New-York tribune., 1909-04-10
TRUST COMPANY HIT
PRIFATE B1NkERS FAIL.
Upstate Concerns Controlled by
Knapp Family Close Doors.

Bingharnton y Y. April a.-The Binghamton
Trust Company capitalized at $4,000. and knapp
Brothers, private bankers having offices IN Deposit
and CaIlicoon. \. Y. suspended operations TINS
morning In a statement given out to-day Preei-
dent Charles J. Knapp Of the Binghamton Trust
Company, said that the suspension OF the Bihg-
hamton company followed meeting Of the beara
Of directors last night At which time it was de-
cided to place the institution in the hands OF the
State Banking Department. Chief Examiner NJ ".
hutchins arrived this morning and took charge OF
the trust company.
President Knapp stated that the suspension of the
company due to the inability Of knapp
Brothers to meet obligations. The emoarrass-
ment Of this firm. he said, due to an cverioan
to the Outing Publishing Company. Of Deposit
The bank examiner is unable make estimate
the and liabilities until he has gone over
ali the securities The directors Of the bank an
nounce to-fight that il will be reorsanlzed and the
deposftors paid fun. When the bank closed its
doors it had more cash on hand than at any other
period Of its history, but il thought best 10
place the bank in the hands of the state depart
nnent under the law passed last year. thereby
avoiding probable and the possibility that
securities would have to be sacrificed.
The deposits Of the Bnghamcon Trust Company
are over SS,eolO3 The Knapp Brothers bank Al
Deposit has deposits Of about $45ot) ana their Cal
Itcoon bank about $4,000 Much of the paper from
,., .,e,.soH 4nl Canigoon banks had been taken
IL the Binghamton Trust Company.
The Binghamton Trust Company has capital Of
S3o00 surplus Of S31TCOo. and its stockholders
arc 500 more believed that the loss
the company could reach $4,000 before the
dspost0rs would lose cent. Unless conditions are
found be much than expected, it is thought
that the losses viii be $4,000 or $4,000
Ex-Congressnan Charles J. Knapp is president
Of the Bnghamton Trust Company. and his son
Percy IS cashier. and his nephew Charles p. Knapp
managed the Deposit and CaIiicoGn banks. These
and several other members Of the Knapp fami-
TN0 TT1riD9 of he
pany.
Albany. April a-The failure Of the Bingham;on
Trust Company was surprise to the State Bank
ing Department officials. The company. through
IFS president. {. J. Knapp and F. P Knapp. cash
Ter. filed report with the department recently in
compliance with call issued hy the department To
trust companies. giving their condition Of March
Is last. The report gives the total resources and
liabilities S.SS4 2S5 -. Under the law enacted
last year the Superintendent Of Banks has power
TO liqudate the institution allow It 10 resume
operations.
Clark Williams. State Superintendent Of Banks
said last night that his department had taken pos
session Of the suspended Blnghamton Trust Com
but that he had received only report dur
ing the day and could speak authOrtatiyely
regarding the suspension.
The bank department inspects companies under
its control twice year. and the last inspection
OF the Binghamton Trust Company its affairs were
iouId 10 De in perfect shape. This fact appears
10 give yerihcation reports that the trust COM
panys embarrassment Is caused by the Insolvency
Of subsidiary concerns that do not under the
authority Of the State Superintendent OF Banks
II is expected that the affair 81 the company VIII
he Hquidated within short time and at very small
cost TO the stockholders and depositors.
In the case Of the Home Ha X OF Brooklyn. the
first instance under the law enacted last year.
forty-tUo DAYS was all that required for li1ul-
dalton and the cost only s. 80 This has been
II all 4.1lfaF
which the state department has superseded the
rec5iNerships current under the DID law. The
law closely resembles the federal system. and i'm
partial critics declare that u = a decided success
The publication Office oF The Outing Magazine
issued by the Outing Publishing Company is De
post. y y. the editorial being Nos. and
"a Vest 3lst street, this city. According the
Corporation Directory for 1853 charles =. Knapp Is
president and James Knapp Reeve secretary and
Charles P. Knapp. James Knapp Reeve. j. Henry
Harper and Allan C.. Hoffman are directors Of the
compart.