18686. First National Bank (Glen Rock, PA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
435
Charter Number
435
Start Date
November 1, 1886*
Location
Glen Rock, Pennsylvania (39.793, -76.730)

Metadata

Model
gpt-5-mini
Short Digest
6549f78f

Response Measures

Capital injected, Full suspension, Books examined

Other: Board assessment (35% on stock) used to recapitalize; criminal arrests of president and cashier.

Description

Contemporary reports describe a run on the First National Bank of Glen Rock after the insolvency/failure of Herbst & Sons and subsequent discovery of large overdrafts and embezzlement by the president and cashier. Newspapers (Nov–Dec 1886) refer to the bank's failure, arrests for embezzlement, and an expert examining the books after failure. Directors attempted measures (resignations, replacement of officers, and a 35% assessment on stockholders) but the bank is repeatedly described as failed/broken in the coverage. No explicit mention of a receiver being appointed in these articles, but the bank is treated as failed/closed.

Events (5)

1. May 21, 1864 Chartered
Source
historical_nic
2. November 1, 1886* Run
Cause
Bank Specific Adverse Info
Cause Details
Failure/insolvency of Herbst & Sons (major borrowers) and revelations of large overdrafts/embezzlement by bank president and cashier prompted depositors to withdraw funds.
Measures
Board investigated finances; president and cashier compelled to resign; new officers appointed; assessment of 35% on stockholders levied to cover losses.
Newspaper Excerpt
the reported failure created a considerable run on the bank.
Source
newspapers
3. November 29, 1886 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of improper discounts/overdrafts and alleged embezzlement (approx. $50,000 missing from capital) led to the bank's failure and suspension of normal operations reported in late Nov. 1886. Articles state the bank had 'failed' and books were in very bad shape after examination.
Newspaper Excerpt
GLEN ROCK'S BROKEN BANK. The Expert Finds the Books in Very Bad Shape. ... ex-President William Herbst and Cashier Henry Seitz ... were held ... to answer a charge of embezzlement.
Source
newspapers
4. December 10, 1886 Other
Newspaper Excerpt
It was learned some days ago that the bank was in a bad fix ... the two younger Herbsts ... became insolvent, and this caused a run on that institution. ... a large surplus being on hand, an assessment of 35 per cent. on the stockholders has enabled it to live through its troubles. ... the accused were given a hearing ... Commissioner Edmunds thought the evidence sufficient to hold the defendants.
Source
newspapers
5. March 15, 1919 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)

Article from The Baltimore County Union, October 16, 1886

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Heboville, 2d District. When anything 00 curs in a community that is of general interest the press should give publicity to it, therefore it becomes our sad and painful duty this week to chronicle a synopsis of a family' history that, owing to its peculiarity, is perhaps without a parallel. About six years ago Mr. Caleb Emmart was paralyzed and a short while after & second the of in resulted which softening attack occurred, brain, from which time was mentally deranged. April, 1885, while his wife, Mrs. Susannah Emmart, was performing a kind act for him, he, in his aberration of mind, struck her in the breast. Allow me to say that Mr. Emmart, prior to his dutiful hus kind father, was always affliction, band, a Christian gentleman, a good neighbor, and the stroke he gave was entirely directed by a dethroned reason Two weeks after the stroke a cancer began to develop. Dr. Hood, of Baltimore, was called in but did no good. In the latter part of August Profs. N. W and R. Kneass and Sears performed an operation and the cancer healed in two weeks, but soon after developed again, when the same Profs. performed a second operation on Dec. 1st, after which it never healed and by which her iron constitution was broken. In June, 1886, Dr. R. A Simpson, of York, Pa., was sent for, who undertook remove the cancer by the chemical process, which every one hoped would prove successful, but which, after the most excruciating suffering, borne with Christian fortitude seldom if ever witnessed before, only exhibited the fact that the deadly cancer had extended to the vitals, and disease, jaundice which Bright' superindu Not died on 4th. Oct. she which from dropsy, withstanding the long and terrible suffering she passed through reason remained enthroned to the last moment, for while dying she called her daugh. ter Carrie and other members of the family to her bedside. Her funeral took place at Mt Olive Church, on the 6th inst. Revs. R. Nicholas, W. T. D. Clemm, Page Milburn and D. F. Farring, of Wilmington, Del. officiated. The funeral cortege was one of the largest ever seen in this section. The obsequies were such as never before witnessed in Mt Olive Church. Mrs. Emmart was dutiful wife, benign mother, a Christian woman and respected by who knew her. Another painful incident we are called upon to chronicle this week is the death of Mr. John Kalb, highly respected citizen of this community. He took load of hay to the city on Saturday morn ing, and on his return in the afternoon load manure his horses took fright just beyond the spans Western Maryland R R. bridge oringe over the Liberty small stream which crosses the Liberty road in the hollow This bridge, it is said, has middle arm which divides it into two parts, upon which it is supposed the hubs of the wheels ran, capsizing the wagon on the bridge. Mr. Kalb was on the lazy board at the time of the accident, drawing the rubber. About what time the accident happened in the afternoon is not known, but it is thought to have happened about 6 o'clock. When the wagon up up-set fell directly on Mr. Kalb, pinion ing him to the floor of the bridge, from which it was impossible for him to extricate himself, even though be had not been killed outright How long after the accident until help came is not known. One man passed and noticed the up set and the four horses standing quietly but seeing no one about passed on. Mr Clicket finally came along and in searching around the wagon found the legs of man slightly protruding from be. neath The team being recognized, word was immediately dispatched to his son, Mr. Franklin Kalb, at Lexington market, who forthwith came out, and after removing the load and wagon, took his father's body home. Dr. Hebb was called in and made an examination. No bones were broken and the slight contusion upon the temple is not thought to have been sufficient to cause death. limbs of and arms the his But skinned fact being in frequent attempts to extricate himself proves that he was not killed instantly but died of suffocation. The shock to his wife and little ones was beyond all description. Leaving his family in the morning in the best of spirits and being brought home at night a mangled corpse is calcu lated to unnerve the boldest heart. His family has the sympathy of the entire community The funeral sermon was preached at his late residence by Rev. H. N. Greninger, at 2 o'clock m., last Tuesday, and the interment was made in the German Church cemetery at this place. This is the eleventh or twelfth causality and death I have chronicled in which lazy board was the principal agent. Teamsters should take warning The White Grounds literary association of this place held its second meeting last Friday night, which was well attended. A committee was appointed to draft resolutions of condolence for the bereaved avedfamily of Mrs Susannah Emmart. Music was furnished by the choir, Miss Nettie Upton presiding at the organ. Several recitations were rendered by members. The question, 'Resolved, that inland commerce is more benficial to the United States than foreign commerce," was part ly discussed and laid over until this week's meet. ing. Miss Mary Keglin, a relative of Mr. Ripley, died last Sunday and was buried at Union. T. Shrewsbury ana Vicinity is a remarkable fall. Up to this time the weather with us has been warm and dry. The grain sown this fall has made very little growth thus far.We have had but few frosts, yet those that we have had as a general thing killed vegetation. The York agricultural fair, which closed last Friday, was very succeseful both in exhibits and Inrgest that was ever on that ground was there on Thursday Gov. Pattison was present and addressed the people. His address was the best I ever listened to and was enthusiastically received. There is great deal of sickness all around us. A fever of typhoid character is said to be epidemic around Stewartstown. A number of per sons are at this time lying very low with the disease. The deaths are mostly among elderly persons. The wife of Rev. J. A. Ramsey, of Maryland Line, very estimable lady, died recently Mr. Robert W. Caskey, of New Market, whose Was noticed in in illness Towsontown sudden THE UNION of last week, has since died. The death by accident of Howard Koller, a sixteen- year old son of Daniel Koller, of your county, is sadly lamented. The circumstances under which he received his fatal injuries are of the most distressing occurred whilst the son and father were at the cider press, the beam used to work the press striking the boy and crushing his skull, rendering him unconscious, from which he henever recovered until death relieved him on Thursday morning last. The failure of William Herbst & Son, popular dry goods firm of Glen Rock, has been reported. of First the Herbst Mr. William president being National Bank at that place, the reported failure created a considerable run on the bank. At this writing it is not known what extent the break will be. It will shake up the place financially similar to that of the failure of George F. Seitz some time ago. Business is to be opened at Pike Station, on the Stewartstown railroad, a short distance south of Shrewsbury, in few weeks. A very fine siding has been put down and a warehouse is being erected by Mr Lanius. It is said Mr. James H. of have this merchant will Hendrix, place, charge of the business. Mr. Hendrix is a very popular gentleman and when he commences business at Pike Station he will at once, having the confidence of the people, command a large trade. When business opens at this point Shrewsbury Station will be relieved of the business it now does to a very large extent. Shrewsbury has recovered the greater part of her trade which got away to other places. Our merchants are off to the city for a fresh lot of goods. When they return we expect business to improve, not, however, as long as this summerlike weather continues. Polities will absorb everything for a few weeks, After the election things will settle down for the K. winter. Philopolis, 8th District.-Th The Union Chapel monthly Sunday school concert on Sunday evening last, was more interesting than similar previous meetings. Rev. Edwin Small and Mr Edward Austen made addresses. The recitation of scripture was well rendered by the school, and the singing was very apprpriate and good. Rev. Duncan McCullough was also present. On Sunday evening next minister from Charleston, S. C., will preach at the Chapel, and on 24th inst., Rev. Mr. Small will deliver his final discourse before taking his departure for


Article from Press and Daily Dakotaian, November 29, 1886

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Before Washington Satur leaving noy of the company. the anti-saloon republican national committee were Saturday formally moved from Chicago to New York and established at Nos, 32 to 38 East Forty-Third street. The great San Erancisco trot Saturday was won by Harry Wilkes, who took the first, second and fourth heats. The third heat was won by Guy Wilkes, Time; 2:15½, 2:16½, 2:16% and 2:15. Twenty-two sacks containing mail from England to Germany, Russia and the east, while in transit on at train in Belgium Saturday, were out open and plundered of all the registered letters. Near Detroit, Saturday morning at 2 o'clock the steamer Alaska collided with the steamship Oregon, which was beached by her captain to keep her from sinking. The Alaska was not badly damaged. The bottlers division of the glass blowers' league met in convention in Baltimore Saturday, and in secret session ordered a strike among its members in the east division, which includes all the territory east of the Alleghenies, including Canada. The spread of cholers in Rosario, Buenos Ayres, creates great alarm. Saturday there were seventy-two new cases and Sity-four deaths. At Cordova seven new cases were reported Saturday. Congress has adjourned owing to the visitation of the dread disease. In the celebrated Cleveland murder. case the coroner reports: "I therefore find that Jane Wheller came to her death at 46 Eagle street, on November 12th, ot about 8:30 p. m., by being choked to death by her husband, Benjamin Wheller." William Herbst, late president of the bank, and Henry Siebst, late cashier, and Jacob Herbst and William Herbst, SODS of President Herbst, composing the banking firm of Herbst & Sons, of Glenrock, Pennsylvania, have been arrested for embozzling $750,000. They represent the First National bank of Glenrock. In the Milwaukee anarchist cases the jury returned a verdict finding Carl Mussfelet, John Runge and August Cutz guilty, and acquitting six other prisoners who took a minor part in the riots. The three rioters found guilty were among the leaders of the mob in the conflict with the police when an interchange of shots took place. The hoge slanghterered by Chicago packers during last week amou nted to 201,000, or within 13,000 of the number packed the same week last year. The receipts for the winter season to date exhibit almost 214,000 decrease, while shipments exhibit 133,000 increase. The number of hogs packed is 345,000 less ] than during the corresponding period of last year.


Article from Savannah Morning News, November 30, 1886

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GLEN ROCK'S BROKEN BANK. The Expert Finds the Books in Very Bad Shape. PHILADELPHIA, Nov. 29.-Ex-President William Herbst and Cashier Henry Seitz, of the First National Bank of Glen Rock, York county, were held in $5,000 bail each this afternoon by United States Commissioner Edmunds to answer a charge of embezzlement. The testimony showed that notes amounting to over $50,000, most of which were drawn in tavor of Herbst, were discounted at the bank by the cashier without the knowledge or consent of the Boardof Directors. Herbst obtained ball, but Seitz was unable to secure a bondsman and went to jail. Jacob and William Herbst, Jr., sons of the ex-bank president, are under arrest at Baltimore on the same charge and will be given a hearing Dec. 12. Among the witnesses was Expert Accountant Nathaniel J. Seitz, of Washington, a nephew of the cashier. He testified that he was employed to examine the books of the Glen Rock Bank after its failure. The first overdraft he found amounted to $11,687 on a note dated Nov. 26, 1885, and signed william Herbst & Sons. "The books show," he said, "that at this time three notes were given-$4,000 of Herbst & Seitz, $4,000 of William Herbst & Sons, $3,600 drawn by J.S. Herbst & Co. The balance of $87 was paid in cash. The three notes were renewed from time to time, and finally the names of the makers of two of them were changed on the books. The Herbst & Seitz note of $4,000 was changed to J. S. Herbst & Co. J.S. Herbst & Co.'s note of $8,600 was changed to J. S. Herbst. The next overdrafts began about a week after the first had been settled, and run until Aug. 29, 1885, when it amounted to $2,873 01. This was settled by a note of William Herbst & Sons for $2,872 and $1 01 in cash. A week later an overdraft began and continued until October, 1886. It amounted to $18,683 50, which is still unsettled. The entire amount of overdraits is $33,245. In addition to these there are notes amounting to $2,516 94 of the two firms, and the directors' books show that only $4,000 of it was formally discounted by the Board of Managers. Cashier Seitz's indebtedness to the bank amounts to $5,800, and only a few of his notes appear to have been discounted by the board. Emanuel K. Ballinger, a director of the bank, admitted that although he had been adirector for eleven years he had never examined the books.


Article from The Cambria Freeman, December 10, 1886

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HOW A BANK WAS BROKEN. The Recent Failure at Glen]Rock. William Herbst, ex-president of the First National Bank of Glen Rock, York county, his two sons, Jacob S. and W. H. Herbst, and Henry Seitz, the last named of whom was cashier of the bank, were arrested on Saturday charged with swindling it out of about $50,000 of its $75,000 capital. It was learned some days ago that the bank was in a bad fix, as the two younger Herbs's, who conducted a country store in Glen Rock, and had unlimited credit at the bank, became insolvent, and this caused a run on that institution. This aroused the board of directors, who began at once to investigate the finances of the business, and found that about $54 000 of the capital stock had practically taken to itself wings and flown away. The way in which this was managed was that paper was made by the elder Herbst and his two sons and money advanced on it by the bank without adequate security. One of the notes is even said to have been signed with the name of a firm which had been out of business for five years, and it is claimed that the cashier knew this was the case. Herbst has been president of the bank since its formation in 1863, and Seitz cashier almost as long as that, and it was thought to be one of the soundest financial institutions in that part of the State. Many poor persons went some distance to deposit their money there, because they believed it to be entirely safe. The first inkling the people had of any difficulty was shortly over a week ago, and it came in the very astonishing shape of the failure of the two younger Herbsts, who carried or. a store at Glen Rock. This directed attention to the bank, and an immediate examination showed that the practices above referred to had been carried on until over $50,000 was gone. The President and cashier were both compelled to resign and their places filled by others. A large surplus being on hand, an assessment of 35 per cent. on the stockholders has enabled it to live through its troubles. Seitz went to Philadelphia, being left penniless, to make his home with his son-in-law, Christian L. Nanmeister, or 2210 North Seventh street, where he was arrested and his bail fixed at $5000, which he could not raise. Herbst was arrested at the same time in Glen Rock and bis two sons in Baltimore, where they went to escape the storm of indignation among the Glen Rock people. The elder Herbst was taken to Philadelphia on Saturday and given a bearing, but was unable to raise the $50,000 bail demanded, 80 he had to go to jail. He says that be is left without a cent. Hearing the Accused. William Herbst, ex-president of the First National Bank, of Glen Rock, York county. and the former cashier. Henry Seitz, charged with embezzlement of the funds of the bank, were given a hearing on Monday afternoor before United States Commissioner Edmunds, at United States District Attorney Valentine's office. The first witness examined was Nathaniel L. Seitz, of Washington, D. C., who testified that at the request of President Dise, he examined the affairs of the bank. The first overdraft of Wm. Herbst & Son, as shown by the books, was $11,689.05, May 26, 1885. Three notes were given, one of $4,000 by Herbst & Seitz ; one of $4000 by William Herbst & Son, and another of $3,600 by J. S. Herbst & Co., and a balance of $87.05 in cash. These notes were renewed from time to time and are still in existence. The witness further testified as to subsequent changes being made in some of the notes, and also as to additional overdrafts The total amount of the overdrafts to $33,245,50. Other withesses were examined, including Joseph S. Dise, present president of the back, and Directors Noah K. Saitz, E. K. Ballinger and William H. Gerbrick. whose testimony related principally to the drafts and notes in question. Commissioner Edmunds thought the evidence sufficient to hold the defendants.