Second National Bank (Elkton, MD)

Article Text

ELKTON BANK CLOSES DOORS; RUN UPON IT Demands Upon Institution Cause It to Suspend This Afternoon ASSETS AMPLE TO PROTECT DEPOSITORS The Second National Bank of Elkton, Md., closed its doors at 2 o'clock this afternoon. It was found necessary to close, according to William T. Warburton. president, because of a run upon the bank. President Warburton said: "The Second National Bank of Elkton on account of a run made upon it closed its doors at 2 o'clock this afternoon. On account of some slow investments and while negotiations were pending for a consolidation with another bank in the town, rumors were circulated which caused the run. e "The assets are ample to secure the depositors and the bank will be reorganized and opened again for business." It has been known that Government auditors have been going over the books of the bank for days past. The Second National Bank was started about thirty years ago by the late William M. Singerly, of r Philadelphia.

Article Text

PROBE AFFAIRS OF ELKTON BANK Examiner in National Charge of Institution That Closed Yesterday DEPOSITORS SAFE, PRESIDENT SAYS Special to The Evening Journal. ELKTON, Md., Jan. 21.-"This bank closed by the Board of Direa tors. The National Bank Examiners have taken charge." C.A. STEWART, National Bank Examiner. This notice was placed on the door of the Second National Bank of Elkton, which closed its doors at 2 o'clock yesterday afternoon, after a run on the bank for several days. The bank was organized about 30 years ago by William M. Singerly, of Philadelphia, owner at that time of the Philadelphia Record, and who owned a large paper mill here. William T. Warburton, president of the bank, was also one of the organizers. Mr. Warburton is an attorney. There have been many rumors relative to the cause of the trouble. It is reported that the bank holds about $125,000 of the bonds of the (Continued on Page Two.)

Article Text

PROBE AFFAIRS OF ELKTON BANK Continued From First Page.) Gilpin-Falls Light and Power Company, of which company the president of the bank is also president. This company, which has a plant near Bay View, furnishes electric current to Elkton, North East and other towns and was reported to have been sold some days ago to the Susquehanna Power Company There have been rumors of efforts of this bank to merge with either the Elkton Banking Trust Company or the National Bank of Elkton but it is now said that such a plan will not likely materialize. President Warburton at the time the bank was closed yesterday, issued the following statement: "The Second National Bank of Elkton, on account of a run made upon it, closed its doors at 2 o'clock this afternoon. On account of some slow investments and while negotiations were pending for a consolida tion with another bank in the town, rumors were circulated which caused the run "The assets are ample to secure the depesitors and the bank will be reorganized and opened again for business." It has been known that the bank's affairs have been under investigation for several days The original investigation was conducted by Joseph A. Genau, an agent for the Department of Justice instead of by a national bank examiner Normally such inquiries are handled entirely by the Treasury Department, but it is understood that Mr. Genau was sent to Elkton at the request of one of the national bank examiners. What Mr. Genau discovered has not been announced. He left Elkton during yesterday and reported to his chiefs in Washington They, however, declined to comment in any way upon his activities or the reason for the entrance of the Department of Justice into the case. Charles A. Stewart, national bank examiner, however, arrived last evening, a few hours after Mr. Genau's return to Washington Chief Examiner W J. Schechter is due to arrive today, when he will take charge of all affairs in the bank. Neither here nor in Washington was there any forecast of probable action, either as to the time when the bank will reopen or the condition which will be disclosed. It is assumed that the examination of the books will require several days. The run, according to W. T. Warburton, president of the bank, was due to the circulation of "malicious", reports of insolvency, owing to certain holdings of bonds by the instiI tution of the Gilpin Falls Light and Power Company, of which Mr. Warburton is also president. Washington advices say that the c Comptroller of the Currency had ordered the bank to dispose of the $125,000 of bonds of the light and power company held by the bank. a will Reorganization of the bank n take place according to Mr. Warburton. "It perfectly true," said Mr. Warburton, 'that we hold bonds of the Gilpin Company but there was nothing in this which should have caused the bank's creditors any uneasiness. We had arranged to hold a meeting tomorrow with officials of another bank in Elkton looking to a merger of the two institutions. Malicious gossip, however, about concerning the Gilpin con- got cern, which resulted in the run. "To protect the bank's best ests we were compelled to close inter our doors. Should the merger as proposed not roethrough we have in mind a reorganization which will protect every interest of the bank, and no depositor need feel alarmed. The assets of the institution ample to meet all emergencies we are given the opportunity to adjust conditions." The run went on quietly, as few had heard It before the bank closed The directors of the Second National Bank were William T. Warburton, Russell J. Reed. Oliver C. Giles, John Lungren and C.H. Johnson. Mr. Warburton was presiit dent, Mr. Giles vice-president, and Mr. Johnson cashier. The report of the condition of the e bank at the close of business. December 31, last, follows: r Resources Loans and discount. $254,944.32 n notes and bills rediscounted, $214.d 953.75; overdrafts unsecured. $2.199.54; United States bonds deposit ed to secure circulation, $12,500; all other United States government securities, $17,500; other bonds,stocks securities, $146,440; banking house reand fixtures, $14,796.22 lawful serve with Federal Reserve Bank $5,535.46; cash in vault and net amount due from national banks $10,997.76; checks on other banks $1,026.18; checks on banks located s outside of city, $528.10; redemption fund with United States Treasurer $625. Liabilities Capital stock paid in, $50,000; sur. plus fund, $10,000; undivided profits $11,689.82: circulating notes out standing, $12,500; amount due Fed. net id eral Reserve Bank, $6,597 as amounts due to banks, bankers and he trust companies in the United States 0$5,000; certified checks outstanding ed $53.21; cashier's checks on own bank en outstanding $15; individual depos d its subject to check, $145,111.92; cer Vtificates of deposit due in less than 30 days, $63,833.20; dividends for d bills ng id st ed, than paid. posit $82,632.55; other $1,278.50; than certificates money payable borrow of othe un de with Federal Reserve Bank

Article Text

ELKTON BANK MAY BE REORGANIZED Special to The Evening Journal. ELKTON, Md., Jan. 23.-President W. T. Warburton of the Second National Bank which closed its doors Friday afternoon after a run on the bank, has announced reorganization of the bank will be effected at a meeting to be held this week. It is rumored that reorganization will be a group of men who will buy the bank. Sales of the franchise of the Gilpin Falls Electric Power Company to the Northern Maryland Electric Company also was announced. This deal, it was said, will release $125,000 which the bank holds in bonds of the Gilpin Falls company. The contract of sale, according to Mr. Warburton, calls for these bonds to be lifted February 15. Federal bank examiners have not completed their examination of the affairs of the bank.

Article Text

SECOND ELKTON BANK MAY BE REORGANIZED President Warburton and Others Confer With Baltimoreans on the Project. Special Dispatch to Every Evening. Elkton, Md., Jan. 23.-The Second National Bank of Elkton, which suspended business last Friday afternoon, was still closed today. National Bank Examiner C. A. Stewart and assistants were engaged today in auditing the bank's finances. When the schedule is completed they will send it to the comptroller of the currency at Washington. William T. Warburton, president of the bank, accompanied by Omar D. Crothers and John Scott. went to Baltimore today to confer with Baltimoreans regarding a reorganization project, and are expected to not return until tonight. It is possible that a reorganization will be held tomorrow. A bank official said that the depositors had accepted President Warburton's statement that they would not lose a dollar, and consequently everything is quiet at the institution today. The bank examiner stated that several days will be required for making the audit, but he could not tell exactly how long it would take. Whether the bank will reopen Friday or Saturday, as intimated by President Warburton, is uncertain. The opening will depend on time necessary for the audit, and the result of the re-organization conference held in Baltimore today. The bank examiner said the institution may reopen in a month and possibly within two weeks. He could not fix a more definite time for the reopening. No banks in adjacent towns are branches of the Second National Bank of Elkton. Former Sheriff J. W. McAllister also went to the Baitimore conference today. All the directors of the Second National Bank are non-residents of Elkton. except President Warburton and Vice-President Oliver C. Giles. The latter became a director two weeks ago, succeeding Samuel J. Keyes, president of the Keyes & Miller Lumber Co., who resigned from the directorate a short time previously. Mr. Keys said he resigned from the board of directors. and the vice-presidency of the Second National, late in December. In explanation of his resignation, he said he resigned because he wished to devote all his time to the affairs of the Keys & Miller Lumber Co. Francis D. Baldwin and Messrs. Chamberlain and Chillas, representatives of Dun & Co., came here today, to obtain commercial information regarding the town. Many rumors were circulated today, but could not be traced to a reliable source. Among the bank depositors, It was reported, are Elkton churches and fraternal societies. Rev. Daniel F. Lockerbie has $1,000 deposited in the bank, it was learned today.

Article Text

WORK ON PLANS TO OPEN BANK

Many Depositors Hard Hit by Closing of Elkton Institution CANNOT GET IN SAFE DEPOSIT BOXES Special to The Evening Journal ELKTON, Md., Jan. 24.-The suspension of the Second National Bank of Elkton is causing hardship among many depositors. One merchant says all the money he has in the world is in the bank. and his bills are now coming in. To pay them he will be obliged to borrow which will seriously inconvenience him. Many poor persons whose total savings of amounts up to a few hundred dollars. are in the bank and cannot be secured just at a time when the money is urgently needed. One old Negress, by hard work, who had saved $150 which is in the bank is almost heartbroken at the prospect of losing even a portion of it. Another great inconvenience is that holders of security boxes cannot have access to their belongings. although there may be urgent haste for valuable papers. A meeting was held last night in the office of Omar E. Crothers. at which plans were discussed for reopening the bank which suspended I business Saturday afternoon after a "run" had been made on the instition. William T. Warburton president of the bank; his son, State's Attorney Henry A. Warburton, Omar R. Crothers, Charles P. Bartley. E. Kirk Brown. J. Wesley McAllister. John W. Scott, Frank B Evans and Reginald Constable were in Baltimore yesterday conferring with Baltimore financiers regarding the taking over the assets of the bank. C. H. Stewart. bank examiner, and his staff of assistants, are auditing the books of the bank. This will y take several days. after which they will report to the comptroller of currency at Washington Whether f the bank will reopen on Friday or S Saturday of this week, as predicted by President Warburton, is unr certain. Bank Examiner Stewart would not fix a date. saying "It all t depends on the audit and the oro ganization plans. which will have :to be approved by the comptroller. al Last night's meeting was attended al all bank officials but Mr. Warbur 11 by ton. A statement was issued tha the bank was perfectly solvent. pt Mr. Warburton said that every de of positor would be paid dollar for kdollar, and that the only bad in in vestments are the slow paying ay papers, which naturally require he some time to be of value. SAnother meeting will be conduct etoday to look over the bank's d documents ed and to see if any really tbad paper is being carried by the institution. h Efforts are being made to get new capital interested in the reorganiza tion plans. e

Article Text

PRESIDENT OF CLOSED BANK SERIOUSLY ILL Special to The Evening Journal. ELKTON, Md., Feb. 8.-William T. Warburton is reported to be critically ill at his home on East Main street. He was compelled to go to bed yesterday and two physicians were with him the greater part of the day. Mr. Warburton was president of the Second National Bank of Elkton, whose doors were closed about three weeks ago after a "run" on the institution by depositors. Mr. Warburton has been assisting the bank examiners since then, also working upon a plan for reorganization and the strain, it is said, resulted in his collapse.

Article Text

ELKTON HAPPENINGS Special to The Evening Journal. ELKTON Md., Feb. 11. Union Hospital, Elkton, has been presented with a blood pressure testing machine by the members of the Fourth District Auxiliary. The continued illness of William T. Warburton, president, prevents any adjustment of affairs of the Second National Bank of Elkton, which suspended on January 20. A valentine social will be held in the town hall of Principio Furnace on Tuesday evening.

Article Text

Elkton Bank Crash g Topic of Discussion M t Report That Depositors Will A Demand Action on Status S -Receiver Looked For A Things have reached such a point in the affairs of the defunct Second t National Bank of Elkton, that the i people there who had money in the institution are rumored to have demanded that some definite step be taken SO that they may know how things stand. According to a rumor that had its round in the town last night the depositors are making plans for calling a meeting and demanding that the responsibility for the crash be fixed. It is a known fact in Elkton that many notes were found in the bank discounted by townspeople who positively denied ever having discounted them. The discovery of this condition has caused those who had deposits in the bank to make further investigation of conditions. It was reported on good authority this morning that a receiver was to be appointed to take over the bank. The matter of certain people of the town running the bank has lost its hold and it is understood that these persons who were reported ho have had an idea to take over the bank have "backed water." William T. Warburton, president of the bank, is critically ill at his home and last night's report was that he was not expected to live. William Trimble, of Wilmington, is visiting Elkton relatives. Mrs. Archibald Caddell has removed from Chesapeake City to Philadelphia. Mrs. Martha Porter, of Wilmington, was a guest this week of her sisters, Misses Mary and Harriet Terroll. Mr. and Mrs. George Gence, of North East, entertained at cards on Wednesday evening. Miss Bessie Hartnett has returned from a short visit to Philadelphia. Mrs. Vernon H. McKnight, of North East, has been spending a few days with her mother, Mrs. Willian W. Burkley. Mrs. Robert Creswell Thackery en tertained the "500" Club on Wednes day evening. Mrs. Arthur Knight, of Baltimore spent Sunday with Mr. and Mrs Joseph B. Conner, near Elkton. Miss Marie Wetherall Taggart, O Washington, is visiting her parents Mr. and Mrs. Edward F. Taggart. Mrs. Florence P: Miller has re turned from a visit to her daughter Mrs. Bixler Weaver, of Philadelphia Mrs. Clarence C. Strickland ha been entertaining her brother, Cha les Scott Hilton, of Baltimore. Miss Bessie Conroy, of Chesapeak City, is the guest of her sister, Mr William T. Malster, of Baltimore.

Article Text

RECEIVER TAKES CHARGE OF

ELKTON BANK

The Comptroller has appointed Mr. R. Gordon Finney, a bank examiner, as receiver for the Second National Bank of Elkton, and he took charge of the institution on Saturday. President William T. Warburton who is said to be largely responsible for the bank's president plight, lies at death's door with practically no hope held out for his recovery. It is freely declared that a large number of paid notes have never been cancelled so that it looks as though a great umber of innocent parties will be losers.

Article Text

W.T. WARBURTON BANK HEAD, DIES President of Defunct Elkton Institution, Expires This Morning FINANCIAL AFFAIRS NOW UNDER PROBE Special to The Evening Journal. ELKTON, Md., Feb. 28.-William T. Warburton, 69 years, president of the Second National Bank of Elkton, which closed on January 20. after a run on the institution. died at his home here at 11.45 o'clock today. The closing of this institution of which he had been president since it was organized more than 25 years ago by the late William M. Singerly and others, was indirectly the cause of Mr. Warburton's death. Federal authorities have been Continued on Page Six.

Article Text

ELKTON BANK PRESIDENT DEAD William T. Warburton, President or Closed Second National Passes Away William T. Warburton, 69 years, president of the Second National Bank of Elkton, which closed on January 20, after a run on the institution, died died at his home at Elkton yesterday morning. The closing of this institution, of which he had been president since it was organized more than 25 years ago by the late William M. Singerly and others was indirectly the cause of Mr. Warburton's death.

Article Text

STRIVING TO HAVE WARBURTON ESTATE GIVEN OVER TO BANK Decision on Application for a Receiver Expected From U. S. Court This Week. OTHER CLAIMS ARE URGED Special Correspondence Every Evening. Elkton, Md., March 20.-Decision in the action brought by Thomas W. Perkins, receiver for the Second National Bank of Elkton, to have n recelver appointed for the estate of the late William T. Warburton, president of the bank at the time of Its failure, will be given during this week. A week ago Receiver Perkins filed a complaint in the United States Federal Court, Baltimore, for n receiver to take over Warburton's estate, and on Saturday the case was heard before Judge Rose. Thomas Kempt, counsel for the recelver estimated there are claims in the wrecked bank against Warburton amounting to more than $150,000. By the terms of Warburton's will, he left an estate valued at between $65,000 and $76,000. The will was made the day following the closing of the bank, and in It he directed that his real and personal property be mold for cash. It WRA provided that the executor pay the Interest earned by the estate to his widow during her life time, and at her death to be divided between his sons, State's Attorney Henry A. Warburton and Charles E. Warburton, share and share allke. Henry A. Warburton WB.H named executor and gave bond to the amount of $76,000. Mr. Kempt contended that as the receiver had been appointed by the Federal authorities, It gave the court jurisdiction and that It was the creditors' right to appeal to an equity court to have the question of priority determined. He further etated that the estate was insolvent at the time of Warburton's death. which occurred February 28, and asked the court to assume jurisdiction, order an ac counting, and appoint R receiver. Former Attorney-General Isaac Lobe Strauss and Former State Senator Omar D. Crothers, attorneys for the executor and other defendants. argued that the real estate is con

Article Text

DATE FOR HEARING IN WARBURTON ESTATE CASE. Counsel for Henry A. Warburton, executor of his fathers' estate, the late William T. Warburton, have filed an answer in the United States Court, Baltimore, to the decision rendered by Judge Rose last week. which was to the effect that it was within the jurisdiction of that Court to appoint a receiver for the Warburton estate. The receivership was asked by Thomas W. Perkins. receiver for the Second National Bank of Elkton, which closed its doors January 20 last. Tuesday, April 18, has been set as the date for a hearing in the case.

Article Text

Memorial Day exercises at Calvert, May 30. R. L. McClintock has been elected president of Calvert Epworth League; Mrs. Helen Foster, secretary; Roger Horn, treasurer. Claude R. Coulborne and Miss Sarah L. Porter of Seaford, motored to Elkton, Thursday evening, and were married by Rev. Daniel F. Lockerbie. The case of Ralph Andrews VS. Receiver Perkins of the Second National Bank of Elkton, which has been the topic of much local discussion, has been compromised.

Article Text

CECIL COUNTY TAX RATE FIXED AT $1.50 Special to The Evening Journal. ELKTON. Md., June 29.-The Board of County Commissioners have fixed the county tax rate for the ensuing fiscal year at $1.50 on the $100. the same rate as during the year just closing. In order to keep from increasing the rate, the Commissioners in making out the annual budget paired down many of the items of expense. For instance, only $35,000 was allowed for repair and upkeep of the county roads, compared with $50,000 last year. For public schools, $120,466 is allowed. compared with $130,000 the past year. It is reported that the local Masonic order has bought the lot on North Main street, formerly owned by the late William T. Warburton, from ) Albert D. Mackey, who purchased it from the receivers of the Second Naional Bank of Elkton, and propose later to have a handsome new temple erected on it.

Article Text

CECIL COUNTY NEWS.

Elkton. Md., July 15.-Associate Judge Wicks has set Tuesday for hearing the marriage annulment case of John W. Montgomery against Peggy U'Dell.

Jerry Green, Negro, aged 60 years, formerly of Cecil county, has been lodged in the Lancaster county jail, charged with attempting to murder his brother, Sam Green, in a dispute over a set of harness.

While Mrs. Samuel Nickerson and Miss Sarah Dean were driving on the State road their carriage was struck by an automobile and both women were injured.

The Central division of the Ceeil County Sunday School Association will meet in Ebenezer Church, near Greenhurst, next Wednesday.

The soldier's hospital at Perry Point has been completed at a cost of $500,000. It will accommodate 300 patients.

Receivers of the Second National Bank will offer for sale next Tuesday the property of the late William T. Warburton, who was president of the wrecked bank.

Rev. Joseph Brown Turner, pastor of Port Deposit Presbyterian church, will leave next week for a three months' trip to the British Isles.

Frank A. Webb, of Wilmington, and Henry Hess, of Fair Hill, have been appointed administrators of the estate of Heister Hess.

Article Text

SEEKS RECEIVER FOR GILPINS' FALLS CO

Special to The Evening Journal. ELKTON, Md., Aug. 25.-Clarence W. Perkins, of Baltimore, has filed a bill in the Circuit Court for Cech county against Henry A. Warburton and wife; Charles E. Warburton and wife; Mrs. Anna M. Warburton and Henry A. Warburton and J. W. McAllister, trustees, and Thomas W. Perkins and Henry L. Constable, receivers, asking the court to appoint a receiver to take over and sell the rights, titles and plants of the Gilpins' Falls Electric Company. Henry A. Warburton and J. W. McAllister are now in charge of the affairs of the company, as trustees, under the will of the late William T. Warburton. A similar bill was filed last month by the same party asking that a receiver be appointed to take charge of the affairs of the Gilpins' Falls Electric Company, and the hearing was to have come up in the Circuit Court here yesterday, but was postponed until September 5. This suit is the outgrowth of the failure of the Second National Bank of Elkton.

Article Text

SIXTY DAYS FOR

CECIL MOONSHINER

Special to The Evening Journal. ELKTON, Md., Oct. 23.-George Williams, who resides on the Not- tingham road, about two miles west of Elkton, and was arrested several weeks ago, charged with manufacturing "moonshine whisky," has been sentenced to sixty days in the county jail here.

Mrs. Philip Ott, of this town, has exchanged her two residence prop- erties in West High street, Elkton, with W. B. Cooney, of Rising Sun, for his hotel property in that town, which is now occupied by her son- in-law, Gerald Dunbar.

Work of laying concrete on the new State road from Rowlandsville, towards Rising Sun, has been commenced by the contractors.

A number of people from Elkton are attending the United States Court in Baltimore, as witnesses in the suits brought by Thomas W. Perkins, receiver for the Second National Bank of Elkton, to recover on notes alleged to have been given to the late William T. Warburton, who was president of the defunct Institution.

Article Text

NEW RECEIVERS NAMED

FOR GILPIN FALLS CO.

T. W. Perkins and J. W. McAllister Appointed Today by Judge Wickes.

Special Dispatch to Every Evening. Elkton, Md., Nov. 2.—Judge L. W. W. Perkins and J. Webley McAllister Wickes, sitting in the Circuit Court of Cecil county, today appointed Thomas receivers of the Gilpin Falls Hydro Electric Company's property near North East, Md.

Interest to the extent of $121,000 is held by the defunct Second National Bank in the electric company's property and the plant will most likely be sold by the receivers in the near future in order that the settling of the bank's affairs may be earned without delay.

The property was owned by the late William T. Warburton, president of the Second National Bank. His son, Henry A. Warburton, and J. Wesley McAllister were named receivers of the property about six weeks ago but as nothing was done to expedite its sale complaint was made and new receivers were appointed today.

Creditors of the bank have been much annoyed by the long delay in winding up the affairs of the bank, which failed last February. If the plant is sold in the near future it is expected that the matter can be straightened out with no further delay and the depositors paid whatever per cent of their money that can be realized on the assets.

Article Text

two of the leading Elkton papers opposing it, the public schools and democracy won out by the intelligence and confidence of a popular vote. The majority was 106. Thus do many and strange things happen. The doors of the Second National Bank of Elkton opened Monday last after a long and most unsatisfactory vacation. To see the crowd around one would think a modern bargain sale was going on or that the officials had opened up a keg of their very best barb wire cider. Sad to relate, neither was the case. It was only a group of beautifully trimmed depositors waiting to get what they could while the getting was ripe. It constituted the first dividend paid by Receiver Perkins and amounted to 10 per cent. Mr. Perkins and his staff were almost buried with the work of paying off the eager depositors. Then he stated for the benefit of all that only a few months more and another dividend would be ready at probably 20 per cent. We are reminded in this case of the old man who walked across the path of a trolley car, was hurled through the air into a horse trough and almost drowned beside having both legs broken. When he was able to talk in the hospital, the first words he uttered were, "Well, folks, it might have been worse." Not long ago we heard a remark e dropped in passing to the effect that e Elkton was a one-horse town of purest ray serene. Furthermore it was stated that the Maryland metropolis had an acute ailment called Backwardness. That's funny. They had y the biggest parade seen in this section for many years last week, are arranging detailed plans for an Armise tice Day Ceremony, and are in line to receive into their midst a well-known book publishing firm as one of their industries. Outside of these items, S, they are opening up the real estate h barrel and enlarging the town. All this without a Board of Trade, too. In comparison to some of its welld known and esteemed neighboring r. towns, we believe Elkton isn't SO terribly far behind. y Mrs. Evelyn S. France, wife of Senator Joseph L. France, is the defendant in a suit instituted by Clara V. W Turner, a former teacher in Tome InS. stitute. The suit calls for $1300 for ialleged failure on the part of Mrs. France to make payments on a life income for services rendered. This nt mix-up added, added to the depressing news of the Senator's defeat for reelection, would seem to make the of France home anything but a harbor A. of joy this week.

Article Text

NEGLIGENCE CHARGED Suit Against Directors of Defunct Elkton Bank Gross negligence in the management of the Second National Bank of Elkton is charged in a suit, instituted in the United States District Court, Baltimore, by Thomas W. Perkins, receiver for the bank, against Samuel J. Keyys, Russell J. Reed and John Lungren, three of its five directors. The other directors were William T. Warburton, president, who died shortly after the bank closed, and C. Hal Johnson, its cashier. The court is asked to require the directors to make good $219,832.12 losses. The directors are charged with declaring and paying semi-annual dividends while the bank had been hopelessly insolvent for several yrs. They are also charged with investing the funds of the bank negligently, with lending the bank's funds to its employees and to borrowers without security.