First National Bank - Cape May, NJ

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 5839
Charter Number: 5839
Start Date: April 29, 1905
Location: Cape May, New Jersey (38.935, -74.906)

Metadata

Model: gpt-5-mini
Short Digest: b8d36010

Response Measures

None

Receivership Details

Depositor recovery rate: 100.0%
Date receivership started: 1904-05-24
Date receivership terminated: 1904-10-11
OCC cause of failure: Losses
Share of assets assessed as good: 31.6%
Share of assets assessed as doubtful: 5.9%
Share of assets assessed as worthless: 62.4%

Description

Articles (Apr 1905) report the First National Bank of Cape May went into the hands of a receiver and is now out of existence after alleged fraudulent actions by its president, Dr. Wesley R. Wales. Depositors were paid by a principal stockholder, Dr. Physic. No run is mentioned in the articles; failure appears driven by bank-specific fraud and insolvency.

Events (4)

1. May 29, 1901 Chartered

Source: historical_nic

2. May 24, 1904 Receivership

Source: historical_nic

3. April 29, 1905 Other

Newspaper Excerpt: Dr. Wesley R. Wales pleaded not guilty ... to an indictment charging him with fraudulently obtaining $10,000 from the First National Bank of Cape May ... It is alleged ... he had various notes discounted and the proceeds placed to his credit.
Source: newspapers

4. * Receivership

Newspaper Excerpt: Subsequently the bank went into the hands of a receiver, and is now out of existence.
Source: newspapers

Newspaper Articles (2)

1. April 28, 1905 Evening Star Washington, DC

Article from Evening Star, April 28, 1905

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Article Text

# Cape May Banker Pleaded Not Guilty. Dr. Wesley R. Wales of Cape May city, who pleaded not guilty in court at Trenton, N. J., yesterday, as reported in The Star, to an indictment on the charge of fraudulently obtaining $10,000 from the First National Bank of Cape May some three years, when he was president of the bank, is understood to have other charges against him. It is alleged that while president of the bank he had various notes discounted and the proceeds placed to his credit. Other persons were the makers of the notes and they were never paid. Subsequently the bank went into the hands of a receiver and is now out of existence. The depositors were all paid by Dr. Physic of Cape May, who owned a large amount of the bank's stock.

2. April 30, 1905 Americus Times-Recorder Americus, GA

Article from Americus Times-Recorder, April 30, 1905

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Article Text

# CROOKED BANKING CHARGED. Dr. Wesley R. Wales, of Cape May, Says Not Guilty to Indictment. Trenton, N. J., April 29. - Dr. Wesley R. Wales, of Cape May City, pleaded not guilty in the United States district court to an indictment charging him with fraudulently obtaining $10,000 from the First National bank of Cape May some three years ago, when he was president of the bank. It is alleged that while president of the bank he had various notes discounted and the proceeds placed to his credit. Other persons were the makers of the notes, and they were never paid. Subsequently the bank went into the hands of a receiver, and is now out of existence. The depositors were all paid by Dr. Physic, of Cape May, who owned a large amount of the bank's stock.