7739. Union Deposit & Securities Company (Stonington, ME)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 30, 1904
Location
Stonington, Maine (44.156, -68.667)

Metadata

Model
gpt-5-mini
Short Digest
bbf06e67580182fd

Response Measures

None

Description

Article (1904-10-06) reports heavy withdrawals ('a run') caused by the company's overinvestment in securities and consequent inability to meet checks, prompting suspension of payments. By Aug 1905 affairs were in the hands of a receiver and officers had 'decamped', with creditors preparing suit — indicating the bank did not resume normal operations and entered receivership.

Events (3)
1. September 30, 1904 Run
Cause
Bank Specific Adverse Info
Cause Details
Company had invested too heavily in securities and did not retain enough cash to meet checks; forced to protest paper which triggered withdrawals.
Measures
Cashier stated officers assured him funds in a few days to meet obligations.
Newspaper Excerpt
They were obliged to let some go to protest and this caused a run and brought about the suspension.
Source
newspapers
2. September 30, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed from insufficient cash due to heavy investment in securities and consequent run.
Newspaper Excerpt
the Union Deposit Co.'s branch at Stonington is in financial difficulties and last week suspended payment.
Source
newspapers
3. August 23, 1905 Receivership
Newspaper Excerpt
the affairs of the so-called bank have gone into the hands of a receiver - the outlook for the depositors ever receiving anything has grown no brighter; ... the Union Deposit and Securities Co. ... suspended payment and decamped, leaving a number of the citizens ... short in their finances.
Source
newspapers

Newspaper Articles (2)
1. October 6, 1904 The Republican Journal Belfast, ME
Article from The Republican Journal, October 6, 1904

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Article Text

Bank Suspension in Stonington. The Deer Isle Messenger reports that the Union Deposit Co.'s branch at Stonington is in financial difficulties and last week suspended payment. Many of the citizens are depositors and it is thought the concern's obligations in Stonington and Deer Isle will approximate $25,000. Fred E. Webb, town treasurer, has $1,400 of the town's money on deposit, beside several hundred dollars of his own, and C. H. S. Webb has a large deposit. Mr. Ellis, the cashier, says the trouble arises from the company's inyesting too heavily in securities and not retaining enough on hand to meet checks. They were obliged to let some go to protest and this caused a run and brought about the suspension. He has been assured by the officers of the company that in a few days he will have funds to meet all obligations.

2. August 23, 1905 Ellsworth American Ellsworth, ME
Article from Ellsworth American, August 23, 1905

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Article Text

Union Deposit and Securities Co. It has now been something more than a year since the Union Deposit and Securities Co., which started in to do $ banking business at Stonington, suspended payment and decamped, leaving a number of the citizens of this town and Stonington considerably short in their finances. This money, we understand, went into the Owl's Head & South Thomaston Electric R. R-and is there yet for all we know. Since then the affairs of the so-called bank have gone into. the hands of a receiver-but the outlook for the depositors ever receiving anything has grown no brighter as time advanced. Having tired of promises, a number of the creditors have "pooled" their interests and retained Attorneys Spofford, of Deer Isle, and King, of Ellsworth, to bring suite against the officers and directors of the bank, and we understand that the papers in the case are being prepared, and action will be brought at the next term of the supreme judicial court, which sits in OctoberDeer Isle Messenger.