Article Text
OHIO BANK IS CLOSED National Examiner Orders Suspension at New Richmond, New Richmond, O., Nov. 21.-The First National bank of this place has been closed by National Bank Examiner Robert C. McConaughy.
17637. First National Bank (New Richmond, OH)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 1068
- Charter Number
- 1068
- Start Date
- November 20, 1915
- Location
- New Richmond, Ohio (38.949, -84.280)
Metadata
- Model
- gpt-5-mini
- Short Digest
ad119b3c
Response Measures
None
Receivership Details
- Depositor recovery rate
- 64.5%
- Date receivership started
- 1915-11-30
- Date receivership terminated
- 1918-10-31
- OCC cause of failure
- Fraud
- Share of assets assessed as good
- 24.8%
- Share of assets assessed as doubtful
- 61.3%
- Share of assets assessed as worthless
- 14.0%
Description
Contemporary articles report the First National Bank of New Richmond closed/suspended Nov 20–21, 1915 and a receiver was appointed Nov 30, 1915. Comptroller cites bad banking—large loans to president and cashier exceeding deposits. No newspaper describes a depositor run; the failure proceeded to receivership and eventual dividend payments.
Events (4)
1.
April 27, 1865
Chartered
- Source
- historical_nic
2.
November 20, 1915
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Comptroller: bank was lending to its president and cashier and enterprises controlled by them an amount exceeding its total deposits; bad banking practices led to suspension.
- Newspaper Excerpt
- Failure of the First National Bank of New Richmond, O., which closed its doors November 20, was declared...
- Source
- newspapers
3.
November 30, 1915
Receivership
- Source
- historical_nic
4.
November 30, 1915
Receivership
- Newspaper Excerpt
- The bank closed doors a November 20, last, and November 30 Judge Frank Davis was appointed receiver.
- Source
- newspapers
Newspaper Articles (8)
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Article Text
CRITICISES BANK OFFICERS. Controller Williams Says New Richmond Men Erred. Failure of the First National Bank of New Richmond, Ohio, which closed its doors November 20, was declared yesterday to be due to bad banking in a statement issued by John Skelton Williams, controller of the currency. "At the time of its suspension," said Mr. Williams' statement, "the bank was lending to its president and cashier and to enterprises directly or indirectly controlled by them an amount exceeding its total deposits. This emphasizes the importance of securing legislation which will prevent bank officers from lending to themselves or for their personal benefit the funds of depositors committed to their care."
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BANK FAILURE At New Richmond, 0., is Declared by Comptroller as Due to Bad Banking. (BY ASSOCIATED PRESS. WASHINGTON, Nov. 27.-Failure of the First National Bank of New Richmond, O., which closed its doors November 20, was declared today to be due to bad banking in a statement issued by John Skelton Williams, comptroller of the currency. "At the time of its suspension," said Mr. Williams's statement. "the bank was lending to its president and cashier and to enterprises directly or indirectly controlled by the amount exceeding its total deposits. This emphasizes the importance of securing legislation which will prevent bank officers from lending to themselves or for their personal benefit the funds of depositors committed to their care."
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PUZZLE TO EXPERTS Tangle In the First National Bank of New Richmond Worst Ever Encountered. Startling disclosures in the affairs of the defunct First National Bank in of Richmond, O., are expected its New short time. The bank closed doors a November 20, last, and November 30 Judge Frank Davis was appointed receiver. In spite of the most diligent efof the receiver and government is forts it has been impossible, it said, experts to determine the exact condition o: the accounts. Those who have been engaged the in examination say that it is the worst tangle they ever encountered. loose was the system of bookkeepSo say the examiners, that they can the ing, tell in many instances whether not creditors are debtors or the contrary facts ascertained have been turn- the All over to the Comptroller of Treasuery ed and United States District Attorney Bolin. It is reported the deficit is many thousand dollars and that the stock- make holders will be called upon to good twice the amount of their stock it This will not meet the deficiency, will conceded by Judge Davis, who be it retire as receiver next Friday, to succeeded by P. E. Wagner, Pittsburg tired Judge Davis says he has grown his of the job and desires to devote time to other work. "I can not give out any details about the bank," said Judge Davis, as "but the concern is in just about bad a condition as it could be. Unable we tell anything from the books have to had to start an entirely new sysof bookkeeping, hoping to get exsome tem order out of the chaos that ists." The failure has been more disasto this thriving place than a trous flood. Scores of well to do people the lost their all, it is said, as bank, have which was established in 1865, subregarded as one of the most stantial was financial institutions in Clermont county. Among the stockholders the heaviest a loser is probably H. G. Donaldson, farmer near New Richmond, who was director in the bank and held fiftya shares of stock. Mrs. Allie Rose Daniels, two Miss Emma Moran and Mrs. Hawkins are among the women stock- be holders who, it is reported, will hard hit by the failure. Inspector Bennett of the Department of Justice, who was at work for sev- a eral weeks on the books, has made report to the government authorities of and it is rumored that a number be criminal prosecutions shortly will of instituted. The active operations S. bank were conducted by L. the Fridman, president; George W. McMurchy, cashier, and Jesse Fee, assistant cashier. Intimation that the government will drastic action against certain the officials take has revived interest in failure which caused tremendous Re- excitement in this county. While the ceiver Davis declined to verify the statement, it is said several of officers invested heavily in a lands brick factory at Logan, O., in Texas and in other enterprises which proved unprofitable. One of the peculiar incidents connected with the collapse of the bank is that is attracting much attention enthe experience of A. C. Reinhardt, gaged in the transfer business. Since failure Reinhardt has been notithe fied several times that he had overdrawn his account $11,000. He strenuously denies that he owed any such amount, and avers that his books show He that the bank is in his debt $440. says that the receiver has offered to compromise for $1,000. It is also asserted by Reinhardt that for more than to two years he tried unsuccessfully alhave his bank book balanced, but ways was put off with various exe cuses. At least a dozen other depositors declare they received the same treatment, among them Archie House, cone fectioner, who was charged with an overdraft of $1,600, which has been compromised for $300. It is said the examiners have been unable to tell the who does and who does not owe bank, because of the system of keeping accounts. The depositors will lose from $60,000 $100,000, it is reported, and no estimate to is given from any source as be to the probable amount that may saved from the wreck. One firm of contractors had $23,000 le on deposit at the time the bank closed its doors, it is reported, E The further the investigaton progresses the worse the state of affairs uncovered, the investigators say.
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CRASH OF FORTUNES Imminent As the Result of Assess. ment of Bank Stock of Defunct New Richmond Bank, It is Said. Stockholders of the First National Bank of New Richmond, O., which is now in the hands of a receiver, received another blow Thursday in a notice from the Controller of the Currency of the Treasury Department at Washington, that each in addition to losing his stock, must pay an assessment of $100 a share. Compliance with the order, it is said, will mean the crash of many fortunes, which hitherto had weathered the failure. Semi-official reports indicate that the deficit will exceed $100,000, and that the capital stock of $80,000 and the surplus of $20,000 are wiped out. Many shareholders paid as high as $150 a share for their stock. So far as can be learned, the deposits were $128,000, and how much the depositors will lose still is problematical. Nearly forty witnesses appeared at Cincinnati before the federal grand jury which is investigating the bank failure. Twenty-seven witnesses received subpoenas in that city.
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# LUMBER COMPANY Goes Into Receivership Following New Richmond Bank Failure. New Richmond, Ohio. - The Fridman Lumber Company, one of the oldest concerns in New Richmond, has gone into the hands of a receiver. A. J. Shaw, retired hardwood merchant, New Richmond, has been appointed receiver. The officials of the firm include C. D. Fridman, president: L. F. Fridman and Frank Davis. C. D. Fridman stated that the reason of the firm's affairs going into the hands of a court was partly on account of the recent failure of the First National Bank of New Richmond, with which his company had done business.
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FIFTH DIVIDEND PAID To Creditors of First National Bank of New Richmond, Ohio, Which Falled in 1915. Cincinnati, Ohio, December 13-The Comptroller of the Currency has authorized the payment of a fifth dividend of 10 per cent to creditors of the First National Bank of New Richmond, Ohio, whose claims have been legally proved and allowed. Checks for the payment of this dividend are now being prepared, and will be mailed to creditors from the office of P. E. Wagner, receiver, Charleston, W. Va., during the next week. This makes a total of 60 per cent paid on claims proved and allowed amounting to approximately $120,000. The First National Bank of New Richmond failed in 1915. The aim of the receiver is to pay a final dividend and close up the affairs of the trust within the next few months. What the amount of the final dividend will be cannot be estimated at this time.
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Notice is hereby given that on Aug. 2, 1921, Harry J. Scheld, Jr., whose residence is at South Bend, St. Joseph County, State of Indiana, suing on behalf of Robert Black whose residence is at Cincinnati, Hamilton County, Ohio, filed his petition in the Probate Court of Hamilton County, Ohio, against The Compressed Wood Preserving Co., a corporation organized under the laws of Ohio and having its principal place of business at Cincinnati, in the County of Hamilton, Ohio, and said Robert Black alleging that said Harry J. Scheid, Jr., is the owner of record on the books of said corporation of 140 shares of the common stock of said corporation evidenced by four certificates as follows: No. 73 for fifty shares, No. 74 for fifty shares, No. 75 for twenty shares and No. 76 for twenty shares, each of the par value of $100,000 each, that said stock was assigned as collateral security to secure a note for $150,000 made by Harry J Scheld to the First National Bank of New Richmond, Ohio, and upon the liquidation of said Bank, said note and collateral was sold and assigned to Robert A. Davis, who has assigned his interest therein to said Robert Black and that said certificates of stock have been lost or destroyed while in the possession of the attorney for said Robert A. Davis while said Harry J. Scheid, Jr., was the owner thereof and that said Harry J. Scheid, Jr., has assigned his interest in said stock and dividends payable or to be paid on said stock to said Robert Black and he brings this action on behalf of said Robert Black praying for an order directing said corporation to execute and deliver new certificates for said 140 shares to said Robert Black and to restore to him all the rights therein that said Harry J. Scheid, Jr., had therein and said cause numbered No. 1350 on the docket of said Court will be for hearing upon said petition August 25, 1921 at 10 o'clock A. M. in said Court. HARRY J. SCHEID, JR., ROBERT BLACK. Aug. 3-12-19.