Lancaster Trust Company - Lancaster, PA

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: June 24, 1921
Location: Lancaster, Pennsylvania (40.038, -76.306)

Metadata

Model: gpt-5-mini
Short Digest: 665819ca

Response Measures

Full suspension, Books examined

Other: Treasurer arrested for embezzlement; state banking department closed the bank.

Description

Article (Wheeling Intelligencer, 1921-06-24) reports a slight run by depositors preceded the state closure of the Lancaster Trust Company after investigation found misappropriation by the treasurer. The bank was closed by the state department of banking and the treasurer was arrested; closure appears permanent in this account.

Events (3)

1. June 24, 1921 Receivership

Newspaper Excerpt: The Lancaster Trust company ... was closed today by the state department of banking. ... Charles D. Zell ... admitted ... misappropriating $100,000 ... was arrested ... on charges of embezzlement and larceny.
Source: newspapers

2. June 24, 1921 Run

Cause: Bank Specific Adverse Info
Cause Details: Depositors had information of unsatisfactory condition stemming from treasurer's manipulations/speculations and alleged misappropriation.
Newspaper Excerpt: The closing of the bank was preceded by a slight run on the institution by depositors who said they had information as to unsatisfactory condition.
Source: newspapers

3. June 24, 1921 Suspension

Cause: Government Action
Cause Details: Closed by state department of banking after investigation disclosed misappropriation and manipulations by the treasurer (admitted $100,000 embezzlement).
Newspaper Excerpt: The Lancaster Trust company of this city was closed today by the state department of banking.
Source: newspapers

Newspaper Articles (1)

1. June 24, 1921 The Wheeling Intelligencer Wheeling, WV

Article from The Wheeling Intelligencer, June 24, 1921

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Article Text

LANCASTER BANK FORCED TO CLOSE 00 The ARTI Lancaster. Fa., June cultural Trust company of this city was closed today by the state department of banking. The closing of the bank was preceded by a slight run on the institution by depositors who said they had information as to unsatisfactory condition. The assets of the company are said to be about two million five hundred thou. sand dollars. The capital stock is two hundred and fifty thousand dollars. Its patronage was largely from the rural sections. Peter G. Cameron. deputy commes. sioner of banking in a statement says: "Investigation has disclosed that the books and records of the bank due to the manipulations and speculations of the treasurer. Charies I) %ml a lamentable condition. "The investication re trasurer has for som ulating through Phila and using the funds of for that purpose." Charles D zell. treasure cultural Trust company. admitted at his hearing late this afternoon to misappropriating $100,000 of that institution's funds for personal speculation in the stock market. Zell. who IS promment in church work and leader of a local Sunday school. was arrested shortly after the doors of the bank were ordered closed and held in default of $50,000 bail on charges of embezziement and larceny.