Brotherhood Railway Clerks National Bank

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Start Date: June 26, 1930
Location: Cincinnati, Ohio (39.103, -84.515)

Metadata

Model: gpt-5-mini
Short Digest: 9782aa22

Response Measures

Full suspension, Books examined

Other: Receiver (comptroller) appointed; arrests of former officials; closure placed assets in hands of receiver for liquidation.

Description

Articles (published June 26–28, 1930) report heavy withdrawals (≈$1,000,000) after disclosure of W. (A.) Shafer's alleged check-kiting/embezzlement and the removal/arrest of bank officials. Directors closed the bank, a national examiner/Comptroller named a receiver and assets were placed in liquidation — indicating a run that precipitated suspension and permanent closure (receiver appointed).

Events (3)

1. June 26, 1930 Receivership

Newspaper Excerpt: WASHINGTON ... comptroller of the currency ... appointed Ira Pole as receiver ... of the Brotherhood Railway Clerks bank which closed its doors. ... took immediate charge.
Source: newspapers

2. June 26, 1930 Run

Cause: Bank Specific Adverse Info
Cause Details: Depositors withdrew heavily after revelations of W. Shafer's alleged check-kiting/embezzlement and the removal/arrest of bank officials; speculated shortages in accounts.
Measures: Directors voted to close the bank and place assets in hands of controller/receiver; national bank examiner/Comptroller took charge.
Newspaper Excerpt: Unusual heavy withdrawals the past three days ... $1,000,000 withdrawn by depositors
Source: newspapers

3. June 26, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Board voluntarily closed the institution after heavy withdrawals triggered by alleged check-kiting and arrests of former officials tied to shortages/forged collateral related to Shafer's operations; assets placed for liquidation under federal examiner/comptroller supervision.
Newspaper Excerpt: Brotherhood Railway Clerks National Bank ... failed to open for business today. Typewritten notice posted the bank door said: 'bank has been closed by resolution of the board of directors and the assets placed in the hands ...'
Source: newspapers

Newspaper Articles (6)

1. June 26, 1930 The Vicksburg Post Vicksburg, MS

Article from The Vicksburg Post, June 26, 1930

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Article Text

BANK OF CLERKS FAILS TO OPEN Withdrawal of Millions by Depositors Said to Be Cause. OFFICIAL PERSONNEL CHANGED RECENTLY Affairs of Brotherhood of Railway Clerks' Bank in Receiver's Hands. June Brotherhood Railway Clerks National Bank failed to open for business First information that the bank would not open came from tice posted institution's door saying the bank closed. The notice was signed a National Bank examiner Federal Bank recently completed an audit the Brotherhood bank and last Monday two changes were ficial personnel the bank shortafter directors the institusound condition. Michael G Heintz named vice president succeeding Lyman Norris. resigned, and William Luebbe, appointed assistant cashier in place Harry Rosenblum who also Closing of the Brotherhood bank another the Cosmopolitan Bank and Trust close of forced speculations of Shafer, former district manager the H. Doherty company of bank recently had increased its interest paid deposits rate from four to five percent. the bank were said Deposits after the to total officials made on change in board directors Monday withdrew over depositors heavy withdrawal The unusually given by the was reason bank. They rectors closing to shut down the said they voted the assets in the bank and place the controller of curhands rency for Attorney Haveth District Mau said that Taylor Naanother Cleveland Fulton. had been in tional examiner conference bank's affairs for Castillini president. statement issued March 27 bank's capital stock at and un$400,000, surplus $65,958. Deposits divided profits were $4,740,281. on that date had been made sum of $400,000 liability The against contingent amounted to loans and discounts $3,143,563. were bonds the assets Among estimated worth securities resources were $1,803,743. given as $5,659,363 the stock was The value listed at $141.48 share. WASHINGTON June Pole, comptroller the currency national appointed Ira as receiver bank Railway Brotherhood which closed its doors Clerks bank in Cincinnati. take immediate Fulton will charge.

2. June 26, 1930 The Urbana Daily Citizen Urbana, OH

Article from The Urbana Daily Citizen, June 26, 1930

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Article Text

CINCINNATI FAILS TO Heavy Run on Deposits Given Today as Cause; Is Second to Close. United Press CINCINNATI, June Brotherhood Railway Clerks National Bank here failed to open its doors today. typewritten notice posted the bank door said: bank has been closed by resolution of the board directors and the assets placed in the hands the of cur the United States for liquidation. National Bank Examiner Fulton is charge." Though capitalized at only 000, the bank, according to financial issued June 14, had assets of $5,849,010 with deposits The bank was the second to close here in recent On June the Cosmopolitan Bank and Trust company, private institution, closed its doors after the arrest of Shafer, district sales manager of Henry Doherty Company, on charges of embezzlement. Shafer's alleged speculations taled more than the bank said be involved either directly indirectly to the extent of In statement issued following the closing of the bank, Haveth Mau, district said: investigation of the bank's affairs thus far indicates the bank should pay out satisfactorily. "Unusual heavy withdrawals the past three days than one million dollars cessitated closing of the institu-

3. June 27, 1930 The Times Leader Wilkes-Barre, PA

Article from The Times Leader, June 27, 1930

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Article Text

Labor Bank Shuts Doors Former Officials of Brotherhood Institution Placed Under Arrest Cincinnati, Q., June 26 Brotherhood Railway Clerks National Bank, one of the country's largest labor banks, failed to open for business today. Haveth United States district attorney, said the bank's closing direct result of the $1,000,000 check kiting operations of W. Shafer, under Indictment for having $210,162 of his firm's money charged with having caused the closing the Cosmopolitan Bank Trust Co. sixteen ago by his alleged Fifty-one per cent. the Brotherhood stock 122,000 United States Canadian memthe Brotherhood Railway and Steamship Clerks, freight employees. The Brotherhood Bank board voluntarily inafter days. The run three high bank last Monday Former Officials Arrested Two those former Liman Norris, Harry Rosenblum, cashier, rested sworn by United attorney Haveth Mau. which charged conspiracy under bond Federal county officials belief ably would fully meet every and that turned over liquidation comptroller the currency of the slight existed the bank That the doors Shafer, the Doherty City Service in his count with the bank.

4. June 27, 1930 Dayton Daily News Dayton, OH

Article from Dayton Daily News, June 27, 1930

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TWO CINCINNATI BANK OFFICIALS FACING CHARGES Former Cashier President Arrested Following Closing. SHAFER SHORTAGE INVOLVED IN CASE Accused Employes and President Were Removed Last Monday. second Cincinnati bank was closed and two of its former officers were under arrest today as result of the leged million dollar check writing operations of A. W. Shafer, discharged district manager for the Henry L. Doherty Co. The failure of the Brotherhood Railway Clerks National bank was by the arrests Lyman Norris, former president, and Harry Rosenblum, former cashier, charges conspiracy to violate the national banking act. They held today in default $25,bond each after they entered pleas guilty. Norris, Rosenblum and Joseph Castellini, president, were removed the directors Monday. United States District Attorney Haveth Mau said Shafer's were the direct of the bank's closing Shafer, Mau said, deposited Cities Service collateral bearing forged this stock, reported tween $225,000 and $375,000, that Norris and Rosenblum The Brotherhood bank came under the scrutiny of federal vestigators June 10 when was learned the bank carried count for Shafer. that Cosmopolitan Bank and Trust closed because an alleged shortage $623,000 in Shafer's account and Shafer was arrested charge more than $210,000 from the Doherty his The the three ficials of the bank also resulted of $1,000,000 by positors statement was issued saying the institution was good Directors closing the bank was the best way to protect depositors and vestigators said every obligation probably would met. The Provident Savings Bank and Trust Co. also experienced heavy yesterday, but kept open overtime satisfy State Director of Edward Schorr no other banks were involved by Shafer and the Cincinnati House ciation promised support all the rest the country's banks. Brotherhood bank established 1923 by the Brotherhood of Railway and Steamship clerks and 51 per cent of the was owned by members the union. was capitalized and had deposits of $00,000 and total resources of 659,363. WIFE IS EXONERATED Ala., June Mrs. Gertrude Puckett, who shot Francis Hines to death when she found Hines the comof her husband, has been pany exonerated.

5. June 28, 1930 Danville Register and Bee Danville, VA

Article from Danville Register and Bee, June 28, 1930

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Article Text

THE REGISTER, DANVILLE, VA., SATURDAY, JUNE 1930. PROBE WORKINGS BANK FAILS OF HUMAN BODY OPEN ITS DOORS American Medical Association 81st Convention Comes to End DETROIT, June days of intensive investigation of the workings of the human body and new developments in the healing art came to an end tonight for the thousands of doctors who have attended the 81st convention of the American Medical association. There were no general sessions today, the only meetings being held by the 18 sections of the scientific assembly. Drs. Gerald Shibley and A. Dochez of New York, presented the results of two years of research of the cold. Their work, they said, had been directed to determinIng the possible relationship between colds and some infinitesimally small microbe. They reported that they had experimented on human's and apes with the result that they able to produce typical colds in 40 per cent of both groups by with certain nasal discharges occurring in colds. Dr. Clara M. Davis, of Chicago, ported on the results of her experiments in allowing bables to select their own diet. According to Dr Davis the tastes of small children are not unlike those of adults. Among the unpopular foods she classed spin ach, lettuce. turnips and barley while the infants turned to diet of meats, potatoes. eggs, oranges, bananas, peas and beets Allowed to select their own diet, the children were exceptionally free from digestive disturbances, she said POSTPONE FLIGHT LAKEHURST N. June training flight of the navy dirigible Los Angeles scheduled for night was postponed because of high winds The dirigible last night flew 150 miles out to to avoid thunder storms which swept down the coast. She was in wireless communication with her base. Check Kiting Operations Of Shaffer Bring Disaster to Second Bank CINCINNATI, O., June second Cincinnati bank was closed and two of its former officers were under arrest today as result of the alleged million dollar check kiting operations Shafer, charged district for manager the Henry Doherty company. The failure the Brotherhood Railway Clerks National Bank open yesterday was followed by the arrests of Lyman Norris. former vice-president, and Harry Rosenblum, former cashier, on charges of conspiracy violate the national banking They today in fault of set after they entered pleas not guilty Norris, Rosenblum and Joseph Castellini, were removed by the directors Monday. United States District Attorney Haventh Mau said Shafer's alleged manipulations were the direct cause of the bank's closing Shafer. Mau said. had deposited service collateral hearing forged It was this stock, reported amount to between $225,000 and $375,000. that involved Norris and The Brotherhood bank came under the scrutiny of federal investigators June 10 when it was learned the bank carried account for Shafer On that day the Cosmopolitan Bank and Trust company closed of an alleged shortage of in Shafer's and Shafer was arrested on charge of embezzling more than $210,000 from the Doherty company. his former employers. The removal of the three officials bank resulted in withdrawal of $1,000,000 by depositors although statement was issued saying the institution was good condition Directors said closing the bank was the best to way tect depositors and investigators said every obligation probably would be The Provident Savings Bank and Trust company heavy run but kept open over time to satisfy depositors. State Director of Edward D. Schorr announced other banks

6. June 28, 1930 The Gaffney Ledger Gaffney, SC

Article from The Gaffney Ledger, June 28, 1930

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Article Text

LARGEST BANK IS FORCED TO CLOSE Million Dollar Check Kiting Operations Blamed for Failure. Cincinnati, O., June Brotherhood Railway Clerks National Bank, one of the country's largest labor banks, failed open for business today Haveth Mau, United States district attorney, said the bank's closing direct result of the check kiting operations of Shafer, under indictment for having embezzled his firm's money charged with having caused the closing of the Cosmopolitan Bank and Trust Compayn 10 days by his ago alleged per cent of the owned United States and adian of the Brotherhood Railway and Steamship clerks. Freight Handlers and Station Employees. Brotherhood bank board directors voluntarily closed the institution after depositors withdrew in the last three days. The run followed the resignation three high bank officials Monday. Two those former officials, Liman Norris, vice-president, and Harry Rosenblum, cashier, on warrants sworn United States District AttorHaveth Mau, which charged to violate the National Banking Act. They pleaded not guilty held under bond each Federal and county officials belief that bank pressed would probably met fully every obligation that assets turned over for liquidation the comptroller curthe United States. existed the slight run bank since June directors That was the date the said. locked doors disclosure that Shafer, forupon the Doherty city service securities Company, short in dealers, the bank. The Brotherhood bank had of total posits sources capital stock surplus and undivided profits $65,958. Lespite forged Shafer's collateral signatures Brotherhood bank, the the was by directors condition report isued Monday The bank in 1923. opened