21623. Virginia Safe Deposit and Trust Corporation (Lovingston branch) (Lovingston, VA)

Bank Information

Episode Type
Suspension → Run → Closure
Bank Type
state
Start Date
December 29, 1910
Location
Lovingston, Virginia (37.760, -78.871)

Metadata

Model
gpt-5-mini
Short Digest
135094dd

Response Measures

Accommodated withdrawals, Full suspension

Other: Receivers were appointed for the parent Virginia Safe Deposit and Trust Corporation (Alexandria); branch cashiers paid out deposits after being instructed to close, leading to court suits to compel return of withdrawn funds.

Description

The parent Virginia Safe Deposit and Trust Corporation (Alexandria) went into receivership (decided December 29, 1910). Upon that news the Lovingston branch paid out deposits (withdrawals by depositors and the cashier favoring certain customers). The sequence is: suspension/receivership of the institution, immediate withdrawals at the Lovingston branch, and litigation to recover amounts. The failed corporation did not resume normal operations; receivership proceedings continued. Dates are taken from articles (receivers appointed Dec 29, 1910).

Events (3)
1. December 29, 1910 Receivership
Newspaper Excerpt
the recent failure of the Virginia Safe Deposit and Trust Corporation, of Alexandria...receivership proceedings are pending; ... telegram ... stating that receivers for the bank had been appointed, and that business must be suspended; after the alleged defalcation of C. J. Rixey, the president, a telegram was sent Camden at Lovingston to close his branch. The message was telephoned ... to Camden.
Source
newspapers
2. December 29, 1910 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors (and the branch cashier) withdrew funds immediately after learning that receivers had been appointed for the parent corporation; withdrawals included large certificates of deposit.
Measures
Cashier R. Lee Camden honored withdrawal requests (paid certificates of deposit) despite instruction to close; later receivers sought recovery of amounts and courts ordered refunds or contempt penalties.
Newspaper Excerpt
the drawing out of sums of money on deposit by prominent parties after the doors of the local branch had been ordered closed; ... I received a telegram ... receivers for the bank had been appointed, and that business must be suspended. In two or three minutes Mr. E. L. Kidd ... urged that I cash for his wife a certificate of deposit for about $2,200.
Source
newspapers
3. December 29, 1910 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Appointment of receivers for the Virginia Safe Deposit and Trust Corporation after alleged defalcation of president C. J. Rixey; the institution was placed in receivership and told branches to suspend operations.
Newspaper Excerpt
About 10:40 A. M., December 29, 1910, I received a telegram by 'phone from Shipman, stating that receivers for the bank had been appointed, and that business must be suspended.
Source
newspapers

Newspaper Articles (10)
1. June 26, 1911 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 26, 1911

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ECHO OF FAILURE INNELSONPOLITICS Collapse of Alexandria Bank Figures in County Campaign. VOTERS DIVIDED ON ISSUE May Have Effect on County Treasurership and Commonwealth's Attorney. Myndus, Va., June 25.-Rising like a weird spectre from the grave, the recent failure of the Virginia Safe Deposit and Trust Corporation, of Alexandria, one of whose branch banks was in this county, has entered the field of local politics, surcharging the atmosphere with sensations, and haunting by day and by night some of those who aspire to public office in the coming November election. It has divided the voters of Nelson into partisan factions over the treasurership, and is being freely discussed in connection with the fight for Commonwealth's Attorney. It has injected a spirit of bitterness into the Nelson campaign, which has brought it almost as strikingly into the limelight as the Keezell-Williamson contest, in Rockingham, and the voters far and near are discussing its probable effect upon the final outcome. Full of Human Interest. The story bristles with human interest, for it involves transactions which took place in the excitement incident to the first Intimation that the concern had failed; the drawing out of sums of money on deposit by prominent parties after the doors of the local branch had been ordered closed; the criticism of the cashier, who is now a candidate for County Treasurer, for permitting the withdrawals; a defense of his action in a public card, and, finally, the entering of an order by Judge Barley, in the Corporation Court of the city of Alexandria, where receivership proceedings are pending, requiring all deposits withdrawn to be refunded within ten days, or the bringing of the delinquents before his court for contempt. Cashier's Statement. The public was enlightened as to the inside facts by a signed statement given out and widely circulated by R. Lee Camden, who was the cashier of the Lovingston branch of the defunct corporation, and who is now one of the candidates for County Treasurer. In this card Mr. Camden says: "It has been charged that, upon learning of the appointment of a receiver for the bank, I immediately withdrew my own funds, as well as those of my friends and relatives. "The whole truth in this connection is as follows: About 10:40 A. M., December 29, 1910, I received a telegram by 'phone from Shipman, stating that receivers for the bank had been appointed, and that business must he suspended. "In two or three minutes Mr. E. L. Kidd, who at his 'phone in the clerk's office had heard the telegram being delivered to me, came into the bank. As soon as the first shock of the calamity was over, Mr. Kidd, saying that he would not ask for his own monev urged that cash for his wife

2. June 27, 1911 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, June 27, 1911

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ECHO OF FAILURE OF TRUST CORPORATION Incidents in Connection with the Defunct Institution Precipitates - Political Issue in Neison County. Rising like a weird spectre from th grave, the recent failure of the Virginia Safe Deposit and Trust Corporation o Alexandria. one of whose branch bank was in Nelson county, has entered the field of local polities, surcharging the atmosphere with sensations and baunt ing by day and by night some of those who aspire to public office in the com ing November election. It has divided the voters of Nelson county into partisan factions over the treasurership, and is being freely dis cussed in connection with the fight for commonwealth's attorney. The story bristles with human in terest, for it involves transactions which took place in the excitement incident to the first intimation that the concern had failed; the drawing out of sums of money on deposit by prominent parties after the doors of the local branch had been ordered closed; the criticism of the cashier, who is now a candidate for county treasurer for permitting the withdrawals; a defense of his action in a public card, and finally the entering of an order by Judge Barley in the corporation court of the city of Alexandria, where receivership proceedings are pending, requiring all deposits withdrawn to be refunded within ten days, or the bringing of the delinquent before his court for contempt. The public was enlightened as to the facts by a signed statement given out and widely circulated by R. Lee Camden, who was the cashier of the Lovingston branch of the defunct corporation, and who is now one of the candidates for county treasurer. In this card Mr. Caniden says: "It has been charged that, upon learning of the appointment of a receiver for the bank, I immediately withdrew my own funds, as well as those of my friends and relatives. "The whole truth in this connecnection is as follows: About 10:40 a. m., December 29, 1910, ] received a telegram by 'phone from Shipman, stating that receivers for the bank had been appointed, and that business must be suspended. "In two or three minutes, Mr. E. L. Kidd, who at his 'phone in the clerk's office had heard the telegram being delivered to me. came into the- bank. "As soon as the first shock of the calamity was over, Mr. Kidd, saying that he would not ask for his own money, urged that I cash for his wife a certificate of deposit for about $2,200. representing that it was the savings of her life time, the fruits of hard work that the lost of

3. July 12, 1911 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, July 12, 1911

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DENY JURISDICTION. Attorneys for Lovingston Branch Depositors Claim Court Erred In Appointing Receivers. This morning was the-date set for the hearing of the rule issued by the Corporation Court against the depositors of the Lovingston branch of the Virginia Safe Deposit and Trust Corporation to show reasons why they should not be judged in contempt of court for failing to return to the receivers of the defunet institution the money which was withdrawn by them fter the receivers had been appointed. Owing to another trial the hearing was postponed this afternoon. The defendants were represented by Attorneys J. T. Coleman and V. I. Long, of Lynchburg, the receivers by Judge J. K. M. Norton, and the depositors and the commonwealth by Samuel G. Brent. The attorneys for the defendants acknowleged having received the money but refused to return same on the grounds that the court was without jurisdiction. Mr. Coleman commenced an exhaustive argument at two o'clock, going into the whole question of the failure and the methods by which the affairs of corporation could be wound up. His principal argument was that a court of equity could not wind up the affairs of a corporation unless one fourth of the stockholders entered srit for its dissolvement. In the Trust Company case he stated that the directors only held one sixteenth of the capital stock of the corporation and that the court therefore had no right to appoint receivers upon their petition. At four o'clock Mr. Coleman had not completed his argument.

4. July 12, 1911 The Washington Herald Washington, DC
Article from The Washington Herald, July 12, 1911

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NEWS OF ALEXANDRIA # Meeting of City Council Is Marked by Lot of Talk. LITTLE BUSINESS TRANSACTED Mayor Empowered to Let Contract for Laying of Gas Mains in Rosemont-The Commonwealth Contends Company Has No Right to Deliver Product in the City. Alexandria, Va., July 11.-The meeting of the city council to-night was marked by a lot of talk and the transaction of little business. All this talk was brought about when an ordinance providing for the grading and paving of Washington street, between King and Cameron streets, with vitrified brick and the narrowing of the said street, came up for disposal. It provides that the work be done when the abutting property owners pay into the city treasury one-sixth of the cost of the work. Councilman Williams, after the reading of the ordinance and a brief discussion on the part of others, wanted the resolution referred back to a committee and also wanted a legal opinion as to the right to narrow the street. Councilman Brockett also wanted action deferred, arguing that if all of the ordinances similar to the one presented which were to follow, would pass it would virtually mean that no work would be done, he being of the opinion that all the property owners would not be willing to pay their proportion of the cost. After the members got through talking the opposition of Messrs. Williams and Erockett did not avail, and each similar ordinance was lost by a vote of 11 to 2. Considerable surprise was expressed by some members at their voting against the resolutions for the improvements inasmuch as both have fostered improvements, and especially being warm supporters for streets since their recent induction into the city council. At times there were some little tilts over their opposition which were quickly brushed aside by the heavy opposition to them in the matter when it come to taking a vote. Finally an ordinance was passed, with certain features stricken out, empowering the mayor to enter into a contract with the Rosemont Development Company for the laying of gas mains to the subdivision of that company. The sum of $450 was appropriated for the construction of a sewer on Alfred street from Wilkes to Gibbon streets. The sum of $1,000 was appropriated for a sewer on Royal street from Cameron to Princess streets, when the sum of $300 is placed by the property owners in the city treasury. Other routine business was also disposed of. "Has the Arlington Brewing Company, whose plant is located at Rosslyn, Alexandria County, a no-license territory, the right to dispose of its products in this city other than by a common carrier?" This question came up at a special hearing this morning before Police Justice H. B. Caton in the nature of a test case. The case was made out against an agent of the company in this city for the purpose of trying the law on the subject, a State's warrant being sworn out by Commonwealth's Attorney Brent. When the case was called by agreement of attorneys the warrant was changed, making the brewing company the defendant instead of the agent. After hearing the argument on both sides Justice Caton announced he would give a written opinion in the case at a future date. It was contended by Commonwealth's Attorney Brent that the company, in his opinion, has no right to deliver its products here other than by common carrier. The case against certain depositors in the Lovingston branch of the defunct Virginia Safe Deposit and Trust Corporation, who are alleged to have withdrawn deposits from that branch after the bank went into the hands of receivers, is slated to be heard in the Corporation Court to-morrow. The total amount involved is $2,193.33. It is said that this will be turned over to the receivers of the concern, thereby ending the proposed litigation. Plans are being prepared by City Engineer Dunn for the erection of a brick building east of the truck house of the relief company, where will be kept a reserve fire engine and other reserve apparatus. As the result of a blow-out of an injector of an engine at the Southern Railway roundhouse yesterday, Engineer Charles M. Bruin, who lives in Duke street extended, suffered burns about the face and neck.

5. July 19, 1911 The Washington Herald Washington, DC
Article from The Washington Herald, July 19, 1911

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NEWSOFALEXANDRIA City Council's Orators Sit in Eloquent Session. NO SUMMER RECESS WANTED Ordinances for Street Improvements Passed-T. Moxley Ervin Elected Member of School Board-Kidd Deposit Goes to Receivers-Baseball Player Injured-Dog Catchers Busy. Alexandria, Va., July 18.-Oratory flowed as freely as water running down hill at the meeting of city council tonight. Eight out of the twelve present voted down a resolution for the annual summer recess. All of the talk was precipitated by three resolutions for the improvement of Cameron street, from Royal to Washington streets, a distance of three squares. All of the ordinances were passed except one for the improvement of Cameron street between Royal and Pitt streets. A joint session of the boards was afterward held and T. Moxley Ervin was elected a member eof the school board to fill the vacancy caused by the resignation of G. William Ramsay, of the Second ward. The light committee reported favorably for the extension of gas mains on Henry street from Wilkes to Gibbon street. An adverse report was made by the committee for an improved gas lamp at Fairfax and Princess streets. A bill of W. B. Pullen for $17.99 for groceries furnished to the city through the health department was referred to the finance committee. The sum of $125 was appropriated for the construction of a sewer on Alfred street, near Prince street. In the Corporation Court to-day, Judge Barley announced that he had sustained the rule issued by the court in the case of T. J. Fannon and others against E. L. Kidd and others, of Lovingston, Nelson County, Va. The sum of $2,193.33, alleged to have been on deposit in the Lovingston branch of the defunct Virginia Safe Deposit and Trust Corporation in the name of F. H. Kidd, alleged to have been withdrawn after the appointment of receivers for the concern, must be turned over to the receivers. Decrees were entered in the Corporation Court to-day as follows: Robert W. Milder against G. L. Boothe, administrator of Francis A. Miller and others, confirming sale of property at the northeast corner of Prince and Lee streets to Mrs. Anna N. Rogers; in the case of Sarah Tyler against Lucy Tyler, confirming sale of house and lot on the west side of St. Asaph street, between Gibbon and Franklin streets, to Charles H. Davis; in the case of S. C. Swain against B. H. Swain and others, decree for sale of real estate and appointing Douglas Stuart special commissioner; Albert B. Marshall against Robert G. Smith and others, cause recommitted to G. W. Lewis, special commissioner, for report. Edward H. Kemper, jr., son of E. H. Kemper, auditor of the Southern Railway Company, of the Alexandria baseball club, was injured in a collision on the field with another player. The city dog wagon started out on its annual rounds this afternoon gathering up unlicensed dogs. A number were captured and taken to the city pound near the gas works. If not called for they will be put to death by gas. James J. Campbell, a District prisoner, serving a four months' sentence in the workhouse at Occoquan, Va., who escaped from that institution yesterday, was arrested here to-day by Policemen Wilkerson and Ferguson and turned over to the District authorities. The board of police commissioners will hold a meeting at 7:30 o'clock tomorrow night for the purpose of filling two vacancies on the force. J. T. Preston, secretary of the Retail Merchants' Association, left to-night for Hampton, Va., to attend the annual meeting of that body.

6. September 13, 1911 The Times Dispatch Richmond, VA
Article from The Times Dispatch, September 13, 1911

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WITHDREW MONEY WHEN BANK FAILED Appeal Allowed Parties Sentenced to Jail for Contempt of Court. TRIGG CASE APPEALED AGAIN United States Dissatisfied With Latest Decision-Tax Case in Court. Vigorous protest against being sent to jail for contempt of court because of failure to return deposits withdrawn from a bank just before it closed its doors, is contained in the petition to the Supreme Court of E. L. Kidd and Mrs. F. H. Kidd. An appeal was allowed yesterday. The bank involved was the Lovingston branch of the Virginia Safe Deposit and Trust Corporation, of Alexandria. According to Kidd's story, he overheard a telephone message in transmission between R. L. Camden, cashier of the branch, and one Roberts, station agent. The latter had heard of the impending trouble through the telegraph message sent to Camden by the receivers, Instructing him to close the bank. Roberts was pleading to be allowed to cash some checks. Kidd says he heard Roberts asking Camden to honor a check from Stuart Whitehead. the Commonwealth's Attorney of Nelson county, and knowing that Whitehead's check was good, he concluded that something was wrong with the bank. Cashier Was Kind. He then went to Camden, who agreed to allow him to cash two certificates of deposit in the name of Mrs. Kidd. amounting to $2,193.33. Camden was equally kind to others, although he had been instructed to close the bank. with the result that he sent to the receivers only $114. Suit was brought to compel the re. fund of these amounts, and the court ordered the Kidds to reimburse the bank and its creditors within thirty days or be placed in jall until it was paid. The appeal stops this part of the proceeding. In the petition the Kidds claim that they are entitled to trial by jury in Nelson for recovery of the money, instead of through contempt proceedings in Alexandria. Trigg Company Again. Once more does the apparently endless litigation over the settlement of the 1 affairs of the William R. Trigg Com1 pany, yet into the Supreme Court. I The court yesterday granted an aDpeal to the United States of America t the William R. Trigg Com-

7. September 13, 1911 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 13, 1911

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APPEAL IS ALLOWED. Supreme Grants Right to Depositors of Lovingston Branch. Vigorous protest against being sent to jail for contempt of court because of failure to return deposits withdrawn from a bank just before it closed its doors, is contained in the petition to the Supreme Court of E. L. Kidd and Mrs. F. H. Kidd. An appeal was allowed yesterday. The bank involved was the Lovingston branch of the Virginia Safe Deposit and Trust Corporation, of Alexandria. According to Kidd's story, he overhead a telephone message in transmission between R. L. Camden, cashier of the branch, and one Roberts, station agent. The latter had heard of the impending/trouble through the telegraph message sent to Camden by the receivers, instructing him to close the bank. Roberts was pleading to be allowed to cash some checks. Kidd says he heard Roberts asking Camden to honor a check from Stuart Whitehead, the Commonwealth's Attorney of Nelson county, and knowing that Whitebead's check was good, he concluded that something was wrong with the bank. He then went to Camden, who agreed to allow him to cash two certificates of deposit in the name of Mrs. Kidd, amounting to $2,193.33. Camden was equally kind to others, although he had been instructed to close the bank, with the result that he sent to the receivers only $I14. Suit was brought to compel the refund of these amounts, and the court ordered the Kidds to reimburse the bank and its creditors within thirty days or be placed in jail until it was paid. The appeal stops this part of the proceeding. In the petition the Kidds claim that they are entitled to trial by jury in Nelson for recovery of the money, instead of through contempt proceedings in Alexandria.

8. September 14, 1911 The Washington Times Washington, DC
Article from The Washington Times, September 14, 1911

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WASHINGTON TIMES BUREAU: ALEXANDRIA, VA., SEPT. 14. While admitting his guilt of the theft of $18 from the fruit store of Heon & Constantinople yesterday afternoon, his story of lack of work succeeded in obtaining a comparatively light sentence for Charles R. Harris, when arraigned in police court this morning. Harris, who is about twenty-three years of age, formerly lived in Alexandria, but for the last two years has resided in Georgetown. Harris was given a sentence of two months in jail. An appeal has been allowed by the State court of appeals in the case of E. L. Kidd and others, against whom suit was made by the receivers for the Virginia Safe Deposit and Trust Corporation. Kidd had an account amounting to about.$2,000 in the Lovingston, Va., branch of the concern, and overhearing a telephone message to the effect that the bank had been placed in the hands of receivers, withdrew his account before the branch had been closed. Judge Louis C. Barley, in corporation court here, ordered that the amount be refunded within thirty days, under penalty of contempt proceedings. The appeal, however, forestalls this action. This is the first appeal from the decisions of Judge Barley in the matter of the defunct corporation to be allowed by the Court of Appeals. Apparently contented with her new surroundings, little Elizabeth, "the child of mystery," is now in the care of Mrs. Mary Matthews, at the Children's Hospital, who was yesterday appointed her guardian by Judge Barley. Recently the discovery was made that the little blue eyed, flaxen haired tot, was in the custody of Ida Dogan, a colored woman, and while well cared for, it was deemed best to take steps toward the appointment of a guardian. When the Dogan woman appeared in corporation court she steadfastly refused to disclose the identity of the mother, stating that she had sworn an oath not to do so. Money was forthcoming each week for its care, she said. After Judge Barley had talk-

9. March 21, 1912 The Washington Times Washington, DC
Article from The Washington Times, March 21, 1912

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In the State court of appeals today the case of the Virginia Safe Deposit and Trust Corporation against E. L. Kidd and others is being heard, based on a contempt charge of the local corporation court. It is alleged that Kidd, who was a depositor in the Lovingston branch of the banking institution, learning that the concern had been placed in the hands of receivers, withdrew his deposit before the doors of the Lovingston branch had been closed. Judge Barley, of the corporation court, decided that Kidd must return the money, about $2,000, and, failing to do SO, adjudged him in contempt. It was decided to leave the matter to the 811preme court of appeals. Miss Ruth V. Henderson and William N. Harper were married by the Rev. W. F. Watson. at the home of the bride's sister. Mrs. Robert M. Graham, yesterday afternoon. Upon their return from a Northern trip, they will live here. The board of aldermen, in special session yesterday afternoon, referred the resolution recently introduced in the lower body, providing for the appropriation of $15,000, to be used in defraving current expenses. to the committee on finance.

10. January 24, 1913 The Times Dispatch Richmond, VA
Article from The Times Dispatch, January 24, 1913

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HEARDOFFAILURE OVER TELEPHONE Bank Manager Favored Depositor and Got in Trouble-Supreme Court Cases. Overhearing a telephone conversation, a depositor in the Lovingston Branch of the Virginia Safe Deposit and Trust Corporation, of Alexandria, learned of the danger his deposit was in, and prevailed upon the manager to favor him over all other creditors of the institution and allow him to withdraw his funds before the doors were closed. Whereupon proceedings were begun for recovery and for contempt of court. The judge gave the depositor and the manager a certain number of days to refund the amount, or in default to go to jail. An appeal from this decision was argued yesterday. The petitioner was R. Lee Camden, manager of the Lovingston bank, who seeks to have the judgment set aside. On the day the Alexandria institution went into the hands of receivers, after the alleged defalcation of C. J. Rixey, the president, a telegram was sent Camden at Lovingston to close his branch. The message was telephoned from the railroad station to Camden. E. L. Kidd overheard part ofit, and, concluding something was wrong, implored Camden to. pay the deposit of his wife, Mrs. F. H. Kidd, before closing. This Camden did, paying over the sum of $2,199.33. He is now ordered to pay 1t. back or go to jail. In the argument yesterday it was complained that the court sought by threatened imprisonment to force the collection of a claim. The case was argued by A. R. Long for Camden and by S. G. Brent for the receivers. and submitted. Miller vs. Norton & Smith, receivers, was argued by E. E. Gibson for the appellant and by S. G. Brent for the appellees, and submitted. Holladay vs. Moore was passed to the March term. J. B. King & Co. VS. C. W. Hancock & Sons was argued by Kenneth S, Jones for the appellant and by A. R. Long for the appellee, and submitted. Penn et als. vs. Tucker et als. was submitted on briefs. Next cases to be called: Hall's administrator V8. White: City of Richmond ve. Sutherland; Southern Railway Company VS. Baptist : Hardyetal. vs. Coley et als.