First National Bank - Burlington, VT

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 861
Charter Number: 861
Start Date: January 10, 1884
Location: Burlington, Vermont (44.476, -73.212)

Metadata

Model: gpt-5-mini
Short Digest: a741a878

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Receiver appointed and legal suits brought against directors; allegations of speculative misuse of funds and large amounts of doubtful assets.

Description

Examiner Hendee reported an annual exam Jan 10 followed immediately by a two-day run (about $60,000 withdrawn). Bank officers were found heavily indebted and assets later proved largely doubtful; the bank suspended and a receiver (David Roberts) was appointed in April 1884. Later litigation (1885) documents the failure. (Ignore unrelated 1931 Omaha item referencing other banks.)

Events (5)

1. March 6, 1865 Chartered

Source: historical_nic

2. October 15, 1870 Voluntary Liquidation

Source: historical_nic

3. January 10, 1884 Run

Cause: Bank Specific Adverse Info
Cause Details: Annual exam Jan 10 disclosed problems; large indebtedness of officers and a major debtor (D. W. Marshall) owed the bank; these facts excited suspicion and triggered withdrawals.
Measures: Demands met promptly; examiner required president and cashier to give collateral; officers ordered to collect debts and pay interest-bearing certificates; deposits reduced.
Newspaper Excerpt: Immediately following the examination there was a run upon the bank which lasted two days. The demands of depositors were met promptly and about $60,000 was drawn out.
Source: newspapers

4. April 1, 1884* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Shrinkage in asset quality and large amounts of doubtful or worthless assets; officer indebtedness and speculation left assets insufficient, leading to suspension and appointment of receiver.
Newspaper Excerpt: David Roberts of Burlington has been appointed receiver of the First National bank, lately suspended.
Source: newspapers

5. April 28, 1884 Receivership

Newspaper Excerpt: David Roberts of Burlington has been appointed receiver of the First National bank, lately suspended.
Source: newspapers

Newspaper Articles (4)

1. April 11, 1884 Burlington Weekly Free Press Burlington, VT

Article from Burlington Weekly Free Press, April 11, 1884

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Notes of the Failure. The March statement was not made public until March 26, three weeks after it is stated to have been made up. This fact excited some suspicions, which has been still further increased by the failure of D. W. Marshall, a Boston produce dealer, who is said to owe the First National a large amount. Bank Examiner Hendee made the follow. ing statement: I made my annual examination of the First National bank Janurary 10. Immediately following the examination there was a run upon the bank which lasted two days. The demands of depositors were met promptly and about $60,000 was drawn out. Confidence was afterward partially restored. Soon after the run I began the work of requiring President E. A. Sowles and cashier Albert Sowles, who were largely indebted to the bank, to give collateral securities for their indebtedness, and succeeded in obtaining what I considered sufficient to insure the payment of their liabilities to the bank. I also required the officers to collect the debts due the bank and pay their interest bearing certificates as fast as possible. Deposits have been reduced since then to about $220,000. Gov. Hendee is of the opinion that a thorough examination of the affairs of the bank will show that the depositors will be paid in full, and that the only loss suffered will be by the stockholders: The First National was chartered soon after the passage of the National Banking act, and recently had its charter extended for twenty years. The bank was entered by the rebel raiders from Canada on the 19th of October, 1864, and robbed of over $100,000, a part of which was afterward recovered. For many years the late Hiram Bel. lows was its president, and after his decease, Edward A. Sowles secreeded to the presidency or the bank. Sowles was appointed executor of the Bellows estate, which amounted to over $250,000, mostly in

2. April 28, 1884 Orleans County Monitor Barton, VT

Article from Orleans County Monitor, April 28, 1884

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STATE NEWS ITEMS. David Roberts of Burlington has been appointed receiver of the First National bank, lately suspended. Ernest Kendall was sentenced Tuesday at Burton to state prison for six years, for robbing a house at Shelburne. A. G. Safford, Esq., of Burlington, has accepted an invitation to deliver the Memorial day address at Bakersfield. Ratchie & Warden's store at West Barnet was entered Saturday night, and money and goods to a considerable amount were stolen. The Central Vermont camp meeting at Northfield will commence June 23, and and the state temperance camp meeting at Morrisville, on August 19. A steam tug 119 feet long and 20 feet beam, capable of towing 30 boats from New York to Albany in 40 hours, is expected at Burlington to work on the lake. A young man named Long, at work in a saw mill near Plainfield, was struck by a chain used in hauling logs Tuesday afternoon aud thrown upon a circular saw and beheaded. In tearing down Ryther's old building on Main street at Brattleboro recently, a copper penny coined in 1835 was found, on one side or which is a turtle bearing a hnge safe and on the other is a donkey with the motto, "I follow in the footsteps of my illustrious predecessor." This pen² ny figured quite prominently in the Van Buren campaign. The house of M. F. Burke, in Bartonsville, was struck by lightning recently, and considerably damaged, the electric fluid playing some curious freaks with the crockery in the pantry, and about the house. No flame was started, and no one seriously injured. The house was well supplied with lightning rods, but they were cut and torn off by the bolt. Mrs. Lyman Barber of Fair Haven, who died the 14th, from the effects of a dose of Paris green which she took the day before, admitted to her friends that she intended to have killed her daughter, and endeavored to induce her to go to the woods with her for that purpose, but the daughter declined to go. She confessed, when dying, that she "wanted to kill her SO she would not be left alone." The Ides have commenced work on the foundation of their new grist-mill. The old foundation will be used with some improvements to be added. The building will be 55x30 and 70 feet from bottom of frame to ridgepole. The frame will be of heavy timber and put together to sustain all the machinery and grain which can be crowded into it. This, we believe, will be the first roller grist-mill in Vermont. On the afternoon of Apr. 17, a train was wrecked at Fairlee Mountain by a large stone which heavy rains had washed across the track. The train was composed or coach, baggage and smoking car, and contained about twenty passengers. The engine was thrown off the track and entirely ruined. The baggage car turned half way over and lay partly on the track, while the coach stood on the road-bed. The engineer and fireman were badly bruised. No passenger was seriously d injured. Col. John B. Mead of Randolph has sold all but two of his Red Polled herd a Two cows and one calf sold for $1200 to go to Dayton, O. Thebull Romeo brought n $600 and goes to Hartland, Wis. The e July bull called Volney brought $300 and Simkins $500. These with 15 head of 11 cows and helfers were taken by Ellwood r & Murray of Maquoketa, Iowa, who proe pose to cross them on Shorthorns, thus t insuring a deep red Shorthorn without is horns, of increased milking and superio beef qualities. The 51 head were al

3. March 6, 1885 The Middlebury Register and Addison County Journal Middlebury, VT

Article from The Middlebury Register and Addison County Journal, March 6, 1885

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State and Vicinity. In the United States court at Burlington, last week. Sarah Louise Hickney and her husband. Patrick Hickey, both of Chicago, pleaded guilty of sending an obscene letter to Lizzie Hickey of Chicago, sister of the latter, with whom Mrs. Hickey had had some trouble. The crime was committed while Hickey was at West Pawlet, in June 1884. Mrs. Hickey was the principal actor in the case. The prisoners pleaded guilty after the first hearing, and Hickey, who is wholly under the control of his wife, asked to receive the same sentence that was passed upon Mrs. Hickey. Judge Wheeler disregarded the request. Mrs. Hickey was sentenced to two years imprisonment at hard labor in the State prison at Windsor and her husband to one year at hard labor in the House of Correction at Rutland. Receiver Roberts of the First national bank, has sued E. A. Sowles, Albert Sowles, George W. Foster, O. A. Burton and B. C. Hall, directors of that defunct institution, for the sum of $200,000, and United States Marshal Henry has attached and sequestered all their property. This action on the part of the receiver is against the directors as trustees for the stockholders; and the bill in equity brought by Mr. Roberts against these men allleges, among other things, that the whole amount of the assets of the bank which came into his hands as receiver was inventoried and estimated at the sum of $394.137.93, of which only $115,618.12 was estimated be to good, and all the rest as doubtful or worthless; that debts against the bank amounting to $269.850.06 have been proved, and others amounting to $20,000 have been presented, but stand suspended for the present; that only $1000 has been as yet paid on the assessment ordered by the comptroller; that the men above mentioned were duly sworn to act as directors, and have professed so to do, that neither President Sowles nor Cashier Sowles gave any bonds at any time, but wrongfully went on in the administration of their duties without giving bonds; that the dividends of supposed profits were made that were not warranted by law; that the cashier formed sundry associations to speculate in the New York market, and had wrongfully used the funds of the bank for that purpose; that other officers of the bank also speculated wrongfully in stocks; that the directors systematically violated the provisions of the National bank act in the

4. December 18, 1931 Omaha World-Herald Omaha, NE

Article from Omaha World-Herald, December 18, 1931

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Bank Suspensions. Boston. "he Bos-Continental National bank with main offices on Devonshire street, downtown Boston, and four branches, remained closed at today. the time was posted comptroller of currency had asked to take it over to conserve assets, owing to heavy demands by depositors. the time of the consolidation the Boston National bank with Continental National bank about year ago the combined posits the merged institutions given as approximately $9. 500,000 and the combined resources were set at $11,000,000. Hamden, Conn. Hamden, Conn. Dec. 17 The Hamden Bank and Trust pany closed today Assets in last published statement were 097 Lowell, Mass. Business was suspended Lowell Trust company which cently reported savings and mercial deposits of $3,384,428 was the second Lowell bank to close within two days. the Middlesex National bank with deposits of $4,000,000 having tions yesterday. Burlington, N. Burlington, 17 The First National Bank of Burlington, with assets at the time last statement of approximate 150,000. closed order Barnett national bank examiner. R. W. Malone, was in active charge ed the tion action was due shrinkage in the value of bonds held. Calais, Calais, Me International Trust and Banking company here closed Wednesday It was announced the action necessar because of heavy drawals by Canadian depositors. Raleigh, N. rectors the Commercial tional bank, largest bank in the capital city, night voted close the bank holders. pending meeting the The September 29 ment of the bank listed deposits had a capital stock of $600,000. 000. Board of Trade Stocks Chicago, Minneapolis Bank Stocks Minneapolis, Dec. 17 East