Central Park Savings Bank (New York, NY)

Episode Information

Episode UID
7057387990929
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
705738799 hash
Start Date
May 8, 1877
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
a22cb589dd06f522

Response Measures

None

Description

Multiple articles describe insolvency and appointment of a receiver and subsequent litigation; no reopening reported.

Events (2)
1. May 8, 1877 Receivership
Newspaper Excerpt
the now insolvent Central Park Savings Bank ... suits brought by Isaac V. Freuch, the receiver of the Central Park Savings Bank
Source
newspapers
2. December 17, 1878 Other
Newspaper Excerpt
Receiver French ... has begun paying his final dividend out of the assets of that institution (debated in correspondence)
Source
newspapers

Newspaper Articles (10)
1. May 8, 1877 The New York Herald New York, NY
Article from The New York Herald, May 8, 1877

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Article Text

PARK CENTRAL SAVINGS BANK. Two suits, of considerable interest to the patrons of savings banks, especially those of the now insolvent Central Park Savings Bank, were on the calendar of Part 1 of the Supreme Court for trial yesterday, but were not reached. They are suits brought by Isaac V. Freuch, the receiver of the Central Park Savings Bank, each being to recover $20,000, against Thomas Gearty, the President, and the trustees of the bank. The grounds on which it is sought to recover this sum are that the defendants conducted the affairs of the bank improvidently in two instances- one, in buying lots adjoining that on which they erected the bank building. which were not necessary for the purposes of the bank; the other, in erecting a building unnecessarily expensive for the purposes of the building and at a time when the funds of the bank would not warrant it. By these operations It is alleged that a loss ensued to the bank in the depreciation of the property and loss of interest to the extent sought to be recovered against the defendants. The suit is prosecuted by Barlow & Olney, the defendants being represented by Messra. Browne & Rabe, Lauterbach & Spingarn and Wakeman & Latting.

2. May 10, 1877 New-York Tribune New York, NY
Article from New-York Tribune, May 10, 1877

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CIVIL NOTES. A suit has been begun by Andrew H. Gonfand against Constance C. Trust and others to settle the (itle to the estate of the late Dr. Gouraud, formerly Trast whose two wives and three children dispate it. In this suit a temporary injunction has been granted against Charles R. Paratt, Han. nah Parfitt. and .. Martha B. Tompkins, styling herself Gour. aud," restr ining them from disposing of the real estate and other prop city. In the suit of S. B. French, receiver of the Central Park Savings Bank, against its trustees for damages for buy. ing four lots of land for a bank building when only one was needed, and buying it when the bank business did not war. rant such a purchase, as the total deposits were less than the purchase price of the land, a motion was prade yesterday to district the complaint on the ground that the officers diad a right to buy a lot for 8 bank building, and as all the lots were sold as one parcel, it must be considered as a purchase of a lot for a lawful purpose. Judge Donohue reserved his decision. The appeal in the suit of Adelaide M. De Lavalette against the executors of John M. Peyser was argued yesterday in Sui reme Court, General Term. Mr. Peyser engaged board for himself and his family at the plaintif's house on Nov. 1. 1800. for $1.0 a week: three weeks Inter he went away. The rooms were vacant some weeks, and then were let at a lower rent to another person. Mr. Peyser had paid Mrs. De Lavalette $985 71, but she claimed that she was entitted to his board upto May 1. 1877. less what she go: from the otherboarder Under this rate the lury gave her a Verber for $2,124. T defendants appeal, claiming that the true rule was the less of profits only to the plaintiff. The court reserved its decision.

3. May 10, 1877 The New York Herald New York, NY
Article from The New York Herald, May 10, 1877

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Article Text

THE COURTS. Continuation of the Central Park Savings Bark Trial. A TRIPLE ALLIANCE AND ITS CONSEQUENCE. The Proposed Abolition of the Marine Court. The case of the Receiver of the Central Park Savings Bank against the President and trustees of the bank, the facts of which have already appeared in the HERALD, was continued on trial, before Judge Donohue and a jury, in Part 1 of the Supreme Court, yesterday. After some additional testimony in relation to the action of the trustees in the purchase of the lots adjoining at the same time they purchased the lot on which the building was erected, Mr. Anderson, on behalf of the numerous counsel representing the defendants, made a motion for a nonsuit on the testimony which had been submitted on behalf of the plaintiff. This he urged on the ground that it appeared from the testimony that at the time of the purchase of the lots the bank was solvent, having assets equal to its liabilities; that not being a moneyed corporation they had to use the deposits for the purpose of providing a bank building as authorized by the charter; that they were authorized to purchase a lot, which they did, and that the title to the other lots was never vested in the bank, but only in the trustees, and no loss having been made by the negligence of the trustees, but only through the depreciation of real estate subsequent to the fall of 1873, they could not be held guilty of fraud or criminal negligence, but, if of anything, only improvidence. In opposition to the motion General Barlow contended that the evidence showed a violation of the law in having invested in real estate to an amount beyond that necessary for the business uses of the bank, and in this violation of their charter they had made themselves liable for the loss resulting therefrom. Judge Donohue held the motion under consideration until the opening of the Court to-day. The experts who had been examined on behalf of the plaintiff as to the loss resulting from the depreciation of the real estate differed considerably in their estimate, their calculations varying all the way from ten to thirty-five per cent.

4. June 22, 1877 The New York Herald New York, NY
Article from The New York Herald, June 22, 1877

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PARK CENTRAL BANK. SAVINGS Recently, on the application of Messrs. Rabe & Brown, counsel for the trustees of the Central Part Savings Bank in the suit brought against them by Mr. French, the receiver, Judge Westbrook rendered a do cision that the trustoes (in whose favor the suis 10. sulted) were each entitled to a separate bill of costs. Yesterday Mr. Otney, counsel for the receiver, ap. peared before Judge Donobue in Supreme Court, Chambers, and asked for an order directing that all these bills of costs be taxed in one judgment roll, so that one appeal. which be intended to tuke, might cover both the decision of the Court on the merits of the case and the allowance of separate costs. Judge Donotiue said he would make an order that all the defendants tax their costs in one judgment within a specified time, and those failing to.do so would be considered as baving waived their rights in the matter. This, be said, would be done so as 10 allow Mr. Olney to take his appeal from the judgment by Monday next.

5. April 2, 1878 New-York Tribune New York, NY
Article from New-York Tribune, April 2, 1878

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REVERSING A SAVINGS BANK DECISION. In the suit of Isaac V. French, receiver of the Central Park Savings Bank against Joseph E. Redman and nine other trustees, the Supreme Court. General Term, Judge Brady giving the opinion, has reversed a judgment at Circuit nonsuiting the plaintiff. The suit was to recover the loss incurred by the purebase of the lots, on one of which the bank building was erected. This purchase was made in 1873, and there was no proof that at that time the price paid was not fair, and on that ground the complaint was dismissed. Judge Brady. however, holds that in view of the fact, that the bank was not at the time of the purchase a success, that for three years previous its payments had exceeded its income, it should have been left to the jury to say whether the purchase was justifiable or a speculation or such a lack of judgment as to make the trustees liable. Francis C. Barlow appeared for the plaintiff; E. E. Anderson for the defendants.

6. April 25, 1878 New-York Tribune New York, NY
Article from New-York Tribune, April 25, 1878

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CIVIL NOTES. Judge Potter, in Supreme Court, Chambers, referred yesterday the divorce suit of Agnes Matilda Fitzgibbons, married November 2, 1875, to James Rockwell Walter Franklin Fitzgibbons, to Ira B. Wheeler. Chief-Justice Daly, in Common Pleas, Special Term, appointed, yesterday, Walter Schreiber committee of the person and estate of his father, Thomas Schreiber, adjudged to be a lunatic. The estate is said to be worth $35,000. Vedder Van Dyck, receiver of the Yorkville Savings Bank, sued Francis J. Twomey on a bond for $4,000, given by him to the bank. Judge Sedgwick, in Superior Court, Special Term, has denied the defendant's motion to compel the plaintiff to file security for costs. James W. Duer and Lawrence D. Kiernan, executors of the will of James Kelly, who died in 1874, and left most of his property to charitable institutions, applied yesterday to Judge Donohue to pass their accounts, and for instructions as to what amount they should reserve to meet certain annuities. Judge Donohue referred the matter to Philo T. Ruggles. Lesser Goldstein, as administrator of his child Solomon, sued the city for $5,000 for causing the child's death. On June 6, 1876, the child, about six years old, was crossing the Harlem bridge and his head and hand were cut off by the swinging of the draw. The jury in Common Pleas, Trial Term, before Judge J. F. Daly, gave the father yesterday a verdict for $1,375. H. W. Bookstaver appeared for the plaintiff; Charles Miller for the defendant. Isaac V. French, as receiver of the Central Park Savings Bank, has sued Thomas Gearty, a former trustee, for eleven dividends declared by the bank when it had not profits to make dividends, and to vacate a mortgage for $11,500 on the bank building, given to Gearty in part payment for constructing it. Judge

7. December 21, 1878 New-York Tribune New York, NY
Article from New-York Tribune, December 21, 1878

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A POOR DEPOSITOR'S COMPLAINT. To the Editor of The Tribune. SIR: Under the head of New-York City News in your journal of this date appears an announcement that "Receiver French, of the Central Savings Bank," has begun paying is final dividend out of the assets of that institution. As find that this has misled me, I wish that others may not be equally misled, and therefore request you to say in your next issue what I believe are the facts, viz.: that the full title of said bank is the Central Park Bank: that no dividend out of its assets either has been paid or is paving by Mr. French or any one else; that Mr. Freuch's office is at No. 47 William-st.; that he is now engaged in prosecuting smts against some of the trustees of said bank for unlawful use of the money which we poor people unfortunately deposited therein; and that the progress of those suits is extremely slow. I for one, despair of ever receiving a cent, and I have no Winter coat, and lack many other A POOR DEPOSITOR. necessaries as well. New- York, Dec. 17, 1878. [The title of the bank on which a final dividend is being paid is the Central Park Savings Bank, of which Isaac T. Smith is receiver.-Ed.)

8. February 12, 1879 New-York Tribune New York, NY
Article from New-York Tribune, February 12, 1879

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CIVIL NOTES. In the divorce suit of Catharine Weis against Balthasar Weis, Chief-Justice Charles P. Daly, in Common Pleas, Special Term, has ordered a reference to H. M. Hoyt. The General Term of the Supreme Court, IId District, has ordered a new trial in the suit of Mary R. Conger for an absolute divorce from Abraham B. Conger, in which judgment for the defendant was rendered by the lower court. The case 1s well known. Mr. Conger was for many years a wealthy resident of Orange County. He was accused by his wife of having improper relations with the wife of the pastor of a Presbyterian church which he built near his residence. Isaac V. French, receiver of the Central Park Savings Bank, sued Joseph E. Redman and the other trustees of the savings bank for $20,850. The receiver claims that the bank, doing a very small business on about $70,000, bought four lots, on one of which they put up an expensive banking-house, selling the others at a loss, the whole loss being the amount of the claim. Judge Donohue, on the first trial of the suit, held that in the absence of positive proof of bad faith in the trustees, the action could not be maintained. The General Term reversed this decision, and the second trial is now pending before Judge Van Brunt, in Supreme Court, Circuit.

9. February 25, 1879 The New York Herald New York, NY
Article from The New York Herald, February 25, 1879

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ISAAC VANDERPOEL FRENCH. Mr. Isaac Vanderpoel French died in this city on last Saturday. The deceased gentleman was a lawyer by profession, and well known as u receiver and referee in several insurance and savings banks cases. He was the son of General French, and a native of Albany. Judge James Vanderpoel, of Albany, was a relative of Mr. French on the mother's side, and Mrs. Van Buren was his aunt. He died of pneumonia, after a week's sickness, contracted in the new Court House at the time when he obtained a heavy verdict in his favor as receiver of the Central Park Savings Bank.

10. March 7, 1880 New-York Tribune New York, NY
Article from New-York Tribune, March 7, 1880

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RESPONSIBILITY OF TRUSTEES. THE CENTRAL PARK SAVINGS BANK REAL ESTATE INVESTMENT. The decision of the Supreme Court, General Term, which has just been handed down in the suit of Marcus T. Hun, as receiver of the Central Park SavHaga Bank, against John T. Cary and other trustees of the bank 18 important as limiting the powers of such trustees in certain instances. The defendant trustees bought a number of open lots on Third-ave., paying therefor $71,500. Subsequently they sold a portion of the property for a sum sufficient to make the cost of that which remained $29,250, and upon this latter property the trustees built the bank building. After the bank became insolvent the receiver brought the suit to recover this $29,250, charging that the defendants were guilty of derelletion of duty in expending so large a sum of money in real estate on which to build the bank building, and that they had thus abused the power in their hands Judgment was recovered in Circutt in favor of the plantiff The General Term sustains the judgment. Justice Barrett. who writes the opinion. says that under the circumstances this was an extraordinary transaction. To talk of is as an error of judgement 18 idle. It BHOWS the heighth of imprudence and indicates a rash and speculative spirit. Some of the trustees pleaded bankruptcy, The General Term holds that this does not relieve them from the Hability, 10 being for unliquidated damages arising from tort. The judgment, however, is reversed as to Philip Smith, one of the trustees who was not present at the meeting when the action in ques. tion was taken.