21848. Savings Bank of True Reformers (Richmond, VA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 27, 1910
Location: Richmond, Virginia (37.554, -77.460)

Metadata

Model: gpt-5-mini
Short Digest: 015f4ec7

Response Measures

None

Description

No run is described in the articles. The Savings Bank of True Reformers applied for a receiver (receivership) in late October 1910 and the insurance license of the allied order was suspended because of gross mismanagement and inability to pay claims. Multiple reports indicate the bank went into receivership and is unlikely to reopen; later reporting (May 1911) discusses receivers' contention and possible permanent winding up. Bank type is 'unknown' — a savings bank but not explicitly 'state' or 'national'.

Events (3)

1. October 27, 1910 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Gross mismanagement and insolvency: unable to honor checks and insurance claims; large related-party loans and mixed bookkeeping with the fraternal order led to failure.
Newspaper Excerpt: The Savings Bank of True Reformers has applied for a receiver in the chancery court of Richmond.
Source: newspapers

2. October 29, 1910 Other

Newspaper Excerpt: TRUE REFORMERS' LICENSE SUSPENDED ... The Savings Bank of True Reformers, an allied institution, has applied for a receiver ... Gross Mismanagement Charged.
Source: newspapers

3. May 26, 1911 Other

Newspaper Excerpt: In the event of confirmation by the Chancery Court of the contention of the receivers of the Savings Bank of True Reformers ... the True Reformers as a fraternal beneficiary society would be compelled to go out of business permanently.
Source: newspapers

Newspaper Articles (9)

1. October 27, 1910 The Times Dispatch Richmond, VA

Article from The Times Dispatch, October 27, 1910

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TRUE REFORMERS INVOLVED IN RUIN (Continued From First Page.) prises as three branches of the same concern. Can't Pay Claims. As to the insurance order itself, It has been found in the examination just made by the Bureau of Insurance that the bank is holding $57,000 worth of checks drawn by the order to pay insurance claims, which the bank has been unable to honor. In addition, 30 far as can be learned, the True Reformers owe other unpaid claims to the amount of $120,000. The figures given above indicate clearly that it could pay these without the slightest trouble If it could use the money which belongs to it in the bank. But when the bank's affairs are wound up by the receiver the salvage may or may, not be sumcient to pay off the insurance order's debts. If it is. the order may yet get on its feet by pocketing its losses, which are certain to be heavy, by DFOceeding to do business on its current income, and by forever eschewing all combinations of any sort with any other kind of business enterprise whatever. The application for a receiver for the Savings Bank of True Reformers was made by the order. As it 18 all in the family, with the same officers and the same interests, there was no resistance. Judge Daniel Grinnan at once appointed William A. Moncure, 05. the law firm of Smith, Moncure & Gordo:. counsel for the order, as receiver. He gave bond at once in the sum of $50,000, with the Virginia Trust Company as surety. and began an inventory of the property of the institution. Was Popular Order. For nearly thirty years the True Reformers has held a leading place in the admiration and affection of the colored people of this part of the country. Its home office, with its bank and its printing office, are located on Second Street near Leigh, in Richmond. Only a few weeks ago the biennial session of the Grand Fountain was held here, at which time, on demand of the Bureau of Insurance, W. L. Taylor was ousted from the presidency and A. W. Homes was elected It his place. It was hoped at that time that the order would be placed on a sounder basis, but the real condition of affairs in the bank was not then known and has apparently precluded such a happy issue out of all its troubles. The order's success was phenomenal from the start. Thousands of members flocked to its standard, and there are now nearly 2,500 subordinate lodges scattered over the Southern and Middle States and in the Middle West. In 1888 the Savings Bank was chartered. Stock was subscribed to by individual members of the order. The charter of the bank provides that its board of directors shall be the board of directors of the True Reformers. Stock was sold on the condition that at the death of the stockholder it should revert to the bank, and no provision was made for its reissuance. Checks Held Up. For some time complaints have been coming to the Bureau of Insurance as to the non-payment of insurance claims by the True Reformers. As long as a year ago officials of the department warned the officers of the allied institutions that unless they dropped the bank it would sooner or later involve the entire enterprise in disaster. But nothing was done. However, last hys

2. October 29, 1910 The Washington Times Washington, DC

Article from The Washington Times, October 29, 1910

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TRUE REFORMERS' LICENSE SUSPENDED Acting Superintendent of Insurance Acts Against Negro Association. Following similar action on the part of the Bureau of Insurance of Virginia, Daniel Curry, Acting Superintendent of Insurance, today suspended the license to transact business in the District of the United Order of True Reformers, the largest colored insurance association in the world. The troubles of the True Reformers originated in Richmond, Va. The Savings Bank of True Reformers, an allied institution, has applied for a receiver in the chancery court of Richmond. The action was forced, it is said, by an order issued by the Bureau of Insurance, requiring the True Reformers to appear and show cause why the license to do business should not be revoked. Gross Mismanagement Charged. The order of suspension issued by the Virginia authorities sets forth that action was taken "on account of gross mismanagement, not criminal negligence, of the present and former management in guarding the funds." On receipt of this information, Acting Supertendent Curry forwarded the following telegram to the Grand Fountain of United Order of True Reformers at Richmond, Va. "This is to notify you that the license of the Grand Fountain United Order of True Reformers to transact business in the District of Columbia as a fraternal beneficial association, is suspended pending restoration of your license by the Bureau of Insurance of Virginia. You must theretore cease transacting business for said corporation in the District of Columbia, and you will understand that you must not under any circum-

3. October 29, 1910 Richmond Planet Richmond, VA

Article from Richmond Planet, October 29, 1910

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AN INTERESTING REPORT No event which might have befallen the colored race in America could have produced a more profound shock or could be more far-reaching in its effects than the suspension of the license of the Grand Fountain, U. O. of True Reformers, which was done yesterday afternon by the Bureau of Insurance of Virginia. The True Reformers is at once the largest, the most prominent, and has hitherto been regarded as the most successful of all the colored secret societies in the world, around whose existence so much of the activity of the race centres. This big financial and fraternal organization was brought to its fall by the crash of the Savings Bank of True Reformers, an allied Institution, which yesterday applied for a receiver in the Chancery Court of the city of Richmond. The crisis was forced by an order issued on Tuesday by the Bureau of Insurance requiring the True Reformers' officers to appear this morning at 10 o'clock to show cause why its license to do business should not be revoked.

4. October 29, 1910 Richmond Planet Richmond, VA

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CAN'T PAY CLAIMS. As to the insurance order itself, it has been found in the examination just made by the Bureau of Insurance that the bank is holding $57,000 worth of checks drawn by the order to pay insurance claims, which the bank has been unable to honor. In addition so far as can be learned the True Reformers owe other unpaid claims to the amount of $120,000. The figures given above indicate clearly that it could pay these with. out the slightest trouble if it could use the money which belongs to it in the bank. But when the bank's affairs are wound up by the receiver the salvage may or may not be sufficient to pay off the insurance order's debts. If it is, the order may yet get on its feet by pocketing its losses, which are certain to be heavy, by proceeding to do business on its current income, and by forever eschewing all combinations of any sort with any other kind of business enterprise whatever. The application for a receiver for the Savings Bank of True Reformers was made by the order. As it is all in the family, with the same officers and the same interests, there was no resistance. Judge Daniel Grinnan at once appointed William A. Moncure, of the law firm of Smith, Moncure and Gordon, counsel for the order, as receiver. He gave bond at once in the sum of $50,000. with the Virgin ia Trust Company as surety and be gan an inventory of the property of the institution.

5. November 3, 1910 The Advocate Charleston, WV

Article from The Advocate, November 3, 1910

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AND OFFICIALS ARE LIABLE TO ORIMINAL PROSECUTION ACCOUNT OF QUESTIONABLE METHODS OF HANDLING OTHER 1 PEOPLE'S MONEY. S Depositors Worried t Affairs of bank and order badly mixed but hope is held out that the I former assets will cover all liabilities. 3 Richmond, Va., Oct. 27-No event which might have befallen the colored race in America could have produced a more profound shock or could be more far-reaching in its effects than the suspension of the If cense of the Grand Fountain, U. O. of True Reformers, which was done yesterday afternoon by the Bureau of Insurance of Virginia, The True Reformers is at once the largest, the most prominent, and has hitherto been regarded as the most successful of all the colored secret societies in the world, around whose existence 80 much of the activity of the race centers. The big financial and fraternal organization was brought to its fall by the crash of the Savings Bank of True Reformers, an allied Institution, which yesterday applied for a receiver in the Chancery Court of the city of Richmond. The crisis was forced by an order issued on Tuesday by the Bureau of Insurance requiring the True Reformers' officers to appear this morning at 10 o'clock to show cause why its license to do business should not be revoked Ties up Business The suspension of the license is absolute. The order as Hissued yesterday by Deputy Insurance Commis sioner J. N. Brenaman, sets forth that action is taken "on account of the gross mismanagement, if not criminal negligence, of its present and former management in safe guarding its funds." All fees and dues of applicants initiated after this date are to be returned immediately. No applications for beneficial membership in any branch of the association must be considered or any initiations permtted in this State while the order is effective. Still, out of the wreck of the insurance society, the bank and the allied industrial and mercantile concern, the Bureau of Insurance hopes to get enough salvage to permit the True Reformers to continue in business as an individual organizatino. From all accounts, it is Impossible that the bank can ever again reopen its doors, but the fraternal organization has always been in good circumstances, and would have today been in splendid financial condition but for its alliance with the bank and other enterprises. Has Lost Money. The whole trouble has arisen from the apparently irresistible tendency of Negro insurance officials to start banks and later to engage in other lines of business, which usually take the money earned by the original or parent order. In but few instances have such plans succeeded. With a membership of approximately 60,000, nearly half of whom are in Virginia and the others scattered over the Atlantic States, the True Reformers' officials have, either (CONTINUED ON PAGE THREE)

6. November 3, 1910 The Advocate Charleston, WV

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REFORMERS BANK CLOSED. CONTINUED FROM Dice through ignorance and gross mismanagement, or as the order of the Insurance Bureau intimates, "If not criminal negligence," succeeded in so disposing of the assets as to make it doubtful if the order can again resume business, It may be wiped from the face of the earth, taking with it the hopes and labor and dollars of 60,000 members, representng in a large degree the sober, industrious, thrifty element of the colored race in America. Condition is Bad. Nothing can more forcibly depict the financial condition of the now defunct bank than a brief statement According to its own published statement to' the State Corporation Commission, as of date September 1, last, it had total deposits of $290,468.34, including time certificates, deposits subject to check and cash.er's checks outstanding. Yet the Grand Fountain of True Reformers alone has on deposit at this bank approximately $274,000, and in addition the bank owes the order $61,100 of borrowed money, making a total which is due the order by the bank of about $335,100. The alleged bookkeeping methods of the bank beggar description. Mortgage loans are twisted in every conceivable way, showing as assets when they are really in possession of outside banks as collateral, securities for loans which the bank has contracted. Money has been poured for a long time into an allied concern known as the Reformers' Mercantile and Industrial Association, which runs a chain of stores and a printing office. Cant Pay Claims. As to the insurance order itself, it has been found in the examination just made by the Bureau of Insurance that the bank is holding $57,000 worth of checks drawn by the order to pay insurance claims, which the bank has been unable to honor. In addition SO far as can be learned the True Reformers owe other unpaid claims to the amount of $120,000. The figures given above indicate clearly that it could pay these without the slightest trouble if it could use the money which belongs to it in the bank. But when the bank's affairs are wound up by the receiver the salvage may or may not be sufficient to pay off the insurance order's debt. If it is, the order may yet get on its feet by pocketing its losses, which are certain to be heavy, by proceeding to do business on its current income, and by forever eschewing all combinations of any sort with any other kind of business enterprise whatever. The application for a receiver for the Savings Bank of True Reformers was made by the order. As it is all in the family, with the same officers and the same interests, there was no resistance. Judge Daniel Grinnan at once appointed William A. Moncure, of the law firm of Smith, Moncure and Gordon, counsel for the order, as receiver. He gave bond at once in the sum of $50,000 with the Virginia Trust Company as surety and began an inventory of the property of the institution. Was Popular Order. For nearly thirty years the True Reformers has held a leading place in the admiration and affection of the colored people of this part of the country. Its home office, with its bank and its printing office, are 1ocated on Second Street near Leigh,

7. November 4, 1910 Virginia Citizen Irvington, VA

Article from Virginia Citizen, November 4, 1910

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TRUE REFORMERS IN RUIN. License of Biggest Negro Society in World Is Suspended. License of United Order of True Reformers to do business in Virginia is suspended. Savings Bank of True Reformers goes into receivership, owing the insurance order $335,100, and holding $50,000 of checks drawn by the order for insurance claims, which it is unable to pay. Insurance Bureau hopes order may continue business after affairs of bank are wound up and assets divided. Policies of 30,000 Virginia negroes are in utmost danger. No event which might have befallen the colored race in America could have produced a more profound shock or could be more far-reaching in its effects than .the suspension of the license of the Grand United Order of True Reformers, which was done last week by the Bureau of Insurance of Virginia. The True Reformers is at once the largest, the most prominent, and has hitherto been regarded as the most successful of all the colored secret societies in tl e world. This big financial and fraternal organization was brought to its fall by the erash of the Savings Bank of True Reformers, an allied institution, which applied for a receiver in the Chancery Court of the city of Richmond. The chances are that there will be several arrests. As late as Monday last the savings bank received several large cash deposits from colored churches and the Y. M. C. A. One colored organization was caught for nearly $2,500. A colored man connected with the institution declared that the depositors would not receive more than 25 cents on the dollar. The Richmond Virginian voices the sentiments of all good eitizens when it says: "A TIME FOR SYMPATHY." The suspension of the license of The True Reformers, one of the largest negro benevolent secret insurance companies in the world, is a distinct calamity, not only to the negro race but to the State of Virginia. This society has in its long history done a world of good. It has exerted on the whole mass of negroes an elevating influence. It has advanced their moral ideals; has encouraged them in ways of thrift; has done no little toward fitting them for the exercise of useful citizenship Through its aid and encouragement there are today living in comfortable homes hundreds of negroes who otherwise would be the inhabitants of shanties. In its success, it stood as a monument to negro effort and self-respect; in its fall, it deserves from whites and negroes alike more of sympathy than of criticism. The result of the catastrophe which it has suffered should be, not despair of negro enterprise along these lines, but a concert of helpfulness towards re-building and re-establishing the shattered sructure." FISHERMEN MAY GET INSPECTION. In view of the receivership decreed for "The Grand United Order of Gali-

8. November 8, 1910 The Times Dispatch Richmond, VA

Article from The Times Dispatch, November 8, 1910

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Receiver Will Continue, At a meeting of True Reformers held last night, it was decided to allow the receivership of the Savings Bank of True Reformers to stand, and to let matters take their legal course. It is still hoped that with the assets to be received from the bank the insurance society may continue in business.

9. May 26, 1911 The Times Dispatch Richmond, VA

Article from The Times Dispatch, May 26, 1911

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REFORMERS MAY QUIT BUSINESS Big Negro Order Cannot Continue if Bank Receivers Win Contention. LIBRARY ISSUES BULLETIN List of Official Publications of Confederacy-State Millers Catalogued. In the event of confirmation by the Chancery Court of the contention of the receivers of the Savings Bank of True Reformers that the Grand Fountain of the order and its officers should be held responsible for the amounts borrowed from the bank to operate correlating institutions, the True Reformers as a fraternal beneficiary soclety would be compelled to go out of business permanently. This view is held by the State Insurance Bureau, which, after suspending the license of the order last October, when the bank failed, recently renewed it. The True Reformers originally had only the order. Then the bank was established, and later the officers Branched out into various lines of industrial endeavor. After buying their own ritual and their own by-laws from the founder of the society for $40,000, and after some objection had been-made to the practice of conducting the various branches as one organization. an attempt was made to separate their corporate existence. The bank secured a charter, and another one was taken out for the True Reformers' Mercantile and Industrial Association, under whose ample wings was gathered the stores and other establishments which were operated by the officers of the order. Mixed Endeavors. Apparently the negro officials were totally unable to understand the fact that the business institutions were different, and should be run without regard to each other. The money of one was used to help the others, and the transactions were so hopelessly and completely mixed that the recelvers, the examiners and the men who were in charge have not been able nor will be able to puzzle out the exact situation. It was stated at the time the bank went into the receivers' hands that It held many checks drawn against it by the order to pay claims and which remained unpaid. Recently a reorgantzation of the order was effected. by the terms of which the members levied an extra assessment on themselves to an amount which It was estimated would in twelve months liquidate all past-due claims. However, if the order is to be held responsible for the amounts Its officers lost in mercantile and Industrial ventures, It cannot continue in business. With 55,000 memhers, it might still reincorporate under another name, continue to receive dues on the same basis as at present, and the bank would be the losor. The assets of the order do not noty equal its liabilities at present, so It is esti. mated.