7310. Chesapeake Bank (Baltimore, MD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 9, 1930
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
2277a9556aa92d43

Response Measures

None

Description

Newspapers (Dec 9–10, 1930) report something of a run on the Chesapeake Bank; the board requested the State Bank Commissioner George W. Page to take charge the same day and the bank was placed in his hands and did not resume operations. Subsequent articles show the bank remained in receivership, branches sold and distributions made to depositors, and criminal indictments followed. Classified as run -> suspension -> closure (receivership). Bank is noted as not a member of the Federal Reserve system, indicating a state bank.

Events (5)
1. December 9, 1930 Receivership
Newspaper Excerpt
The Chesapeake Bank ... were taken over by the state bank commissioner ... will remain closed until an audit of the accounts has been completed. (Dec. 10, 1930 reports).
Source
newspapers
2. December 9, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Newspapers reported something of a run on the Chesapeake Bank; later investigations and indictments suggest bank-specific malfeasance and solvency problems prompted withdrawals.
Measures
Board of directors passed resolution requesting State Bank Commissioner to take charge; cashiers instructed to tally figures and put money into vaults.
Newspaper Excerpt
There has been something of a run and the bank was unable to pay.
Source
newspapers
3. December 9, 1930 Suspension
Cause
Government Action
Cause Details
At directors' request the State Bank Commissioner took over the institution and closed the main office and two branches pending examination.
Newspaper Excerpt
This institution is in the hands of the bank commissioner. George W. Page ... have taken over this bank.
Source
newspapers
4. May 11, 1931 Other
Newspaper Excerpt
Chief Judge Dennis ratified the sale of the Walbrook Branch of the defunct Chesapeake Bank to the Union Trust Co. for $95,000.
Source
newspapers
5. January 25, 1933 Other
Newspaper Excerpt
Receiver reports and distributions: receiver ready to make further partial distributions to depositors and creditors; securities marked down and liquidation continuing.
Source
newspapers

Newspaper Articles (22)
1. December 9, 1930 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 9, 1930

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Bank Commissioner Takes Charge At Director's Request Shortly before 3 o'clock this afternoon the following typewritten sign was pasted on the front of the cashier's window in the main banking room of the Chesapeake Bank at street: This institution is in the hands of the bank Commissioner. George W. Page, State Bank Commissioner, later made this statement: have taken over this bank. The board of directors passed a resolution requesting me to do that. "There has been something of a run and the bank was unable to pay. "With the directors and possibly a committee of bankers, an examination will be made. is not possible at this time to say anything about what the assets and liabilities are." Two branches of the bank, one at North avenue and Tenth street and one at Fulton and avenues, were, of course, closed too. When the typewritten sign was pasted on the front of the cashier's window fififteen or sixteen patrons of the institution were in the main banking room. A man who came from behind the cashier's cage ordered a porter to draw a wire screen closing off the main banking room. The waiting patrons were told to read the sign and that there would be no further business transacted at the bank today. When the persons had read the sign they departed. At the time the sign was hung in front of the cashier's window and the wire screen was drawn Monroe Holland, president of the bank; Milton C. Delcher, vicepresident, and George W. Page, State Bank Commissioner, were in conference in one of the institution's private offices. After the screen had been drawn the same man who had ordered it drawn retired behind the grill and instructed the cashiers to tally up their figures for the day and put their money into the bank's vaults.

2. December 10, 1930 Joplin Globe Joplin, MO
Article from Joplin Globe, December 10, 1930

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BANK AT BALTIMORE, MD. IS CLOSED BY DIRECTORS Baltimore, Dec. 9.-(P)-Shortly before 3 o'clock this afternoon the Chesapeake bank of Baltimore placed the following notice on its doors: "This institution is in the hands of the bank commissioner.' George W. Page, state bank commissioner, later said: have taken over this bank. The

3. December 10, 1930 The Times Leader Wilkes-Barre, PA
Article from The Times Leader, December 10, 1930

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Commissioner Takes Over Baltimore Bank Baltimore, Dec. 9 (P).-The Chesapeake Bank of Baltimore today placed the following notice on its door: "This institution the hands of the bank commissioner.' George W. Page, State bank commissioner later said: have taken over the bank The board of directors passed tion me do that. There has been something of run and the bank was unable to pay. With the directors and possibly committee of bankers an examination will be made. not possible at this time to say what the assets and liabilities

4. December 10, 1930 The Republican Springfield, MA
Article from The Republican, December 10, 1930

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BALTIMORE BANK CLOSES AFTER RUN Baltimore, Md., Dec. Chespeake bank, commercial and savings institution, with its two branches, were taken over by the state bank commissioner, George Page, yes. terday afternoon and the doors closed. The bank was 19 years ago. "There been run and bank was unable to pay,' Mr Page "With the directors and possibly committee bankers an will be made. It not possible this time to say anything about what the assets and liabilities hope take immediate steps for the relief of the depositors of the bank." The city government has no deposit in the bank above $300,000 was time deposit, withdrawal which is governed by Clearing House rules requiring 30 days' notice. About $100,000 was regular deposit, subject to withdrawals at any time. Two cent paid on the latter and per cent on the time deposit.

5. December 10, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, December 10, 1930

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BALTIMORE BANK IS CLOSED Institution Placed in Hands of the Bank Commissioner. BALTIMORE (AP). Shortly before 3 o'clock Tuesday afternoon the Chesapeake bank of Baltimore placed the following notice on its door: "This institution is in the hands of the bank George W. Page, state bank commissioner, later said: have taken over this bank. The board of directors passed resolution asking me to do that. There has been something of a run and the bank was unable to pay. With the directors and possibly a committee of bankers an examination will be made. It is not possible at this time to say what the assets and liabilities are.

6. December 10, 1930 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, December 10, 1930

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COMPELS CHESAPEAKE TO CLOSE W. Page, State George Commissioner, Takes Over Institution PLANS QUICK STEPS TO AID DEPOSITORS $400,000 Of City Money House May Cooperate Doors of the Chesapeake Bank, Paul street, and its two branches. which passed into the hands of George Page, State Bank Commissioner, yesterday. will remain closed until an audit of the counts been completed, Mr. Page said Auditors already are work, but how long take them conclude their investigation cannot predicted, Mr. Page adding that might completed in less than week. He realed, incidentally. that his staff been making special investigation bank's before the follow ing sign was posted in front of the cashier's window institution in the hands Bank Says Caused Closing Mr. Page said he would proceed once with "regular examination" affairs of the which member the Federal Reserve System Baltimore Clearing House Association and, hence, not in position to call upon other financial institutions for funds to tide the run the bank which, Mr. Page said, had forced the closure. Waldo Newcomer. the Batlimore Clearing House asserting that he could no reason why this should disturb the general financial situation involve any other promised whatever cooperation Mr. Page might ask of the Clearing House relieving depositors providing cash for their prompt ment." Doubts City Presented Check charge that the presented for $150,000 M. day made director stitution night. Doubt immediately was thrown this by August M. Denhard, City Register. Another director he had heard nothing the alleged demand the had made the bank. Neither of the directors would allow his name to used. Mr. Denhard explained that if demand for $150,000 had been made upon the bank by the city yesterday he probably would have known about He admitted, however, that check might been signed deputy, Walter R. Lyon. The latter could not be reached nor could Mayor Broening. Monroe Holland and other officers of the bank refused issue any stateheld hurried conferMr. Holland's office after the bank closed. They emerged from the meeting with optimistic manner their determination not discuss the situation. Hope To Aid Depositors Mr. Page, formal hope to take immediate steps for the relief of the depositors of the bank." Banking authorities told that the Chesapeake Bank late last month paid out $127,000 in Christmas Fund savings. The majority of these have been cashed. was said. that have cannot be cashed pointed out. city $400,000 on deposit the bank, all which insured against loss, according Mr. Denhard City's Account Mr. Denhard explained that until month ago the deposits in the Chesapeake Bank had been divided follows: special account, withdrawable only thirty days nogeneral payable demand. He said that month ago, because expected the city need all these funds the end the year. the had been notified to transfer the 000 general account. Thus, said, the whole $400,000 was demand. added that had been kept in special account because drew three cent. interest there contrast to the two cent. interest per general account. The situation the was sidered meeting the sioners Finance last Monday, the Mayor but no withdrawals ordered by the board, for the reason the city's funds protected insurance approved the Federal Government. Page Takes Over Bank After taking charge the bank's affairs, George Page, State Bank issued the have taken over the bank. The board directors passed resolution do that. has been run unable to pay. the directors and possibly bankers, an examination be made. possible time about what the assets immediate steps Page

7. December 10, 1930 The Evening Sun Hanover, PA
Article from The Evening Sun, December 10, 1930

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BALTIMORE BANK HAS BEEN CLOSED Chesapeake Institution And Two Branches Are In Hands Of State Commission-Run Cripples Deposits BALTIMORE, Dec. 10 (AP)-The State Bank commissioner late yesterday took charge of the Chesapeake Bank of Baltimore. A typewritten notice on the door announced "this institution is in the hands of the state bank commissioner. Two branches in other parts of the also closed. city The bank, established 19 years ago and capitalized at $50,000, was not a member of the Federal Reserve system or of the Baltimore clearing house. In its most recent statement issued September it showed deposits subject to demand of $1,833,089.31. George W. Page, bank commissioner, issued statement saying he had been asked by vote of the board of directors to take over the institution "There has been something of run and the bank was unable to pay," he said. 'It is not possible at this time to say anything about what the assets or liabilities are but we hope to take immediate steps for the relief of the depositors. Included in the funds on deposit in the bank was a $400,000 account of the city government. The officers are: J. Monroe Holland, president; William Edwin Bonn, Milton B. Delcher, vice-presidents, and Milton L. Hollard, cashier. Shortly after the bank closed crowds gathered about the entrance but there was no disturbance. Police were stationed both inside and outside the building.

8. December 10, 1930 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, December 10, 1930

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BUILDING PERMITS Ruby Sullivan 2607 North Orchard Knob Zachery 1310 Worthington and Banking company 719 Flynn street, repair fire dam$600 Mrs M Garrett, 519 Main street garage Wood, Carroll move house Lexie Guffey. 3011 Dodds avenue. refire damage $200 Cates 833 Chestnut shelving and $70. Shelton. 827 Vine street. roof and repair fire damage Smith, Cedar street, re$50 Bernhardt. 2507 Gray street. garage $25 Allison company. gas pumps Godsey Oil company. 416 North Market street change $50 Mrs. M Bryan, 4800 St. Elmo avegarage: Three Banks Suspend. before o'clock this afternoon the Chesapeake Bank of Baltimore placed the following notice on its door: "This institution is in the hands of the bank commissioner George Page state bank commissioner later have over this bank The board directors resolution asking to do There something of run and the bank unable pay With the directors and possibly of bankers examination will made possible this time what the assets and liabilities RALEIGH N. C., Dec. 9 nounced today he had notified the Bank Lilesville. Anson county. had closed its doors The bank was capitalized at $25,000 and its statement Sept showed deposits $25,000 and total resources of $74,800 County bank here did not its doors for business today $79.85 Caldwell, cashier. announced that the division in charge. the to inComplete Installed. ability of the bank realize upon curities He said he hoped arrange$1.00 Week ments could be made for the institution to reopen Small Carrying Charge The bank was capitalized at $20,000 its surplus and deposits For Easy Payment approximated $250,000. Caldwell said Present Minstrel Again. A request repetition of the "Darktown Strutters Minstrel presented Montgomery-Ward month success the Dramatics be presented Friday. Dec. 12, p.m., at & Co. the Alton Park auditorium This show consists of the regular 911-913 MARKET ST. minstrel routine. featuring solos and comedy numbers. followed by an afterpiece, Can't Be billed comedy Walter Headrick directs the show.

9. December 10, 1930 Evening star Washington, DC
Article from Evening star, December 10, 1930

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STATE TAKES BALTIMORE BANK Commissioner Acts on Request of Institution-Not in Reserve System. By the Associated Press BALTIMORE December State bank yesterday charge of the Chesapeake Bank notice the door "This insttiution the hands of the bank commissioner Three branches in other parts of the city also The established the Baltimore house In its recent showed deposits subject to demand $1,833,W Page, bank issued he had been asked by vote of the board directors take the institution. "There has something of run and the was unable he this time to are, but hope take immediate steps for the relief of the deposiWaldo Newcomer president of the and said clearing house will what can in the Included in the funds on deposit was account the time deposit days 000 was subject withdrawal. Two cent interest was on the latter and per cent hours were from the city with officers are Monroe Holland president; William Edwin Bonn Milton B. Delcher, vice presidents, Milton Hollard. Shortly the bank closed crowds gathered but there Police were both inside and outside the build-

10. December 10, 1930 Tulsa World Tulsa, OK
Article from Tulsa World, December 10, 1930

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OFFICERS CLOSE BALTIMORE BANK Three Others in Various Parts of Country Forced to Suspend Shortly o'clock this afternoon the Chesapeake bank of Bal timore placed the following notice on its door: This Institution is in the hands of the bank commis- The have taken over this bank board of directors passed resolution asking me to do that There has something of and the bank was unable pay With the and possibly committee of bankers an examination will be made. It is not pos. sible at this time to say what the assets and liabilities are. Two branches of the institution in residential sections of the likewise were closed. The bank has maintained hours of o'clock the the morning until 9 o'clock in evening. The Bank Mecklin ith capital of $25,000. closed today. its doors today The bank was capitalized at $25,000 last call statement showed deposits of about 000 and total resources of $74,800. JEFFERSON CITY. Mo., Dec 9 Sturgeon at day $295,318 resources, was closed to- Mistrial Declared. trial was today in federal court here in the case of Judge Griffin former postmaster at ValOkla. charged with embezzling funds approximately $588 in postal

11. January 27, 1931 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, January 27, 1931

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NEW PROTEST FILED PROSECUTORS O'CONOR PLAN Walbrook Of Chesapeake Object To Union Trust Offer An additional formal protest and series of informal objections proposed Union Trust Company agreement in the Bank ship were filed in Circuit Court No. yesterday, the last day on which action could be taken. The protest made by more than depositors of the Walbrook branch the closed bank. There cessity, the group asserted, accept the Union Trust offer for forty per immediate payment depositors who would surrender their claims against the Chesapeake the face report that the closed bank could liquidate at per cent. Sale Of Branch Protested The group protested the the Walbrook branch to the Union Trust book value approximately $79,000. In addition, the said the company should not be given the right use the main bank of Chesapeake and the Fulton avenue branch for six months free of charge. the provides. Other groups depositors protested the agreement last week. Their jections were similar to those yesterday. Protests Made Informal protests have been made letters sent by individual depositors to Chief Judge Samuel K. Dennis, presiding in the court, and Judge Charles Stein, will hold hearing the proposed agreement week. All have been filed with the records the case. The grand jury yesterday its investigation to ascertain there any "criminal wrongdoing" previous the Chesapeake's closing December Milton B. Delchar, president the bank, with the jurors for several hours. The investigation was begun January 19 when affairs the bank cially were called to the attention the jury by Herbert R. O'Conor, State's Attorney. Organization Of State's Attorneys Indorsed In Twenty Counties State's Attorneys of twenty of counties of the State have indorsed Herbert R. O'Conor's proposal to form State's Attorneys' Association of Maryland, assuring ganization the group, the prosecutor said yesterday. The letters indorsement, Mr. said, outspoken in support the plan. meeting formulate plans association has set February 14 Baltimore, Mr. asserted, and definite arrangements and program for the gathering drawn up within the next weeks. Cites Needs of Group prosecutors' association needaccording to Mr. for interchange technical information and special data pertaining the criminal courts. The group also watch closely than individuals legislation pertaining to criminal and procedure originating lay Deputy and Assistant State's torneys would be admitted to the associate members, but would no vote, according to present plans.

12. April 17, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, April 17, 1931

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BANK'S AFFAIRS THOUGHT TOPIC OF JURY SESSION Grand Panel In Secret Two-Hour Deliberation. No Witnesses Heard SPECIAL MEETING IS DUE TOMORROW Chesapeake Probe Expected To Be Resumed Then nearly hours today the grand jury deliberated in secret sion that was believed to concern their renewed Chesapeake Bank investiga tion, and adjourned to hold special session tomorrow on the same subject No witnesses appeared at the session The jury stayed in session for approximately two hours after finishing their regular routine work. Neither State's Attorney Herbert R. members of his staff who have handled the bank investigation, before the jury. No Announcement While no announcement was made the special Saturday meeting understood the that the special session will be devoted continuation of the bank inquiry. In recent years the only special orday of the jury were held State Roads Commission falcations and the present jury's the Bank matter. The bank quiry in Milton B. Delcher. vice-president. this week was given five-year after his and James Smith. manager the bank Fulton branch. and Fred W. Kahl, customer of the branch. Charges Still Pending Charges against the latter still pending. The grand jury yesterday heard two in the bank Deputy State Bank John Hospelhorn and Herbert after ney for the receiver. The new phase of the investigation was ported to matters dealt with hearing before Chief Judge Samuel K. Dennis on Monday and Tuesday in connection with the receivership regarding the invest ments the bank in real estate.

13. May 9, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, May 9, 1931

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Holland's Trial Likely Late In Month Monroe Chesapeake Bank who yesterday dicted two charges, will be person brought trial in the bank cases. He and three other persons face charges. The fact that Holland will be tried next disclosed today State's Attorney Herbert R. O'Conor, with Assistant States Elmer Hammer and Charles Evans, has handled the bank matters since the first investigations were begun within month after the closing of the bank December The trial is expected to be held late month. Which of the two charges against Holland be first brought to been determined ferent counts. with ments to State banking officials cerning the bank's and banking details. In the accused jointly with Milton Delcher, already convicted president the bank, larceny pretense involving about $34,000, and with conspiracy defraud positors of the bank through loans various firms, permitting overdrafts Delcher also charged jointly with James Smith. convicted the Fulton branch of the bank and Frederick Kahl, depositor bank, with conspiracy, larceny false pretense involving about $40,000. Holland will be arraigned before Judge Joseph Ulman in Part Criminal Court within the next weeks both the charges against him. indicated arraignment expected order dispose demurrers other preliminary legal questions which may brought up by Robert Carman, Holland's attorney.

14. May 11, 1931 Evening Star Washington, DC
Article from Evening Star, May 11, 1931

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BANK SALE APPROVED BALTIMORE May 11 (Special) Chief Judge Dennis Saturday ratified the sale of the Walbrook Branch of the defunct Chesapeake Bank to the Union Trust Co. for $95,000 The Union Trust Co bid was accepted after George W. Page, State banking commissioner and receiver for the Chesapeake, recommended it be chosen over an identical bid submitted by Milton L. Holland, son of J. Monroe Holland, president of the Chesapeake. who is under indictment in connection with the bank crash.

15. May 24, 1931 Evening Star Washington, DC
Article from Evening Star, May 24, 1931

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HEAD OF MARYLAND BANKERS IS VETERAN OF LONG EXPERIENCE Webster Bell, Now 55, Began Carser at Age of 19 Years. Was Credited With Halting Serious Baltimore Run Last Fall. Special Dispatch to The Star. BALTIMORE, May 23.-Webster Bell, who was elected president of the Maryland Bankers' Association at the annual meeting in Atlantic City Thursday, is one of the best known bank prasidents in Baltimore, being president of the Park Bank, which was the first bank here to initiate Christmas saving funds. Mr. Bell, who is 55 years old, is a naWEBSTER BELL. tive Baltimorean and started his banking career with the National Union Bank when he was 19 years old, and remained with the National Union until he accepted the presidency of the Park DEMAND GROWING Bank in 1903. Bank's Expansion Rapid. The Park Bank was started in 1901 with a capital and surplus of approxiFOR MORTGAGES mately $100,000 and under Mr. Bell's guidance has rapidly expanded, the total resources as of December 31, last, being $8,039,229, with a capital stock of Dealers Say Investors Are $700,000 and surplus and undivided profits of $690,658. Mr. Bell has always taken an active Turning Away From Cominterest in national banking affairs. Following the collapse of the Chesamercial Banks. peake Bank last December, while rumors started a two-day run on the Park Bank, all depositors were given their money as demanded, many of them By the Associated Press. walking out of one door and into anNEW YORK, May 23.-Officers of other door of the bank where they redeposited the money they had just prominent mortgage companies said todrawn. day investors, discouraged by the low The credit for having stopped the return being paid by commercial banks run is given to Mr. Bell, who not only on deposits, are displaying revived inposted a notice on the bank door that terest in guaranteed mortgages and cerall depositors would be paid in full on tificates. proper identification and on the first Several reported that the demand exday even went so far as to keep the ceeds the supply and predicted that the bank open for two hours after the legal closing hour. In this way he restored mortgage market may come down by confidence in the bank and on the secMidsummer to 4½ per cent. They said ond day less than 50 depositors drew out the prevailing rate is from 5½ to 6 per cent. their money and approximately half of Mortgage companies officials said that them redeposited. they have uncomfortably large supplies Other Officers Also Elected. of cash and that they cannot get suffiJ. A. Walton, president of the Ancient mortgages to sell or deposit against sales of certificates. While the demand napolis Banking & Trust Co., was elected vice president. Other officers named is insatiable, they said that the business at the closing session of the bankers' depression has operated to restrict the annual convention were: supply of new mortgages. Some of the William Marriott. Baltimore, Western large companies report they have not National Bank, re-elected treasurer; been encouraging new projects in New James W. McElroy, Baltimore, First NaYork, believing it to be overbuilt. tional Bank, re-elected secretary; memThose who were interviewed were virbers of the Administrative Committee, tually unanimous in attributing the inTasker G. Lowndes, J. H. Cunningham, satiable demand for mortgages from inIrving T. Kepler, William S. Hill, W. B. dividuals to the vagaries of the stock Cooper, William S. Gordy, jr., and L. S. market. They said that presumably the Zimmerman. inquiry came from persons who in more normal times would be huving shares or

16. October 30, 1931 The Evening Sun Baltimore, MD
Article from The Evening Sun, October 30, 1931

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CHESAPEAKE Counsel See No Obstacle To To Payment Soon From Page now pending in the lower court, will the Court Appeals. motions for reargument of present speak positively until have read the decision, but is exceptional for the court to Mr. Clark said yesterday that the Court Appeals the final court the matter, that he knew of Federal grounds which the taken the Supreme Court might the United States. Depositors who in charge Mr. Page's while the Bank Commissioner confined his home said: very "Probably many people deposits the Chesapeake Bank, large not for them the be them when have the right such payment passbooks for the savings counts to in response request made time ago balances figured. In checking counts customary to make his books statement of amount the balance in both and checking accounts of each positor. depositors, that have not their in be will receive checks for twenty to cent. of the which stand credit auditor's books. will happen in the accounts those have died bank closed? The checks sent out in their names just they will sent those living and their their right take over the ments.' One Legal Detail One legal detail the city which not involved in the priority State claim remains straightened out, lawyers for the bonding companies say. The total amount the city funds the Chesapeake Bank which bonded ber companies $402,000. bank had deposited the city of claim that this would panies deducted the total of $402,000 which they were This duce the the the city $381,000 companies proximately. the state city have been Both paid and in element of the city case would distribution of this to bonding proportion the of the $402,000 which they amount had. Mr. Clark among them. believe that the decision likely effect and to decide banks which depositors other the State has deposits and which been closed same question has decided for depositors of the Chesapeake Bank. Companies Listed Bonding involved the the State deposits amounts the lawyers repare: Public $20,000 Walter Clark counsel: Company, WashingBonding ton New AmsterCasualty Company, Pearre, counsel. The companies involved bonding the the total amount volved being are follows: Casualty Seaboard Surety Company Casualty Surety Company, New Amsterdam Casualty Liberty Bond Insurance Federal Surety Glens Falls Fidelity and Guaranty $40,595.98.

17. November 3, 1931 The Washington Times Washington, DC
Article from The Washington Times, November 3, 1931

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DEFUNCT BANK DEPOSITORS MUST WAIT At Least a Month Before Assets of Chesapeake Bank in Balto. Can Be Distributed BALTIMORE, Nov. 3.-It will be at least a month yet before the assets of the defunct Chesapeake Bank can be distributed to depositors, according to John D. Hospelhorn, deputy bank commissioner. The court of appeals last week removed one delaying factor by ruling that bonding companies guaranteeing State deposits have no preference over other creditors. This decision is also expected to bind companies bonding city deposits. Meanwhile, a hearing will be held November 10 on the petition of George W. Page, receiver of the bank, to have insurance companies pay a balance of $21,000 of a total of $402,000 of municipal funds in the bank. The companies claim that the stock belonging to the bank, which was held by the city, should not be charged to the companies.

18. January 25, 1933 The Evening Sun Baltimore, MD
Article from The Evening Sun, January 25, 1933

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ANOTHER Bank's Receiver Ready To Distribute It If Court Gives Approval REPORTS SECURITIES' OFF $902,495 Getting Finance Company Bids On Debts Still To Be Collected The receiver for the Chesapeake Bank has sufficient funds on hand or immediate prospect of collection to justify second distribution of 10 per cent. to depositors and creditors of the bank after the matter is submitted auditors for an accounting, if the court feels that such distribution is desirable at the present time. That statement made in spereport submitted today to Judge Eugene O'Dunne in Circuit Court No. by State Bank George Page, receiver of the bank, through Herbert Levy, his attorney. The special report also enumerated other assets held by the receiver for subsequent liquidation, giving both the book value and present market value of securities of the bank still held by delay of approximately three months would ensue even after plans second distribution were begun. the receiver pointed His report "The work of the preparation of the account, mailing the notices and mailing of the checks, will take approximately three months." Less Costly Than Average The receiver pointed out that the Chesapeake Bank's first partial disbursement was made much less pense than the average expenses in national bank liquidations by the Comptroller of the Currency during similar period. In referring to the expenses of liquidation, the receiver "In the communication of this honcourt requesting the data heresubmitted. was suggested that the interest of economy expedition, might be advisable depart from the present policy of liquidating the bank. Naturally the objective of your receiver attain the maximum of economy, efficiency and expedition in administration, and to that end your receiver anxious cooperate with the court evolving any plan that will greatest benefit to the depositors other creditors. Per Cent. Ratio" "In this inapfor your present this honorable court his expenses of liquidation in this those incurred in the liquidation of insolvent national banks. The receiver stated that in the liquidation national banks from 1865 by the Comptroller the Currency the ratio of expenses through per cent. that for the 1931 period covering the time of the Chesapeake receivership the ratio expenses through collections liquidating nabanks per cent., the other hand the ratio exthrough during the period covered by the first auditors' report in 3.90539 Trying Sell Realty The receiver reported that book of real estate still held the majority which represents the for book value the main bank building Paul The receiver reported that the real estate had been to various estate brokers in an attempt to locate purchasers, but that due the present state the real estate market little success resulted. He added that negotiations chasers of several items of the real still Drop In Value Stocks bonds the Chesapeake Bank not yet liquidated the receiver loss from book value the market value the report showed. book value the held by the receiver collection, totaled [Continued On Page 3,Column

19. January 25, 1933 The Evening Sun Baltimore, MD
Article from The Evening Sun, January 25, 1933

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MONEY ANOTHER Bank's Receiver Ready To Distribute If Court Gives Approval REPORTS SECURITIES' OFF Getting Finance Company Bids On Debts Still To Be Collected last Wednesday. The receiver reported many of these accounts ars being reduced weekly and monthly, under special settlement Bids Being Secured In line with the recent instructions by Judge O'Dunne the receiver submitted the bills receivable finance secure bids for the immediate purchase such counts carry out the judge's tion ascertaining whether any feasible for prompt liquidation of the accounts to finance that offers have the finance companies which asked consider purchasing the counts receivable. Stock And Bond Report The receiver reported that held by lend on the date of the appointment of the the closing bank in totaled the Edward stocks bonds held by the showed that stocks book value week amarket thereby showing loss $806,355.21 Bonds having book value The $134,570.75 last week market of thereby showing Parkway Two Largest Items The largest the of New Casualty Company stock, with book value the bank's and shares of Union Trust Company stock having book value Chesapeake Bank's counts The receiver's report gave of loss of the New Amsterdam stock. market value of on the shares the Union loss the Chesapeake books. Other Stocks Listed On the 280 shares Bank been which the Chesapeake Bank held. the report indicated representing the statutory bility holdings banks. in addition to the of the book value of $8,293.24 which the other bank's stock Among other stocks which losses were shown were 2,300 Appalachian book value market shares Arun- stein book value market 3.340 shares Church peake Mortgage Company, book value market nothing: church's Cities Service Company. book value market shares per preferred, book value $10,000, market nothing: shares Eastern Rolling book value market 534 Young's System. value and and shares Royal "At Finance and Credit Company, book value market nothing. Available In stating that the receiver then need cash available for the report added that "there are in mediate prospect justify the referthe auditor for the stating second account, additional throw view making distribucreditors of per cent., honorable the opinion that zation desirable to adopt such The receiver stated that negotiations been made concerning possibilthere such accounting the lowest An estimate of was made to the cost of such accounting. Expense Pointed When Judge recently quested the special report the demic assets and the possibility the than assets which otherwise would and require some liquidate. called attention the expenses and partial distribution and urged college plans made for liquidation possible without the necessity the partial distribution having deducted from the amounts available for depositors and creditors. More than year ago the Chesapeake Bank first distribution 22½ per cent. and creditors. depositors

20. March 16, 1933 The Evening Sun Baltimore, MD
Article from The Evening Sun, March 16, 1933

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RECKORD SAYS CUT BANK RECEIVERS SEEK WON'T THIN RANKS TO KEEP PREFERENCE No Members Of State Guard Have Resigned And He Expects None Will [Continued From Page 30] and unquestionably suffered diseases from that source after the armistice. "I was commissioned a short time before the armistice and was kept in the service until June. 1919 couldn't get ou t.I was in my fortyninth year. And having been accustomed to quiet pursuit of real estate all my life I came away from Fort McHenry in a state of complete ex- "Disabled Since 1921" "I have been totally disabled ever since 1921. I hadn't been out of uniform but a little over three weeks when I suffered a nervous breakdown and I have been under doctor's care almost ever since. If my pensation and my insurance were cut off I'd be absolutely dependent on charity. "I volunteered, I had sold by business and worked for year in the quartermaster department as civilian employe before was commissioned. had three minor children. was told that was too old for actual service in the army. But I wanted to do something." Matter Of Choice Uncertain The question as to whether the emergency economy bill eliminated the alternative of any member of the Maryland National Guard in choosing between remaining in the guard and staying on the Veterans' Administration pay roll was one which General Reckord was unable to answer Readjustments of benefits received by the veterans now rests upon regulations which will be drawn up by President Roosevelt, under the terms of the economy bill. These regulations will have the force of law. Just what the regulations will be is not known yet. 1.100 Officers On Original List The law which provided the retirement of emergency officers with pay was originally designed to take care of 1,100 officers who had received injuries in battle But as the result of ruling by former Attorney-General William D. Mitchell while Solicitor-General about 8,000 officers were granted pay. General Reckord said today that while he was still of the opinion that the economy bill was entirely too drastic, he was in favor of cutting down this list to the original 1.100 battle casualties and would heartily support any regulations issued by the President to that end. Pleas Filed To Intervene Suits Attacking Provision Of Law Seeking to uphold the preferences granted deposits of the receivers of the four Baltimore banks which are in receivership by provisions in Section 71-G of the Emergency Banking Law passed by the Legislature on March 4. attorneys representing the four receiverships today applied for permission to intervene in the pending injunction and mandamus suits attacking the validity of the new law. The action was taken by counsel for the receiver of the Chesapeake Bank, the Park Bank and Title Guarantee and Trust Company and the Commercial Savings Bank. Distribution At Stake The additional ten per cent. distribution to depositors of the Chesapeake scheduled to be made within little more than month, will depend largely upon the priority being upheld the courts, it was stated. While no distribution to depositors of the Park Bank is impending. the validation of the priorities granted by the new law will be necessary, it was said, to enable the receivership to act under recent authorization to pay off the remaining indebtedness of the bank to the Reconstruction Finance Corporation. City Intervenes The first hearings on the validity of the new banking law is expected to take place Saturday before Judge Eugene O'Dunne in the Circuit Court, No. 2. in connection with the injunction suit pending in that court. The suit sought to hold the banking law invalid and to enjoin any preferential payments under the new law by the Baltimore Trust Company. The mandamus suit, which also seeks to have the banking law declared unconstitutional and to prevent preferential payments by any bank under the new law. is pending in the Baltimore City Court, where hearings will be held shortly before Chief Judge Samuel K Dennis. An answer to the mandamus is due to be filed this week by State Bank Commissioner John Ghingher. Prior to the action of Herbert Levy, John E. Semmes, William L. Marbury,

21. November 2, 1934 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, November 2, 1934

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Politicana Annapolis, Nov. 1 (P)-Confidence for Governor Ritchie and the entire Democratic ticket. that Governor Ritchie would be re- elected by majority as great or larger than the 66,000 he received in 1930 was expressed tonight by Daniel S. Sullivan, who managed Dr. Charles Conley's primary campaign at an Anne Arundel county Democratic rally held at Crystal Beach. Approximately 3,000 persons, from every section of the county, gathered in and around the auditorium to hear local candidates speak. It was one of the largest rallies ever held in the county. Sullivan, who is chairman of the Democratic campaign speakers' committee, declared the attendance showed that Anne Arundel county was safe inefficient executive. Still nothing was done to remedy this situation or to take steps to protect the money of the many thousands of depositors. [Mr. Nice here read extracts from an address by Isaac Lobe Straus relating to the banking situation.] Questions Raised "I ask you, am right when I say there must be searching, thorough and impartial investigation? Am right when say that believe that if the true facts can disclosed, there may result some additional relief to the many thousands of unfortunate depositors, through salvaging and distribution of additional sums? "Are the people of Maryland to be forever kept in ignorance of the true facts, or are we, the people of Maryland, going to find out what became of our money? Are we not entitled to know, so that at least we may be able to profit by our sad experiences and provide against such condition in the future? Much has been said and written about this matter by worthy and respectable members of the Governor's own party. Criticism Is Cited "No denunciation I can make can be more severe than that of the Governor's opponent in the late primary and other prominent members of his own party. submit to you, the present Democratic dynasty to be continued in control, at sacrifice of the people's interest, and their right to know the conditions, so that, so far as it is humanly possible, these ditions may be rectified, or at least prevented in the future? "I propose searching, thorough and impartial investigation. propose that this shall be made by commission of three distinguished outstanding citizens to be appointed by me, regardless of their party affiliations, to whom shall delegate power equal to that of legislative inquisitorial investigators, and who shall report to me, so that may report to you. ask you, whose responsibility is it that at the close of business on April 29, 1933, there was total of State funds on deposit in various institutions to $7,112,759.42, of which more than two millions had been deposited by Mr Dennis, the State Treasurer, in the Union Trust Company, of which he was the president. Points To Deposits "Over one-half million was on deposit in the Baltimore Trust Company, and approximately $200,000.00 in the Title Guarantee and Trust Company, aggregating over $3,000,000 of the State's in these three banks, practically half of the total amount of the deposits of the State. "Upon the other hand, in the five national banks-the First National Bank, the Canton National Bank, the National Marine Bank, the National Central Bank and the Western National Bank-all of unquestionable solvency, there was less than $250,000 of the State's money on deposit. "I charge that the Governor of the State of Maryland knew the condition of these failing institutions. He could not have helped knowing it. His own appointee was Bank Commissioner of the State of Maryland. It was the latter's duty to keep the Chief Magistrate of this State advised. If he failed in this duty, then the Governor was Approximately For Nice thousand persons jammed into the Baltimore Talmud Torah Hall, 22 North Broadway last night to hear Harry W. Nice, Republican candidate for Governor and other members of the State-wide ticket. The rally was held under auspices of the East End Republican Club of which Samuel G. Lipman is president. Joseph Davis presided at the meeting. Harry F. Klinefelter, For Phelps vice-president of the Twenty-seventh Ward Republican Organization, went on record last night as indorsing John Phelps, independent candidate for judge of the Supreme Bench. derelict in his duty in not compelling him to keep him advised. "For months and months, however, running into years, it was common knowledge there was something wrong. Runs were being made upon these banks. Emergency meetings were being held, calls for aid were being sent to the Reconstruction Finance Corporation and large sums were secured from this source. "Why, under such circumstances. was this condition in the banking system of Maryland permitted to go on? There is only one answer. The political connections of the officers of these banks with the Democratic administration and the Chief Executive of the State were too close. The responsibility is on him and him alone. But this was not all. Long before the red flag of danger was waving over the Union Trust Company and the Baltimore Trust Company there had been two other failures in Baltimore city, to which have already referred. Way back in 1930 the Chesapeake Bank; then the Park Bank, with 80,000 or more depositors, working people, whose savings represented their all to them. "Nor were the depositors the only sufferers. Stockholders Hit, Claim "There were innocent, unsuspecting stockholders who had been led to believe that their investments in the stock of these institutions were safe. Stockholders who were induced to purchase stock of the Baltimore Trust Company within the last few weeks before its collapse, all of whose investments in this stock were wiped out completely. [At this point Mr. Nice referred at length to a description of the banking situation by Dr. Charles H. Conley an address at Hagerstown on June 19, 1934.] "Under the law of this State no stockholder be sued for double liability, save and except through receiver. It is pertinent, therefore, to inquire why the caused to be passed at the recent special session of the Legislature law preventing the appointment of receivers for these political banks, thus prohibiting the State Bank Examiner, under penalty of the law, from giving out information in connection with these political banks, safeguarding the large stockholders of such banks from being subject to double liability, and thus preventing the depositor from profiting from such action, while the stockholders of the smaller banks throughout the State were compelled to meet this obligation. This law has been extended for another year by executive proclamation. Calls Hold Too Strong "This political machine, however, built up with the people's money, was too powerful to overcome, and today the Democratic party, regard- shall not be selected for office merely less of the views of those thoughtful as reward for political favors. citizens who realized that the best "I have assured the people of this interests of their State and party State that the office of Insurance Comwould have been best served by missioner shall be filled by man of change of administration, finds itself in experience in insurance, competent and capable of fulfilling the duties the strangle hold of this Democratic which the office imposes upon him, machine. "Do those gentlemen who officered who will give his entire time to the discharge of his responsibilities. these banks and who are now straining every nerve and sinew to hold "I solemnly promise that when am elected Governor there shall be control of the State government. desire such an investigation? No. They no one appointed to fill public office have no love for the present Chief merely because of his political activiExecutive of this State, but to them ties. Appointees shall and must be he is safe. They are interested in men and women of high character and themselves, not in him. Their interest ability. is in maintaining the status quo, Refers To Auto Commissioner keeping the lid on, so that you and "What justification or excuse can the people of the State will never there be for the present automobile know the truth about these banks. who recently was ediWill Seek Advice torially called upon by The Evening "I have been questioned concerning appointments which I may make when am elected Governor. have stated, not once. but many times, that when am elected Governor, shall. in making my appointments, expect the assistance and advice of all associations which may be interested in the particular subject matter of the board or commission to be appointed. "I have laid down, as a primary principle, that there shall be minority representation on all boards and commissions. have criticized, and still criticize, the Public Service Commission as now composed. This Commission is of semi-judicial character. and, as such, its members should be and remain free from all political activities which might affect or tend to influence the exercise of their free will and judgement. "I am opposed to the practice of State Executive appointing. during the terms for which they are elected, members of the Legislature to public office or employment. Not Based On Favors "I have pledged myself that the police magistrates shall be men of high character and principle, and that they Sun to resign? For the present conservation commissioner, who has permitted an industry which, in 1919 was worth over $7,000,000 to the people of this State, to fall to such low level that today it is worth, according to the Governor's own statement, $2,000,000, and requires an expenditure of half million dollars to save it? "How can the Governor justify the appointment of an insurance sioner who lacked experience in insurance matters and who has failed to enforce the law providing for reserves to be put up by foreign insurance and casualty companies doing business in Maryland. which has caused great loss and suffering to those who have been so unfortunate as to have carried in such panies, relying upon the State insurance department to afford them

22. March 18, 1935 Evening Star Washington, DC
Article from Evening Star, March 18, 1935

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BANK DIVIDEND ORDERED. BALTIMORE, March 18 (AP).-Payment of a dividend totaling $105,000 to the depositors and creditors of the closed Chesapeake Bank was authorized today by Judge J. Frank Supplee, jr., on a petition of State Bank Commissioner John J. Ghingher as receiver. The payment is the third distribution to the depositors.