The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-01-25
BANKING HOUSES CLOSED
Binghamton Agitated by Serious
Financial Troubles.
MYSTERY OF THE VALLEY BANK
Cashier and President of the Institution
Caught Carrying Papers Away from
the Bank at an Early IIour--Ex.
aminer Backus Despatch.
BY the United Press.

BY the United Press.
Binghamton, n. Y, Jan. 24.-The
Chenango Valley Savings bank and the
National Broome County bank closed
their doors today. A run was started
on the Binghamton Savings bank and
the Binghamton Trust company and
continued throughout the day.
At both banks the officials say they
have sufficient funds to pay every de-
positor in full, and more currency on
the way. Officers of the Chenango Val
ley bank state that there are sufficient
securities in the hands of the bank eX
aminer to pay every depositor in full
and leave Il good surplus. The only
trouble appears to be that the books
are badly mixed up and need a thor
ough strengthening.
The closing of the Broome County
bank was a voluntary act on the pant
of the officers. as they feared a run,
the bank being unprepared to meet it.
The affairs of the National Brocme
County bank We're not in a condition to
compel the suspension Of the institu-
tion.
The bank, however, did not take the
precaution to prepare for run. Soon
after opening yesterday morning three
heavy demands We're made upon dts
funds. This crippled the bank and the
doors were closed. An examination Of
the affairs of the institution shows lhe
bank to be perfectly solvent, as the as
sets exceed the liabilities. The liab!li-
ties are Sil5.5SS; assets SSH, 800.
The closed banks are located in the
basement of the Phelps Bank building
Tracy K. Morgan was cashier of both
banks, which We're virtually in one
except that separate books were kept
for each, one being regulated by the
national banking laws, and the other
was regulated by the state banking de-
partment. David Brownson, son-in-
law of Mr.. Morgan, Is president of the
National bank. Benjamin n. Loomis
is vice president of the Savings bank.
The name of the president is not given
on the books.
That Basket Of Papers.
Much excitement was caused by the
announcement that Tracy r. Morgan
and David BroWnSOn had been detected
carrying papers from the Chenango
Valley Savings bank about o'clock
this morning. The story told by the
police is to the effect that they have
been instructed by the bank eXamin-
ers to watch the institution and see
that nothing was removed during the
night or after the regular closing hour.
This morning at o'clock, Mr.. Morgan
paid visit to the bank and spent some
time inside.
Afterward he walked to the grocery
store of David BrCwnson, block away,
and both gentlemen returned to the
bank with large basket. Mr.. Brown
son entered the bank through the Chen
ango street dor and Mr.. Morgan went In
the front dor. Whey they came out
they carried the basket filled with
| papers. They walked up Chenango
street and We're stopped at Henry street
by officer Heath. He asked the gen.
temen what they had in the basket
They told the officers that they We're
private papers. The officer ordered
them returned to the bank and a
dispute followed but the officer insisted
and the papers were returned. These
documents. it is claimed, are private
! papers to which the parties had "a per.
feet right
Recorder Roberts was interviewed to.
day and he corroboratcd the state
ment that the documents removed from
the bank were private papers, bpt the
action of the gentlemen has created
suspicion.
Albany, n. V, Jan. 2i.-The following
dispatch from State Bank Examiner p
| II. Backus, at Binghamton, was re.
ceived at the state banking department
! this afternoon:
| Have closed Chenango Valley Savings
bank: defalcation by Treasurer Morgan
! the cause and fun extent not known
| Delalcatlon confessed Broome County
National bank, in same room, has sus'
| pended. Morgan Is cashier. Burglary OF
| vault attempted about 3 a. IN. by Cashier
Morgan and President Brownson, of Ma
| tonal bank prevented by detective whom
! | had engaged.
| Examiner Backus was seen by re.
porter of the United Press this after
noon, and made the following state
ment in regard to the condition of af-
| fairs in the Chenango Valley Savings
| bank:
81 never have examined books that
were in as bad a condition as those OF
the Chenango Savings bank. 1t will bt
several weeks before statement car
be made
Examiner Backus alleges that Mr.
Morgan was asked to produce his state
ment showing the financial condition
of this bank. and that he was unable
to do so. Mr.. Backus could give no es
innate as to what the bank would pay
to depositors. He said further that he
believed the Broome County bank Is In
condition to pay depositors in full
Great excitement prevailed here today
among the depositors of the bank.
AFFECTS MANY SOLDIERS.