2198. Washington National Bank (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Start Date: March 1, 1891*
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 8f41d524

Response Measures

None

Description

Contemporary reports (Mar 24–26, 1891) state the bank's doors were shut after Examiner Hepburn's findings of mismanagement, the Comptroller was expected to appoint a receiver, and directors discussed the impaired capital. There is no clear description of a depositor run/withdrawal event — coverage attributes failure to bad loans, over-certification and poor management rather than rumor or large public withdrawals. Thus classified as a suspension leading to closure/receivership. OCR errors in Article 1 corrected (e.g., examiner A. B. Hepburn).

Events (2)

1. March 1, 1891* Receivership

Newspaper Excerpt: The comptroller of the currency will probably appoint a receiver; the appointment will be announced to-day (per Examiner Hepburn's statement).
Source: newspapers

2. March 25, 1891 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiner Hepburn reported massive mismanagement: impaired capital from large improper loans, over-certification of checks, inadequate security and questionable out-of-town collections; capital reportedly impaired about $130,000–$148,000 leading to closure.
Newspaper Excerpt: The doors of the Washington National Bank ... were shut in accordance with the decision of the Examiner A. B. Hepburn.
Source: newspapers

Newspaper Articles (7)

1. March 25, 1891 New-York Tribune New York, NY

Article from New-York Tribune, March 25, 1891

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or ASTONISHING CONDITION TON BANK. UTTER DISREGARD THE EXAMINER SAYS PRINCIPLES MARKED THE Washington OF MANAGEMENT BUSINESS OF National Bank; Broadway, were shut Bank in The the Washington doors of the Building. in accordance Examiner at No. with A. B. the of Hep- decision of a preliminary the instance of burn, after National yesterday by him at Rowland examination & Co., a Sidell prom- give the its Tilghman, affairs, Stock made of Exchange Tilghman, firm. was who not is able one bank, to of but directors. Mr. to attendance at in entire were busily afternoon Mr. and late in the inent the the his books, deputies day statement Hepburn caustically engaged His the criticising report examining Hepburn went the management made public S. a of Lacy, the institution. Controller of of the a Currency receiver to Edward the appointment to-day. The last night, be announced to an extent of at will probably and impaired the depositor capital stock- least seems of the bank is but the protection wealth of of the among 50 per to cent be assured whom by is the said to be Cornelius re most features. most holders, Vanderbilt... In some respects the The failure president, presents reckless Evan and un- G. securiwere ties which practically on overdrafts cancelling Sherman, markable businesslike is charged methods with in the making worthless. loans the and on part in per- of of reckinstance to mitting individuals. and was A flagrant the loan of to $10,000 sea in a lessness certain in lending L Norton, who put with his wife, Captain Francis of his invention, and who has never lifeboat months ago, Norton was the 18 in furnished security ganizer about steam been Shipbuilding heard three of from. the Company, Norton Captain at No. Naval which Broadway. lifeboat has Construction an office com- The as not commonly security and the Welles Building, was stock of the recognized pany, circles. bank's capital to allowed "gilt-edged": larger a part in financial of the Director impairment of Tilghman of the to who the of the one directors The is ascribed by John S. Silver, of the that when American compelled achieved overdrafts notoriety Loan and as Trust to Company go to the wail. out Mr. by given institution was to the statements to deposit any draft the on Silver, according was able account at and Director Tilghman. bank in his until it was colan out-of-town without waiting certified to immediately as Washington, have his checks not overdraw his account The drafts of Mr. lected any extent that the did deposited drafts. out-of-town banks with The result strengthened Silver by were sent instructions to the not to protest" is that for collection they were not paid. the Washington Silver Bank is is a them Silver's if account at $63,000. Mr. Co., manuMr. to be overdrawn of Burns. Silver & Conn. He member said of the car-springs firm at Bridgeport, Charleston and North- to facturers president of of the Sumter, not generally a known strip of ern is Railroad, and a road said to Darkest consist South of Carolina. Chesarailway miles men, somewhere in of the when Decatur, the AmeriHe 100 was made New-Orleans president Railroad found that its that adpeake and and Trust Company company building can Loan to the construction Mr. Silver's financial Trust vances needed protection. American Loan and the pubwas transactions road with the been explained to loans from coHapse at Company have said never yesterday that have his been fully his that lic. but concern it before its could not be could found any one secured. the Boreel Surprise found to by several credit which he be office in Mr. yesterday explain Silver Building his the position. nor financial Yesterday men com- that was in a was expressed have obtained Bank. $9,786 of he marked could at the entered Washington against him for receiver of the United which suspended realize corpsration could not Silver a judgment favor because Adolfo States it Rolling Hegewisch, that Stock Mr. in Company, Decatur Novem- upon inber It is alleged made by the dated October dorsed its assets. a note for Improvement $9,596. Company, the order Stock February and Nashville 4. 1890, payable Company sixty for days. cars furnished. 10, inof the Rolling went to protest. and him on as indorser an A of 1891. The note suit was begun with against recent developments interest In connection the Stock Exchange stock is of the Louis the price eident at sold 300 shares Louis of the Railroad Company. last latter ville, broker Texas and St. from about figure 15a16. 200 the shares breaking quotation. to 5. by At a broker, the who 10. a few He moments cleared were purchased sold the stock out and at his fellow-brokers the Stock $1,000 afterward by the transaction. the next president person of who should Exchange. hailed him as It was that stated the 300 by a shares sold were the know property the statement of facts Mr. Silver. made creditor by Mr. of Tilghman the Washington shows only The is another $42,000. of which is 87,000 is concealed. occured that Bank there to the amount by of collateral. This name Mr. Hepburn's I carefully THE BANK statement EXAMINER'S STATEMENT. bank affairs went is follows: at the request of Mr. Bank, Tappen, where we as On Saturday last, Washington National all the assets of im. the nt with him informal to the examination conclusion of that there of loss's upon its investments Granger bank made and an reached capital of the the to bank the on amount account of proposed on $75,000. Mon. This Mr. cashter. amount loans pairm and Mr. Titghman We and were Mr. assured banks by the contained whether only it was 0.000 day to make that good. the item The due pending from question continue to clear Mr. for In the Granger legitimate collections for the Gallatin view of Bank the forthcoming matter was allowed to Washington. it was, and developments. the the thought awaiting disclosed dus Tappen stand over Monday morning further probably the banks item 10 On Monday was large loss the item found, due from if crookedness making from fact that tanks. there crookedness That amount, is usually something that we list always of the due to exists one in in which 3 bank. examinations It 18 from by each taking particular with bank each and be will It bank. which the can certainly know verify amounts verifying in claimed the to amount necessary by to do this that bank now will before sustaid that item. of out win received Bank National where payable. places correspondent through The Washington sent them forward and instructed the the Washington the collections. arked them no protest subject to the time they collection certified thus checks sent bank to hold them. At the same against these received and sent instructions receive National of Bank. their depositors forward. with notice check of payment All checks is the notice only held to thus received forward under and which such the the bank credit could of these depositors, stood

2. March 25, 1891 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, March 25, 1891

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FINANCE AND TRADE. The Features of the Money and Stock Markets. NEW YORK, March 24.-Money on call easy, ranging from 2½ to 8 1/2 per cent, last loan 2½ per cent, closing offered at 2½88 per cent. Prime mercantHe paper 5a7 per cent. Sterling exchange quiet but firm at S4 861/4a4 88%. Sales only 76, 186 shares. It IN now becoming a recognized fact that the rampant bull speculation in cereals is acting as a repressing influence upon the market for securities, though the hope is indulged in that the profits made in these deals will find their way to Wall street after the culmination of the speculation. Dullness again marked the dealings to day. The prevailing tone of the market was heavy as indicated by the changes in quotations during the greater portion of the day. Burlington & Ontario and Westorn were the only stocks in the list showing any animation or material flue. tuation in the early dealings. Afterwards there was little suimation in St Paul and Rock Island. These movements comprise all there was of the market. and no interest in course of prices was apparent anywhere. The close was dull and steady, with prices, in all but a fe cases, slight fractions below those of last evening. Railroad bonds were not so dull as stocks; sales $700,000. Government and State bonds dull and easier. The Post says: The suspension of the Washington Nation al Bank was merely an incident that helped to emphasize the dullhess and the reactionary tendency that would probably have been experienced in the stock market any how this forenoon. The market is still so narrow that the advance of yesterday was too large to be continued very long, especially as it was due largely to the covering of shorts. There has unquestionably been a great change in the sen. timent of the street in the last three weeks to a belief in higher prices for stocks, some time this spring. The proof of this is that there has been a slow but steady advance in prices since March 6. The advance would have been larger had it not been for the gold exports last week, but now exchange is easter and business in that line is quiet, which leads the principal gold exporters to think there will be no further gold exports this week. BANDE AND CLOSED

3. March 25, 1891 Wheeling Register Wheeling, WV

Article from Wheeling Register, March 25, 1891

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STATES-Dull and easier. RAILROADS-Not so dull: sales, $700,000. STOCKS-It is now becoming a recognized fact that the rampant bull speculation in cereals is acting as a repressing influence upon the market for securities, though the hope is indulged in that the profits made in those deals will find their way to Wall street after the culmination of the speculation. Dullness again marked the dealings to-day. The prevailing tone of the market was heavy, as indicated by the changes in quotations during the greater portion of the day. Burlington and Ontario and Western were the only stocks in the list showing any animation or material fluctuation in the early dealings. Afterwards there was a little animation in St. Paul and Rock Island. These movements comprise all there was of the market and no intertest in the course of prices was apparent any where. The close was dull and steady, with prices in all but a few cases slight fractions below those of last evening. The Post says: "The suspension of the Washington National Bank was merely an incident that helped to empnasize the dullness and the reactionary tendency that would probably have been experienced in the stock market anyhow this forenoon. The market is still SO narrow that the advance of yesterday was too large to be continued very long, especially as it was due largely to the covering of shorts. There has unquestionably been a great change in sentiment in the street in the last three weeks to a belief in higher prices for stocks some time this spring. The proof of this is that there has been a low but steady advance in prices since March 6. The advance would have been larger had it not been for the gold exports last week, but now ekchange is easier and business in that line is quiet, which leads the principal gold exporters to think there will be no further gold exports this week. Sales, 76,186 shares. Quotations closed bid: Adams Express, 145; American Express, 115; Canada Pacific, 77; Central Pacific 29; Chesapeake and Ohio, 17; do. first preferred, 51: do second preferred 30½; Chicago and Alton, 124; Chicago, Burlington and Quincy, 78%; Delaware and Hudson, 133; Delaware, Lackawanna and Western, 135; Denver and Rio Grande 17½ Erie, 18%; do. preferred, 51½; Ft. Wayne, 150; Illinois Central, 94; Lake Shore, 109%; Michigan Central, 91; Minneapolis and St. Louis 8½ do. preferred, 67: Missouri Pacific 42%; Northern Pacific,26%; do. preferred, 70% Northwestern, 104½; do preferred, 130; New York Central, 1011/2; Oregon Transcontinental, 171/4; Pacific Mail, 36½; Peoria, Decatur and Evansville, 18½; Pittsburg, 150; Pullman Palace Car, 1913/2; Reading, 30%; Rock Island, 69; St. Louis and San Francisco, -: do. preferred, -; do. first preferred, 55; St. Paul, 553/4; do. preferred 1113/3; St. Paul, Minneapolis and Manitoba, 1071/4 :St. Paul and Omaha, 22: do prefer'd, 79; Texas Pacific, 13½¹/² Union Pacific, 448/4; United States Express, 67; Western Union, 79½.

4. March 25, 1891 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, March 25, 1891

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(Signed.) A. B. HEPBURN, National Bank Examiner." The clerks were all at their accustomed desks in the bank, but no money was received or paid out. It was said at 10 o'clock there was nothing new to make public at that hour. Sidell Tilgham, one of the directors, said to-day the capital stock of the bank was $300,000, and it had been impared to the extent of $130,000 by loans made by President Sherman. Tilgham said he felt certain depositors would be paid in full and the only losers would be the stoskholders. Notice was posted this afternoon that all checks drawn on the Washington National bank by the Commercial National bank, Fremont, Neb., would be paid by the First National bank, of this city. United States Bank Examiner Hepburn gave out a lengthy statement this afternoon in which he said so far as his examination extends there will be an apparent loss to the bank from various sources of $145,000. This would still leave the stockholders entitled to a dividend of 50 per cent. He thinks depositors will be paid in full, Among the instances of bad business done, he said the bank received out-of-town collections, sent them forward marked "no protest," instructed the corresponding bank to hold them subject to order, at the same time they certified checks that had been deposited against these collections, and allowed such items to stand. "No one thing ails the bank," added Hepburn, "but everything. Inadequate security for loans, loans to parties of notorious impecuniosity, and utter disregard for established banking principles characterized the management throughout. The comptroller of the currency will probably appoint a receiver."

5. March 26, 1891 Pittsburg Dispatch Pittsburgh, PA

Article from Pittsburg Dispatch, March 26, 1891

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A CRIMINAL CHARGE Will Probably Be Entered in the Latest Bank-Wrecking Case. MORE SENSATIONAL FEATURES. One Man With a Cash Balance of Just $61 Borrowed $63,000. SOME PECULIAR CERTIFIED CHECKS TERCIAL TELEGRAM TO THE DISPATCH.1 NEW YORK, March 25.-As the investigation of the Washington National Bank affairs progressed to-day under the official microscope of National Bank Examiner Hepburn's men, it was indicated that United States District Attorney Mitchell and the United States grand jury will take a hand in the proceedings. Mr. Hepburn's preliminary report on the condition of the bank is already on its way to Washington for the inspection of the Controller of the Currency. The bank's capital of $300,000 has been impaired by President Evan G. Sherman's generous loans, one hundred and forty-eight odd thousand dollars. It is believed that Mr. Hepburn can establish the fact that part of this impairment results directly from over certification, which is a criminal violation of the banking act under which the bank received its charter. James D. Fish, it will be remembered, spent a number of years at Sing Sing because the Marine Bank, of which he was President, overcertified the account of Ferdinand Ward. Progress of the Investigation. Hepburn was not well enough to remain at the bank to-day, but his subordinates were on hand, and some of the directors, among them, notably, H. Victor Newcombe, were around suggesting a movement for the reorganization of the bank. They will meet to-morrow afternoon to discuss this question, and at the same time some line of action will be discussed concerning President Sherman and his friend, John S. Silver. It is claimed that Silver is a stockholder in the bank. With a cash balance of $61 in the bank he owes it $63,000. and the collateral on which he obtained the loans to that amount is not promising, according to substantial authorities. It was discovered to-day that Silver contributed very largely to the disastrous results which necessitated the official visits of Mr. Hepburn and which culminated in closing the bank's doors. Silver was a director and member of the Executive Committee of the American Loan and Trust Company. As a member of the Executive Committee he had a voice in determining the loans of the institution. In fathoming the difficulties of the Washington National Bank, friends of the institution have discovered that Silver obtained $175,000 from the American Loan and Trust Company on collateral of projected and unflnished railroads. A Very Rapid Financier. Besides tha loans, aggregaiing $175,000 Silver, also obtained $13,000 in drafts on the American Loan and Trust Company. These drafts were for future collection, and are similar in financial character to the out-of-form drafts. which Mr. Hepburn and Director Tilghman say worked such injury to the Washington National Bank. These drafts, according to close friends of Mr. Hepburn and Mr. Tilghman. were discovered when Receiver J. Edward Simmons took charge of the American Loan and Trust Company. He immediately notified Silver peremptorily to pay these drafts, and at the Washington Bank it was learned that Silver made haste to comply with Mr. Simmons' demand. But he adopted a method familiar to himself to meet the emphatic demand of Mr. Simmons. With $61 in the Washington Bank he obtained on Wednesday of last week a certified check for $11,500. In the natural sequence of check-kiting Silver left with Sherman ascollateral for this certified check an uncertified check for the $11,500 on the Third National Bank. Silver had a small account with that bank also, On Thursday, with the demand of Mr. Simmons' still pressing upon him, Silver obtained, it is claimed, by directors familiar a with the Washington's troubles, certified check for $25,000. He used part of this money to take up the uncertified check of the Third National, and the remaining $13,500 he handed over to Mr. Simmons to satisfy the unpaid drafts issued by him. and which were found nestling among the riff-raff securities in the American Loan and Trust Company's vaults. The check for $25,000 which Sherman gave to Silver, without the knowledge of Cashier Granger, it is said, was the last straw, and after a hasty examination of the bank's condition the Gallatin refused further to clear for it, and this eventually precipitated the official visit of Mr. Hepburn.

6. March 27, 1891 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, March 27, 1891

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BUSINESS TROUBLES. Judgment for $750,000--The Washington National Bank Collapse. SAN FRANCISCO, March 26.-The case of the Bank of California and Alvord against Henry F. Williams, Maurice Dore, Henry C. Hyde and Henry F. H. Cobb, assignees in the insolvency of Henry F. Williams, and also against John D. Fry, involving over $750,000. was terminated today, judgment being rendered as prayed for. The suit was to recover $770,483 on four promissory notes, and to foreclose a mortgage on several valuable tracts of land situated in different parts of this city. It was tried before Judge Hunt, and the judgment is that William Alvord, who is appointed commissioner for that purpose, shall sell said property, or as much thereof as may be necessary, and devote the proceeds to the payment of the last named sum to the plaintiff, it being found to be due from Williams to the bank, and also to the payment of $103,650 to Maurice Dore, the same having also been proved to be due from Williams. ALLENTOWN, Pa., March 26.-William Younger, a miller at Catasauqua, assigned today. Assets, $125,000; liabilities, $80,000. PHILADELPHIA, March 26.-At a meeting of the creditors of Messrs. Crump. proprietors of the Collonade hotel, today, the liabilities were placed at $260,000 and the accessible assets at $800,000. An extension of time has been requested. NEW YORK, March 26.-The final report of the bank examiner on the condition of the Washington National bank has been completed and forwarded to Washington City. The directors of the wrecked bank at a meeting this afternoon decided to consult with the stockholders upon the question of making good the impaired capital. BOSTON, March -Regarding the statement of the over-issue of stock made by the Boston Water Power Company, J. F. Farley. counsel for the company, said the accounts were mixed, and he suspected an over-issue, but he had not discovered any.

7. August 8, 1891 The Jersey City News Jersey City, NJ

Article from The Jersey City News, August 8, 1891

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NEWS IN NOTES. Foreign General E. Burd Grubb, Minister to Spain, will sali for New York August 29. to he present at the reunion of the Phil Kearny brigade, of which ne is president, and incidently to look after his chances for the Governorship. Second Lieutenant Philip J. Hodges of H. M. S. Ringdove jumped overboard from the steamship liameda on July 14, suortly after leaving Sydney. Hodges had been suspended from duty for one year on account of a breach of discipline, and was on his way to England. The officials of the North German Lloyd line have decided to have the steamers of their Italian service stop at Gibraltar for the convenience of those of their passengers who desire to go to Spain. Mrs. Easies was at the trouble of denying the absurd story published yesterday to the effect that Julian Story was obliged to hypnotize Miss Eames before he could lead her to the altar, so averse was she to marrying him. The young couple have fled from London, leaving no address, rather than be pestered with questions about the ridiculous affair. The dory Sea Serpent arrived at Lizard Point yesterday. Captain Lawlor told some remarkable fish stories about a shark that tried to swallow the Serpent. The Mermaid when last sighted was about a thousand miles behind. At the National Capital It is more than likelv that the Washington National Bank which failed some months ago will soon resume business under another name. Several good settlements have already been made, bringing in considerable money from debts which were originally thought to be almost worthless. Congressman Mills will arrive in Washington about November 10 and open Speakership headquarters. Pension claims are being allowed so rapidly under the loose provisions of the new law that the rolls of that department will soon be carrying thousands of new names. New York Doings. William Lumsden, detained at the Barge Office a week ago because his brother-in-law did not fancy him was allowed to land yesterday. E. C. Lee, formerly Assistant Superintendent of the Custom House, has been appointed janitor, with the same duties and salary, the former office having been abolished. The Rev. Daniel C. Potter, pastor of the Sixth Street Baptist Church, New York, has had executed to himself a mortgage of $20,000 on the church as security for a claim representing ten years' salary. The notorious Dinsmore claim, handed down from Tweed's davs, for allezed advertising in the Stockholder, popped up yesterday on an order to show cause, issued by Justice Brien of the Supreme Court, and directed to the Board of ADportionment requiring them to show cause Tuesday next why the claim should not be paid. The row over the hanging of young O'Neill in effigy at Corona has been forlowed by a number of arrests. The figure has been taken down. Mrs. Sarah Coleman was found dead on the floor of her shanty at Fifty-ninth street and Park avenue, New York. Her husband, who was asleep beside the body, was arrested because the body was bruised. The woman had been dead for several days. Elsewhere A cablegram has been sent to Buffalo Bill at Liverpool. tolling him of the presumptive find of nis father's body, for which a reward of $500 has been offered, in the old burying ground on Pilot Knob, est of Denver. Quarrymen yesterday dug up an iron casket in which the father of the famous plainsman was buried. As a train on the Rio Grands road entered a deep cut near Debeque, Col., yesterday, a huge must of earth became dislodged and fell upon the cars. The engine and baggage cars were wrecked and the other cars thrown on their sides. The passengers were badly shaken up, but nGone s-seriously injured. John McManus, the Philadelphia murderer, was yesterday respited by the Governor until October 29. to give him a chance to go before the Board of Pardons. The date for McManus' execution was August 20. Barbara Frietchie's grave. in the German Reformed Church near Frederick, Md., 18 covered with briars and creeping plants, and marked by a headstone on which are inscribed her name and age, and thesuggestive date "1862." Father Quay, a Roman Catholic priest of Seattle, Wash., was tarred and feathered Thursday because of alleged immoral practices. Governor Buchanan of Tennessee yesterday issued a proclamation calling for an extra session of the Legislature for August 31. General Grant, acting Secretary of War, has notified the Chicago authorities to remove the centre pier of the Canal street bridge within three weeks. Captain Judah Berry of the schooner Tyron, who mysteriously disappeared while that vessel was in Philadelphia, has arrived at his home in West Harwich, Mass., in a dilapidated condition. It is believed that he wandered away while suffering from mental aberration due to financial troubles. W. E. Schmerlz, President of the Third National Bank of Pitisburg, has confessed judgments for $233,000.