7495. Garrett National Bank (Oakland, MD)

View Charter #6588 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
6588
Charter Number
6588
Start Date
March 21, 1933
Location
Oakland, Maryland

Metadata

Model
gpt-5-mini
Short Digest
1138fb021e231042

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1933-12-05
Date receivership terminated
1939-08-14
Share of assets assessed as good
57.4%
Share of assets assessed as doubtful
42.0%
Share of assets assessed as worthless
0.6%

Description

The articles describe the Garrett National Bank (Oakland, MD) being closed/suspended during the 1933 banking crisis and placed in conservatorship/receivership. No article describes a depositor run on this specific bank; instead a conservator/receiver was appointed and the institution remained closed with liquidation and dividend distributions over subsequent years. A new bank organization (also named Garrett National Bank) purchased the old bank building in 1936, but the original (old) Garrett National Bank remained in receivership and did not resume operations — thus this is a suspension followed by permanent closure/receivership. Dates derived from articles: suspension/holiday context in 1933; receiver actions and notices in 1935–1939.

Events (8)
1. January 22, 1903 Chartered
Source
historical_nic
2. March 21, 1933 Other
Newspaper Excerpt
George A. Fraley, Garrett National Bank, Oakland. ... announced receipt of authorization for the reopening of three more Federal Reserve System banks ... the bank also announced the appointment of conservators for four banks in Maryland. They follow: ... George A. Fraley, Garrett National Bank, Oakland.
Source
newspapers
3. December 1, 1933 Suspension
Cause
Macro News
Cause Details
Closed during the 1933 banking moratorium/holiday and broader banking crisis; conservator/receivership followed rather than a depositor run.
Newspaper Excerpt
The time required for the job of liquidation was slightly less than five and one-half years, having started about December 1, 1933.
Source
newspapers
4. December 5, 1933 Receivership
Source
historical_nic
5. February 28, 1935 Receivership
Newspaper Excerpt
JOHN H. BANE, Receiver for the Garrett National Bank of Oakland, Maryland. ... Under and by virtue of a power of sale contained in a mortgage ... default having occurred ... the undersigned Receiver for the Garrett National Bank of Oakland, Maryland, hereby gives notice ... will offer and sell ... real estate ... TERMS OF SALE AS PRESCRIBED BY SAID MORTGAGE: Cash on day of sale. JOHN H. BANE, Receiver for the Garrett National Bank of Oakland, Maryland.
Source
newspapers
6. December 19, 1935 Other
Newspaper Excerpt
OLD GARRETT NATIONAL TO PAY THIRD DIVIDEND ... A payment of a third dividend of 10% to the depositors of the closed Garrett National Bank of Oakland has been announced by Mr. John H. Bane, receiver. ... The payment of this dividend makes a total of 95% which has been paid to the depositors of this institution.
Source
newspapers
7. May 28, 1936 Other
Newspaper Excerpt
RECEIVER IS AUTHORIZED TO SELL BANK BUILDING Will Be Purchased By New Organization for Sum of $27,500 ... an order was passed authorizing the receiver to sell the bank building to the new bank, the Garrett National Bank in Oakland. ... Mr. Bane stated that this sale would enable him to bring the liquidation of the old bank near conclusion.
Source
newspapers
8. April 21, 1939 Other
Newspaper Excerpt
DEPOSITORS OF OLD BANK TO GET INTEREST CHECKS ... The dividend amounts to 7.66 per cent of the original claims and will make the total paid to depositors $107.66 for each $100 on deposit at the date of suspension. ... The time required for the job of liquidation was slightly less than five and one-half years, having started about December 1, 1933.
Source
newspapers

Newspaper Articles (7)
1. March 21, 1933 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, March 21, 1933

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Article Text

BALTIMORE, UNION TRUSTS OPEN TODAY Banks Will Function On Five Per Cent. Withdrawals Basis BOTH SET BACK BY Reorganization Plans Of Eastern Shore Trust Company Are Completed today announced receipt of authorization for the reopening of three more Federal Reserve System banks in the Fifth district, bringing the district total of reopened member banks to 274, while 114 remained closed. Banks reopened by authorization received today were the National Bank of Davis, at Davis, W. Va.; First National Bank, at Newport News, Va., and the People's State Bank, at Galax, Virginia. The bank also announced the appointment of conservators for four banks Maryland. They follow: A. Leroy Frederick County National Bank, at Frederick. George A. Fraley, Garrett National Bank, Oakland. Harrison Rider, Second National Bank, at Towson. Samuel P. Cassen, Towson National Bank, Towson. (Continued from Page 20) Mary's county, Mr. Miles said, the company's branches are the only banks operating. Others On 2% Basis Forty-three other county banks are operating on two per cent. withdrawal basis. Five are on five per cent. basis, three on ten per cent. basis. Withdrawals are hibited the case of forty-four county banks. Seventy-six are open hundred per cent. basis. Twenty-five city banks are open on one hundred per cent. basis and eight today will open under restrictions, leaving only three from which withdrawals are prohibited. said $250,000 was involved. Provisions Of Plan Warrants were issued for the arrest The plan, copies which have been Addison Harris, Jr., of Villanova, filed with the State Bank Commisthe president; Arthur B. Dauphinee, sioner, involves: vice-president, and Edwin S. Conro, 1. Organization of new company to called the County Trust Com- the treasurer, both of Philadelphia. pany of Maryland. William D. Gordon, State Secretary Issuance of $10 par common stock of Banking, said number of the company. for share of the charges "relate to alleged misappro$50 par of the East- priation of funds of the Franklin Trust ern Trust for the Company for the purchase of shares new $10 of the proposed stock the Franklin Trust in violaCounty Trust Company. tion of the law forbidding such purInvestment one-third the old chases.' deposits in the new common stock the rate of $33.33 WOMEN DEMOCRATS ELECT share. Transfer of the balance of the old Luncheon Club Names Mrs. Ethel deposits the R. Lorentz President proposed County Trust Company, where that would Mrs. Ethel R. Lorentz was reelected without restrictions. president of the Democratic Women's Sale of $1,000,000 worth of pre- Luncheon Club of yesterferred stock, debentures, the day meeting in the Emerson County Trust Company the ReHotel. Finance Corporation. Mrs. James E. Tippett, Mrs. Henry Mr. Miles' relative to R. Hall and Mrs. Howard Mattingly reorganization plan follows, in part: elected Mrs. EdTo Revalue Assets ward A. named recording "In keeping with the efforts of the secretary; Miss Myra Bangert, correFederal to establish sponding secretary, and Mrs. Gilbert the banks of the country on perma- Brannan, treasurer. nent and our purpose all of the assets of the com- To Address School Group pany in light present-day values Mrs. Alfred Levis, State chairand charge off of our books en- parent education, will address tirely all assets doubtful character Parent-Teacher Association to reduce the book value of all Liberty School, 64, tonight. Her curities to their actual market value subject be "Home Responsibility as March and create capital to Children." Miss Laura Wells structure sufficient size supported principal of the school. by adequate surplus and reserves To Observe Maryland Day against further fluctuations in values The Baltimore Chapter the insure the absolute permanence and of the institution. Daughters of the American Revoluwill celebrate Maryland Day Fri"To do this is necessary first for the to realize that day at the Arundell Club hall. Mrs. must be largely sacrificed. Arthur P. Shanklin is regent of the

2. February 28, 1935 The Republican Oakland, MD
Article from The Republican, February 28, 1935

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Article Text

SATURDAY, MARCH 23, 1935, at the hour of 2:00 o'clock P. M., in front of the Court House in the Town of Oakland, Maryland, offer and sell to the highest bidder all of the following described real estate, to-wit: All that piece or parcel of land situate, lying and being in Garrett County, Maryland, containing the quantity of ONE HUNDRED EIGHTEEN AND ONE-FOURTH ACRES, it being the same property as described in a confirmatory deed from Jane Wolf to Jennie Browning and Gertrude Browning, dated the sixth day of May, 1903, and recorded in Liber E. Z. T., No. 44, folio 541, etc., one of the Land Records of Garrett County; also described in a deed from Jennie Schultz and Paul A. Schultz, her husband, to Gertrude Browning and Veronica Browning as tenants in common, dated the 13th day of May, 1903, and recorded in Liber E. Z. T., No. 44, folio 543, etc., one of said Land Records; also described in a deed from Veronica Whitehill (nee Browning), and William D. Whitehill, her husband, to Gertrude Browning, dated the 17th day of September, 1909, and recorded in Liber E. Z. T., No. 59, folio 219, etc., one of said Land Records; especial reference being made to the aforesaid deeds and the records thereof for a more particular description of said parcel of land. This is a valuable farm property, improved by a good dwelling, barn and outbuildings. TERMS OF SALE AS PRESCRIBED BY SAID MORTGAGE: Cash on day of sale. JOHN H. BANE, Receiver for the Garrett National Bank of Oakland, Maryland.

3. February 28, 1935 The Republican Oakland, MD
Article from The Republican, February 28, 1935

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Article Text

Mortgagee's Sale VALUABLE REAL ESTATE In Garrett County, Maryland. Under and by virtue of a power of sale contained in a mortgage from Gertrude Browning and George D. Browning, to the Garrett National Bank of Oakland, Maryland, dated February 27, 1928, and recorded among the Mortgage Records of Garrett County in Liber E. Z. T., No. 96, folio 361, etc., default having occurred under the terms and conditions of said mortgage, the undersigned Receiver for the Garrett National Bank of Oakland, Maryland, hereby gives notice that he will, on

4. February 28, 1935 The Republican Oakland, MD
Article from The Republican, February 28, 1935

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Article Text

Receiver for the Garrett National Bank of Oakland, Maryland.

5. December 19, 1935 The Republican Oakland, MD
Article from The Republican, December 19, 1935

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Article Text

OLD GARRETT NATIONAL TO PAY THIRD DIVIDEND Will Make Total of 95 Percent Which Has Been Paid To Depositors of This Bank PAYMENT ABOUT $81,000 A payment of a third dividend of 10% to the depositors of the closed Garrett National Bank of Oakland has been announced by Mr. John H. Bane, receiver. The checks have been prepared and are now ready for distribution and all depositors who have proven claims are requested to call at the bank and receive their checks. The payment of this dividend makes a total of 95% which has been paid to the depositors of this institution. The payment of a dividend at this time was made possible through a loan from the Reconstruction Finance Corporation and this makes it necessary for the Receiver to collect the remaining assets and repay the loan before future dividends can be paid. The amount of the distribution is approximately $81,000 and should greatly stimulate the rush of Christmas buying in this section.

6. May 28, 1936 The Republican Oakland, MD
Article from The Republican, May 28, 1936

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Article Text

RECEIVER IS AUTHORIZED TO SELL BANK BUILDING Will Be Purchased By New Organization for Sum of $27,500 Following an open hearing on the petition of John H. Bane, receiver of the Garrett National Bank of Oakland (old bank), held in the Garrett County Court House on Monday, May 25, before Judge David A. Robb, an order was passed authorizing the receiver to sell the bank building to the new bank, the Garrett National Bank in Oakland. The consideration was to be $27,500. It was testified at the hearing by parties from the bank and by the receiver that the consideration was agreed upon as adequate and a fair price, considering the present market for real estate, age and condition of the building. The banking house, furniture and fixtures were valued at $79,415 in a published statement of the old bank on December 31, 1932, a few months prior to the bank holiday. It is understood that as soon as the transaction is consummated the new bank will proceed to recondition and repair the building at an estimated cost of about $2,500. Mr. Bane stated that this sale would enable him to bring the liquidation of the old bank near conclusion and that steps would be taken shortly to collect the remaining unpaid notes and other claims now in his hands as the receiver. Mr. Bane will retain his present office in the building until the final liquidation of the old bank.

7. April 20, 1939 The Republican Oakland, MD
Article from The Republican, April 20, 1939

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Article Text

DEPOSITORS OF OLD BANK TO GET INTEREST CHECKS Dividends Payable Friday Equal To 7.66 Percent of Original Claims Final interest dividend checks to depositors of the old Garrett National Bank of Oakland will be ready for distribution on Friday (tomorrow) morning, April 21, it was announced today by John H. Hoffman, receiver, who has been in charge of the affairs of the old bank for several months. The dividend amounts to 7.66 per cent of the original claims and will make the total paid to depositors $107.66 for each $100 on deposit at the date of suspension. So far as is known very few of the many thousands which were closed during the moratorium, have surpassed this record. The time required for the job of liquidation was slightly less than five and one-half years, having started about December 1, 1933. This was some weeks after the new bank was opened for business. The first payment was a 60-percent dividend. Mr. Hoffman stated that this trust had been mostly free from those distasteful and embarrassing tasks which many receivers experience. Mr. Hoffman said that within a short time he will turn over to the original stockholders what is left of the uncollected assets. Claimants are being requested to call promptly for checks so that there would be as little delay as possible in closing the trust.