The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-08-03
BROOKLYN BANK FAILURE.
A BANK PREsIDENT RUINED ny
PACIFIC MAIL sTOCK.

SuspenttOn OF tho Centrut BANK OIL brooklyn
-SSoo,vvJ Duc Gepositors and No Funds
Cause Of the Dirastcr-A Fortune sunk
Ciinging TO n sinking Stock-security of
the Depositors.
Brooklyn was favored yesterday with financial
sensation Of some magnitude. furnishing the
spiigbty evening newspapers Of that city with ma
tcrial for any number OF extras and prodigious
amount OF display heading. The occasion for this
excitement vas the suspension during the forenoon,
n the Central Bank Of Brooklyn, one Of the older
but smaller financial institutions Of the city. The
discovery Of the suspension was made In most
gradual and remarkably accidental manner, and
created no marked feeling beyond the circle Of
Brooklyn newspaper reporters and few interested
depositors.
HISTORY or THE D,NK.
Tie bank was organized in 1853 under The cd free
banking law ofthi. STATE and has continued In op
Grafton under that srranzltion until the present
time, with brief interval OF few days H. 1851,
when II temporarily succumboi in consequence of q
panicty run is then existing savings depart.
mont. With that brief exception the bank has al.
ways stood WE'LL though never, we believe, enjoying
very extensive patronage When the general sus-
pension OF specie payments occurred early during
tho late war; this bank called in its circulating notes,
and since then has never reissued them. It has
therefore notes now in circulation and of course
no losses 10 that direction are entaied by the aug
pension.
rus SUSPENSION.
The aggregate OF deposits In tho bank yesterday
morning vas about f3DO0O0, which isum repre- 'ents
the probable total Of the liabilities Of the institution.
During the forenoon additional deposits we're re-
ccivcd by the receiving teller, even. 1t is repnrted
Until after the payiuR teller mad pronounced his
money chest exhausted, and declared himself unable
to rcspurd to further drafts. But this probably
arose nom tho riesululion of the officers Of the
would
consequent fllurc to noilv the receiving teller to
rerrse de noss At about II o',lncl tho President
withdrew from the bank, confident that o stopDagc
must occur Immediately thereafter the suhor-
dint;cs were notified mat the bunk was ~ suspen-
sion, tie doors were closed. and no further business
was transacted Tee officers % the bank announce,
however that all money re- we'd from dero.iioi
hNinG been entered uron TIC books and formal y
place 1 In the custody ol the corporation.
TnE Assets.
To meet the other deposits the bank Is possessed
OF various items OF su'pouio1 paper, notes, short
loans &c, aggrcgaing about $4,000, and real cs-
tate and other securities estimated at S2J0,WO or
s00,OOO more, making a total Of between $iO0,VN
and s5OlOJ0 A little time will be required in
which to realize on tIcso assets but II is conf
IDENTIFY believed that every dopositor will be paid In
full, and at All early DAY.
THE IMMEDIATE CAUSE
OF this suspension the refusal Of their redcmp
ton agent In n city--the Marine National Bank-
IN honor sundry ovcrdraits made upon them on Mon
day. The hank was sorcly pressed IN that day, II
count in New York, though to what extent Il moi
known. Failing to make these overdraitS good yes.
!erday morning before banking hours, the Marine
National Bauk gave the usual notice through the
New YORK Clearing House that It would no longer
accept the drafts OF its unfortunate correspondent
On receiving this notice the banks of the New York
Association sent all the paper they Lold OF this ban
directly TO Brook n. Here 1t was honoreu. as men
toned above so long as funds held out ont un Tor
tuna;ely the funds were low and tno sloppaTe be
came necessary. This was the immediate cause o
the trouble, though by means the principal reason
mi fuf Tod lis lglA
| that seems to have been long impending.
TIE RIAL CAUSE
| OF the embarrassment o. the bank Is frankly admit
| ted by MIR JOIN X. rruyn, the President TO be hi
own Indebtedness to the institution. Mr.. pruyn wa
! one OF the oryina founders aud the nrst cashier q
the bank, position he held until ABOUT nine year
ago when he was elected President which oSise b
| the entire stock OF the bank and for u number U
wears has been iItrus;ed ALMOST exclusively with tn
man cement. lis has been verJ success ul operate
in BROOKLYN real estate, and has acquired large IN,
valuable property This includes the new Pos
ground on which It stands the adjonnl
| elegant building occupied BY SImuels's billiard ~
loon the lots in the rear of these facing on Adam
stree, an elegant mansion at the corner OF johnson
and Jay streets, and perhaps other property In De
| cember. 1864 Mr.. Pruyn bought between 1900 ant
5000 shurcs OF Pacific Mail stock at prices rangu
from w TO IFS. This heavy amount OF stock he Ia
carried until the present time, through all Its dc
| pressions, satisfied In his own mind, and HON tn
| best advice he could obtain, tlat its terrible IA
In price was attributable to no actual deterioration
In value, but merely TO the bearing operations of in
terested parties, ana that In due time 1t would re
| act to its legitimate price,
Instead OF tina, it has steadily declined il
price, until now 1t stands at less than i0 In the ef
fort 10 carry this stock Mr. Pruyn has borrowed tht
| funds Of tie bank TO the amount OF S2)l,uO0, sun
equal to The Total OF its capital and within 500 J
oI the gross of its deposits. THIS heavy drain upOi
ITS resources mas crippled the institution that
| has for some time been In a precarious condition
and now huds Itself no longer abe to bear the load
THE PRESIDENT roEs THE MARX.
|
| Pru} has manGuly rename! by the insttuuo
which his own misfortuues have crippled, ana wbe
| no longer able 20 keep u alnIt has made over to
the enirc OF bic valuable property, nclu liug eva
the furniture In his elegant manson. leaving himse
and family pennies His property is estimated t
all membranes which is rom ,lOo 700 to $50 ol
| more than his indebie iness to the bank. For III
Washington street property atone Nj irusn re
Gently refused an offer vi sSjO,OOJ Will The AiAul
street property was sold at one time .ur SO W,
Thus 1t VT be seen tina, depositoIs need apprehcn
no further Inconvenience tnIn u temporary delay /
| receiving their funds.
| APPOINTMENT OF A RECEIVER.
Yesterday Mr.. Pruyn, the President Mr.. John /
| Spader, tine Cashier aud Gen. CrOokc, all stucl
holders in the bank united in an application to III
supreme Court, tnrou III the latter a. attornoy ln
| an injunction and the appointment Of receiver
| Judge fratt granted the injunction and appoinie
MIR. Spader receiver II is action ~ taken N ~
| interest of all concerned, u ward of Atlacnncnt
ana afford all creditors OF the institution an eve
chance In securing their Claims.
SOME or Ius DEPosIroRs
| Brooklyn paper states that the city IL dcpo-
| itOr in the bank To the amount OF Sl6UUUO. IN
| city u depositor, though but IN a small sun
| George kunkc, butcher, corner OF Myrtle ayenu
and Adams stree, claims to have $35O0 In tine bank
| Cole Murphy, auctipncrrs, fulton street, are i
| Tor $4,000, according to their own report Samup
| McLuce, IA Fulton street. $22U; Willie Is JARVIS
| saloon kccper, adjoining the bank, from 5000 t.
| $3.50; TGonls Murphy, tl5,OOJ. IL IL rupvrte
| tAat Postmaster Booth has a Government acvuun
with the bank, but tins Is incorrect. lie may nav
private account there.
Tho stock OF this bank was sold at aUc. on Nv
| weeks ago tor lOl4.
Lock upon This Adavc aud upon Tint.