17535. First National Bank (Leetonia, OH)

View Charter #3519 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3519
Charter Number
3519
Start Date
November 1, 1907*
Location
Leetonia, Ohio (40.877, -80.755)

Metadata

Model
gpt-5-mini
Short Digest
91ad8177

Response Measures

None

Receivership Details

Depositor recovery rate
82.5%
Date receivership started
1907-11-04
Date receivership terminated
1911-09-29
OCC cause of failure
Fraud
Share of assets assessed as good
32.4%
Share of assets assessed as doubtful
40.4%
Share of assets assessed as worthless
27.2%

Description

The bank 'failed to open' on Nov. 4–5, 1907 and a notice said it would liquidate. Subsequent reporting documents a receiver (Frank Michinard) and federal indictments/arrests for misapplication of funds and false reports, and payments to depositors by the receiver. No article describes a depositor run prior to suspension; the cause is bank-specific misconduct/adverse information.

Events (5)
1. June 10, 1886 Chartered
Source
historical_nic
2. November 1, 1907* Receivership
Newspaper Excerpt
National Bank Examiner Thomas and Receiver Michinard of the First National bank of Leetonia...were in consultation ... Examiner Thomas has been engaged with the receiver examining the affairs of the bank for several days and went direct to Cleveland from Leetonia.
Source
newspapers
3. November 4, 1907 Receivership
Source
historical_nic
4. November 4, 1907 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed and announced liquidation; later investigations and indictments allege misapplication of funds, false condition reports, and heavy insider loans by Schmick family.
Newspaper Excerpt
Leetonia, Ohio, November 4.-The First National Bank here failed to open Its doors today. A notice posted on the door states that the concern will liquidate its liabilities.
Source
newspapers
5. January 1, 1908 Other
Newspaper Excerpt
As a result of two affidavits filed in Federal Court by Thomas C. Thomas, National Bank Examiner, charging misapplication of funds of the First National Bank of Leetonia, Ohio, C. H. Schmick...and his son...were arrested and released on bail late last night.
Source
newspapers

Newspaper Articles (13)
1. November 4, 1907 Evening Star Washington, DC
Article from Evening Star, November 4, 1907

Click image to open full size in new tab

Article Text

AGAINST AN EXTRA SESSION. Thinks House and Senate Committees Could Act. CHICAGO. November 4.-"Let the bankIng and currency committee of the House of Representatives and the corresponding committee of the United States Senate gather at once. listen to the advice of bankers and laymen from all parts of the country and draft a bill that will provide the nation with an elastic currency," said James B. Forgan, president of the First National Bank. yesterday. Mr. Forgan said he did not think much of the plan to call an extraordinary sessign of Congress. as that body is to meet in regular session four weeks from today. "It strikes me that if those two committees get together in Washington at once and consider ways and meáns of relieving the money stringency." continued Mr. Forgan, "It will be just as good as having Congress meet in special session. A special session would hardly get under way before the date for the regular session would be reached. If the two banking committe meet in joint session, listen to advice and suggestions. and prepare a sane and sensible measure for Congress to act on four weeks hence. it would appear that a big step in the right direction had been taken.' Mr. Forgan said that the week in finance now opening bids fair to be a quiet and a atisfactory one. Trades Unions and Banks. CHICAGO. November 4.-By almost unanimous vote the Chicago Federation of Labor yesterday voted its confidence and that of the trades unions It represents in the stability of Chicago banks and their capacity to cope with the present financial difficulty. By the same vote the federation refused to become a party to efforts to embarrass the banks. Only two votes were cast in opposition. The expression of confidence was called forth by the offering of a resolution asking that the federation call the attention of the federal authorities to banks that hold "checking accounts with various unions and declined to cash checks on the accounts. This was made still stronger by the offering of an amendment asking the federation to start insolvency proceedings against such banks and demand that they be placed in receivers' hands. Western Banks Close. LEETONIA, Ohio, November 4.-The First National Bank here failed to open Its doors today. A notice posted on the door states that the concern will liquidate its liabilities. C. N. Schmick of Cleveland is president of the bank. AURORA, Ind., November 4.-Owing to the money stringency the Aurora National Bank failed to open today. The bank was organized in 1883 with a capital of $40,000. and its deposits aggregated $165,000. No statement of the liabilities has been made.

2. November 5, 1907 New-York Tribune New York, NY
Article from New-York Tribune, November 5, 1907

Click image to open full size in new tab

Article Text

FIVE BANKS CLOSED. Failure of Trust Company Forces Three Kansas Suspensions. Topeka, Kan., Nov. 4.-J. W. Royce, Bank Commissioner, announced to-day that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust Company, of Kansas City, Mo., on October 28. The banks are the Coyville State Bank, Coyville; the Garland State Bank, Garland, and the Citizens' State Bank of Mulberry, all small institutions. They had deposits with the Bankers' Trust Company. Receivers will be appointed at once. The Coyville State Bank had deposits of $10,000. the Garland State Bank, $50,000. and the Citizens State Bank of Mulberry, $85,000. The National Bank of Commerce of St. Louis was the foreign correspondent of the Mulberry bank and the Mercantile Trust Company of New York was the correspondent of the Garland institution. The banks have been organized only a few years. Leetonía, Ohio, Nov. 4.-The First National Bank here failed to open to-day. A notice posted on the door states that the concern will liquidate its liabilities. C. N. Schmick, of Cleveland, is president of the bank, which has been in business twenty-two years. It was organized with a paid up capital of $100,000. Aurora, Ind., Nov. 4.-Owing to the money stringency the Aurora National Bank failed to open to-day. The bank was organized in 1883 with a capital of $50,000 and its deposits aggregated $165,000. No statement of the liabilities has been made.

3. November 12, 1907 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, November 12, 1907

Click image to open full size in new tab

Article Text

RUSH $32,250,000 IN GOLD FROM EUROPE NEW YORK BANKERS TAKE ALL THE YELLOW METAL ON LONDON MARKET. HEROIC EFFORTS TO RELIEVE STRINGENCY Runs on Banks Seem to Be FewerGotham Trust Concerns Still Open - Financial Institutions Adopt Plans to Prevent Drain of Cash. New York, Nov. 5.-Advices from London say that America has purchased the whole of the gold in the open market, about £ 400,000 ($2,000,000), and later took £ 453,000 ($2,265,000) in bar gold and £ 30,000 ($150,000) in American eagles from the Bank of England. The price paid for the gold purchased in open market was 78s 1/3 d, plus the commission. Engagements of foreign gold for the United States have now reached $32,250,000. The Seaboard National bank announced that it had procured $350,000 of the metal. Heidelbach, Ickelheimer & Co. also announced the engagement of $1,000,000 in gold, and Lazard Freres engaged an additional $1,250,000 for import. Trust Companies Open. The Trust Company of America and the Lincoln Trust company opened for business as usual at 10 o'clock. This followed conferences Saturday and Sunday at the home of J. Pierpont Morgan concerning the general financial condition and the desirability of relieving the heavy strain caused by runs on these two trust companies during the past ten days. When the Trust Company of America opened Monday thirty-five people were in line, a considerable diminution from the number on hand during the earlier days of the run. Will Be No Extra Session. Advices from Washington say there will be no extra session of congress to meet any emergency of present existence, and it is not deemed within the bounds of present probability that any emergency will arise between now and the time for the convening of congress in regular session Dec. 2 to call for an executive proclamation. There is to be formal co-operation between the public officials and the leading bankers at once looking to conservative action by the administration and by congress in December. No Money to Move Grain. Grand Forks, Minn., Nov 5.-Senator Hansbrough sent the following telegram to President Roosevelt Monday: "Fully 150,000,000 bushels of grain are now ready to be marketed in the two Dakotas and Minnesota, and there is no money with which to do it. The necessities of the Northwest are, therefore, much greater than in any other section of the country, demanding the fullest consideration at the hands of the treasury department. "Ten million dollars placed in the Twin City banks would raise the embargo and start grain shipments to Europe. This would relieve the financial stress in the East much quicker than a deposit of treasury funds in New York. "Treasury relief operations should have been begun here, where the congestion is greatest. Our people are not losing their heads. They have no fear of a panic, but in this crop moving season our business men should have special consideration." Ohio Bank Closed. Leetonia, O., Nov. 5.-The First National bank here failed to open its doors Monday. A notice posted on the door states that the concern will liquidate its liabilities. C. N. Schmick of Cleveland, O., is president of the bank. Indiana Bank Closes. Aurora, Ind., Nov. 5.-Owing to the money stringency the Aurora National bank failed to open its doors Monday The bank was organized in 1883 with a capital stock of $50,000, and its deposits aggregated $165,000. No statement has been made of the liabilities. Bank Cashier Commits Suicide. Huntsville, Ala., Nov. 5.-James R. Boyd, cashier of the Huntsville Bank and Trust company, committed suicide. Banks in Texas Fix a Limit. Dallas, Texas, Nov. 5,-The Dallas banks adopted a resolution which said that continuing until further notice the members would limit payments to any one depositor to 5 per cent. of his balance, but not to exceed $50 a day, and require sixty days' notice of withdrawals of savings deposits. Small Checks in Frisco, San Francisco, Cal., Nov. 5.-Forty clerks were at work all day in the clearing house preparing certificates in denominations of $5, $10 and $20, which, indorsed by all the banks in the association, will be issued at once

4. November 14, 1907 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, November 14, 1907

Click image to open full size in new tab

Article Text

Receiver Appointed. Youngstown, O., Nov. 14.-C. Edwin Oyster was on Wednesday appointed receiver of the Templin Co., florists and seedsmen, operating large nurseries at Calla, this county, and a store here. The assets are about $90,000, with liabilities about the same, not including the capital stock. The First National Bank of . Leetonia, which closed its doors several days ago, is the heaviest creditor. The business will be continued.

5. November 29, 1907 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, November 29, 1907

Click image to open full size in new tab

Article Text

SCHMICK'S BANK MAY BE ENTANGLED IN THE LEGAL MESH Government Authorities Are Investigating But Nothing for Publicity Given Out. National Bank Examiner Thomas and Receiver Michinard of the First National bank of Leetonia, Columbiana county, were in consultation Wednesday with District Attorney Sullivan and Assistant District Attorney Gary at Cleveland. It is understood that complaint has been made to government authorities since the bank was closed for liquidation four weeks tgo. Whether this led up to the meeting here yesterday Sulilvan refused to say. "The matter is one that I cannot discuss," said the district attorney. "It is of an official nature and at this time I can say nothing at all concerning it." It was learned yesterday, however. that Examiner Thomas has been engaged with the receiver examining the affairs of the bank for several days and went direct to Cleveland from Leetonia. C. N. Schmick, president of the bank, was formerly a resident of Leetonia but now resides in Cleveland. He was for years a leading Democratic politician in this district and was president of the Cherry Valley Iron company of Leetonia. He is reputed to be wealthy. When the 16 to 1 silver agitation came up he joined the sound money element. When asked about the situation at Leetonia he refused to make any statement except that he thought the bank would pay out. Fred L. Taft, Schmick's attorney, says he was informed of a complaint made relative to a draft sent to the bank for collection and claimed to not have been remitted before the closing. He thought any inquiry by the government was confined to the instance. The bank recently had its charter renewed with a capital stock of $100. 000 and $150,000 deposits. Harry Schmick, son of C. N. Schmick, was cashier.

6. January 1, 1908 Evening Journal Wilmington, DE
Article from Evening Journal, January 1, 1908

Click image to open full size in new tab

Article Text

FATHER AND SON, BANKERS, ARRESTED By THE JOURNAL'S Special Wire. CLEVELAND, Ohie, Jan. 1.-As a result of two affidavits filed in Federal Court by Thomas C. Thomas, National Bank Examiner, charging misapplication of funds of the First National Bank of Leetonia, Ohio, C. H. Schmick, 66, president of the bank and his son, W. Harry Schmick, 37, former cashier were arrested and released on bail late last night. W. Harry Schmick is charged with falsely reporting the condition of the bank. The bank was capitalized at $100,000. According to the books the Schmick family owned $88,650 of the stock. When the bank suspended November 2, the total assets, including cash, mortgages, paper, loans and other securities amounted to $275,000 and the liabilities were reported at $200,000. Bank examiner Thomas charges that members of the Schmick family were heavy borrowers at the bank, their total indebtedness to the institution when it closed being $66,000. The bank was closed on the shewing made after a preliminary investigation by Assistant District Attorney Gary. The Schmicks say the charges are technical and that the bank will pay dollar for dellar.

7. January 1, 1908 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, January 1, 1908

Click image to open full size in new tab

Article Text

Bank Officers Balled. Cleveland, O., Jan. 1.-As a result of two affidavits filed in federal court by Thomas C. Thomas, National Bank Examiner, charging misspplication of funds of the First National Bank of Leetonia, O., C. N. Schmick, president of the bank, and his son, W. Harry Schmick, aged 36, former cashier, were arrested and released on bail late last night. W. Harry Schmick is charged with falsely reporting over drafts to the Comptrolier of the Currency and with misspplication of funds. C. N. Schmick is charged with aiding his son in the alleged misapplications. The bank was capitalized at $100,000. According to the books the Schmick family owned $88,650 of the stock. When the bank suspended November 2, the total as. sets, including cash, mortgages, paper, loans and other securities amounted to $275,000 and the liabilities were reported at $200,000. Bank Examiner Thomas charged that members of the Schmick family were heavy borrowers at the bank, their total indebtedness to the institution when it closed being $66,000. The bank was closed on the showing made after & preliminary investigation by Assistant District Attorney Garry, The Schmicks say the charges are technical and that the bank will pay dollar for dollar.

8. January 3, 1908 The Marion Daily Mirror Marion, OH
Article from The Marion Daily Mirror, January 3, 1908

Click image to open full size in new tab

Article Text

A Bankruptcy Petition. Cleveland, Jan. 3.-Involuntary bankruptcy proceedings were begun against Harry Schmick, cashier of the First National Bank of Leetonia, in United States district court Thursday. The petition was filed by Frank Michinard, the bank's receiver, following the arrest of Schmick and his father, Wednesday, on charges of misapplying funds and making false reports as to the bank's condition. The liabilities charged in the bankruptcy schedule amount to $32,711.

9. January 7, 1908 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, January 7, 1908

Click image to open full size in new tab

Article Text

Lose By The Recent Schmick Failure According to the Statement of Chas. E. Schmick Son of Chas. N. Schmick-Statements Refuted. Cleveland, Jan. 5.-"Not a depositor will lose a cent of money, not even if I have to forfeit every bit of property I have," says Charles E. Schmick, son of C. N. Schmick, and brother of W. Harry Schmick, held by the government in connection with the failure of the First National bank of Leetonia. "But the assets if properly handled, will be sufficient to cover all of the indebtedness," continued Schmick yesterday. "The family owned capital stock of the bank amounting to $88,600. It is worth $130,000. Even if double liability should be necessary, the $260,000 will be willingly furnished to protect the depositors and pay every claim. "I am especially sorry if the impression has gone out that people's money has been used on lavish apartment houses in Cleveland. On the Rayol apartment, owned by my father, brother and myself and worth $85,000 there is a loan to the Leetonia bank of $4000; on the Aragon, owned by my father and myself and worth $65,000, there is a loan of $3300; on the Colonial, in which my father had one-fifth equity and which is worth $200,000, there is a loan of $2500; I own the Tilden, worth $50,000, at least, and I owe the Leetonia bank $9000. Thus you see the total amount of the apartment house loans is $15,800 in a valuation of $400,000. "My brother loaned over $50,000 to the Templin Co., a nurseries concern at Calla, O. If the money panic had not come on everything would have come out all right. But the Wall street flurry came just at a time that was hard for the bank to pull out of. A city bank would have secured help through its clearing house. "I was only a stockholder in the bank. I never was an officer or director in the institution. If I had been I would not have loaned a cent unless I knew just where it was going and all about the security. "It grieves me to see my father arrested, a man who never took a cent from anyone. The charge against him is purely technical. He signed reports brought to him just as any person would de. Maybe my brother did loan too much to one concern but all would have come out well if the hard times had not come." "The bank was the creation of my grandfather. It came up through the family to the third generation and now that there should be any trouble is hard to bear. The losing of $260,000 would cause sorrow, if it had to be lost, to most families, but I consider that as nothing compared with the tinge of anything like the word criminal. "I want to say, however, that I have more faith in manhood than ever before this thing came up. People thought were my enemies have come up to me and spoken in my time of of sorrow. I want to thank them for that. I expect to spend my life in Cleveland and have my future before me. So does my family, and you can surely see our disposition to do the right thing."

10. January 8, 1908 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, January 8, 1908

Click image to open full size in new tab

Article Text

THEWEEK'S NEWS '18 10 0 'mens-nj Cheered as "the next President of United States." a topic which he care fully avoided in his own remarks, how ever. Secretary of War Taft delivered glowing defense of the Roosevelt ministration at Boston, placing the blame for the recent financial panic on those corporations which he charged with systematic violation of law. Governor Sparks has called an extra session of the Nevada legislature convene on Jan. 14 to consider the labor troubles at Goldfield. Twenty-three hundred barrels of beer. valued at $17,500 and belonging to the state brewery, were emptied into the sewers by Internal Revenue Collec tor Howard at Oklahoma, Okla. After listening to the charges of leged misdeeds by certain former cers of the Passaic Steel company of Paterson. N. J., Judge Lanning appointed three receivers for the corporation. Bishop Waters of Jersey City clared before a large audience of Boston negroes that it was the duty of the black men to do all in their power defeat Taft if he was nominated president. Grief-stricken because he has accidentally shot and killed David Scarbo. 10 years old. by accident. Henry Foy, farmhand. attempted suicide at North Adams. Mass., by cutting his throat. The boy's father seized the knife and overpowered Foy. Enraged because his affections not returned. Charles Bennett. a young silk worker. married, shot and killed Jennie Mazzolli and then committed suicide by shooting at Paterson. N.J. 1 'u r At least nine miners were killed and three fatally and two seriously injured in an explosion of gas and coal dust in the Bernal.coal mine at Carthage. N. M. Mrs. Leslie Carter-Payne, the actress, against whom an involuntary petition in bankruptcy was filed. has filed a schedule, giving her total liabilities as SIFTGIS The New York public service commission has approved preliminary plans for a new subway extending from the Battery to the Bronx. The esti000'000'09$ S| $800 persu C. N. Schmick. president, and his son. W. H. Schmick, cashier of the defunct First National bank of Leetonia, O., were arrested on the charge of wrecking the Leetonia bank. There are fifty counties in Alabama which have closed saloons permanently. This leaves seventeen counties in which liquor can be sold for another year. William B. B. Ridgely, comptroller of the currency, says that he is confident that the new year will bring a general revival in business. The banks of the country. he believes, will soon find it advisable to return to normal cash payments. The trial of the 169 members of the first duma who signed the Viborg manifesto resulted in 167 of them being convicted and sentenced to three months'

11. March 24, 1908 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, March 24, 1908

Click image to open full size in new tab

Article Text

SCHMICK RESIGNS AS TRUSTEE OF BONDS Salem, O., March 22.-W. Harry Schmick has resigned as trustee of the Templin company in Calla. A petition was filed in common pleas court at Youngstown Friday asking that his action be advertised and time and place set for the election of his successor. December 15 last the Templin company delivered to W. Harry Schmick as trustee ,a mortgage to secure payment of 40 bonds of that date, each in the sum of $1000. The First National bank of Leetonia became owner of 36 of these bonds. The receiver of the Leetonia bank, Frank Minchinara, now, in accordance with the terms of the mortgage, files a petition for election of Schmick's successor as trustee of the bonds. Billingsley & Clark of Lisbon, represent the petitioner. The taking of the bonds in question was alleged, two weeks after the purchase, to be the cause of the closing of the bank. Harry Schmick, trustee of the bonds, was also cashier of the bank, and is now under indictment under charges connected with the bank's failure.

12. November 12, 1908 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, November 12, 1908

Click image to open full size in new tab

Article Text

YOUNG SCHMICK Enters Plea of Guilty and Draws Five Years-Lived Beyond His Means. Hobby Was Flowers. Cleveland, Nov. 9.-W. Harry Schmick, cashier of the First National Bank of Leetonia, O., which failed, pleaded guilty in federal court Monday to the first 66 counts in an indictment charging him with falsifying the bank's accounts and misappropriating funds. His action freed his aged father, C. N. Schmick, president of the bank, indicted upon similar charges. The father was not in court. Young Schmick's wife was with him. "I take all the blame," said the son, "and I accept the whole punishment." Judge R. W. Tayler sentenced him to five years in the federal prison at Leavenworth, Kas. He will be taken away at once. The court nolled all the remaining counts against the son and the charges against the father, upon the recommendation of District Attorney Day. "The son had complete charge of the affairs of the bank," Day said. "The father had no part in its mismanagement." Receiver Frank Michinard said Monday the bank has paid the depositors 25 per cent, and he is now preparing to make a second payment of equal amount. Living beyond his means worked young Schmick's ruin, according to Michinard. "Schmick's hobby was flowers," said Michinard. "He bought American Beauty roses four and five dozens at a time."

13. March 8, 1911 The Washington Herald Washington, DC
Article from The Washington Herald, March 8, 1911

Click image to open full size in new tab

Article Text

Equity Suits. No. 30010. George E. Hamilton, trustee. et al. VS. Allen E. Walker. administrator, et al.; bill of interpleader. Attorney, J. J. Hamilton. No. 30011. In re George C. Rankin. receiver of Farmers and Traders' National Bank of La Grande, Oreg.; sell assets. Attorney, F. W. Weitzel. No. 30012. In re George C. Rankin, receiver of First National Bank of Leetonia, Ohio; same. Attorney, same. No. 30013. Washington Educational Society VS. Margaret C. Sands et al.; release deed of trust. Attorney. D. O'C. Callaghan. No. 30014. William Berens, jr., VS. Madge C. Berens et al.; divorce. Attorney. C. Brown. No. 30015. Rudolph B. Behrend, trustee, vs. Emma Hunter; set aside deed. Attorney, L. H. David.