7530. First National Bank (Union Bridge, MD)

View Charter #9066 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
9066
Charter Number
9066
Start Date
June 2, 1922
Location
Union Bridge, Maryland (39.569, -77.177)

Metadata

Model
gpt-5-mini
Short Digest
0a3aa08cdffbd9b3

Response Measures

None

Description

Articles report the First National Bank of Union Bridge was closed by its directors pending examination after its cashier confessed to embezzling/speculating, creating a large shortage. The directors requested the Comptroller of the Currency to take charge (receiver involvement). No run on the bank is described in the articles. The bank was seeking private contributions and a plan of liquidation to avoid formal receivership, but the Comptroller was already asked to take charge, implying suspension leading to receivership/closure. OCR errors in Article 1 corrected (e.g., 'Fi National Bank' -> 'First National Bank'; 'Peltimoro' -> 'Baltimore').

Events (6)
1. March 14, 1908 Chartered
Source
historical_nic
2. June 2, 1922 Other
Newspaper Excerpt
They say the shortage may reach $75,000. ... the directors closed the bank pending further examination and requested the Comptroller of the Currency to take charge. Thomas Kane, national bank examiner, was sent to Union Bridge and is now in charge.
Source
newspapers
3. June 2, 1922 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier E. F. Olmstead confessed to defaulting and using bank funds to speculate; initial shortage estimated $50,000–$75,000 (later reported larger).
Newspaper Excerpt
Friday, the directors closed the bank pending further examination and requested the Comptroller of the Currency to take charge.
Source
newspapers
4. July 6, 1922 Other
Newspaper Excerpt
PUBLIC NOTICE OF UNION BRIDGE BANK SHORTAGE ... This amounts to $168,367.92. The various assets and assessments ... have reduced the shortage to a little over $30,000. ... the directors, rather than allow it to pass into receivership, concluded to ask each depositor for a contribution ... to minimize the loss to the depositors. If this plan of liquidation be forced on the bank, the directors would withdraw their proposed contribution of $28,000 ... the depositors would then get is variously estimated at from 50 to 75 cents on the dollar, to say nothing of a delay of a year or more. -Union Bridge Pilot.
Source
newspapers
5. August 28, 1922 Voluntary Liquidation
Source
historical_nic
6. * Receivership
Newspaper Excerpt
requested the Comptroller of the Currency to take charge. Thomas Kane, national bank examiner, was sent to Union Bridge and is now in charge.
Source
newspapers

Newspaper Articles (2)
1. June 2, 1922 The Democratic Advocate Westminster, MD
Article from The Democratic Advocate, June 2, 1922

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Article Text

CASHIER A DEFAULTI EDW. F. OLMSTEAD, CONFESSES USING UNION BRIDGE BANK FUI TO SPECULATE-SHORTAGE ABC $50,000. E. F. Olmstead, cashier of the Fi National Bank of Union Bridge, I confessed to the board of direct that he is a defaulter to an unkno amount. He admits that he has us the money in speculation. He is at home under close surveillance. Neither the bank officials nor 1 Federal Treasury officials who : working on the accounts, will appre imate the shortage, which is in 1 savings department, but they say may reach $75,000. E. O. Cash, this city, who is 1 I heaviest stockholder in the bank, came suspicious some time ago tl all was not well with the instituti About three months ago he was ele ed president in place of Jacob Gladhill. who resigned and took 1 place of vice-president, and at or egan to look into the bank's affair Investigation showed that the was something wrong, but the sho age at first seemed to be only abo $4,000. Friday, the directors closed t bank pending further examination a requested the Comptroller of the Ct rency to take charge. Thomas Kane national bank examiner, was sent Union Bridge and is now in char although Mr. Cash and other ba officials are assisting him. It is said that individuals in t community may sustain consideral losses through the disappearance bonds which they had intrusted to I Olmstead. for safekeeping. These we not deposited in the bank and no ceipts were given, and it is said tl in such case there is no liability the part of the bank. It is believed that the bank will reorganized and that the deposito will lose nothing. The bank has a ca ital stock of $25,000, with surplus $22,500 and undivided profits of $ 500. It has been paying annual di dends of 10 per cent. and the last S of the stock was at $197.50 a share Olmstead was a teller in the Nati Bank of Peltimoro .

2. July 6, 1922 Catoctin Clarion Thurmont, MD
Article from Catoctin Clarion, July 6, 1922

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Article Text

PUBLIC NOTICE OF UNION BRIDGE BANK SHORTAGE The Town Hall was filled to capacity with depositors and patrons of the First National Bank last Saturday when the first public notice of the gross shortage was given out. This amounts to $168,367.92. The various assets and assessments, including a contribution from the directors has reduced the shortage to a little over $30, 000. If this amout is raised the business and building will be taken over and continued by . large banking interests. With this in view, the directors, rather than allow it to pass into receivership, concluded to ask each depositor for a contribution amounting to 11 per cent. of his or her deposits. This would yield practically $50,000 if all concur in this movement, reduce the per cent. asked for materially. Isaac Lobe Straus, a prominent and reputable attorney of Baltimore, was brought here by a number of depositors for impartial advice in connection with the bank. After a survey of the situation he made a statement that the proposed proposition to raise the remainder of the shortage was the only way to minimize the loss to the depositors, for he, as a lawyer, knew the great expense and its attendant delay in having receivers appointed. Should this plan of liquidation be forced on the bank, the directors would withdraw their proposed contribution of $28,000 and the amount the depositors would then get is variously estimated at from 50 to 75 cents on the dollar, to say nothing of a delay of a year or more. The directors and all interested in the bank are meeting with much encouragement and it is to be hoped that all will realize that the first loss is best and come forward and sign for this form of liquidation and thereby save, not only the greater portion of their earnings, but much time also. -Union Bridge Pilot.