Article Text
More Prosperity Reports. Potsdam, N. Y., Jan 25- The Potsdam National Bank, with capital of $25,000, was closed today by the National bank examiner. The failure was due to the suspension of the Pearcefield Falls Paper company.
National Bank (Potsdam, NY)
Episode Information
- Episode UID
86801165- Episode Type
- Run → Suspension → Closure
- Bank Type
- national
- Bank ID
-
8680national - Charter Number
- 868
- Start Date
- January 25, 1897
- Location
- Potsdam, New York (44.670, -74.981)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
16b62b8841aebe52
Response Measures
Full suspension, Books examined
Other: Bank officials closed the bank’s doors to stem withdrawals and publicly announced that depositors would be paid in full; a national bank examiner was sent and later the examiner/receiver was appointed (receivership followed).
Receivership Details
- Depositor recovery rate
- 90.9%
- Date receivership started
- 1897-03-02
- Date receivership terminated
- 1902-10-24
- OCC cause of failure
- Fraud
- Share of assets assessed as good
- 23.9%
- Share of assets assessed as doubtful
- 71.5%
- Share of assets assessed as worthless
- 4.7%
Description
OCR variants present (Pottsdam/Pottsdam) corrected to Potsdam; receiver date uses official receivership date.
Events (5)
1.
March 7, 1865
Chartered
- Source
- historical_nic
2.
January 25, 1897
Run
- Cause
- Local Shock
- Cause Details
- Failure/assignment of the Piercefield (Piercefield/Pierce-Field) Paper and Mining Company triggered depositor alarm and heavy withdrawals.
- Measures
- Bank closed its doors at 3 P.M.; officials announced depositors would be paid in full.
- Newspaper Excerpt
- When the news of the failure of the Piecefield Company reached Potsdam, heavy withdrawals from the National Bank of Potsdam began.
- Source
- newspapers
3.
January 25, 1897
Suspension
- Cause
- Government Action
- Cause Details
- Bank closed by the national bank examiner following heavy withdrawals after the paper company's failure.
- Newspaper Excerpt
- The Potsdam National Bank ... was closed today by the National bank examiner.
- Source
- newspapers
4.
March 2, 1897
Receivership
- Source
- historical_nic
5.
March 2, 1897
Receivership
- Newspaper Excerpt
- National Bank Inspector Van Vranken was appointed receiver for the bank.
- Source
- newspapers
Newspaper Articles (17)
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Two Heavy Failures. Canton, N. Y., Jan. 26.-The High Falls Sulphite Pulp & Mining company aseigned this morning. The plant is said to have cost $300,000. No schedule of liabilities were filed. The proprietors claim that all banks holding their paper will be protected. Mr. Usherg, president of the National Bank of Pottsdam, which closed its doors yesterday, was interested in the company. Mr. Price, cashier of the bank, said, that the failure of the Princefield Pulp & Mining company started a run which the bank was unable stand. A schedule of the Princefield company places the assets at $900,000; liabilities, $400,000.
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A Mining Company Fails, CANTON, N. Y., Jan. 26.-The High Falls Sulphite, Pump and Mining company assigned this morning. The plant is said to have cost $300,000. No schedule of liabilities has been filed. The proprietors claim that all banks holding their paper will be protected. Mr. Tisher, president of the National bank, Pottsdam, which closed yesterday was interested in the company. Mr. Price, cashier of the National bank at Pottsdam sald the failure of the Piercefield Paper and Mining company started a run on the bank which it was unable to stand, The schedule of the Piercefield com. pany places the assets at $900,000; lia. bilities $400,000.
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A NORTHERN NEW-YORK BANK FAILS. n THE POTSDAM NATIONAL DRAGGER DOWN THE COLLAPSE OF THE PIERCEFIELD PAPER COMPANY. Potsdam, N. Y., Jan. 25 (Special).-The most serious business trouble that St. Lawrence County has experienced in many years culminated to-day when the National Bank of Potsdam closed its doors. This action was a great surprise to every one in Northern New-York, for this bank had been regarded for many years as one of the soundest financial Institutions in this part of the State. The closing of the bank 's directly attributable to the failure on Saturday of the Piercefield Paper and Mining Company. at Piercefield, in this county. This company a little more than a year ago opened an Immense paper will; its bonds and preferred stock were floated in New-York City, ex-Governor Flower buying $100,000 of the preferred stock. The president of the company is Luke Usher, who is also president of the National Bank of Potsdam. County Judge T. H. Swift is the assignee of the company. Its assets are said to be worth $944,000. while its llabilities are placed at $300,000. exclusive of the capital stock. Among the directors of the Pierco field Company are the State Superintendent of Insurance, James F. Pierce, and General E. A. Merritt. When the news of the failure of the Piecefield Company reached Potsdam, heavy withdrawals from the National Bank of Potsdam began. and at 3 o'clock this afternoon the bank closed its doors and announced that depositors would be paid in ful. which, It is believed, the bank will be able to do. The failure of the Piercefield Company is said to be due to the inability of the company to meet obligations which became due last week. Mr. Usher is also president of the High Falls Suiphite Pulp and Mining Company, at Pyriles. This company's paper was largely held by the National Bank of Potsdam. The Potsdam Knitting Company is closed for the purpose, it is said, of reorganization. The People's Bank here is not affected by these failures. Among the deposits of the failed bank is one of $1,000 of the county money, but the County Treas. urer is amply protected by the bondsmen of the bank. The bank was organized in 1831 as the Frontler Bank. changing later to the National system. It had run continuously since that date. Its capital stock is given as $200,000: surplus, $40,000; undivided profits, $8,000: deposits, $350,000; loans and discounts, $500,000. Saratoga. N. Y., Jan. 25 (Special).-Carlton E. Sanford. of Potsdam, was to-day appointed receiver for the St. Alban's Trust Company. The appointment was made at Ballston Spa by Judge Kellogs. in granting a motion by Frank L. Bell. of Potsdam. Excelsior Springs. Mo., Jan 25.-Judge J. M. Sandusky has been appointed receiver for the Farmers and Merchants' Bank. The liabilities are $20,000. with assets of $35,000. The receiver found nearly 50 per cent of the deposits in cash in the safe.
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The National Bank at Potsdam, N. Y., closed its doors at 3 P. M., Monday. The officials will issue no statement other than that all the depositors will be paid in full. The bank was organized in 1851 as the Frontier Bank, changing later to the national system. It has run continuously since that date. The capital stock is given as $200,000; surplus, $40,000; undivided profits $8000; deposits, $350,000, loans and discounts, $500,000. The failure, it is said, is due to unfortunate investments made of late.
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ANTICIPATED A RUN. "he National Bank at Pottsdam, N.Y.. Closes its Doors. Gouverniur, N. Y., Jan. 23.-The National bank at Pottsdam closed its doors at, three o'clock this afternoon. There was no run, but one would have been probable had this not been done. The officials of the bank state that all the depositors will be paid in. full. The bank examiner is expected tomorrow. The true condition of the bank cannot be learned until he has made an examination, but it is believ. ed that the statement of the bank officials will be borne out.
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FAILURE AT CANTON, N. Y. Canton, N. Y., Jan. 26.-The High Falls Sulphite, Pulp and Mining, Company assigned this morning. The plant is said to have cost $300,000. No schedule of liabilities has yet been filed. The proprietors claim that all banks holding their paper will be protected. Mr. Usher, president of the National Bank of Potsdam, which closed its doors yesterday, was interested in the company.
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A BIG FAILURE CANTON N. ¥.. January 26.-The High Falls Sulphite, Pulp and Mining Company assigned this morning. The plant cost $300,000. Mr. Usher. president of the Na. tional Bank of Potsdam. which closed its doors yesterday, was interested in the company. Assets, $900,000 liabilities, $400,000.
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DEPOSITORS GOT SCARED Made a Run on the Bank on Its President's Other Misfortunes. Canton, N. Y., Jan. 26.-The High Falls Sulphite, Pulp and Mining company, assigned this morning. The plant is said to have cost $300,000. No schedule of liabilities has been filed. The proprietors claim that all banks holding their paper will be protected. Mr. Usher, president of the National bank of Potsdam, which closed its doors yesterday, was interested in the company. Mr. Brice, cashier of the National Bank of Potsdam, said to a representative of the Associated Press that the failure of the Pierce-Field Paper and Mining company started a run on the ank which they were unable to stand. He said the bank and its president. Mr. Usher, have been closely connected with the company, but the latter's failure would not have affected the bank if the depositors had not become alarmed. The bank was in better condition than for some time past, but did not have the ready cash to meet demands shop it. Bank Examiner Van Vranken
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BREWERY IN TROUBLE. Receiver Appointed for the D. G. Yengling Company, of New York. NEW YORK, Jan. 26.-Commodore Vetter was to-day appointed receiver for the D. G. Yengling Brewing Company, and J. Campbell Thompson was appointed referee to pass upon the accounts of the corporation. The appointments were made on the representations of directors, bondholders, stockholders and creditors of the concern, which has been in financial difficulty for some time. The immediate occasion of the action taken to-day was the sale of the real estate and buildings of the corporation on Twelfth street and Tenth avenue, on which the Mutual Life Insurance Company holds the first mortgage for $300,000. There is a second mortgage dn the property to secure an issue of $1,000,000 of bonds. of which $800,000 is held by John F. Belz, n uncle of David G. Yengling, the president of the company. The company owes Mr. Belz $96,000 for money loaned and $119,000 to John F. Belz & Sons, maisters, of Philadelphia. The other debts are small. It is hoped by those concerned in the steps taken to-day that a reorganization of the company can be effected which will permit of a continuation of the business, "The troubles of the company," said its legal representative, "are due partly to the legacies of debt from the old company, but mainly to the injurious effect on the business of the Raines law, which took away a large part of the trade, and involved the raising of considerable sums of money for payments of license fees in order to retain the balance." The receiver has been given authority by the court to continue the business so as to preserve the good will which is the company's most valuable asset. Sulphite, Pulp and Mining Company. CANTON, N. Y., Jan. 26.-The High Falls Sulphite, Pulp and Mining Company assigned this morning. The plant is said to have cost $300,000. No schedule of liabilities has yet been filed. The proprietors claim that all banks holding their paper will be protected. Mr. Usher, president of the National Bank of Potsdam, which closed its doors yesterday, was interested in the company. Mr. Price, cashier of the National Bank of Potsdam, said that the failure of the Piercefield Paper and Mining Company started a run on the bank which they were unable to stand. He said the bank and its president, Mr. Usher, have been closely connected with the company, but that the latter's failure would not have affected the bank if the depositors had not become alarmed. The bank was in better condition than for some time past, but did not have the ready cash to meet the demands upon it. Examiner Van Vranken, of the banking department, who was snowbound at Norwood. reached Potsdam. The schedule of the Piercefield Company will be filed at the clerk's office to-day, and will place the company's assets at $900,000 and liabilities $400,000.
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Bank Closes Its Doors. Gouveneur, N. Y., Jan. 26.-The National bank at Pottsdam closed its doors at three o'clock Monday afternoon. There was no run, but one would have been probable had this not been done. The officials of the bank state that all the depositors will be paid in full. The true condition of the bank cannot be learned until the bank examiner has made an examination, but it is believed that the statement of the bank officials will be borne out.
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Bank President Indicted. GOUVERNEUR, N. Y., Nov. 23.-The United States grand jury at Auburn has handed in a sealed indictment against Luke Usher of Potsdam, president of the national bank of that place which failed on Jan. 25 last. There are 11 counts in the indictment. The allegations charge Usher with misappropriating several hundred thousand dollars. At the time of the suspension of the bank it was believed that the trouble was only temporary. National Bank Inspector Van Vranken was appointed receiver.
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LATER NEWS. Heavy rains, snow and chinook winds caused washouts that blocked all railway traffic in western Montana for over a week. An engine explosion in the saw mill of John Woodward, at Ackerman, Miss., killed Frank Woodward, Jim Hempill and Fayette Norloin. Football games the 20th resulted as follows: Yale 6, Princeton 0; Pennsylvania 15, Harvard 6. New counterfeit ten-dollar bills on the National bank of Los Angeles, Cal., have been discovered. The steamer Victoria, sent out by the Norwegian government to search for Prof. Andree, has returned without finding any trace of him or his balloon. The floor of the Cory Methodist church at Cleveland, 0., collapsed, precipitating 500 colored "worshipers to the ground, a distance of seven feet. A panic ensued, but only three persons were hurt, and they not seriously. Forty-eight men were arrested in the swamps of Mississippi by United States inspectors on the charge of violating the alien labor contract laws. Patrick Conway went to sleep in a foundry oven at Trenton, N. J. A fire was started soon after, and he was nearly roasted to death before rescued. Fire among the warehouses of Melbourne, Australia, caused a loss of $5,000,000. Two very distinct shocks of earthquake were felt at Randsburg, Cal., but no damage was done. Angel Paz, the Cuban insurgent, who betrayed General Adulfo Castillo into the hands of the Spanish troops, was hung by the insurgents. The powers threaten to make a demonstration in the Dardanelles. The will of the late Henry George, filed for probate in New York leayes his entire estate consisting of the home at Fort Hamilton, worth about $8,000, and the copyright of his books to his widow. A masked negro attempted to hold up a street car in Kansas City, Mo. The gripman, E. O. Prowett, threw a grip hook at the highwayman, who instantly shot the gripman in the groin. Conductor G. W. Church came to his comrade's assistance and was shot in the breast being seriously wounded. The negro escaped. All the British prisoners held in Cuba have been released and all the Americans and French prisoners will be set at liberty in a few days. Motorman Theodore R. Merrick was was killed and Motorman W. E. Horner so badly injured that he died in a head end collision on the Baltimore & Northern railroad at Baltimore, Md. The officials say Merrick disobeyed orders. E. J. G. D'Albani, a clerk in the general offices of the Northern Pacific railway, committed suicide by jumping off the high bridge at St. Paul, Minn., into the Mississippi river. Rev. A. E. Morrison, Methodist minister at Pan Handle, Texas, was arrested by the police of Topeka, Kas., upon the charge of wife murder. Luke Usher, president of the National bank of Pottsdam, N. Y., which failed last January, has been indicted upon eleven charges. The allegations charge Usher with misappropriating $700,000. The large department store of D. Heenan & Co., Streater, III., was destroyed by fire. Loss, $250,000. The fire was caused by a lamp explosion. The presentation of a handsome silver service on behalf and in the name of the citizens of Nashville, Tenn., was made to the gunboat Nashville, at the Norfolk (Va.) navy yard. Mrs. Wm. H. Mason was burned to death at Baltimore, Md. The steamer Saratoga, from Havana, having on board the released members of the Competetiors filibustering expedition, arrived at New York. A party of insurgents attracked the Spanish outposts of Havana and a sharp engagement followed. The sounds of firing caused great excitement in Havana, as it is known that large rebel forces are quartered near the city. The large steamer Lackawanna, loaded with flour and merchandise, struck on Ballard's reef, near Amherstburg, Ont., and just as she got her lines out she sank forward in 18 feet of water. MARKETS. Minneapolis, Nov. 22. Wheat-No. 1 northern, 891/2 to 90c; No. 2 northern, 84½ to 85c; December,
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President Usher Indicted. Gouverneur, N. Y., Nov. 23.-The United States grand jury at Auburn has handed in a sealed indictment against Luke Usher of Potsdam, president of the national bank of that place which failed on Jan. 25 last. There are 11 counts in the indictment. The allegations charge Usher with misappropriating several hundred thousand dollars. At the time of the suspension of the bank It was believed that the trouble was only temporary. National Bank Inspector Van Vranken was appointed receiver.
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Indicted. Gouverneur, N. Y., Nov. 23.-The United States grand jury at Auburn has indicted Luke Usher, president of the National bank of Potsdam, which failed on January 25 last. There are 11 counts in the indictment. The allegations charge Usher with misappropriating $700,000. At the time of the suspension of the bank it was said that the trouble was only temporary.
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SUIT INVOLVING ADIRONDACK FORESTS. MRS. USHER SUING THE INTERNATIONAL PAPER COMPANY, FLOWER & CO., AND OTHERS, TO RECOVER $112,000. Potsdam, N. Y., Jan. 4 (Special).-A case of general interest in Northern New-York is being prosecuted by Mrs. Hannah E. Usher, of Potsdam, against the International Paper Company, the members of the firm of Flower & Co., of NewYork, and others, for $112,000 as damages alleged to have been sustained by her by reason of the conspiracy of the defendants to convert 341 shares of stock in the Piercefield Paper Company. Mrs. Usher is the wife of Luke Usher, the former president of the National Bank of Potsdam, against whom one of the defendants, Josiah Van Vranken, who is receiver of the bank, recovered a judgment for $18,000. Van Vranken held 341 shares of the Piercefield Paper Company stock as collateral security for this judgment, and Mrs. Usher says that he sold it to A. H. Lefebvre, an agent of Flower & Co., who in turn transferred it to Flower & Co., who transferred it to the International Paper Company. The stock was sold without notice or the knowledge of Mrs. Usher, she says, by means of a conspiracy engineered by Flower & Co. to deprive her of her great property in the Adirondacks. The Piercefield Paper Company was one of the largest properties acquired by the International Paper Company, owning more than 30,000 acres of spruce timber land in the Adirondacks. The Flowers and the International Paper Company made separate demurrers to the complaint. Justice Leslie W. Russell has overruled the demurrer of the Flowers, and Justice Kellogg has sustained the International company's demurrer. The Flowers and Mrs. Usher have appealed to the Appellate Division of the Supreme Court at Albany, and the appeals will be argued on Tuesday.
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CASE AGAINST USHER DISMISSED. Potsdam, N. Y., Jan. 18 (Special).-The indictment against Luke Usher, former president of the National Bank of Potsdam, for making false reports to the Controller of the Currency, was dismissed by Judge Coxe in the United States Court at Albany to-day. The case excited general interest in Northern New-York, owing to the facts that Mr. Usher's own property was lost in the bank failure, and his wife is now plaintiff in an action against the International Paper Company, the members of the firm of Flower & Co., and the receiver of the bank, who are charged with a conspiracy to convert Mrs. Usher's property to their own use, the damages stated being $112,154.