16706. Federal National Bank (Pittsburg, PA)

View Charter #6023 on SPMC

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
6023
Charter Number
6023
Start Date
October 20, 1903
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
0bdb3063f5bc3b1b

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Full suspension, Books examined

Receivership Details

Date receivership started
1903-10-21
Date receivership terminated
1903-12-14
OCC cause of failure
Run

Description

Articles (Oct 20–22, 1903) describe a run/large withdrawals driven by a sharp decline in the bank's stock and circulating rumors (plus exposure to Eastern Tube paper), followed by a suspension/closing by the Comptroller and appointment of a receiver (Oct 21), and later reopening under old management in early December 1903. OCR fixes: 'Pittsburg' appears without final 'h' in some articles but refers to Pittsburgh, PA; receiver name appears as John B. (or J. B.) Cunningham in sources. Cause for the run is coded as rumor_or_misinformation because contemporaneous accounts emphasize groundless rumors and a stock 'raid' as the trigger, though bank-held paper of Eastern Tube aggravated confidence problems.

Events (7)
1. November 16, 1901 Chartered
Source
historical_nic
2. October 20, 1903 Run
Cause
Rumor Or Misinformation
Cause Details
Determined raid on the bank's stock on the Pittsburg exchange and circulating adverse rumors (groundless reports) about the bank's solvency; exposures to Eastern Tube Company notes heightened fears and sparked large withdrawals (over $500,000 reported).
Measures
Local banks offered assistance; appeals made to Pittsburg clearing house committee (which ultimately did not extend aid).
Newspaper Excerpt
Raid on Bank at Pittsburg... A run on that institution has resulted and the prompt action of the local financial banks in offering any assistance...
Source
newspapers
3. October 21, 1903 Receivership
Source
historical_nic
4. October 21, 1903 Suspension
Cause
Government Action
Cause Details
Comptroller of the Currency ordered the bank closed and appointed a receiver (B. / J. B. Cunningham) after heavy withdrawals and inability to meet demands.
Newspaper Excerpt
Closed by the authority of the comptroller of the currency. John B. Cunningham, receiver.
Source
newspapers
5. December 7, 1903 Reopening
Newspaper Excerpt
The Federal National bank, which closed its doors on October 21, reopened today under the old management. The reopening follows as a result of the report of the receiver ... showing the bank to be perfectly solvent and its capital unimpaired.
Source
newspapers
6. December 14, 1903 Restored To Solvency
Source
historical_nic
7. January 20, 1914 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (21)
1. October 20, 1903 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 20, 1903

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BANK HOLDS OUT. Raid on Bank at Pittsburg Caus Some Apprehension, Pittsburg, Oct. 20.-The Federal Na tional Bank on whose stock a rai was made in the local stock exchange yesterday has not, according to th statement of President Langfut suf fered any material hurt. A run on that institution has resulted and the prompt action of th local financial banks in offering any assistance that might be needed has served apparently to allay distount. held Langfitt admitted his Tube $140,000 in notes of the of Company, which went into Retends receivers lately but maids and "The bank's condition Its the losses will capital stock or reserve

2. October 21, 1903 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 21, 1903

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BANK CLUSES. Federal National, of Pittsburg, in Hands of Receiver. Had $50,000 of United States Money on Deposit. BUT THREE YEARS OLD Capital of $2,000,000 and Circulation of $700,000. Deposits Amounted to Nearly Two Million Dollars. Pittsburg, Pa., Oct. 21.-The doors of the Federal National bank were not opened for business this morning. The following notice was posted in explanation: "Closed by the authority of the comptroller of the currency. John B. Cunningham, receiver." Some such action has been within the possibilities for the past two days, forecasted by the determined raid made upon the institution's stock on the Pittsburg stock exchange. The positive statement, however, of the president, J. A. Langfitt, to the effect that the bank was not in need of money, and that its losses would not affect its capital or surplus did much toward allaying the distrust on the part of its depositors thus preventing a run. The closing of the bank was decided upon at a meeting of the directors last night which did not break up until 2 o'clock this morning. At that hour none of the officials would make a statement and locally the ouicome of the meeting was not generally known until the receiver's notice was posted at 9 o'clock. The bank is a United States depository and reported on hand September 9th, $50,000 of United States deposits. The stockofthecompany has been subjected to sharp declines on the Pittsburg exchange this week. On Monday the stock sold down from 115 to 85, but was forced up again to 101. All day yesterday it sagged and the closing quotations were 80 bid and 85 asked, a number of transactions having been made ac 80. The course of the stock has attracted much attention, and numerous adverse reports were in circulation but they were promptly and fully denied by President Langfitt. He stated yesterday evA ening that the bank had suffered only one possible loss. that of $140,000 for which it held notes of the Eastern Tube company of Dayton, O. That company is in the hands of a receiver and a plan of reorganization is being worked out. he said, and the bank's loss on that account may be small. The closing of the Federal National bank had apparently but little effect on the local stock exchange. Trading was light but firm at about yesterday's closing quotations. No dealings in any of the local bank stocks were recorded during the first hour's trading and no unusual action is looked for today. In a general way banking officials of the city feel confident that the Federal National bank's troubles will be confined to itself and will not disturb any other financial institution. Receiver Cunningham thinks it may be two or three days before he can make a statement of the bank's condition. A statement as to the cause of the failure has not vet been made public. Robert S. Smith, president of the Union National bank and president of the Pittsburg clearing house association, said: "I was assured last night by President Langfitt that every depositor would get every dollar due. It is possible that some small country banks which do business through the Federal National may be temporarily embarrassed. but even at that it will be only temporary." J. A. Langfitt, president of the Federal National bank in a signed statement says: 'The Federal National bank has finally yielded to the combined assaults of its stockholders and depositors and has closed its doorsuntilarrangements can be made to discharge all depositors claims. The question of reopening will then be decided. When the business depression came on, the stockholders, from necessity or fear began throwing the stock upon the market. The stock issue was large and the market weak. On groundless rumors our splendid list of depositors took fright and the rapid withdrawal of moneys began and increased until, despite our best efforts, the bank could not longer meet the demands upon it. Last night the directors believing such course to be the proper one under the circumstances ordered the bank to be closed temporarily and requested the

3. October 21, 1903 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, October 21, 1903

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PITTSBURG BANK CLOSED. Comptroller of the Currency Orders the Closing of a Pittsburg Bank. Pittsburg, Oct. -Notice was posted on the doors of the Federal National Bank at 9 o'clock this morning, announcing the bank closed by order of the comptroller of the currency. That some such action as this was within the possibilities of the past two days was forecasted by a determined raid upon the institutions stock on the Pittsburg stock exchange. The positive statement however of President J. A. Langfitt to the effect that the bank was not in need of money and that its losses would not effect its capital or surplus did much toward allaying distrust on the part of depositors, thus preventing a run. The closing of the ban... was decided upon at a meeting of the directors which did not break up until 2 o'clock this morning. ADD BANK FAIDLRE The defunct bank was a heavy loser by the failure of the Eastern Tube company of Zanesville Ohio, and was also affected by rumors of losses in connection with Reese Hammond and Bolivar national bank failures at Bolivar, Pa. Over half a million dol lars was withdrawn by depositors on Tuesday.

4. October 21, 1903 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, October 21, 1903

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BIG PITTSBURG BANK GLOSES ITS DOORS Its Capital Stock is Two Millions and Its Liabilities Seven Millions, Washington, Oct. 21.-The acting comptroller of the treasury last night appointed National Book receiver than Na for tional bank of Pittebarg. The only word the comptroller had was a long distance telephone message that the bank would not open today. No de tails were given: The bank is capitalized for $2,000,000. The Federal National bank for which a receiver has been appointed, is a heavy loser on the Eastern Tube company of Zanesville, O. More than half a million dollars was withdrawn by depositors yesterday, owing to the decline of the bank's stock on change. The last statement shows liabilities of $7,000,000. Bankers believe that the Federal National will pay dollar for dollar and that its embarrassment was due to tightened money and stock fluctuations. They don't believe the furry will extend to other banking. institutions. The president of the Federal bank at noon issued a statement saying that at no time was any depositor in danger of losing his money. When the doors closed the bank had nearly $2,000,000 in deposits, to secure which it had on hand in cash and good se curities more than $4,500,000. The president says nobody has defaulted, absconded or been smitten with paresis.

5. October 21, 1903 The Providence News Providence, RI
Article from The Providence News, October 21, 1903

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Federal National of Pittsburg iu the Hands of a Receiver-Action Decided Upon at All Knight Meeting of the Directors. Pittsburg, Pa., Oct. ar.-The doors of the Federal National bank were not opened for business this morning. The following notice was posted in explanation: "Closed by the authority of the comptroller of the currency. "John B. Cunningham, Receiver." Some such action as this has been within the possibilities for the past two days, forecasted by the determined raid made upon the institution's stock on the Pittsburg stock exchange. The positive statements, however, of the president, J. A. Langfitt, to the effect that the bank was not in need of money and that its losses would not affect its capital or surplus did much toward allaying distrust on the part of the depositors, thus preventing a run.

6. October 21, 1903 The Washington Times Washington, DC
Article from The Washington Times, October 21, 1903

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terests are said to have been accumulating stocks in their own class without bidding for them. Heavy purchases in Sugar today seemed to indicate that Washington political investors have been providing themselves with this stock on the idea that Cuban reciprocity is assured. Specialists in Union Pacific say the supply of stock seems to be limited. Advances do not bring out large lots as usual. The Harriman interests are believed to be accumulating both in Union Pacific and Atchison through banking houses that have bought heavily of these issues recently. Business on the Pittsburg stock exchange is almost at a standstill, owing to the unsettled financial situation there. The stock exchange in Pittsburg adopted a ruling today that the payment of loans should be suspended and speculation in bank stocks not participated in on the floor at present. Directors of the United States Steel Corporation have returned from their tour of inspection of the company's plants. The general curtailment of expenses has been decided on and some of the plants are to be closed. The enforcement of the plan to reduce wages will be left to the subsidiary companies. The principal significance of the failure of the Federal National Bank in Pittsburg this morning. lies in the fact that the collapse occurred after the clearing house committee had agreed to tide it over the troubles. The possibilities of the rumor are exhausted. It is now "rumored there will be no more rumors." The meaning intended to be conveyed is that the last had been heard of a possible spread of the Baltimore trouble. "The country is so rich,' said a broker critic, "that eighteen months' savings will wipe out the losses suffered by the public in the stock market."

7. October 22, 1903 Durango Semi-Weekly Herald Durango, CO
Article from Durango Semi-Weekly Herald, October 22, 1903

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PITTSBURG BANK FAILS TO OPEN PITTSBURG, Pa., Oct. 21.-The Federal National bank did not open its doors this morning and the comptroller of the currency has appointed B. Cunningham receiver. The bank was established in 1901 with a capitál of $2,000,000. The last statement in September shows resources of over $7,000,000. Joseph A. Langfett is the president. The collapse was caused by the failure of the Eastern Tube company of Zanesville, O., and the Boliver National bank at Boliver, Pa. The Federal National bank was aggressive from its inception and assisted in organizing a number of banks in Western Pennsylvania. Among bankers it is believed that the assets of the bank will more than pay dollar for dollar. The opinion prevails that the flurry will not extend to other institutions and that the embarrassment of the Federal National bank is only temporary.

8. October 22, 1903 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 22, 1903

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Second Bank Caught By Pittsburg Failure. A RUMOR THE CAUSE Resources Said to Cover All Obligations. Pittsburg, Oct. 22.-Because of a report connecting the First National bank of Allegheny with the Federal National bank, which was closed yesterday, and which caused a run on the former, its directors today decided to make application to the comptroller of the currency to place the First National in voluntary liquidation.

9. October 22, 1903 Daily New Dominion Morgantown, WV
Article from Daily New Dominion, October 22, 1903

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Latest reports from Pittsburg are to the effect that the failure of the Federal National will not seriously embarass any one in that city. The bank will pay out without any difficulty. All the other banks will be protected by the clearing house and nothing further along the line of suspensions is to be anticipated.

10. October 22, 1903 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, October 22, 1903

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New York Market Affected. New York, Oct. 22.-The stock market was confronted at the opening with the announcement of the suspension of the Federal National bank of Pittsburg, Prices ran off in consequence under heavy offerings in some of the prominent stocks. United States Steel preferred showed the greatest effect among the active stocks. There was a drop of 1½ on the sale of 1,600 shares. There was a subsequent rally of three. quarters. Rallies on secondary quotations showed the effect of supporting orders in the market. There was a drop of 4 points in Lackawanna, and Tennessee Coal was conspieuous for an isolated gain of three-quarters.

11. October 22, 1903 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 22, 1903

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The stock of the bank has been subject to sharp declines on the Pittsburg Exchange this week. On Monday the stock sold down from 115 to 85, but was forced up again to 101. All day yesterday it sagged and the closing quotations were 80 bid and 85 asked. a number of transactions having been made at 80. The course of the stock has attracted much attention, and numerous adverse reports were in circulation, but they were promptly and fully denied by President J. A. Langfitt. He stated yesterday evening that the bank had suffered only one possible loss, that of $140,000, for which it held notes of the Eastern Tube Company, of Zanesville, O. That company is in the hands of a receiver and a plan of reorganization is being worked out, he said, and the bank's losses on that account may be small. Following is the signed statement of President Langfitt: "The Federal National Bank has finally yielded to the combined assaults of its stockholders and depositors, and has closed its doors until arrangements can be made to discharge all depositors' claims. The question of reopening will then be decided. When the business depression came on the stockholders, from necessity or fear, began throwing the stock upon the market. The stock issue was large and the market weak. Thereupon disquieting rumors sprang into birth, groundless, baseless and perhaps in some cases malicious. These increased the weakness of the stock. and the weakness increased the rumors until our splendid list of depositors took fright and the rapid withdrawal of moneys began and increased in volume daily until, despite our best efforts to call in loans and provide funds, the bank could no longer meet the demands upon it, and drastic measures became necessary. Our demand loans could not all be collected forthwith and our time notes had not yet matured. Last night the directors, believing such course to be the proper one under the circumstances, ordered the bank to be closed temporarily and requested the controller of the currency to take charge.. "Two weeks ago our deposits exceeded four million dollars and until yesterday, when the floods came, we had maintained our full legal reserve. Nobody has defaulted or committed suicide, or absconded. The board of directors is and has been always loyal to the bank and in full accord and harmony. We have had no actual losses, and, with one exception, our combined losses up to date would not aggregate one-half of 1 per cent. of our capital. The exception referred to is our claim against the Eastern Tube Company, which may or may not result in loss, and even if a total loss should there ensue, it could be paid in full out of our individual profits of $160.000 without touching either our capital of $2,000,000 or surplus of $400,000. "The officers and directors are but the servants of the stockholders and trustees for the depositors. They have tried their utmost to prevent this climax-this acme of financial stupidity and money madness. When all other efforts failed to stem the tide, they sought the financial help of the committee of associated banks of Pittsburg and received most courteous and kindly sympathy and advice. When our doors closed we had approximately $1,900,000 of deposits to secure which we had on hand in cash, time and demand loans and other good securities about $4,600,000. This was our condition after having paid out to depositors in addition to current receipts and disbursements over $2,000,000 within fifteen days in a period of generally strenuous financial conditions. Despite this full and ample security, quickly available, our depositors seemed almost frenzied in their haste to get their money lest they should lose it all. There is not now and never was a moment when they, or any of them,

12. October 22, 1903 The Sun New York, NY
Article from The Sun, October 22, 1903

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PITTSBURG BANK FAILS. The Federal National Goes Into the Hands of a Receiver. PITTSBURG, Oct. 21.-The crippled Federal National Bank of this city, capitalized at $2,000,000, has failed. Information was sent to the Comptroller of the Currency at Washington at midnight that the bank would not be able to open for business this morning, and Bank Examiner J. B. Cunningham was immediately appointed receiver. Yesterday it was reported, as a cause of the bank's difficulties, that it held paper of some concerns that had been associated with the Reese-Hammond Fire Brick Company and the Bolivar, Pa., Bank, both of which were in the hands. of receivers. President Langfitt of the Federal National admitted that the bank held $140,000 in notes of the Eastern Tube Company, which went into the hands of receivers lately. Yesterday the directors of the bank, after being in session several hours. decided that they could not withstand the demands on the bank. and asked for aid from other local banks and bankers. It was said that in almost every instance this was refused. An appeal was made to the Pittsburg Clearing House Association, and the committee, after debating the matter, decided that no aid could be extended. Yesterday between $500,000 and $600,000, it was said, was drawn from the institution by depositors and banks in Pennsy vania, Ohio, West Virginia and elsewhere. The deposits yesterday were small. Small country banks were the principal depositors. The Federal National Bank was chartered on Nov. 16, 1901. The capital is $2,000,000 and the surplus fund $400,000. The stock was put out at $120 a share. It advanced rapidly on the Pittsburg Stock Exchange, and a few months after the organization it sold for $144.75 a share. The bank's last report to the Comptroller of the Currency, as of Sept. 9, is as follows:

13. October 23, 1903 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, October 23, 1903

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ONE MORE PITTSBURG BANK HAS TO CLOSE UP First National Bank of Allegheny Goes Into Voluntary Liquidation. PITTSBURG, Pa., Oct. 22.-Following the suspension yesterday of the Federal National bank, Pittsburg, the First National bank, of Allegheny, failed to open its doors for business today, and its directors have notified the comptroller of the currency that the institution has gone into voluntary liquidation and requested him to take the necessary action in such cases. The suspension of the Allegheny bank, which has been the representative of the Federal National in the clearing house, is looked upon by bankers as the almost necessary sequence of the failure yesterday, and that no further trouble will follow. The depositors, it is promised, will be paid in full. The capital is $250,000 and the deposits $1,128,585. John Thompson is the president.

14. October 28, 1903 The New Dominion Morgantown, WV
Article from The New Dominion, October 28, 1903

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Latest reports from Pittsburg are to the effect that the failure of the Federal National will not seriously embarass any one in that city. The bank will pay out without any difficulty. All the other banks will be protected by the clearing house and nothing further along the line of suspensions is to be anticipated.

15. November 29, 1903 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, November 29, 1903

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Bank Will Reopen. Pittsburg, Pa., November 28.-It is announced that the Federal National bank, which closed its doors on October, 21, will reopen on December 7 under the old management. According to the report of the receiver to the comptroller of the currency, the bank is perfectly solvent and its capital unimpaired.

16. December 7, 1903 The Evening Statesman Walla Walla, WA
Article from The Evening Statesman, December 7, 1903

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Pittsburg Bank Reopens. PITTSBURG, Pa., Dec. 7.-The federal National bank, which closed its doors on October 21, reopened today under the old management. The reopening follows as a result of the report of the receiver to the controller of the currency, which showed the bank to be perfectly solvent and its capital unimpaired.

17. December 11, 1903 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 11, 1903

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TRADE, INDUSTRY, LABOR Half of the orange and lemon crop in the vicinity of Messina, Italy, was destroyed yesterday by a heavy hailstorm. The controller states that the bank apparently was solvent at the time of the closing, and will resume with an unimpaired capital. Girls to the number of 2,000, employed in the manufacture of petticoats at New York, have formed a union and demanded a general increase in wages. The Wood plant of the American Sheet Steel Company at McKeesport, Pa., shut down yesterday in all departments. Twelve hunderd men are affected. No time has been set for resumption, though it is said the shut-down will not be a lengthy one. The big gorge bridge over the Cuyahoga river, near Cuyahoga Falls, O., was crossed yesterday for the first time by the Northern Ohio Company's electric cars. The bridge is the largest in America for use of electric lines. It is over 400 feet long and 110 feet in height. The controller of the currency has authorized the Federal National Bank, of Pittsburg, Pa., which closed its doors Oct. 31, 1903, to resume business on the 14th instant, and the receiver has been instructed to surrender to the new president and board of directors all the assets of the bank in his possession. The Railway and Electric Equipment Company, capital $1,000,000, organized to sell cars and locomotives for steam and electric railways, has filed articles of incorporation at Augusta, Me. Elwood C. Jackson. of Philadelphia, Charles C. Rolston, of Chicago, and Frank J. Lewis, of Cleveland, are among the incorporators. Through the National Association of Manufacturers of Steel Products, which is composed of concerns located all over the country, and having extensive trade not only in the United States, but in foreign countries, a petition has been presented to the railroad companies asking for the same special concessions that were granted to the steel manufacturers for export goods. Judge Kohlsaat, in the United States District Court at Chicago, yesterday refused to change the order made recently by which John Alexander Dowie agreed to pay the costs of the receivership of the Zion industries. The change was sought by the attorney for one of the creditors, the point being made that Dowie's solvency had not been technically proven in court. A merger of the electric lighting and power plants in the coke regions and the Pittsburg, McKeesport & Connellsville Railway system has been effected and an application for a charter for the combined Interests will be made at Harrisburg Dec. 31. It is said the capitalization will be considerably over $5,000,000. The new company, which will be known as the Western Pennsylvania Railways Company, will be in control of the entire lighting, power and streetrailway system of Westmoreland and Fayette counties, as well as part of the trolley system of Allegheny county.

18. December 15, 1903 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, December 15, 1903

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BANK REOPENS Pittsburg, Pa., Dec. 13-The Federal National bank which was closed by the stock panic, early in October, will open tomorrow morning. A statement issued shows the bank will open with $1,439,640 in cash, and with resources aggregating $4,597,353.22. New officers will manage the bank. Col. Hugh Young, the noted bank examiner, is president.

19. December 16, 1903 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, December 16, 1903

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Federal National Bank Open. Pittsburg, Dec. 15.-The Federal National bank, after two months' suspension, has resumed business under very auspicious circumstances. Before the doors opened a number of persons were waiting to enter, and the first man at the window deposited $30,000.

20. July 29, 1914 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 29, 1914

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Culls from the Wire Ten of the largest forest fires in western Montana and northern Idaho this season are raging and the eforts of scores of men have made little progress against the flames, according to tilegrams received at forestry headquarters at Missoula. The supreme council of the Loyal Order of Moose, meeting at Milwaukee, deeided that when an adjournment is taken here It will be to meet in Baltimore September 7 at the time of the Star Spangled Banner celebration, when the new Moose home will be dedicated by Vice President Marshall. About 7,000 members of the Inside Iron Workers' union in New York City went on strike yesterday, demanding a wage increase of 20 per cent, a fifty-three hour week instead of sixty or sixty-five hours, recognition of the union and more sanitary shop conditions. About 250 places where structural iron work is turned out were affected. Fred D. Warren, for fourteen years editor of the Appeal to Reason, a secialist newspaper at Girard, Kan., resigned because of ill health. Louis Koehling, at present managing editor, will succeed Mr. Warren, and Walter H. Wayland, son of the late J. A. Wayland, founder of the paper, will hereafter be sole owner and publisher. A suit in equity was filed in the United States district court of Pittsburgh by George V. Brown of Cleveland, asking that a receiver be appointed for the Federal National Bank of Pittsburgh. Brown, who is a stockholder, alleges that the directors "carelessly, negligently and fraudulently" loaned to John H. Jones. and the corporation, which he owned and controlled, $700,000. He also charged that the directors diverted the funds and used them in conducting a lumber manufacturing business with a loss of $300,000 to the bank.

21. August 11, 1914 The Alaska Daily Empire Juneau, AK
Article from The Alaska Daily Empire, August 11, 1914

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PITTSBURGH BANK IS IN TROUBLE PITTSBURGH, Pa., Aug. 10.-Suit has been filed in Pittsburgh asking for a receiver for the Federal National Bank of that city, capitalized for $1,000,000. Directors are accused of diverting the bank's funds to a lumber business, causing a loss of $300,000.