16291. National Bank of South Pennsylvania (Hyndman, PA)

View Charter #4063 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4063
Charter Number
4063
Start Date
December 16, 1902
Location
Hyndman, Pennsylvania (39.823, -78.718)

Metadata

Model
gpt-5-mini
Short Digest
fb37f6802ac266d9

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1902-12-16
Date receivership terminated
1903-07-16
OCC cause of failure
Fraud
Share of assets assessed as good
42.1%
Share of assets assessed as doubtful
21.2%
Share of assets assessed as worthless
36.7%

Description

Comptroller of the Currency closed the National Bank of South Pennsylvania at Hyndman and appointed a receiver on Dec 16, 1902. Closure was due to heavy losses from large loans to officers and directors and alleged embezzlement by an officer. Later reporting indicates the receiver paid depositors in full but stockholders were nearly wiped out.

Events (4)
1. July 2, 1889 Chartered
Source
historical_nic
2. December 16, 1902 Receivership
Source
historical_nic
3. December 16, 1902 Receivership
Newspaper Excerpt
Comptroller of the Currency Ridgley has closed the national bank of south Pennsylvania at Hyndman, Pa. and has appointed Walter R. Mason, bank examiner, as receiver.
Source
newspapers
4. December 16, 1902 Suspension
Cause
Government Action
Cause Details
Closed by Comptroller/Controller of the Currency and placed in hands of receiver after discovery of large losses from loans to officers and directors (embezzlement/irregularities).
Newspaper Excerpt
Comptroller of the Currency Ridgley has closed the National Bank of South Pennsylvania at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, as receiver.
Source
newspapers

Newspaper Articles (16)
1. December 16, 1902 Albuquerque Daily Citizen Albuquerque, NM
Article from Albuquerque Daily Citizen, December 16, 1902

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BANK CLOSED. The Government Takes Possession of a Pennsylvania Bank. Washington, D. C., Dec. 16.-Comptroller of the Currency Ridgley has closed the national bank of south Pennsylvania et Hyndman, Pa. and has appointed Walter R. Mason, bank examiner, as receiver. The last report of the condition of the bank showed that its deposits were $40,432. It is capitalized at $50,000 and it had a surplus of undivided profits of $10,016. The failure was due to losses sustained through large loans made to officers and directors.

2. December 16, 1902 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, December 16, 1902

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LOANS TO OFFICERS AND DIRECTORS The National Bank of South Pennsylvania at Hyndman Had a Capital Stock of $50,000 and Deposits of $40,000 WAS CLOSED BY THE GOVERNMENT THIS MORNING Washington, Dec. 16.-Comptroller of the Currency Ridgley has closed the Natonal Bank of South Pennsylvania at Hyndman, Pa., and has. appointed Walter R. Mason, bank examiner, as receiver. The last report of the condition of the bank showed that its deposits were $40,432. It is capitalized at $50,000, and it had a surplus and undivided profits of $10,016. The failure was due to losses sustained through large loans made to officers and directors.

3. December 16, 1902 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 16, 1902

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Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D. C. TELEGRAPHIC BREVITIES. While riding in a belt line car on Trement, near Cabot street, Roxbury, Mass., last evening, the Rev. Dr. J. W. Stifter, of Chester, Pa., was stricken by apoplexy and died. The National Bank of South Pennsylvania at Hyndman, Pa., was closed today. Walter A. Mason, has been appointed temporary receiver. The failure of the bank was due to losses sustained through large loans made to officers and directors. Two express messengers are supposed to have been killed in the wreck of south bound Limited Express near Moundville Ala., today on the Great Southern Railroad. A rail had been removed near a trestle. No passengers are reported killed. The train was bound from Cincinnati to New Orleans. Reports this morning say that Cornelius Vanderbilt, ill with typhoid fever in New York, is very weak. No hurry calls were sent for doctors, however, and this is taken as an encouraging sign. Kaiser Wilhelm, through Ambassador von Holleben, inquired as to Mr. Vanderbilt's condition Monday. Mrs. W. A. Clark, who two weeks ago gave birth to a son, to whom will fall $1,000,000 offered by Senator Clark for the first male child born to his sons or daughters, is critically ill of blood poisoning, at Butte, Mont.

4. December 16, 1902 The Providence News Providence, RI
Article from The Providence News, December 16, 1902

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BANK'S DOORS CLOSED National Bank of South Pennsylvania in Difficulties Because of Loans to Officers. Washington, Dec. 16.-Comptroller of theCurrency Ridgley has closed the National Bank of South Pennsylvania at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, as receiver. The report of condition of the bark at the close of business Nov. 25, 1902, shows its resources and liabilities on that date as follows: Resources: Loans and discounts $53,410: bonds and interest on same $13,700; stocks, securities, claims, etc., $17,040; due from national and other banks, $17,275; legal tender and specie $8344. Liabilities: Capital stock $50,000; surplus and undivided profits, $10,016; circulating notes $12,500; due to national and other banks $3,058; deposits, $40,132. The failure of the bank was due to losses sustained through large loans to officers and directors. A controversy has existed between the stockholders of the bank, of several weeks' duration and an attempt was made to arrange the affairs of the bank to prevent receivership. Owing to the impossibility of any agreement being reached the comptroller today appointed a receiver at the request of the larger stockholders.

5. December 17, 1902 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 17, 1902

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Capital Notes. Government receipts, Tuesday: From internal revenue, $464,985; customs, $915,045; miscellaneous, $181,824; expenditures, $1,259,000. It is understood that the President has decided to appoint Dr. W. D. Crum. the colored applicant, as collector of the port of Charleston. Comptroller of the Currency Ridgley, has closed the National Bank of South Pennsylvania, at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner as receiver. General Tasker H. Bliss, who was sent to Havana, to aid Minister Squiers in drafting a reciprocity treaty between the United States and Cuba, reached Washington, Tuesday, and delivered to Sec. Hay the treaty signed in Havana, last week. It provides for a 20 per cent. reduction in the tariff charges on Cuban products entering the United and heavy reductions on American exports to Cuba. While the final arrangements for the obsequies of Mrs. Grant have not been made it is settled that the body will be placed by the side of that of her husband in the tomb at Riverside park, New York. The secretary of war has directed that all the army officers stationed in New York and vicinity shall attend the services at the tomb in full dress uniform. Secretary. Root and many other prominent officials will accompany the funeral party to New York and attend the services at the tomb. Representative McCall, Masachusetts. Tuesday, introduced in the House a resolution directing the secretary of state to inform the House concerning any understanding or agreement between the governments of Great Britain and Germany and the diplomatic officers of the United States or any assurances by these governments to the diplomatic officers of the United States as to the nature, extent or purpose of the joint demonstration of these governments against Venezuela and particularly with reference to the occupation of the territory of Venezuela. The resolution also asks that correspondence regarding this subject be transmitted to the House. Secretary Wilson, Tuesday, issued an order directing that all freight cars which have carried animals within the limits of Connecticut, Rhode Island and Massachusetts or Vermont, which have been quarantined on account of the outbreak of the foot and mouth disease. shall be cleaned and disinfected before leaving the state where loaded. The order also provides: "The the hides. skins, hair. horns or hoofs of ruminants or swine shall not be allowed to be taken out of either of the said quarantined states: provided that such articles. imported at any port in said states where an inspector of this department is stationed, may be forwarded under certificate of said inspector." An investigation into the advance in the freight rates on grain and grain products, dressed meats and provisions from the Mississippi river, Chicago, etc., to New York and Eastern points governed by the New York rate, was begun, Friday, by the interstate commerce commission. The testimony added to the profits of one road alone showed that $400,000 revenue would be by the contemplated increase. It was claimed that the advances were justi_ fied by the increased cost of operations. At the suggestion of counsel and officials of the roads represented, the commission decided to require the raile roads to file written statements by d Jan. 10 next. setting forth the reasons they rely on to justify the advance in r rates.

6. December 17, 1902 The St. Louis Republic Saint Louis, MO
Article from The St. Louis Republic, December 17, 1902

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WASHINGTON. A receiver has been appointed for the National Bank of South Pennsylvania, at Hyndman, Pa. General Bliss has returned from Cuba with a reciprocity treaty granting Cuba 20 per cent reduction of tariff on her exports to the United States. Doctor Harran, the Colombian charge at Washington, predicts that a Panama Canal treaty will be ready to submit to Congress before Christmas. Senator Cochran introduced a bill authorizing the construction of a bridge across the Missouri River in St. Charles County, Missouri, and to make the same a post route. Senator Scott of West Virginia introduces a bill in limiting employes of the classified service, with the exception of railway mail clerks, to two terms of six years each. Allen V. Cockrell, Washington representative of the World's Fair, returns from Richmond, Va., where he secured the passage of $50,000 World's Fair appropriation bill. He says the State will have $100,000 available for her exhibit and will surpass all her previous efforts in this direction. The Supreme Court of the District of Columbia sustains the validity of the Chick. asaw Nation's tribal tax and the right of the Secretary of the Interior to collect the same.

7. December 17, 1902 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 17, 1902

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National Bank Closed. WASHINGTON. Dec. 16.-Controller of the Currency Ridgely has closed the National Bank of South Pennsylvania, at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, as receiver. The last report of the condition of the bank was that its deposits were $40,432, that its capital stock was $50,000 and that it had a surplus and undivided profit of $10,016. The failure of the bank was due to losses suffered through large loans made the officers and directors.

8. December 17, 1902 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, December 17, 1902

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National Bank Fails. WASHINGTON, December 16.-Comptroller of the Currency Ridgely has closed the National Bank of South Pennsylvania, at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, as receiver. The failure of the bank was due to losses sustained through large loans made to officers and directors. The capital stock of the bank was $50,000, and the discounts $53,410. The deposits were $40,432

9. December 17, 1902 The Sun New York, NY
Article from The Sun, December 17, 1902

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Quarrel Causes Bank to Suspend. WASHINGTON, Dec. 16.-A quarrel among , he directors of the National Bank of South Pennsylvania at Hyndman has caused the failure of the institution. and it has passed into the hands of a temporary receiver by order of the Comptroller of the Currency. Walter A. Mason. national bank examiner. has been appointed temporary receiver.

10. December 18, 1902 The Republican Oakland, MD
Article from The Republican, December 18, 1902

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BANK AT HYNDMAN CLOSES ITS DOORS. Controller of Currency Places the Institution In Hands of a Receiver. W ASHINGTON, D.C., Dec. 19.-Controller of the Currency Ridgely has closed the National Ban's of South Pennsylvania at Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, as receiver. The report of condition of the bank at the close of business November 25, 1902, shows its resources and liabilities on that date as follows: Resources-Loans and discounts, $53,410; bonds and interest on same, $13,700; stocks, securities, claims, etc., $17,040; due from national and other banks, $17,275; legal tender and specie, $8,544. Liabilities-Capital stock. $50,000; surplus and undivided profits, $10,016; circulating notes, $12,500; due to national and other banks, $3,085; deposits, $40,432. The failure of the bank was due to losses sustained through large loans to officers and directors. A controversy has existed between the stockholders of the bank of several weeks' duration, and an attempt was made to arrange the affairs of the bank and prevent a receivership. Owing to the impossibility of any agreement being reached the controller today appointed a receiver at the request of the larger stockholders.

11. December 24, 1902 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, December 24, 1902

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Creditors Will Not Suffer Loss. Washington, Dec. 23.-The comptroller of the currency has received the report of the receiver of the National Bank of South Pennsylvania, at Hyndman, which was closed Dec. 16, 1902. The assets at the date of the suspension amounted to $101,317. The receiver estimates the doubtful and worthless bills receivable and other assets to be worth $11,500. The liabilities of the bank are reported as $43,030. From the report of the receiver It does not appear probable that the general creditors of the bank will suffer any loss, the late president J. J. Hoblitzell, having agreed to pay the face value of all claims proved against the bank, and thus become practically its only creditor.

12. December 24, 1902 The Star Reynoldsville, PA
Article from The Star, December 24, 1902

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Hyndman Bank Closed. Comptroller of the Currency Ridg. ley has closed the National bank of South Pennsylvania, Hyndman, Pa., and has appointed Walter R. Mason, bank examiner, receiver. The fallure of the bank is said to have been due to losses sustained through loans made to officers and directors,

13. December 25, 1902 Mexico Missouri Message Mexico, MO
Article from Mexico Missouri Message, December 25, 1902

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THE NEWS RESUME ALJerican quicklunch bars will be estainished in Lundon, Major alexander Shaw. philanthropist and coal operator, is dead. OV. H. Bishop has been appointed Consel General at Genoa, Italy. carried tax safe, with all collector's Parts burglars its off contents. the It is reported that the proposed softcoal combine in Indians has been abandoned. The United States Government will compile a of patrons of the rural free delivery routes. has been for A National receiver appointed the Bank of South Pennsylvania, e.t Hyndman, Pa. is the James Scott sentenced to Penitentiary for life at Belleville, III., for killing Otto Schultz. Insurance companies seek to discourage the use of parlor matches as a precaution against fires. The House passed the Senata bill providing for a four-million-dollar union station at the national capital. The State of New York suffers from a blizzard, which adds greatly to the discomfort due to a shortage of fuel. 200 has gone on of A band the of warpath nearly in the Indians vicinity the new Government trail to the Klondike. The plan for making reservation Indians self-supporting works well at the Cherry Creek Agency, in South Dakota. Under the provisions of the will of R. C. Billings, the millionaire philanthropist, $1,000,000 is given away to charity. Congressman Rucker asks the Post Office Department to establish a Post Office at Collinswood, Chariton County, Mo. The Supreme Court of Missouri sustains the constitutionality of the compromise beer law enacted by the last Legislature. Judge Ryan overruled the motion for a new trial filed by Robert M. Snyder, who was convicted of bribery at St. Louis. The great reservoir and dam of the Nile are opened at Assouan, the Khedive and many nobles and Ministers being present. The National Reciprocity League at Detroit adjourns after adopting resolutions favoring reciprocity with Cuba and Canada. John W. Gates, the Chicago millionaire, donates $125,000 for improvements of Port Arthur, Tex., where he has a winter home. A new bank. with $10,000,000 capital, is organized in New York, to consolidate the banking interests of large insurance concerns. The French senatorial elections, at which one-third of the seats in the chamber will be affected, will take place on January 4. Two men were killed and eight so riously burned in a gas explosion in the waterworks tunnel 100 feet below Lake Erie at Cleveland, O. The tariff bill now pending in the German Reichstag is aimed at the Uaited States in retaliation for the latter's high protective duties. The Misscuri Supreme Court appoints Judge T. W. Hawkins of Marion County to succeed Mrs. Jennie Edwards as State Librarian. President Roosevelt promises President Francis that he will be present at the formal dedication of the World's Fair in St. Louis on April 30 next. General Bliss has returned from Cuba with a resiprocity treaty granting Cuba 20 per cent reduction of tariff on her exports to the United States. Dr. Harran, the Colombian charge at Washington, predicts that a Panama Canal treaty will be ready to submit to Congress before Christmas. Illinois labor men are preparing to use all their influence upon the coming session of the Legislature to procure the repeal of the convict labor law. Former President Cleveland and Booker T. Washington deliver addresses at Philadelphia at a meeting In aid of a manual training school for negroes. Marshal Montfort of Yukon, Ok., was shot in the stomach in a fight with four robbers who blew the Post Office safe open and escaped with their booty. Taxpayers of Ottumwa, Ia., will become stockholders of a waterworks company because the state courts will noi permit the city to incur further indebtedness. The Facific cable was successfully landed at San Francisco. Elaborate ceremonies marked the completion of the project which was founded by John W. Mackay. George Sawter, United States Consul st Antigua, British West Indies,

14. March 21, 1903 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, March 21, 1903

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ARREST OF AN EX-BANKER GEORGE B. WHITE ACCUSED OF FINANCIAL IRREGULARITIES. Held in $8,000 Bail for a Hearing Next Week-He Thinks "It Is Only a Trivial Matter." PHILADELPHIA, March 20.-Charged with embezzlement and other irregularities, amounting to about $20,000, George B. White, vice president and a director of the Bank of South Pennsylvania, at Hyndman, Bedford county, was arrested by a deputy United States marshal to-day and held in $8,000 bail by United States Commissioner Craig for a further hearing on next Wednesday. The warrant was sworn out by Special Bank Examiner W. A. Mason, who said he was acting under instructions from United States Attorney General Knox. White was arrested at his office in Philadelphia. He did not appear agitated at the charges made against him, and referred to his arrest as a matter of small importance. "It is only a trivial matter," he said; "merely a little question in banking business that can easily be explained." In an interview after the hearing Examiner Mason said: "I was ordered to Hyndman on Dec. 16 last, to investigate the condition of the bank. A few hours' work was sufficient to convince me that the affairs of the institution were in a bad condition, and I telegraphed to the controller to that effect, at the same time advising the closing of the bank. This was done, and I was appointed receiver. I found the bank, instead of having $10,000 surplus, was $50,000 worse off than nothing. Among the 'assets' were $11,000 worth of George B. White's notes, and a note signed by his sister, Mrs. S. W. Tully, of Philadelphia, for $5,000, dated in 1900. Mrs. Tully, I have positively learned, died two years before that date. Among these 'assets' also were notes to a large amount of the Hazen Tanning Company, a concern which failed years ago. "I have been able to pay the depositors in full, but the stockholders won't receive $5 on their shares, the par value of which is $100. A new bank has been started at Hyndman with J. J. Hoblitzell, former president of the South Pennsylvania Bank, as president. This is the best evidence that the government exonerates Mr. Hoblitzell, who was known to be president only nominally." Mr. Mason said further that the Hyndman Bank was organized in 1889 by John K. White, a brother of the accused, who, Mr. Mason says, is a fugitive from justice. He also organized the Hazen Tanner Com-

15. March 21, 1903 Evening Journal Wilmington, DE
Article from Evening Journal, March 21, 1903

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MADE A CLEAN SWEEP OF FUNDS Vice President of the Hyndman, Pa. Bank, Charged With Fraud BROTHER FUGITIVE FROM JUSTICE Philadelphia, March 21. - Charged with embezzlement and other irregularities amounting to about $20,000, George E. White, the vice president and a director of the Bank of South Pennsylvania, at Hyndman, Bedford county, was arrested by a deputy United States marshal yesterday and held in $8,000 ball by United States Commissioner Craig for a further hearing next Wednesday. The warrant was sworn out by Special Bank Examiner W. A. Mason, who stated that he was acting under instructions from United States Attorney General Knox. White was arrested at his office this city. He did not appear agitated at the charges made against him, and referred to his arrest as a matter of small importance. "It is only a trivial matter," he said, "merely a little ques. tion in banking business that can be easily explained." In an interview after the hearing Examiner Mason said: "I was ordered to Hyndman on December 16 last, to investigate the condition of the bank. A few hours of work was sufficient to convince me that the affairs of the institution were in bad condition, and 1 telegraphed to the comptroller to that effect, at the same time advising the closing of the bank. This was done, and I was appointed receiver. "I found that the bank, instead of having $10,000 surplus, was $50,000 worse off that nothing. The bank's assets consisted of securities that were worthless, among them notes of persons long since dead and of concerns which failed years ago. I have been able to pay the depositors in full, but the stockholders won't get $5 on their shares, the par value of which is $100." Mr. Mason stated further that the Hyndman bank was organized in 1889 by John K. White, a brother of the accused, who Mr. Mason states has been a fugitive'fron justice since 1893. Later his brother George came on the scene and claimed 300 shares of the bank's stock which had belonged to John. George was the promoter of the Amazon Trading Company. which was-organized with a capital of $15.000,000. Mason says the accused borrowed $380,000 from New York and Boston banks on the stock and then went into bankruptcy. "The government charges that George B. White knew the bank was inselvent when he took hold of It; that he entered into a conspiracy with another man to defraud, and that he made the cashier swear to false statements, and that he prepared and swore to false statements himself. Besides the charges of conspiracy and forgery. there is one of direct embezzlement of $2,000 against the prisoner."

16. March 24, 1903 The Free Lance Fredericksburg, VA
Article from The Free Lance, March 24, 1903

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BANK LOOTER ARRESTED Vice President of Hyndman, Pa., Institution Charged With Fraud. MADE A CLEAN SWEEP OF FUNDS George B. White, Whose Arrest Was Ordered By Attorney General Knox, Was Traced to Philadelphia-Held In $8,000 Bail. Philadelphia, March 21. - Charged with embezzlement and other irregularities amounting to about $20,000, George E. White, the vice president and a director of the Bank of South Pennsylvania, at Hyndman, Bedford county, was arrested by a deputy United States marshal yesterday and held in $8,000 bail by United States Commissioner Craig for a further hearing next Wednesday. The warrant was sworn out by Special Bank Examiner W. A. Mason, who stated that he was acting under instructions from United States Attorney General Knox. White was arrested at his office in this city. He did not appear agitated at the charges made against him, and referred to his arrest as a matter of small importance. "It is only a trivial matter," he said, "merely a little question in banking business that can be easily explained." In an interview after the hearing, Examiner Mason said: "I was ordered to Hyndman on December 16 last, to investigate the condition of the bank. A few hours of work was sufficient to convince me that the affairs of the institution were in bad condition, and I telegraphed to the comptroller to that effect, at the same time advising the closing of the bank. This was done, and I was appointed receiver. "I found that the bank, instead of having $10,000 surplus, was $50,000 worse off that nothing. The bank's assets consisted of securities that were worthless, among them notes of persons long since dead and of concerns which failed years ago. I have been able to pay the depositors in full, but the stockholders won't get $5 on their shares, the par value of which is $100." Mr. Mason stated further that the Hyndman bank was organized in 1889 by John K. White, a brother of the accused, who Mr. Mason states has been a fugitive from justice since 1893. Later his brother George came on the scene and claimed -300 shares of the bank's stock which had belonged to John. George was the promoter of the Amazon Trading Company, which was organized with a capital of $15,000,000. Mr. Mason says the accused borrowed $380,000 from New York and Boston banks on the stock and then went into bankruptcy. "The government charges that George B. White knew the bank was insolvent when he took hold of it; that he entered into a conspiracy with another man to defraud, and that he made the cashier swear to false statements, and that he prepared and swore to false statements himself. Besides the charges of conspiracy and forgery, there is one of direct embezzlement of $2,000 against the prisoner."