Multiple articles (late Sept. 1909) report a run (linked to a run on the Mercantile Trust Company and low reserves) followed by voluntary assignment to the State Banking Commission and appointment of James L. White as temporary receiver. Depositors were reported to be paid in full. The banks consolidated recently and the failed merger depleted resources. Dates: run reached crisis Saturday (Sept 25, 1909); suspension/receivership reported Sept 27–29, 1909.
Events (3)
1.September 25, 1909Run
Cause
Local Banks
Cause Details
A run on the Mercantile Trust Company (part of a recent consolidation) depleted resources and precipitated heavy withdrawals from the Land Trust Company; examiners had found low reserves.
Measures
None reported besides examiners' involvement and attempts to arrange merger/assignment.
Newspaper Excerpt
a crisis being reached on Saturday when a run was made on the Mercantile Trust Company.
Source
newspapers
2.September 27, 1909Receivership
Newspaper Excerpt
James L. White has been appointed temporary receiver, and an application will be made immediately for a permanent receiver.
Source
newspapers
3.September 27, 1909Suspension
Cause
Voluntary Liquidation
Cause Details
Unable to complete merger and lacking required reserves, the companies made voluntary assignment to the State Banking Commission and closed rather than face further runs.
Newspaper Excerpt
The Land Trust Company ... did not open for business today. James L. White, state bank examiner, is temporarily receiver for both banks.
Source
newspapers
Newspaper Articles (15)
1.September 27, 1909The Montgomery AdvertiserMontgomery, AL
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TWO TRUST COMPANIES WILL CLOSE THEIR DOORS Pittsburg, Pa., Sept. 26. 1 The Land Trust Company and the Mercantile Trust Company both of this city, will not open their doors tomorrow, arrangements having been made tonight whereby they will make assignments tomorrow to State Banking CommisState sioner W. H. Smith. Deputy Bank Examiner James L. White is in charge of both institutions as temporary receiver. Lack of money is given as the rea. son for the assignments, a crisis being reached on Saturday when a run was made on the Mercantile Trust Company. The Land Trust Company with a capital of $700,000 arranged about a year ago to take over the Mercantile Trust Company which has a capital stock of $750,000 but was unable to meet all the obligations to complete the merger. Two weeks ago Examiner White found the institution did not have the required reserve. The company was given an opportunity to bring the amount up to requirements, but the run on the Mercantile Trust Company on Saturday depleted the resources and it was decided to make the assignments. State Bank Examiner White stated tonight that all the deposits will be. paid in full.
2.September 27, 1909The Newark Star and Newark AdvertiserNewark, NJ
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RUNS DRAIN RESOURCES; PITTSBURG BANKS SUSPEND. Mercantile Trust and Land Trust Will Pay Depositors. PITTSBURG, Sept. 27.-The Mercantile Trust Company, capitalized at $750,000, and the Land Trust Company, capital $500,000, are closed today following a big run. An application will be made for a receiver and the affairs of both concerns will be wound up. State Bank Examiner James L. White asserts that there has been no crooked work and that no one will lose. There was a great run on the Land Trust Company. the cause of which is not known. Two weeks ago the bank examiners found the cash reserves of both concerns low and gave warning that they must be fixed up. The bankers say they were getting along well when the run came and hurt them badly. As they coûld not stand another run they decided on voluntarily closing.
3.September 28, 1909New-York TribuneNew York, NY
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BANKS SHUT DOORS. Temporary Receiver Named for Two Pittsburg Trust Companies. [By Telegraph to The Tribune:] Pittsburg, Sept. 27.-A secret meeting of the directors of the Mercantile and Land Trust Companies, which failed to open their doors today, was held at the Fort Pitt Hotel to-night. What was done could not be learned, but there is a report that the session was stormy at times and that the history of the banks was traced back a number of years. James L. White has been appointed temporary receiver, and an application will be made immediately for a permanent receiver. In the mean time a statement has been issued that the books show no irregularities, and the depositors are expected to receive dollar for dollar. When the banks closed it was known that no irregularities would be shown by tht books, but in the financial district to-day the purchase of the Mercantile Trust Company stock by the Land Trust Company was characterized as "most feverish high finance." The state bank examiner said that the stock of the Mercantile company had been paid for by certificates of deposit. These certificates could not have been met when they became due. This method of buying control of a trust company is regarded as precarious, and to it is traced in a manner the necessity of closing the doors of both institutions.
DEPOSITORS WILL NOT LOSE Two Pittsburg Financial Institutions Retire From Business. Pittsburg, Sept. 28.-The Land Trust company and the Mercantile Trust company, both state Institutions, did not open for business. James L. White, state bank examiner, is temporary receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements to assign voluntarily to the state banking commission. According to the officials the depositors will be paid in full. The capital stock of the Land Trust company is $500,000, with a surplus of $100,000. The deposits approximate $800,000. The capital stock of the Mercantile Trust company is $710,000. The deposits approximate $300,000.
5.September 28, 1909The Salt Lake Herald-RepublicanSalt Lake City, UT
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RECEIVERS APPOINTED. Two Trust Companies at Pittsburg Go to the Wall. Pittsburg, Sept. 27.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open for business today. James L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluntarily. According to the officials, the depositors will be paid in full. The capital stock of the two companies is $1,210,000.
BANKS SUSPEND WHEN MERGER PLANNED FAILS TWO STATE INSTITUTIONS AT PITTSBURG WITH AGGREGATE DEPOSITS OF $1,100,000 GO TO THE WALL-DEPOSITORS WILL BE PAID. By Associated Press. Pittsburg. Sept. 27.-The Land Trust Company, and the Mercantile Trust Company. both state institutions, did not open for business today. Failure to carry out a merger caused these companies to assign voluntarily to the state. The capital stock of the Land Trust Company is $500,000, with a surplus of $100,000. The deposits approximate $800,000. The capital stock of the Mercantile Trust Company is $710,000. The deposits approximate $300,000. According to the bank's officials, depositors will be paid in full.
TWO INSTITUTIONS CLOSE THEIR DOORS Pittsburg. Sept. 27.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open for business today. James L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluntarily. According to the officials, the depositors will be paid in full. The capital stock of the two companies is $1,210,000.
8.September 28, 1909The Fargo Forum and Daily RepublicanFargo, ND
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Article Text
MERGER-OF BANKS ENDS IN FAILURE PITTSBURG TRUST COMPANIES GO INTO HANDS OF STATE EXAMINER. Pittsburg, Pa., Sept. 28.-The Land Trust Co. and the Mercantile Trust Co., both state institutions, did not open for business today. James' L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out their merger, and made arrangements Saturday to assign voluntarily to the state banking commission. According to the officials, the depositors will be paid in full. The capital stock of the Land Trust Co. is $500,000 with a surplus of $100,000. The deposits approximate $800,000. The capital stock of the Mercantile Trust Co. is $710,000. The deposits approximate $300,000.
9.September 28, 1909Omaha Daily BeeOmaha, NE
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Article Text
New York Mining Stocks. NEW YORK. Sept. 37.-Closing quotations on mining stocks were as follows: Allee 176 "Leadville Con Brunswick Con 1 "Little Chief 6 Comstock Tunnel 8. 28 Mexican 23 *do bonds 185 Ontaria 750 Cen, Cal. & Va 110 Ophir 115 Horn Silver 75 Sist.dard 50 Iron Silver too Yellow Jacket 110 *Offered. Two Trust Companies Close. PITTSBURG, Sept. ST.-The Land Trust company and the Mercantile Trust/company. both state institutions, did not open for business today. James L. White state bank examiner. is temporarily receiver for both banks.
10.September 29, 1909The Forest RepublicanTionesta, PA
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Article Text
BANKS FAIL TO OPEN DOORS Bank Examiner Has Charge but Officers Say Depositors Will Get Their Money. Pittsburg, Sept. 28.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open for business yesterday. James L. White, state bank examiner, S temporary receiver for both banks. It is expected the court will appoint a permanent receiver some time today. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluncarily to the state banking commission. According to the officials the depostors will be paid in full. The aggregate deposits of the institutions approximate $1,100,000.
PITTSBURG BANKS SUSPEND PAYMENT Two State Institutions, Recently Consolidated, Fail to Open for Business. Pittsburg, Pa., Sept. 29.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open their doors for business today. James L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluntarily. According to the officials the depositors will be paid in full. The capital stock of the two companies is $2,210,000.
PITTSBURG BANKS SUSPEND PAYMENT Two State Institutions, Recently Consolidated, Fail to Open for Business. Pittsburg, Pa., Sept. 29.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open their doors for business today. James L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluntarily. According to the officials the depositors will be paid in full. The capital stock of the two companies is $2,210,000,
13.September 30, 1909The Bon Homme County IndependentTabor, SD
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PITTSBURG BANKS SUSPEND PAYMENT Two State Institutions, Recently Consolidated, Fail to Open for Business. Pittsburg, Pa., Sept. 29.-The Land Trust company and the Mercantile Trust company, both state institutions, did not open their doors for business today. James L. White, state bank examiner, is temporarily receiver for both banks. The trust companies consolidated recently. It is said they were unable to carry out the merger and made arrangements Saturday to assign voluntarily. According to the officials the depositors will be paid in full. The capital stock of the two companies is $2,210,000.
14.October 5, 1909Wausau PilotWausau, WI
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TWO PITTSBURG BANKS CLOSED. Land and Mercantile Trust Companies in State Examiner's Hands. The Land Trust Company and the Mercantile Trust Company, both, State institutions in Pittsburg, did not open for business Monday. James L. White, State examiner, is temporary receiver for both banks. These companies were consolidated recently, but, it is said, they were unable to carry out the merger and made arrangements Saturday to assign voluntarily to the State banking commission. Officials say the depositors will be paid in full.
15.October 7, 1909New-York TribuneNew York, NY
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CHARGE STATE OFFICIALS Turmoil Follows Allegations at Pittsburg Bank Meeting. [By Telegraph to The Tribune.] Pittsburg, Oct. 6.-After a stormy meeting of the stockholders of the Land Trust Company, which recently closed its doors, charges were made this afternoon that, with the knowledge of the State Banking Department of Pennsylvania, the July dividend of 1 per cent had been paid out of the pockets of President W. J. Griffith and Directors W. W. Giffen, John N. Dunn and S. W. Gault. State Bank Examiner James White, when questioned, admitted this to be true. Dr. J. J. Buchanan, a well known surgeon, then asked Mr. White whether the State Banking Department, knowing the bank to be insolvent, had allowed a dividend to be paid. Mr. White said he did not mean exactly this, but that while the State Department knew the situation it also knew that a suspension of the dividend would work serious injury to the stockholder and depositors. This statement caused great excitement among the stockholders. The stockholders passed a resolution providing for an investigation of the affairs of the Land Trust, and a committee was appointed and empowered to employ counsel. The books of the Land Trust are now held by the State Banking Department.
