7854. Charles A. Sweet & Co. (Boston, MA)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
private
Start Date
March 6, 1882
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
9540cb42

Response Measures

None

Description

The firm (a private banking house) suspended payment on 1882-03-06 due to losses/illiquid Massachusetts Central Railroad bonds and inability to meet calls. No newspaper describes a depositor run. Creditors' meeting and proposal to assign assets to trustees (Mar 10) indicate formal winding/receivership rather than an immediate reopening.

Events (4)

1. March 6, 1882 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Inability to meet calls on large holdings of Massachusetts Central Railroad bonds that had fallen sharply in value; banks called for additional funds and Sweet & Co. could not respond.
Newspaper Excerpt
The banking house of Charles A. Sweet & Co., 40 State street, this city, suspended payment this morning, causing considerable excitement in financial circles.
Source
newspapers
2. March 7, 1882 Other
Newspaper Excerpt
Liabilities of all sorts amount to $2,876,110, and the assets, estimating Massachusetts Central bonds at fifty cents on the dollar, $2,775,057. In addition to this, Mr. Sweet's private capital of $447,000 is liable for the debts of the firm, making the total assets $3,222,057, leaving a surplus of $345,947.
Source
newspapers
3. March 10, 1882 Other
Newspaper Excerpt
At a meeting of the creditors ... the members of the firm proposed to assign all their property and assets to three trustees ... who are to take charge of affairs and settle up as soon as possible. The proposition was accepted ... thirty days being given them to append their signatures to the agreement.
Source
newspapers
4. March 10, 1882 Receivership
Newspaper Excerpt
the members of the firm proposed to assign all their property and assets to three trustees, Messrs. Samuel Atherton, James Beal and George Witney, who are to take charge of affairs and settle up as soon as possible.
Source
newspapers

Newspaper Articles (11)

Article from Evening Star, March 6, 1882

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Article Text

Suspension of a Boston Banking House BOSTON, March 6.-The banking house of Charles A. Sweet & Co., 40 State street, this city, suspended payment this morning, causing considerable excitement in financial circles. A committee is now investigating the affairs of the concern, and it is asserted by those familiar with its business that the suspension will prove but a temporary one. The house has been advancing money, it is stated, to the Massachusetts Central railroad, carrying its bonds and placing them in the market. The road is a new one; its bonds have shrunk in value, and the banks which have been carrying the bonds have called on Sweet & Co. for additional funds. To this call the firm has been unable to respond. THE APPOINTMENT of an assistant chief of the bu. reau of engraving and printing was to have been made to-day, but at the request of several of the applicants for the position it will be delayed until later in the week.


Article from Savannah Morning News, March 7, 1882

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OUT FOR FOUR MILLIONS. TREMENDOUS CRASH IN BOSTON. A Promiment Banking House Gone Unrer-A Member of the Firm Forced to Make Good Over Two Million Dollars BOSTON, March 6 -The banking house of Charles A. Sweet & Co., 40 State(street, this city, suspended payment this morning, causing considerable excitement in financial circles. The house has been advancing money, it is stated, to the Massachusetts Central Railroad, carrying its bonds and placing them in the market. The road is a new one, its. bonds have shrunk in value, and the banks which have been carrying the bonds have called on Sweet & Co. for additional funde. To this call the firm has been unable to respond. Their liabilities are placed at about $4,000,000. Their unsecured liabilities are about $2,500,000, and Mr. Sweet has personal property outside the firm more than sufficient to secure this amount. The members of the firm say no creditor need lose a dollar, and an investigation of the assets shows a remarkably clean sheet. The effect of the failure in the brokers' board was no more than would be that of almost any other banker in the street. The liabilities are almost entirely to banks upon good collateral. The firm will make a statement tomorrow or Wednesday.


Article from Daily Republican, March 7, 1882

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Article Text

Defalcations. The Banking house of Charles A. Sweet & Co., of State street, Boston, suspended yesterday, with liabilities estimated at about $2,800,000, principally divided among several Boston banks. The Boston Transcript says: "Outside of the Massachussetts Central bonds, the assets are first class in every respect. A list of the assets shows $2,500, 000 of bonds, which, excluding the $600, 000 of Massachussetts Central bonds, stand unquestioned as the choicest investment securities in the market. * The unsecured liabilities of the firm are about $2,500,000, and Mr. Sweet has personal property outside the firm more than sufficient to secure this amount. The members of the firm say that no creditor need to lose a dollar, and inves tigation of the assets shows a remarka. bly clean sheet."


Article from Morning Journal and Courier, March 7, 1882

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NEW ENGLAND. Massachusetts. Reported Failure of a Banking Firm. BOSTON, March 6.-It was reported to-day that the firm of Charles A. Sweet & Co., prominent bankers and brokers, at 40 State street, had failed. The first intimations financial circles of this city had of the suspension were numerous reports from New York SO possible that no mistake could be made about their authority. For hours it was impossible to trace the rumors to any reliable foundation. Messengers flew thick and fast in many directions in and out of the banks, endeavoring to found out whether there was any bank or firm in trouble. A call at the banking house of the above named firm revealed the fact of its suspension. This firm has always stood high in this community, and has been supposed to do a profitable. and growing business sinceits organization some years ago, when some of its members separated from the house of Brewster, Sweet & Co., and two strong firms were formed. These firms were rated all the way from $400,000 to $100,000, and were given the very highest credit at the commercial agencies. The cause of the failure is admitted to be due to the fact that the firm had been carrying and gradually placing $700,000 to $800,000 in Massachusetts Central bonds. These bonds have fallen from 101 last summer to 80 on Saturday. The sales have been small. The firm has been obliged to buy largely to sustain the market. Very recently the house has received certain calls for several very large loans which they had previously obtained on these bonds. At once an effort was made to change other securities held by them and also to place the Massachusetts Central bonds elsewhere in order to meet the aforesaid demands. In this the house was unsuccessful, and the banks refusing to accept the bonds as collateral and suspension followed. It is reported that recent declines in Toledo, Delphos and Burlington and Connoton Valley securities has affected the firm, but this is not confirmed. No suspicion of weakness existed until the suspension was announced at noon to-day. The firm was one of the most energetic in Boston as regards their operations, and their business is conceded on all hands to have been very great. Exactly why the firm were unable to place their Massachusetis Central bonds is now a matter of surmise and a good deal of curious inquiry is made. as to the amount of bonds carried for the western line of which mention has been made above. Clerks are busily employed preparing a comprehensive and complete statement as to the liabilities of the firm, which are unknown, but believed to be about $2,000,000. The firm claims it can pay dollar for dollar, and it is stated on the best authority that if the firm could sell its securities at present market rates it could pay all indebtedness and have a handsome surplus. The firm 1 dealt only in investment securities, and it is not thought therefore that the general stock a market will be seriously affected. It is believed no other banking firms are affected seriously, as the heaviest creditors of Sweet & Co. are prominent and staunch banks. Russell's Mercantile agency. estimates the liabilities of Charles A. Sweet & Co. at $3,000,000.


Article from Savannah Morning News, March 8, 1882

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THE BOSTON CRASH. Statement of the Assets and Liabili= ties of Sweet & Co. BOSTON, March 7.-At a meeting of the creditors of Charles A. Sweet & Co., the suspended banking firm, held here to-day, the following statement was made The liabilities of all sorts amount to $2,876,110, and the assets, estimating Massachusetts Central bonds at fifty cents on the dollar, $2,775,057. In addition to this, Mr. Sweet's private capital of $447,000 is liable for the debts of the firm, making the total assets $3,222,057, leaving a surplus of $345,947. No detailed statement has been made yet.


Article from New-York Tribune, March 8, 1882

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Article Text

THE SUSPENDED BANKING FIRM. BOSTON, March 7.-At a meeting of the creditors of Charles A. Sweet & Co., the suspended banking firm, held here to-day, the following statement was made: The liabilities of all sorts amount to $2,876,111, and the assets, estimating Massachusetts Central bonds at 50 cents on the dollar, to $2,775,037. In addition to this is Mr. Sweet's private capital of $447,000, which is liable for debts of the firm, making the total assets $3,222,057, leaving a surplus of $345,946. No detailed list of creditors or assets was furnished to the press. A committee was as pointed to arrange for setiling the firm's affairs. which will report on Thursday. There seems no doubt of the payment of the firm's liabilities in full and without great delay. The feeling among bankers and brokers here to-day is more confident, and no other failures are prob ble. The creditors' committee consists of James N. Beals, President of the Second National Bank, chairman; D.R. Whitney, President of the Suffolk National Bank, and Samuel Atherton, Director of the New-England Bank.


Article from Knoxville Daily Chronicle, March 8, 1882

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Failure of a Boston Bank. BOSTON, Mass., March 6.-The banking house of Charles A. Sweet & Co., on State street, in this city, suspended payment this morning, causing considerable excitement in financial circles. The house has been advancing money, it is stated, to the Massachusetts Central Railroad, carrying its bonds and placing them in the market. The road is a new one, its bonds have shrunk in value, and the banks which have been carrying the bonds have called on Sweet & Co. for additional funds. call the To this firm has been unable to respond. The liabilities are placed at about four millions. The unsecured liabil= ities of the firm are about $2,500.00, and Mr. Sweet has personal property outside of the firm more than suffi cient to secure this amount. The members of the firm say no creditor need lose a dollar, and an investiga tion of the assets shows a remarka bly clean sheet. The effect of the failure in the Broker's Board was less than would be that of almost any other bank on the street. The liabilities are almost entirely to banks, upon good collateral. Sweet. will make statements to-morrow.


Article from The Daily Dispatch, March 8, 1882

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# GREAT DAMAGE IN THE WHITE-RIVER BOTTOMS. MEMPHIS, March 7.-Captain Ed. Postal, of the steamer Hard Cash, which arrived this morning, reports that the back-water from the Mississippi river extends up the White river to Clarendon, Ark., a distance of 135 miles from the mouth of that river, and the entire country intervening is under water, which is two feet higher than was ever known before. Great loss of stock and damage to farming interests has occurred throughout the White-river bottoms. The river here continues stationary. Charles A. Sweet & Co. BOSTON, March 7.-At a meeting of the creditors of Charles A. Sweet & Co., the suspended banking firm, held here to-day, the following statement was made: Liabilities of all sorts, $2,876,111: assets, estimating Massachusetts Central bonds at fifty cents in the dollar, $2,775,057. In addition to this, Sweet's private capital of $447,000 is liable for the debts of the firm, making the total assets $3,222,057, leaving a surplus of $345,947.


Article from The Kenosha Telegraph, March 10, 1882

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THE NEWS CONDENSED. DOMESTIC ITEMS. East. Heavy rains, followed by floods and washouts, are reported in the Eastern States and Southern Canada, Numerous railroad accidents, attended with some loss of life, are among the natural results, A freight train ran into a washout at Swanton, Vt., scalding the fireman to death and wrecking nine cars. A passenger train on the Ogdensburgh road was ditched at Mooers Forks, N.Y., killing the engineer and fircman. The six days' walking match in New York was won by Hazael, the Englishman, who made 600 miles. Five other contestants made 500 miles and upward. Rowell, the hithertoinvincible pedestrian, fell sick, and gave up on the fourth day of the contest. Three railway employes were killed at Earlville, N. Y., by a collision of trains on the Syracuse and Chenango road. Ex-Gov. Milton S. Latham, of California, died in New York last week. Charles A. Sweet & Co., of Boston, bankers, have suspended payment. The lia= bilities are between $3,000,000 and $4,000,000. West. Repeated attempts have recently been made to wreck trains on the Chicago and Alton oad at Joliet, Ill. The Iowa Legislature has passed a resolution to submit to the people a constitutional amendment on the question of liquor prohibition. By a vote of 63 to 49, the Wisconsin Assembly refused to order to engrossment a prohibitive resolution. Crop reports for the West and Northwest are unanimous'y good. At Portland, Ore., Annie Murray, a notorions woman, killed Henry C. Prang, and then inflicted fatal wounds upon herself. Forty Indian prisoners at Fort Lowe11, who were implicated in the Cibicu outbreak, are to be escorted to San Carlos reservation and set at liberty. Their capture and detention cost $15,000, and no effort to punish them has been made. Imposing demonstrations against further Chinese immigration took place in all the large towns in California and Nevada, business having been suspended. The San Francisco gathering was estimated at 30,000. Resolutions were adopted urging upon Congress the absolute necessity of speedy legislation, to make effective the treaty with China to restrict the advent of her citizens on the Pacific coast. The Grand Jury at Chicago has indicted a large number of gamblers, and several wealthy citizens who rent their property to gamblers. Alice Wright, an actress, jumped from A third-story window of a Cleveland hotel, while delirions from typhoid fever, and was dashed to death. At Marquette, Mich., the lower packing house of the Lake Superior Powder Company's mills exploded the otherday. Fourmen were blown to atoms, and the building annihilated, South. Dr. Williford, of Memphis, mistook for a burglar n colored nurse in his employ, and fatally injured Ler by firing through a window. Five persons were overwhelmed by the rush of waters, caused by the breaking of the Mississippi levee near Concordia, Le. The three Indian scouts-Dead-Shot, Dandy Jim and Skippy-who gave the signal for the onslanght on Gen. Carr's command, were executed at Fort Grant, Arizona. Robert Jones, a white man, and William Miller, colored, were hanged at Aberdeen, Miss., for the murder of three brothers, named Walker, in November last. Many people in the lowlands of the Lower Mississippi valley were compelled to seek refuge in trees from the flood. The steamer James D. Parker was wrecked on the rocks near Louisville, and then set on fire by the overturning of a stove. The passengers were rescued, but a cargo valued at $100,000 was lost.


Article from The True Northerner, March 10, 1882

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LATER NEWS ITEMS. After prolonged conferences, Envoy Trescott and the Chiliar Minister of Foreign Affairs dnew up a protocol to serve as 8 basis of a treaty of peace between Peru and Chili, leaving in aboyance the subject of indemnity. The Grand Jury at Chicago has indicted a large number of gamblers. and several wealthy citizens who rent their property to gamblers. Alice Wright, an actress, jumped from a third-story window of a Cleveland hotei, while delirious from typhoid fever, and was dashed to death. At Marquette, Mich., the lower packing house of the Lake Superior Powder Company's mills exploded the other day. Four mer were blown to atoms, and the building annihiiated. Ex-Gov. Milton S. Latham, of California, died in New York last week. Charles A. Sweet & Co., of Boston, bankers, have suspended payment. The liabilities are bet ween $3,000,000 and $4,000,000. In the British House of Commons, Sir Stafford Northcote carried a resolution that Bradlangh be not permitted to go through the form of repeating the words of the oath. The United States Supreme Court has de cided that the dutiable quality of sugars is to be determined by their actual color, and not by their saccharine strength. This reverses the position taken by the Treasury Department. The substance of the Russian Gen. Skobeleff's speech to the Servian students, which has caused 80 much comment in Europe, was that a struggle between the Slav and Teuton was inevitable, for Russia would no longer consent to be hold in check by the influence of Germany. When that struggle came it would be a long and sanguinary one, but the Slav would triumph. The words of the fiery warrior have greatly stirred up Bismarck and the Emperor. and set them to questioning Russia's intentions.


Article from The Portland Daily Press, March 11, 1882

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MASSACHUSETTS. The Suspended Banking House. BOSTON, March 10.-A meeting of the creditors of Messrs. Charles A. Sweet & Co., was held at the banking house yesterday, at which the members of the firm proposed to assign all their property and assets to three trustees, Messrs. Samuel Atherton, James Beal and George Witney, who are to take charge of affairs and settle up as soon as possible. The proposition was accepted by those present, and the remaining creditors were advised to co-operate, thirty days being given them to append their signatures to the agreement. The committee stated that, in its opinion, the claims would be met dollar for dollar, and that Mr. Sweet will besides have left an ample competency.