gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
217170bf9aaace4e
Response Measures
None
Description
Examiner found large deficit and officers guilty of grave irregularities; receiver appointed.
Events (2)
1.October 31, 1878Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by State Bank Superintendent after inability to realize assets and later examiner found insolvency and officer irregularities.
Newspaper Excerpt
The Merchants and Mechanics' state bank closed to-day.
Source
newspapers
2.November 18, 1878Receivership
Newspaper Excerpt
James Forsyth, receiver of the broken Merchants and Mechanics' bank, took charge to-day.
Source
newspapers
Newspaper Articles (20)
1.October 31, 1878Daily Press and DakotaianYankton, SD
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BUSINESS TROUBLES. AT PHILADELPHIA. Philadelphia, Nov. 1.-Detwiler & Welsh, owners of the Market street flour mills, have failed. Liabilities about one hundred thousand dollars. AT TROY. Troy, N. Y., Nov. 1.-The MercLants and Mechanics' state bank closed to-day. AT WASHINGTON. Washington, Oct. 31.-The German American national bank, which grew out of the German American ravings bank, and occupied the same building, suspended this morning. The German American savings bank has also closed its doors and put up the following notice: Owing to the suspension of the German American national bank, this bank is forced to close. The officials of the savings bank declare that their institution is sound. Both banks were owned and patronized principally by Germans, and the suspension causes much surprise. An excited crowd surrounds the building. The cause was an inability to realize on real estate mortgages. The national bank examiner expects the depositors to be paid in full.
2.November 1, 1878Daily Kennebec JournalAugusta, ME
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NEW YORK Bank Matters. TROY, October 31. The Merchants and Mechanics' State Bank of this city, Dr. Thos. Vail, President, was closed to-day by the State Bank Superintendent. Rum Did It. NEW YORK, October 31. John Riley, a cardriver, refused to pay for a drink in an up-town saloon last evening, and the barkeeper fatally shot him. Denial. The Tribune reports that President Green of the W. U. Co., states that the whole report about an extra dividend on that stock, is a fancy of speculators, and the subject has not been considered by the executive committee. Suspension. The suspended German American National Bank was organized in 1877 with a capital of $30000 and a circulation of $63,000. President, John Hitz, Swise Consul General. The cause of the failure was inability to realize upon mortgages. The National Bank Examiner, after a hasty examination, stated it was probable the depositors will be paid in full. Weather. A heavy northwesterly gale has prevailed since sunset. The thermometer has fallen to 39 and is rapidly falling. Fires. A fire at 444 Broadway, to-night, damaged the stock of Bamberger & Co., clothiers, $12,000; Van Praag & Co., wholesale necktie dealers, damage by water unknown; building damaged about $1,500. Another fire damaged the stock of Mayer & Jonassen, cloak manufacturers, $10,000.
3.November 2, 1878Evening StarWashington, DC
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BANK FRAUDS.-The report of the New York York bank superintendent on the condition of the suspended Merchants and Mechanics' bank. at Troy, N. Y., states that the bank is hopelessly insolvent; that according to the report of the examinerthere is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transactions of the bank, and have, in their sworn reports, concealed from the bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1878, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.
4.November 2, 1878Daily RepublicanWilmington, DE
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Article Text
Bank Suspension. The report of the New York bank superintendent on the condition of the suspended Merchants and Mechanics' Bank, at Troy, N. Y.. states that the bank is hopelessly insolvent: that according to the report of the examiner there is an apparent deficit of $465,664; that the officers have been guilty of grave irregularities in the transaction of the bank, and have, in their sworn reports, concealed from thr bank superintendent by false or equivocal statements the true condition of the bank; that deceptive devices were adopted by such officers in September, 1877, and he is convinced that the financial condition of the corporation is beyond any practical remedy for restoring it to soundness. Motion for a receiver will be made Monday.
5.November 9, 1878Chariton CourierKeytesville, MO
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EAST AND SOUTHEAST' Brig. Gen. Julius Hayden died on the 29th in Orange, N. J., from the effect of an apoplectic attack. He was born in New York City, September 4, 1820. The Confederate monument at Augusta, Ga., the work of the Ladies' Memorial Association, was unveiled on the 31st with appropriate ceremonies. Gov. Colquitt, Alex. H. Stephens and other distinguished citizens were present. Several Confederate battle-flags were displayed on the stand. In front of the monument the star-spangled banner and Confederate flag were blended, and surmounted by an olive-fringed stream er, with the watchword "Peace." The Merchants' and Mechanics' State Bank at Troy, N. Y., has suspended. Richard J. O'Reilly, Chief Paymaster's Clerk at the Charlestown (Mass.) Navy-yard, has committed forgeries, to the amount of $4,000 or more and absconded. The Mechanics' and Laborers' Savings Bank, Jersey City, has temporarily suspended payment, and enforced the 60-day-rule. Assets, $200,000; liabilities, $190,000. Moses Allen, colored, was hanged at Gibson, Ga., on the 2d, for the murder of Benjamin Ivey in December last. Hon. Charles W. Scott, of Baltic, Conn., ex-member of the Connecticut Legislature, committed suicide on the 30th. Mental derangement was the probable cause.
6.November 15, 1878The Jasper Weekly CourierJasper, IN
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Article Text
EAST AND SOUTHEAST' Brig. Gen. Julius Hayden died on the 29th the Orange, N. J., from the effect of an apopicatic attack. He was born in New York City, September 4, 1820. The Confederate monument at Augusta, Ga., the work of the Ladies' Memorial Association, was unveiled on the 31st with appropriate ceremonies. Gov. Colquitt, Alex. H. Stephens and other distinguished citizens were present. Several Confederate battle-flags were displayed on the stand. In front of the monument the star-spangled banner and Confederate flag were blended, and surmounted by an olive-fringed stream er, with the watchword 'Peace." The Merchants' and Mechanics' State Bank at Troy, N. Y., has suspended. Richard J. O'Reilly, Chief Paymaster's Clerk at the Charlestown (Mass.) Navy-yard, has committed forgeries, to the amount of $4,000 or more and absconded. The Mechanics' and Laborers' Savings Bank, Jersey City, has temporarily suspended payment, and enforced the 60-day-rule. Assets, $200,000; liabilities, $190,000. Moses Allen, colored, was hanged at Gibson, Ga., on the 2d, for the murder of Benjamin Ivey in December last. Hon. Charles W. Scott, of Baltic, Conn., ex-member of the Connecticut Legislature, committed suicide on the 30th. Mental derangement was the probable cause.
7.November 20, 1878Evening StarWashington, DC
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How A BANK'S ASSETS HAVE DWINDLED FROM $700,000 TO $100,000.-A special dispatch to the New York World from Troy, N. Y., November 18th, says: James Forsyth, receiver or the broken Merchants and Mechanics' bank, took charge to-day. Before the failure the bank claimed $700,000 assets, but the examiner reported that the assets amounted to only $300,000. It is now said that they will not exceed $100,000. D. Thomas Vail, the president of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a millionaire. Some stockholders have threatened criminal proceedings against Vall, as it is believed he has speculated and lost heavily in Wall street.
8.November 20, 1878The Daily GazetteWilmington, DE
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Diminished Assets. A Bank Supposed to Have $700,000 Assets, Now Reported to Have Only $100,000. A special dispatch from Troy, N. Y., is as follows : James Forsyth, receiver of the broken Merchants' and Mechanics' Bank, took charge to-day. Before the failure the bank claimed $700,000 assets, but the examiner reported that the assets amounted to only $300,000. It is now said that they will not exceed $100,000. D. Thos. Vail, the President of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a millionaire. Some stockholders have threatened criminal proceedings against Vail, as it is believed he has speculated and lost heavily in Wall street.
How a Bank's Assets have Dwindled from $700,000to $100,000. TROY, N. Y., November 18.-James Forsyth, receiver of the broken Merchants and Mechanics' bank, took charge to-day. Before the failure the bank claimed seven hundred thousand dollars assets, but the examiner reported that the assets amounted to only three hundred thousand dollars. It is now said that they will not exceed one hundred thousand dollars. D. Thomas Vail, the president of the bank, has been ill ever since the failure, and is now reported to be a bankrupt. He has been supposed to be a mi'lionaire. Some stockholders have threatened criminal proceedings against Vail, as it is believed he has speculated and lost heavily on Wall street.
10.January 7, 1879New-York TribuneNew York, NY
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BROKEN BANKS. CLAIMS AGAINST THE MERCHANTS AND MECHANIC BANK OF TROY. ALBANY, N. Y., Jan. 6.-Before Justice Osborn to-day. Charles E. Patterson, receiver of the Merchants and Mechanics Bank of Troy, asked for instructions with respect to several large claims which be bad been requested to pay. After considerable discussion a reference was ordered in regard to the claim of the Chemical Bank of ew-York for the return of a check for $48,555. which it had forwarded to the broken bank for collection. In regard to the application of the Troy Savings Bank for a preference on its claim of $68,000, deposited in the Merchants and Mechanics Bank. the matter was also referred to take proof. Judge Parmalee was appointed referee in both cases.
11.January 25, 1879The SunNew York, NY
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Troy's Plandered Bank. ALBANY, Jan. 24.-Judge Osborn has conArmed the action of Charles E. Patterson, Receiver of the Merchants' and Mechanics' Bank of Troy, in bringing an action against the Schaghticoke Woolien Mills upon two $1,000 notes due the bank. He also authorizes the receiver to commence an action against the trustees of the said bank. and the employment of Moses Warren or Troy and Rutus W. Peckhain of Albany as counsel.
12.January 30, 1879New-York TribuneNew York, NY
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ACTION FOR THE REMOVAL OF A BANK TRUSTEE TROY, N. Y., Jan. 29.-Shortly after the suspension of the Merchants' and Mechanics' Bank, Bank Superintendent Lamb requested that President Vall, of the above bank, Daniel Robinson and C. R. Church, should resiga the positions held by them as trustees of the Troy Savings Bank. Messrs. Vall and Church complied. but Mr. Robinson refused to resign, and Mr. Lamb began proceedings to remove him. The testimony taken is quite voluminous, and the report of the examiner 18 to the effect that Mr. Robinson has been guilty of such acts as will Justify the courts in removing him. The Troy Times says the Bank Examiner's report is damaging.
13.January 30, 1879The SunNew York, NY
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A Bank Trustee Refuses to Resign. TROY, Jan. 29.-Shortly after the suspension of the Merchants' and Mechanics' Bank. Bank Superin tendent Lamb requested that President Vail of the above bank Daniel Robinson, and C. R. Church should resign the positions held by them as trustees of the Troy Savings Bank Messrs Vail and ( hureh complied but Mr. Robinson refused to reside. and Mr. Lamb began proceeding to remove him. The " stimony taken is quite voluminous, and the report of the Examiner is to the effect that Mr. Robinson has been guilty of such acts as will jusury the courts in removing him The Troy Times says the Bank Examiner's report 18 damaging
14.February 2, 1879The SunNew York, NY
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TROY'S BROKEN BANK. A Claim of the Citizens' National Bank of New York Rejected. TROY, Jan. 31.-When the Merchants' and Mechanics' Bank suspended the Citizens' Nntional Bank of New York was a creditor for about $18,000. The attorney for the Citizens' Bank affirmed that their claim was entitled to preference, because the Merchants' and Mechanics' Bank had collected for the petitioner in the capacity of agent. Judge Osborn appointed Judge Parmalee to take testimony and report findings. The ref. eree finds that the Troy bank acted as collector. under 8 special agreement with the Citizens' Bank that the defunct bank should make collections for the Citizens' Bank from day to day, and, in lieu of other recompense, should hold and use the money collected. and at the end of ench week make return: that as the use of the money was the consideration for its collection. that tast destroyed the relationship of principal and agent and that in the matter of the money collected and merged in the capital of the bank the relations were simply debtor and creditor. and for that amount the Citizens' Bank could not claim precedence before other creditors. Of the $18,000 about $3,000 was collected after the suspension.ind Referee Parmalee finds that this forms no portion of the assets of the broken bank, but belongs to the Citizens' Bank. The opinion. if sustained by the Court, is important. as it establishes 11 precedent for several other cases.
15.October 3, 1879Evening StarWashington, DC
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SUEING THE SECURITIES OF A BANK CASHIER. Justice Ingalls has granted leave to Charles E. Patterson, as receiver of the Merchants and Mechanics' Bank of Troy, N. Y., to bring suit against the sureties on the bond of the cashier of the bank for $20,000.
Important Bank Suit. TROY, N. Y., October 2.-The trial of a bank suit involving $450,000 is in progress. The action is brought by the receiver of the Merchants and Mechanics Bank of this city, which failed in 1878, against L. Thomas Vail, Charles R. Church, James E. Pinkbam, Daniel Robinson and Francis Sime. The complaint charges that the defendante, who are alleged to have been largely interested in a financial sense in both the Merchants and Mechanics Bank and the Shaghticoke Woolen Mills, connived to defraud the bank out of about $450,000, and thus caused the failure. The bank handled large amounts of the woolen mills' paper. Most of the defendants were wealthy, and all occupied a high social position.
17.October 3, 1882New-York TribuneNew York, NY
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SUIT BY A BANK RECEIVER. TROY, Oct. 2.-The trial of a bank suit involving $450,000 was begun in the Circuit Court to-day. The action was brought by C. E. Patterson, receiver of the Merchants and Mechanics' Bauk of this city, which failed in 1878, against D. Thomas Vail, Charles R. Church, James E. Pinkham, Daniel Robinson and Francis Sims. The complaint charges in brief that the defendante, who are alleged to have been largely interested, in a financial sense, in both the Merchants and Mechanics' Bank and the Schaghtleoke Woollen Mills, connived to defraud the bank of about $450,000 and this caused its failure. The bank handled large amounts of the woollen mills' paper. Most of the defendants are wealthy.
A Baptist Preacher HAS TO RESIGN. TROY, N. Y., October 2. - George B. Simons, the Baptist minister at Greenbush, charged with writing love letters to a young lady of his congregation, resigned, and the resignation was accepted. During the farewell serinon many women in the congregation wept. The trial of a bank suit, involving $450,000 is in progeess. Action is brought by the receiver of the Merchants' and Mechanics' bank, of this city, which failed in 1878, against L. Thomas Vail, Charles R. Church, James E. Perkham, Daniel Robertson and Francis Sims. The complainant charges defendants. who are alleged to have been largely interested in both the Merchant's and Mechanic's bank, and the Schagagticoke woolen mills with having connived to defraud the bank out of about $450,000, and thus caused the failure. The bank handled large amounts of the woolen mill's paper. Most of the defendants are wealthy and occupy high social positions.
19.January 21, 1883New-York TribuneNew York, NY
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A CHARGE OF CONSPIRACY DISMISSED. TROY, N. Y., Jan. 20.-Judge Boardman has dismissed with costs the complaint in the action brought by Charles Patterson, as receiver of the Merchants and Mechanics' Bank of Troy, against the officers of that institution to recover $450,000. The complaint charged that the defendants conspired to defraud the bank of that amount. Judge Boardman finds that there was no conspiracy.
An Important Case Decided. TROY, June 10.-The action brought by Charles E. Patterson as receiver of the Merchants and Mechanics bank to recover $450,000 as damages to the bank by the alleged conspiracy to divert the funds of the bank to the support of the Schlagiticoke woollen mills was decided to-day by the court of appeals against the receiver.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
