Union Banking Company (Philadelphia, PA)

Article Text

Suspension of is Philadelphia Banking House. PHILADELPHIA, May 1.-The Union Banking Company closed its doors this morning, and announced its suspension by a notice to the public pasted at the entrance of the bank This action is said to have been pre. cipitated by the cashier. James A Hill, who is charged with overdrawing his account to the amount of $20,000 Couse quent upon the closing of the doors of the Union Banking Company. the United States Banking Company of this city also suspended business to-day. The latter company resolved to wind up 11. affairs some time ago, and expected to satisfactorily accomplish thatend in it few days The sudden failure at the mon Banking Com pany, with which concern the I nited States Company was it depositor. has compelled the directors to announce a disponsion of business It IS claimed that the liabili tier of the United States Banking Company do no: exceed $6,000.

Article Text

Failures

S. H. Mountain, hop merchant, of London, has failed. His engagements are believed to be large. Burroughs & Wing, tobacco brokers of Richmond, Va., have failed; liabilities, $100,000 ; assets, debts,considerably short of that figure. The Union banking company of Philadelphia which suspended yesterday, have about $150,000 on deposit, which it is claimed will pay their debts in full. The United States banking company of Philadelphia, which was a depositor with the Union banking company, has suspended in consequence of the latter's failure ; liabliities $6,000.

Article Text

Another Bank Saspension

PHILADELPHIA, May 1.-Consequent upon the closing of the doors of the Union Banking Company, the United States Banking Company, of this city, also suspended business to-day. The latter company some time ago resolved to wind up its affairs, and expected in a few days to accomplish that end. The sndden failure of the Union Banking Company, with which concern the United States Company was a depositor, precip. itated matters and compelled the direc. tors to announce the stoppingofbusiness. The liabilities of the United States Company do not exceed $6,000.

Article Text

PENNSYLVANIA Court Matters

PHILADELPHIA, May 1. Proceedings looking to the recovery of over one hundred and fifty millions of dollars are about to be instituted in the courts of Pennsylvania, by the heirs of Col. Henry Becker, who died in 1801. Suspension. The Union Banking Company on Chestnut St., closed its doors this morning. It was discovered the cashier James A. Hill, was a defaulter, for ever $25,000. The bank goes into liquidation under an assignee. The depositors will be paid in full. Consequent upon the closing of the doors of the Union Banking Company, the United States Banking Company, which was about to wind up its affairs and was a depositor in the Union company, has also suspended. Its liabilities are said not to exceed $6,000.

Article Text

General News

The Cape Season of 1877 was openyesterday by an excursion party of between seven and eight hundred persons to Sea Grove, Cape May Point Improvements are going forward all around the Cape from Sea Grove to the Stockton House. Rev. John Lancaater Spalding, of St. Michael's Catholic Church, in New York was yesterday consecrated bishon of the new diocese of Peoria, III., at St. Patrick's Cathedral, New York, with impressive ceremonies, Cardipal McCloskey presiding. The Mayor and common council of Elizabeth, N.J. gave a serenade and reception last night to ex-President Grantat the residence of A. R. Corbin. Gen. Grant. wife and sister have been spending a few days there. They go to Morristown, N. J., to-day. The Pottsville (Pa.) Miner's Journal daily and weekly, with book and job printing office, was sold yesterday to close the estate of the late Col. R. H. Ramsey. The purchasers were P. W. Sheafer. Frank Barter and W. R. Cole The latter has been manager since the death of Col. Ramsey, and will continne the management of the paper. The funeral of the late ex-Senator Brownlow took place at Knoxville, Tenn., yesterday the O'Conor Guard, a performing commanded escort by duty. Confederate On Saturday officer, morning prior 10 the ex-Senator's death his son, Col. John Brownlow, returned home from Washington with kind y messages from President Hayes and Secretary Sherman. The Union Banking Company of Philadelphia has gone into liquidation it being discovered that the cashier James A. Hill, has overdrawn his account over $25,000. The deposits amount to about $150,000, and it it is stated will be paid in full. The Unit 1 States Banking Company, which was a depositor with the Union, has also suspendod but its liabilities are not believed to exceed €6,000. The celebration at Louisville, Ky., last night in commemoration of PresiHayes's action in withdrawing the troops from the Southern Bates and thereby allowing the people to be governed by those of their own choice, was a great success. The city building and large numbers of private residence were beautifully and brilliantly illuminated and the entire population manifested the greatest enthusiasm. The celebration was non-partisan.

Article Text

BANK SUSPENSION

PHILADELPHIA, May 1, 1877. A slight ripple of excitement has been caused on the street to-day by the closing of the doors of the Union Banking Company, No. 310 Chestnut street, The failure of the bank is generally attributed to the existing depression in business and the absence of demand for money at paying rates, but the immediate cause is a heavy defalcation, estimated at $53,000, on the part of the cashier, James A. Hill. Mr. Hill has been for some time using the money of the bank for speculations in Reading and Pennsylvania Railroad stock, and has met the fate of many another operator. It is beneved that Hill's defalcations have been known for some time to the bank officials, and ineffectual efforts have been made to cover the amount. The Board of Directors met last evening to consider the condition of the bank, and, after much deliberation, is was resolved that unless they could raise $100,000 before ten o'clock this morning the bank must go into liquidation. At seven o'clock this morn. ing the directors met again. when it was stated that the bank had been unable to secure the money neces. sary to insure the payments of the checks, drafts, &c., that might be presented during the day, and 11 was resolved that the doors should be closed and an assignee appointed. In accordance with this resolution the following notice was posted ai the entrance to the building:UNION BANKING COMPANY PHILADELPHIA, May 1, 1877. To THE PUBLIC:This bank has closed for business and has gone into liquidation. JAMES A. HILL, Cashier. Mr. N. C. Musselman, the president, and Mr. William Brice, of the firm of Wubam Brice & Co., general commission merchants, were made assignees, ASSETS AND INDEBTEDNESS. The assets and liabilities of the Union Banking Company, as stated in round numbers by the president this morning, are as follows:-

Article Text

A PHILADELPHIA BANK-FAILURE

Special Dispatch to The Tribune. PHILADELPUIA, Pa., May 1.-Another wreck of the Jay Cooko storm came ashore to-day, when the Union Banking Company closed Its doors. It was a small, irresponsible Institution, which the General Banking law permits to exist. though It has been rich. Organized In 1808 with only $50,000 capital, it had in four years deposits amounting to $2,500,000. The day after Jay Cooke's failure it paid out $1,000,000 and stopped. Next day It reorganized with $500, 000 capital. and was doing well till when it Into recently, got order, and other banks cashed its checks as soon as they could. Its Cashier. John A. HIII. la a defaulter to the amount of $25,000 but the bank is almost eight times as much behind hand. with liabilities of $142,000 beyond its capital stock of $300,000. The United States Banking Company, which went down with it, was a little affair organized Just be. fore the panic, which had almost finished liquida. ting its debts.

Article Text

BANK FAILURES, The Union Banking Company, of Philadelphia, closed its doors on Tuesday last, after a chequered career of eight years. Chartered by the State of Pennylvania in 1869, it was the first State Bank which opened in Philadelphia after the National banking system had superseded the old State system. It rose to unexampled prosperity in a short time. With only $50,000 capital it obtained a line of deposits in 1872 amounting to $2'400,000. It was tumbled over by the panic following Jay Cook's failure, but it rose again with increased capital, paid its depositors in full, and in a brief time was again on the road to seeming prosperity-but it was all as unreal as a dead sea apple. In the lan" guage of Mr. Rogere, the President of the Tradesman Bank, in Philadelphia, whieh we quote from the Evening Telegraph: "The Union Banking Company was one that was not recognized by the National banks, as. it had adopted the pernicious ystem of paying interests upon deposits. I is very sure that, in order to do this they must go on the stock market, in order to enable them to doso, and that of itself is a very dangerous way of doing businness. There is a rumor that Mr. Hill, the cashier, is a defaulter to the amount of $20,000-but even if true, and we are informed by pretty good authority that it is not so; it would not account for the suspension of the bank. The reason is very plain, it paid more for money to its depositors than could be made out of the dcposits without incurring great risks. While the company was paying 4 or 5 per cent. to their depositors, whole blocks of money could be had on Third street at the same, or even lower rates. Bank officers assume very grave responsibility, and they should be especially careful not to pay more for money than can be obtained for it, when prudently and safely loaned. They who continue to do so, are morally, and with the notice of every day failure, from such a system of banking, individually liable to the depositors, who deal with a bank.

Article Text

perous From the Philadelphia Press was caused in the business part Excitement of the city yesterday Banking by Company. the announcement doing bus street, that the Union building. 310 Chestnut told ness in Gibson's do rs. The story was briefly and had half-sheet closed its of paper pasted on the door, by bearing the following inscription: UNION BANKING COMPANY | PHILADELPHIA, May 1,1877 the JAMES Liquidation. This bank Public has closed for business A and HILL has Cashier gone into These preparations for going by the into officers liquidation of the the bank that were conducted first so quietly intimation dealers with the when they apInstitution had of its failure after was the beginning peared before the building saw the notice. business hours and sides of the of on both then The pavement thronged. Now and bank street was soon with a check or excited individual. struggle through an his hands. wovld demand book in the entrance and angrily Presithe crowd to reporter called upon the admittance. C. dent the peculiar was informed of the bank, that Mr. N. Musselman, necessary circumstances pre- and which rendered a suspension an interview. It him from permitting hatthesus vented nscertained from other recent stock WHA be attributed to the speculations who, his account to pension cashier. Mr. must James on Third A. Hill. street the having amount by lost In of heavily overdrew of regaining his footing. $25,000. in the hope failed, and made full conthis last venture the he President, Mr. Musselman A fession to of Directors was held yesthe run meeting terday raise sufficient morning. of the Board funds and to finding withstand when it Mr. impossible Hill's trans; likely to to be made upon the bank they determined should be made public, therefore made an actions liquidation. and Musselman to go into Mr. Musselman Mr. for the assignment to of Mr. Hill as a defaulter. had he did not speak might have recovered himself large cashier appropriate a sufficiently his nechosen to that he overdrew Amount It he is said had securities to make it good. count but by when a sudde IT flu tuation of value 8 lost every thing at on assets are about $30,000 in $44,500 cash Among the checks: $33,000 city sixes: bonds and certified Railroad stock: $14,000 ennsylvania (estimated at 10-day's first-class value). and Its bills mortgages receivable are mostly Among of the liabilishort busin 888 paper National Bank. ties ie $35,000 to Girard three times the covered by collateral to First for National Bank covamount: $15,000 about $28.00 Sherif by collateral. and by collaterals ered which is also covered Sheriff can Neither Wright, of these institutions nor will the probably be to able refund Jose a dollar. to The the assignee depositors every dollar ther and three months will their money something within left for the stockholders. be From the Philadephia Times The friends of Mr. Hill assert of that the dir about he was persuaded by one who was March 1 Banking company. the tors of the Union of the dire of at that time one Company to in invest to New Jersey 1,000 Central shares Railroad of Central. the verbally director promising was the and at that him. Mr. that Hill time unloading the very the stock immedihaving made the purchase lost $12,000 by the special lation and ately tumbled and in the lurch by his mis in order to make hmmerf bank whole, leader: having lost some $2,000 privat of the means of his annaviva money. in in R ading and P in began ceutating was heavily bitten. resulting a now using. was nia, loss and ban whose exceeding money th 1: is at said also amount that not the failure bid caused by finan. cial man large amount the of bills under the ueles or at least bills discounted under the head of unpaid the 496,000 every dollar of which worthless, should be $200,000. no-half of the of 1873, having and the created been carried since. suspensi It is further said holders. yesterday that at am largest ste kholder appointing protest I: man resident afternoon against the arranged and William Br of the directors not only places the whole will blame The upon other Mr. story Hill. but also intimates be much that greater his defal the am admitt by him. went into busic corner than The Union Banking company of Fourth and ness Chestnut at the str ets. southeast under a Stat charter in securing on Aug. 1. 1868 and rapidly posits in period a corlarge busin 2,100,000, enjoying at this high as over four hundred country respondence with of anymoneyed institution in banks. the largest the day after the failure of Jay the city. But September 1873. it went Cooke & Co., in in which in one day down after run upon it of the same 1.100.000. I November from it paid reorganized with its in and one-half it But its before the its try ing are William & M . M.A M. M oi of of Bonafton 236 office Dobbins, Building a small Banking Company, doing ment affair of the Union building Telegraph sits who Tenth with Banking Company said to hav been Its doors imme liat ly upon hearing of the latter ending.

Article Text

BANK FAILURE IN PHILADELPHIA

WHOLESALE SPECULATION AND EMBEZZLEMENT IN THE UNION BANKING COMPANY-ARREST OF THE PRESIDENT, N. C. MUSSELMAN. PHILADELPHIA, May 3, 1877. Since the Union Banking Company closed 1ts doors on Tuesday morning. with an indebtedness of $742,000 to its depositors, stockholders and other creditors, there have boon many rumors as to the extent of the "irregularities" that have precipitated the suspension, and it was very widely said, as stated in the HERALD of Wednesday, that the cashier. Hill, was not alone the guilty party, but that the president of the bank, Mr. N. C. Musselman, was en leavoring to make u scapegoat ot Hill, his former associate in speculative transactions. Mr. Hill was so angered by seeing himself announced in the newspapers as the sole cause of the suspension by his defalcation on the authority of Mr. Musselman that late yesterday afternoon he made an affidavit upon which Alderman Toland issued u warrant for the arrest of Mr. Musselman. He was taken into custody last night at bis residence and released under $10,000 bail to appear this alternoon for a hearing. THE CASHIER'S AFFIDAVIT. The affidavit of Mr. Hill declares the President to have been engaged in a series of "crooked" transactions for a year past, using the funds of the company in stock speculations, taking the profits, If any, for himself, while the losses were placed to the account of the bank. CONTRADICTORY STATEMENTS. Several of the clerks in the bank state that Mr. Musselman was at first in league with Hill, and the speculative trausactions with the funds of the bank, but that be afterward drew out. On the contrary Mr. Musselman and his friends give a statement in which they declare that It was not until a few weeks ago that the President discovered the irregularities of his Cashier, and induced him to contess, promising, for the sake of the cashier's large family, that it he would reform he would arrange with tho directors so that the bank would carry him along, and the defalcation, which then amounted to $10,000, would be quietly made good without an exposure. Immediately afterward, however, Hill was discovered in another stock speculation, having lost $15,000 by going "long" on Penusylvania Railroad stock at S9, and being sold out-"slaughtered" by failing to continue his margin at 30. Upon this a meeting of the directors was held at Mr. Musselman's house. followed by a second consultation last Monday evening. at which Hill defiantly admitted that his cash was short $24,500. MALICIOUS CHARGES. Mr. Musselman denies the statements in Hill's affidavit and claims that the charges were put upon him to prevent his acting as assignee and to stave off a settlement. The hearing was postponed till Monday.

Article Text

NORTH WESTERN NEWS.

The municipal election in Louisville resulted in heavy democratic gains.

The Indian Journal reports the grasshopper eggs very generally destroyed.

Another fire occurred in St. Louis, Wednesday morning, with a loss of $2,000.

St. Louis has issued $411,000, five per cent. gold bonds, to redeem its indebtedness now due.

A complete map of the Cumberland oil belt has been issued by Mr. C. L. S. Mathews, of Burksville.

A fire in Cincinnati on the 2nd instant, destroyed a carriage factory. Loss about $60,000; insured for $35,000.

The Geneseo house, Geneseo, Illinois, was burned on the 2nd instant. The loss was about $38,000, of which about $5,000 was the property of boarders.

Senator Davis, of Illinois, it is said, is anxious to espouse the greenback cause with the three and one-half per cent. interest convertible bond of Kelley as a platform.

The loss of the United States by the respective failures of the United States banking company, and the Union banking company of Philadelphia, is stated to be $6,000.

The merchants and hotel keepers of Muskogee, Indian territory, have agreed to have travelers, who are crossing the territory, transferred across the Arkansas river, free of charge.

A game of base ball in St. Louis, last Wednesday, where fifteen innings were played without scoring a run on either side. The St. Louis Browns and Syracuse Stars were the nines.

Governor Hartranft, of Pennsylvania, has issued a warrant for the execution of the Molly Maguries, Edward Kelley, Michael J. Doyle, John Donahoe, Thomas Manly and Lanaha Lucerne on the 21st of June.

It is being considered by some Cumberland county parties whether the eastern capitalists, who have secured leases in that county, mean to sink any wells within any reasonable length of time.

Reports from northwestern Indiana contain descriptions of the cyclone in that state on Saturday last. Houses were blown down, barns, fences and everything was scattered. There are no reports of death as yet, though many persons were badly injured by flying timbers. The loss is estimated at fifty thousand dollars.

The Ohio legislature adjourned Friday, having recently passed the following laws: For the consolidation of the militia laws; to make rowdyism on street cars a misdemeanor; to levy a dog tax of one dollar, to assist in reimbursing for the loss of sheep killed by dogs; to allow railroad companies to issue preferred stock; to give laborers a first lien upon the property of any corporation for unpaid wages; to elect county auditors for a term of three years; to allow suits to be brought within the state against parties residing in other states, but can be secured within the state when garnisheed.

Article Text

FINANCIAL

NEW YORK, May 5.-William Foster has made an assignment for the benefit of his creditors. Liabilities, $455,000; assets, $83,000. SAN FRANCISCO, May 5.-Hubbard & Co., stock-brokers on the Big Board, suspended today. Their assets are claimed to be in excess of their liabilities, and they expect to resume in a week or two. PHILADELPHIA, May 5.-In the case of the Union Banking Company, which failed several days ago, the Court of Common Pleas has vacated the appointment of Musselman and Brice as Assignees, and appointed the Fidelity Insurance Trust & Safe Deposit Company. The bill of complaint alleges that the assignment made to Masselman, the President, and Brice, was made against the votes of the resident stockholders, and that they assumed possession of the property of the Company. An officer of the Fidelity Trust Company, however, states that the Company would not accept the trust.

Article Text

UNION BANKING COMPANY

PHILADELPHIA, May 5.-In the case of the Union Banking Company, which failed several days ago, the Court of Common Pleas has vacated the appointment of Musselman & Brice as assignees, and appointed instead the Fidelity Insurance, Trust and Safe Deposit Company. The bill of complaint alleged that the assignment made to Musselman (President) & Brice was made against the votes of the resident stockholders, and that they assumed possession of the property of the company. An oflicer of the Fidelity Trust Company, however, states that that company would not accept the trust. SUSPENSION. SAN FRANCISCO, May 5.-Hubbard & Co., stock brokers of the big Board, suspended to-day. Their assets are claimed to be in excess of their liabilities, and they expect to resume in a week or two.

Article Text

BROKEN BANKS

DIFFICULTIES OF THE UNION BANKING COMPANY OF PHILADELPHIA. PHILADELPHIA, May 7. 1877. The Fidelity Insurance, Safe Deposit and Trust Company to-day formally refused to accept the receivership of the Union Banking Company. the institution which suspended last week on account of bad management and fraud on the part, as is alleged, of the President and Cashier. The appointment was made by Judges Thayer and Briggs, on a petition of certain creditors who desired to have N. C. Musselman, the accused President, and William Brice, a d'rector, ousted from the assigneeship. Now, that the F1delity company has reiused to serve. it is probable an or der of the Court will be issued for a meeting of stockholders to choose a receiver. The President of the brokeu bank. Mr. Musselman. was to have had a hearing this afternoon on the charges of embezzlement and mismanagement which were preferred by the defaulting cashier, Mr. Hill, who objected to being made a scapegoat and "peached" on Mr. Musselman. But the accused. who was represented before the magistrate by Mr. Lewis Cassidy, waived a preliminary examination and gave bail in $10,000 for his appearance at court.

Article Text

THE EAST

Three hundred thousand dollars in gold coin was shipped to Europe from New York on the 1st, and the same amount on the 2d. Senator Blaine was re-elected Chairman of the Maine Republican Executive Committee, on the 1st, making the eighteenth year of his Chairmanship. The Union Banking Company of Philadelphia failed on the 1st and goes into liquidation. Its Cashier, James A. Hill, is a defaulter for over $25,000. In consequence of the failure of the Union, the U.S. Banking Company also suspended. A part of the roof of the new Postoffice at New York fell, on the 1st, while men were removing supports placed under it while making repairs. Three men were killed and three injured. The State Democratic Convention of Pennsylvania will be held at Harrisburg, Aug. 8. On the 1st Gov. Hartrantt issued warrants for the execution, June 21, of Andrew Lanaha, of Luzerne County, Pa., for the murder of Capt. Reilly, of Wilkesbarre, and the Mollie Maguires, Edward Kelly, Michael J. Doyle and John Donohoe, of Carbon County, and Thomas Munly, of SchuyIkill County. Senator Woodin was before the Tweed Investigating Committee at Albany on the 2d and denied ever receiving a consideration for any vote or action for the benefit of Wm.M. Tweed or anybody associated with him. The New York Petroleum Exchange was opened on the 2d. Thomas S. Lambert, President, and Alexander J. Reid, Actuary, of the Popular Life Insurance Company, have been indicted at New York for swearing falsely, as alleged, to the statements of the standing of the company. Indictments have also been found against Luther W. Frost, President, and S. P. Rogers, Secretary, of the Continental Life Insurance Company, upon similar grounds. Gov. Fairbanks has reprieved John P. Phair until April, 1879. Gen. Grant was at Morristown, N. J., on the 2d, the guest of Thomas Nast. A New York dispatch of the 3d says Tweed has promised to supplement his "confession" with additional revelations. In compliance with what he supposed to be Charles O'Conor's desire, Tweed made a statement for him, accompanied by thirty-two checks and four notes. These latter, signed by Richard Connolly, were indorsed by Tweed and aggregated $265,000. Seven of the thirty two cheeks aggregated $700,000 and were given to Sweeney, Hugh Smith and Van Vechter, the Albany lobbyist. The statement in the hands of the AttorneyGeneral, besides what has been already pubished, shows in detail the manner in which bills were doctored by the ring after coming from the Supervisors. New charges would be interlined between the original items and he totals changed to correspond, so that a bill of $100,000, as certified from the Super-

Article Text

NORTHWESTERN NEWS.

The municipal election in Louisville resulted in heavy democratic gains.

The Indian Journal reports the grasshopper eggs very generally destroyed.

Another fire occurred in St. Louis, Wednesday morning, with a loss of $2,000.

St. Louis has issued $411,000, five per cent. gold bonds, to redeem its indebtedness now due.

A complete map of the Cumberland oil belt has been issued by Mr. C. L. S. Mathews, of Burksville.

A fire in Cincinnati on the 2nd instant, destroyed a carriage factory. Loss about $60,000; insured for $35,000.

The Geneseo house, Geneseo, Illinois, was burned on the 2nd instant. The loss was about $38,000, of which about $5,000 was the property of boarders.

Senator Davis, of Illinois, it is said, is anxious to espouse the greenback cause with the three and one-half per cent. interest convertible bond of Kelley as a platform.

The loss of the United States by the respective failures of the United States banking company, and the Union banking company of Philadelphia, is stated to be $6,000.

The merchants and hotel keepers of Muskogee, Indian territory, have agreed to have travelers, who are crossing the territory, transferred across the Arkansas river, free of charge.

A game of base ball in St. Louis, last Wednesday, where fifteen innings were played without scoring a run on either side. The St. Louis Browns and Syracuse Stars were the nines.

Governor Hartrauft, of Pennsylvania, has issued a warrant for the execution of the Molly Maguries, Edward Kelley, Michael J. Doyle, John Donahoe, Thomas Manly and Lanaha Lucerne on the 21st of June.

It is being considered by some Cumberland county parties whether the eastern capitalists, who have secured leases in that county, mean to sink any wells within any reasonable length of time.

Reports from northwestern Indiana contain descriptions of the cyclone in that state on Saturday last. Houses were blown down, barns, fences and everything was scattered. There are no reports of death as yet, though many persons were badly injured by flying timbers. The loss is estimated at fifty thousand dollars.