The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-23
BANK FAILURE.
SUSPENSION OF ONE OF THE OLDEST AND MOST
TRUSTED MONEY INSTITUTIONS IN NORTHERN
NEW YORK.
[BY TELEGRAPH TO THE HERALD


lbf IELEIhAPh 10 IHE HEhALD
OGpENspupt n Y Jan o. 1879
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Judsons BANK one Oh the OLDEST oanAlhs ins'ieu-
tons in this section closed its doors here to-day.
This created great excitement from the fact that
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'onn ~ '"uson' 'n' PioPiie'oi' vas suppose" " 10
very wealthy. The bank was rated AL. and SO good
was the credit of the bank that many would not be-
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heVe I" hao suspenoeo 'iii 'hcy "en' ana Sd" 'ho
doors closed and read the notice placed thereon.
Five years ago David C. Judson. died. leaving
70 'onn D'' MS oro'nel' o'er sou"'ooo' Aies "efo
both in the bank together at that time. Since the
death of David c. Judson, John d. Judson, the
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Prese"' ProPrie'or' mas "" Luz" 'on'io. Va 'ne oAnA'
which has always been regarded as sound aud very
prosperous. Besides the Judson Bank there Is ONLY
one other bank in Ogdensburg. the Bank OF Ogdens-
burg. which is state institution. which does
not and has not Tor long time PAD interest
on deposits, while the Judson Bank has been
paying five and seven per cent The result was that
on deposit and was sort OF savings bank for tho
city, and nearly all citizens VINO had saved up their
earnings had deposited them there Besides TINS
class there arc many widows. orphans and people
out of business who had their money there.
large nuinoer Oh me,cnan.s anu vusiness men are
also caught, some with maturing obligations.
CAUSES on THE CRASH
The causes for the failure arc many One reason
is that the bank came INTO possession Oh large
amount of real estate at various times, which has
largely deprecated and is not worth ten cents on the
dollar that 1t cost then ConsideraDlc good
paper, too, has proven valueless. Another great
of deficit has been that the bank has been
paying too much interest deposits Something over
has been drawing interest at from ve to seven
for several years. and during these times II is
ofcoursc impossible to meet IT, - believed tnat IN
time the dcpositors Will receive their pay Dut tie
Is positively known outside; IL is bcileved that
there has been no criminal encouragement but that
the general depreciation pad debts ana some loose
ness of carrying on affairs has led to this result
The bottom facts cannot 90 arrived ~ TO- might. u
IL impossible TO get an interview with either Mr.
Judson or r.. n. Merriam, his casnier. Ihey arc
busy making an assignment, whch they propose 10
have completed tonight Inc asslEnees are To De r.
y. Merriam ana !. L. seymour. Mr.. Merriam mas
been cashier OK the bank only TWO months. nc was
appointed to NIL the vacancy caused ny the death OF
william Z. Armstrong. iofmcris cashier iof "A. l.
stewart 20 AZ thelr "noiesAic s'orc On Droa""aS'
stewart wiiico MN Fo,V'V. 'uuson h"" great coni
dence III Armstrong hnanciai aoil'ies anu aiio"eu
nm To run the business Oh tne oa aoou, US ne saw
NJ. After Merriam was appoihted ne, IN ,Verna"nng
the business done oy Armstrong, founa many DAD
securities.
. THE FhLuhh NriofAihp -,
ABOUT ,hc ISL o, sanuars 'nas m M ,r h, e al
OF lew persons interested IN ,ne oank, VINO sai0
little about IT, put proceeaeu wi'hou, uiay !" uraw
out what funds tncy nan oeposi'eu uere. S,mco
that time over sito,V~ nave been araw, GUY. inc
drain ON the pank was s'ealy ou' orc ,n"il c"uu
stand anu a'e YESTERDAY al'ernooh money on Sosks
ana PC was a - ,rard i" 81 nv, ns