2110. Northeastern Savings and Deposit Bank (Washington, DC)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 28, 1896
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 3a319e30

Response Measures

Full suspension

Other: Assignment to an assignee (Thomas P. Woodward) and later appointment of a receiver; litigation followed.

Description

Newspaper accounts state depositors distrusted the bank, a run occurred and the bank made an assignment/was placed in the hands of an assignee and receiver in late January 1896; it did not reopen and litigation/receivership continued through 1896–1897. OCR typos corrected (e.g., Hillman's name, dates). Classified as 'state' because name is a savings and deposit bank (not 'National' or 'Trust'); could be private but 'state' is most consistent.

Events (3)

1. January 28, 1896 Run

Cause: Bank Specific Adverse Info
Cause Details: Failure/assignment of cashier Joseph (Joel) Hillman undermined depositor confidence and precipitated heavy withdrawals.
Measures: None described beyond eventual assignment/receivership.
Newspaper Excerpt: for several days there has been a feeling of distrust among its depositors, and a run on the bank soon demonstrated the futility of holding out against the adverse situation.
Source: newspapers

2. January 28, 1896 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank made an assignment (suspended operations) following depositor distrust and the cashier's failure/assignment.
Newspaper Excerpt: the Northeastern Savings and Deposit Bank ... made an assignment to Thos. P. Woodward January 28, 1896
Source: newspapers

3. January 29, 1896 Receivership

Newspaper Excerpt: Thomas P. Woodward was today appointed receiver of that institution. ... the cause of the action taken is that for several days there has been a feeling of distrust among its depositors, and a run on the bank ... Primarily the cause of the failure was the assignment of the cashier, Mr. Joseph Hillman . . . .
Source: newspapers

Newspaper Articles (8)

1. January 29, 1896 Evening Star Washington, DC

Article from Evening Star, January 29, 1896

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Article Text

THE NORTHEASTERN BANK FAILS. Thomas P. Woodward Appointed Receiver to Pay Off All Claims. Upon the petition of President Engel, Vice President Appleman and Cashier Tillman, acting for the board of directors of the Northeastern Savings and Deposit Bank, Thomas P. Woodward was today appointed receiver of that institution. The Northeastern Savings Bank is located at the corner of 2d and H streets northwest. It is a new organization, its operations were not extensive and other banks will be involved. The cause of the action taken is that for several days there has been a feeling of distrust among its depositors, and a run on the bank soon demonstrated the futility of holding out against the adverse situation. Primarily the cause of the failure was the(assignment of the cashier, Mr. Joseph Hillmans His failure in no way involved the banki yet the moral effect on the minds of the/depositors was the same as if the bank had been affected. William A. Engel, president of the bank, is the lecal manager of the Pabst Brewing Company of Milwaukee. wMr. Hillman is well known in the meat trade. One of the directors of the bank, is. Andrew Gleeson, who was yesterday elected delegate to the republican national convention. In a statement today Mr.6 Engel said the receiver would wind up the affairs of the bank and pay the depositors in full. If the assets did not hold out. heasaid, the stockholders would go down : in their pockets and pay the last dollar due.

2. January 30, 1896 The Morning Times Washington, DC

Article from The Morning Times, January 30, 1896

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Article Text

Mr. Hillman's Statement. Editor Times: The article in last evening's Times regarding the affairs of the Northeastern Savings and Deposit Bank is wrong in the particular that it connects me with the failure. I was with the concern only a few weeks at the start and resigned early in October, 1895, and have since had no official connection with it. Furthermore the failure of Hillman & Co. took place since the suspension of the bank, they making an assignment only on January 29, at 2 p. m. Hillman & Co. have filed a list of their creditors and the Northeastern Savings and Deposit Bank is not among them. JOEL HILLMAN.

3. April 9, 1896 The Evening Times Washington, DC

Article from The Evening Times, April 9, 1896

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Article Text

# Receiver for the Bank Asked. Thomas P. Woodward, assignee of the Northeastern Savings and Deposit Bank, brought suit against the bank and eight stockholders today, asking for the appointment of a receiver to take charge of the assets of the corporation, and that an auditor may be eventually appointed to inquire into the solvency of the stockholders. The case was set for hearing by Judge Cox next Tuesday.

4. April 9, 1896 Evening Star Washington, DC

Article from Evening Star, April 9, 1896

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Article Text

A Receiver Wanted. A suit in equity asking the appointment of a receiver to take charge of the assets of the Northeastern Savings and Deposit Bank and for an auditor to inquire into the solvency of the stockholders was filed today by Thomas P. Woodward, assignee of the corporation, against Wilbour F. Sadler, J. Lewis Sadler, Alpheus R. Appleman, Anthony Lulley, William A. Engel, Andrew Gleeson, Joel Hillman and James L. Pugh. jr. The matter will be argued before Judge Cox April 14. 81699 16

5. November 6, 1896 Evening Star Washington, DC

Article from Evening Star, November 6, 1896

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Article Text

NORTHEASTERN BANK. Creditors Ask for the Appointment of a Receiver. To enforce a judgment of $604.95, recovered by him against the Northeastern SavIngs and Deposit Bank, William Smith has filed a bill in equity against Wilbur F. and Lewis S. Sadler, Alpheus R. Appleman, Anthony Lulley, Wm. A. Engel, Andrew Gleason, Joel Hillman, James L. Pagh, jr., stockholders, and Thomas P. Woodward. The complainant alleges that the Northeastern Savings and Deposit Bank made an assignment to Thos. P. Woodward January 28, 1896, but claims that the assignment is null and void. He says $3,551.46 were due the depositors, and the assets were $1,652.99, a portion of which has been collected by the assignee, no part of which, 10 is charged, has been paid to creditors. It is also charged that only $375 of the capital stock of the bank of $50,000 was ever paid in, and the amounts subscribed by the various defendants other than the assignee (Woodward) are recited. The complainant states that the assets are insufficient to pay the creditors of the corporation, and charges that its affairs are in such a condition that in his opinion the most suitable and best way to administer and marshal the assets of the corporation is in a court of equity. Therefore he asks that a receiver be appointed for the bank and that the assign ee be directed to account for the assets in his hands; that the latter turn the same over to the receiver; that the cause be referred to the auditor to state an account and the liability of the stockholders; that the amount due by stockholders be declared a trust fund to pay its debts, and that they be jointly and severally decreed to pay such amounts. The petition was presented to Judge Cox, who directed that the defendants show cause November 16 why a receiver should not be appointed. Attorneys D. W. Baker and Henry R. Earle represent the complainant.

6. November 6, 1896 The Evening Times Washington, DC

Article from The Evening Times, November 6, 1896

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Article Text

SUIT AGAINST A BANK. Litigation Over the Assignment of the Northeast Concern. William Smith, by D. W. Baker, his counsel, filed a suit today against the Northeastern Savings and Deposit Bank, and Thomas P. Woodward, assignee. The plaintiff asked for a receiver for the concern and the recovery of $604.95, which he claims is due him on a judgment, in a suit-at-lawlastmonth. Last January the bank, at No. 117 H street northwest, made- an assignment to Thomas P. Woodward. This, Mr. Smith claims, is null and void. The following stockholders and directors have also been made defendants: Andrew Gleeson, Wilbur F. Sadler, Lewis S. Sadler. Alpheus R. Appleman, Anthony Lully, William A. Engel, Joel Hillman, and James L. Pugh. jr. He asks that Mr. Woodward be made to account for the moneys collected by him and alleges that at the time the bank failed its assets were placed at $1,652.99. Mr. Smith petitions for a receiver.

7. February 17, 1897 Evening Star Washington, DC

Article from Evening Star, February 17, 1897

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Article Text

ANGRY DEPOSITORS. Meeting Held to Discuss Bringing Suits Against Bank Directors. The depositors in the Northeastern Savings and Deposit Bank, which failed a year ago, met last night at 107 G street northwest to take action looking to a'prosecution of the directors of the bank. There was not a large attendance, but the situation was thoroughly discussed. Mr. M. A. Quinn and Mr. A. C. Tansley stated that when the bank opened its doors in September, 1895, at the corner of 2d and H streets northwest, it announced its paid-up capital to be $50,000, when. as a matter of fact, it was then practically insolvent, having but $375 as its reserve fund. The bank continued in business about three months. closing out in January, 1896, with about $3,000 of the funds of the depositors in its safe. Several depositors brought suit to recover their deposits. The bank went into the hands of D. W. Baker, as receiver. and recently a circular was sent to depositors, offering fifty cents on the dollar. The delay has wearied the depositors, and it is now proposed to unite and take the matter into the courts.

8. February 17, 1897 The Morning Times Washington, DC

Article from The Morning Times, February 17, 1897

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Article Text

DEPOSITORS ALLEGE FRAUD A New Charge in the Northeast Bank Failure. A Proposition Was Made Last Night to Prosecute the Directors for Embezzlement, A meeting of those who had money on deposit with the defunct Northeastern Savings and Deposit Bank was held last night at No. 107 G street northwest to take steps looking to the prosecution of the directors of the institution upon the charge of embezzlement. Owing to the limited notice given there was but a small attendance, but those who were present were outspoken in the demand for immediate action, either to compel the restitution of their money or punish those responsible for the loss. It was represented by Mr. M. A. Quinn and Mr. A. C. Tansley that when the bank opened its doors in September, 1895, at the corner of Second and H streets northwest, it announced its paid up capital to be $50,000, when, as a matter of fact, it was then insolvent practically, having but $375 as its reserve fund. The bank continued in business about three months, closing out in January, 1896, with about $3,000 of the funds of the depositors in its safe. Among the depositors were several, including Messrs. Quinn and Tansley, and an ex-soldier named Smith. who- brought suit to recover the amounts due them, but meanwhile, the bank went into the hands of Attorney D. W. Baker, as receiver, and not long ago a circular was issued offering all claimants 50 cents on the dollar .n liquidation of the several amounts due. The depositors have grown weary of the delay. They say the money was obtained from them by false representations, and they propose to seek justice by the most direct plan that presents itself. It was alleged last night that one depositor. a widow named Patton, placed $800 in the bank, and lost it all. As a result, she had to leave her home and live with her friends. It is said she has nothing left, and is almost frantic over the loss. The names of the directors as given last night are W. A. Engel, Joel Hillman, Andrew Gleeson, W. F. Sadler, and a man named Lulley, with others, all of whom, it isalleged, were men whose names were sufficient at the time the bank was started, to gain the confidence of the citizens, and the institution was patronized upon thestrength of the combination and because it promised to be a great convenience The depositors now propose, they say, to test all the law they can bring to bear on the case.