7161. Marblehead Savings Bank (Marblehead, MA)

Bank Information

Episode Type
Suspension โ†’ Reopening
Bank Type
savings bank
Start Date
June 23, 1904
Location
Marblehead, Massachusetts (42.500, -70.858)

Metadata

Model
gpt-5-mini
Short Digest
c72eb661fa32c48b

Response Measures

None

Description

Court order (injunction) by the Massachusetts Supreme Judicial Court and the state savings bank commissioners restrained the Marblehead Savings Bank from paying or receiving deposits on June 23, 1904 because aggregate losses exceeded surplus; article states commissioners expect the institution to resume business in a few years with no loss to depositors. OCR in Article 1 shows a slightly garbled reference but Article 2 gives detailed account. No distinct, discrete run triggered by a rumor is described โ€” though heavy withdrawals occurred, the suspension was effected by court/commission action due to unsafe condition.

Events (1)

1. June 23, 1904 Suspension
Cause
Government Action
Cause Details
State savings bank commissioners petitioned the court and Justice Barker issued an injunction restraining the bank from paying or receiving deposits because aggregate losses from bad loans and foreclosed real estate exceeded surplus; heavy recent withdrawals accelerated action.
Newspaper Excerpt
An order restraining the Marblehead savings bank of Mablehead from paying or receiving deposits, was issued by Justice Barker ... The commissioners state that the bank has sustained heavy losses ... During the past few months depositors have withdrawn their money quite freely and the situation became so acute that the commissioners decided that it was hazardous to depositors to allow the institution to pay out funds.
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, June 24, 1904

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Article Text

New-York Daily Cribune FRIDAY, JUNE 24, 1904. THE NEWS THIS MORNING. FOREIGN-The Japanese advance northward from the Liac-Tung peninsula continues; General Oku has occupied Senuchen, and a detachment of General Kuroki's army has moved out of Siu-Yen. Japan's personally conducted war party arrived at Chemulpo; the Emperor of Corea will receive the members at luncheon to-day. = A train was thrown from a bridge over the Jiloca River, in the province of Ternel, Spain, and thirty persons were killed; the coaches were burned, and the bridge also took fire and burned. The Haytian palace guard pelted the French and German minieters to that country with stones. The officials of Plymouth are trying to identify Kent J. Loomis with an American who went to London from that place on the night of June 21. The Archbishop of Canterbury has accepted an invitation to visit this country and attend the general convention of the Episcopal Dr. John Frederick Church at Boston Elmore has been appointed Peruvian Minister at Washington. DOMESTIC-Roosevelt and Fairbanks were nominated by the Republican National Convention at Chicago with great enthusiasm; President Roosevelt received the entire vote of the convention on the first ballot, and Mr. Fairbanks was nominated for Vice-President by acclamation, there being no other candidates; the convention adjourned sine die after the usual formalities. George B. Cortelyou was elected chairman of the National Committee directly after the convention closed, and at once resigned his Cabinet position; the new chairman has absolute in the power conduct of the campaign. The President received the news of his nomination at the White House, and many telegrams of congratulation were sent to him; the official notification will be at Oyster Bay on July 27. The centennial of the birth of Nathaniel Hawthorne was celebrated at Salem. Five hundred and sixty-seven deMass. grees were conferred at the thirty-sixth annual The commencement of Cornell University. miners of the South Colorado coal fields decided The family to fight their strike to a finish. of General U. S. Grant held its first reunion in The Breathitt thirty years in Chicago. County feud was revived by the assassination of Hearst lost Mina Hargiss sympathizer. A $3,000,000 damage nesota by two votes. suit was brought against Senator Thomas C. Platt and J. Platt Underwood for alleged lumThe Marblehead (Mass.) Savber frauds. ings Bank was restrained from doing business temporarily. CITY.-Stocks were strong and dull. Ex-Senator Hill and Senator McCarren conThe second trial of Edward Glenferred. non, a former wardman, for alleged failure to The suppress a disorderly house, began. wires in the Stock Exchange of eleven firms of brokers were cut. The City College commencement was held at Carnegie Hall. More testimony about rotten life preservers was given at the continuation of the inquest The hulk of the into the Slocum disaster. General Slocum was raised by the wrecking Poolroom closed by the recent company. police raids were running again full blast. The winners at Sheepshead Bay were: 1, Voloday; 2. Reveille: 3 White Crest: 4. Graziallo; 5, Winchester, and 6, Sweet Alice. THE WEATHER.-Indications for to-day: Fair. The temperature yesterday: Highest, 75 degrees; lowest, 59.


Article from Daily Kennebec Journal, June 24, 1904

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Article Text

BANK CLOSED. Judge's Order Regarding Savings Bank at Marblehead, Mass. Boston, June 23.-An order restraining the Marblehead savings bank of Mablehead from paying or receiving deposits, was issued by Justice Barker, Thursday, in the Massachusetts supreme judicial court. The action was taken on petition of the state savings bank commissioners who alleged that the condition of the bank was unsafe. The commissioners state that the bank has sustained heavy losses during the pat two year. There have been losses in loans and the bank has a large amount of foreclosed real estate. Other shrinkages had swelled the aggregate loss until it exceeded the surplus. During the past few months depositors have withdrawn their money quite freely and the situation became so acute that the commissioners decided that it was hazardous to depositors to allow the institution to pay out funds. The bank has many good investments and within the next two years, the commissioners believe, that afrairs will be in a much better condition and that payments can be resumed with no loss to depositors. The savings bank commissioners later gave out the following statement: "During the last two years the institution has met with large losses arising from unfortunate investments in loans on personal security. It also has a large amount of real estate by foreclosure which will involve more or less loss upon its sale and also some smaller losses in other channel of investment. the aggregate of which exceends the total available surplus of the institution. "During the past few months there have been heavy drafts upon the institution aggregating over $100,000. and it is deemed best for the interest of depositors that the affairs of the institution should be temporarily enjoined. It is felt that within the next few years the accumulation of earnings will be sufficient to meet all these losses and enable the bank at the end of that time to resume its business in a strong and healthy condition." The last statement of the Marblehead institution filed June 1. with the commissioners was as follows: Resources, public funds, $55,841; bank stock. $31,938; insurance of bank stock. $7000: street railway bonds. $16,297: railroad bonds, $71.545: real estate held by foreclosure, $35,006; loans on real estate, $162,461: loans on personal security. $150,078; deposited in bank on interest. $11,854: expense account, $68: tax account. $2937; cash on hand, $612: total. $545,640. Liabilities deposits, $512,500: guarantee fund, $26,617: interest, $2319: profit and loss, $4103; suspense, $100: total. 545,640.