The citizen. (Honesdale, Pa.) 1908-1914, 1909-04-14
BinghamtOn. Deposit and
CaIIiC00n Banks Close.
SUSPENSION OFKNAPP BROTHERS
BinghamtOn trust Company in
Hands OF the State Banking
Depsrtment-Much Excite
ment Along the Upper
Delaware.

| Announcement of the closing of the
doors of the Binghamton Trust COM
pany and the suspension of business of
the Knapp brothers private banks at
Deposit and Calicoon, N. Y, on Friday
last, occasioned much surprise and re-
gret among many residents of the North
eastern coun,es OF Pennsylvania, and
Sullivan, Delaware and Broome coun-
ties in New York, whence most of their
deposits were derived. As yet no rea-
son has been given for the failure.
C.J. Knapp, the presidentof the Bing-
hamton Trust company is the we'll
known leader and owner of Knapp's
military band, which has national re-
putation. He was rated as millionaire,
and il is known that he is interested
largely in financial institutions in New
York state.
The Binghamton Trust company was
capitalized at $500, 900 and was suppos-
ed to be in fourishing condition. Dur
ing the past year the firm has advertis-
ed for patronage in the local newspapers
offering four per cent. for deposits.
When the crash came it caused quite
a panic among the investors, especially
in .Binghamton and Deposit where the
largest business was done. The institu-
ton had heavy depostors in Susque-
hanna and Carbondale, rumor having
it that at least 500, 900 of Susquehanna
money is tied up by the suspension.
There may have been some Honesdale
investors, but inquiry fails to reveal any
such losses as have been mentioned in
the newspapers. The Trust Company
was capitalized at $500, 900, and had de-
posts of over So, SOC, 900 in Binghamton
and the Depositand Callicoon branches.
A dispatch from Binghamton dated
April 9th, says that shortly before the
hour for opening the banks that morn
ing the Binghamton Trust Company
posted notice signed Clark Williams,
superintendent of banks, announcing
that the Binghamton Trust Company
was in the hands of the state banking
department. This was quickly followed
by the announcement that the Knapp
brothers, with private banks at Deposit
and Callicoon, had suspended payment.
The principal correspondent of the Bing-
hamton Trust Company issaid to be the
Chase National Bank, of New York. M.
w. Hutchins, chief examiner of New
York state banks, took charge of the
institution.
In statement given out by the board
of directors it was announced that the
closing of the Binghamton bank follow
ed the discovery of the insolvency of the
Deposit and Callicoon banks. G. J.
Knapp, president of the Binghamton
bank, is connected with those institu-
tions. They say that with the resources
at hand and the liability OF the stock
holders, they hope to pay all claims in
full and reorganize.
The Binghamton Herald says that
when James Knapp Reeves now of New
York city, but then of Deposit, and
Charles p. Knapp, of Deposit, decided
to became the publishers of the Outing
magazine, they sealed the fate of the
only bank in Deposit, the private bank
of Knapp Brothers and the only bank
of Callicoon, N. Y, also that of Knapp
Brothers, and incidentally they decreed,
without knowing that they did so, that
the Binghamton Trust Company would
close its doors on the morning of the
ninth day of April, 1909. Up to the
time the Deposit concern was establish
ed, the magazines were printed by the
Herald. But these men felt that the
venture was promising one and invest
ed large sum of money in a modern
plant. From the publication of the
"Outing," it was but a step to book
work, and then about three years ago,
the two newspapers of Deposit, were
purchased by the Wickwire Printing and
Binding Company, subsidiary corpor-
alton, and combined into one. Troubles
with the typographical union interfered
with the plans. Deposit anxious to OBJ
tain an industry gave loyal support.
The Herald further. states that from
small start the plant has grown until
it includes sixteen big cylinder presses,
six typesetting machines, an electrotyp-
ing foundry, an expensive book binding
plant and all the necessary materials
and fixtures to go with such an estab-
lishment. The plant occupies the origin
al pearl button factory, which has been
transformed by the touch of gold from
small wooden structure into a sub
stantial and handsome brick factory of
a modern and model kind.