Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1882-12-28
CREASED RUIN.
The City Bank of Rochester, N. Y,
Compelled to Close Its Doors.
The Funds Used by Its Truly
Good President in Heavy Oil
Speoulations.
Something Like $3SO,OOO Missing, and
the Returns Not All in Yet.
Great Indignation of the Losers by
the Failure.

ROCHESTER, N. Y, Dec H.-The City bank,
rated as the third strongest in Rochester,
closed its doors yesterday morning The de-
hciency is said to approximate s5OO,oOO:
Great excitement prevails throughout the city
because of the interest of poor people in the
suspended institution No Investigation has
taken place as to the cause of the failure, but
it is freely claimed that Charles E. Upton.
president of the bank, has lost heavily in oil
and stock speculations.
Investigation shows that Upton used $780,,
900 Of the banks money with which to carry
on his oil speculations The bank held $780,
600 of deposits and sSOo,OOO in paper. Upton
was treasurer of the Western New York Epis-
copal diocese, and had its funds in his bank.
The small savings banks OF the city had large
deposits with Upton. All over the city the
excitement is intense and increasing.
j. B. Perkins, attorney of the bank and one
Of the directors, makes the following state
ment: "A month ago l considered the bank
sound The cause Il the failure was specu-
lation with the funds of the bank by
President c. E. Upton, in oil lately,
who has specialized to the amount of hun
dreds of thousands of barrels-2OO, 900
barrels, he said, for himself, and great deal
more for other parties not connected with the
bank. Two or three weeks ago there was
heavy fall in prices. He took money from the
bank to carry this. Immediately after that
the directors were informed that the checks
Of the City bank had been thrown out by the
American Exchange bank, of New York We
commenced investigating, and found every
thing in confusion. We wished Upton to make
. statement and he finally said he owed
about 81, 900 and had property of the value of
about $4,000, which he agreed to secure to
the bank His statement was indefinite as to
the amount of the debt and there was appar-
emit equivocation. l. P. Ross and myself went
to New York and saw the officers of the Amer
lean Exchange bank, They gave us such in
and carry Upton through and get in what
money we could. We came back and
got in what money We could. We
tried to furnish ourselves with ready
money Sunday: At a meeting of
ious conveyances on Monday at 10 o clock, but
did not do it Tuesday morning the directors
agreed to subscribe SlOO, OeO to go on with the
business, and let Mr.. Upton step out, we
thinking that amount would strengthen or
o'clock in the afternoon, and it was
then stated in the board that Mr.
Upton's liabilities to the bank in his
own name and those of the other
parties represented 1885,, 900. Upton then
executed mortgage on some property which
GOV and $1OO,OUO. We understand from the
statement made us that the deposits amount
in round numbers to 100000, and that the
bank holds about $780, 900 of paper, which,
outside of Upton's account we considered
would have been collectible at face value if
the bank had not been compelled to close its
doors"
Another Of the directors of the bank is a. c.
Roberts. He was at the Continental hotel yes
terdsy afternoon He said that the failure
was altogether unexpected. He could con-
ceive of no cause for it, excepting there might
have been run on the institution. President
Upton had bought 6OO,O 900 barrels of oil at 80
cent which he might have sold at Sill, Civ
ing him q profit Of about SlSO,OO0, but he
chose to hold on for s 20 per barrel, while
the latest quotations are about 81 cents. This,
Mr.. Roberts said, would still make
thought the depositors, knowing the extent of
President Upton's operations and the decline
which has taken place in the oil market be-
came alarmed and made the run on the bank.
From other sources it is learned that Mr.. Up
ton had large quantity @put" on him at 80.
MIR. Roberts, however, says that he is positive
that MIR. Upton did not have accommodations
from his own bank tc larger sum than $25,-
600 or $50, 900. The City bank has a capital of
500, 900, and is state bank, without any cir
culation. It's liabilities to its depostors will
amount to about s., 0OO, 0OO, all of which, Mr.
Upton is about so years of age His repu
tation has always been good Among other
positions Of trust he holds the office Of
treasurer OF the Protestant Episcopal diocese
of New York. He has represented that all his
property was in his own name. To-day deed
was filed purporting to be dated April 20, 1882,
in which he conveyed to his wife
property valued at $4,000 The indig-
nation among the stockholders and
depositors is great Upon refuses
to be interviewed, and Cashier Barnard, though
in the city, can not be found No one seems
to know anything about the books of the bank
1t is impossible to ascertain the names of the
heavy creditors. Among the heaviest yet
learned are the East-Side Savings bank, f14,-
QUO; Monroe County Savings bank, $4,000,
and Monroe county treasurer about $22, 600
It is probable that Upton will be arrested in a
few days.
Upton is . fast liver, and was member of
the Rochester club, the Rochester Driving
Park association, the Rochester Gentlemen's
Driving club one of the hackers of the Roch-
ester Baseball club in 1878 and 1879,
and held the stakes in the famous
Chautauqua rowing fzzle wherein Court
neys boat was sawed and the contest
had to be repeated in Washington to decide
who owned the $1,000 prize. Another bit of
Upton's history not generally known will be of
interest in connection with the failure Last
winter he was one of the several Rochester
bankers to form and enter a syndicate to bull
Hannibal Il St Joe railroad stock and realize
handsomely by heavy speculation.