gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
075a5b6afbf9c310
Response Measures
None
Events (1)
1.March 8, 1926Run
Cause
Rumor Or Misinformation
Cause Details
Exaggerated rumors linking the bank to financial difficulties of its president M.R. Hoffman triggered withdrawals.
Measures
Lancaster Clearing House guaranteed deposits; large depositors and directors (A.B. Rote, others) supplied cash; State banking examiner investigated and certified solvency; bank kept doors open to meet demands.
Newspaper Excerpt
Slight run on the Union Trust Company brought about by misinformation, officials sound, they declare.
Source
newspapers
Newspaper Articles (10)
1.March 8, 1926Lancaster Daily IntelligencerLancaster, PA
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Article Text
Clearing House Stands By Trust Company
CLEARING HOUSE AIDS UNION FUND
Guarantees Every Depositor in Union Trust Their Money
STATE 0. K.'s UNION
The banks of the city, composing the Lancaster Clearing House Association with assets of $43,000,000 today guaranteed every depositor of the Union Trust Company their money. In a statement issued at 3 o'clock the Clearing House Association not only guaranteed every depositor their money issued a statement from the State Banking Department that the Union Trust Company is solvent. The full statement follows: To the public: Whereas the member banks of the Lancaster Clearing House Association believe that the Union Trust Company is solvent and that its as. sets are more than sufficient to pay its depositors in Therefore. be resolved that the Clearing House tion the banks composing sance pledge their aid to the Union Trust Company to the end that pay all obligations to and that this resolution be announced to the public of city and In today by the chairman of the Clearing House Association the of banking at the information was obtained that the Union Trust Company good, solvent. sound condition. its capital unimpaired. and that there no good renson for any of its depositors to withdraw any of their money on Signed: Farmers Trust Company Fulton National Bank Conestoga Bank Laneaster Trust Company Peoples Trust Company Union Trust Company Guaranty Trust Company John Carter, chairman: Chester Jackson, Lancaster Clearing House Association.
2.March 8, 1926Lancaster Daily IntelligencerLancaster, PA
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Article Text
ROTE TELLS PEOPLE UNION IS PERFECTLY SAFE
By closing time very large crowd had gathered before the bank. Depositors were clamoring for their money. Other depositors were urgIng the people not to be excited as the bank was all right. A. B. Rote, one of the Union Trust Company directors, and one city's richest and the man who paid the Income tax In Lancaster County year the crowd in : follows: Union Trust Company solid rock. give you that word of honor. am large my stockholder and depositor and would not tell you were not true. rumor that the bank is not safe due one the official the company and the The does not carry any large loans for individual and will pay dollar for dollar any While the depositors were fighting to get to the windows to get their friends of the bank right and left. of Police Walter ong has the men since he went into the business nosed his way through the crowd and deposited roll enough choke mule. The big was said to be more than $5,000. Mr. Rote. on the of Edward Mateer the bank shortly before closing time this afternoon not the depositors of the dollar for every dollar they deposited but also stated that the bank stood ready to pay three for one necessary. He stated that there no need for excitement and added that he the bank the amount of and stood ready to place $150,000 dollars necessary and that enough to add plenty million and half. to the amount of are going to run the culprit the ground started the rumor the this It that caused on and we are offering is reward the he or she who started the name the shameful story." closed amid shouts and rounds He from the milling crowd of applause seemed satisfied and majority left for home.
3.March 8, 1926Lancaster New EraLancaster, PA
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No Basis To Rumors, Union Trust Declares
Slight Run on Local Bank Brought About by Misinformation, Officials Sound, They Declare.
As result of rumors afloat throughout the city Sunday and early slight the Union Trust Company during today there was a run on the late morning and early afternoon hours. It failed to gain momentum, however, as bank officials and the large depositors in the company explained the facts to those who were temporarily alarmed by the reports that had come to them. Union Trust Company is in absolutely sound financial shape and there no basis whatever for rumors that it is insolvent," B. Brandt, vice president and treasurer declared early this afternoon. "We prosperious never better in the history of the institu-
For several meeting of the institution, was held, been circulted that the trust company was involved. Hoffman heavy borbank,' Mr. Brandt deat are carrying less than on loans to about o'clock this mornFrom degoing to the bank draw out their accounts. Over hour the crowd took the noon was swelled larger by regular weekly somewhat depositors, whom savings their despoits on Mondays. of the larger in in the were on hand, well officers the they explained facts who come with many intention of their funds turned around and left without clear to them that the temporary was due exaggerated rumors, and largely understand the situaWhen this was they the impulse joined those who are stopping the furspread of rumors. circles throughout the Financial city generally were inclined to view the situation pointing that nothing fear vided the plainly those Nothing will help clarify believed, than plain statement ering the source of the rumors related The institution's officials adopted that the light will die end there time to present the and "sober Addresses Crowd. An address crowd in front bank Rote, ably the this afterthat the bank perfectly solvent can pay $3 for every on deposit Mr. Rote all the money needed hand meet claims.
4.March 9, 1926The Gazette and DailyYork, PA
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Article Text
LANCASTER
Officials Of Union Trust Company Call On Federal Reserve For Aid
BELIEVE RUN IS CHECKED
Lancaster, Mar. the Union company that the fidence their ability Hess, repthe and the institation, another from the federal bank in Philadelphia tonight assurance be when the bank opens tomorrow. The Lancaster Trust company, the largest house this city, reported to use the condition among the Toseveral passed resoluexpressing their confidence in the the institution and placed windows the center
Guarantees Money Andrew director, circuamong the crowd afternoon $50,000 cash his pocket assuring depositors clamoring to get Inside their funds When from his plant arrived cash their certificates of deposit Rote back guarpay cent they lost. The started after that Hoffman, had become spread LanHoffman tonight that he would be to handle his debts and insisted that of Hoffnotes are among assets
5.March 9, 1926Lancaster Daily IntelligencerLancaster, PA
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RUN ON UNION TRUST COMPANY ENDS QUICKLY
When Everyone is Jovial, Clamor Subsides-Stacks of Cash Today
HOFFMAN MAY RETIRE
Lancaster's temporary bank run of yesterday diminished to the commonplace today. One hundred and fifty-two thousand dollars withdrawn in four hours from the Union Trust company yesterday afternoon by about 400 excited depositors insignificant today compared to $440,000 in green and gold notes stacked up high on table behind the cashier's window.
OFFICIAL STATEMENT ON UNION TRUST CO.
The run on the Union Trust is over. It was unjustified and without cause. The has ever since the opening day been more than able pay all the depositors in full. The loans to the directors are far below the amount allowed by law. The assets are clean. The last sale of stock was $230% per share, and that price was justified by the books. The par value is $100 per share There is no financial Institution in the that is in sounder financial The State Banking Examiner as late as midnight on March 8, stated that the was in first class condition. We are ready to meet all demands Our receipts on March were almost equal to our payments.
(Signed) JOHN M. GROFF, Attorney for Union Trust Co.
Combined with this reassuring paper which said to have the ability "talk" the depositors of the institution have the assurance of W. H. Soule, state bank examiner that conditions at the bank are "excellent." the situation Is the relterated action of the Lancuster Clearing House association last night that they endorse the solid condition of the Union Trust company and guarantee that said trust is perfectly solvent, The bank officials preparing today readjust their official organization through which the misunderstanding regarding the bank's status was begun. The run on the bank yesterday begun following or unsubrumors spread innocently by the "grapevine" which usually gossip fast. The rumors out of personal financial difficulties of M. R. Hoffman of Maytown, president of the Union Trust company. Mr. Hoffman's financial affairs have been mored for the past two weeks and on Friday he was takover by his creditors the gossips unfortunately connected his personal affairs with the affairs of the bank. (Continued on Page Seventeen)
6.March 9, 1926Lancaster New EraLancaster, PA
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Article Text
ATTORNEY FOR BANK DECLARES ASSETS CLEAN, "RUN" UNJUSTIFIED
Officials of the Union Trust Company through their attorney issued the following statement at noon: The run on the Union Trust is over! "It was unjustified and without cause. The Company has ever since the opening day been more than able to pay all depositors in full. The loans to the directors are far below the amount allowed by law. The assets are clean. The last sale of stocks was $2301/4 per share, and that price was justified by the books. The par value is $100 per share. There is no financial institution in the state that is in sounder financial condition. The State Banking Examiner as late as midnight on March 8 stated that the Company was in first class condition. We are ready to meet all demands on us. Our receipts on March 8 were almost equal to our payments. (Signed) JOHN GROFF. Attorney for Union Trust Company
7.March 9, 1926Lancaster New EraLancaster, PA
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EARLY EDITION EFFECTIVE AID
S. S. S. Store Calms Union Trust Depositors With PlaCo. Helps.
Officials asd employes of the firm of Sayres, Scheld and Sweeton helped stop "run" upon the Union Trust Company Monday. The who asisted In the work found early edition of the Lancaster New Era an effective means of reaching the depositors. Early Monday morning when the first rumors began filter through business circles. president store went the and investigation the Convinced was splendid Mr. the receipts of his store in bank. the the bank assumed store they knew the institution warned become Store mingled with the crowd and assured depositors store perectly to behind Trust company The New the solvent. The page copy this edition was placed the store much Many the store the titude. the bank had found good many the declared they willing to the and left their deposits One woman money from and asked the store to place his vault. He expressed willingness grant request, but induced woman to return the money the Piersol Company, adjoining the the also to the fact that the firm had the sound financial condition the
8.March 9, 1926The News-JournalLancaster, PA
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Union Trust Run is Over; State Approves Reports; Depositors Get $152,000
$600,000 Available To Meet Any Demands Made This Morning; Doors Kept Open Until M.; Exaggerated Rumors Cause Trouble; City Banks Aid
Many Make Re-deposits Soon After Withdrawing Money; Most of Cash Taken Out is From Small Accounts and Christmas Funds; Clearing House is Co-operating
Conditions at the Union Trust company were found excellent by an official of the State Department of Banking who investigated the run on the local institution early yesterday afternoon. M. H. Soule, department examiner, declared last night that depositors have no cause worry and that the Union Trust will have sufficient reserve funds, in excess of $600,000, to meet demands when the bank this morning. all opens The run, starting at noon because of rumors connecting the institution with alleged financial difficulties of its president, M. R. Hoffman, Maytown, was virtually ended at 4 o'clock. Doors were kept open until 6 o'clock for a few stragglers.
9.March 9, 1926The News-JournalLancaster, PA
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TRAFFIC STORM
A. B. With $50,000 Cash In Pocket, Sways Depositors QUICKLY ENDED RUN temporarily halted on street yesterday afternoon East King 300 and 400 depositors when Trust milled of the Union and the street about the their turn withdraw awaiting funds from the institution. though large and talkaThe crowd. noisy boisterous. were serious Instead. its members making sure that and intent upon their life savings were taken from bank which, though altogether sound and solvent, was experiencing Confident Trouble that president, troubled just though that involved. ion Trust company their state mind after founded rumors had gained the Union Coming Trust, and went the explaining the determined play Mainly the lost its Sways Cash $50,000 his With city's of and the steps mob his sound the should and Union is solid that honor. would and his famthan in the that taking any he deposit from $150,000 Hearing this minutes learning that the Clearing House was backing the the crowd leaned other decided to keep their the crowd died suddenly summer then until o'clock persons their money from although dreds entered the bank from time to time. In almost Instance anxiety changed confidence. Officer Eberle many dozens departed in of announcement made the crowd while its reward will be offered for mation leading arrest the the person penitentiary body convicted of such deed.
10.March 10, 1926The Anderson HeraldAnderson, IN
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BOYS ASSEMBLE FOR FIRESIDE
Enjoy Diamond Movies Other Activities of Boys at Y Tuesday. boys assembled at the Young Mens' Christian Association last, night to witness the Fireside Hour. Fifty slides on the gold and diamond mines Africa were shown. This proved of much interest to the boys. Conversation and refreshments formed the nucleus of the social hour. The boys' Work Committee met yesterday evening Regular business was discussed. The Junior A Bible, class convened with Mr. McHarry last night. The session was spent in regular Bible instructions. The attendance was fair. The Aquatis Club will meet this evening at 7:00 m. in the Mens' Assembly. Regular swimming praetice will be held Thursday even. ing from 7:00 m. until 8:00 o'clock.
PIRATES SCALP NDIJANS. The Pirates defeated the Indians in three well played volleyball games the gymnasium yesterday evening. As result of their victories the Pirates practically cinched the honors for first place. Line-up and scores as follows: Pirates. Indians. Grinnell Cookson Rodecap Steck Coffin Crunk Wilson Goldsmith Patterson Carson The scores are 15 to 10; 15 to and 15 to 11. The will play the Quak ers next Thursday evening.
RUN ON BANK Pa., March Union Trust Company of this city transacted as usual today, following slight run on the institution yesterday. Rumors that the institution was in unsound condition spread rapidly and many depositors withdrew their funds. statement by the Lancaster clearing house association that it would stand
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.
