gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d0472fef273f06b7
Response Measures
Full suspension, Books examined
Receivership Details
Depositor recovery rate
56.8%
Date receivership started
1928-12-14
Date receivership terminated
1934-01-04
OCC cause of failure
Governance
Share of assets assessed as good
55.9%
Share of assets assessed as doubtful
27.4%
Share of assets assessed as worthless
16.7%
Description
The cashier Watson K. Betts was found dead shortly after the run; receiver appointed and bank remained in receivership.
Events (5)
1.July 31, 1883Chartered
Source
historical_nic
2.December 14, 1928Receivership
Source
historical_nic
3.December 14, 1928Run
Cause
Rumor Or Misinformation
Cause Details
Directors said a run began following false rumors about the bank's soundness; depositors withdrew large sums (~$20,000).
Measures
Directors closed the bank; temporarily suspended business rather than raise funds to meet withdrawals.
Newspaper Excerpt
closed its doors ... after a run ... directors stated were false rumors.
Source
newspapers
4.December 14, 1928Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank ordered closed after the run that directors attributed to false rumors; federal examiner took control.
Newspaper Excerpt
When the bank was ordered closed yesterday afternoon by Stephen Newham, chief bank examiner ...
Source
newspapers
5.December 15, 1928Receivership
Newspaper Excerpt
William N. Baker ... appointed receiver for the bank under orders of the Comptroller of Currency.
Source
newspapers
Newspaper Articles (21)
1.December 14, 1928The News JournalWilmington, DE
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BANK
William Baker, a National Examiner. Said to Have Ordered Move.
The People's National Bank Middletown. closed its doors at 1.15 this it was learned from an employ refused to give his name. From another source learned that there had been slight run on th bank during the morning Howwas understood that the institution was apparently meeting all of the demands of its depositors. was also learned that number of the depositors, satisfied that the bank had not withdrawn their William National Bank aminer. reported has been bank today. Every Evening learned from an employ the bank this afternoon that institution was closed. The spokesman refused to give his name and told his questioner "call back as all of the officials are out lunch.' He was asked was true that the bank was cnofirm that all right," he said, closed noon. "Why was the bank closed?" he was asked. "Listen, you're not going to get anything goodbye,' the speaksaid. Then he hung his teleup phone.
2.December 15, 1928The Washington Daily NewsWashington, DC
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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.
3.December 15, 1928The SunJonesboro, AR
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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.
4.December 15, 1928The TimesTrenton, NJ
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CASHIER'S BODY FOUND IN CREEK FOLLOWING RUN
Bank Shuts Doors When Depositors Demand Funds
MIDDLETON, Del., Dec. body of Watson K. Betts, cashier of the People's National 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 Newham, chief bank examiner of the Third Federal Reserve District, there was no suspicions against the cashier, except, possibly mismanagement of the funds which allowed them become tied up "frozen assets" farm loans. When the depositors demanded their money, was found be invested in loans on which cash was not available. found Old DrawCreek bloodstains the car wrecked its apparent last driver attempted sollide with tree near creek. Troopers believed Betts had attempted kill himself the collision the bank was closed. Believing would tempt in creek, they dragged this morning found The bank the largest of Middlebeen more than years. Richard attorney and member the directors the issued the statement on the condition of merger with another gave rumors concerning the soundness the causing number of withare on the porarily any defalcation. The bank believed deposits are tainly safe. Reorganization is now son of the dead school at the University of Pennsylnotice has posted on the doors the marble saying under the control comptroller the currency pending the sources deposits and surplus $35,000.
Press) Del., body Watson closed Peoples Bank found today in Drawyers near Betts' car found by two boys State police that Betts, evidently his way had driven his down and the stream. The rested the mud bank the creek. There blood stains the Betts had been cashier the bank for years. He lived next door the with his wife and Betts was of and vicinity. bank came to Middletown routine remained here and is going over the books Richard farmer and brother cashier. saying that his brother had been some of the bank's money being up in "frozen" which could not quickly realized on.
5.December 15, 1928The News JournalWilmington, DE
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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)
6.December 15, 1928The News JournalWilmington, DE
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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-
7.December 15, 1928The Evening JournalWilmington, DE
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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
CASHIER OF BANK IS FOUND DROWNED
Institution Closed Following Run But Officers Declare It Solvent
MIDDLETOWN, Del., Dec. 15. (AP) body Watson K. Betts, cashier of the closed Peoples National bank of Middletown, was found today in creek, near here. Betts left Middletown several hours before the directors closed the bank and last night his car found on the bank the about four miles from here. evidently had run into Bank Is Closed The bank by the following what were called false rumors. given out that the bank was solvent that business temporarily suspended rather than go out raise money to meet the was stated that an examination the bank's accounts so far had gone did not indicate any shortage of any employe or officer.
9.December 15, 1928The Daily TimesSalisbury, MD
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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.
10.December 15, 1928The SentinelCarlisle, PA
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CASHIER ENDS LIFE
Body Delaware Institution Official Recovered By Troopers NO DISHONESTY FOUND
Del., Dec. The body of Watson K. Betts, cashier of the Peoples National Bank, which closed yesterday after was found old Drawyer's Creek today state troopers. The body found* about o'clock this morning. When the bank ordered closed yesterday afternoon Stephen chief bank examiner of Third Federal Reserve District, there suspicions against the cashier, possibly the funds which allowed them to come tied up "frozen assets" loans. When the depositors demanded their money found to investin loans on which cash was not available. Betts' car was found near the old Drawyer's Creek with bloodstains the front seat. The car was wrecked and from its position, was apparthe driver attempted collide willow tree near creek. Troopers believed Betts had tempted kill himself in headon collision after knew the bank be closed. Believing he would tempt suicide in the creek, they dragwater this morning and found the body. Attorney Issues Statement The bank the largest Middletwo institutions and has been business more than 40 years. Richard Cann, attorney and memof the board of directors of the bank, issued the following statement the bank's condition: was talk of merger with another institution. That gave rise rumors concerning the soundness the bank, causing great number withdrawals. In order to avoid on the bank, the closed There is no indication any The bank is lieved to be solvent and all are safe. Reorganization Winfield Betts, 19, of the dead son man, in the cal school at the University of notice has been posted on the doors of the white marble front the structure saying under the control of the comptroller of the rency pending reorganization. annual financial statement October the bank listed resources deposits, and plus,
11.December 15, 1928The Indianapolis NewsIndianapolis, IN
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CASHIER'S BODY IN CREEK
Officer Found Dead After Closing of Delaware Del., December 15 body of Watson K. Betts, cashier of the closed Peoples National Bank, of was today in creek. near here. Betts Middletown in his autohours before the direcclosed the night his found the from here. It had run intc a The bank was closed on orders of the run had on the following were the completely solvent and business was rather out and raise money to meet the was also did not shortage by any or ofsaid Betts, on way had his car into tree on the the Betts had been bank He the with his wife and uni and was in civic and other
12.December 15, 1928The Daily AdvertiserLafayette, LA
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Find Body Of Bank Official In Creek Today
Car Driven By Cashier Of Closed Institution Apparently Struck Tree
(By The Associated Press) MIDDLETOWN, Del., Dec. 15. The body of Watson K. Betts, cashier of the closed Peoples National Bank of Middletown, was found today in Brawyers Creek, near here. Betts had 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 this city Evidently the car had run into tree. The bank was closed on order of the directors after run which was started, the directors sald, upon false rumThey announced the bank perfectly and that business was temporarily suspended rather than go out and raise funds to meet the run. They also stated an examination of the bank's accounts, so far as it had gone, did not indicate any shortage on the part of any employee or official State police said Betts was evidently on his way to Wilmington and had driven the car down cut-off at bridge and the machine had crashed into tree on the bank of the stream. The front wheels rested in mud and there were bloodstains in the car. Betts had been cashier of the bank for ten years. He lived next door to the bank buildin with his wife and son, a university student, and was prominent in civic and neighborhood activities. A bank examiner who was stated to have come to Middletown on routine inspection trip, 18 remaining here and is going over the books of the institution.
13.December 15, 1928The Brooklyn Daily TimesBrooklyn, NY
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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.
14.December 15, 1928The Brooklyn Daily TimesBrooklyn, NY
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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.
15.December 15, 1928Columbia Daily TribuneColumbia, MO
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BANKER'S BODY FOUND IN CREEK
Cashier Had Left Home Few Hours Before Directors Closed Institution.
MIDDLETOWN, Del., Dec. The body of Watson Betts, cashier the closed Peoples' National Bank Middletown, was found today in Drawyers creek, near here. Betts left Middletown in his automobile several hours before the directors closed bank yesterday night his was found on the bank the creek. about miles from here. evidently had run into tree. The bank closed on orders the directors after run been started institution following directors stated were false given out that the bank perfectly solthat business porarily suspended rather than out raise funds to meet the run. was also stated that an amination the bank's accounts it had gone did not indicate shortage on the part any employe or officer.
16.December 16, 1928The Salt Lake TribuneSalt Lake City, UT
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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.
17.February 6, 1929Smyrna TimesSmyrna, DE
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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.
18.May 22, 1929Smyrna TimesSmyrna, DE
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PEOPLES' NATIONAL BANK OF MIDDLETOWN COMING THRU FIRST DIVIDEND ANNOUNCED BY J. M. SWAN, RECEIVER It is Expected by Cooperation of Debtors and Creditors, Returns Will be Larger Than Expected Creditors of the Peoples' National Bank of Middletown which went into the hands of a receiver after it closed on December 14th, last, : were pleased Thursday when J. M. Swan, the receiver, announced that a first dividend of 33 1-2 per cent would be paid within a week or ten days. This will release about : $100,000 around Middletown. The largest check will be for an amount in excess of $6000. Dividend checks and schedules were recently completed and mailed to the Comptroller of the Currency at Washington, D. C., for approval. They will be signed and returned to the receiver for distribution. They will be available, it is believed, within ten days. In addition to the $100,000 distribution, it is understood that liabilities of the bank in the way of secured creditors to the extent of about $125,000 have been taken up. Official notice will be given by the receiver when the checks may be had. In order for them to obtain the checks it will be necessary for creditors to present their receiver's certificates issued on their claims. Such certificates will be returned with the checks for the first payment. It is felt that the creditors are fortunate in being able to receive one-third of their claims within five months of the time the bank closed. It is claimed that it is frequently a year before a dividend is declared. Frequently these dividends are but a few cents on the dollar. Additional payments will be made at such times and in such amounts as the funds accumulated by the receiver warrant. It is pointed out that the present payment can not be taken as an indication of what the future ones will be. The bank closed on December 14 last when William B. Baker, national bank examiner was placed in charge. He remained there until January 18 when Mr. Swan was appointed receiver and has since been active in handling is not known how long it will take to turn all of the assets of the bank into cash. With co-operation of both the debtors and creditors of the bank it is believed that the final returns will be much larger than was at one time expected. It may also interest the creditors to know that instead of the charge being ten per cent of the total assets of the bank for winding up its affairs, the comptroller's charges include only actual expenses and legitimate salaries, plus one twenty-fifth of one per cent of the actualy assets after liquidation.
19.May 24, 1929Milford ChronicleMilford, DE
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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.
20.May 30, 1930The News JournalWilmington, DE
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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
21.June 18, 1930Smyrna TimesSmyrna, DE
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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.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
