The Metuchen National Bank, Metuchen, NJ (Charter 7754)
The Metuchen National Bank, Metuchen, NJ (Chartered 1905 - Liquidated 1934)
Town History
Metuchen (/məˈtʌtʃən/ mə-TUTCH-ən) is a suburban borough in Middlesex County in the U.S. state of New Jersey. The borough is a commuter town of New York City, located in the heart of the Raritan Valley region within the New York Metropolitan area. The borough, along with Edison (which completely surrounds Metuchen), is a regional commercial hub for Central New Jersey. The borough is 6 miles northeast of New Brunswick, 17 miles southwest of Newark, 20 miles southwest of Jersey City, and 22 miles southwest of Manhattan. As of the 2020 United States census, the borough's population was 15,049, an increase of 1,475 (+10.9%) from the 2010 census count of 13,574. In 1900, the population was 770, growing to 5,748 by 1930.
The decade of the 1890s was a period of expansion for public utilities. In 1894, telegraph service was begun and in 1897 telephone service begun by the N.Y. and N.J. Telephone Company. In the same year the Midland Water Company began operation and supplied hydrants for "newly formed" volunteer fire companies. In 1899, a new street lighting system was installed. At about the same time a bicycling organization was formed, the Metuchen Wheelmen, which lobbied for improved roads. Trolley service began in 1900. Metuchen attracted an influx of artists, literary figures and noted intellectuals during this time, acquiring the nickname "the Brainy Boro". One of the Borough's two post offices is named Brainy Boro Station.
Metuchen was incorporated as a borough by an act of the New Jersey Legislature on March 20, 1900, from portions of Raritan Township (now known as Edison).
Metuchen had two National Banks chartered during the Bank Note Era, and both of those banks issued National Bank Notes.
Bank History
- Organized April 28, 1905
- Chartered May 20, 1905
- Opened for business May 23, 1905
- Conservatorship March 18, 1933
- Liquidated April 25, 1934
- Succeeded by 13916 (Metuchen National Bank, Metuchen, NJ)
- Assumed circulation of 7754
On May 23, 1905, The Metuchen National Bank opened its doors for business. Charles L. Corbin was president, Robert D. Kent, vice president; and A.C. Litterst cashier. Before closing at 3 o'clock, $3,500 of Metuchen money had been deposited with Cashier Litterst. The bank occupied a small store, the entire workforce consisting of Mr. Litterst and his nephew, Charles E. Willich, a boy of 15 yrs. [NOTE: a featured biography is available for Robert D. Kent]
In February 1908, the new Metuchen National Bank building was nearing completion. It was adjoining the bank's original location on Main Street. The vault had been placed in the building and the carpenters were doing inside trimming. Electrical contractor V.P. Christofferson expected to finish on the 21st. John Noble Pierson of J.N. Pierson & Son, the well-known architect and terra cotta expert, designed the handsome $25,000 structure as well as public schools at Oak Tree, Fords, and South Amboy within the past year.
In September 1911, Frederick E. Barnard was elected president to succeed the late Charles L. Corbin. Robert D. Kent of the Merchants National Bank, Passaic was elected first vice president and Alexander C. Litterst second vice president. Roy C. Burr was elected a director to fill the vacancy caused by the death of Ralph B. Corbin, son of the late president. Mr. Litterst, the able cashier and backbone of the financial part of the brainy borough still retained his position.
In January 1923, the officers were Alexander C. Litterst, chairman of the board; Edward J. Drake, president; Robert D. Kent, vice president; A.C. Litterst, cashier; John M. Connor, Jr. and Ralph F. Noe, assistant cashiers. The directors were Roy C. Burr, William T. Campbell, Edward J. Drake, Iow R. Edgar, Robert D. Kent, Edward Kraner, A.C. Litterst, and George W. Litterst. A.C. Litterst had served as cashier since the organization of the bank and Robert D. Kent, that of vice president. The present bank building was erected in 1908 and was valued at $30,000.
In January 1933, all seven directors were re-elected at the annual meeting. The directors were: R.C. Burr, W.T. Campbell, E.J. Drake, Edward Kramer, James Lawless, A.C. and George W. Litterst. On March 18, 1933, Alex. C. Litterest was appointed Conservator by the Comptroller of the Currency. On April 28, the directors announced that after conferences with banking authorities, it was determined that it would be necessary to raise approximately $300,000 in order to reopen the bank. As soon as authorities approved the plan, full details would be provided to all concerned.
On April 19, 1933, Edward Judson Drake, 65, president of the Metuchen National Bank died at his home. Mr. Drake had been president of the bank for the past 10 years. Prior to that time he was engaged in a hardware and mill supply business in New York City. He resided in Metuchen for the previous 24 years.
On July 6, plans for reopening were outlined at a combined meeting of stockholders and depositors of the closed bank. P.T. Ruegger, president of the Lorraine Oil Company, who obtained federal approval of the plan, revealed details. Depositors would waive 50% of their deposits and a new bank would be formed with a new board of directors. New stockholders would purchase $125,000 worth of stock in the reorganized institution. A meeting of the depositors' committee would be called in a week at which time the plan would be submitted for ratification. Officers of the new reorganization committee were P.T. Ruegger, chairman, and S.C. Schenck, secretary.
The 3,500 depositors with $800,000 in frozen deposits were called upon to sign waivers for 50% of their deposits and to accept 10% of their deposits in borough bonds in denomination of $10. The balance or 50% of deposits would be paid in cash providing the reorganization of the bank was approved. Out of the segregated or slow assets, the depositors would be paid dividends as they were liquidated. The plan called for the issuance of borough bonds in the amount of $121,888, representing the amount of the borough notes held by the bank. The new bank would be known as the Metuchen National Bank with a capital of $100,000 and surplus of $25,000. The plan called for 1,000 shares of stock at $125 per share offered to present stockholders, depositors and the general public. A campaign was launched to quickly dispose of the stock to avoid delay in the reopening of the bank. The segregated assets would be trusteed and liquidated under the direction of Edward J. Kloster, Louis H. Meade, George J. Giger, G.C. Schenck, and John P. Remensnyder.
On Saturday, December 30, 1933, the newly organized Metuchen National Bank opened its doors for unrestricted business at 11 o'clock. At the end of the first day it was found that deposits exceeded withdrawals by exactly $1,000. Edward Kramer, a director of the new institution, made the first deposit. Only two withdrawals exceeded $1,000 with the largest $2,200. Depositors had their money tied-up in the bank since the moratorium in March and the opening freed up 60% of frozen deposits. Much credit was due to the efforts of Philip T. Ruegger, chairman of the depositor's committee. Mr. Ruegger was vice president of the new national bank. The president was Roy C. Burr, a former director of the old bank. For the past ten months the bank was operating on a restricted basis under the direction of cashier Alex. C. Litterst acting as conservator. J. William Griffith was made cashier of the new institution. The frozen assets were in the hands of a trustee committee and as thawed, dividends would be declared for the depositors.
On December 18, 1935, Trustees of the old bank began payment of a 10% dividend on waived balances, the book value of which was $311,380.78, equivalent to 40% of the total deposits of the old Metuchen National Bank. Trustees signing the notification were John P. Remensnyder, Sam C. Schenck, Sr., Edward J. Kloster, George J. Giger, and Louis H. Meade. A third disbursement was made on April 18, 1938. This third payment made the total distributed to date $124,551.49 or 40%.
Official Bank Title
1: The Metuchen National Bank, Metuchen, NJ
Bank Note Types Issued
A total of $1,246,750 in National Bank Notes was issued by this bank between 1905 and 1934. This consisted of a total of 159,344 notes (115,592 large size and 43,752 small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments 1902 Red Seal 4x5 1 - 1600 1902 Red Seal 3x10-20 1 - 1120 1902 Date Back 4x5 1 - 3250 1902 Date Back 3x10-20 1 - 2360 1902 Plain Back 4x5 3251 - 16185 1902 Plain Back 3x10-20 2361 - 9993 1929 Type 1 6x5 1 - 4140 1929 Type 1 6x10 1 - 1964 1929 Type 1 6x20 1 - 546 1929 Type 2 5 1 - 2520 1929 Type 2 10 1 - 1140 1929 Type 2 20 1 - 192
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1905 - 1934):
Presidents:
- Charles Lyon Corbin, 1905-1910
- Frederick E. Barnard, 1911-1916
- William Terry McAdams, 1917-1921
- Alexander C. Litterst, 1922-1922
- Edward Judson Drake, 1923-1932
- Roy C. Burr, 1933-1933
Cashiers:
Other Bank Note Signers
- F.E. Barnard signed notes as vice president
- There are currently no known Assistant Cashier bank note signers for this bank.
Wiki Links
- New Jersey Bank Note History
- General information on Metuchen (Wikipedia)
- General information on Middlesex County (Wikipedia)
- General information on New Jersey (Wikipedia)
Sources
- Metuchen, NJ, on Wikipedia
- Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
- Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
- Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
- The Courier-News, Bridgewater, NJ, Thu., May 25, 1905.
- Perth Amboy Evening News, Perth Amboy, NJ, Fri., Feb. 21, 1908.
- Central New Jersey Home News, New Brunswick, NJ, Wed., Jan. 19, 1910.
- Central New Jersey Home News, New Brunswick, NJ, Fri., Sep. 22, 1911.
- Central New Jersey Home News, New Brunswick, NJ, Sun., Jan. 28, 1923.
- Central New Jersey Home News, New Brunswick, NJ, Tue., Jan. 10, 1933.
- Central New Jersey Home News, New Brunswick, NJ, Wed., Mar. 15, 1933.
- Asbury Park Press, Asbury Park, NJ, Thu., Apr. 20, 1933.
- Central New Jersey Home News, New Brunswick, NJ, Fri., Apr. 28, 1933.
- Central New Jersey Home News, New Brunswick, NJ, Thu., July 6, 1933.
- Central New Jersey Home News, New Brunswick, NJ, Fri., July 28, 1933.
- Central New Jersey Home News, New Brunswick, NJ, Sun., Dec. 31, 1933.
- The Courier-News, Bridgewater, NJ, Fri., Dec. 6, 1935.
- The Courier-News, Bridgewater, NJ, Fri., Apr. 19, 1938.