23024. First Citizens Bank (Cameron, WV)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 23, 1903
Location
Cameron, West Virginia (39.827, -80.566)

Metadata

Model
gpt-5-mini
Short Digest
dac8f2d8

Response Measures

None

Description

The bank failed and closed in December 1903; a receiver (John A. Howard) was appointed and the institution did not resume normal operations. Coverage focuses on insolvency from large overdrafts, unsecured loans, and alleged mismanagement by president M. L. Benedum. Later litigation (1911 and afterward) sought recovery from Benedum and dealt with receiver collections. No article describes a depositor run prior to suspension.

Events (4)
1. December 23, 1903 Receivership
Newspaper Excerpt
John A. Howard was appointed receiver and took charge today. It is stated that the bank will be able to pay all claims in full, and depositors and creditors will receive the full amounts due them.
Source
newspapers
2. December 23, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank insolvency caused by large overdrafts, unsecured loans to Benedum-promoted companies and mismanagement by president M. L. Benedum; capital inadequate to cover liabilities and statutory reserves violated
Newspaper Excerpt
After the bank failed in December, 1903 ... John A. Howard was appointed in this capacity
Source
newspapers
3. June 5, 1911 Other
Newspaper Excerpt
A decision against President M. L. Benedum, of the First Citizens' bank, of Cameron, which failed in December, 1903, ... judgment is given against him for sums totaling $190,000 ... Howard Was Receiver.
Source
newspapers
4. June 8, 1915 Other
Newspaper Excerpt
when the Cameron bank went to the wall in 1903 a receiver was appointed by the circuit court of Marshall county, the receiver being John A. Howard ... the receiver ... recovered some of the assets of the bank
Source
newspapers

Newspaper Articles (6)
1. December 28, 1903 Sistersville Daily Oil Review Sistersville, WV
Article from Sistersville Daily Oil Review, December 28, 1903

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Cameron Bank Is Examined State Bank Examiner Kendall arrived in Cameron Saturday and made an investigation into the affairs of the First Citizens Bank of Cameron. After completing his work he reported that everything was regular and straight, and b d nothing of an unusual nature to say as to his findin gs. Hon. T. S Riley, of Wheeling, is the attorney for the bank, and Attorney John A. Howard was appointed receiver and took charge today. It is stated that the bank will be able to pay all claims in full, and depositors and creditors will receive the full amounts due them. The outlook is thought 10 be much bet ter than was at first anticipated, and it is expected that as soon as the receiver str ightens out the present muddle the bank will reorganize, and under new management will resume business as a National bank.

2. June 5, 1911 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, June 5, 1911

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BENEDUM WRECKS BANK AT CAMERON And Judge Orders Him to FIGHT Pay Creditors a Large Sum of Money. Occurs on West Pike Street A decision against President M. L. Benedum, of the First C tizens' This Afternoon between Bank, of Cameron, which failed in Two Men. December, 1903, has been given in the Marshall county circuit court by Officer Sapplington arrested Charles Judge Frank W. Nesbitt. In the deKeene and A. P. Hickman on West e'sion President Benedum is held P.ke street this afternoon at 2 responsible for the failure of the o'elock for fighting. They were bank and judgment is given against brought to police headquarters him for ums totaling $190,000, where they were held for trial this with interest for e ght years, which evening. bring sthe amount up to a quarter The fight started over an arguof a million dollars. ment about some money. Hickman Howard Was Receiver. claimed that Keene beat his son out The testimony produced was of a of a wek's wages or $10. Keene dehighly sensational nature, Mr. Bennied this and the fight followed edum and former cashier, A. E. Quite a little excitement was created Fox, being accused of gross mismanas the two bleeding men were led agement and unwarranted maniputhrough the streets to the police stalation of funds. After the bank tion, and a large crowd followed and failed in December, 1903, owing gathered around the station to see large sums, President Benedum the combatants. came forward with a claim for $70,000 against his own institution and asked for the appointment of a reciver. REPRIMAND John A. Howard was appointed in this capacity, but his actions were not satisfactory to the creditors of Is Administered at the Directhe bank, who had an investigation tion of Taft by the Secmade and discovered that corporations promoted by President Beneretary of War. dum owed the bank large sums of money. Being unable, it is said, to WASHINGTON, D. C., June 5.-Col get Mr. Howard to proceed in the Joseph Garrard, U. S. A., commandproper manner, these creditors were ing the cavalry post at Fort Myer, forced to file a cross bill which preVa., was today reprimanded by the cipitated the long legal fight which secretary of war under orders from has just ended. President Taft for reporting adverseOverdrafts of $40,000. ly an application of a soldier for the right to take examinations for promoThe capital stock of the bank was tion to a commissioned grade on the $25,000, with deposits averaging ground of Jewish parentage. about $150,000. The Cameron Glass Company, a Bendum concern, COURT MEETS. was at one time allowed to carry an overdraft in the bank of $40,000, The county court met Monday or $15,000 more than the capital morning with all its members presstock, and to negotiate unsecured ent and the various bridge quesloans from $20,000 to $30,000. This tions that have been before it sevcompany then sold out to the Mareral times were taken up. The shall Window Glass Company, also court took a recess however until controlled by Benedum, and this 3 o'clock in the afternoon without concern was permitted to discount taking definite action or entering a note for $80,000. Other Benedum any orders. (Continued on page 5.)

3. June 5, 1911 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, June 5, 1911

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Benedum Responsible For Wrecking of Bank Cameron Bank Case is Decided by Judge Nesbitt in Favor of the Depositors. Banker Gives UNSECURED LOANS MADE TO MANY INDIVIDUALS Himself Up Former President Held to Owe $250,000-Sensational Testimony of Irregularities. THOMAS H. SILVER SURRENDERS TO THE POLICE. A decision against President M. L. Benedum. of the First Citizens' bank, is Charged With Embezzlement and of Cameron, which failed in DecemReceiving Funds For In. solvent Bank. ber. 1903. was given in the Marshall county circuit court Saturday by Judge Frank W. Nesbitt. In the deSpecial Dispatch to the Intelligencer. cision, President Benedum is held WELLSVILLE, O., June 4.-Trembresponsible for the failure of the ling like a leaf in a storm. Banker bank and judgment is given against Thomas H. Silver, of the Silver Bank him for sums totaling $190,000. with ing company walked into police headinterest for eight years, which brings quarters this afternoon and gave himthe amount up to a quarter of a self up. He is charged with alleged million dollars. embezzlementand receiving funds for Howard Was Receiver. an insolvent bank. Bond of $2500 was The testimony introduced was of a given. highly sensational nature, Mr. Benedum. and former Cashier A. E. Fox being accused of gross mismanagement and unwarranted manipulation Auto Hit Bridge of funds After the hank failed in December, 1903, owing large sums, One Dead and Others Hurt in AcciPresident Benedum came forward dent-Machine Turned with a claim for $70,000 against his Turtle. own institution and asked for the ap pointment of a receiver. AUSTIN, Pa., June -Mrs. Jacob John A. Howard was appointed in Swanson was killed and four of her this capacity, but his actions were children, ranging in age from five to not "satisfactory to the creditors of twelve years, were seriously hurt today when an automobile driven by her the bank. who had an investigation husband struck an iron girder in a made and discovered that corporabridge about two miles from this tions promoted by President Benedum Swanson escaped with owed the bank large sums of money. but Carl injuries, place Freeland, who slight was Being unable. it is said, to get Mr. also a passenger. was seriously hurt. Howard to proceed in the proper was and manner. these creditors were forced Mrs. The machine Swanson overturned was killed instantly The five-year-old child had its leg to file a cross bill which precipitated broken, and an eight-year-old girl the long legal fight which has Just sustained a broken arm and other inended. juries. Overdraft of $10,000. The capital stock of the bank was $25,000. with deposits averaging about $150,000. The Cameron Glass Negroes Slayers Company a Benedum concern, was at one time allowed to carry an overTwo Held at Wellsville For the draft in the bank of $40,000. or $15,000 Murder of Oscar P. Bowers. more than the capital stock and to negotiate unsecured loans of from Special Dispatch to the Intelligencer. $20,000 to $30,000. This company WELLSVILLE O., June Charged then sold out to the Marshall Window in the court of A. G. McKenzie with Glass Company also controlled by murder of O. P. Bowers, Harry PullBenedum, and this concern was per mitted to discount a note for $30,000. man and Ed Johnson. both colored. are in jail here, ball being refused Other Benedum companies with Both men tell conflicting stories. A which similar tactics were employed hearing will likely be given to were the Upshur Class Company and morrow the Wetzel Glass Company, of New Martinsville These companies all failed owing the bank over $100,000. and causing the complete ruin of the Taft Made Hit institution Cashier Overdrawn. It was also shown that unsecured Talk on Reciprocity Believed to Have loans had been made to many indiMade Favorable Impression viduals and that when the bank failed in West. Cashier Fox was overdrawn $70.00 PITTSBPRG, June 4.-President on his personal account As a memTaft on his way back from Chicago ber of the board of directors. Presito Washington passed through Pitts dent Benedum is held responsible for burg tonight Secretary of the Inthis loss. In fact. it is said .that Mr. terior Fisher, who accompanied him Benedum was the only real director to Chicago, did not return with the of the bank. the others occupying popresident Mr. Taft is due to reach sitions but being financially irresponWashington early tomorrow. sible. Friends of the president who came The decision of the court holds that east with him. were greatly pleased Messrs. Benedum and Fox were retoday at the way in which his speech sponsible for the wrecking of the in behalf of Canadian reciprocity be bank and that Benedum should repay fore the Western Economic society at the sums due to all the creditors Chicago has been received The creditors were represented in The president will get into the fight the case by Attorney Charles Mc again tomorrow to have the bill reCamic, of Mountabille, with offices in ported unamended to the senate by the Schmulbach building It was the finance committee and it is cerstated by the defense that an appeal tain that his two thousand mile trip would be taken to the supreme court to make one speech for reciprocity Must Return Money. has strengthened his conviction that Judge Nesbitt indicated in his demuch of the country looks upon it cision that monies paid out by the with favorable eyes. receiver in attorney's fees, amounting to about $7,000. would have to be reChas. M. Carrol. stored to the trust fund. This matter Special Dispatch to the Intelligencer it is said. will be covered in the for MORGANTOWN W. Va. June 4. mal order when it is entered upon Charles M. Carrol. aged 63. is dead at the records It has been said that the his home near the Oak Grove ceme. monies paid out under the receiver tery where he was sexton Interment ship for legal services were paid with was made today at Kingwood out authority of the court. and for (Continued on Sixth Page.) Tanga Take

4. June 8, 1911 The Clarksburg Telegram Clarksburg, WV
Article from The Clarksburg Telegram, June 8, 1911

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BENEDUM WRECKS BANK AT CAMERON And Judge Orders Him to Pay Creditors a Large Sum of Money. A decision against President M. L. Benedum, of the First Citizens Bank, of Cameron, which failed in December, 1903, has been given in the Marshall county circuit court by Judge Frank W. Nesbitt. In the decision President Benedum is held responsible for the failure of the bank and judgment is given against him for ums totaling $190,000, with interest for eight years, which bring sthe amount up to a quarter of a million dollars. Howard Was Receivor. The testimony produced was of IL highly sensational nature, Mr. Benedum and former cashier, A. E. Fox, being accused of gross mismanagement and unwarranted manipulation of funds. After the bank failed in December, 1903, owing large sums, President Benedum came forward with a claim for $70,000 against his own institution and asked for the appointment of a reciver. John A. Howard was appointed in this capacity, but his actions were not satisfactory to the creditors of the bank, who had an investigation made and discovered that corporations promoted by President Benedum owed the bank large sums of money. Being unable, it is said, to get Mr. Howard to proceed in the proper manner, these creditors were forced to file a cross bill which precipitated the long legal fight which has just ended. g Overdrafts of $40,000. The capital stock of the bank was 1 $25,000, with deposits averaging d about $150,000. The Cameron a Glass Company, a Bendum, concern, was at one time allowed to carry an S overdraft in the bank of $40,000, W or $15,000 more than the capital 0 stock, and to negotiate unsecured c loans from $20,000 to $30,000. This company then sold out to the Marshall Window Glass Company, also r controlled by Benedum, and this concern was permitted to discount $ a note for $30,000. Other Benedum companies with which similar tacties j were employed were the Upshur a Glass Company and the Wetzel Glass Company, of New Martins. a ville. These companies all failed, TO owing the bank over $100,000, and causing the complete ruin of the ino stitution. Cashier Overdrawn. e It was also shown that unsecured loans had been made to many individuals and that when the bank failed Cashier Fox was overdrawn $70,000 on his personal account. As a member of the board of directors President Benedum is held responsible for this loss. It fact, it is said that Mr .Benedum was the only real o director of the bank, the others occupying positions but being financially irresponsible. The decision of the court holds that Messrs. Bendum and Fox were responsible for the wrecking of the bank and that Benedum should repay the sums due to all the creditors. It was stated by the defense that an appeal would be taken to the supreme court. "Mike" Benedum, as he is popularly known, is a native of this county. When a Standard O!l Company began to operate extensively through the northern part of West Virginia Mike with brother

5. July 7, 1911 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, July 7, 1911

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Statement of Defense Sets Forth at Length Transactions in Wrecked Bank. STATUTES VIOLATED IN MANY INSTANCES Overdrafts and Loans Permitted for Benedum Promotions in Excess of Law's Provisions. The decree in the famous case of M. L. Benedum vs. the First Citizens Bank of Cameron, which was handed down last week at Moundsville by Judge Frank W. Nesbitt, and which held Benedum responsible for the wrecking of the bank, has attracted intense local interest. By the decree Benedum is directed to return to persons who were depositors in the bank at the time of its failure various sums aggregating about $150,000. A part of the record of the case that gives a concise and interesting history of the case was the statement of the case filed on behalf of the defense. and presents in detail charges as to the financial transactions of Benedum and others that brought about the failure of the Institution. "This suit exploits the failure in 1903 of the First Citizens Bank of Cameron." the brief states. "and is brought by M. L. Benedum, who was president from its organization until it closed business. He was also a member of the board of directors and the discount committee. Mr. W. M. Kincaid was elected president in place of M. L. Benedum on December 23. 1903. The bank closed on December 23, 1903, and no other person except Mr. Benedum acted as president from its organization until it failed." Unlawful Financing. The statement then avers that M. L. Benedum was a promoter. and while with the bank promoted or assisted in promoting the Cameron Glass company. the Cameron Pottery company, the Upshur Glass company and the Wetzel Glass company. He became the president of all four companies. while Cashier Fox. of the First Citizens Bank of Cameron. became treasurer of the Cameron Glass company. These promotions. with their ramifications. were financed by Benedum and Fox unlawfully using the bank's funds. and at the time of the failure of the bank the outstand ing unpaid liability of the companies amounted to $74,874.83 every dollar of which. with interest. the defense alleges should be repaid the bank by Benedum. The stock of the bank was $25,000. with 40 per cent unpaid, though an effort was made to have it paid by a dividend declared by the stockholders January 21. 1902. It is claimed that at that time the bank had no money available for dividends, having bills payable (borrowed money) of $38,000 and an overdraft of $36,455. The over. draft included an overdraft of the Cameron Glass company of $8,595.01. and an ovedraft of D. C. Harkins of $11,860.57 the latter being really the overdraft of the Cameron Glass company real estate addition to Cameron, another promotion of Benedum and Fox with D. C. Harkins. The dividend was declared out of a paper showing of undivided profits of $5,716.02 and a surplus of $4,500. At the time deposits amounted to $166,722.01. and the statutory overdraft could not exceed 5 per cent of the deposits. or $8,300, yet the books showed an overdraft of nearly 200 per cent of the amount of the capital. or nearly 25 per cent of the deposits. It did not have on hand the statutory reserve of 15 per cent, and owed for borrowed money $41.000. Instead of being able to pay a dividend. it was claimed the bank was insolvent when the dividend was declared and that all should repay the 40 per cent. On January 13. 1903, the bank declared one other dividend. 12 per cent case and 18 surplus. It is claimed that at the time Fox reported earnngs of 33 per cent for this action. that the Cameron Glass company was overdrawn $12,378 46 and M L. Benedum's account was overdrawn $11.941.92 At this time the statutory overdraft could be $12,000; Instead it was $39,686.47 $75,000 Owed to Bank. When the bank failed the promotions of Benedum and Fox were thrown into the hands of the receiver with assets of little value and owing the bank approximately $75,000. The bank had a rule on its books forbidding overdrafts The statement of the defense then goes on to name concerns that were permitted to carry big overdrafts. in each one of which Benedum was in terested. They included D. C. Harkins for the Cameron Glass company addition, S H. Outward Farm Oil company. Hammet Farm Oil company. J. A Ingram Farm Oil company, In gram Farm Oil company, Cameron Pottery company, S. E Stricklin, trus tee, and personal accounts. Of these overdrafts, when the bank failed S. D. Outward Farm On company Cameron Glass company and M L. Bene dum. as agent, accounts totalled $10,329.07. The bank had a law that not more than a limited amount of the capital stock could be loaned to any one person. firm or corporation. The by laws were lost, but one official testifled that the amount was 15 per cent. The law at the time provided total Habilities should not exceed 50 per cent of capital stock. surplus and un divided profits, that the overdraft should not exceed 3 per cent of the deposits, and no stockholder should be permitted to borrow more than 20 per cent of the capital of the bank Benedum. Harkins and Fox are al leged to have violated the statute Overdraft Violated Law. In addition to the overdraft. the Cameron Glass company was permit ted to borrow money on Its notes to the extent of $40,000 With $15,000 paid up capital in the bank 50 per cent of that capital should have been the limit The Marshall Window

6. June 9, 1915 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, June 9, 1915

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DECIDE CITY BANK CASE SUPREME COURT REVERSES THE RULING OF MARION CIRCUIT COURT. Case Hinged on Payment of Attorney Fees Out of Judgment Secured In Old Case. Special Dispatch to the Intelligencer. CHARLESTON, W. Va., June 8.The judgment of the circuit court of Marion county in the case entitled the City Bank of Wheeling and others against W. J. Bryan and others in which the Wheeling bank appeared as a creditor of the First Citizens Bank of Cameron, was reversed to-day by the supreme court of appeals. A dissenting opinion was filed by Judge L. Judson Williams, concurred in by Judge Ira E. Robinson. It appears that when the Cameron bank went to the wall in 1903 a receiver was appointed by the circuit court of Marshall county, the receiver being John A. Howard, who later, by his attorneys, T. S. Riley and Alfred Caldwell, brought suit in the circuit court of Marion county to recover some of the assets of the bank on notes held against W. J. Bryan, who had large coal interests in Marion county. Following a long term of litagation in which the case was decided once by the circuit court of Marion county in favor of Bryan, then reversed by the supreme court of appeals, which ordered a decree and judgment in favor of the receiver of the bank in the sum of $42,000. The attorneys, Riley and Caldwell filed bills for their fees in the sum of $10, 000 against the moneys thus collected by them for the receiver through the Marion circuit court. Bills Allowed These bills the Marion circuit court allowed and entered a decree ordering the fees paid out of the judgment of $42,000 before it should be turned over to the receiver. It was this decree of the circuit court which was involved in the judgment of the supreme court today. The majority opinion. written by Judge Williams, holds that the circuit court of Márion county had no jurisdiction over the disposal of any part of the $42,000. even as to attorneys' fees. and that only the circuit court of Marshall county which ap pointed the receiver can disburse the funds collected by the receiver The dissenting opinion contended for the point that regardless of whether the judgement found by the Marion circuit court was in favor of an individual or a receiver appointed by another court. it had jurisdiction to pass on attorneys fees. which always are payable or are guaranteed out of the judgment they are instrumental in securing