1852. Peoples National Bank (Laurel, DE)

View Charter #6726 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
6726
Charter Number
6726
Start Date
January 11, 1932
Location
Laurel, Delaware (38.557, -75.571)

Metadata

Model
gpt-5-mini
Short Digest
ca397705aa82e6eb

Response Measures

None

Receivership Details

Date receivership started
1932-01-18
Date receivership terminated
1932-06-15

Description

The Peoples National Bank of Laurel suspended business on January 11, 1932 and was placed in charge of a government receiver (Alonzo Tweedale). There is no mention in the articles of a depositor run preceding the suspension. The institution was reorganized (stock surrendered, depositors waived 20% etc.) and reopened in mid-June 1932 (about five months later).

Events (5)
1. April 18, 1903 Chartered
Source
historical_nic
2. January 11, 1932 Suspension
Cause
Government Action
Cause Details
Bank suspended business on January 11 and a government official (Alonzo Tweedale) was appointed receiver; suspension led to reorganization efforts.
Newspaper Excerpt
Since the bank suspended business on January 11, it has been in charge of government official, Alonzo Tweedale having been appointed receiver.
Source
newspapers
3. January 18, 1932 Receivership
Source
historical_nic
4. June 13, 1932 Reopening
Newspaper Excerpt
The Peoples National Bank which closed last January will reopen business next Monday ... brought reorganization about after being closed 5 months ... has capital and surplus of $200,000 ... opened its doors at 8 o'clock with a capital of $100,000, a surplus of $100,000, all paid in cash, with a total of 634 stockholders, and more than 2,000 depositors.
Source
newspapers
5. June 15, 1932 Restored To Solvency
Source
historical_nic

Newspaper Articles (12)
1. January 19, 1932 The News Journal Wilmington, DE
Article from The News Journal, January 19, 1932

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Article Text

PLEDGE OPEN LAUREL BANK Most of New Issue Sold to Present Stockholders of Institution. Special Every Evening LAUREL hundred people attended meeting the school auditorium night the interest reopening the Peoples National Bank that suspended busiweek committee reported that $55,000 had been raised for stock issue which the bank A total $250,000 wanted the under the plan. stock has been to the old bank and drive now being made to secure new stockholders. Shares are selling for $100 each with par value $40 Under present plan $100,000 capital, $100,000 surplus, with $50,000 undivided.

2. January 20, 1932 The Morning News Wilmington, DE
Article from The Morning News, January 20, 1932

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PLAN FOR REOPENING OF LAUREL BANK LAUREL Del. Jan. hunpeople attended mass meeting held in the school auditorium last night in the interest of reopening the People's National Bank that suspended business one week ago. committee reported had been raised stock finance the total of wanted to properly finance the institution under the present plan. Most of the new stock has been sold to stockholders in the old bank and drive is being made to cure stockholders. Shares are selling for $100 each Under present plan be the capital, $100,000 surplus, with $50,000 undivided Argentina Boosts Taxes BUENOS Jan. The Argentine government imposed taxes on property and business today in one of the most drastic steps of Argentina's financial The taxes were imposed to balance country's budget. its finances basis and silence talk

3. January 20, 1932 Smyrna Times Smyrna, DE
Article from Smyrna Times, January 20, 1932

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PLAN TO OPEN LAUREL BANK $55,000 of $250,000 Raised by Patrons in a New Stock Issue Five hundred people attended a mass meeting held' in the school auditorium Monday night in the interest of reopening the People's National Bank that suspended business one week ago. A committee reported $55,000 had ben raised in new stock to finance the bank. A total of $250,000 is wanted to properly finance the institution under the present plan. Most of the new stock has been sold to stockholders in the old bank and a drive is now being made to secure new stockholders. Shares are selling for $100 each. Under present plan $100,000 will be the capital, $100,000 surplus, with $50,000 undivided.

4. February 5, 1932 Milford Chronicle Milford, DE
Article from Milford Chronicle, February 5, 1932

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HOPE TO RE-OPEN LAUREL BANK SOON People Of Town Hear That Funds May Be Secured Another mass meeting attended by about 600 people in the interest of the re-opening of the Peoples National Bank, of Laurel, was held in the school auditorium Thursday night. Dr. J. Roscoe Elliott, chairman, in opening the meeting said 1,502 shares at $100 each had been reported sold. The chairman reported that the old bank had approximately 200 stockholders while the 1500 shares had been purchased by more than 500 people. He also stated 130 of the shareholders in the old bank had already purchased stock in the new bank. He also explained a proposed change in the plans of the new bank as a result of the recent bill passed by Congress by which it is possible to 'secure for suspended banks through the Reconstruction Finance Corporation. The committee has investigated the matter and believe it will be possible to secure funds for the new bank. The speaker explained, however, that it would not affect the amount of capital needed and that it would still be necessary to raise the proposed $250,000. In order to be in line for funds from the Reconstruction Finance Corporation, it is necessary for the receiver of the bank to list all the assets of the old bank in detail, which list must be presented for consideration to receive a share of the funds made available through this act. This work is now in progress and several days will be required to complete it, after which the commit[Turn to Page 5, Please]

5. March 4, 1932 Milford Chronicle Milford, DE
Article from Milford Chronicle, March 4, 1932

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J. EMERY CHIPMAN DIES AT DELMAR Former School Principal Found By Daughter In Kitchen Of Home J. Emery Chipman, 57 years old, for 17 years principal of the Delmar (Delaware) Schools, was found unconscious from gas poisoning in the kitchen of his home at Delmar late last Friday and died a short time after being found by his daughter, without regaining consciousness. No cause can be assigned for the act as no notes were found and Mr. Chipman had not complained of illness although he had told his daughter he had a severe pain in his arm. His daughter Helen, who found her father, was at home at 1:30 o'clock Friday afternoon, but went out and returned about 5:40 o'clock and detected the odor of gas and then found her father on the kitchen floor with gas flowing from three burners of the gas range. She summoned Dr. Howard S. Lynch but despite ministrations by the physician, Chipman succumbed to the effects of the fumes. A brother of the deceased, J. Thomas Chipman, of near Laurel, ended his life about a month ago by drowning following the closing of the Laurel bank. J. Emery Chipman was a graduate of Delaware College and for many years was engaged as a school teacher. He retired several years ago following the death of his wife. He is survived by his daughter, Helen. and one son, Manning Chipman, of Philadelphia. One brother, Ernest Chipman, of Laurel, and a sister, Mrs. A. E. Elliott, of Delmar, also survive. Funeral services were held from his late home on Monday morning, with the Rev. George Bailey of the Mt. Olivet M. E. Church officiating. Interment was made in the Laurel Hill cemetery at Laurel.

6. March 11, 1932 Milford Chronicle Milford, DE
Article from Milford Chronicle, March 11, 1932

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Article Text

CLOSED LAUREL BANK SOON OPENS ITS DOORS Plan Of Reorganization Outlined To Peoples National Stockholders As soon as the cash is paid in for the capital stock subscribed and the old stockholders have signed away their rights in the bank, and the depositors have signed the necessary agreements regarding the drawing of their accounts, the People's National Bank of Laurel which suspended business in January' will be ready to open its doors once again for business. The time required for this procedure is indefinite, but those in charge are determined to rush the matter through and it is expected that the institution will De open within a brief period. The following plan of reorganization is being outlined to all depositors and stockholders: Stockholders of the suspended bank are asked to surrender the capital stock, which is done for two reasons. The proceeds of such surrender will be used to charge off certain "objectionable" assets of the old bank, it being the intention to open a strong and solvent institution. Stockholders by such surrender, eliminate the possibility of an assessment of $100 per share on the stock of the suspended bank, which is assured if it should be necessary to likuidate the assets of the suspended bank by receivership. New stock will be sold to the [Turn to Page 6, Please]

7. March 11, 1932 Milford Chronicle Milford, DE
Article from Milford Chronicle, March 11, 1932

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e CLOSED LAUREL BANK SOON OPENS ITS DOORS [Continued from First Page] $ amount necessary to meet the re$ quirements of the comptroller of the currency and the receiver in charge, and which they feel in their best judgment will furnish the necessary capital to operate the reopened bank successfully. The plan also calls for the cooperation of the depositors by agreeing to waive and contribute 20 per cent of their respective deposits for the purpose of charging assets of the suspended bank which are called "objectionable," which will be liquidated as conditions permit, to the best advantage. As liquidation of these assets takes place, the proceeds will be paid to depositors as a part of the 20 per cent of deposit waived according to agreement. Each depositor waiving 20 per cent of his deposit now in the bank will receive a "certificate of participation," which will entitle him to participate in the distribution of the proceeds from liquidation of assets held in trust. Should the amount realized from such liquidation be more than the amount waived by depositors, plus interest at the rate of 3 per cent per annum, which will also be paid to the depositor, the balance will be applied to the undivided profit account of the bank and will materially enhance the value of the new stock. The depositor also accepts the balance of his deposit in deferred payments in the following manner: 12 1/2 per cent on opening, 12 1/2 per cent in six months, 15 per cent in 12 months, 15 per cent in 18 months, 15 per cent in 24 months, 15 per cent in 30 months and 15 per cent in 36 months. Interest at the rate of 3 per cent will be paid on all deposits not made immediately available, except the portion waived. By the surrender of stock by the stockholders of the suspended bank, and the formation of the depositors' reserve, there is available for charge off purposes approximately $394,313. Represented in this figure is $245,958, which is the amount taken from the loan and discount account, and $77,681 taken from real estate account. The latter item comprises all the real estate holdings of the bank except the banking house. It is the feeling of the committee in charge that it will be no difficult matter to realize enough from these two items, by orderly liquidation, to pay the depositors the entire amount a of the 20 per cent of deposits waivT ed, plus interest. Il

8. June 13, 1932 The Evening Journal Wilmington, DE
Article from The Evening Journal, June 13, 1932

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LAUREL BANK NOW READY TO BE REOPENED Brought Reorganization About After Being Closed 5 Months HAS CAPITAL AND SURPLUS OF $200,000 Special to The Evening Journal June 13-The LAUREL National Bank of this town Peoples closed its doors on January which establish the 11 of this year again for business ord of being open months the almost exactly five of official opening date being The bank June that date with open at 8 o'clock surplus of capital of in with $100,000 all paid and more tal of 634 The old than 2,000 had but 193 stockholders The consisting of Dr Charles Roscoe Elliott as Wile L. Horsey George E and Trought Hastings George Harley T Purnell Arthur S. Hearn Frank Twilley M. Jones, and busy since have been in readelection getting Ashley iness for the opening will be the C. of Philadelphia, Mr Jenkins young man cashier with experience but large He had fifteen ing banking circles has in and years banking having worked of the Traders in every Bank of Pa He has also had much experience are in the of banks organized banks in having Pennsy vania Mr Jenkins well trained in the department worked for three years along having line for Philadelphia this The cashier be bank Harold local man who has business in this town for been in number of Guthrie be the Miss Ruth Lloyd clerk stenographer. and Miss and bookkeeper No opening has been planned for Wednesday but the doors will open for business and the simply rectors will welcome old customers well as new ones at that as time According to the re-organization plans consisting of 1,000 shares surrende: All was undesirable of the old bank includ slow paper estate has been placed pool and not part of the bank To an this twenty cent and the deposits of the old bank placed the As soon as th estate and paper be will be paid to the old The remainder of deposits will be paid over of three years, 12 1-2 per cent which made available immediately upon the opening of the bank The of Government also advised that all banks should pay not more than three per interest on wPeoples tional Bank will comply with der the suspended and on January of Government officials Alonzo dale having has been in charge and will the opening Few people thought possible when the closed in January that would the fact that money so difficult to get In spite of this $200,000 in was raised in less than five months by the people of this who realized the necessity of venting

9. June 14, 1932 The Philadelphia Inquirer Philadelphia, PA
Article from The Philadelphia Inquirer, June 14, 1932

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TREASURY RECEIPTS WASHINGTON, June 13 P.). Treasury receipts for June $16,978,balance, 10 days of June were $6,067,911.21. Delaware Bank to Reopen LAUREL, June The Peoples' National Bank which closed last January will reopen business next Monday strengthened financial condition. today will have capital ilar the said, will 634 stockholdand more 2000 depositors. closing the bank had 193 Prior stockholders.

10. June 15, 1932 The Morning News Wilmington, DE
Article from The Morning News, June 15, 1932

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Will Be Exactly Five Date Months After Institution Was Closed Now Has $100,000 Capital the Same Amount in and Surplus LAUREL June Peoples National Bank of this town which closed doors on January of this established the record of has for almost open months the official five date tomorrow The opening bank its doors o'clock open capital of surplus paid with 634 stockholders, and more old bank 193 The board conDr Roscoe Elliott Charles vicepresident: Wiley Trought and George Harley Hastings George Arthur Frank M. Jones and WilHearn has been busy since election getting everything readiness for the opening Ashley Jenkins the cashier of the bank Mr young man but one banking He has had fifteen years circles. and experience banking having worked ment department of the Traders NaBank Scranton, Pa. He has had experience the ganization of banks, ganized well trained in vestment department, having worked three years along this line for Philadelphia bank The assistant cashier will Harold Edie, local man, been for Waller the teller Miss Ruth Lloyd and Miss Sallie Bacon bookkeeper The bank No been but doors will simply open for and the board their old customers as well as new ones that time. the plans, old stock consisting the old bank real been placed pool and not bank To per cent the deposits the old bank the soon and the old The the paid over of three which made upon the opening of the The ment also advised that opened should pay not more than per and the Peoples Bank comply with that request Since bank business January charge government Tweedale having appointed

11. June 17, 1932 Milford Chronicle Milford, DE
Article from Milford Chronicle, June 17, 1932

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Peoples Bank At Laurel Reopened On Wednesday [Continued from First Page] N. Ashley Jenkins, of Philadelphia is the cashier of the new bank. Mr. Jenkins is a young man, but one with a large experience in banking circles. He has had fifteen years experience in commercial and investment banking, having worked in every department of the Traders National Bank of Scranton, Pa. He has also had much experience in the organization of new banks, having organized twelve banks in Pennsylvania. He is well trained in the investment department, having worked for three years along this line for a large Philadelphia bank. The assistant cashier is J. Harold Edie, a Laurel man, who has been in business in Laurel for a number of years. Gurthie Waller ist the teller; Miss Ruth Lloyd, clerk and stenographer, and Miss Sallie Bacon, bookkeeper. The bank opened as a conservative institution. No big opening was planned, but the doors simply opened for business and the board of directors welcomed all their old customers as well as new ones at that time. According to the re-organization plans, all old stock, consisting of 1,000 shares, was surrendered. All undesirable assets of the old bank, including slow paper, real estate, etc., has been placed in a pool and is not a part of the new bank. To balance this item, 20 per cent of the deposits of the old bank were placed in the pool. As soon as the real estate and paper in the pool can be liquidated, it will be paid to the old depositors. The remainder of the deposits will be paid over a period of three years, 121/2 per cent of which is made available immediately upon the opening of the bank. The government has also advised that all reopened banks should pay not more than 3 per cent interest on deposits and the new Peoples National Bank will comply with that request. Since the bank suspended business on January 11, it has been in charge of government official, Alonzo Tweedale having been appointed receiver.

12. June 22, 1932 Smyrna Times Smyrna, DE
Article from Smyrna Times, June 22, 1932

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REOPENING OF LAUREL BANK Revived Institution Now Has $100,000 Capital and Same Amount of Surplus ELLIOTT NEW PRESIDENT The Peoples National Bank of Laurel, which closed its doors on January 11 of this year, has established the record of being open for business almost exactly five months later, the official opening date being Wednesday of last week. The bank opened its doors at 8 o'clock with a capital of $100,000, a surplus of $100,000, all paid in cash, with a total of 634 stockholders, and more than 2,000 depositors. The old bank had but 193 stockholders. The new board of directors consisting of Dr. J. Roscoe Elliott as president; Charles L. Horsey, vice-president; J. Wiley Trought, secretary, and George E. Gordy, Harley G. Hastings, George T. Purnell, Arthur S. Hearn, Frank M. Jones and William B. Willey, has been busy since its election getting everything in readiness for the opening. N. Ashley Jenkins, of Philadelphia, is the cashier of the new bank. Mr. Jenkins is a young man, but one with a large experience in banking circles. He has had fifteen years experience in commercial and investment banking, having worked in every department of the Traders National Bank of Scranton, Pa. He has also had much experience in the organization of new banks, having organized twelve banks in Pennsylvania. He is well trained in the investment department, having worked for three years along this line for a large Philadelphia bank. The assistant cashier is J. Harold Edie, a Laurel man, who has been in business in Laurel for a number of years. Gurthie Waller is the teller; Miss Ruth Lloyd, clerk and stenographer, and Miss Sallie Bacon, bookkeeper. The bank opened as a conservative institution. No big opening was planned, but the doors simply. opened for business and the board of directors welcomed all their old customers as well as new ones at that time. According to the re-organization plans, all old stock, consisting of 1,000 shares, was surredered. All undesirable assets of the old bank, including slow paper, real estate, etc., has been placed in a pool and is not a part of the new bank. To balance this item, 20 per cent of the deposits of the old bank were placed in the pool. As soon as the real estate and paper in the pool can be liquidated, it will be paid to the old depositors. The remainder of the deposits will be paid over a period of three years, 1-2 per cent of which is made available immediately upon the opening of the bank. The government has also advised that all reopened banks should pay not more than 3 per cent interest on deposits and the new Peoples National Bank will comply with that request. Since the bank suspended business on January 11, it has been in charge of government official, Alonzo Tweedale having been appointed receiver.