Peoples National Bank (Middletown, DE)

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Body of Cashier Is Found After Run Closes Bank

Middletown, Del., Man Had Drowned Self in Creek; Had Invested All Funds in Loans MIDDLETON, Del.-The body of Watson K. Betts, cashier of the People's National Bank, which closed yesterday afternoon after a "run", was found in Old Drawyers creek today by state troopers. When the bank was ordered closed by a federal bank examiner, no one suspected the cashier of anything except possibly mismanagement of the funds. When the depositors appeared for their money, it was found to be invested in loans on which cash was not immediately available.

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RUMORS START 'RUN' ON BANK; CASHIER COMMITS SUICIDE

By Associated Press MIDDLETOWN, Delaware, Dec. 15. body of Watson K. Betts, cashier of closed Peoples National Bank of Middletown, was found today in Drawyer's Creek near here. Betts left Middletown in an automobile several hours before directors closed the bank yesterday after run started on what directors stated were false rumors. It is stated the bank is perfectly solvent and business temporarily suspended rather than raise funds to meet the run.

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FOUND IN CREEK; BETTS' BODY IS CASHIER KING GEORGE RALLIES AFTER POOR NIGHT

OFFICIAL OF BANK CLOSED YESTERDAY MISSING 24 HOURS

Jugular Vein Severed and Deep Cuts Behind Right Ear and on Left rist, Cause Belief He Was Fatally Hurt in Crash of His Auto, Found Nearby.

LIKELY FELL INTO WHEN DAZED

Tragic Episode Overshadows Financial Crisis of the People's Bank in Middletown, in Federal Receivership Following Run.

(By Staff Correspondent.) MIDDLETOWN, Dec. 24-hour search for Watson K. Betts, 42-year-old cashier at the People's National Bank, which is now in the hands of receiver, ended at 9.20 A. M., today, with the discovery of the official's body. with several serious wounds upon it, in Drawyers Creek, at a point where the stream flows under the State Highway bridge near Odessa. The creek yielded the man's body shortly after the search, begun yesterday and interrupted by darkness, had been resumed. Stat Highway Policemen Knecht and Sullivan, who were rowed out into the creek in a boat by John Heller, of Odessa, recovered the body. Betts' jugular vein was severed, cursory investigation disclosed, and there are also deep cuts on his right ear and left wrist, all of which are thought to have resulted from flying glass from Betts' car, which was found in damaged condition on the bank of the creek yesterday. It was thought that the body had been in the water for about 24 hours, às watch, found on the body, was stopped at 231/2 minutes of nine. The man was last seen alive at 8.30 M., yesterday. Although an autopsy had not been completed as this edition went to press, it is thought that Betts died as the result of an automobile accident.

Auto Crashed During Heavy Fog. theory was advanced that the man, worried run on the bank which began Thursday and which finally caused institution to close its doors yesterday, sought solace automobile ride. Driving that section of the road near where Betts was found dangerous under favorable weather conditions, it said, and was made more hazardous yesterday morning because of the heavy fog that prevailed that time Supporters this theory were confident that Betts fell into the creek and was drowned while wandering around in daze as result of the accident. They also pointed out that the ignition switch the car, which had been turned off. stained blood. To substantiate this belief further, they declared that the body, when found, was still clad in an overcoat. (Continued on page 18)

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ALFREE DISAPPEARANCE BANK CLOSING PRELUDE

The closing of the People's NationBank at recalls to number of people the mysterious ago Jehu Alfree. The bank foreclosed mortgage his propershortly after the disappearance. and the sale is scheduled to take place next Tuesday morning the Major Rothwell homestead, near MidThe Alfree property has been in the hands sheriff. No has been heard Mr. Alfree since he left Mid-

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EXAMINER TAKES OVER INSTITUTION

With his jugular vein apparently severed and other serious injuries about his face, head and hands. thought to have been caused when his automobile collided with a tree, the body of Watson K. Betts. cashier of the Peoples' National Bank, of Middletown, which closed its doors yesterday afternoon after a run. was found by John Heller and State Highway Policemen Knecht and Sullivan, at 9.20 o'clock this morning in Old Drayers' Creek, near Odessa. The body. with the consent of Coroner Nichols, was taken to the undertaking establishment of John T. Tobin, Middletown. At about the same time the body was found, Steven L. Newnham, chief of the bank examiners of the Third Federal Bank District with headquarters in Philadelphia, announced that he had appointed William N. Baker, another federal bank examiner, receiver for the bank under orders of the Comptroller of Currency. When asked if it was customary in cases where bank had a run and closed its doors although there was no proof of defalcation or shortage to take this action, Mr. Newnham replied that such action is generally taken in all cases when bank had been closed. He said he had no further statement to make and would have no statement later. J. Pearce Cann of this city, counsel for the bank of which his brother Richard T. Cann. Jr., is one of the directors after hearing this morning that the body of Mr. Betts had been found. said that nothing had been found in the examination of the bank affairs that would indicate defalcation as far he knew. Mr. Cann also said the directors had appointed

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Death Follows 'Run' On Bank By United Press Leaxed Wire MIDDLETON Del... Dec. 10.-The body of Watson K. Betts, cashier of the People National bank. which closed vesterday afternoon after a frum. was found in OIL state Drawyers today by troopers, When bank was ord closed afternoon by Stephen Newhere examiner of third federal reserve district suspected of any exembi mismanage thing went which caused them **frozen as sets loans. on

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CASHIER OF MIDDLETOWN BANK DROWNS

Search For Missing Officer Ends When Body Is Found Four Miles From Home

BANK CLOSED WHEN RUN ON FUNDS STARTS

Twenty Thousand Withdrawn In Short Time; Death Though Suicide Or Accident

Middletown, Del., Dec. (AP) The body of Watson K. Betts, cashier of the closed Peoples National Bank of Middletown, was found today in Drawyers creek, near here. Betts left Middletown in his automobile several Hours before the directors closed the bank yesterday and last night his car was found on the bank of the creek, about four miles from here. It evidently had run into tree. The bank was closed on orders of the directors after a run had been started on their institution following what directors stated were false rumors. It was given out that the bank was perfectly solvent and that business was temporarily suspended rath er than go out and raise funds to meet the run. It was also stated that an examination of the bank's accounts so far as it had gone did not indicate any short age ficer. on the part of any employe or of Examination Betts' body revealed cuts on the head. The coroner is making an examination to determine if he was drowned or killed in an accident. State police said Betts, evidently on his way to Wilmington, had driv en his car down a cut-off at bridge and crashed into a willow tree on the bank the stream. The front wheels rested in the mud and there were blood-stains in the car. Betts had been cashier of the bank for ten years. He lived next door to the bank building with his wife and son, university student, and was prominent borhood in civic and other neighactivities. A bank examiner, who came to middletown on a routine inspection, it was said, remained here and is going over the books. Richard Betts, a farmer and brother of the cashier, was quoted as saying his brother had been worried over some of the bank's money being tied up in "frozen" assets, which could not be quickly realized on. It was announced later that the comptroller of the currency had appointed William B. Baker of Philadelphia Federal Reserve Bank, as receiver in control of the bank. The bank has a capital of $80,000, 000. surplus $35,000 and deposits of $450,The bank was taken over by examiners after a run which resulted in withdrawals by depositors of approximately $20,000 before noon.

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BODY OF CASHIER FOUND IN CREEK

Troopers Make Discovery After Run on Delaware Bank.

Middleton. Del., Dec. body of Watson K. Betts, cashier of the People's National Bank, which closed yesterday after was in Old Drawyers Creek today by State Troopers. When the bank was ordered closed yesterday afternoon Stephen chief bank examiner of third Federal Reserve suspected the cashier of thing except possibly ment caused them to up in "frozen assets" loans. the depositors their money found vested in loans on which cash available.

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BODY OF CASHIER FOUND IN CREEK

Troopers Make Discovery After Run on Delaware Bank.

Middleton. Del., Dec. body of Watson K. Betts, cashier of the People's National Bank, which closed yesterday afternoon after "run," found in Old Drawyers Creek today by State Troopers. When the bank was ordered closed yesterday afternoon by Stephen chief of the third Reserve district. the cashier thing except possibly mismanagement the funds which caused to tied up in "frozen assets" loans. the appeared their found vested loans which cash available.

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Cashier's Body Found LEAGUE SEEKS Lying in Creek After Run Closes His Bank TO INTERVENE

MIDDLETOWN, Del., Dec. 15 body of Watson Betts, cashier of the People's National Bank here, which closed its doors yesterday after run, was found today creek near town. His automobile was standing nearwhere evidently ran into tree and blood stains were found

Bank examiners, while still working the book,s said they had found no indications of shortage.

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RUN CLOSES BANK

Middletown, Delaware, Institution Goes Into Hands of Examiners

MIDDLETOWN, Del., Dec. 14.Following a 24-hour run, the People's National bank at this town closed its doors at 1:15 p. m., today. The bank is capitalized for $80,000 and has $500,400 in deposits. The bank bas been turned over to William P. Baker, national bank examiner of the federal reserve bank of Philadelphia, who arrived here early today. Rumors which have not been verified are held responsible for the prolonged run which led to the closing of the bank.

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RUN CLOSES BANK

Middletown, Delaware, Institution Goes Into Hands of Examiners

MIDDLETOWN, Del., Dec. 14.Following 24-hour run, the People's National bank at this town closed its doors at 1:15 p. m., today. The bank is capitalized for $80,000 and has $500,400 in deposits. The bank has been turned over to William P. Baker, national bank examiner of the federal reserve bank of Philadelphia, who arrived here early today. Rumors which have not been verified are held responsible for the prolonged run which led to the closing of the bank.

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BANK CASHIER'S BODY FOUND

MIDDLETON, Del., Dec. 15 The body of Watson Betts, the closed People's National Bank Middleton, was found today in Drawyers creek, near here.

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MIDDLETOWN'S CLOSED BANK Encouraging Reports Made That Peoples' National Will Pay Dollar for Dollar, But May Take a Year James W. Swan has been appointed permanent receiver for the People's National Bank at Middletown, which closed its doors about two months ago. Mr. Swan succeeds William A. Baker, who took over the affairs of the bank at the time of its closing. The bank examiners who went over the affairs of the bank have completed this work, but SO far no public statement has been made concerning the financial status of the institution. It was,however, stated on authority that the new receiver has asked for an assessment from the stockholders of the bank. The par value of the stock is $100 per share. Until a report has been received from the bank examiners, it was stated that no definite statement can be made regarding what amounts of funds will be returned to the depositors. J. Pearce Cann, attorney for the bank, stated that due to the outstanding loans it would require some time before the accounts can be closed. These, however, will be collected as they come due. To force the collection of these notes rapidly would in many cases depreciate the probable returns and defeat the very end desired, full payment. The only solution Mr. Cann said is the gradual payment voluntarily as they are due, and in some cases before, by the borrowers. Some of the notes are obviously not based on sufficiently valuable or sound collateral, but it is considered that the greatest number of them will eventually result in the payment of substantial dividends to the depositors of the bank. In addition to the money due on the notes, sooner or later, there is also a definite amount due from the stockholders of the institution, should the amount collected from the notes fail to reimburse the depositors. The stockholders, of course, lose the amount the stock is worth, but in addition in accordance to the laws governing national banks they are also liable for an additional amount equal to the par value of the stock, which in the case of the People's National Bank of Middletown, is $100 a share. Some of this cannot be collected, but it is estimated that eventually sufficient funds will be secured to pay the depositors a large percentage of their deposits if not in full, but it will take at least a year to do it.

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MIDDLETOWN BANK TO MAKE FIRST DIVIDEND Receiver Of Closed Institution Announces The Settlement Of Claims Soon. J. M. Swan, receiver of the closed People's National Bank of Middletown, has announced that a first dividend payment in the amount of 33 1-3 per cent will be made to creditors whose claims have been approved, possibly within the next week. Dividend checks and schedules were recently completed and mailed to the office of the Comptroller of the Currency at Washington, where they will be signed and returned to the office of the receiver for distribution. This payment will release in the Middletown community considerably more than $100,000, and it is understood that in addition to this sum, liabilities of the bank by way of secured creditors, have been taken up for more than $125,000. The creditors of the People's National Bank are being congratulated on their ability to obtain a first payment of one-third of their deposits within the short period of five months from the time of the closing of the bank. Additional payments will be made at such times and in such amounts as the funds accumulated by the receiver will warrant. The People's National Bank closed its doors to business on December 14, 1928. William Baker, national bank examiner, was placed in charge and remained there until January 18, when he was relieved by Mr. Swan who has since had the management of the affairs of the corporation.

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CHECKS PREPARED BANK RECEIVER

Villiam A. Mayor Announces Hold Memorial Day Service.

(Special to Every Evening.) May the People's National Bank of this town. Alonzo Tweedale, has ed that checks in payment of 10 per depositors been and forwarded to the comptroller the for As are to the local bank they be sent to the proper perWilliam A. Mayor. of Middletown his county commissioner for the district representing and Pencader hundreds Mr. Mayor is Republican The Business Women's Club of Midat the home of the Miss Helen Shallcross, at their regular meeting. and after short business meeting, the several guests were invited play bridge There tables of players, and Mrs. Gladys Shivery recent bride won prize. Miss Gladys Hopkins won and third prize was awarded to Miss Lillian During business meeting. the the resignation with gret of Mrs. Jeanette Beaston, program Mrs. Beaston was compelled resign due to illness was agreed to hold at least one social meeting each month during

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MIDDLETOWN BANK TO YIELD 10 PCT PAYMENT Makes Total Distribution To Date 431/3% Following Close Dec. 14, '28 Creditors of the People's National Bank, at Middletown, which went into the hands of a receiver, after it closed on December 14, 1928, are to receive an additional 10 per cent on their depositors. The receiver, Alon. ZO Tweedale, has forwarded the checks to the Comptroller at Washington, and as soon as they are returned, with that official's approval, they will be distributed to depositors and other creditors. The first and only payment heretoforo was of 33 1/3 per cent which was announced on May 16, 1929, and subsequently made by a previous receiver, J: M. Swan. By that first dividend approximately $100,000 was released and distributed, the largest check being for $6,000. Naturally this new ten per cent division, which is less than one-third of the original amount will be proportionately less but it will, nevertheless, be welcomed by those who have for so long been waiting for money which has been tied up by the failure of the bank. Mr. Tweedale said that his forces are still at work endeavoring to realize on all possible assets and [Turn to Page 9, Please]

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BANK TO PAY TEN PER CENT People's National Bank, Middletown, Makes Distribution Creditors of the Peoples' National Bank, Middletown, which went into the hands of a receiver, after it closed on December 14, 1928, are now receiving an additional 10 per cent on their deposits. The first and only payment heretofore was of 33 1-3 per cent which was announced on May 16, 1929, and subsequently was made by a previous receiver, J. M.Swan. By that first dividend approximately $100,000 was released and distributed, the largest check being for $6,000. Naturally this ten per cent division, which is less than one-third of the original amount will be proportionately less but it will, nevertheless, be welcomed by those who have for so long been waiting for money which has been tied up by the failure of the bank. Mr. Tweedale said that his forces are still at work endeavoring to realize on all possible assets and hope to be able to have a further division as soon after the 10 per cent checks are distributed as is possible. Just how long this may be, he would not venture to say.