12019. Merchants Bank and Trust Company (Winston-Salem, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 27, 1926
Location
Winston-Salem, North Carolina (36.100, -80.244)

Metadata

Model
gpt-5-mini
Short Digest
277389bc

Response Measures

None

Description

The Merchants Bank and Trust Company closed its doors in April 1926 and was subsequently placed in receivership (Wachovia Bank & Trust named permanent receiver in June 1926). Closure followed findings of insolvency, large slow/doubtful assets, and alleged embezzlement by president Thomas Maslin. No clear contemporaneous newspaper description of a depositor run or heavy withdrawals is given; events are insolvency → suspension/closure → receivership and litigation.

Events (3)

1. April 27, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank found insolvent with large slow/doubtful assets (approx. $700k–$800k) and later allegations of embezzlement and false entries by president Thomas Maslin.
Newspaper Excerpt
The Merchants Bank and Trust Company closed its doors... the bank ... was insolvent ... between $700 and $800,000 of the assets of the bank were slow or doubtful of the total assets
Source
newspapers
2. June 15, 1926 Receivership
Newspaper Excerpt
Wachovia Bank and Trust Company was named permanent receiver for the Merchants Bank and Trust Company, local institution, which was closed seven weeks ago by the corporation commission. Judge Henry Lane ... made the receivership permanent at hearing at Reidaville.
Source
newspapers
3. April 2, 1927 Other
Newspaper Excerpt
Thomas Maslin, former president of the defunct Merchants Bank and Trust Company, is indicted ... The Merchants Bank and Trust Company closed its doors in April, 1926.
Source
newspapers

Newspaper Articles (12)

Article from Winston-Salem Journal, May 30, 1926

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Article Text

Creditors of the Merchants Bank Likely to Lose Chief State Bank on (Continued from Page One) 27th April, 1926, took charge weeks will have elapsed of the and closed Its doors. The report of the bank examUpon and appraisal that of the assets of the bank at that one-half the the Mertime it was apparent that the bank chants Bank and Trust Company and perhaps slow doubtful. The total liainsolvent paper. An audit was bility is declared. therefore begun which From the best information to be practically three to comobtained, was believed until the plete, after which careful apreport was issued that praisal of the assets of the bank one-half of the slow doubtful and only fifty per cent. was made by the Chief State Bank of these (25 per cent. of the whole Examiner and other parties familiar the attached to the assets) or about $400,000 were assets in the bank. Upon the approved to be the depositors lose, for the praisal it wal that in reason that order to discharge the liabilities of assessment of 75 per cent. on the stockholders the bank it had become necessary about would meet the 11- to arrangement, if posability in full sible, whereby the institution could What the depositors will actually be taken by another receive or the money will be institution and the liabilities dispaid to them has not been determ- charged in full. ined and cannot be determined "Negotiations were then instiuntil permanent receiver is ap- tuted with the banks in WinstonSalem an arrangement The Merchants Bank and Trust whereby the of the bank Company is would be in full. was the complaint filed in the Clerk of found, however, that the assets of Court's office yesterday. the bank which had been classed. Bank Insolvent appraisal. as slow, or doubtful, made It impossible for the rectors and stockholders the bank an harge in full the Ma. bilities the From the sources available was determined that between $700 and $800, 000 of the assets of the bank were slow or doubtful of the total sets of $1,535,622.7 with total


Article from The Asheville Times, June 15, 1926

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Article Text

Wachovia Bank Made Receiver by Judge Lane Winston-Salem, N. C., June 15. Wachovia Bank and Trust Company was named permanent receiver for the Merchants Bank and Trust Company, local Institution, which was closed seven weeks the corporation commission. Judge Henry Lane, who made the receivership permanent at hearing at Reidaville, said he would consider the appointment of & coreceiver, but that he would not obligate himself to make the ap. pointment This statement was made by Judge Lane after he had heard protest against the appoint ment of the Wachoyla Bank to the The Wachoyia bank was named ago by Judge Thomas Shaw, who ordered the Merchants Bank to appear before Judge Lane today to show cause, If any why the receivership should not be made perm-


Article from The News and Observer, July 28, 1926

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BANK RECEIVER REPLIES TO DEMAND FOR SUIT Winston Salem, July 27.-In answer to demand, made by Attorney T. W. Kallam and his mother, Mrs. Sarah L. Kallam, that the Wachovia Bank and Trust Company, receiver for the Merchants Bank and Trust Company, bring immediate suit against the directors of the Merchants Bank, Clarence Latham and the Corporation Commission of North Carolina, The Wachovia Bank and Trust Company, today addressed a letter to Mr. Kallam and Mrs. Kallam, setting forth its position. The Wachovia Bank declares that everything possible is being done to collect and reduce to cash all the assets of the Merchants Bank and that it has proceeded with such diligence as the law permits. It further declares that at the proper time all actions necessary or required will be brought. The receiver also points out that since it has taken charge of the Merchants Bank affairs it has found many and difficult complications, which require careful investigation, and gives assurance that every at. tention is being given to render the greatest possible service to the creditors.


Article from Winston-Salem Journal, August 27, 1926

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Say Paid Note Not Receipted Angelo Bros. Claim Satisfied Note Used as Collateral by Defunct Bank Ask Receiver to Pay Declare That Thomas Maslin Took Payment A few days before the Merchants closed and Trust Company Thomas its its received on Angelo Brothers note signed by to receipted and promised the Angelo firm, note paid to made cording Court filed answer Monday According the claim the note was of Angelo Brothers sent to never receipted but Bank of Citizens National for loan made collateral more to the Merchants Bank Trust Company At least Baltimore Brothers bank for that the ask Angelo and Trust Wachovia Bank of the Merchants be made Trust Bank party and to the suit and that It be the note. required to pay further ask that The defendants the note required they that first to the It by the all collateral and Trust Merchants before going pany the defendants against To Form Synod theran ministers and lyamen in annual joint Ohio the will act here, for formation row Lutheran Synod Evangelical from the Independent of and Joint Ohio Buffalo, Iowa,


Article from The Salisbury Post, November 18, 1926

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THOUGHT A We wonder if this "pig woman" than litknows any more really tle "Willie" Stevens in this HallMills case? It is going to be mighty hard to find any one who really knows something of the facts. The meeting in Raleigh on Monday is for the purpose of discussing advertising the state. The directors of North Carolina, Inc., are business men, who know the value of dollar and the purpose of adThey will conduct vertising. business-like campaign, waste no money and tell the simple story of the state. Not exageration, but facts is the idea with these men. Captain C. Robbins, who died at his Lextington home Tuesday, was well known to many of our Rowan readers. For sixty years he was a member of the Davidson bar and during all of his long life he was a fine example of the useful citizen and amiable gentleman. Captain Robbins was a soldier in the Southern Army and in after life leader in the civic duties of the state. A fine type of lawyer and citizen. Summons in two suits against directors of the defunct Merchants Bank and Trust Company of Winston-Salem have been issued. The bank, the receiver, the Wachovia starts one of the suits and attorneys representing large number of depositors are responsible for the second. This is an effort to recover losses which depositors suffered when the bank went to financial ruin. Attorneys for the depositors all claim that the bank was insolvent at the time the deposits were taken and that the directors were in possession of these facts. One who keeps pretty close eye on things as they come and go in this community says that there is considerable activity in and around Salisbury, more this one says than we realize. We do not doubt but that this is true. There does not seem to be cord building year ahead, but there are signs of a good steady growth and an activity in building that will carry us steadily forward. There are, too, several rather sizeable building undertakings being planned and with some of these under way, added to the always present building activities the year 1927 will be at lease up to good average, and most likely above that. WHERE COLLEGE MEN GO What becomes of the man when he goes out into the fields of life after his college days are over? How many succeed? How many drift down and lose the aims their youth cherished? Some interesting facts have been gathered on the class that was graduated in 1917 from the Sheffield Scientific School of Yale University. This class has a membership of about 326 men who are about 30 years of age now, after having been in the workaday world for eight years. More than 75 per cent of them have been married since graduation. Most of them wedded at about 26 and their wives averaged 23. The most susceptible period for sands of frail, emaciated children marrying was three years after to grow strong and won't they help your ailing little graduation, the romantic spirit one? melting away slowly after that You can get 60 McCoy's tablets time. From the standpoint of for 60 cents at Peoples Drug Store heirs they have done well, the av- and Carter and Trotter's druggist and the vitalizing vitaerage being slightly more than one mines will weak, help any child per family. out man woman to better health. The "grads" average $6,000 Insist on


Article from Winston-Salem Journal, March 19, 1927

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Hanes Sued By Bank Receiver Action Started Here to Collect Payment and Interest on Note Sued as Director Alleged to Have Given Paper in Favor of Bank M Hanes nomed fendant suit started by the Wachovia Bank and Trust Comreceiver Merchants Bank and Trust Company. The bank collect the with interest amount from March 1927 The office of the Clerk Court Mr. Hanes and other directors the defunct bank named in the signed promissory note favor the Merchants Bank Trust Company for August Other the have their but Mr the understood that Mr. Hanes


Article from The Sentinel, April 2, 1927

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Three True Bills in All Found Against Former President Of Defunct Farmers and Merchants Bank: Bank Closed Doors Year Ago. Thomas Maslin, former president of the defunct Merchants Bank and Trust Company, is indicted in three true bills returned by the Forsyth Grand Jury today, on several In one, Mr. Maslin appears indicted on a charge of embezzling the sum of $35,000. funds of the estate of W. F. Snipes, deceased. contrary to the form of the statute. Another bill alleges that he received funds from deposilors and permitted employees of the bank to receive such funds, knowing the institution to be insolvent. The third bill alleges that Mr. Maslin concealed entries. made false entries and ab stracted papers in connection with his personal account on the ledger of the Merchants Bank and Trust Company for the purpose of deceiving the officers of the institution. A number of witnesses ap peared before the Grand Jury during the present term of court in its investigation of the affairs of the bank. resulting in these indictments. Mr. Maslin is understood to be engaged in business in Greensboro. The Merchants Bank and Trust Company closed its doors in April, 1926.


Article from Winston-Salem Journal, March 1, 1928

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Merchants Bank Receiver Sues to Collect on Bond Independence Indemnity Company of Philadelphia Is Defendant $10,000 Sought Fidelity Bond Carried, Says Complaint Wachovia Bank and Trust Company. receiver for the defunct Merchants Bank and Trust Company. yesterday started suit in Forsyth County court against the delphia. to recover $10,000 which It is alleged is due as result of the issuance by the defendant company of fidelity bond which pro. tected losses up to 000 the defunct bank between Nov. 16. 1924, and Nov. 16, 1925. Losses sustained during the period for which the fidelity bond said to have been in effect listed follows Dec. 12, 1924, $2,550 16, 1924 497: June $2,500. and Sept. 23, 1925. $2,581 70. making a total of $15,628.70. These losses. up to $10,000. should be sustained by the indemnity company. the plaintiff alleged. The fidelity been issued by the defendant company on Nov. 1924. agreed that the company was to pay the amount of any loss which the bank might sustain in moneys, funds, securities, or other personal properties, or for which the bank might be responsible. not in excess of $10,000. it is stated. During the period the bond was in effect, the bank sustained losses set out due to fraud. larceny. theft, priation. wrongful abstraction. or misapplication or other criminal acts of Thomas Maslin. president of the bank. the receiver charged. The bond specifically stated it COVered any such losses not in excess


Article from Winston-Salem Journal, June 7, 1928

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To Buy Last Bank Claims 2,000 Depositors of Merchants Bank Get Another Opportunity to Sell June 13, 14 or 15 Claims Not Yet Purchased Total $10,000 Trustees for Mrs. Senah C. Kent, administratrix, and W. M. Hanes, have offered each depositor the defunct Merchants Bank and Trust Company per cent. for claims against the bank yesterday they will meet any depositors have not In the Anxious to Make Settlement two thousand positors, many of whom live the set for the weeks It with these depositors the are anxious make final Claims purchased to date total less than Many Small Accounts An effort made for the two making the offer clear claims It believed many the depositors have not assigned small, but every regardless the of his claim urged assign It this time. large claims standing are for amounts less than $1, was stated Will Meet Trustees Arrangement for meeting in the trust department of the Wachovia Bank Page


Article from The Richmond News Leader, August 17, 1928

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BANK'S RECEIVERS FILE SUIT ON 11 Winston-Salem Complainants Say Institution Directors Negligent. N. C., Aug. 17. Associated Wachovia Bank and Trust Company, receivers for the Merchants Bank and Trust Company, today filed suit for $935,and interest against eleven persons seeking to recover money alleged to have been lost through manipulations Thomas Maslin, president of the defunct institution. The suit alleges that the directors of the defunct bank were guilty of "negliment, wrongful and unlawful conduct" that allowed Maslin to run things more or less as he saw fit. Board meetings, it is alleged, were pro The defendants named are W. H. Bynum, S. F. Vance, W. P. Maslin, C. Leak W. M. Hanes, T. V. Edmonds, Anna Leak, for the estate of W. R. Leak W. Wat. kins, E. D. Craig Mrs. Eena C. Kent, executrix of C. A. Kent.


Article from Winston-Salem Journal, February 19, 1929

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Maslin Comes To Take Stand Banker Appears as Material Witness; Grants Reporter Interview of Bank and receiver for MerBank and Trust Company chants Fletcher and against decided in favor of the Harris by the jury in Forsyth Court and for the plaintiff gave The action grew transactions whereby of have taken judgFletcher W. Б. Byerly on notes against ment receiver claims were the the bank as colby promissory notes exeFletcher. by president of the Bank and Comthe institution closed until of the State appeared as material the plaintiff in the suit. who is serving term Prison for what alleged been of to of the gave an in which he stated yesterday had suffered in greater from the collapse of that inthan of my own money Invested in the stock of the family had about stock was had bad believe that the not become excited and public the bank would run worked off these loans the profits of the bank to either stockholders In fact the bank exright up to the time closing month that we were of shape. Maslin stated that there was Mr. unusual the fact that Merchants Bank and Trust Comsome bad loans. he as solvent credits be covered by the or profits of the then debited and tossed overhad faith my bank and president thought should


Article from Winston-Salem Journal, September 12, 1929

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Bank Receiver Will Collect Wachovia Authorized to Receive $11,000 in Cancelled Claims Wachovia Bank and Trust Company, receiver of Merchants Bank and Trust Company, has been authorized to collect over in cancelled claims from National Surety Company in connection with the defaulted bond of the defunct institution in relation the administration the W. Snipes Estate, it was learned yesterday. Agreement to this effect resulted in judgment of the litigation brought by the ceiver bank against National Surety Company The right of the bank to collect on these papers will have priority over any and all other claims existing in this conis said. It is understood that this sum, when collected. will become part of the assets of the Snipes estate, In lieu of monies alleged have been by the defunct Merchants Bank and Trust Company.