern railroad, some of which are now beginning to fall due. Messrs. Kenyon, Cox, Daniel Drew and others, it is understood, loaned their paper to assist in completing the road, trusting to further negotiation of bonds at London. Last Monday advices were received from London stating that it was impossible at present to negotiate more bonds.

8. September 25, 1873 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, September 25, 1873

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PERSONAL. Governor Booth was given an enthusiastic reception in San Francisco on the 13th., As he arrived from the capital he was greeted with a perfect ovation, and thousands of people assembled at the boat landing with music and transparencies, and bonfires were kindled on Telegraph Hill. The houses along the line of the procession were briiliantly illuminated. He was escorted by an enthusiastic multitude of people to the Grand Hotel, where he made a speech congratulating the people on their complete victory over railway monopoly. The Committee having charge of the coming re-union at Toledo, Ohio, of the Army of the Tennessee, have received letters assuring them that the President, the Secretary of War and General Sherman will be present at the meeting. Kenyon, Cox & Co., bankers and brokers in Wall street, New York City, suspended on the 13th. Daniel Drew was a special partner in the house, it is said, and rumor has it that the difficulties of the firm were caused by operations in the interest of Drew. Professor Wise has published a card defending his theory of an eastern air-current, and announcing his readiness to start for Europe at any time in a gas-tight silk balloon. He also censures the attempts to turn a great scientific experiment into an enterprise for money-getting. Meantime the Graphic people

9. October 14, 1873 The New York Herald New York, NY
Article from The New York Herald, October 14, 1873

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DANIEL DREW IN THE COURTS. Charges of Fraudulent Insolvency Made Against the Old Commodore-A Petition in Bankruptcy Filed Against Kenyon Cox & Co.-Daniel Drew involvedMore Light Wanted. William L. Scott, of Erie, Pa., has filed in the United States District Court a petition in bankruptcy, alleging that he is a creditor of Daniel Drew, Kenyon Cox, William H. Hutchinson and Horace Manuel, doing business under the firm name of Kenyon Cox & Co., and he prays that this firm be adjudicated bankrupts. The amount of Mr. Scott's claim is $6,183, for balance of money due on deposit with Kenyon Cox & Co., and the allegation respecting the same is, that the firm in question suspended payment of their commercial paper on the 13th of September, 1873, and did not resume payment of the same for a period of fourteen days. On the 16th of September, as stated in the petition, Kenyon Cox & Co., iraudulently suspended payment of a draft drawn upon them by the petitioner, and payable to the order of Messrs. J. E. Caldwell & Co., for the sum of $270 75; that on the 18th of September, the said firm of Kenyon Cox & Co., being bankers, stopped the payment of a draft drawn by M. H. Taylor, Treasurer of the Canada Southern Railway Company, dated July 14, 1873, for $8,084, and accepted by Kenyon Cox & Co. on July 21, 1873; that on the 20th day of September, 1873, Daniel Drew (as the petioner is informed and verily believes) did, in contemplation of bankruptcy or insolvency, execute and deliver four certain mortgages for $70,000 each-one to Louisa R, Edey, one to Georgiana Everett, one to Josephine Cozzens, and one to Antoinette Cozzens-all payable upon demand and upon real estate in this city; that the mortgages in question were given with intent to give a preference to the mortgagees, and with the intent by such incumbrance of Mr. Drew's property to defraud his creditors and deleat and delay the operation of the Bankruptcy act. The petitioners want more light thrown on the matter. Upon: this petition Judge Blatchford has granted an order returnable on Saturday next, the 18th inst., calling upon Kenyon Cox & Co. to show cause why they'should not be adjudicated bankrupts.

10. October 14, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 14, 1873

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DANIEL DREW'S TRANSFERS. AN ATTEMPT TO THROW KENYON COX & CO. INTO BANKRUPICY. William L. Scott of Erie, Pa., has filed, in the United States District Cours, a petition asking that Daniel Drew, Kenyon Cox, William H. Hutchinson, and Horace Manuel, doing business under the firm name of Kenyon Cox & Co., be adjudicated bankrupts. The petition alleges that that firm owes him 3.183 60 for 'balance of money due on deposit with the firm of Kenyon Cox & Co.," and is in substance as follows: The firm did, on Sept. 13. 1873, suspend payment of its commercial paper, and did not resume payment thereof for a period of 14 days. On Sept. 16, 1873, the firm did fraudulently suspend payment of a draft drawn by the petitioner upon Kenyon Cox & Co.," and "payable to the order of J. E. Caldwell & Co.," for $270 75. On Sept. 18. 1873, "the said firm, being bankers, stopped payment of a draft drawn by M. H. Taylor, Treasurer of the Canada Southern Railway Company, dated July 14, 1876, for $8,094, and accepted by Kenyon Cox & Co." on July 21. 1873. On Sept. 20, 1873, Daniel Drew did, " as the petitioner is informed and verily believes," "in contemplation of bankruptcy or insolvency, execute and deliver four certain mortgages for $70,000 each; one to Louisa R. Edey, one to Georgiana Everett, one to Josephine Cozzens, and one to Antoinette Cozzens, all of said mortgages being payable on demand and being upon real estate in this city." The mortgages specified .. were given with the intent to give a preference to the mortgagees, and with the intent, by such incumbrance of his property, to defraud bis creditors, and defeat and delay the operation of the Bankruptcy act." Upon this petition Judge Blatchford granted an order, returnable on Saturday, requiring the firm of Kenyon Cox & Co. to show cause why it should not be adjudicated a bankrupt.

11. October 16, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 16, 1873

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DANIEL DREW. From the New York Sun, Oct. 14, A petition WAH filed iu the United States Diatrict Court on Saturday to Lave Daniel Draw adjudicated an involuntary baukrupt. Au injunetion was issued by Judgo Blatchford and surved on the millionaire speculator Joseerday, rostraining him from assigning or disposing of his property while the BILLE is pending. Tuo potitionor is Mr. William L. Scott, of Evio, Pa., a brotisor-in-luw of Johu F. Truoy, the railway maguate of Illiuois. The proceedings grow out of the suspension of the well-known Wall street banking firm of Kenyon Cox & Co., which hap. ponod a few weeks ago. Mr. Drew, it in said, was one of the general partners in the house, although it WAH claimed at the time that he was only a special partnor in it to the amount of 8100,000. The suspension was caused by the firm's having indored $2,200,000 of the bonds of

12. November 17, 1873 New-York Tribune New York, NY
Article from New-York Tribune, November 17, 1873

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PANIC SEQUELS. KENYON COX & CO'S ASSIGNMENT THE REAL AND PERSONAL PROPERTY OF THE FIRM ASSIGNED TO WM. L SCOTT-NAMES OF THE CREDITORS MR. DREW'S GUARANTEE AND SECURITIES FOR THE PAYMENT OF HALF A MILLION IN EIGHTEEN MONTHS. will be remembered that the origin of the recent It was attributed in part to the failure of Kenyon pauic Cox & Co., in which Dauiel Drew 18 a special part and the embarrassments of the Canada Southern ner, Railway Company, with which enterprise Mr. Drew and Kenyon Cox & Co. were identified, having indorsed a great deal of its construction paper. The street rang for a time with the failure of Kenyon Cos & Co., and it was freely asperted by some persons that their suspension was due to Mr. Drew' desire to manipulate the stock market for a decline. Soon after the failure of the firm of Kenyon Cox & Co., William L. Scott, a director in the Canada Southern, Lake Shore, and Toledo, Wabash and Western Railroads, began proceedings to place Daniel Drew and Kenyon Cox & Co. in bank ruptcy. After the case had come up for consideration several times it was finally settled, or at events withdrawn, and subsequently an assignment was made of the real and personal property of Kenyon Cox & Co. to Wm. L. Scott for the benefit of the creditors of the firm. A full copy of the deed of assignment is given below, from which it appears that the creditors agree not to bring any action against Daniel Drew on account of any claim against Kenyon Cox & Co. until the expiration of 18 months from the date of the assignment, or until he shall make default in his guarantee of $500,000, for which he has deposited securities and bonds and mortgages. THE ASSIGNMENT This indenture, made Oct. 28 1873, between the copart nership of KenyonfCox & Co. of New York. of the first part, and William L. Scott of Erie, Pa., with place of business at No. 13 William-st. New- York, of the second part: Whereas, the party of the first part is unable to meet its engagements, and possesse of and entitled to divers property and estate. desirous of assigning the same for the benefit of its creditors in the manner hereinafter provided for; Now, therefore, this indenture witnesseth that the party of the first part, in consideration of the premises and of the sum of $1 to it paid by the party of the second part, the receipt whereof is hereby acknowledged, hereby grants, bargains, sells, assigns, transfers, and sets over unto the said party of the second part and his successors, and assigns. all and singular, the partnership, property, and estate, real and personal whatever and wheresover of the said firm of Kenyon Cox & Co., including all the assets, stocks, choses in action. book accounts, notes, bills bonds, judgments, money, chattels, effects claims, and demands due, owing or belonging to the said firm of Kenyon Cox & Co., with all books, papers, and vouchers relating thereto. To bave and to hold, receive and take the premises hereby assigned unto the party of the second part, and his successors and assigus, in trust, nevertheless to and for and upon the several uses and purposes, and with the powers hereinafter mentioned and declared of and concerning the same, that is to say Upon trust to collect, receive, realize, convey, and dispose of, at public or private sale, all and singular said assigned premises, and to convert the same into money provided, however, that no sale of any of the assigned stocks or bonds shall be made within months from the date hereof without the six written consent of Daniel Drew or Samuel D. Babcock or their legal representatives re spectively, thereto first had and obtained, and if neither -half of them shall so consent, then about one of the said stocks and bonds may be sold, in the discre anv after time at successor, his assignee of the tion the expiration of the said six months: and provided also that no sale of the residue of the said stock and bonds shall made within one year from the date hereof without the like consent of said Drew Beb cock. or their personal representatives respectively thereto first had and obtained; and if neither of rest them shall so consent, then the said due of the said stocks and bonds may be sold. in the discretion of the assignee or his successor, at any time after the expiration of the said one year. and divide and distribute from time to time all the net proceeds which the said assignee his successor shall Ize from the said assigned estate to and atology the creditors of the said firm of Kenyon Cox Co. equally pro rata according to the amount of their respect ive claims and demands, including interest, therefrom all indorsements and acceptances of the said firm of Kenyon Cox & Co., given for the accomtoo dation of the Chicago and Canada Sou thern Railway Company, and of the Canada Southern Railway Detroit Com and of the do, Canada Southern, and Railway Company and also itthholding and retaining any and all dividends that will be coming to the said railway companies respective under the pro said visions of this assignment, until the and acceptances shall have been fully dorsements discharged or released by or through the said railway companies. And the party of the first part hereby consti second par tates and appoints the party of the its attorney or pound and his otherwise suecessors, agree with any debtor or debtors of where assigned. the said firm debts are hereby execute to and charact they are of a due releases t debtor or debtors the And the party of the second part hereby accepts acceptance him in and ereby trusts presents these by thereof apand the This ass ignment is made with the concurrence first who part the of party editore the hereto have s proval their names to the schedule hereby unnexed headed The foregoing assignment And is the concurred approved in of and insideration of $1 paid agree creditors, that they will not bring any action or take any against whate claim proceeding against Kenyon Cox & Co.,until the tion any of 18 months from the date Thereof. And the said siderat bis and himself DCC assignee of the promises for and one dollar to him paid, covenant and agrees that he not. such assignee comm Drew Daniel said proceeding any action any thing whatever until said Drew shall make default in his guarantee or agree ment noreto annexed. and agreed between the parties It is understood creditor party hereto, and that any hereto that air said Daniel Drew shall have the the parties hereto, to the books and time time right from of the sald firm and of the said assignee in the course actions of his administration, and all vouchers and papers In relating theret creof the said firm of Kenyon Cox & Co witness Kenyon Cox, Horae Manuel, and Wm. H. Hutchie and member DAVE hereunto set their hands son and Beals the day and year first above written. KENYON Cox & CO., KENYON Cox. HORACE MANUEL WM. H. HUTCHINSON, WILLIAM L. SCOTT. Bealed and delivered in the presence of ALVIN BURT, Witness ALFRED TAYLOR interlined interest" State New City and County of New York, ss. me 6th day November, in the year 1873, before came On this Kenyon Cox, Horace Manue and IL to me known to be three the individdescribed Hatchineon, who executed the foregoing in uais and severally eknowledged to the that they the executed strument same their individual act and deed, & the and deed of the firm Cox Co., and said William H H tehinson, being me duly sworn, and said that be resides in the city of Bi rooklyn, State New York,and that the signature Ken & Co. of said instrument was the signature of said firm, made thereof. by And,also,before a member me personal came William L Scott, to me known one of the indi viduals described and ac and executed the pregoing instrument wledged to me that he executed the same ALFRED TAYLOR

13. July 24, 1893 The Providence News Providence, RI
Article from The Providence News, July 24, 1893

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PANIC- 1873, CRISIS 1893 Two Periods Compared---Prices of Stocks and Causes. A $1,000,000,000 SHRINKAGE. Great Failures in 1873-Biggest Houses Sunk in a Few Days Time-Millions Went Up-Stock Exchange ClosedHeavy Gold Exports-Tremendos Decrease-Bank Business in New York. The values of stocks have shrunk in the past eight months over $1,000,000,000. Such a shrinkage has never been known even in the great panies of the last thirty years. The only available comparisons can be made with the panic of 1873. when riespair was the watchwor I when the Ne V Y rk Stock exch nge el sed and the strongest finan ial hous S in the country succu bed to the pressure Tot convulsion reached is beight in September, and at 11 a m. on the 20th of t e month. the president of he New York exc ange announced its b 1 ess' suspe det and forbade brokers 10 trade in stocks on argins or to carry on any dealings until further notice. 0; the 8th of the month the first warnir is came when tie Ne York Security & Warehouse Co. sank under is load of Missouri, Kansas and Texas. On the 13.h Kenyon, Cox & Co. were buried by the decline of Canadian Souther On the 18th, the firm of Jay Cooke & Co., which had been the greatest assistance to the government during the war, was enguifed with its load of Northern Pacific. The next day Fisk & Ha e. suspended, ov reome with Cherpeake and Ohio. On the 20th the Union Trust Co. closed its doors and on the 23d Henry Clews & Co. failed. Wreck alter wreck was reported. Prices of securities dropped. Rascality in the banks was discovered. Emb ZZ ement for sums as high as $500,000 were brought to light and generai demoralization prev tiled. Gold at Premium. Gold was then a commodity. It was at a premium and had been si: ce 1862. July 11, 1864, the price of gold was $2.85. But it had decilued until 1873 when the average price WAS $1 12. During the panicky months of 1873 the value of regbacks dropped from 89 to 84 cent. The general caus 8 of tue panic of 1873 were inflated and fluctuating currency, excessive railway building speculation in real estate in the west, and heavy gold exports. La 1873 the net exports were $63000,000. The tollowing are quotations of some of the stocks on the exchange, the first being the highest in the year 1873. the next the price immediately preceding the panie, and the last the prices tue d y the exchange closed.