gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3c7a3fe3a9d01d77
Response Measures
None
Events (3)
1.July 9, 1877Suspension
Cause
Bank Specific Adverse Info
Cause Details
Business depression and injudicious purchases of paper and investments in real estate led to insolvency and suspension.
Newspaper Excerpt
The Merchants' Loan and Trust Company suspended today. Cause of the suspension, business depression, injudicious purchases of paper and investments in real estate.
Source
newspapers
2.October 3, 1877Other
Newspaper Excerpt
Grand jury has indicted James F. Preston, Cashier of the suspended Merchants' Loan & Trust Co., for illegally disposing of the assets of the company after it closed
Source
newspapers
3.October 31, 1877Receivership
Newspaper Excerpt
Chancellor Runyon, of New-Jersey, has appointed E. Theodore Bell... receiver of the Merchants' Loan and Trust Company, to fill the vacancy caused by the removal of J. C. Todd.
Source
newspapers
Newspaper Articles (21)
1.July 10, 1877The SunNew York, NY
Click image to open full size in new tab
Article Text
Trust Company Closes Its Doors. PATERSON. July 9.-The Merchants' Loan and Trust Company suspended today The liabilities to depositors amount to $15,000 perfectly secured The stock hold is will realize about filty percent. Application has been made by the directors for a receiver The company was hartered as State institution about five Connecticut capitalists are largely interested in it The cause of the suspension WITH busitessdepres.on insudiclous purchases of paper. and investment 111 runi The capital was $200,000.
Business Embarrassments. PATERSON, N. J., July 9.-The Mer. chants' Loan and Trust Company suspended to-day. Depositors probably safe. The stockholders will lose heavily. The capital of the company was $200,000. Cause of the suspension, business depression, injudicious purchases of paper and investments in real estate. PATERSON, July 9.-The liabilities of the Merchants' Loan and Trust Company to the depositors is $45,000. Secured stockholders will realize fifty cents on the dollar.
Bank Suspension PATTERSON, N. J., July 9.-The - Merchants Loan and Trust Company sus pended to-day. The depositors will probably be safe. The stockholders will loose beavily. The capital of the company is $200,000. The cause of the suspension IS business depressi-n. injudicious purchases of paper and investments in real estate.
4.July 10, 1877Daily Kennebec JournalAugusta, ME
Click image to open full size in new tab
Article Text
NEW JERSEY. Suspension. PATTERSON, July 9. The Merchants' Loan and Trust Company suspended to-day. Liabilities not stated. Depositors probably are safe. Stock holders will lose heavily. The capital was $200,000. Cause, business depression, injudicious purchases on paper, and investments. Death. ELIZABETH, July 9. Col. J. W. Woodruff, the oldest officer in New York division of the Pennsylvania Railroad, died from paralysis yesterday.
5.July 10, 1877Chicago Daily TribuneChicago, IL
Click image to open full size in new tab
Article Text
FINANCIAL. PATERSON, N. J., July 0.-The Merchants' Loan & Trust Company suspended to-day. The depositors are proably safe. but the stockholders will Inse. heavily. The capital of the Company was $200,000. The cause of the suspension is business depression, injudicious purchases of paper, and investments in real estate. The liabilities of the Company to depositors is $45, 000, accured. Stockholders will realize 50 cents on the dollar. Special Dispatch to The Tribuna. TUNCOLA. III., July 9.-W. 11. Lamb & Brother, for ton years a leading dry-goods house here. closed their doors to-day. Liabilities about $05, 000. Assets ample to secure all creditors. Failure to realize from distressed duances the temporary cause.
6.July 11, 1877Ottumwa Weekly CourierOttumwa, IA
Click image to open full size in new tab
Article Text
Another Bank Broke. PATTERSON, N. J., July 9.-The Merchants' Loan and Trust Co., have suspended. The depositors probably are safe. The stockholders will lose heavily. Capital $200,000. Cause of the suspension is injudicious purchases of paper and investment in Real Estate.
7.August 9, 1877New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
DRAWING FROM A FAILING COMPANY. The cash account of the Merchants' Loan and Trust Company of Paterson, N. J., is short about $26,000. This institution collapsed on July 9. The next morning the teller of the bank made out a paper showing the amount on deposit to be $71,000. The Treasurer, J. F. Preston, made a statement showing it to be $45,000. This difference in the two statements could not be accounted for by the Receiver of the corporation. J. C. Todd. It has now come to light that a day or two before the suspension of the company some of the depositors were allowed to draw out various sums of mone y, which aggregated $26,000. It is claimed that they turned over to the bank stock of the Paterson Fire Insurance Company. which has since gone into the hands of a Receiver, claiming that the bank had agreed to purchase 80 much of the insurance company's stock, which they held in place of their share of the assets of the banking institution. It is not yet known who the perbe sons directly concerned are. but an investigation will made at once. It Is reported that some of the directors of the bank were engaged in this transaction. The Treasurer, Mr. Preston, claims that he did not know that it was an illegal proceeding to allow the money to be withdrawn in this way.
A Bank Cashier Indicted. PATTERSON, N.J., October 3.-It is understood that the grand jury has indicted J. F. Preston, Cashier of the suspended Mercbants' Loan & Trust Co., for illegally disposing of the assets of the company after it closed. Preston claims that his motives were to protect the best friends of the institution.
Bank Officer Indicted. PATTERSON, N. J., October 3-It is understood that the grand jury bas indieted J. F. Preston, cashier of the suspended Merchant's Loan and Trust Company, for illegally disposing of the assets of the company alter it closed Preston claims that his motives were to protect the best friends of the institution
10.October 4, 1877Chicago Daily TribuneChicago, IL
Click image to open full size in new tab
Article Text
INDICTED. PATERSON, N. J., Oct. 3.-It is understood the Grand Jury has indicted James F. Preston, Cashier of the suspended Merchants' Loan and Trust Company, for Ulegally disposing of the assets of the Company after It closed. Preston claims his motives were to protect the best friends of the Institution.
11.October 13, 1877Evening StarWashington, DC
Click image to open full size in new tab
Article Text
INDICTED FOR CONSPIRACY.-The Paterson, N.J., grand jury has indicted James F. Preston, the treasurer, and David Henry and E. K. Rose, two of the directors of the late Merchants' Loan and Trust Company, which suspended on the 7th of July last, for conspiracy to defraud the depositors and in removing assets after the failure of the bank for the benefit of themselves and other favorite directors and depositors.
12.October 17, 1877The SunNew York, NY
Click image to open full size in new tab
Article Text
Applying for 12 New Receiver. PATERSON. Oct. 16.-Onapplication to the ViceChancellor, all order was issued today to show cause on Monday next why a new receiver. vice J. C. Todd, should not be appointed for the Merchants' Loan and Trust Company.
THE EAST. The remains of the late Archbishop Bayley were buried at Emmettsburg, Md., on the 9th. The steamship England was seized at New York on the 9th by Collector Arthur on the charge of being connected with silk-smuggling frauds. The Susquehanna Coal Company's men at Nanticoke, Pa., resume work at 10 per cent. advance. Ex-Gov. Hendricks arrived at New York from Europe on the 9th. The Philadelphia Permanent Exhibition Company is insolvent and has appointed a committee to treat with its creditors, who are said to be willing to accept 50 per cent. Tweed's statement submitted to Atty.Gen. Fairchild a short time ago is made public. It contains the name of twenty-one Senators paid for votes or silence. An Oil City dispatch of the 10th says a 2,000-barrel well has been struck in the Bullion district. The Baltimore & Ohio Railroad Company has declared a 3 per cent. dividend on the main stemstock, This, with the former dividend of 5 per cent., makes 8 per cent. for the year 1877. The remains of Gen. Custer were interred at West Point on the 10th with military hon ors. The Federal Bank, of Allegheny City, Pa., suspended payment on the 10th. The suspension appears to be due to the fact that depositors wanted their money. The Lehigh Valley miners refuse to resnine work at less than 10 per cent. advance. The President, Secretary McCrary and Atty-Gen. Devens visited the fair at Frederick, Md., on the 11th, and met with a hearty reception, The Treasurer and Directors of the Merchants' Loan and Trust Company, of Paterson, N.J., have been indicted for conspiracy for removing the assets of the company after failure. A counterfeit fifty-dollar bill on the Central National Bank, of New York, has appeared. Tweed denies the substance of his statetrecently submitted to the Attorney-General in which he named many members of the Senate whom he had bought. The rates on West-bound freight from New York have been advanced 33 1/6 per cent. The Lehigh Valley Railroad Company's miners refuse to resume work without an increase of wages. Ex-Treasurer Parker, of South Carolina, was arrested in Jersey City on the 12th on a requisition from Gov. Hampton, charging him with plundering the State. Parker says he will turn State's evidence. The Boston Base-Bail Club won the champ ionship.
14.October 26, 1877Evening StarWashington, DC
Click image to open full size in new tab
Article Text
Change of Receiver. PATERSON. N.J., Oct. 26.-The chancellor has removed J. C Todd from the receiver. ship of the Merchants Loan and Trust company, because he was a director, and should have known the company's insolvency, and appointed Robert S. Hughes.
15.October 27, 1877The New York HeraldNew York, NY
Click image to open full size in new tab
Article Text
REMOVAL OF A RECEIVER. RTA30 Vice Chancellor Van Vliet has removed Mr. J. C. Todd from the position of receiver of the Merchants' Loan and Trust Company, of Paterson, because Mr. Toad was a director of the concern and was supposed to know of its insolvency, and all the directors were hable lor the deficit in the assets, it there is any. Mr. Todd's position would have been unfair in the event of a suit against the directors. No appointment has yet been made.
16.October 31, 1877New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
A NEW RECEIVER FOR THE MERCHANTS' LOAN. Chancellor Runyon, of New-Jersey, has appointed E. Theodore Bell, a well known resident of Paterson, receiver of the Merchants' Loan and Trust Company, to fill the vacancy caused by the removal of J. C. Todd. Mr. Bell has accepted the position, and will give bonds in $75,000.
17.November 16, 1877The New York HeraldNew York, NY
Click image to open full size in new tab
Article Text
SAVING A CHARTER. A number of prominent citizens are trying to prevent the Japse ot the charter of the Merchants' Loan and Trust Company, of Paterson. which confers some valuable franchises that cannot be obtained under the new State banking law. Over $40,000 of deposits are represented in the signers to the documents to relinquish their claims against the bank for this purpose. It is intended to remove the receiver and put the assets 1410 trustees' hands. The charter will expire so-any,
18.January 24, 1878The New York HeraldNew York, NY
Click image to open full size in new tab
Article Text
MERCHANTS' LOAN AND TRUST. The case of the Merchants' Loan and Trust Company was called at Paterson yesterday, when Mr. Woodruff, counsel for the State, arose and stated that Mr. Todd, late receiver, was absent from the city, and asked for a postponement, which, alter a lengthy discussion, was granted by the Court until Wednesday next.
19.January 25, 1878New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
INDICTED BANK OFFICERS IN PATERSON. The trials of the indicted officials of the Merchants' Loan and Trust Company, of Paterson. were to have been begun Wednesday, but as an important witness, Joseph C. Todd, the first receiver, could not be found, a postponement was asked. It was stated that Mr. Todd had gone West. Nothwithstanding the protest of Courtlandt Parker, counsel for James F. Preston, the case was adjourned undl next Wednesday. The cases of the other indicted directors were also adjourned. Mr. Preston was admitted to ball upon his own recognizance in the sum of $1,000, upon an additional indictment. It charges Preston and William F. Orcutt. the bookkeeper of the bank at the time it suspended, with making false entrie S in the books. and with embezzling the funds. Orcutt is now in Condecticut. but Governor Hubbard has refused to surrender him upon the requisition made by ex-Governor Bedle, of New-Jersey, while he was in office.
20.February 1, 1878New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
TWO BANK DIRECTORS ON TRIAL. The cross-examination of Joseph C. Todd, the first receiver of the Merchants' Loan and Trust Company, of Paterson, at the trial of Directors Rose and Preston, was continued yesterday. He testified that while be was receiver Mr. Preston gave bonds to the amount of $20,000 to secure the payment of all that he might owe the bank. Benjamin E. Bremner, a clerk in the bank. testified that a draft of the bank on the Fourth National Bank of New-York was protested July 6, 1877; he took an envelope to John Hopper July 7. and Mr. Hopper handed him two checks, one of Mrs. Jackson and one of Robert 1. Hopper the witness did this by direction of Mr. Preston the envelope contained two notes.
21.May 21, 1878The New York HeraldNew York, NY
Click image to open full size in new tab
Article Text
# THE DEFUNCT TRUST COMPANY.
In the Court of Oyer and Terminer, in Paterson, yesterday, another trial originating from the failure of the Merchants' Loan and Trust Company was given a brief existence. It was the case of the State vs. David Henry, who gave to the bank officials after its closing a four hundred-dollar check drawn by Mr. Wilson, for which he afterward received a note for the amount. The counsel for the defence contended that the Court ought to order a verdict of acquittal; that it was a legitimate transaction, as the defendant having deposited the checks after the application had been made for a receiver he was a preferred creditor.
Prosecutor Woodruff opposed the argument of the defendant's counsel, asking the Court to instruct the jury to acquit. The jury, on recommendation of Judge Dixon, returned a verdict of acquittal.
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.
