13815. Peoples Trust Company (Lebanon, NH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
January 1, 1925*
Location
Lebanon, New Hampshire (43.642, -72.252)

Metadata

Model
gpt-5-mini
Short Digest
22b1a8e6

Response Measures

Full suspension, Books examined

Other: Receivership of affiliated company and arrest of treasurer for falsifying accounts noted.

Description

Multiple contemporaneous newspapers report unusual withdrawals precipitated by rumors regarding the bank's loans the week before Jan 13, 1925; the state bank commissioner suspended the bank on Jan 13, 1925 pending investigation. By Feb 24, 1925 receivers had been appointed and the commissioners were acting as receivers; charges of falsifying accounts were reported. OCR errors in articles corrected (People's/Peoples variants normalized to Peoples Trust Company).

Events (3)
1. January 1, 1925* Run
Cause
Rumor Or Misinformation
Cause Details
Unusual withdrawals precipitated by rumors regarding the bank's loans (articles state 'rumors regarding the bank's loans').
Newspaper Excerpt
Some unusual withdrawals of funds were said to have been precipitated last week by rumors regarding the bank's loans.
Source
newspapers
2. January 13, 1925 Suspension
Cause
Government Action
Cause Details
State bank commissioner suspended the bank pending an investigation of its affairs (posted notice 'closed by order of the Court').
Newspaper Excerpt
The state bank commissioner suspended the business of the People's Trust Company today pending the result of an investigation of its affairs.
Source
newspapers
3. February 24, 1925 Receivership
Newspaper Excerpt
The petition for receivership was brought by Leo Gerry and George E. Farrand, state bank commissioners who are the receivers of the bank.
Source
newspapers

Newspaper Articles (6)
1. January 14, 1925 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 14, 1925

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Article Text

Close Lebanon, N. H., Trust Co. Pending Probe by Bank Com. Lebanon, N. H., Jan. 13.-The state bank commissioner suspended the business of the People's Trust Company today pending the result of an investigation of its affairs, likely to occupy several days. The commissioners, Frederick S. Nutting, Leon B. Gerry and George E. Farrand, said they would make no further statement until their inquiry had been completed. Some unusual withdrawals of funds were said to have been precipitated last week by rumors regarding the bank's loans. The formal report of the bank's condition issued today as of December 31, last shows loans in the savings department of $566,857 on real estate, and $390,917 on personal notes. Deposits at the bank subject to check amounted to $233,549.09, loans and discounts were placed at $361,000.

2. January 14, 1925 Hartford Courant Hartford, CT
Article from Hartford Courant, January 14, 1925

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Article Text

NEW HAMPSHIRE BANK ORDERED TO CLOSE Lebanon. H., Jan. state suspended the business of People's Trust today the affairs. likely to occupy several days.

3. January 14, 1925 The Bangor Daily News Bangor, ME
Article from The Bangor Daily News, January 14, 1925

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Article Text

AFFAIRS OF PEOPLES TRUST CO. AT LEBANON, N. H. N. Jan 13-The bank suspended the business of the People's Trust Company today, pending result an investigation affairs, likely to occupy several days. The Frederick NutLeon Gerry and George E. Farrand said they would make further statement until their inquiry had been Some unusual withdrawals of funds have been precipitated week by rumors garding bank's loans. The formal report of the bank's condition issues today December 31. last, shows loans the savings department $566,857 on real estate $390,917 personal notes. Deposits the bank subject check amount$233.549 loans and discounts were placed at

4. January 14, 1925 Record-Journal Meriden, CT
Article from Record-Journal, January 14, 1925

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Article Text

Bank Commissioner Closes Lebanon Bank Lebanon. N. H. Jan. state bank the business of the People's Trust today the result of an of its affairs, likely to days. notice posted the door "This bank is closed by order the court was the only official an The Frederick S. Nutting. Leon B. Gerry and E. Farrand said they would no further statement until their inquiry had been Some unusual of funds were said have been precipitated last by rumors garding the bank's loans, The formal of the condition issued today as of December

5. January 14, 1925 The Lewiston Daily Sun Lewiston, ME
Article from The Lewiston Daily Sun, January 14, 1925

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Article Text

PEOPLE'S TRUST CO. LEBANON CLOSED Report Run On Bank Last Week Followed Rumors Regarding Loans New Hampshire Commissioners Say Institution Closed Pending An Investigation Lebanon Jan. State bank suspended the of the People's Trust today, the result of its affairs, likely occupy several days. The commissioners, Frederick Leon Farrand said they would further until their inquiry had completed. withdrawals funds said to been precipitated last by regarding the bank's loans. The formal of the bank's condition issued today of Dec. 31, last shows savings department $566. 857 on Deposits the 540.09. discounts were placed this suit was entered the Trust recovtotal $130,000 from the Manchester Marble Co., Rutland, on promissory notes and overdrafts. The commissioner not say whether nection with the closing of the institution. notice posted on the door the closed by order the Court." It signed the State Bank commissioners.

6. February 25, 1925 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, February 25, 1925

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Article Text

N. H. Machine Co. In Hands Receiver Lebanon, N. H., Feb. 24-The Lebanon Machine Company, Inc., a subsidiary of the Peoples Trust Company, whose former treasurer, Arthur H. Hough, is now on bail of $10,000 on charges of falsifying the bank's accounts, was placed in the hands of receivers today by Judge William H. Sawyer of the superior court. The company. which manufactured pumps and highway signs, is indebted to the bank in the sum of $260,000. Its stock was widely distributed among New Hampshire residents. Hough was president of the machine company and its board of directors was the same as that of the bank. The petition for receivership was brought by Leo Gerry and George E. Farrand. state bank commissioners who are the receivers of the bank. Judge Sawyer appointed Arthur C. Burleigh and R. B. Jacobs, president of the New Hampshire Manufacturer's Association, receivers of the Machine Company. Hough was arrested on charges of falsification about six weeks ago when examination of the bank's accounts was alleged to have disclosed large discrepancies.