New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-11
EAST SIDE BANK CLOSED
KILBURN TAKES ACTION.
Cashiers Tragic Death Causes Ram
on Cooper Exchange.

The tragic death OF George F. Knapp. cashier
Of the Cooper Exchange Bank. at No. % Avenue
A week ago. indirect cause OF the
closing Of the doors Of the bank yesterday by
order Of the State Superintendent Of Banks. An
examination had not proceeded far enough yes
+srdev TO show whether the bank was insolvent
or not. but there probably will be application
for receiver to-day. with a view Of winding UP
the banks affairs.
The bank was started about two years ago
xrith 6 capital Of 100000 and a surplus OF $780,
oOo Samuel Gotthelf president, and Theo-
so,e P Gilman, Republican leader in the 18TH
Assembly District. vice president. For a
YEAR the bank prospered. supplying the needs OF
a thtckly populated East Side district and hav-
ing deposits amounting to $610,OOO- The failure
az David Rothschild's Federal Bank. which had
=, East Side branch, created so much distrust
.ba+ the patronage Of the Cooper Exchange
Rsnt fell away until the deposits were less than
100000. Later the business Of the bank In
creased a little.
Mr.. Knapp. the cashier, had been connected
9Th the Ger7nania Bank, and he was trusted py
che managers Of the Cooper Exchange BANK
uutl complaints were made recently by some Oh
the depositors that their books were not
balanced properly. Early last week Knapp was
told that he would have to give up the'post OF
cashier. but that he would be allowed to remain
ga assistant On Wednesday morning he was
Killed by a fall from an upper story window OF
an APARTMENT house in West 9Ith-st, Where ne
lad lived with his wife and son.
rnA family said he complained Of vertigo
while dressing himself for breakfast and that
he leaned out Of an open window and lost ms
balance His son caught hold of one OF MS
fact II was said and held as long as posi-
bic. but was obliged to let GO and Mr.. Knapp
fen to the bottom of a court. his brains beins
dashed out
Mr.. Krapp's death caused fresh fright among
sbe denositors Of the bank. some of whom be
Ueved q report that he had committed SUICIDE
as a result OF a defalcation. President Gotthelf
declared that Krapp's accounts were straight
but many depositors began to withdraw their
money quietly. The bank had a system OF
collecting deposits of customers by runners
who made regular rounds. After Krapps death
the collectors did not receive much from the
tiulid depositors.
Bank Examiner Judson kept daily watch on
the bank ana noticed the steady withdrawal of
cash Yesterday morning he found that the
bank was without the necessary amount Of funds
to conduct the business Of the day. and at 10
O'clock he posted q notice on the doors. closing
the bank by order of Superintendent Kilburn
The runners out collecting at the time,
and when they returned with some thousands OF
cash they had difficulty in getting into the bank
Dir. Judson took charge of the money tney
brought IN, sending it with the banks otneT
cash to q trust company for saTekeeping. he
said that the money would oe returned to the
depostors possible.
Soon after the doors Of the bank were closed
the sidewalk blocked by an excited crowd,
in which were many of the banks eleven nun
bred depositors. Police reserves were sent from
the station IN 5th-st TO keep order and Captain
McDern1ott established lines 10 keep the side
walk clear. Some Of the depositors clamored for
their money, holding their banhbooks in their
hands and trying to break through the police
lines. When it became apparent that nobody
would be allowed TO enter the bank, however, the
& few policemen had no difficulty in keeping peo-
pie away from the doors.
Among the directors of the bank are Max
Schwartz Julius Lichtenstein, John II. Iden and
Morris H. Haynan. Schwartz, the proprietor Of
Little Hungary paid a visit TO the bank in the
afternoon and talked with Mr.. Judson. He said
later that all the depositOrs would be paid in
fun ard the stockholders would not lose much, IL
anything. Several of the large depositors who
made inquiries went away satisfied. Some of
them said they had been annoyed by the sudden
closing Of the bank without notice. they had
drawn checks on the bank early in the day which
would be returned to them President Gotthelf
was not at the bank, having sent word that he
I'll al his home, No p Convent-ave
The examination Of the bank will require a
weeks time" Mr. Judson said late in the after
noon. but there may be application for the
if all the depositors would be paid in full and
the stockholders get back most of their invest
inent The liabilities of the bank are about
S5S0000 and the assets about the same
amount i the paper is what it purpOrts to be
We cannot tell positively If all the loans made
All the money that paid in to-day will be re-
turned to the depositors soon as possible by
the receiver"