16968. Dime Bank Title & Trust Company (Wilkes-Barre, PA)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
trust
Start Date
September 22, 1931
Location
Wilkes-Barre, Pennsylvania (41.246, -75.881)

Metadata

Model
gpt-5-mini
Short Digest
f95ad1cb628e3ed1

Response Measures

None

Description

Newspapers state the Dime Bank Title & Trust Co. closed and was taken over by the Pennsylvania Secretary of Banking on/around Sept. 22, 1931 after 'heavy runs' affecting multiple Wilkes-Barre banks. A state receiver was later appointed (Nov 24, 1931) and the bank remained closed and in liquidation through 1932โ€“1933. Cause of initial runs appears linked to runs on local banks (multiple local bank closures) rather than a specific false rumor or single bank-specific disclosure.

Events (5)

1. September 22, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals and runs at multiple Wilkes-Barre banks (Pennsylvania Liberty Bank & Trust Co., Heights Deposit Bank, and Dime Bank Title & Trust Co.) suggesting contagion from local bank distress.
Measures
Clearing association proclaimed withdrawal rule (sixty-day rule) and banks placed under state control to stem withdrawals; some banks arranged partial (10%) payments to tide depositors over.
Newspaper Excerpt
Central banks ... subjected to heavy runs yesterday reported conditions more nearly normal today ... when the Pennsylvania Liberty Bank and Trust company and the Dime Bank Title and Trust company closed their doors ... Heavy Runs At Banks.
Source
newspapers
2. September 22, 1931 Suspension
Cause
Government Action
Cause Details
State Department of Banking took the bank into custody/took over property to conserve assets and prevent preference; closure followed the runs and state intervention.
Newspaper Excerpt
The Heights Deposit bank ... failed to open for business ... property of the institution had been taken over by Secretary of Banking Gordon ... the Pennsylvania Liberty Bank and Trust company and the Dime Bank Title and Trust company closed their doors and [were] taken by the state banking [department].
Source
newspapers
3. November 24, 1931 Receivership
Newspaper Excerpt
W. D. Gordon, State secretary of banking, yesterday announced the appointment of Joseph Reinhard to serve as receiver for Dime Bank Title and Trust Co.... He has already filed his bond and qualified to serve as receiver.
Source
newspapers
4. March 15, 1932 Other
Newspaper Excerpt
Distribution of funds in Wilkesbarre's three closed banks ... has been delayed by failure of surety to pay their bank-deposit bonds ... There is bond of $250,000 of Dime Bank Title & Trust Co....
Source
newspapers
5. January 6, 1933 Other
Newspaper Excerpt
The bank ... closed September 22, 1931. When the bank closed, Ross Lloyd, its president, said he knew [assets would] be paid ... On October 10, the secretary of banking per cent. payment in which $174,000 was distributed among 8,100 depositors.
Source
newspapers

Newspaper Articles (14)

Article from The Times-Tribune, September 23, 1931

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SIXTY-DAY RULE PUT EFFECT BY BANKS WILKES-BARRE HOUSES ACT OVER STATE TAKES OVER HEIGHTS BANK. Wilkes- Barre, Sept. 23 (INS). The third bank in Wilkes Barre to close In many days, the Heights Deposit bank here, failed to open for business On the at the hour set for was notice stating property of the institution had been taken over by Secretary of Banking Gordon, to conserve of positors and stockholders and prevent preference for withdrawing The last statement of the bank showed assets deposits of talized at had in surplus and undivided profits of The institution. located in midterrific and last evening. when the Pennsyl vania Liberty Bank and Trust company and the Dime Bank Title and Trust company closed their doors and taken by the state banking Early today and decided to place the in the hands of the secretary of banking. W. B. Davies was placed in charge. Heavy Runs At Banks. Central banks most of them subjected to heavy runs yesterday reported conditions more nearly normal today as withdrawal rule was proclaimed by the Clearing association and rerushed in from federal to stem the tide of withdrawals Despite the recession in uneasiness, there considertension the general bank ing situation and to allay it. several banks they would pay 10 per cent to tide depositors over while the rule is


Article from The Times Leader, November 24, 1931

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Named Dime Bank Receiver Joseph Reinhard Served Institution as Assistant Cashier W. D. Gordon, State secretary of banking, yesterday announced the appointment of Joseph Reinhard to serve as receiver for Dime Bank Title and Trust Co. He is manager of the local office of Cassatt and with offices in Miners bank building. Mr. Reinhard has had extensive the banking business, particularly with the Dime bank, having been its assistant cashier for nine years from the time of its organization. Before becoming associated with Cassatt and Co., Mr. Reinhard was with National City Bank in New York for six years. He has already filed his bond and qualified to serve as receiver. Latvia is the only known Eurocountry in which wholesale food prices have advanced since July.


Article from The Times Leader, January 19, 1932

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Bank Receiver Files 31 Additional Judgments At the hour for closing the prothonotary's office yesterday afternoon Joseph Reinhard, receiver of Dime Bank Title & Trust Co., filed thirty-one additional judgments against persons who had notes in the bank.


Article from Pittston Gazette, March 15, 1932

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FUNDS SURETY COMPANIES Distribution of funds in Wilkesbarre's three closed banks, that were taken over by the State Departmen of Banking, has been delayed by failure of surety to pay their bank-deposit bonds to the Commonwealth of Pennsylvania. Reports from Harrisburg are that almost $4,500,000 is due the Commonwealth on unpaid bank deposit bonds. Of that amount, $430,000 are represented in the bonds on public funds in the three closed banks in Wilkesbarre. There is bond of $250,000 of Dime Bank Title & Trust Co., one of $150,000 of Pennsylvania Liberty Bank & Trust Oo., and one of $30,000 of Heights Deposit Bank.


Article from The Times Leader, December 23, 1932

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Dime Bank Affairs Run at Liberty's Quarters Today Business of the closed Dime Bank Title & Trust Co., WilkesBarre will be sylvania Liberty Trust Co. 16-18 North Main street, beginning today, Walter Oliver, deputy in charge of banks and vicinity, announced last night. All the business of the three closed banks in this city, The Dime, Liberty and Heights Deposit, is being run from the Liberty bank quarters as is the business of People's Savings & Trust Co. of Duryea and Plains State Bank of Plains, except that the buildings of those two banks are being kept open, for the present, for the collection of notes. Mr. Oliver said the consolidation of the activities of the five banks will facilltate liquidation and lessen the cost.


Article from The Times Leader, January 6, 1933

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STUDY IS FUTILE Oliver Admits Scrutiny of Inventory Necessary to Get Whole Story The Dime Bank receiver's on Page 13. The long-awalted report showing Dime Bank Title & Trust Co. came out yesterday. was in the first and partial acReinhard, celver acting as special agent for William Gordon, state secretary banking, and filed H. Bonin, prothonotary. showed that the bank's assests as September 22, 1931, were bank the assets totaled $1,759,688 as of December 13, 1932. The Bank's own statement as of June 30, 1931, the last before the assets at $4,603,774.17. Reinhard's accounting was contained columns totaling pages single spaced typewritten sheets. After Record reporters and acspent hours studying the document, Walter Oliver, special deputy Gordon charge all closed banks said that to get the whole story back of the statement would necessary to study an inventory. This inventory, Mr. Oliver had filed court last April. Although he copy, Mr. Oliver refused offer for unless directly authorized by Dr. Gordon. Telephone calls to reach the state banking secretary Harrisburg and Philadelphia were fruitless. inventory is known to tain the names of those against the closed bank holds notes. Mr. Oliver said that while might possible for an accountant build up statement of the total amount owed the by each would tremendously difficult The bank located West Market Franklin streets. closed September 22, 1931. When the bank closed, Ross Lloyd, its president, said he knew be paid He said that with capital of plus $800,000, total of $1,300,000, addition to other assets, there should be sufficient protection deposits less $2,500,000. On October 10, the secretary of banking per cent. payment in which $174,000 was distributed among 8,100 depositors.


Article from Wilkes-Barre Times Leader, January 11, 1933

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IS DUE HERE TO 'DIME' General Conduct of Affairs at Closed Institution is Reported Aim of State Department Investigation by the Pennsylvania State Department of Banking into affairs of the closed Dime Bank Title & Trust Company to get underway here this afternoon, following the arrival at o'clock of personal representative of Dr. William B. Gordon, State banking secretary Efforts made in this and through the Associated Press at Harrisburg failed to establish the identity the investigator. It was stated by high authority here that there will be no particular probe launched into the stolen bonds velopment closed hank but that the investigator look into matters generally insofar as the Dime Bank concerned Representatives depositors and stockholders today awaiting receipt Dr. whether provided with copy the partial report of W. Reinhard Dime Bank they must secure their costs liquidation and other pertinent matters from the single copy file the Prothonotary John Bonin. the number people the contents of the report and the inventory, the volumes use the prothonotary's office during busihours. It understood that one obstacle that is any further distribution of Dime Band the legal technicalities in the disposal almost State funds which were on deposit the bank. The State claims priority the payment of these funds while the State Banking Department tends they should the manner other funds with no priority shown.


Article from The Times Leader, January 12, 1933

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FEES CHALLENGED Extravagant and Poorly- Buttressed Loans Are Alleged The trust department of the closed Dime Bank Title and Trust Co. yesterday was revealed the object of court attack. Its administration guardian of the estate of Paul H. Davidow brought forth charges from the substitute guardians that the accounting filed by the bank receiver last charges for services extravagant and poorly buttressed loans. The charges are contained in exceptions the upon which hearings will be held exceptions signed by are Espy trust officer Bank. The Dime Bank Title and Trust guardian for Mr. Davidow, and, the State department banking charge the instituLuzerne county court tion, named Wyoming National Bank the bill of excepTestimony on tions was taken before Judge Lean November when Attorney Frank Pinola, special counsel the State department banking, and Attorney Leo White, defended Dime Bank and Trust Co.'s final account of the Davidow fund. the of Mrs Frances mother next kin of Paul Davidow and comof his estate in New York State, joined that closed wrongfully claimed credit for commission principal to the credit under the circumstances and excessive under any The exceptants also objected and took sum $3,700 the principal mortSterne, wife. alleged the and the was made, improvident and that the security for it is insuffiand Because the substantial loss, which the result the estate cause of the that the claimed by closed bank be disallowed. same reason were forth objection the sum $19,500 the principal funds the mortgage the mortgage Albert Grabark investment, request was made for disallowment mission credit claimed by the decharged the bill of the account not provide offsetting balances due the against any which might the bank. was that the final account was full and complete quired and the exceptions taken information available the ceptants held that they served the right, any before the closing the audit of the account, to additional exceptions they may consider advisable.


Article from Wilkes-Barre Times Leader, January 13, 1933

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Action Urged On 'Dime' Funds; Depositors Await Dividends Times-Leader Asks Authorities For Quick Decision on Method of Distributing $369,000 in Cash-State Claims Money With more than $369,000 in ready cash credited to the closed Dime Bank Title & Trust Company tied up until a decision is reached as to who really owns the funds, the today demands some action that will enable depositors to either look forward to receipt of another early dividend or abandon hope of further immediate payment of part of their life savings. The first step necessary to gain this understanding is settlement legal controversy which has arisen the matter of the priority or of $304,000 in inheritance tax placed on deposit the Dime by Stanley M. Yetter the deposit was Register Wills Luzerne County. Conflicting claims as the exact status money existed since the bank closed in September of more than fifteen months ago, and until today no been given authorities depositors look for protection. Information Due Depositors Scores of depositors have declared they would rather learn definitely that the $304,000 be accorded priority and as result be lost them building hopes of sharing the distribution, only have their expectations later. is with this deof depositors in mind. that the Times on record demanding some clarifying action Holding opposite views in the matter are the State Treasury Department and several bonding on one side, and the State Department Banking and depositors the other. Attorney Frank Pinola, as specounsel for the banking department contends that the heritance funds due state should be treated same manner other deposits and distributed the manner-on percentage dend basis. The State treasurer and bonding companies hold that the money preferred claim and should be paid bulk the State Pennsylvania before claims of vidual depositors cared for. Double Previous Dividend Settlement of these conflicting claims would bring the controversy head. Should the State Banking Department's contention be upheld would mean that exactly double the amount the first per cent disbursement of could be distributed to Dime Bank depositors. Should the State treasclaims favored would mean that depositors would have little more $69,000 in ready available and make further liquidation before another dividend paid. One or the other, depositors would Please Turn To Page 27


Article from The Times Leader, January 14, 1933

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Bond Discovery Was Withheld Dime Bank Receiver Admits Finding Stolen Securities Last Year Discovery of stolen bonds in the Dime Bank Title and Trust Co.'s vault was made more than year was admitted yesterday W. Reinhard, receiver in charge of the institution after was closed and taken over by the State department of banking in September, 1931. Information about the discovery of the missing securities in the defunct bank was withheld from the public until Monday. On that day Attorney Frank Pinola, counsel to receivers WilkesBarre's closed banks. made the announcement the finding bonds quoted the newspapers saying that he had on the matter to Shippen Lewis, special deputy attorney general, and Dr. William Gordon, secretary of the State banking department, their Harrisburg offices. Late yesterday afternoon at the office Dr. Gordon first Doty, said that did believe torney Pinola's report had been rethere. Pinola's report has been ceived by Dr. Gordon ing about He has discussed with said Mr. Doty, plaining that was possible that have been either Dr. Gordon or by Dr. Gordon's Mr. Doty also said that Dr. Gordon's Harrisburg office had knowledge of receipt from Attorney Michael mittee stockholders, for copy of the inventory and the first and partial copy Reinhard Torlinski's formal quest sent to Dr. Gordon registered on Tuesday. AttorTorlinski yesterday received receipt ney card from the postal department showing his letter been Thursday afternoon John Kistler, employe of the State sumably an banking Pinola last night maintained policy silence about banking matters. He bonds about Reinhard's questioned admission that the stolen securities discovered January, 1931, also about explanation that brought special attention, but reply all questions was have must come from my His superiors, Attorney Pinola explained, Gordon Attorney General William Schnader Other than to admit, upon questioning, that the bonds found the Dime bank early in 1931 and that their discovery was promptly reported Attorney Pinola, Mr. Reinhard had nothing to say. He to reply questions about bonds their serial clined report as whether they pledged collateral person whose safety deposit box they found. Efforts have Mr. Reinhard the from Garfield bank New York City in 1927 were also availing. Bonds stolen from the Garfield National bank, was recalled when Pinola reported the Dime Bank, brought into Luzerne and used collateral for the borrowing funds finance political campaign. After the primary campaign and the defeat candidate whose behalf alleged the was vestigation was started which conviction three local were charged with complicity handling stolen securities.


Article from The Times Leader, January 26, 1933

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LECTURER VISUALIZES TERRORS OF NEXT WAR To Open Offices Fear Leading to Armaments, to to Fear is Space Leased in Dime Bank Vicious Circle Says Mrs. Zangwill Building for Committee Headquarters A fervent appeal to support world disarmament was made last night Temple Israel Zangwill of London, touring Eastern behalf the that the Hoover be taken when convenes was passed unanimously audience and copies resolution be forwarded President Roosevelt president the conference. Mrs. Zangwill an impressive picture conditions the world and described probable scenes in the of another war, which, she said, is imminent under present armaments. The next an stated, to large with chemicals Discussing armaments, speaker the world spending some $4,750,000,000 or United said, round numbers for almost much armaments cost for the year before Mrs. Zangwill said she does not expect abrupt ment, work times these, but said gradual. She could pay armament workers present wages for doing nothing and would be the worse," she they not fighting and in case work, destructive. Her address, part: "Every followed first fictitious boom in trade, then period depresCompare the hungry forties century hungry thirties of century. present workers With duction of armaments, those thrown work would have for Evenwould into ordinary industry. Then they would become self-supporting instead State-supported. Taxation could decreased 'Armaments are not governed reason but by and that feeling The the pacifists, are the sentimental people. We have circle, ments reduction armaments the only viclous circle. make war impossible heart But World Court, the Nations, make war less They delay delay war, nine cases out ten you avert creditor country the United States and responsibility. There direct connection tween and there an indirect connection. Without substantial all-around reduction there of prosperity. Without return world prosperity, the European nations not to the war debts, United States cannot afford remit any the good this America's there real disarmament, other will children wear masks, they will victims. shall put our bables the front firing line. other the innocents, dreadful. Rabbi Samuel presided. Edward Kent, president local chapter of Women's League Peace, Zangwill for Pittsburgh, last night of Mr. and Hand. The resolution passed by about 300 persons last night and be forwarded Hoover, Mr. Roosevelt and the president of the Disarmament "This meeting, conscious of the nature war and the tendency great to produce urges that the Hoover proposal taken by the disarmament conference starting point world disarmament. "Further, meeting feels that drastic world by promoting the return to world perity, will solution of problem of war debts.' Office for headquarters Protective Committee of Dime Bank Title and Trust Company was leased yesterday in the Dime Bank building, West Market and Franklin Streets, by Boyle, secretary and temporary treasurer of the committee. Mr. Boyle announced that the fice will ready for next and that there in charge accept defray the pense Information the depositors the defunct bank. He that the office been leased through renting agent charge building which State Banking Department operating an the rental office be $15 month. treasurer the resignation Mr. Tuesday. Rudolph elected treasurer Saturday. opened count for the in Miners Bank made start names dresses depositors and stockholders from the and partial report Dime Bank's receiver the office. turned Boyle Mr. Rudolph who will continue much his time as to the work the committee. Ross Lloyd, former president of Dime night glad appear and assist them their work. effect. by Frank statement published the yesterday. directed attention the the importance having all the possible its proposed fight against closed banks extending payments State that protected by security Attorney Williams pointed out that committee would obtain from Ross Lloyd other officials Dime information about the which those made and bonded would materialpreparing exceptions first and partial report Reinhard, as receiver. In March, 1932, Attorney WilHams the attention Pinchot the the State being deposits that the governor, Attorney Williams "During campaign tour, particularly Counyou seemed much Interthe working class people. seems to this time there opportunity for you your offices in assisthad money Luzerne County which closed. true with reference the Dime Bank Title Company, bank the City which closed and there considerable State money, be predicated banks throughout the State. courts determined State being against believe safely say that one closed those banks operating, view the fact that State and has preferred claim, the State every time any money deposited in bank, our statute bond had be furnished for State protection, particularly immediate payment State. understand that the State making preferred the Dime Bank Title and Trust upon right. bonded. for the bond can under the State should bonding company for its money and allow the bonding company come any other colupon duty liability which they perform. This and the wholesale closing banks has brought out the absurdity questing unless the looks the bonding company for payment. assistance in this matter will anxiously least this Counat 1,000,000 throughout Pennsylvania. very grave and feel that matter responsible for law being applied the proper depositors thereby safe guard-


Article from The Times Leader, January 30, 1933

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Five Developments Dime Losers Expect This Week Depositors and stockholders of the defunct Dime Bank Title and Trust Company looking for five definite which, they hope, help them toward solution this week their and how much of it they are going what money to recover after the bank's failure, now going on years old. They expect: 1-District Attorney Thomas M. Lewis to say whether he thinks grand jury investigation is warranted by that stolen bonds were found bank vaults and that the State Department of Banking knew they were there several months before the fact was published. Luzerne County court in banc to hold hearing on William Leslie's appeal grand jury investigation of the whole situation arising from the bank's closing. The appeal is now nearly two weeks old. 3-The filing of and objections to the first and exceptions partial accounting of of the bank the State Banking Department through W. Reinhard, special deputy for William Gordon, The time for filing these exceptions expires February thirty days after filing of the re- 4-Decision on the part of the Depositors Protective Committee an of time for filing exceptions the ground that has been denied copy of the report for study. The asked Dr. Gordon for special copy the report for the of permitting its purpose and accountants private and careful analysis of it but the banking secretary denied it. of an office for the treasurer of the Depositors Protective the Dime Bank receive contributions fund to finance of an exhaustive examination the report and fight the claim the State to prior right to deposited to the credit of the State Inheritance Tax Fund.


Article from Wilkes-Barre Times Leader, February 3, 1933

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DECIDED ON BANK PROBE Judge W. S. McLean Says No Decision Reached on Policy to Follow in Situation. the Luzerne county court marking further investigation Dr. D. Gordon of Harrisburg there were no new developments today pertaining to the affairs the Hosed Dime Bank Title and Trust Company. Following lengthy conference which started 30 yesterday afternoon and extended last the state secretary being closeted Judges Valentine, Cough lin and Fine and District Attorney Thommas Lewis statement issued by the officials. President Judge when asked by what had transpired at the issued brief statement follows: "The court has not determined what its policy will be on the Dime Bank decide, but there is nothing definite at this time.' Dr. Gordon declined to issue any statement before leaving the city. While here yesterday did not with any of the of the Depositors ProTomorrow the final day for filing exceptions the report filed by the state ficials the office. and Attorney Torlinski, counsel for the depositors, assisted by Attorney B. will this exceptions and objections first and partial report Reinhart, as receiv the bank Discusses Liability The State Supreme opinion William B. Lynn, which that not liability on shares by them in the closed and trust companies believed by most to be applicable to the the Dime Bank Title Commenting this decision, Attorney Torlinski From which have the charter which Dime Title Trust obtained, which seems fairly reliable; that all fours the the State Supreme Court and that therefore bility for the in the Dime Bank Attorney General William Schnader quoted yesterday the decision, that "there further appeal decision the State Banking tention closed under the Corporation Act of 1874, are doubly liable


Article from Wilkes-Barre Times Leader, February 4, 1933

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EXCEPTIONS REPORT BANK Depositors' Protective Committee Gives 32 Reasons Why Probe Should Be Started. Attorneys M. Torlinski and G B. Kleeman. representing the positor's Committee the closed Dime Bank Title and Trust Company today filed 32 specific exceptions and objections the first partial report of Receiver W. The exceptions were filed in the office Prothonotary Bonin Objection is made priority payment claim State of Revenue, for mand deposits the of StanYetter agent intax "The money depositedd by Stanley Yetter the money the State until the final by Yetter to the State the turning over the said the of of the State of Pennsyl Law Pennsylthe of deposit any pository bank. deposited in violation Statute and the State has no preferential rights or to the not being by the not preferential rights to the deposited aforesaid. The depositing of the money the Stanley M Yetter aforesaid, does not equitright its sovereign caObjections are also made to the priority three claims Frank treasurer deposits totalling for representing in account Mr. Kelly priority payment, it contended. objected to include $5,000 Federal Bank for service the collection of on the that $500 Will liams fee: Britain Sinclair for collection re-disnotes, for which the will contended, not liable and tin for which charges be stated, are and All items disbursements secretary the State Banking Department, proportionate expense the that these are and The item of G. Isaac under indebtedness of Isaacs. in the aggregate $12,800 with pledged collateral and set-off deposit fundsof Reese Isaacs and Son, against indebtedness of Isaacs cash disbursements be objected to on the ground that the is illegal Priority payment claims resenting about $1,000 trustees will be objected on the grounds the not those the Federal but that they are funds in the hands trustees, for liquidation. funds are the credit George trustee for and in bankruptcy Walter trustee