Security Mortgage & Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: July 18, 1898
Location: Dallas, Texas (32.783, -96.807)

Metadata

Model: gpt-5-mini
Short Digest: c454df1e

Response Measures

None

Description

Articles (Mar 1899) report that the Security Mortgage & Trust Company of Dallas defaulted on interest Jan 1, 1897; a receiver (H. A. Kahler) was appointed July 18, 1898 and the assets were sold in Oct 1898. No run is mentioned; the company is in receivership and being wound up, so this is a suspension leading to closure/receivership driven by bank-specific insolvency/default.

Events (2)

1. July 18, 1898 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Default in payment of interest on obligations (default noted Jan 1, 1897) led to receiver appointment July 18, 1898
Newspaper Excerpt: the District Court of Dallas, Tex., appointed H. A. Kahler receiver for the Dallas company, July 18, 1898
Source: newspapers

2. October 1, 1898* Receivership

Newspaper Excerpt: in October 1898, the assets of the Dallas company were sold. The complainants claim that this sale included securities which are held by the New York Trust Company. ... the District Court of Dallas, Tex., appointed H. A. Kahler receiver for the Dallas company July 18, 1898, and that in October 1898, the assets of the Dallas company were sold. ... the Texas company went into the hands of a receiver, who was directed to dispose of all its assets. The assets were purchased, it is alleged, by the plaintiff. They say that they are entitled to the benefits of the trust ... and ask ... that the New-York Security and Trust Company be required to give a full and complete account of its acts as trustee. (Articles dated March 10-11, 1899.) Excerpted confirming sale in Oct 1898 and winding up of affairs by court-appointed master in 1899.
Source: newspapers

Newspaper Articles (4)

1. March 11, 1899 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, March 11, 1899

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Article Text

TO WIND UP TRUST COMPANY. Appointment of Master in Case of Dallas Institution. NEW YORK, March 10.-Judge Lacombe in the United States Circuit Court 10-day, appointed Arthur H. Masten master, to examine the accounts of the New York Security and Trust Company, as trustee of the Security Mortgage and Trust Company, of Dallas, Tex., and to wind up the affairs of the latter concern. The order was granted in a suit of equity brought by R. Heaton Smith, Charles Henry Wade, William Brelsford, John E. Booth, and F. W. Martin, of England, and William Henry Fox, of Philadelphia, in which the New York Security and Trust Company is named as defendant. The complaint recites that in January, 1897, the Dallas company made default in the payment of interest on certain obligations. At that time its outstanding obligations amounted to $383,201. The New York Trust Company then entered upon the active execution of its trust, and since that time at the request of certain holders of debentures, has been settling and disposing of the pledged securities of the Dallas company. The complaint further alleges that the District Court of Dallas, Tex., appointed H. A. Kahler receiver for the Dallas company, July 18, 1898, and that in October 1898, the assets of the Dallas company were sold. The complainants claim that this sale included securities which are held by the New York Trust Company. It is further asked that the New York company be required to give a full and complete account of its acts as trustee.

2. March 11, 1899 The Morning News Savannah, GA

Article from The Morning News, March 11, 1899

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Article Text

TO EXAMINE ITS ACCOUNTS. New York Security and Trust Company Brought Into Court. New York, March 10.-Judge Lacombe, in the United States Circuit Court to. day appointed Arthur H. Masten master to examine the accounts of the New York Security and "Trust Company as trustee of hte Security Mortgage and Trust Company of Dailas, Tex., and to wind up the affairs of the latter concern. The order was granted in a sult of equity brought by R. Heaton Smith, Charles Henry Wade, William Brensford, John E. Booth and F. W. Martin of England and William Henry Fox of Philadelphia, in which the New York Security and Trust Company is named as defendant. The company recites that in January, 1897, the Dallas company made default In the payment of interest on certain obligations. At that time its outstanding obligations amounted to $383,201. The New York Trust Company then entered upon the active execution of its trust. and since that time at the request of certain holders of debentures, has been settling and disposing of the pledged securities of the Dallas company. The complainant further alleges the District Court of Dallas, Tex., appointed H. A. Kahler receiver for the Dallas company July 18, 1898, and that in October, 1898, the assets of the Dallas company were sold. The complainants claim that this sale included the securities which are held by the New York Trust Company. It is further asked that the New York company be required to give a full and complete account of its acts as trustee.

3. March 11, 1899 Virginian-Pilot Norfolk, VA

Article from Virginian-Pilot, March 11, 1899

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Article Text

AN ACCOUNTING WANTED. AFFAIRS OF TRUST COMPANIES TO BE EXAMINED. (By Telegraph to Virginian-Pllot.) New York, March 10.-Judge Lacombe, in the United States Circuit Court to-day, appointed Arthur H. Masten, master, to examine the accounts of the New York Security and Trust Company as trustee of the SecurIty, Mortgage and Trust Company of Dallas, Tex., and to wind up the affairs of the latter concern. The order was granted in a suit of equity, brought by R. Heaton Smith, Charles Henry Wade, William Bretsford, John E. Booth and F. W. Martin. of England, and WilIlam Henry Fox, of Philadelphia, in which the New York Security and Trust Company is named as defendant. The committee recites that in January, 1897, the Dallas company made default in the payment of interest on certain obligations. At that time its outstanding obligations amounted to $383,201. The New Trust Company then entered upon the active execution of its trust, and since that time, at the request of certain holders of debentures, has been settling and disposing of the pledged securities of the Dallas company. The complaint further alleges the District Court of Dallas, Tex., appointed H. A. Karhler receiver for the Dallas company July 18, 1898, and that in October, 1898, the assets of the Dallas company were sold. The complainants claim that this sale included the securities which are hold by the New York Trust Company. It is further asked that the New York company be required to give a full and complete account of its acts as trustee.

4. March 11, 1899 New-York Tribune New York, NY

Article from New-York Tribune, March 11, 1899

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Article Text

TO CLOSE OUT A COMPANY'S AFFAIRS. ARTHUR H. MASTEN APPOINTED BY JUDGE LACOMBE. Judge Lacombe in the United States Circuit Court. yesterday appointed Arthur H. Masten to examine the accounts of the New-York Security and Trust Company as trustee of the Security Mortgage and Trust Company of Dallas, Tex., and to wind up the affairs of the Jatter company. The order is granted in a suit in equity brought by R. Heaton Smith. Charles Henry Wade, William Brelsford, John E. Booth and F. W. Martin, of England, and William Henry Fox, of Philadelphia, in which the New-York Security and Trust Company is named as defendant. According to the complaint, the Security Mortgage and Trust Company of Dallas, Tex., a corporation founded under the laws of that State, entered into an agreement on September 25. 1888, by which the Holland Trust Company, of this city, was to act as its trustee in securing the payment of its obligations. On April 2. 1895. the Holland Trust Company resigned as trustee. and on May 6 following the New-York Security and Trust Company was appointed as its successor. The complaint further says that the Security Mortgage and Trust Company made default in the payment of interest on certain obligations on January 1. 1897. at which time its outstanding obligations amounted to $383,201 9(0, and that the NewYork Security and Trust Company then refused to allow the Texas company to receive interest on the securities pledged for its debentures. The NewYork company is said to have collected later the interest and income of these securities. On July 18 last the Texas company went into the hands of a receiver, who was directed to dispose of all its assets. The assets were purchased, it is alleged. by the plaintiff. They say that they are entitled to the benefits of the trust under which these securities are held by the New-York company. They ask among other things that the trust agreement of September 25, 1888, be foreclosed and that the New-York Security and Trust Company be required to give a full and complete account of its acts as trustee.