First National Bank - New Berlin, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 151
Charter Number: 151
Start Date: April 11, 1912
Location: New Berlin, New York (42.624, -75.332)

Metadata

Model: gpt-5-mini
Short Digest: d8151c62

Response Measures

None

Receivership Details

Depositor recovery rate: 77.8%
Date receivership started: 1912-04-15
Date receivership terminated: 1915-09-30
OCC cause of failure: Fraud
Share of assets assessed as good: 23.6%
Share of assets assessed as doubtful: 43.3%
Share of assets assessed as worthless: 33.2%

Description

Bank suspended by directors April 11, 1912 due to a large shortage caused by cashier Frank T. Arnold's confessed theft (defalcation). A federal receiver was appointed April 15, 1912. No run prior to suspension is described; depositors later gathered angrily when examiners opened the bank.

Events (5)

1. December 11, 1863 Chartered

Source: historical_nic

2. April 11, 1912 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large shortage in funds caused by alleged defalcation/theft by cashier Frank D. (Frank T.) Arnold; board closed bank pending investigation.
Newspaper Excerpt: The First National Bank of New Berlin closed its doors today by order of the board of directors pending an investigation into the books. It is stated that there is a large shortage in the bank's funds.
Source: newspapers

3. April 13, 1912 Other

Newspaper Excerpt: Angry depositors of the wrecked First National bank here threatened violence this morning when the doors of the institution were opened by the federal examiners to receive pass books and deposit slips. Feeling against Frank T. Arnold, the cashier, who has confessed to stealing more than $200,000 of the bank's funds became intense today ... The suspension of the bank has paralyzed business in this vicinity. (Excerpt describing depositor agitation after suspension.)
Source: newspapers

4. April 15, 1912 Receivership

Source: historical_nic

5. April 15, 1912 Receivership

Newspaper Excerpt: R. L. Curtis, of Franklinville, N. Y., was appointed by the Controller of the Currency to-day as receiver of the First National Bank of New Berlin, N. Y. ... The new bank now being organized in New Berlin to take the place of the failed institution will purchase from the latter its furniture, fixtures and good assets.
Source: newspapers

Newspaper Articles (4)

1. April 11, 1912 Evening Star Washington, DC

Article from Evening Star, April 11, 1912

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Article Text

BANK CLOSES DOORS. First National of New Berlin to Be Investigated. UTICA, N. Y., April 11.-The First National Bank of New Berlin closed its doors today by order of the board of directors pending an investigation into the books. It is stated that there is a large shortage in the bank's funds. Frank D. Arnold, who was cashier up to Sunday last, is ill at his home in New Berlin. The suspension of the First National Bank of New Berlin, N. Y., was like a bolt from a clear sky to Controller of the Currency Murray. The bank was examined January 24 and reported in good condition. National Bank Examiner Edwin F. Rorebeck in New York has been ordered to New Berlin to ascertain the trouble. The first inkling the Treasury Department had of the situation was a telegram from the board of directors asking the dispatch of an examiner to make an investigation.

2. April 13, 1912 The Richmond Palladium and Sun-Telegram Richmond, IN

Article from The Richmond Palladium and Sun-Telegram, April 13, 1912

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Article Text

ANGRY DEPOSITORS SURROUND BANK Which Cashier Looted, Crippling Business Throughout Entire County. (National News Association) NEW BERLIN, N. Y., April 13.Angry depositors of the wrecked First National bank here threatened violence this morning when the doors of the institution were opened for the first time. The bank was opened by the federal examiners to receive pass books and deposit slips. Feeling against Frank T. Arnold, the cashier, who has confessed to stealing more than $200,000 of the bank's funds became intense today when it was learned that two nights ago great quantity of silver plate was secretly taken from his home and shipped to Buffalo. That Arnold's condition was not nearly as serious as indicated by the doctor's bulletins became known after a local barber had been called in to shave him. After the visit the barber declared that Arnold was in fair shape and able to chat at great length. The suspension of the bank has paralyzed business in this vicinity. Between 20 and 30 towns in this county had their deposits in the First National bank here. These are tied up and the towns cannot secure funds. Two hundred school districts are affected and the teachers are without money. Belief in the stories that Arnold is shaming illness was manifested by the bank examiners today when they ordered that Arnold's house be surrounded by police.

3. April 16, 1912 New-York Tribune New York, NY

Article from New-York Tribune, April 16, 1912

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Article Text

BANK IN RECEIVER'S HANDS R. L. Curtis Put in Charge of Failed New Berlin Institution. Washington, April 15.-R. L. Curtis, of Franklinville, N. Y., was appointed by the Controller of the Currency to-day as receiver of the First National Bank of New Berlin, N. Y. Mr. Curtis is a lawyer and was at one time receiver of the People's National Bank of Franklinville. The new bank now being organized in New Berlin to take the place of the failed institution will purchase from the latter its furniture, fixtures and good assets. As soon as the assets can be sold and transferred to the new organization a dividend of the proceeds will be paid to the creditors of the failed bank. It is expected that this can be accomplished within thirty days.

4. May 16, 1912 New-York Tribune New York, NY

Article from New-York Tribune, May 16, 1912

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Article Text

BANK STOCKHOLDERS HIT Assessed 100 Per Cent to Meet Arnold's Defalcation. Washington, May 15.-Controller Murray has levied an assessment of 100 per cent on the stockholders of the First National Bank of New Berlin, N. Y., wrecked by the alleged defalcation of Frank T. Arnold, its cashier. This action is expected to raise $100,000, while the bank's deficit, including the alleged defalcation and the diminished value of certain assets, is said to be about $354,000. Mr. Murray has instructed the receiver to make an investigation as to whether the directors exercised reasonable care in the management and whether they would be liable in a civil suit for damages for negligence.