Union Bank (New York, NY)

Episode Information

Episode UID: 7709308891297
Episode Type: Suspension → Closure
Bank Type: state
Bank ID: 770930889 hash
Start Date: January 29, 1908
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: 080ef09ff96d641f

Response Measures

None

Description

Bank operated in Brooklyn (borough of New York); state superintendent took possession in 1910.

Events (4)

1. January 29, 1908 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Clearing House declined further assistance during the 1907–08 financial disturbance, leaving the bank temporarily closed
Newspaper Excerpt: the directors announced that the Clearing House Committee had declined to give further assistance ... and ... it would be closed temporarily
Source: newspapers

2. August 6, 1908 Reopening

Newspaper Excerpt: the rehabilitated institution, which has been in suspension since last January, positively would be reopened next week ... will reopen as ... Union Bank of Brooklyn
Source: newspapers

3. April 5, 1910 Receivership

Newspaper Excerpt: O. H. Cheney, state superintendent of banks, has taken possession of the bank.
Source: newspapers

4. April 5, 1910 Suspension

Cause: Government Action
Cause Details: State Superintendent of Banks took possession and closed the bank; heavy liabilities and past suspension cited
Newspaper Excerpt: The doors of the Union Bank of Brooklyn were closed this morning. ... O. H. Cheney, state superintendent of banks, has taken possession of the bank.
Source: newspapers

Newspaper Articles (22)

1. August 6, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 6, 1908

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UNION BANK DIRECTORS. New Members of Board Announced -To Open Next Week. The names of the new directors of the Union Bank, formerly the Mechanics and Traders', were announced yesterday. Announcement also was made that the rehabilitated institution, which has been in suspension since last January, positively would be reopened next week, although the day has not been definitely set. The new directors are Bridge Commissioner Stevenson, Nathaniel H. Levi, president of the Broadway (Brooklyn) Board of Trade: ex-Representative Frank L. Wilson; Jacob L. Greatsinger, former president of the Brooklyn Rapid Transit Company; John R. Stine, president of the New York Leather Belting Company: Thomas J. O'Donohue, William H. Lynn, E. J. Stalker, formerly cashier of the Chase National Bank, and William H. English, vice-president of the Empire Trust Company. The five directors elected in January, who took office a few days before the bank closed, will continue as members of the directorate. They are C. E. Donnellon, of the Chauncey Real Estate Company; S. J. Harding, E. A. Fitter, Paul Grout and Edward M. Grout. Of the old board the following, who represent various branches of the bank, are to remain: Henry Albers, Barth S. Gronin, W. F. Corwith, William Strasser and Charles Straus. The directorate is thus cut down from twenty-four members to twenty. Edward M. Grout, president of the reorganized bank, said that the banking interests from whom the credit of $1,000,000 was obtained without commission or bonus are the Metropolitan Bank and the Empire Trust Company. At the meeting yesterday steps were taken in compliance with the report of Clark Williams, Superintendent of State Banks, to change the name of the institution to the "Union Bank of Brooklyn" and to change its place of business to the present Union branch, at No. 44 Court street.

2. August 12, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 12, 1908

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NEW BANK INQUIRY HELPS CLARK WILLIAMS. Kings District Attorney's Office Probing Pre-Panic Troubles. At the suggestion of Clark Williams, State Banking Superintendent, the District Attorney's office of Kings County within the last few days has been making an investigation into the conditions which led up to the recent financial troubles in the Mechanics and Traders' Bank. The institution temporarily closed up while David A. Sullivan was president, five months ago. It is now back on its feet, and on Monday it will reopen as a strictly Brooklyn concern under the presidency of ex-Controller Edward M. Grout. It will be known henceforth as the Union Bank. Mr. Williams, it is understood, did not ask the co-operation of the District Attorney earlier, as the bank was being reorganized and the announcement of an investigation at that time would perhaps have been injurious to the concern. Now it is again on the highway to health. Assistant District Attorney Francis X. McCaffry has been placed in charge of the investigation. and has examined several witnesses as to the transactions that preceded the closing of the bank. What he has learned he will lay before the next grand jury, which will have its first session on August 25. It is said that he has discovered several forgeries that will involve important persons in banking circles. When asked last night to tell what he had been requested to do by Mr. Williams and what he had 80 far discovered, Mr. McCaffry said: "Mr. Williams asked the District Attorney's office to investigate the conditions that led up to the suspension of the bank. The investigation was not directed against any particular person. It does not affect the bank 2S it is now organized in any way. There is no reason for any one interested in the Union Bank to be alarmed by the investigation into the affairs of the Mechanics and Traders Bank Mr. Williams discovered certain transactions which he thought should be looked into by the District Attorney's office of this county." Mr. McCaffry said he had the power of tracing into New York County or any other county of the state any transaction which had begun in Kings County, but he spoke as though he had not found It necessary to cross the river.

3. August 23, 1908 New-York Tribune New York, NY

Article from New-York Tribune, August 23, 1908

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BRYAN BEGINS SPEECHMAKING. "Mr. Bryan started on a seven days' trip, and began his speechmaking at Des Moines, Iowa. He attended a council of the state leaders in the afternoon and spoke on the tariff in the evening. After a three days' conference with his campaign managers in Chicago he will speak on the trusts in Indianapolis and on financial legislation in Topeka, Kan. His tariff speech was an attack on protection and an argument for a tariff for revenue only. He also advocated an income tax. "James Schoolcraft Sherman, the Republican Vice-Presidential candidate, received official notification of his nomination at his home in Utica. In his speech of acceptance he said that the overshadowing issue of the campaign was 'Shall the policies of President Roosevelt be continued?' not 'Shall the people rule?' Mr. Bryan's issue, because the people did rule. "Governor Johnson of Minnesota was renominated by the Democrats, and despite his reiterated statement that he would not run he accepted the nomInation. "The Appellate Division of the New York State Supreme Court decided as constitutional the legislative reapportionment act of 1907. The racetrack gamblers had counted in event of a contrary decision on unseating Senator Wallace, the loss of whose vote would have made a tie vote on the racetrack gambling bills." "Any more returning prosperity harbingers?" "The Mechanics and Traders' Bank, which suspended in Manhattan on January 30, reopened as the Union Bank of Brooklyn, with Edward M. Grout as president. The Commercial National Bank of Chicago made a study of commercial, financial and farm conditions and found that the conditions in all three show that a return to normal business times is under way. Another sign of returning prosperity was given by the New York Custom House receipts of Tuesday. They were $300,000, the largest of any day since the financial flurry."

4. April 6, 1910 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, April 6, 1910

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BROOKLYNI BANK IS CLOSED DOWN STATE SUPT. OF BANKS TAKES OF UNION CHARGE BANK, WHICH HAS CAPITAL STOCK OF $1,000,000. By Associated Press. New York, April 5.-The doors of the Union Bank of Brooklyn were closed this morning. The institution has seven branches. O. H. Cheney, state superintendent of banks, has taken possession of the bank. The president of the bank is Edward M. Grout, former comptroller of the currency of New York. The bank has a capitalization of $1,000,000, with deposits of $6,500,000. The bank was organized in 1908 and took over the business of the Mechanics and Traders Bank, which closed during the 1907 financial panic. President Grout said he believed the assets were ample to pay depositors in full. It is not believed that the closing of the Union Bank will adversely affect any other financial institution.

5. April 6, 1910 New-York Tribune New York, NY

Article from New-York Tribune, April 6, 1910

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City Has $40,000 in It. The city of New York has $40,000 in the bank. It is said that Controller Prendergast a few days ago drew out $25,000 of this amount, to even up deposits with other city depositories, but-redeposited It at the request of Mr. Grout. The institution now known as the Union Bank of Brooklyn, then called the Mechanics and Traders' Bank, closed its doors on January 20, 1908, and was reopened for business under the present style in August of that year, with Mr. Grout as president and E. J. Stalker. long cashier of the Chase National Bank, of this city, as vice-president. The original Mechanics and Traders' Bank was one of the oldest banking institutions of New York City. A controlling interest in It. was purchased in June, 1905, by E. R. and O. F. Thomas, then entering upon their short career of conquest in the metropolitan banking field. E. R. Thomas had been a director for some time, and other representatives of the new interests entered the board, although Leo Schlesinger. who had been president since 1898, when he succeeded the late Fernando Baltes, was continued in that office. In December, 1906, the Thomases sold their interest to David A. Sullivan, president of the Union Bank of Brooklyn. and Mr. Sullivan became president of the Mechanics and Traders'. The capital of the latter was increased from $700,000 to $2,000,000 and the two Institutions were merged in March, 1907, under the name of the Mechanics and Traders' Bank. which continued to enjoy its Clearing House privilege. The Thomases retired from the board and from their other bank directorates on October 20 of that year, the day after Charles W. Morse severed. by request, all of his official connection with banks. F. Augustus Heinze went out at about the same time. The Mechanics and Traders' weathered the panic, but its Thomas-Heinze past was a heavy burden, and on January 29, 1908, the directors announced that the Clearing House Committee had declined to give further assistance, although the Clearing House held about $6,000,000 of "approved collateral." against which the bank owed It only about $1,900,000, and that, in view of this situation, the cash resources in the bank's possession made it inadvisable for the bank to continue without further aid, and it would be closed temporarily The bank was reopened in August as the Union Bank, its capital having been reduced to $1,000,000 and its surplus being nearly that amount. The main office was removed to Brooklyn and all the branches in Manhattan were discontinued. There are seven branches in Brooklyn. It was announced that the Metropolitan Bank and the Empire Trust Company had granted a credit to the bank of $1,000,000 for a year

6. April 7, 1910 Santa Fe New Mexican Santa Fe., Santa Fe, NM

Article from Santa Fe New Mexican, April 7, 1910

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SECOND FAILURE IN A WEEK Borough Bank of Brooklyn Is Compelled to Close Its Doors OLD MANAGEMENT AT FAULT Deposits Aggregate Two Millions and Capitalization $200,000. New York, April 7.-The Borough Bank of Brooklyn closed its doors today and the superintendent of banks has taken possession. The bank has a capital of $200,000 with deposits aggregating $2,000,000. This is the second bank failure in Brooklyn within a week, the first being the Union Bank of Brooklyn. As was the case with the latter, the Borough bank was obliged to suspend during the panic in 1907 and reorganized later. The new management is obliged to assume liabilities which have been a heavy load. When the borough bank closed in 1907, its president, Howard Maxwell, and cashier, Arthur Cambell, were indicted on the charges that the bank's funds had been misappropriated, President Maxwell cut his throat a few I days later.

7. April 7, 1910 The Roswell Daily Record Roswell, NM

Article from The Roswell Daily Record, April 7, 1910

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BIG STATE BANK IN BROOKLYN CLOSED ITS DOORS TODAY. New York, April -The Borough Bank of Brooklyn closed its doors to. lay and the Superintendent of Banks has taken possession of the bank. The institution has a capital of two hundred thousand with deposits aggregating two million dollars. This is the second bank failure in Brooklyn within the week, the first being the Union Bank of Brooklyn. As was the case with the latter, the Borough Bank was obliged to suspend during the panic of 1907 and was reorganized later. The new management 'nas been obliged to assume liabilities which have been a heavy load. When the Borough Bank closed in 1907 its president, Howard Maxwell and cashier, Arthur Campbell were indicted on the charge that the bank's funds had been misappropriated. President Maxwell cut his throat a few days later.

8. April 8, 1910 The Democratic Banner Mount Vernon, OH

Article from The Democratic Banner, April 8, 1910

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BANK In Brooklyn, N. Y. Suspended This Morning I New York, April 5.-The Union Bank of Brooklyn suspended this morning. The bank has seven branches. The state bank superintedent is in possession.

9. April 8, 1910 Watertown Leader Watertown, WI

Article from Watertown Leader, April 8, 1910

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ANOTHER BANK CLOSES BOROUGH OF BROOKLYN IN CHARGE OF STATE OFFICIAL. Liabilities Carried from Panic of 1907 Are Too Heavy for the Present Management. NEW YORK, April 7.-The Borough bank of Brooklyn closed its doors today and the superintendent of banks has taken possession of the institution. The bank has a capital of $200,000 with deposits aggregating $2,000,000. E. R. Shears is president. This is the second bank failure in Brooklyn within a week, the first being the Union Bank of Brookyn. At the office of the state superintendent of banks, the following statement was given out today: "A meeting of the board of directors of the Borough bank of Brooklyn was held at the office of the banking department, 52 Broadway, at 6:30 o'clock Wednesday night, the meeting having been called by President Shears. "After a conference with the superintendent of banks regarding the unusual demands being made upon the institution at its Eighth Ward branch and considering the character of the assets, for which the present management is not responsible, the board decided to request the superintendent to take possession and thus preserve the best interests of all depositors. "Pursuant to the request and the provisions of the banking law, the superin:endent has taken possession of the property and business of the corporation. No further statement regarding the condition of the bank will be made until the inventories have been completed. There has been no withdrawal of deposits from any other institution.' Supt. Cheney said that the conditions attending the closing of the bank were almost identical with those which led to the closing of the Union bank. As was the case with the latter, the Borough was obliged to suspend during the panie of 1907, and was reorganized after the panic was over. The new management was obliged to assume liabilities which have been a heavy load. Suspension of the Union bank had a bad effect on the Borough, which was known to be in the same position.

10. April 9, 1910 The Washington Times Washington, DC

Article from The Washington Times, April 9, 1910

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BANK SUSPENSION IS CAUSE OF DEATH NEW YORK, April 9.-Shocked by the sudden suspension of the Union Bank, Frederick Marble, manager of a branch of the institution, died last night following a fainting spell when he saw the notice on the bank door that business had been suspended. Marble had not known the bank's affairs were in a bad condition, and when he learned of the trouble he collapsed.

11. April 13, 1910 New-York Tribune New York, NY

Article from New-York Tribune, April 13, 1910

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HORACE S. ANDREWS APPOINTED Horace S. Andrews, one of the examiners of the state Banking Department, was appointed by Superintendent Cheney yesterday to take charge of the liquidation of the Borough Bank of Brooklyn, which closed its doors on April 7 on account of heavy withdrawals by depositors who had become frightened at the suspension of the Union Bank of Brooklyn two days before

12. May 3, 1911 The Evening World New York, NY

Article from The Evening World, May 3, 1911

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DIX ASKED TO AID DEPOSITORS OF THE UNION BANK Fold Not a Dollar of $4,000,000 Held by Brooklyn Institution Has Been Paid Them. ALBANY, May 3.-Gov. Dix's aid was asked to-day by a large delegation of depositors of the collapsed Union Bank Brooklyn to use his inuuence to bring bout the passage of Assemblyman Gold'stein's bill appropriating $50,00 for a legislative investigation of the Union Bank and any other State bank or trust company in process of liquidation which would warrant investigation in the committee's judgment. Assemblyman Goldstein, as spokesman for the delegation, told the Governor of the failure of the bank during the panic of 1907, of its subsequent rehabilltation under the presirdency of Edward H. Grout, former Comptroller of New York City, and of its reopening with the consent of Clark Williams. who was then State Superintendent of Banks. When it again closed in April, 1910. 1t had on deposit about $4,000,000, and not a dollar has been received by the depositors. Clark Williams was criticised for permitting the bank to reopen and Superintendent of Banks Cheney for allowing it to continue, while District-Attorney Whitman of New York was praised for his "fearless and honest prosecution of the banking thieves that wrecked the Carnegie Trust Company and the Washington Bank." Supt. Cheney, who was president during the thearing, was asked by the Governor if some of the real estate loans made by the bank were not excessive. Mr. Cheney replied that they would have been under present laws, but were not illegal at the time they were made. When the Governor asked If the Banking Department ought not to have interfered and investigated matters complained of, the Superintendent declared that he was not at the head of the Banking Department at that time. The delegation attended a hearing on the Goldstein bill before the Assembly Ways and Means Committee later in the afternoon.

13. July 31, 1911 The Evening World New York, NY

Article from The Evening World, July 31, 1911

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Former Examiner Swears Offer Was Made by Relative of Receiver. HELD OUT FOR RAISE. Suspecting Plot, Says Witness in Union Inquiry, Tried to Draw Howe On. The investigation of the State Banking Department into the circumstances of the closing of the Mechanics and Traders' Bank of Brooklyn and its reopening as the Union Bank, since closed, went on at the Kings County CourtHouse to-day. William Justice Hayes, a former State bank examiner, who had talked at previous hearings regarding the offer to him of a bribe, told a different story under oath from the informal statement which he made last week. At that time he said that the only bribe offer which had been made to him was at a time when he was a Federal examiner in California. To-day he said that it was in connection with the investigation of the Jenkins Trust Company in Brooklyn says RELATIVE OF OFFICER OFFERED $50,000. "A man came to me," he said, "who was related to one of the officers of the bank, and told me that there would be $50,000 in it if I would go easy on my report." Assemblyman Goldstein, who was examining the witness, demanded the name. "Moe Howe, brother of one of the receivers," was the reply. "I thought it was part of a plot to discredit me and get me out of the department, so I pretended I meant to accept, just to see what was up. I said the amount was not enough. I asked how much money

14. September 2, 1911 The Evening World New York, NY

Article from The Evening World, September 2, 1911

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"Union Bank depositors of a hasty habit of mind have announced in publice places that they would like to have Mr. Grout tell - his bank did with their gavings and running accounts. of course they can't find out from Mr. Grout. A depositor in a defunct bank in Brooklyn has the same individual rights as a deaf and dumb man at a political convention. "After trying in various ways to get a peep at their money, or a smell of their money. to say nothing of a feel of it. a committee of depositors got Assemblyman Goldstein to roar for them. Mr. Goldstein solicited and obtained the aid of the State Banking Department and of Mr. James Cropsey, who is said by policemen to be one of the best lawyers they ever worked under. Mr. Goldstein and Mr. Cropsey set about a.scertaining from Mr. Grout if he knew whether the $4,000,000 deposited in hi; bank is still on the job. "Now Mr. Grout has attacked the inquiry and invoked the aid of the law and Martin W. Littleton. He sets forth that Assemblyman Goldstein is not a proper person to inquire about the Union Bank depositors' money and that Mr. Cropsey's motives are open to suspicion. In the meantime the statute of limitations is working twenty-four hours a day. Brooklyn people have always been

15. October 12, 1911 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, October 12, 1911

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Charged With Falsifying Records. NEW YORK, Oct. 11.-Indictments charging misdemeanors in making false reports to the state banking department were found by the grand jury today against former City Comptroller Edward M. Grout and James T. Ashley, cashier of the suspended Union bank of BrookIsn. of which Grout was president. Both pleaded not guilty.

16. October 12, 1911 The Barre Daily Times Barre, VT

Article from The Barre Daily Times, October 12, 1911

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# E. M. GROUT INDICTED. Former City Comptroller Charged With Manslaughter. New York, Oct. 12.-Indictments charging misdemeanors in making false reports to the state banking department were found by the grand jury yesterday against former City Comptroller Edward M. Grout and James T. Ashley, cashier of the suspended Union Bank of Brooklyn, of which Grout was president. Both pleaded not guilty and were paroled in the custody of their counsel. Mr. Grout issued a statement, assuring his friends of his innocence.

17. October 12, 1911 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, October 12, 1911

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# FORMER CONTROLLER GROUT # INDICTED BY GRAND JURY NEW YORK, Oct. 11.-Indictments charging misdemeanors in making false reports to the State Banking department were found by the grand jury today against former City Comptroller Edward M. Grout and James T. Ashley, cashier of the suspended Union bank of Brooklyn, of which Grout was president. Both pleaded not guilty and were paroled in the custody of their counsel.

18. May 28, 1912 New-York Tribune New York, NY

Article from New-York Tribune, May 28, 1912

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CALL MORE UNION BANK MEN Other Indictments Hinted at When Inquiry Is Resumed. At the resumption of the Union Bank hearing yesterday it was hinted that several more indictments might be forthcoming before the end of the month. The inquiry was directed on the note transactions of the Sullivan regime. Several of the directors at that time were summoned to the grand jury investigation yesterday. Among those called were Barth S. Cronin, Leo Schlessinger. William Strasser, F. F. McCook, James N. Brown and Charles E. Ring. These men. it is said, owed the bank money at the time of the panic in 1907. F. C. Penton, who had charge of the Clearing House work of the Union Bank during the panie, and was used as a dummy by James T. Ashley, the cashier. and David A. Sullivan, the president, both of whom are under indictment, was summoned. He signed papers as a trustee in a $148,000 note transaction. and was also used in the Hamilton Bank deal. The latter transaction is to be probed in June, and it is probable that he will be summoned to testify. District Attorney Cropsey is personally in charge of the work, and is aided by his assistant, Louis Goldstein. and the State Superintendent of Banks.

19. December 13, 1914 The Sun New York, NY

Article from The Sun, December 13, 1914

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The case referred to is that of E) M. Grout. lawyer, former City ' troller and once president of the Bank of Brooklyn, which seems to made trouble for every one who tx it. David A. Sullivan, the Sing joy rider. whose pastimes while S a prison term caused the dismis Warden McCormick of Sing Sin who has just been indicted on more counts in connection wit manipulation of the Union money. preceded Mr. Grout as h the wrecked institution. Grout was indicted before Mr. sey's incumbency began, but h only indicted for a misdemeano Mr. Cropsey caused his indictme a felony, charging that he com perjury in making a report to the Banking Department. It is allege Grout swore falsely to a statem the bank's assets and liabilities. in ing the former and decreasing the It was while District At Clarke. Mr. Cropsey's predecesso in office that the Union Bank. re tated after its suspension durin panic of 1907. failed again whi Grout was president. Mr. Clarke time was in Europe: Robert H. was Mr. Clarke's first assistant an in charge of the office. It was who caused Grout's indictment misdemeanor. In December, 1913, Mr. Cropse Grout indicted for a felony, and then the case has been in cou peatedly on various motions. Grout's prominence and the inte the public particularly deposite all the affairs of the Union Ba some one to ask Mr. Cropsey wi would put Mr. Grout on trial. and a reference to this in the speech the Fulton Street Board of Trad has caused all the commotion. This 15 what Mr. Cropsey said "Bomebody asked me when we gong to try another bank pro awaiting trial. I said we were go try him without fall. and in my and I am trying to get a handpicked. and one or rather a lap fri the man who is to be tried. and . who WITH at least give the pe for trial. I have reason to

20. March 20, 1915 New-York Tribune New York, NY

Article from New-York Tribune, March 20, 1915

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DAVID A. SULLIVAN TO SELL INSURANCE Bank Wrecker, While Waiting for New Job, Assists Union Liquidation. David A. Sullivan, the Brooklyn bank wrecker, who was recently in the limelight because of his "joy rides" with ex-Warden McCormick of Sing Sing, has a new job. He will soon go to work writing policies for an insurance company. Meanwhile, however, he is devoting much of his time to straightening out the Union Bank's tangled affairs. Sullivan, who was formerly its president, will assist Daniel W. Quinn, jr., special Deputy Superintendent of Banks, who is in charge of the institution's liquidation. He appeared at the liquidation office yesterday and was soon assigned to a

21. November 4, 1915 The Sun New York, NY

Article from The Sun, November 4, 1915

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NEW BANKING POST FOR QUINN Becomes Vice-President of Queens Trust Company. Daniel W. Quinn, Jr., has resigned as examiner in charge of the private bankers bureau of the State Banking Department and as special deputy superIntendent of banks, to become vice-president of the Queens County Trust Company, with offices in Jamaica and Long Island City. Mr. Quinn has been with the State Banking Department five years. In February of last year he was assigned to the District Attorney's office to assist in preparing the case against Henry Siegel and Frank E. Vogel. In December last he was placed in charge of the Union Bank of Brooklyn, which had been in liquidation since April, 1910, and has held the post ten months. George V. McLaughlin will succeed Mr. Quinn at the Union Bank of Brooklyn and Fletcher C. Crane will succeed him as examiner in charge of the private bankers bureau.

22. February 23, 1916 New-York Tribune New York, NY

Article from New-York Tribune, February 23, 1916

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# CAN SELL HEINZE STOCK Court Allows Richards to Dispose of Collateral Held by Union Bank. [From a Staff Correspondent of The Tribune.] Albany, Feb. 22.-State Superintendent of Banks Richards by a decision of Supreme Court Justice Chester to-day is permitted to sell approximately $200,000 in collateral for notes put up by the late F. Augustus Heinze with the broken Union Bank of Brooklyn. The collateral represents shares and mortgage bonds of the United Davis-Daly and Ohio Copper Companies. When Mr. Heinze put up the securities he gave the bank permission to sell them, but later alleged that he had made a subsequent oral agreement with David C. Sullivan, the bank's president, now serving a term in Sing Sing prison, to keep the securities from being sold. Litigation resulted, first with the bank and, after the bank's failure, with the State Superintendent of Banks, as receiver.