2261. National Real Estate Trust Company (Wilmington, DE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
May 16, 1912
Location
Wilmington, Delaware (39.746, -75.547)

Metadata

Model
gpt-5-mini
Short Digest
8812d64f

Response Measures

None

Description

Articles describe embezzlement allegations against the manager, immediate application by company officers for a receiver, and Chancellor Curtis naming a receiver on May 16, 1912. There is no mention of depositor runs or a temporary suspension followed by reopening — the company was placed in receivership and wound up, with asset sales and final court orders (1912–1914). Cause for suspension is government_action (receivership).

Events (4)

1. May 16, 1912 Suspension
Cause
Government Action
Cause Details
Receiver appointed by Chancellor Curtis after allegations of embezzlement by the general manager and insolvency; voluntary application by company officers/stockholder for receivership.
Newspaper Excerpt
Horace H. Thayer, Jr., treasurer of the company, filed a bill in Chancery Court this morning for the appointment of a receiver for the company...Chancellor Curtis this morning named Peter T. Wright receiver for the real estate company.
Source
newspapers
2. July 30, 1912 Receivership
Newspaper Excerpt
Peter T. Wright, receiver for the National Real Estate Trust Company, sold the personal property of the company today. ... Register in Chancery Joseph C. Jolls is now sending out notice to depositors in the thrift department of the company requesting them to prove their claims.
Source
newspapers
3. September 27, 1912 Other
Newspaper Excerpt
About 150 Certificate Holders of National Concern to be Heard From...Peter T. Wright, receiver for the company, a few days ago sent out notices to those certificate holders who borrowed some money from the thrift department that such loans must be returned in five days.
Source
newspapers
4. February 28, 1914 Other
Newspaper Excerpt
An opinion in the receivership proceedings of the National Real Estate Trust Company was handed down by Chancellor Curtis...orders the company's assets to be turned into cash and after all the obligations of the company have been satisfied the cash then remaining will be divided among the certificate holders.
Source
newspapers

Newspaper Articles (8)

Article from Evening Journal, May 16, 1912

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ACCUSE HIM OF EMBEZZLEMENT National Real Estate Trust Company Makes Charge Against Mr. Molloy Alleging that Maurice S. Molloy, general manager of the National Real Estate Trust Company, is indebted to the company in a large sum, Mr. Molioy was taken into custody early this afternoon on a warrant charging embezzlement, and will be arraigned in Magistrate Buckley's court at 3.30 o'clock Mr. Molloy will be represented by W. W. Knowles. Josiah Marvel will represent the trust Company. The real estate company has not yet has an opportunity to verify its books, but it is feared that Mr. Molloy's indebtedness will amount to $2.000 or $3,000. In view of the situation Horace H. Thayer, Jr., treasurer of the company, filed a bill in Chancery Court this morning for the appointment of a receiver for the company, and the matter will come before Chancellor Curtis at 2.30 o'clock this afternoon. A large portion of the business of the company was in what was called a thrift department, in which contracts were made with individuals by which the individuals paid so much per week. the same to be returned with or without interest according to the terms of the contract. It stated this morning that the com- was pany's assets amounted to upwards of $40,000, principally in first mortto gages, and would be sufficient pay off every thrift contract holder in full according to the terms of his contract, but that there would probably be nothing left for the stockholders of the company. The Delaware Construction Comd pany, which operated as a building company, was very closely affiliated with the National Real Estate Trust Company, and because of the failure of the latter company it was deemed wise this morning by William P. Jorde, a stockholder of the company, to file a bill in chancery for the appointment of a receiver for the construction company. The assets of the latter company amount to about $40,000, and it was reported that the assets would be sufficient to pay the creditors in full, and possibly pay a small amount to stockholders of the company.


Article from Evening Journal, May 17, 1912

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MR. MOLLOY GIVES BAIL FOR TRIAL AT COURT Maurice S. Molloy, general manager of the National Real Estate Trust Company, which has offices at Nos. 1010-12 King street, waived a hearing for upper court hefore Magistrate Buckley yesterday afternoon on the charge of embezzlement of $1,000 of the company's funds and was held in $1,500 bail for court, which was furnished. W. W, Knowles represents the defendant. Almost at the same time that the warrant was placed in the hands of Constable Whartenby, for Mr. Moiloy's arrest. H. H. Thayer of the company, through the company's counsel, Josiah Marvel. made application to Chancellor Curtis for the appointment of a receiver for the National Real Estate Trust Company. William P. Jorde, a stockholder, made a similar application for the Delaware Construction Company, an affiliated concern After hearing the complaint and application for a receiver for the Delaware Construction Company, and after the allegations had been acknowledged in answer of the president. Mr. Thayer. of that company, Chancellor Curtis appointed Mr. Thayer receiver for the concern. He will be required to bond in the sum of $50,900. In the complaint it is alleged that the company has considerable property of value, but that it is insolvent and Uirable to meet its current and increasing obligations. The same complaint is made in the case of the National Real Estate Trust Company, and its president, W. P. Jorde, in his answer, admits that the complaints are correct. Chancellor Curtis this morning named Peter T. Wright receiver for the real estate company.


Article from Evening Journal, July 30, 1912

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RECEIVER SELLS PROPERTY. Peter T. Wright. receiver for the National Real Estate Trust Company, sold the personal property of the company today. The receiver will make an itemized report of the sale to the Court of Chancery tomorrow. Register in Chancery Joseph C. Jolls is now sending out notice to depositors in the thrift department of the company requesting them to prove their claims.


Article from Evening Journal, September 27, 1912

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600 CLAIMS AGAINST REAL ESTATE CO. About 150 Certificate Holders of National Concern to be Heard From CALE FOR RETURN OF AMOUNTS BORROWED There have been about 600 claims filed by certificate holders of the thrift department of the National Real Estate Trust Company. While they have until next Tuesday to file their claims there are about 150 certificate holders who have not filed their claims. Peter T. Wright, receiver for the company, a few days ago sent out notices to those certificate holders who borrowed some money from the thrift department that such loans must be returned in five days. Unless such order is complied with proceedings will be instituted for the collection of the loans. As a result the office of the Register in Chancery has been filled with persons asking for information which the Register in Chancery was unable to furnish to those asking it. Under the contracts of the thrift department, after certain number of payments the certificate holders were entitled to borrow without security other than the certificates one-half of the amount paid in which loans could be returned in monthly installments. About 250 have made such loans and while no doubt the loans must be returned before a distribution of the assets would be possible, many cannot see why the receiver requires the cash when he already holds sufficient money to pay the loans. The condition became such that the Register in Chancery took the matter up with Josiah Marvel, counsel for the receiver, and a decision was reached that this notice is to be considerd a formal demand of the amounts still due the company. While the time expires the first of October no drastic action will be taken without further notice. It is expected that the outstanding 150 claims will be filed before October 1.


Article from Evening Journal, November 5, 1912

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# OBJECT TO HIS # CLAIM ON FUNDS Argument was heard before Chancellor Curtis yesterday on exceptions to the claim of Richard W. Roberts, general manager of the National Real Estate Trust Company, against that company, now in receiver's hands. Mr. Roberts had claims of $762.14, and of the amount, $216.66 represented a preferred claim. It was claimed that $350 of the amount was liquidated last January, when thirty-five shares of preferred stock of the company were issued to Roberts. The minutes of the company showed that the company issued this stock under certain conditions. Much testimony and argument were produced, after which Chancellor Curtis reserved his decision. Regarding the preferred stock, Chancellor Curtis said he had already decided in another case that a director was an officer and under the law an officer cannot claim a preference.


Article from Evening Journal, November 5, 1912

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# OBJECT TO HIS # CLAIM ON FUNDS Argument was heard before Chancellor Curtis yesterday on exceptions to the claim of Richard W. Roberts, general manager of the National Real Estate Trust Company, against that company, now in receiver's hands. Mr. Roberts had claims of $762.14, and of the amount, $216.66 represented a preferred claim. It was claimed that $350 of the amount was liquidated last January, when thirty-five shares of preferred stock of the company were issued to Roberts. The minutes of the company showed that the company issued this stock under certain conditions. Much testimony and argument were produced, after which Chancellor Curtis reserved his decision. Regarding the preferred stock. Chancellor Curtis said he had already decided in another case that a director was an officer and under the law an officer cannot claim a preference.


Article from Evening Journal, December 20, 1912

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DO YOUR CHRISTMAS SHOPPING IN WILMINGTON STORES NO PREFERENCE CITY JUDGE DELAWARE'S PROTECTORATE DEMAND FOR WOMEN ASK NOBILITY ON THEIR CLAIMS, HOLDS M'CALL GLORY IN CORN IN MEXICO IS UNCLE SAM'S LAWMAKERS GATHERS AT RECEIVER SAYS FOR NON-SUPPORT AND FRUIT PROBABILITY POSTAL BONDS FOR BALLOT REID BIER Peter T. Wright. receiver of the William McCall. charged with nonNational Real Estate Company, has support by W. Ray Lord, superintenfiled in the Court of Chancery exdent of the Delaware Children SoExhibits as Features of HorTaft is Determined That Lives ceptions to two classes of claims filed ciety several weeks ago and whose Delaware Depositors With Equal Suffrage Association Prince of Connaught Personby certificate holders of the thrift decase was referred to Humane Agent ticulture and Corn Shows of Americans There Shall partment of the company. Mr. Wright, Stout for investigation was held Government Apply for Sends Letter Asking for ally Represents King George under section two of the exceptions under $500 bail for court in City filed says, "Exception is taken to the Court today. When the case was be Safe in January $920 in Certificates at Memorial Service Franchise at Early Day preference elaimed by said claimants called this morning Mr. Stout inin the distribution of the assets of the formed the court that two of McNational Real Estate Trust Company Call's children were being cared for ARRANGEMENTS FOR ORDER GEN. STEEVER WILMINGTONIANS ASK PASS HOUSES TWICE BRITISH ARTILLERY TO for the reason that no grounds of prebut one, a girl aged 15 years, was ference are set up in claims and for working and attending night school. FLOCK OF VISITORS ON BOARDER TO BE READY $400 OF THE AMOUNT the further reason that no grounds BEFORE BECOMING LAW BE FUNERAL GUARD Mrs. McCall. it was stated, needed of preference whatever exist in favor help and despite many chances given of said claim." McCall he had failed to provide for Preparations for at least 1000 visBy The United Press. Postal savings depositors in DelaBy The United Press. At the coming session of the DelaThe certificate holders claim that his wife. itors at the conventions of the PenWASHINGTON Dec. 20-A protecthrough the thrift department they LONDON, Dec. 20.-Prince Arthur ware have made application for $920 ware Legislature, which convenes on insula Horticultural Society and the Delaware the have preference over other creditors torate over that portion of Mexico in worth of bonds of the fourth, semi- January 7. members of of Connaught, personally represent Delaware Corn Growers' Association. to the company's assets. The receivAGREE ON BILL which American interests are located, annual Issue of postal saving bonds Equal Suffrage Association, in according King George V and Queen Mary er takes the ground that such cerfrom January 14 to January 18 in to be distributed on January 1. Ap- ance with the resolution passed at the headed the vast array of British not it was believed here today, will be tificate holders are but general credAFFECTING ASSESSORS the duPont Hotel auditorium and auplication for this amount has been State Convention in November last, ables who today attended the mem established within the next thirty itors and should share in the distrinex. R. J. Maclean, business manmade by seven depositors and $900 of will make an appani for universal orial services for the late Whitelaw Members of the State Revenue and bution of the assets of the company days. unless President Madero accedes ager of the Wilmington Chamber of the amount has been applied for in suffrage for the women of Delaware. Reid, U. S. ambassador to the Court with other creditors, such as the Taxation Commission at a meeting Commerce, has sent notices and into the demands of President Tar's the registered form, indicating that The movement of suffrage for women, of St James, which began at noon in holders of notes and those who furheld in the rooms of the Stret and vitations to attend the convention to they are being purchased as a per- having within the last few years beWestminster Abbey. ultimatum, sent him Thursday nished supplies. Sewer Department today, finally de5600 residents of the Delmarvia Pencome world wide in its proportions, manent investment. Three thousand Americans were There are hundreds of claimants it is admitted by the State Departcided upon the bill providing for the insula, and the publicity bureau has to Applications have been received for the progressive women of Delaware there and the abbey was packed ment that attempts at a friendly adto whose claims exceptions are taken appointment by the Superior Court sent news stories of the conventions nine of the registered bonds, five of feel that the time is ripe for the subcapacity. Hundreds could not gain by the receiver in the three counties of the county justment of the outrages against to more than 600 newspapers in the the $20 denomination, three of the mission of an appeal which they make admission and a special police guard There is a.second class of claim assessors, that will be presented at American life and property in NorthUnited States $100 denomination and one of the $500 in the name of justice and democracy, surrounded the entrances to prevent of ants under the head of holders the next session of the Legislature ern Mexico, has failed, and the ProsiThis will be the most interest ng the who those that all has One obey denomination believing anplication a crush. thrift department certificates to whose The object is to take the matter of dent's exasperation at Mexico's insoand profitable and by far the most been received for the $20 denomina- laws and pay taxes are entitled to a Premier Asquith, Sir Edward Grey lent attitude culminated with that claims Mr. Wright takes exceptions county assessors out of politics, they largely attended horticultural convoice in the making of those laws and tion in the coupon form. secretary of state for foreign affairs on the ground that such certificates being elected under the present country answer on December 14, to the vention ever hold in this part of the all Practically applications for the expenditure of their share in Chancellor of the Exchequer Lioy have been rescinded under terms of tem. Ther will be little change in his demand for redress, sent in Sept United States. was the statement of financial the government. support bonds in Delaware were made by deGeorge; all the other members of th the State butside of Delaware and such certificates that by lapses they tember In his reply, Madero ad the today of Wesley Webb, of Dover. sec. positors in Smyrna and Wilmington, In the interest of the movement, cabinet; the Archbishop of Canter have leased to exist. There are about the cost will be a little less than at mitted his inability to cope with the letter retary of the Peninsula Horticultural each to been sent has the $500 worth and former taking following bury; the Bishop of London: the Lor half the number in this class that present. situation, practically ,refused the conSociety in speaking of that society's member of the Legislature Wilmingtonians $400 worth. Mayor of London and the entire dip are in the paid up class Under the proposed act there will sideration of indemnity for Americombination. This is the fourth bond issue since Wilmington, Del., Dec. 18, 1912, for each lomatic corps were at the


Article from Evening Journal, February 28, 1914

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CLOSING THE N.R.E.T. CASE Chancellor Orders AssetsConverted Into Cash for Certificate Holders THRIFT DEPARTMENT DEPOSITORS BENEFIT An opinion in the receivership proceedings of the National Real Estate Trust Company was handed down by Chancellor Curtis in the Court of Chancery yesterday afternoon. The company went into the hands of receivers on May 16. 1912. The opinion handed down by the chancellor orders the company's assets to be turned into cash and after all the obligations of the company have been satisfied the cash then remaining will be divided among the certificate holders. The National Real Estate Trust its ments, and Company, operated among various maintained depart- a 'thrift department' in which weekly contributions were made by the subscribers in various amounts ranging from 5 cents to any desired amount The company, in consideration of these deposits, agreed to keep these funds separate and to invest the money only in first mortgage on real estate. The company agreed, at the end of twelve years, to pay to the despositor $50 for each 5-cent weekly payment extending through the twelve years, with provisions made for the suspension of payments, for forfeiture and for reinstatement. Provision was also made for security on the funds At the time the receivership proceedings were started the holders of "thrift certificates" filed 795 claims, all claiming preférence over the general creditors of the company in the distribution of the assets. After classification exceptions to these claims were filed by Peter T. Wright, receiver for the National Real Estate Trust Company, and on March 1913, these exceptions were referred to Henry R. Isaacs as master. After giving due notice. to all persons hiterested, and after holding numerous hearings, the master made report on July 17. 1913. dividing the claims fourteen schedules, according to the date to which payment had been made, and fixing Monday May 13, 1912, as the last day on which payments were due The master reported that the company kept two files: one called the live" cer tificates and one called the "lapsed" cer tificates. Of the certificates represented by the claims presented, 110 were lapsed certificates. It was the practice of the officers of the company in charge of the "thrift department, at irregular intervals to list the names of those who were five weeks or more in default, and to change the cards frou the "live" to the "lapsed list. At the same time they would withdraw from the thrift fund a sum equal to the aggregate amount of the payments on the certificates transferred and apply the money to the general purposes of the company. On the resumption of payment by the defaulters, the eards were taken from the 'lapsed file and placed on the "live! file and the money was replaced in the "thrift fund. Chancellor Curtis, in the opinion hand ed down yesterday afternoon, held that were Those holders. whose certificates al treated by the company as alive. are lowed to participate in. the distribution. Hold whether in default or not. Those ers, whose certificates were treated by as hapsed, will not so par tieipate, the company provided they be in default for more than three months before the up pointment As to tligre of the certificate receiver holders who de had borrowed money. the opinion that interest on such loans should to the date of After all assets of the company net ship. be elared charged and the receiver the turned into casir, amount are for distribution has been deter- that mined. there will be added together to amount the total of such loans, the interest giving the divisible with This fund ill be divided procrata and fund. those entitled to participate loans among share of those having such their the ill be decreased by the amount of respective loans and the interest As to those holders who had paid the advance beyond May 13, 1812, be in holds that such advance opinion in full before any listribution repaid made. The opinion of the chancel the lor is further declares in regard to the matter of allowing interest on claim claims. that inasmuch as every immaterial would bear interest it is or not. whether interest be added received Also that if the receiver has any other money of the from company investments from of the source "thrift department. than that such money, the under the contract. holders. belong to "thrift certificate Practically all the assets of into the have been converted $6,000 company cash with the exception of church a in on a negro first mortgage No final distribution among this certificate city. holders can be possible If there the this has been collected. convertuntil delay, however, in the cash, it is is any of all the assets into the claiming probable that attorneys application for to the for a partial posno payment can ante chancellor either will event make distribution. weeks. sibly In be made for several