7417. National Bank (Chesapeake City, MD)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
6845
Charter Number
6845
Start Date
April 7, 1922
Location
Chesapeake City, Maryland (39.531, -75.807)

Metadata

Model
gpt-5-mini
Short Digest
a2940a53655a4e45

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Books examined

Description

Multiple April 7โ€“8, 1922 articles report a run on the National Bank of Chesapeake City caused by false rumors about a local merchant/landowner. The bank paid withdrawals by borrowing cash from Wilmington and Elkton, and the Elkton Banking & Trust Co. agreed to take over the Chesapeake City bank's assets and guarantee deposits (legal transfer completed later). There is no clear report that the Chesapeake City bank suspended payments; it remained open while being supported and then absorbed, so I classify as run_only while noting the subsequent takeover/merger by Elkton.

Events (4)

1. June 19, 1903 Chartered
Source
historical_nic
2. April 7, 1922 Other
Newspaper Excerpt
An agreement has been reached ... whereby the Elkton Banking and Trust Company has taken over the assets of the National Bank of Chesapeake City and guarantees all deposits. (announced about 1 p.m.)
Source
newspapers
3. April 7, 1922 Run
Cause
Rumor Or Misinformation
Cause Details
False/unfounded rumors that a local merchant or landowner had failed and that the bank carried large amounts of his paper, which spread through town and prompted depositors to withdraw funds.
Measures
Officials borrowed cash from a Wilmington bank and the Elkton Banking and Trust Company paid out cash on demand; appealed to Elkton and Wilmington banks for immediate cash support.
Newspaper Excerpt
Rumors ... started a serious run on the Chesapeake City National Bank ... depositors started to withdraw their money.
Source
newspapers
4. May 12, 1922 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (11)

Article from Evening Journal, April 7, 1922

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CHESAPEAKE CITY'S BANK HIT BY "RUN' (Continued From First Page.) Banking and Trust Company and also to a Wilmington bank for ready cash to meet the demands of the depositors. The Wilmington bank rushed a messenger to Elkton by train with cash where he was met by another messenger from the Elkton bank and the two were rushed to Chesapeake by automobile. At 1 o'clock this afternoon an official of the Elkton Banking and Trust Company issued the following statement: "An agreement has been reached between the Elkton Banking and Trust Company and the National Bank of Chesapeake City whereby the Elkton Banking and Trust Company has taken over the assets of the National Bank of Chesapeake City and guarantees all deposite." Harvey H. Mackey, former Sheriff of Cecil county, is president of the Elkton Banking and Trust Company. James S. Hopper, for many years superintendent of the Chesapeake and Delaware Canal, is president of the Chesapeake City Bank The assets of the latter bank. it is said. amount to about $400,000. and of this amount It is said about $300.000 are deposits. The capital stock is $25,000 and the surplus and undivided profits about the same amount. The National Bank of Chesapeake City was established about 15 years ago.


Article from Evening Journal, April 7, 1922

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CHESAPEAKE CITY'S BANK HITBY "RUN " Rumor Stirs Depositors; Wilmington and Elkton Rush Cash There ELKTON TRUST CO. GUARANTEES ASSETS Special to The Evening Journal. ELKTON, Md., April 7.-Rumors concerning a businees man in Chesapeake City, which as far as is known at this time are false. started a serious run on the Chesapeake City National Bank this morning which was still on at 2 o'clock this afternoon. The Elkton Banking and Trust Company and a Wilmington bank went to the assistance of the Chesapeake City institution when informed of the trouble and rushed money to the bank by automobile from Elkton to meet all demands. At one o'clock this afternoon the Elkton Banking and Trust Company announced that by agreement it had taken over the assets of the Chesapeake City bank and would guarantee all deposits. Following the failure of the Second National Bank of Elkton, Cecil county depositors are a little'flighty and careful when it comes to their bank deposits. Early this morning it became rumored in Chesapeake City that a merchant there had failed and that a large amount of his paper was held by the Chesapeake City National Bank. This report soon became spread all over the town, and depositors started to withdraw their money. As far as could be learned the report was groundless, yet this made no difference to the bank's depositors. In a short time there was a o line at the paying teller's window withdrawing their money, and as the number continued to grow the bank officials appealed to the Elkton k (continued on page seventeen) is


Article from Every Evening, Wilmington Daily Commercial, April 7, 1922

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CHESAPEAKE CITY BANK EXPERIENCED RUN THIS MORNING Rumor Stirred Depositors Who Demanded Money and Received It. MADE REPORT ASSURING Special Dispatch to Every Evening Elkton, Md., April 7.-Current rumore that the National Bank of Chesa. peake City was in a condition similar to the Second National Bank of this place culminated today in A run on the former institution Excited depositors began calling at the bank and demanding their money at an early hour and a few hours afterward the street in front of the bank, which does a business of about $400,000 a year, was crowded with anxious persone. To meet the heavy demand that the run caused on the funds of the bank, the officials were obliged to borrow ash from other institutions. About $20,000 was borrowed from a bank in Wilmington, and another sum from the Filkton Banking and Trust Co. which has agreed to support the Cheespeake City institution Up to noon today the bank officials were etill paying out cash over the counters James F. Hopper. formerly supere Intendent of the Chesapeake & Delaware Canal, is president of the bank William P. Davis, former county commissioner. is vice-president and Ray 1 Bouley is cashier Mr. Hopper, the president, was formerly vice-president f the Second National Bank of Elk K ton. severing hie connection with this institution to found the bank at Chempeake City. The bank has a capital, it is said, of $26,000. with surplus and undivided profits amounting to about $23,000. It was established about 15 years ago. Officials of the bank gave out the following statement to Inquirera: "An agreement hae been reached between the Kikton Banking and Trust Co., and the National Bank of Chosapeake City whereby the Elkton Banking and Trust Co. has taken over the assets of the National Bank of Chesapeake City and guarantees pay ment of all deposits.


Article from Evening Journal, April 8, 1922

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BANK RUN STOPS AT CHESAPEAKE Elkton Trust Co. Buys Stock at $40 Plus Liquidating Value SOME DEPOSITORS RETURN MONEY Special to The Evening Journal. ELKTON, Md., April 8. - After the announcement was made at Chesapeake City yesterday afternoon that the Elkton Banking and Trust Company had by agreement taken over the assets and guaranteed all deposits of the National Bank of Chesapeake City, the run on that bank, which was started by a rumor in the morning, ceased. It was stated today that while many depositors withdrew their accounts yesterday, the actual amount of money taken out was not so large, as most of those who withdrew were small depositors. Irving T. Keppler, treasurer of the Elkton Banking and Trust Company, went to Chesapeake City yesterday afternoon and made the announcement relative to that company guaranteeing the deposits. The run started soon after that. The bank kept open more than an hour after the usual time for closing yes(Continued on Page Two.)


Article from Every Evening, Wilmington Daily Commercial, April 8, 1922

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BANK FLURRY ENDS, SAFETY IS ASSURED TO ALL DEPOSITORS Chesapeake City Concern is Taken in Charge by Elkton Banking and Trust Co. CAUSE OF THE BIG SCARE Special Correspondence Every Evening Elkton, Md., April 8.-After an excited time yesterday, when hundreds of depositors of the National Bank of Chemapeake City made a wild seramble to get to the Institution and withdraw their funds, following A false rumor that the bank would close Its doors. all la quiet and peaceable In the little town at the west end of the Chemapeake & Delaware Canal, today With the Elkton Banking and Trust Co. taking over the Chesapeake City Pank's auneta the depositors felt con fident their money was safe again The managers of the Elkton Bank Ing and Truet Co. made a masterful stroke when they jumped in to help the canal bank In Its troubles, which came without a minute's warning. the bank not having sufficient cash In the vaults to meet the excited run that was made on the Institution. The Elicton Trust Co. hurried to the paststance, and on finding more ready cash was needed, made a call on one of Willington's strong Institutions, which supplied cash money enough for all demands Thursday, a national bank examiner visited the Chesspeake City Bank and found it in good condition Yesterday the government paid off its large force of employes by checks and It was some holding up in cashing those checks that is reported to have started the run. The Chemapeake City Bank did not have enough ready cash on hand to pay the government's checks and they quietly requested the holders of such checks to wait until Later in the day, when they could get the ready cash from another institution. This caused some of the workmen to get angry and the false report was started that the bank was about to fail A meeting of the Chesspeake City bank's officials and the Elkton Banking and Trust Co., is being held today, when the latter Institution will take over the Chesapeake City bank and operate it as one of its several branch banks The acquiring of the Chempeake City bank will make the Elkton Trust Co., nearly a two-million dollar concorn. d It is reported the Elkton Trust Co. has had its eye on the Chesapeake City bank for some time and the opene ing of yesterday gave the chance to take it over W The Elkton Trust Co. will now have K. branches at Cecilton, Chesapeake City e Elkton and Rising Sun. It is a grow ing Institution, having been organize! about ten years ago.


Article from The Wheeling Intelligencer, April 8, 1922

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GET MONEY ON DEMAND Wilmington Del. April F--Frightened to positors, excited by rumors or troilble made a run on the aNtional Bank of Chesapeake City, Md. today. Bank officials met the run by payment on demand Later an agreement was made with the Eikton Banking a Trust company to take over the assets of the Chesapeake City bank and guarantee payment of all deposits


Article from The Daily Banner, April 8, 1922

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FALSE RUMOR PERILS BANK Depositors Soon Satisfied When Funds Are Guaranteed. Chesapeake City, Md., April 8.-Unfounded rumors that the National Bank of Chesapeake City had been carrying the paper of a land owner who had been caught in stock market speculation caused a run on the bank. Several hundred depositors took part. The bank officials sent a call to the Elkton Banking and Trust company, which sent representatives and a guarantee arrangement was reach ed for the depositors. The Chesapeake bank has a capital of $25,000 and undivided profits of $23,000. It has been doing business fifteen years


Article from Newark Post, April 12, 1922

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Exciting Time In Chesapeake City Run on Bank There Started by False Rumor-Elkton Concern Interested Chesapeake City had more excitement last Friday morning than it has had in the past few years all put together. There was a run on the National Bank of Chesapeake City. This run is said to have been due to a report circulated that a land owner in the vicinity of the town was heavily involved to the bank and the doors of the institution were about to be closed. The bank was not prepared to meet the heavy demand for cash and an to Elkton appeal the Banking made and Trust Co., who hurried all available cash to the assistance of the Chesapeake City bank. A bank in Wilmington was also appealed to and forwarded cash to help meet the demand of depositors. Officials of the Elkton Banking Trust Company then went into conference with the board of directors of the Chesapeake City National Bank and by noon a notice was issued reading as follows: "An agreement has been reached between the Elkton Banking and Trust Company and the National Bank of Chesapeake City whereby the Elkton Banking and Trust Company has taken over the assets of the National Bank of Chesapeake City and guarantees all deposits." This notice quited the excited depositors and the run soon died down. A large number of those who had drawn out their money in the morning returned durng the afternoon and redeposited when they were assured that the bank was perfectly solvent and that they had the backing of the Elkton Trust Company. Thursday a National Bank Examiner paid his annual visit to the Chesapeake City Bank and found its condition in good shape and an effort will be made to ferret out the party that started the false report which caused the run. The bank was organized fifteen years ago with James S. Hopper, its president, former County Commissioner William B. Davis, of Cecilton, vice-president, and Raymond J. Goulay, cashier. It has a capital of $25,000 with nearly $23,000 undivided profits and surplus. The statement shows that they have been doing over $300,000 worth of business and were gaining each year. The taking over of the Chesapeake City Bank by the Elkton Trust Company will give this corporation, banks at Ceciltown, Chesapeake City, Rising Sun and Elkton.


Article from The Midland Journal, April 14, 1922

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RUN ON BANK CAUSES MERGER. I Chesapeake City Bank Absorbed By Elkton Trust Co. Much excitement prevailed in Chesapeake City on Friday, when a rumor was circulated that a business concern of that town, which had a large amount of paper in the First National Bank of Chesapeake City was about to go into the hands of receivers. A run on the bank followed for several hours and would have resulted in the Institution closing but for the Elkton Banking and Trust Company, which sent sufficient cash to meet the emergency. A Wilmington trust company also sent many thousands of dollars to tide over the demand made by the excited depositors. The bank kept open its doors until 6 o'clock Friday evening. When the depositors were satisfied that their money was safe, the run ceased. The flurry, however, resulted in an agreement being reached between the Elkton Banking and Trust Company and the Chesapeake City National Bank whereby the Elkton institution has taken over the Chesapeake City bank and guarantees all deposits. This merger will result in making the Elkton Trust Company the largest financial institution in the county. I


Article from Evening Journal, April 22, 1922

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MEDICAL MEN ELECT OFFICERS Dr. D. I. Dodson, of Rising Sun, Heads Cecil County Society BANK CAPITAL TO BE INCREASED Special to The Evening Journal. ELKTON, Md., April 22.-At the annual meeting of the Cecil County Medical Socitey held at Union Hospital here yesterday, the following officers were elected for the ensuing year: President, Dr. D. I. Dodson, of Rising Sun: vice-president, C. I. Benson, of Port Deposit; secretary, and treasurer, Dr. Howard Bratton, Elkton, re-elected for the twentieth consecutive year; delegates to State convention, Dr. H. Arthur Mitchell, Elkton; censor, Dr. John H. Jamar, Elkton. The Woman's Club of Elkton has elected the following officers for the ensuing year: President, Mrs. Hester C. Levis: vice-president, Mrs. Clarence C. Strickland; corresponding secretary, Miss Mary H. Jamar; recording secretary, Miss Grace W. Price; treasurer, Miss Susan Bratton; directors, Mrs. Charles M. Boulden, Mrs. Reginald Constable, Mrs. Standly Evans and Mrs. Henry M. McCullough. The following delegates were chosen to represent the club at a luncheon at the Belvedere Hotel, Baltimore, next Thursday, in e connection with the Pan-American t Conference of Women, being held in t that city April 20-29; Mrs. Hester Levis, Mrs. I. W. Davis, Mrs. Reginald Constable, Miss Katherine Wil1 son and Miss Mary H. Jamar. t At an afternoon party given this t week by Mrs. L. Edward Phillips at her home on North street, the en1 gagement of Miss Anna Mae Davis, n daughter of Mr. and Mrs. Benjamin H. Davis, was announced to Charles e A. Grant, son of Mr. and Mrs. Clark Grant, of Cherry Hill. n The directors of the Elkton Banking and Trust Company, who recently bought the capital stock of the Chesapeake City National Bank, n when a "run" was started on the institution about three weeks ago, have found it necessary, under the law, n to increase their capital stock from e $100,000 to $125,000. in order ta e take over and operate the Chesapeake bank as a branch institution. s The stock will be offered to the n stockholders at $75 per share, which is $25 above par. The institution is 1still being operated at Chesapeake rt City, but the legal transfer will proby ably not take place for at least a month. At present, however, it is is practically a branch of the Elkton ch Banking and Trust Company. an


Article from The Midland Journal, May 26, 1922

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TOWN AND COUNTY. Short Paragraphs of Events in the County During the Past Week LOCAL HAPPENINGS BRIEFLY NOTED Miss Lidie Stewart spent the weekTuesday next is Memorial Day. end in Baltimore, the guest of Miss Feels like the good old summer Laura A. Price. time. Mrs. Sophia Dickey, of WilmingFriday, May 26, School Rally Day ton, is visiting her daughter, Mrs. at Elkton. M. E. Flounders. The stores in town will be closed Mrs. Isabel Pogue is visiting her on. Decoration Day, Tuesday, May 30. daughter, Mrs. J. A. Hartenstine, Principio Furnace. The auto-bus line between Elkton and Newark has been suspended Miss Matilda Duyckinck has reowing to insufficient patronage. turned from Devon Manor School for the summer vacation. Tuesday, May 30, Memorial Day, being a legal holiday, the banks will Mrs. Ida Harkness and Mr. Charnot be open for business on that les Purnell, both of Elkton, were date. married Monday evening, May 15. The Board of County CommissionMiss Jane Maxwell, of Philadelers for Cecil County has appointed phia, spent Saturday and Sunday Frank S. Barrett, of Port Deposit, with her cousin, Miss Gertrude S. constable for the Seventh Election Dare. District. Rev. C. C. Harris is attending Rising Sun is to have another commencement and class reunion at garage. Chas. W. Grason expects his alma mater, Asbury College, to erect a building on his East Main Kentucky. street lot, in the near future, for Misses Mildred and Dorothy Smith. garage purposes. of Richwood, W. Virginia, were Thrown out of his automobile visitors of Miss Wilamina Ward when he ran the machine into a pole, over Sunday. Paul Cameron, of Elkton, sustained Miss Ida Lowell, of New York, a fractured collar bone. His maand Miss Frances Burdsall, of chine was badly damaged. Wenonah, N. J., were week-end An explosion of material used in guests of Miss Matilda Duyckinck. the manufacture of "spit devils' Mr. and Mrs. J. F. Sadler, of slightly injured three workmen at Roanoke, Va., former residents of the Victory Sparkler Company's our neighborhood, are visiting their plant, near Elkton, last week. son. Lawrence Sadler, and, wife, of The new fire engine house, conFarmington. structed of concrete blocks in the Miss Mary Alexander, daughter rear of the public hall building, is of Isaac Alexander, Russellville, Pa., nearly completed. It is a one story and Andrew Mullin of Rising Sun. structure facing Cherry street. were married in Rising Sun, WeaMiss S. Corinne Jamar, of Elkton. nesday week. has been awarded first prize for a minature at the Brooks Memorial Mrs. E. Hughes Keilholtz. who has Art Gallery, Memphis, Tenn. She been receiving treatment for some was also awarded a first prize last weeks in the West Grove hospital is much improved, and expects to reyear. turn to her home here this week. In the report of sales of Treasury Savings certificates for the State of Mrs. Samuel H. King, of Elkton, Maryland, during month of April. has announced the engagement of Elkton stands first, Cumberland secher daughter, Charlotte Cecelia, to ond, Chesapeake City third; BaltiMr. Samuel Lyell Leithiser. The more city not included. marriage will take place in June. Gordon Jackson, of Perryville, Mr. William Heverin, of the Holly charged with shamefully beating his Hall farm, near Elkton, gave his step-father, Joseph W. Bignault, was friends a surprise last week when he given a hearing before Police Justice and Miss Anna Butler, of Christiana, Gove S. Scotten of Elkton, and senDel., were quietly married on Friday tenced to 30 days in jail. evening. The State Roads Commission on Miss Pauline Fredericks, daughter Tuesday opened bids oneseveral secof Mr. and Mrs. John T. Fredericks tions of road, including one in Cecti of Bacon Hill, and a former student County from Rowlandville to Five at the Women's College, Newark, Points, about 0.91 of a mile. The Del., eloped Saturday afternoon to low bidder was George A. Atkinson, Bel Air with Russel Waters of near at $40,429. Elkton, and was married. John Harris, a farmer of the A card from William West, who Second district of Cecil county, has been located in Bradentown, waived a hearing before Justice Florida, for the past two years, Scotten, of Elkton, on a charge of states that he and Mrs. West left on waylaying and shooting a neighbor. May the 21st for Baltimore, where David P. Fillingame, and was held they would arrive the morning of under $1000 bond. the 28th, continuing their journey The Directors of the Elkton Bankto Oxford by auto. ing and Trust Company have elected Invitations are out for the wedR. Goldey Warren, of Chestertown, Cashier of the Rising Sun Bank to ding of Miss Virginia Thomas Allen, daughter of General and Mrs. Edsucceed Lynn B. Gillespie, who goes to the Elkton bank. Mr. Warren ward M. Allen, of Darlington, and will assume his new duties June 1. Mr. Robert Hammond Webb-Peploe, of Baltimore, which will take place The stockholders of the Chesaon June 1st, at 6 o'clock (standard peake City National Bank have aptime at Kelvin Grove the home of proved the action of the directors in the bride's parents. selling the business of the institution to the Elkton Banking and Mrs. George M. Christie has sole Trust Company. The Elkton instiher residence and adjoining proptution was elected as Liquidating erty in Rowlandville to Horace W. Agent. Taylor, and will take apartments in The Cecil Star says of the fire enPort Deposit. gine, just received by North East: B. J. Aulde, whose saw mill at "The new fire engine is a beauty, Port Deposit was burned some right up to the times in every remonths ago, has purchased a tract spect, and something of which the of land near Oxford and will erect community has reason to be justly a mill thereon. proud. The protection furnished Elkton's town election, held on the town is well worth the investMonday, resulted in the choice of ment made. Wm. H. Mackall, as president; MilRaymond Newlin, Receiving Teller ler F. Magraw and Richard Ott. two of the National Bank of Coatesville year term commissioners; Edward is in West Chester jail, charged with T. Lynch and Ellsworth N. Sweet. the theft of more than $100,000. one year term commissioners. The arrested teller was not generally The first class in Home Hygiene his peculation so successfully that and Care of the Sick to be held in his speculation so successfully that Elkton has been completed. Much the bank officials were shocked to of the success of this class was due discover the shortage. to the comfortable room in which The editor of the Midland Journal the class met. This room was pronotices a dire challenge, threat, or vided by the Masons of the town. whatever one chooses to call it. All those who took the examinations published in this week's Oxford received certificates from the AmeriNews by a certain member of the old can Red Cross. The graduates were: Board of Rising Sun Town CommisMrs. Laura Biddle, Miss Elizabeth sioners, smarting under the lash of Biddle, Mrs. Carrie Davis, Mrs. public criticism, to meet them "face Evelyn A. Dunbar, Miss Catheryn M. to face." Just what is to happen to Minster, Mrs. Sue Ott, Mrs. Bertha us we do not know, but our place of D. Phillips, Miss Elizabeth Taylor, business is not hard to find whenever and Mrs. Clara E. Witworth. we are wanted.