Fruit Growers National Bank

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 2336
Charter Number: 2336
Start Date: December 22, 1898
Location: Smyrna, Delaware (39.300, -75.605)

Metadata

Model: gpt-5-mini
Short Digest: 94fb3e3c

Response Measures

None

Description

Article (Evening Journal, 1898-12-22) describes a substantial unexplained loss (~$30,900) that reduced surplus to about $2,100, leadership changes, and withdrawals by depositors. Mentions a 'run on the bank' but states solvency not impaired; no suspension, closure, or receivership is reported. OCR errors corrected (e.g., 'Fruit Growers' National Bank'; reduced interest 'from 3 to __ per cent' is partly garbled).

Events (2)

1. June 23, 1876 Chartered

Source: historical_nic

2. December 22, 1898 Run

Cause: Bank Specific Adverse Info
Cause Details: Large unexplained loss on an investment (~$30,900) reduced surplus to about $2,100; directors and officers implicated and talk of civil action.
Measures: Bank reduced interest on deposits (OCR: reduced interest from 3 to ? percent); management changes (new president and cashier).
Newspaper Excerpt: There has been a run on the bank, because its unexplained shrinkage of the surplus... some depositors were reassured at first, but... considerable amount have been withdrawn.
Source: newspapers

Newspaper Articles (1)

1. December 22, 1898 Evening Journal Wilmington, DE

Article from Evening Journal, December 22, 1898

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Article Text

as president, and so remains to the prebent time. three months ago the receiving Blositon About gave up hope of bridge atcalpitalist money from the Fruit any more and the directors of the soon as fair, National Bank, as of all Growers' knew of his relinquishment dethey remained in Pandora's knot box, by that to cu't the gordian whatever it eided the $30,900, or and loes, charging in exact figures, to profit rotten was the elimination of this reasset, and, by the surplus was of necessity duced Meanwhile to about President $2,100. David J. Cum- died. of the First National Bank, mine, understood that the presidency Cashier It is bank was tendered to and of the of the Fruit Growers' advisement Bank, Wilds, acceptiance held under have its him for three weeks. It must of by declined for Cashier Janney, and been old bank, became its president, of the Eugene Davis, a son-in-law Mr. Teller Cummins, the deceased president, desk. was elevated to the cashier's was followed by the publication This the statement showing to the public and of sudden, extraordinary the unexplained the shrinkage of charInquiry of critical of the surplus. ensued and the whole story Misacter bursting of the bubble on the for public property. and it has been the conversation. There topic souri several of became days abborbing has the been loss run on the bank, because its no in any manner impair It is. if anything, does solvency. not eight in better years than it has been for frightened shape Some depositors were reasplatest. first, but they' were soon sured, at and nb delposits of considerable amount have been withdrawn. To add to the complications of the situation the old bank hais new reduced 2 its interest en deposits from 3 to per cent A day or two ago Colonel Raymond, P. the ex-president, called on James diHoffecker, a member of the present rectorate of the Fruit Growers', and asked him whom they blassed for the loss. He, was told that he was held responsible because he acted of without the authority of the board directors. Then Colonel Raymond told Mr. Hoffecker that the idea of making the investment originated in the mind of Cashier Wilds, and that for three weeks he withsWood the importunities of the cashier before finally giving in and consenting to it being made. He declared that he was willing to stand his proportionate share of the loss, with the other directors. but no more. This is not satisfactory to Mr. Hotfecker and some others who are interested and there is talk of civil action to recover the amount from the ex-president and present cashier, that being the only recourse, it being admitted on all handls that neither made the investment with criminal intent.