John M Masterton

John M Masterton (c1832 -)

Banker and Bankrupt

John M Masterton, the smallest child being held by his father in the painting, "Alexander Masterton and his Wife and Children" became a landowner in Tuckahoe, the land around the marble quarry exploited so effectively by his father. His foray into banking was conspicuously unsuccessful and his bank failed leading to charges against him and his junior partner of larceny. His later years appear to have been spent as superintendent of a marble quarry.

Genealogy

John M Masterton was the fifth child of Alexander Masterton and Euphenius Morrison. On 8th September 1857 he married Josephine A Mead and they had five children:

In the census of 1900 he is described as a Quarry Superintendent.

A fuller version of the genealogy of John's family tree can be found by clicking on his name.

New York Times

STOCK SOLD ON FALSE PRETENSES.

In the suit of John M. Masterton against James Boyce, tried before Judge Barrett and a jury, in teh Supreme Court, Circuit, a verdict for $37,125 was rendered in favour of Masterton yesterday. Judge Barrett also granted the plaintiff's counsel an extra allowance of $1,250. Boyce sold 1,600 acres of coal land to the Maryland Union Coal Company of Baltimore, accepting as compensation all but five shares of the capital stock of that corporation. He conveyed one-quarter pf the stock to John White, who put it upon the market of this City and sold it at $30 per share. The purchasers became dissatisfied and applied to Boyce for the return of their money, claiming that White was his agent, and that he had falsely represented that there were 350 acres of "big vein coal" land in the tract he sold to the Maryland Coal Company. Boyce denied the charge of false representation, and asserted that White was not his agent, but bought one-quarter of his stock for $287,500. Masterton, who purchased 1,100 shares of stock, is the first to obtain a verdict against Boyce.

New York Times
1 April 1882, p3

Meetings have been held in Mount Vernon for and against turning the swamp land north of the New Haven Railroad station into a park, a bill to that effect being now before the Legislature which calls for the appointment of five Commissioners. At the meeting on Saturday night last the following persons were appointed Park Commissioners: John M. Masterton, Gerd Martens, Charles H Willson, Dr. W.J. Youmans, and Henry Huss.

New York Times
12 February 1884

THE BANK DOORS BLOCKED...........WITH A CROWD OF ANXIOUS DEPOSITORS.....The East Chester Savings Bank Shown to be Sound - Masterton and Lucas - Suspicious Actions

The sun was not up sooner yesterday morning than depositors at the East Chester Savings Bank. Although the bank was not to open its doors until 10 o'clock, there was a crowd in front of the building long before 8 o'clock. A noticeable feature of it was the number of women and country folk it contained. These people not only blocked up the sidewalk in front of the door and more than half the roadway, too, but also packed the stirway and landing leading to the banking office, so that ingress or egress was impossible. The officers of the bank, when they arrived, struggled vainly to get through the crowd. Each person was there with the determination to hold his place in the line, and not one would budge an inch. Finally the officers had to improvise a means of entering from the rear of the building, and this they did by placing a ladder against an adjoining building, clambering over roofs, and forcing one of the back windows of the banking office. Despite the positive assurances of the Trustees, who are all leading men in the town, that the bank was perfectly sound and able to pay at once every dollar due depositors, the prevalent opinion was that at the last moment something would happen to prevent the bank from resuming payment; consequently when 10 o'clock arrived without the doors being thrown open there was very little surprise. On the contrary, there were a great many "I told you so's" and something like a wail of despair went up from the throats of those who, while dreading the worst, had hoped for the best.

It was to no purpose that the bank Trustees, men whose word ordinarily would have been implicitly relied on, told the people that the bank was ready to pay out the money, but that a Deputy Bank Superintendent was making an examination of the books and assets and had forbidden the opening of the doors until he could finish his work. The declaration was not believed; it was accepted simply as an excuse. Still the people kept their places. The crowd was at no time disorderly; it was inclined to be more sullen than clamorous. After a while a report spread abroad that the Bank Superintendent had found that the doors were to be opened with only $14,000 on hand; that he had said that sum was not sufficient; that Vice-President Clark had been hurriedly sent to New York with United States bonds to raise more money, and that on his return at 12:30 the bank would open. This report had the good effect of allaying the general anxiety somewhat, and the poor people who had been patiently, and it seemed fruitlessly, waiting for hours became a trifle more cheerful. One of the most active and assiduous defenders of the bank was a short, thick-set man, with a sallow complexion, a slightly Teutonic cast of contenance, and a decidedly Teutonic method of mutilating the English language. He had a shrill voice, which he always used in an exceedingly high key, and a dogmatic manner. He was also an aggressive man, and the way in which he elbowed his way from one place in the crowd to another and preached at the simple country people was as good as a comedy. He assured everybody that the bank was "all right," and one could not but infer that his private fortune was large, for he assured the crowd, individually and collectively, that he would personally guarantee the payment of every dollar. He was Town Clerk Gesheld.

All this while Deputy Bank Superintendent Josiah Van Vranken was busily engaged in examing into the condition of the institution. He reached Mount Vernon shortly after 9 o'clock, and when the Cashier, Mr. Bissell, proposed to open the doors at 10 o'clock, he said that it could not be done until he had examined the assets and securities. At this time the bank had about $14,000 in cash on hand and Vice-President Clark was mementarily expected with $32,000 more, which he had come to this city to raise on United States bonds. Mr. Clark reached the bank with the money about 10:30. About the same time Trustee Burr Davis arrived with $4,000 in small bills that he had driven over to Yonkers to get early in the morning. shortly after 12 o'clock Mr. Van Vranken finished his examination, and not only pronounced the bank perfectly solvent but expressed surprise to find its assts in such excellent shape for immediate availability. The doors were then thrown hope, and as the people rushed into the office Mr. Van Vranken told them who he was and assured them that they would get every dollar due them as fast as the officers could pay it out. The first depositor paid off was Ann Lang, who drew out $648; the second was Catherine M., Teeven, who took out $100, and then followed in the order named Kate Gegan, $128.06; Henry Rabe, $897.94; Ann Hovey, $1,635.67; Marion Huber, $49.00; Eliza Hunt, $212.24 and Margaret Dowing, $355.04. The last depositor paid off before the closing of the bank for the day at 6 o'clock was Amelia Stemler, whose deposit was $40.

Altogether, between 40 and 60 depositors were paid off during the three hours that the bank was open and the aggregate of the payments was $18,000. the Trustees have elected Second Vice President Joseph S. Clark President to succeed Masterton, and Trustee Gord Martens Second Vice President to succeed Mr. Clark. President Clark said the bank would not take advantage of the 60-day rule, but would pay out every dollar due depositors f demanded without any more delay than neccesitated by the clerical work involved. Arrangements have been made to turn all the securities into money as fast as occasion requires, and the bank has even had a cash offer for all its real estate liens at their full value. After the closing of the bank confidence, so far as it is concerned, was practically restored. It will be open as usual today. The indignation over the failure of Masterton's Bank is daily increasing in intensity, and there seems to be no doubt that criminal proceedings against both Masterton and Lucas will be speedily commenced. According to the gossip of the town the more the condition of the bank is inquired into the worse it appears, and the facts seem to justify the gossip. Another meeting of depositors was held in the Mount Vernon Hotel at 5 o'clock yesterday afternoon. About 75 persons were present. Grocer Jacob Holwigs, of New Rochelle, who had $7,000 on deposit in the broken bank, presided.

John Berry, of the committee appointed to seek information from Masterton, reported the result of the interview had with the gentleman on Sunday morning substantially as related in THE TIMES of yesterday. In speaking of Mrs. Masterton's ordering them out of the house, he said, she played the part of Lady Macbeth, and told them not to stand upon the order of their going but to go. As to Lucas, Mr. Berry said he believed he had been led like a lamb to the slaughter, and created manifest sympathy for him until the report of the Law Committee was read. Then the sympathy turned to indignation, and there were some strong expessions made. The Law Committee, through its Chairman, Judge McClelan, made a report in regard to their examination of the records in the office of the Register of Westchester County, which showed "that prior to the 8th inst. John M. Masterton was possessed of what is generally known as the marble quarry property in the village of Tuckahoe. This property comprises many distinct parcles of land, containing in the neighborhood of 50 acres. This property is now subject to a mortgage of $15,000, which your committee believe to be the full market value of it at the present time. This is all the property your committee has sbeen able to ascertain as belonging to John M. Masterton. From the records in the said office it also appears that on the 27th day of February, 1873 John M. Masterton and wife conveyed to Elias Dusenberry, and on the same day Elias Dusenberry and wife conveyed to Josephine A. Masterton the premises upon which he now resides and upon which has been erected his stone mansion and outbuildings. These deeds were evidently held by the said Masterton and were not recorded until the 3d inst. (four days before making his assignment,) when they were simultaneously recorded. Without expressing any opinion in this matter, we leave the depositors to infer the bona fides of this transaction.

"From the examination made in the Register's office as to Mr. Lucas, we find that the property where he now resides was conveyed some years since to May M. Lucas, and that said Lucas has now no interest therein. This conveyance was made in the year 1882, since which time Lucas has become possessed of four lots of land in the village of Mount Vernon. These conveyances were made by Sarah A. Anderson, Wilson Brown, Jr., and Henry Dykman, Referees. The property conveyed to Mr. Lucas by Mrs. Sarah Anderson is now incumbered by a mortgage owned and held bdy Mrs. Sarah Yarrell, to secure the payment of the sum of $5000, and also by two mechanic's liens, held respectively by Charles E. Raymond, to secure the payment of $1,100 and William Le Roy to secure the payment of $1000. The total liens against this property amount to $7,100 and whether Mr. Lucas's property will bring this amount we leave the depositors to judge. We learn further that on Sept. 21, 1883, Philip Lucas, Jr., executed to Henry C. Bissell, the Cashier of the defaulting bank, a deed of lot No. 872, a valuable lot in the village of Mount Vernon, and on the same date Mr. Bissell executed to Emma Lucas, wife of Philip Lucas, a deed of the same property. Both of these deeds were first recorded one half hour before the recording of the assignment on the 8th inst. It is a noteworthy fact that the wives of the assignors did not join in their assignments for the benefit of their creditors.

The report concludes by saying that the records of the Sheriff's office show that an attachment has been filed against the property of Masterton, both real and personal, for $298,000.85 in behalf of Samuel J. Harriott, Julius M. Noyes, and John P. Grubb, Jr., who claim to have lent Masterton that amount of money, to be used in buying the marble quarry. In obedience of this attachment Deputy Shefiff R. W. Edmunds yesterday attached all of Masterton's property, including his residence. It was said by some one in the meeting that Masterton had also transferred his Westchester Fire insurance Company stock a few days before his assignment. After empowering the Law Committee to begin criminal proceedings, if they see fit, the meeting adjourned, subject to the call of the Chair. It was said yesterday that two of Pinkerton's detectives had been shadowing Masterton's movements since Sunday morning and this report also gave rise, no doubt, to another report that a warrant had been issued for his arrest. Neither report could be verified.

New York Times
11 November 1884

HAS J.M. MASTERTON FLED.......A Rumor that troubles Mount Vernon Depositors............Promised dollar for dollar if they do not lose their head and rush into court.

A rumor that Banker John M. Masterton had joined the inumerable caravan which journeys to the sheltering realms of Canada caused the Mount Vernon depositors who gave him their money to his safe keeping a new source of uneasiness last night. A gentleman who got off of one of the afternoon trains out from the city declared that he had seen Mr. Masterton in Wall Street, and was told immediately afterward that he was making preparations to go away on a journey. A young man pulled back a glass slide behind an iron grating in the front door of the insolvent banker's house last night and declared that Mr. Masterton was then in his library reading. He added, furthermore, that the banker had not been away from Bronxville during the day, and that he had no explanations to make to the public until the schedule of assets was filed. It is hard to tell whether a schedule will be ready this week or not. Lawyer R. E. Prime, of Yonkers, is assisting Assignee Gifford to sort out and settle the miscellaneous collection of property turned over to him. The depositors cannot see how they are going to get more than $10,000 out of it anyway, including what was delivered up by Mr. Lucas, the junior partner in the firm. Of this, about $5,000 is in cash and $15,000 is in available securities. The rest is in mortgaged real estate of little value. The liabilities will certainly not be less than $125,000.

Mr. Masterton's arrest late Monday night caused considerable excitement in the town. Justice Shepard issued the warrant at the request of Charles Hendricks, the hotel keeper who telegraphed to the Fulton National Bank early Saturday morning to stop payment on a check deposited late the afternoon before, and found that the banker had been a little too quick for him. Mr. Masterton was charged with misdemeanor, based on fraudulent receipts of deposits after he was insolvent. Constable Woods drove out to the banker's house with a warrant in his pocket after most other people were in bed. The servant girl at the house proved quite troublesome, but he finally managed to get into the hallway. Mrs. Masterton met him by the stairs and he told her his business. "You can't have my husband," she said, running up the steps. "Oh, but I must," exclaimed the constable, following close at her heels. "Back, Sir, what right have you here?" said the banker's 21-year-old daughter, stretching her arms from the walls to the banisters, and bringing the constable up with a short turn. After a little trouble with the ladies of the house, he found Mr. Masterton lying on a lounge in a room up stairs. "I can't go with you now; I'm sick," he said to the officer. It was nearly midnight when Mr. Masterton, accompanied by his brother Alexander and Assignee Gifford, was hurried into the tumbledown Court House near the railroad track. Late as it was there was a large crowd of men, principally depositors, waiting for him on the street and in the hall. He waived examination, and the counsel had a wrangle over the amount of bail. Mr. Gifford thought $1000 was sufficient. Norman A. Lawler, who was looking after the property of 400 angry depositors, wouldn't listen to anything less than $5000. When he drew a lurid word picture of the rich banker speculating with poorer people's money and losing it all, right on the verge of a hard Winter, the crowd set up a howl that made the banker tremble in his boots. But he said nothing. Justice Shepard fixed the bail at $5000, which Mr. Masterton furnished, and then drove home again.

The case will probably come up before the Oyer and Terminer Court in White Plains early next month. Probably no more arrests will be made, at least not until after an adjourned meeting of the deositors, to be held next Saturday. The feeling in the town is very strong against Mr. Lucas, but the "law committee," as they term themselves, are looking closely into the dates of the property transfers before they do anything. Mr. Lucas was building a new house in the town. It had a five-thousand dollar mortgage on it, but he turned it over to his creditors. The house he lives in is in his wife's name. The depositors look upon it as very strange that while the deed of transfer was dated 1883 no record was made of it until last Saturday, the day of the assignment. Mr. Lucas's son said positively yesterday that his father had no intimation of Mr. Masterton's weak financial condition until 6 o'clock Friday evening. The son and Harry Bissell, the bank Cashier, went to Mr. Masterton's house the same evening and took the bank books with them. They claim to have had no intimation of the condition of affairs until they reached there. Young Mr. Lucas denied the statement that the checks deposited Friday afternoon and cashed early Saturday morning were placed in the hands of a special messenger. He produced books to show that they went through the mails in the ordinary course of business. Though Assignee Gifford could not be seen yesterday it was said at the broken bank that if the depositors would only be patient and not lose their heads in going to court they would get dollar for dollar. The depositors don't believe it. They feel themselves to be a very much swindled set of men. They think that if anything is left the suit for attachment will sweep most of it away.

The persons looking into the case have been unable to find out as yet what precipitated Mr. Masterton's failure, though they have reason to believe that it was principally unfortunate speculation in mining stock. They have discovered that he has several times been on the brink of the gulf, but always managed until now to avoid falling into it. It was reported yesterday that Mr. Lawlor had found where a twenty-thousand-dollar bet of Mr. Masterton's on Blaine's election was waiting the officail count, and that he was trying to get hold of it for the depositors. Mr. Lawlor declined to say whether this was or was not true. Mr. Masterton's bank was run on the same principle as Mr. Peck's bank, which came to such an unfortunate end in Patchogue, Long Island, last Winter. He was under no bonds. He has simply been a prominent man in the town for 10 years, contributing liberally to charities and figuring prominently in church affairs. He put out a sign asking the people to trust him with their money, and they unhesitatingly did it. They are quite willing to admit now that they made a mistake, but they won't accept the same paliating explanation of his speculative transactions. Nor will the depositors believe, assertions to the contrary notwithstanding, that the customers who withdrew their accounts on Friday afternoon did not hear a note of warning. the prompt manner in which the East Chester Savings Bank has met the heavy drain upon its resources has undoubtedly done much to allay a panic in the little town. Early yesterday morning working people with their deposit books began to form in line at the window. They did not stop until the bank and passed out $50,000, and saved itself $1,500 in interest money. President Clark said that after the run stopped the bank would still have considerable money to send back to the safe deposit vaults in this city. He was highly pleased with the demonstrated ability of the bank's soundness and the availability of its assets. Just before the bank closed, at 3 o'clock, some of the frightened depositors began to come back with their accounts. Mr. Clark took each book, scratched Mr. Masterton's name from before the word "President " and wrote his own there. A Director of the savings bank said yesterday that the board was always pretty thoroughly informed about its management, though it knew nothing about Mr. Masterton's personal affairs.

New York Times
12 November 1884

The Westchester County Grand Jury yesterday found true bills of indictment against John M. Masterton and Philip Lucas Jr., of the banking house of J. M. Masterton & Co., of Mount Vernon. They are indicted on four counts for larceny in the first degree for having received money from depositors when they knew they were insolvent.

New York Times
9 December 1884

Justice J. O. Dykman, holding a Special Term of the Supreme Court, at White Plains, yesterday granted an order to the Hon. Silas D. Gifford, as Assignee of John M. Masterton, the late banker of Mount Vernon, to sell all the real estate and convert everything into cash, to the end that a dividend may be declared for the benefit of the creditors, S. J. Harriot & Co., the bankers who had obtained judgement against Mr. Masterton for about $75,000, have waived this, and will come in with the other creditors of the broken bank in the division of the dividend.

New York Times
12 April 1885