New-York tribune., 1909-05-20
BANKS FUNDS FOR BAND
MUSIC'S PART IN FAILURE.
Knapp Brothers Crash Partly Due
to Entertaining Ne5c Workers.

Entertaining New Workers is said TO have
been one Of the causes that helped bring about
the failure on April of the Binghamton Trust
Company and Knapp Brothers. private bankers
Of Deposit and Callicoon. The southern tier bank
ing institutions had liabilities Of more than 81 ooo
cn The fact has Just come to light that Charles
P. Knapp. manager Of the Deposit and Callicoor
banks. the angel for the Knapp band
which in the last years gave many concerts in
this city. His loss in backing this venture is est-
mated close to S750o
Band music a fad with Mr.. Knapp, but he
backed the band which bore his name in the hope
that he would be able ultimately to make it
financial success. It this band that played at
the Belasco Theatre on Sunday nights for
three months last year Charles P. Knapp took
the band 10 TIE Taf: inauguration. and had a fine
time with II in Washington. He played in the
Deposit band twenty years ago
Knapp Brothers backed the Outing Publishing
Company. whose printing plant IS at Deposit The
Binghamton Trust Company. Of which ex-Con-
gresham Charles J. Knapp president, lent
hundreds of thousands Of dollars to Knapp
Brothers, who in turn spent it on the Outing Pub
fishing Company
The appraisal Of the Outing plant gives it an
estimated value Of $4,000. and this has been
added So,eo as the value Of the good wil Of out
ing"
The failure OF the Knapp Brothers was one OF
the wTost in the history Of the Southern Tier It
looks now II there would be nothing for the
creditors at Deposit, the home Of the brothers
Inc CalICO0n branch had about S59.o@ on nanu
when the crash came, and a sharp fight is being
made 10 compel the receivers 10 distribute this
among the depositors there
The deposits the Deposit bank aggregated
about S450 600 and those CaIcoon S35oeao. Even
81 the entire $4,000 goes the Calicoon depositors
the dividend viii be less than per cent. There
practically cash assets in the Deposit bank
when il failed.
The Binghamton Trust Company had capital Of
Ssea.oa0. and the time or the failure surplus
Of $4,000 and its stockholders are liable for SSN-
ooo more. The loss 10 the trust company is said
10 be than ODa and il is understood here
that the directors Will order assessment to cover
his loss. There was prospect the week Of the
failure that the trust company would be reorgan-
ized, but the latest reports from Binghamton indi
cate that this viii not be brought about
In Deposit the creditors say that there is no
doubt that The bank was insolvent for years.
Deposit National Bank, founded by Charles Knapp.
expired II Is now believed that Knapp Brothers
did not care 10 submit the affairs Of the bank TO
the scrutiny Of the National Bank examiners, which
would have been necessary TO gel new charter
The charter was allowed lapse and Knapp
Brothers. as private bankers kept with the
business. The reputation Of the knapps had been
so good for seventy-lve years. from the founding
Of the house by Charles Knapp. that the depositors
generally speaking. remained with the new firm
IT was believed for time before the crash
that Charles P. Knapp was backing various unsuc-
cessful business ventures, but the fact that he
sropped in the neighborhcod Of $1,000 in backing
band which entertained New York City audiences
viii be a sad surprise TO the creditors in Deposit
and Callicoon-