18760. Agricultural Trust Company (Lancaster, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
June 23, 1921
Location
Lancaster, Pennsylvania (40.038, -76.306)

Metadata

Model
gpt-5-mini
Short Digest
a290eb48

Response Measures

None

Description

The Agricultural Trust Company was closed by the State Banking Department after discovery of large embezzlement by treasurer Charles D. Zell. Articles describe a formal closing/suspension by state authorities and subsequent appointment of a deputy receiver; no run on the bank is described.

Events (3)
1. June 23, 1921 Suspension
Cause
Government Action
Cause Details
State Banking Department closed the bank after investigation disclosed embezzlement and inadequate reserves due to treasurer's speculation.
Newspaper Excerpt
The Agricultural Trust Company, as a result, was closed during the morning by the State Banking Department.
Source
newspapers
2. June 28, 1921 Receivership
Newspaper Excerpt
The shortage ... is now fixed at $235,000 by Charles H. Graff, deputy receiver. ... the Agricultural Trust Company, closed by the State Department of Banking, is now fixed at $235,000 by Charles H. Graff, deputy receiver.
Source
newspapers
3. January 27, 1922 Other
Newspaper Excerpt
Charles D. Zell, former treasurer of the Agricultural Trust Company of Lancaster, Pa., whose defalcations amounting to more than $200,000 caused the closing of the bank ... was sentenced to 22 1/2 years in the Eastern Penitentiary.
Source
newspapers

Newspaper Articles (3)
1. June 24, 1921 New-York Tribune New York, NY
Article from New-York Tribune, June 24, 1921

Click image to open full size in new tab

Article Text

Banker in Cell Confesses He Is $100,000 Short Agricultural Trust Co., at Lancaster, Pa., Closed; Treasurer Seized Just as Taxi Reaches His Home in Stock Market Loss 10,000 Depositors Affected; Accused Embezzler Had Meteoric Financial Rise Special Dispatch to The Tribune LANCASTER, Pa., June 23.-Charles D. Zell, treasurer of the Agricultural Trust Company, occupies a cell in the Lancaster County prison this evening, charged with larceny and embezzalement from the institution, mainly built up by his energy. He has confessed embezzling bank funds estimated at $100,000. The Agricultural Trust Company, as a result, was closed during the morning by the State Banking Department. Zell was taken in custody at the Creswell apartments, in the fashionable section of the city, just as a taxicab drove up before the building. He denied that he was making preparations to flee the city, and tried to explain the presence of the taxicab. After being grilled at the police station he admitted embezzling the bank's funds. He returned money and assigned property totaling $34,000 to the bank. Speculation Revealed Deputy Banking Commissioner Cameron made the following statement: careful investigation of the affairs of the Agriculturel Trust Company has been made by the officers of the banking department. This investigation has disclosed that the books and records of the bank are in a lamentable condition due to the manipulations and peculations of the treasurer, Charles D. Zell "The investigation revealed that the treasure." has for some time been speculating through Philadelphia broke23 and usias the funds of the company for that purpose. "The amount of the shortage has not been determined, owing to the condition of the records and the ramifications of the treasurer's speculative operations. Owing to the conduct of the affairs of the company by the treasurer the reserve has fallen below the legal requirements and the readily negotiable assets of the company have been pledged in efforts to maintain such legal reserve." Had Meteoric Rise Zell's rise in the banking life of the community was meteoric. The Agricultural to-day claims 10,000 depositors, many from the rural districts and many small savings depositors, largely through his efforts. It was opened in 191F. Among those familiar with Zell's tactics. he was known as a plunger. nd rumors had been quite frequent of late that be was buying heavily in stock and "making E pile." When the sever defection in stock prices of May rd June came, his speculations caused a personal embarrassment, which, acCJ ding to his confession, he sought to re ieve by use et the bank's funds. The tank's resources last May 30 were $2,912,325.80 Par value of its street WE: $100 and sales in March were or a basis of $142.75. Most of the e3 tital stock of $250,000 is held in the al districto,

2. June 29, 1921 The New York Herald New York, NY
Article from The New York Herald, June 29, 1921

Click image to open full size in new tab

Article Text

BANK SHORTAGE IS $235,000. Search Cottage for Bonds of Laneaster Institution. LANCASTER. Pa., June 28.-The shortage of Charles D. Zell, former treasurer of the Agricultural Trust Company, closed by the State Department of Bank. ing, is now fixed at $235,000 by Charles H. Graff. deputy receiver. A search of Zell's cottage at Ocean Grove is being made to discover if any bonds taken from the institution have been secreted. Zell is said to have told his counsel he intends to plead guilty.

3. January 27, 1922 The Democratic Advocate Westminster, MD
Article from The Democratic Advocate, January 27, 1922

Click image to open full size in new tab

Article Text

60 Baltimore spent the week's end with 'his mother on John street. Freezing temperatures Saturday caused what is believed to be the only accident of its kind that ever A woman on an pavement and in fell Los Angeles. icy slipped broke occurred and her wrist. . d According to a report filed in the Orphans' court in Baltimore, a few days ago. the late Cardinal Gibbons left an estate valued at about $135,266. The estate consists of Liberty bonds, royalties on certain books, cash and other valuables. Charles D. Zell, former treasurer of 2 the Agricultural Trust Company of Lancaster. Pa., whose defalcations amounting to more than $200,000 caused the closing of the bank by the State Department of Banking, was sentenced to 221/2 years in the Eastern Penitentiary. Harvey Long, East Main street, is suffering from four badly mashed fingers, two on each hand. Mr. Long was a Ashis came chine bestos, working in Monday, the Congoleum around when plant, fingers rolling at main contact with the rolls. Amputation was necessary for all. Dr. Foutz performed the surgica! operation. Because his five-months-old-daughter, Jane. had acquired the thumbsucking habit, and was unable to un derstand that it was objectionable to him, he seized and broke her left arm in two places, Sam Gabel, 28, Cincinnati, admitted when arrested, according to Ohio Humane Society Officers Anthony Brothers and Henry Venneman. Plans are being made to provide a State-wide vote next fall to determine whether the people of Illinois wish the prohibition laws amended to permit the manufacture and sale of beer and wine. Alderman A. J. Cermack, "wet" leader in the Chicago city Counéil, announced. Alderman Cermack has twice led fights in the city Council that resulted in two votes favoring light wines and beer by that body. The Second National Bank, Elkton. was forced to close its doors after its crash had been exhausted by a run which began when the doors opened in the morning. William T. Warburton. president, issued a statement reassuring depositors the assets were sufficient to pay off all accounts and he predicted the bank would be reorganized and reopened next week. Mrs. F. W. Sherwood, of Berkley, Calif., was instantly killed Sunday afternoon, when she plunged from the window of her room on the nineteenth floor of the Hotel Commondore, New York, her body striking on the. roof of a court where scores of persons were at tea. Little was known of the woman. who had been a guest of the hotel since early in January, 1920. She was about 55 years old and was said to be the mother of several small children. At an election held by the stockholders of the Waynesboro Trust Company the capital stock was increased from $125,000 to $250,000. The new stock will be allotted pro rata among the present stockholders and will be sold at $100 a share, half ot which will be added to surplus. The par value is $50 and the book value over $80. The market value is $106. Whilst, the vote authorized an increase of $125,000. but $75,000 will be issued for the present. Three burglars who attempted to break into the Marcus Hook National Bank, Marcus Hook. Pa., at 3 o'clock Sunday morning were driven way by Andrew J. Brown. the 70-vear-old night watchman. who, alone in the building. fired through the front door and wounded one man. The burglars escaped, but the wounded man's blood was splattered all over the front door. more than a quart being found on the step, indicating that the had been hit in the head or neck. The burglars escaped. The stunning display of automobiles at the automobile show in Balweek is many and the displays of visitors timore reports this prospective attracting the buyers. Studebak- Oakland, From er. Maxwell, Buick. Paige. Velie. Nash. Ford. Reo, Hup, Dodge, Essex. Hudson and Willis Knight are wonderful and are far in advance ov er last year's models. The above cars are all sold by dealers in this city who will gladly make appointments to for demonstrations at any time ones interested. After unloading a shipment of canned goods about dark, last Saturday evening. John W. Humbert, of Union Mills. was coming un Broadway, Bala il timore. when his truck was hit by trolley car at a street crossing, and so badly damaged it, that he couldn't move it until the following Monday when he brought it home with the as h sistance of another truck. Mr. Humbert was slightly injured when the collision occurred. He returned home on Saturday night with John Derr, an employee of his, who had accompanied him to the city with another truck load of canned goods. r