New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-25
AN AGED BANKERS GRIMES.
TWO INSTITUTIONS WRECKED
B1NGHAMToN DEPosIToRs IN PANIC.
THE BROoME COUNTY NATIONAL BANK AND THE
CTiENANGO VALLEY SAVINGS BANK CLOSE
THEIR DOORS TRACY r. MORGAN,
CASHIER OF EACH BANK. con-
FEssEs STEALING 100000.
rBY TELEGRAPH TO THE TRIBUNE.

CASHIER OF EACH BANK. con-
FEssEs STEALING 100000
rBY TELEGRAPH TO TRIBUNE1
Binghamton y. Y. Jan. H.-Binghamton
is confronted with a grave financial crisis. FOL
lowing upon the sensational failure OF the ROSS
family of bankers and the Merchants state
Bank, Monday, this morning was announced
the suspension OF the Broome County National
Bank and the ChenangO Valley Savings Bank,
both In the same building. ID. l.. Brownson is
president OF the savings bank and Tracy X
Morgan treasurer. This morning before day
Eight they were seen to enter the bank by side
door, and a few minutes later emerged with
big basket full Of papers and books. Detective
Stephenson and Policeman Heath had been IN
structed the night before by Bank Examiner
Backus 10 watch the bank from the outside. and
when they saw Messrs. Morgan and Brownson
come out with the basket they followed them.
As both bank officials well-known men, OF
high standing the policemen were loath to deal
arbitrarily with them, and allowed them to go
several blocks with their burden. Then Stephen
son spoke TO Mr. Morgan. requesting that he re-
turn the books and papers. heated argument
followed and the policemen were finally Obliged
to force Morgan and Brownson to return at the
muzzle of a revolver They returned to the
bank and then one Of the policemen informed
Examiner Backus Of the occurrence. At gl5
o'clock. shortly after the time for opening the
bank the examiner declared the institution In
solvent and ordered the doors closed. The
Broome County National Bank also closed up. as
the officials feared run. Brownson and Nor
gan are also president and cashier. respectively
Of this bank
The news OF the suspension spread Ike Wild
fire and when the news OF the attempt to steal
an a az created
All the other city banks were bes.eged with de-
posltors all day long and although prepared for
the run II is a question Of how long their cash
on hand will hold out. The Broome County Ma
tional Bank was the repository for the city and
county funds. amounting In all 10 nearly 100000
But the sensation Of the day. however. was
reserved until this afternoon when Treasurer
Morgans confession 10 Examiner Backus was
made public The Tribune correspondent saw MT
Backus and learned that Morgan had confessed
1, embeZZling nearly 100000 and also 10 forgery
on several occasions lie has changed the bank
records made false entries and erasures. ana his
cmbczzlenent had caused the wreck OF the saw
ings bank Examiner Ba, kus said he had hardly
looked into the books before he saw tnat there
had been crooked work. Hc accused Morgan II
defauiing but he denied IT, Later on when
more proof came up the bank official was forced
ark4uNlfGGr
confession to the Examiner las; night. and this
morning his evident intention when removing
the BOOTS was 10 cover up the OF his guilt
When the Examiner discovered the true state
of affairs he forbade Morgan and Brownsoi
be a, the bank Their entrance this morning IS
nothing shor, Of burglary. and this with Morgans
confession Of stealing gives sufficient ground for
a criminal action against them both.
Mr. Morgan is seventy-ninc years old and has
been one of the most respected citizens OF Bing-
hamton. He IS OF the trustees Of Christ
Episcopal Church. He served the city one term
as Mayor Mr. Morgan was also prominent
odd Fellow. and. indeed. was custodian OF the
Binghamton Lodges funds TO the amount OF
$4,000 The lodge contemplated building IA
chapter-house with this but II Is feared that ms
populations have been extended 10 this sum.
Morgan refuses TO see any one
These bank failures are the nrst In the history
OF the city. and the effect will be that business
for years Will be- paralyzed. over $4,000 OF De-
posltors' money is tied up In the savings BANK.
and as most Of IL belongs 10 the poorer classes
the hard times will be still harder for them
The four detunct banks carried H,500,OO In de-
posis.
The run upon the Binghamton Savings Bank
was heavy and the crowd OF anxious dcpositors
incrca sed with the hours. but the bank was
prepared COR the emergency. The officers, pale.
but cool and composed. stood behind the heaVy
plate glass windows surrounded by plies OF
shining gold and silver. They had protected
themselves with large amount or cash, ana
during the day teegrams were received , Iron, IRON,
metropolitan banking institutions To the erect
that they would support the Binghamton banks
FOR unlimited amounts.
Soon after the opening OF the National
Broome County Bank to-day there were heavy
demands upon It's funds. one OF the nrst OF
these was for $1,000 made by George Pierce.
Soon after. r. NJ Ticrney withdrew n deposit
OF 81 600 and ihis was followed by n dran FOR
81 900 made by General +. f. Jones Then the
doors were closed.
The last statement made BY the bank SHOWS
the following hgures
Liabilities Deposits. s3e7.5Oo; redIscounis. sSoS7;
Assets Customers paper. snicoo cash. $1,000;
overdrafts. $500. due from other banks. NiVV'
total Sl.J0
Tracy X. Morgan cashier OF both banks
which were virtually In one except that separate
books kept for each. one being regulated
by the National banking Law and the other was
regulated by the State Banking Department.
Brownson is president Of both banks. and is the
son-n-law of Mr.. Morgan benjamin y. LOOMS
Is vice president Of the savings bank.
Albany. Jan. A-The following dispatch from
State Bank Examiner Philo II. Backus at Ring-
hamton. received at the State Banking De
partment this afternoon:
Have closed Chenango Valley Savings Bank; DEF;
extent not known books in bad condition; not
written or posted; dedication confessed broome
pended; Morgan is cashier. Have wired supeTin;;
isndeni Preston in fun to NswYork and. and not,asd tTGm
both Burglary OF vault attempted about m.
by Cashier Morgan and President Brownson, OF Ma
tiona Bank: prevented by detective whom ! had
engaged.
Washington Jan. 2-Controller Eckes has
ordered Bank Examiner vanvraken to assume
charge Of the National Broome County Bank OF
Binghamton New-York which closed It's doors to
business this morning. The bank has capital
OF 100000 and had a reserve OF $4,000. No Of
fetal statement OF Its condition has been received
here
A PROVIDENCE FIRM IN DIFFICULTIES.
Providence Jan 24-The Kent Stanley Com
pany. a large manufacturing corporation here. has
addressed circular letter to its creditors ar
nouncing present inability to meet maturing pay