Central Trust Company (Frederick, MD)

Episode Information

Episode UID
65003171581
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
6500317 routing
Routing Number
65-0031
Start Date
September 3, 1931
Location
Frederick, Maryland (39.414, -77.411)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ea3df842407b79e7

Response Measures

None

Description

Directors voluntarily suspended and turned the institution to the State banking commissioner who proceeded to liquidate.

Events (3)
1. September 3, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors cited large holdings of 'frozen' Washington real estate and heavy depreciation of related loans leading to a steady seepage of deposits; directors voted to suspend and place affairs in state hands.
Newspaper Excerpt
Doors of the Central Trust Company of Frederick and 12 branches ... were closed today. Decision not to open the bank was announced following a special meeting of the directors.
Source
newspapers
2. September 4, 1931 Receivership
Newspaper Excerpt
The State banking commissioner took possession of the bank ... assets are to be liquidated and the bank is to go out of business. Page was appointed receiver by Chief Justice Hammond Urner yesterday afternoon at the request of W. Preston Lane, State Attorney General.
Source
newspapers
3. September 11, 1931 Other
Newspaper Excerpt
The liquidation of the assets of the Central Trust Company of Maryland will be proceeded with immediately ... the directorate Wednesday having voted voluntarily to suspend operations and place the bank in Mr. Page's hands. (The bank was organized in 1913 as a State bank to take over the Central National Bank of Frederick.)
Source
newspapers

Newspaper Articles (21)
1. September 3, 1931 Times Herald Washington, DC
Article from Times Herald, September 3, 1931

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STATE TAKES OVER BIG CHAIN Central Trust of Frederick Is Parent Concern; Assets Frozen Because of Slump FREDERICK, Md., Sept. 3. Doors of the Central Trust Company of and 12 branches which it controls in this part of the state were closed today. Decision not to open the bank was announced following a special meeting of the directors of the institution last night. George W. Page, state banking commissioner, has taken possession of the institution and with a staff of deputies and bank ex aminers is investigating the af fairs the parent company and its subsidiaries. Depression Blamed The Central Trust Company had deposits of $2,568,054.71 and resources were listed in the last statement as $18,603,744.61. The bank is capitalized at $1,000,000 and claimed a surplus of $1,500,000. The 12 branches of the Central Trust Company are located in Smithburg. Woodboro, Emmits burg. Thurmont, Union Bridge, ville. Ellicott City Monrovia. Walkersville, and Sykesville Reports that the bank had failed because of heavy runs by depositors were denied by Emory L. Coblentz. president. who said that the directors had decided to turn over the affairs of the institution to the State banking commissioner because of the "continuing business depression. Coblentz. who is also State senator, said there had been "a steady seepage of deposits' due primarily to shaken confidence following "the miserable publicity" to which he had been "personally sub jected in connection with the investigation of the affairs of Washington real estate firm." He was, it is believed. referring to the affairs of the F. H. Smith Company. He is under a perjury indictment in connection with the prosecution by the Der partment of Justice of officials of the real estate concern, failure of which caused losses to thousands With C. Bryan Pitts, president

2. September 3, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 3, 1931

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STATE TAKES OVER BIG CHAIN Central Trust of Frederick Is Parent Concern; Assets Frozen Because of Slump FREDERICK, Md., Sept. 3. Doors of the Central Trust Company of Frederick and 12 branches which it controls in this part of the state were closed today. Decision not to open the bank was announced following a special meeting of the directors of the institution last night. George W. Page, state banking commissioner, has taken possession of the institution, and with a staff of deputies and bank examiners is investigating the affairs of the parent company and its subsidiaries, Depression Blamed The Central Trust Company had deposits of $2,568,054.71 and resources were listed in the last statement as $18,603,744.61. The bank is capitalized at $1,000,000 and claimed a surplus of $1,500,000. The 12 branches of the Central Trust Company are located in Smithburg, Woodboro, Emmitsburg, Thurmont, Union Bridge, Middletown, Myersville, Poolesville, Ellicott City, Monrovia, Walkersville, and Sykesville. Reports that the bank had failed because of heavy runs by depositors were denied by Emory L. Coblentz, president, who said that the directors had decided to turn over the affairs of the institution to the State banking commissioner because of the "continuing business depression." Coblentz, who is also State senator, said there had been "a steady seepage of deposits" due primarily to shaken confidence following "the miserable publicity" to which he had been "personally subjected in connection with the investigation of the affairs of a A Washington real estate firm." He was, it is believed, referring to the affairs of the F. H. Smith Company. He is under a perjury indictment in connection with the prosecution by the Department of Justice of officials of the real estate concern, failure of which caused losses to thousands investors. With C. Bryan Pitts, president (Continued on Page 2, Col. 2)

3. September 3, 1931 Evening Star Washington, DC
Article from Evening Star, September 3, 1931

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FREDERICK IS CALM OVER BANK CLOSING First Excitement Subsides as Runs Fail to Develop at Other Houses. By a Staff Correspondent to The Star. FREDERICK Md., September 3.Excitement used last night by the first reports the one Central Trust Co. of Maryland would not open its doors had subsided today and a feeling almost of confidence had taken its place. There was no disorder, although people stood in groups on street corners discussing the closing. The closing of the Central Trust Co. apparently had no effect on Frederick's five other banks. which continued to do business as usual. Nothing akin to a run developed and no accounts were closed out. Company Pays 450. Trouble that was expected at the Ox Fiber Brush Works, which employs 450 men and pays off through the Central Trust Co., failed to materialize when all the employes were paid at noon with funds drawn from the Farmers' & Mechanics' National Bank of Frederick. News that the Central Trust Co. would not open this morning became general around midnight. Hundreds of people left their homes and congregated downtown in the hope of obtaining definite information. Several automobiles, in which were men who had not taken time to change from their pajamas, cruised through the streets. An extra detail of police was called out, but their services were not required. This morning only one officer was on duty in front of the Central Trust Co. Building at North Market and Church streets. At 9 o'clock, when the bank should have opened, the crowd there numbered less than 50, and at noon had dwindled to hardly more than a dozen. Preston Lane Arrives. Preston Lane, attorney general of Maryland, arrived here and was closeted with State Bank Commissioner George W. Page. His arrival seemed to hearten the people, who felt a reorganization would be effected and the depositors paid off in full. The closing of the bank was a particularly hard blow to the working classes since the trust company has made unusual efforts to obtain small deposits. It is estimated these deposits total one-third of the funds in Frederick banks. A crew of colored men, at work installing a pipe line to the city filtration plant, threw down their shovels and picks and refused to work when they discovered the Central Trust Co. had closed. The North Carolina firm employing them is said to have banked at the Central Trust Co. Many depositors from the outlying farm districts arrived in Frederick this morning, some of them coming from adjoining counties. One depositor who came from Rockville represented the general feeling here. "I have known the Central Trust Co. was shaky for some time," he said, "but I just put off from day to day drawing out my money."

4. September 4, 1931 Evening Star Washington, DC
Article from Evening Star, September 4, 1931

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COMMUNITY BANKS PLANNED BY HEADS OF DEFUNCT CHAIN Conversion of 11 Branches Into Independent Units Sought by Directors. By a Staff Correspondent of The Star. FREDERICK, Md., September 4.-A plan of reorganization having as its principal feature the elimination of the chain system of banking was being considered today by the directors of the Central Trust Co. of Maryland, which, with 11 branch banks in nearby Maryland towns, went into the hands of receivers yesterday. While the directors were struggling with their reorganization plans, the affairs of the Central Trust Co. were in the hands of George W. Page, State (Continued on Page 2, Column 1.)

5. September 4, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 4, 1931

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COBLENTZ BANK WON'T TRY TO REORGANIZE Directors Abandon Plan as Receiver Reveals Assets Be to Are Liquidated FREDERICK, Md., Sept. 4. Plans for reorganization of the Central Trust Company, which, with 12 branches in five nearby Maryland counties, closed yesterday, have been abandoned by the directors following the announcement of George W. Page, State banking commissioner, that the assets are to be liquidated and the bank is to go out of business. Deposits of more than $14,000,000 have been tied up in this county. This includes at least a third of the Frederick county funds. It is not revealed whether these sums are protected by a surety bond, but about $300,000 of State money and $50,000 of Montgomery county funds in the Poolesville branch are protected. Page As Receiver The State banking commissioner took possession of the bank yesterday following decision of the directors to place the affairs of the institution in his department. Mr. Page was appointed receiver by Chief Justice Hammond Urner yesterday afternoon at the request of W. Preston Lane, State Attorney General. Emory L. Coblentz, State Senator, and president of the Central Trust Company, said too large a pr portion of the institution's assets consists of real estate in a "frozen condition." He said: "This is particularly true with reference to the loans of several borrowing companies which have large real estate holdings in Washington, whe.e values have been abnormally depressed."

6. September 11, 1931 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, September 11, 1931

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To speed Action On Frederick Bank. The liquidation of the assets of the Central Trust Company of Maryland will be proceeded with immedrately and as rapidly as possible, George W. Page, State Bank Commissioner, said. The bank's main offices at Frederick City, Md., and its eleven branches throughout Frederick, Washington, Carroll, Montgomery and Howard counties in Western Maryland, did not open on Thursday of of last week, the directorate Wednesday having voted voluntarily to suspend operations and place the bank in Mr. Page's hands. Friday Judges Hammond Urner and Arthur D. Willard, sitting in Frederick County Court, named Mr. Page receiver for the bank and John S. Newman as his counsel, in response to a receivership petition filed by W. Preston Lane, Attorney General, and Willis R. Jones, Deputy Attorney General. "Closing of the bank and its branches was deemed advisable by the directors for the purpose of conserving the assets of the institution and for the best interest of the depositors," Mr. Page said. "The situation in which they found the bank is in no wise a reflection of industrial and agricultural conditions in the counties served by the bank. It was brought about wholly through the institution,s having a very large commitment in Washington real estate which is 'frozen' and cannot be realized upon at the present time." State Senator Emory L. Coblentz, of Middletown, president of the Central Trust Company, in a statement issued after the directors' meeting, had said "As a result of the serious depression through which the country is passing affecting as it does the value of securities' and real estate, the bank finds itself with too large a proportion of its assets in a 'frozen' condition. This is particularly true with reference to the loans of several borrowing companies which have large holdings in Washington real estate, where values have been abnormally depressed." Mr. Page said there had been "a gradual seepage of deposits in recent weeks, but there was nothing of the sort of thing commonly called a 'run.'' A third of the Frederick County Board of Commissioners' funds were on deposit in the bank. John M. Dennis, State Treasurer, said the Central Trust Company was depository for a little more than $300,000 of State funds and that the entire sum was protected by surety bonds. Montgomery County's $50,000 deposit in the bank is similarly protected, said J. Forest Walker, County Treasurer. At the same time that Mr. Page and his deputy, John D. Hospelhorn, took over the bank's main offices, they sent assistants to take charge of the branches at Ellicott City, Emmitsburg, Monrovia, Myersville, Middletown, Poolesville, Smithburg, Sykesville, Thurmont, Walkersville and Union Bridge. Each branch had an auxiliary board of directors. The parent bank's directorate comprised: Mr. Coblentz, Dr. Joseph H. Apple, Lawrence A. Chiswell, William T. Delaplaine, Frank M. Dertzbaugh, Harry L. Ebert, John A. Engle, Thomas B. Hayward, Abram Hemp, John C. Leatherman, R. Rush Lewis, Charles McC. Mathias, Guy K. Motter, Frank C. Norwood, Vernon W. Nicodemus, Benjamin C. Perry, Richard P. Ross. Eli C. Renn. Charles F. Seeger, Dr. William M. Smith, Charles Wertheimer and Harry J. Lebherz. Mr. Norwood was chairman of the executive board. The Central Trust Company of Maryland was organized by Mr. Coblentz in 1913 as a State bank to take over the Central National Bank of Frederick, which dated back to 1808 and was the county's oldest bank. It had expanded rapidly since 1927, adding five branches during that period. Mr. Coblentz, who is 62, had been prominent in Western Maryland business and industry for many years. His financial interests extended to Washington and Philadelphia, where he had real estate holdings. In his statement he said he had placed back of the bank "in various ways practically all of my personal worth." A native of Middletown, Md., educated in public and private schools, he began his business career as a grocer's clerk and did not enter banking until 1887. His rise in banking was rapid. While he worked in that field he studied law and in 1898 was admitted to the bar. Eight years later he was made vice-president of the Frederick and Middletown Electric Railway Company and a director of the Central National Bank, whose president he became in 1908. That same year he organized and became

7. September 28, 1931 Evening Star Washington, DC
Article from Evening Star, September 28, 1931

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Frederick and Hagerstown Failures Are Traced to Central Trust. WITHDRAWALS HEAVY, SAYS COMMERCIAL HEAD Board of Directors Requests State Commissioner to Take Charge Immediately. Special Dispatch to The Star. FREDERICK, Md., September 28.Affected indirectly by the recent failure of the Central Trust Co. of Frederick and its 11 branches, two more Maryland banks and three branch institutions closed their doors today. The institutions which failed to open this morning are the Mechanics Loan and Savings Bank of Hagerstown and the Commercial Bank of Maryland, at Frederick. The latter bank has branches at Adamstown, Jefferson and Mount® Airy, which also were closed. It was understood both of the banks closed today sustained heavy withdrawals of deposits following the closing on September 3 of the Central Trust Co. and its branches, operated by Emory L. Coblentz. Casper C. Cline, president of the Commercial Bank of Maryland, issued the following statement: Board Orders Action. "Foliowing the closing of the Central Trust Co. of Maryland and 11 branches on September 3. various rumors and gossip of a damaging nature have been circulated about this institution, causing large withdrawals and the giving of notices for a very considerable amount of time-deposit money soon due for payment. It was ordered by the board of directors at a special meeting this morning that we request the bank commissioner of Maryland to take charge of the bank immediately. "This action was felt necessary to protect interests of all depositors and stockholders. Notwithstanding the present deflation and unusual depression through which we are passing, we believe the depositors should receive the amounts due them. It is most regretable, indeed, that this action has been found necessary, but every possible effort has been made to prevent it and no other prudent course remains open in fairness to depositors and stockholders. Consideration may be given to a plan of reorganization, but nothing definite can be stated at this time." Capitalized for $400,000. Mr. Cline's bank is capitalized for $400,000 and has resources of $3,200,000. This would make its deposits amount to approximately $2,080,000. A notice on the door of the Mechanics' Loan & Savings Bank stated that "This institution is in the hands of the State bank commissioner." The directors of the Mechanics' Loan & Savings Bank, at Hagerstown, issued this statement: "We announce with regret that we have felt it necessary to suspend the business of the Mechanics Loan & Savings Bank for the protection of our depositors and for the best interests of our many stockholders. During the past two years we have been suffering from the effects of the general depression existing throughout the Nation, and the unusual demands made upon this institution by its depositors have depleted its more liquid assets. "On July 1, 1930, the deposits of our bank were nearly $3,000,000, and at the close of business last Saturday we had on deposit a total of $1,970,632. We have endeavored to be conservative in the management of our institution and have tried to render at all time to this community efficient banking service. "It was impossible to liquidate our mortgages and other investments rapidly enough to meet the unusual demands made upon us, resulting from false and unfounded rumors recently circulated by irresponsible persons. Acting in the best interest of our people and the community at large. we did not feel justified in sacrificing the value of our assets, and our final action is the result of our best judgment in this regard. Although we regret the necessity of this action, we feel confident that with proper and orderly liquidation our depositors will be paid. Henry Holzapsel, president of the bank, refused to make any statement at this time, but it was learned a steady seepage of deposits since the failure of the Central Trust Co. is responsible for the bank's closing. The bank's statement of June 30, 1931, showed resources of $2,950,489 and deposits, both savings and special, of $1,756,730. George W. Page, State bank commissioner, began an examination of the books of both institutions this morning. The Central Trust Co. at the time of its failure held deposits of $14,000,000, about one-third of the total bank deposits of Frederick County. Coblentz blamed frozen assets and "miserable publicity" received by himself in connection with the Federal investigation of the F. H. Smith Co. of Washington for the bank's failure. Coblentz is under indictment in Washington on a charge of aiding in commission of perjury in connection with the operations of the Smith company.

8. April 19, 1932 The Washington Times Washington, DC
Article from The Washington Times, April 19, 1932

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New York Bankers To Aid at Frederick Reports from Baltimore indicate that important financial interests of New York are to become associated in the proposed reorganization plan of the Central Trust Company of Maryland, at Frederick, now in the hands of receivers. It was learned that the Maryland State Bank Commissioner and the depositors' executive committee of the trust company have planned important conferences with New York financiers.

9. May 25, 1932 Evening Star Washington, DC
Article from Evening Star, May 25, 1932

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ATTACK EVIDENCE AGAINST COBLENTZ Defense Attorneys Seek to Strike Out Testimony on Bank Deposits. Special Dispatch to The Star. CUMBERLAND, Md., May 25.-A motion to strike out testimony of the first two witnesses in the case of State Senator Emory L. Coblentz, president of the Central Trust Co., Frederick, charged with accepting a deposit September 2 when he knew the bank, which closed its doors the same day, was insolvent. was being argued today before the full bench sitting in the case Upon the decision of Chief Judge D. Lindley Sloan and Associate Judges Albert A. Doub and Frank G. Wagaman the case will either fall or go on. Isaac H. Taylor, president of Isaac H. Taylor, Inc.. Ellicott City. the first witness, testified to having deposited $316.50 with the Washington Trust Co., a Central Trust Co. subsidiary, on the afternoon of the day of the closing. having sent it by his bookkeeper, Miss Hilda Shipley, stand admitted taking the to the bank, who deposit on the but did not The give it to Mr. Coblentz or see him. defense made exception to all this and moved to strike out the testimony. The court is to decide whether the acceptance was personal or official on the part of Cobientz, President Since 1913. The defense attorneys, upon questioning by State's Attorney James Clark of Howard County. admitted Senator Cobientz had been president of Central Trust Co. since 1913. The witnesses. about 50. all from Frederick and including directors and officiais of the Central Trust Co., were sworn in a group. The opening statement was made by State's Attorney Clark. who told of the increase of capital in the Central Trust Co. from $400.000 in 1929 to $600,000 a short time later. He claimed the stock was syndicated in September, 1929 and agreement was made with Harroleton & Co. of Baltimore, whereby that firm was to take 4.000 shares at $30 a share. Then two subsidiary securities companies were formed in succession-the Central Trust Securities and Blue Ridge Trust Securities Later the Blue Ridge concern bought back the 4,000 shares. paying £180.000. said that the bills the Co. Mr. payable Clark by Central during the bank Trust 1931 increased gradually and had a hard time meeting obligations. In July. 1931, Coblentz and officers went to Baltimore bankers to ask extension of credit and were turned down. The the Central State contended Trust Co., increased assets from of worth $2.- the 500.000 to $5.000,000, were not their book value. Personal Contact Denied. The motion to strike out the testimony is based on the ground "Coblentz had no personal knowledge of deposits made at a branch bank, that he was not present and did not manually accept the deposit." The State admitted Coblentz was not present when the deposit was made. George M. Brady. Baltimore. made the statement for the defense. He Senator solvent the declared opening bank was Coblentz and opportunity the thought closing came so quickly he had no tc advise any one of conditions. He told of strenuous efforts to raise money. The fact that a meeting of bank officials was held in Baltimore caused a run on the branch banks. Brady referred to an indictment in the District of Columbia against Coblents as a party with C. Bryan Pitts in a conspiracy to defeat justice. growing out of the Smith failure. He said Coblentz does not yet know that he was indicted in the District court. exwhat newspapers. a a had He marshal cept has from not nor received he any read official summons in communi- by indicate was indicted, he has go the although cation to offered he to to District and face trial, Brady said.

10. June 4, 1932 Evening Star Washington, DC
Article from Evening Star, June 4, 1932

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TRIAL OF COBLENTZ RESUMES TUESDAY District Realty Expert Called to Tell of Values of Bank's Collateral. Special Dispatch to The Star. CUMBERLAND, Md., June 4.-A respite was declared in the Allegany County Circuit Court yesterday afternoon from the maze of figures involved in the trial of Emory L. Coblentz, president of Central Trust Co., Frederick, indicted- for accepting a deposit when he knew the bank was insolvent. It ended the second week of the trial and the third week, which opens next Tuesday morning at 10 o'clock, will still find witnesses for the State on the stand. It will probably take two more days to hear the State's witnesses and the defense's testimony will hardly start before next Thursday, it was stated. The adjournment was until Tuesday because of the opening of the non-jury term of the Garrett County Court at Oakland, which will require the presence of one of the three judges before whom Senator Coblentz elected to be tried. This term at Oakland is expected to last but one day French Ends Testimony. William B. French, the chief witness for the State, whose testimony had to do largely with placing valuations on the assets of the Central Trust Co. and its subsidiaries, finished yesterday afternoon. French was cross-examined at some length concerning Washington properties connected with the assets of the Central Trust Co. and its subsidiaries. He told of an attempt to "turn frozen assets into liquid assets" by offering $800.000 Wardman real estate notes for $500,000 in bonds. He said also that Senator Coblentz and Grover L. Michael. another officer of the trust company. agreed with him as receiver to sell Washington securities at a discount of 50 per cent for bonds and the proposition was advertised. French admitted an attempt to sell the Gordon Hotel, Washington, in the hope of clearing $75,000 above its indebtedness. Regarding the stock held in the Mayflower Sightseeing Co. of Washington French said: "I couldn't locate anything about it." Value Small. The Clifton Terrace bond trust of $60,000 had a valuation of $19,965.65, according to French's calculation. This was disclosed when he was asked by the defense, "Why did you list Clifton Terrace bonds in your statement as worthless?" State's Attorney Clark said investigation showed that over $3,000,000 worth of Wardman paper alone is held in the securities companies of the Central Trust Co. James D. Hobbs of Washington has been summoned by the defense as a realty expert to put values of holdings of the Central Trust Co. in rebuttal of the testimony of George R. Linkins. Washington real estate expert, for the State. State's Attorney Theodore F. Brown of Carroll County conferred with the prosecution attorneys here, the Carroll County grand jury having returned a number of indictments against Coblentz and other officers of the closed trust company, which had branches in Washington, Howard. Carroll and Montgomery Counties. The Carroll County records have been sent here.

11. June 8, 1932 Evening Star Washington, DC
Article from Evening Star, June 8, 1932

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COBLENTZ BANKING DEALS EXPLAINED Mathias of Frederick Testifies as to Guarantors' Connections. Special Dispatch to The Star. CUMBERLAND, Md., June 8 Charles M. C. C. Mathias, vice president of Central Trust Co., Frederick, was put on the stand today at the trial of Emory L. Coblentz, president of the bank, charged with accepting a deposit when he knew the bank was insolvent, to explain dealings of the Guarantors' Investment. made up largely of bank officials, with the parent bank. Mathias is treasurer of the Guarantors' Investment. State's Attorney James Clark read a number of items and Mathias was asked to explain, the questions also covering some investments of the Blue Ridge Investment Co. Regarding the Columbia Construction Co. note indorsed by Mr. Coblentz, Mathias admitted it had been in the bank for several years. This was a little company he and Coblentz had formed to build houses in Baltimore. Following litigation. the affairs of the company were wound up in 1923. This note of $3,500 was transferred to the Blue Ridge Investment Co. It was always the understanding that Mr. Coblentz was to pay this note. Switching of Shares. Mathias was quizzed as to the statement of the Guarantors' Investment as of July 31, 1931, covering a series of notes they took up as an accommodation to Mr. Coblentz, in which there was much switching of shares and putting up as collateral with banks and banking houses. The witness explained items regarding the disposition or location of bonds, coupons and securities. Mathias was questioned at some length regarding a note for $150,000 made by Samuel J. Henry. He said Henry was an officer of the F. H. Smith Co., Washington, and no interest had been paid on the note for at least two years. He said Henry had never repudiated obligations, and he thought the note, which originally was for $180,000. was good. He said the Massachusetts avenue lot in Washington, on which there was a trust note for $23,000. was handled at a loss and the equity was wiped out. In answer to a question as to when the Guarantors' Investment began borrowing from Central Trust Co., he said, "about March 20. 1930. The liability ledger of the Central Trust was then taken up, showing the first loan to the Guarantors' Investment was $50,000 and it grew to over $1,000,000. When asked as to his net worth on September 2, 1931, Mathias said it was sufficient to meet his obligations. He said he owed the Central Trust Co. directly $120,000 and indirectly about $25,000. Objection Is Overruled. The court, after a half hour suspension yesterday afternoon for consultation in chambers, overruled an objection by the defense to the admission of certain financial publications in the evidence which show ask and bid quotations on securities, both listed and unlisted. held on Washington real estate as assets of the Central Trust Co. and its subsidiaries. the Central Securities Co. These publications are to be consulted only in so far as they pertain to items in evidence and from the period January 1, 1931, to September 21, 1931, two days before the bank closed. Chief Judge D. Lindley Sloan. quoting authorities. said the court was not to be denied any reliable source of information over a fair range in order to ascertain value. The controversy arose when Thomas Ray Gaither of W. W. Lanahan & Co., Baltimore, investment brokers. took the stand and financial publications and market reports were produced. These were to give value of unlisted securities by showing bid and asking prices. When Gaither said that the bid price would be the price accepted as the value. the objection of the defense was registered, holding that the State should show actual transactions where particular bonds were sold The National Corporation Bonds Summary and the Bank and Quotation Record as part of the Financial and Commercial Chronicle were admitted. The court sustained the objection. however, to the admission of Moody's Manual of Investments in connection with pages referring to the Wardman Realty and Construction Co. and the Wardman Real Estate Properties Co., Inc., which showed set-ups, but did not give prices. The defense claimed the Wardman senior and junior debenture are already in evidence. The State averred it had proved the value of the senior bonds and the set-up was to show the junior bonds were not as good as the seniors. In this connection the State offered two deeds of trust in evidence. The defense offered objection to the testimony of Baither generally and specifically to the unlisted securities.

12. June 10, 1932 The Washington Times Washington, DC
Article from The Washington Times, June 10, 1932

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GOBLENTZ CASE GAJE TESTIMONY NEARS END Three Judges Sitting as Jury to Hear Arguments Tomorrow CUMBERLAND, Md., June 10. 1 Two vice presidents and the treasurer of the Central Trust Company of Frederick were on the stand today previous to its president, State Senator Emory L. Coblentz, being called to testify in his own behalf, he having been indicted for accepting a deposit when he knew the bank was insolvent. It was thought the testimony would be concluded today and the argument before three judges, sitting as a jury, would take place tomorrow. Vice President C. Thomas Summers told of rumors of runs on branch banks and Senator Coblentz called a meeting September 2, the day it was voted to close. He said he knew nothing of Coblentz sending out personal letters after the closing of the bank until the morning after. Vice President Charles McC Mathias told of the purchase by the Central Trust Company of 800 shares of its own stock at $30 to be used in the deal taking over the Sykesville National Bank.

13. August 22, 1932 Evening Star Washington, DC
Article from Evening Star, August 22, 1932

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NEW TRIAL PLEA OF COBLENTZ UP Arrest of Judgment Asked on Ground Banker Did Not Accept Deposit. Special Dispatch to The Star. CUMBERLAND, Md., August 22.Argument on a motion for a new trial for Emory M. Coblentz, president of the Central Trust Co., Frederick, which closed its doors September 2 last, convicted here of receiving a deposit at the Ellicott City branch when he knew the institution was insolvent, got under way here today. The case was removed here from Howard County. Leo Weinberg of Frederick made the opening talk for the defense. He asked for an arrest of judgment in that the defendant aid not accept the cank deposit. He contended the indictment was defective as raised by the demurrer. The verdict, he declared, was against the WC ght of the evidence, and he added that newly discovered evidence would be presented. He said it was a pioneer case of its kind. He narrated the efforts made by President Coblentz to strengthen the financial reserves of the in paign Smith bank, publicity suit following in Washington connection the whispering and with with- cam- the drawals that followed. He cited in recent days, a huge financial institution. the Union Trust Co., Baltimore, was able to borrow over seven millions of dollars in Baltimore during a run, and was kept open. On the other hand his client was a victim of unfortunate circumstance. Mr. Weinberg was followed by James Clark, who prosecuted the case. He spoke briefly. He said the indictment was drawn in the language of the statute and such statute had been passed on as sufficient by the Court of Appeals. The verdict that the bank was "hopelessly insolvent," he averred, strengthened the State's case. The real point, he asserted, was the confidence of the people of Maryland should be restored in its banks and the administration of justice.

14. October 28, 1932 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, October 28, 1932

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Frederick Trial Of Coblentz To Begin Nov. 14th Charged With Accepting Deposits In Home Bank When Company Was Insolvent November 14 was set for the beginning of the trial in which State Senator Emory L. Coblentz, of Frederick, will face charges of accepting deposits in the Central Trust Company when he was alleged to have known that that institution was insolvent. The Frederick County grand jury indicted Senator Coblentz on October 3 on three separate charges of receiving deposits at the home bank when he knew the company was insolvent. The Central Trust Company, whose principal offices were in Frederick and its eleven branches closed September 3, 1931. Indictments have also been returned against Coblentz in Howard and Carroll Counties. The Howard County case was removed to the Allegany County Circuit Court and early this summer Coblentz who was the former president of the defunct institution, was convicted by the full bench of the Cumberland court of accepting a $317 deposit at the Ellicott City branch of the Central Trust Company and was sentenced to eighteen months in the Maryland House of Correction when the bench refused a motion for a new trial. Leo Weinberg, his counsel, immediately offered a petition for an appeal to the Court of Appeals and pending the decision of the State's highest court the defendant was released on bond. The date of the Frederick trial was set on agreement between State's Attorney Walter E. Sinn of Frederick and Leo Weinberg, who will conduct Mr. Coblentz' defense. The defendant has elected to have his case heard by Judges Urner and Willard of the Frederick court. No date has been assigned for taking up the charge of nonperformance of duties returned by the September grand jury of Frederick against George W. Page, State bank commissioner. It is believed, however, that this day will be set shortly after completion of the Coblentz cases. Co-incident with the setting of the date for trial of Coblentz charges, it was learned that attorneys in the case hope to limit the length of the trial to one week in contrast to the three weeks which the removed trial from Howard county to Allegany county consumed. It is felt that possibly some transcript of the Allegany county record may be used and that a portion of the previous great mass of testimony may be avoided.

15. June 26, 1933 The Herald-Mail Hagerstown, MD
Article from The Herald-Mail, June 26, 1933

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Bank Liquidation Plans Go Forward The first step toward liquidating the Peoples' Banking Company, Smithsburg. was taken recently with the filing in. court of an order signed by Judge Prank (:. Wagaman authorizing the receiver, John J. Ghingher, to determine stockhold ers' liability and proceed with collecting and enforcing payment of assessments on stock It is understood that steps will be taken at once to liquidate the af. fairs of the hank, the closing of which was caused, it is alleged, by the collapse of the Central Trust Company, Frederick, with which it had been merged. Several months ago. after lengthy court litigation. the merger was res. cinded and the Peoples Bank restor. ed as an individual institution.

16. August 23, 1933 The Washington Times Washington, DC
Article from The Washington Times, August 23, 1933

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COBLENTZ AIRS BANK DEALS FREDERICK, Md., Aug. 23. Emory L. Coblentz, president of the closed Central Trust Company, was called as a witness yesterday in the case in which the Washington Trust Company of Ellicott City is seeking the return of a number of mortgages held by the Fidelity and Deposit Company of Baltimore. Coblentz, who recently was acquitted on charges of violation of the banking laws in connection with the closing of his banking company, was called in because the mortgages in question were among the assets of the Washington Trust Company at the time it merged with Coblentz's bank. The mortgages were assigned to the Fidelity Company, and the Ellicott City organization is attempting to have the assignments set aside on the grounds that the Central Trust was insolvent at the time the Washington Trust was taken over by the Baltimore institution. The complainants contend the merger was consummated through fraud and misrepresentation on the part of the officers of the Central Trust, but Coblentz yesterday denied all implications. He said he felt his organization could make a profitable branch at Ellicott City.

17. November 16, 1933 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, November 16, 1933

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Central Trust Plan Offered To Depositors Branch System Would Be Discarded And Six Individual Units Established Frederick, Nov. 15 (Special) six new unit banks within the next six weeks and make cash distribution of five per cent. to depositors upon reopening, being submitted depositors of the Central Trust Company, it was announced today. The bank in process of reorganization has been in receivership since September 3, 1931. When at least twenty-five per cent. of deposits the closed bank are signed the plan will be submitted to John Ghingher. State Bank Commissioner and receiver for the trust company, for approval. It is understood that Mr. Ghingher looks with favor upon the reorganization plan. The new plan calls for six separate Institutions, one in Frederick to be known the Western Maryland Trust Company; one Middletown, the Middletown State Bank; one in Walkersville, Walkersville State Bank; one in Monrovia, State Bank; one in Sykesville, Sykesville State Bank, and in Poolesville, the Poolesville State Bank. The branch bank system discarded, and each town to organize and manage its own institution.

18. February 10, 1934 The Washington Herald Washington, DC
Article from The Washington Herald, February 10, 1934

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BALTIMORE LIVE STOCK Court Hearing Set Cattle On Bank Receiver fair to medium. fair, $4.25@4.50; to to med ium to fair to to plain, good fair medium, Good medium plain and head market good market about light Western higher than quotations. 25 market $4.50@7 Special the Washington Herald FREDERICK Md., Feb. 9.-A hearing on the petition of John J. Ghingher State bank commis sioner and receiver of the closed Central Trust Company, to terminate the receivership be held befor Chief Judge Hammond Urner and Judge Arthur D. Will liard. in the Circuit Court Mon day, it was announced today. It is expected to be one of the most important hearings during the two and a half years of the trust company's receivership.

19. February 12, 1934 The Evening Sun Baltimore, MD
Article from The Evening Sun, February 12, 1934

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Arguments On Receivership Bench Studies Question [By the Associated Press] Frederick, Feb. 12-Argument completed and the question of termination of the receivership the Central Trust Company taken under advisement in Circuit Court here day. proceedings instituted John Ghingher, State Bank Commissioner, receiver for the closed He asked that the ship be ended and that fair liquidavalue fixed for some 200 positors who not favored ganization of the institution. Some Time Court attaches expressed the opinion be length of time before might some decision was rendered, as there question to whether not some would be able meet liabilities the trust company reopened. Efforts have been going forward ascertain liabilities met. Attaches said it was probable further investigation would be made before decision returned. The hearing was held before Chief Judge Urner Judge thur Willard. Ghingher present, has been representing his of the plan of November.

20. October 7, 1935 The Washington Times Washington, DC
Article from The Washington Times, October 7, 1935

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600 Stockholders In Bank Face Suit HAGERSTOWN, Md., Oct. 7. The list of stockholders of the defunct Central Trust Company, Frederick, being sued by the receiver to collect statutory liability assessments, has passed 600 with the filing of 31 more names, a number of who are Hagerstown stockholders. They held stock ranging from three shares up to 405 shares per sstockholder.

21. October 25, 1935 The Washington Times Washington, DC
Article from The Washington Times, October 25, 1935

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Central Trust Suits Toll 625 Defendants FREDERICK, Md., Oct. 25. Executors, trustees and persons holding surviving interest in stock of the defunct Central Trust Company of Maryland are named as defendants in the ninth suit of the receiver, John J. Ghingher, to collect stock assessments. The suit, filed in equity court by order of Associate Judge Arthur D. Willard, brought the total number of persons sued to more than 625.