Bath Trust Company (Bath, ME)

Episode Information

Episode UID
7997014491294
Episode Type
Run → Suspension → Reopening
Bank Type
trust
Bank ID
799701449 hash
Start Date
October 28, 1907
Location
Bath, Maine (43.911, -69.821)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f3a4a2450d3b011c

Response Measures

None

Events (3)
1. October 28, 1907 Run
Cause
Macro News
Cause Details
Panicky feeling and withdrawals triggered by the New York financial panic and lack of currency locally.
Measures
Closed doors; State Bank Examiner took charge; required thirty days' notice on some related accounts at affiliated bank.
Newspaper Excerpt
A run on the Bath Trust company this afternoon forced It to close Its doors.
Source
newspapers
2. October 28, 1907 Suspension
Cause
Macro News
Cause Details
Suspension due to heavy withdrawals and lack of currency amid the nationwide financial turmoil originating in New York; state examiner intervened.
Newspaper Excerpt
The Bath Trust Company ... closed its doors today as the result of the withdrawal of deposits. W. B. Skelton, State Bank Examiner, immediately took charge.
Source
newspapers
3. December 9, 1907 Reopening
Newspaper Excerpt
The Bath Trust Company ... resumed business to-day after a suspension of several weeks.
Source
newspapers

Newspaper Articles (20)
1. October 28, 1907 Evening Star Washington, DC
Article from Evening Star, October 28, 1907

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Article Text

positors' Checks. PHILADELPHIA, October 28.-At a meeting of the trust companies of Philadelphia today, following the action of the clearing house in Issuing clearing house certificates, the trust companiea decided that until further notice they will meet the checks of their depositors by the issuance of checks drawn by the trust compantes upon their respective national banks stamped as "payable through the clearing house only." and to pay out money over their counters in the same way as the national banks will do; that is, only for business requirements, pay rolls or the personal needs of depositors in cash where bankable funds payable through the clearing house will not answer. A committee of trust company prestdents to co-operate with the national banks was appointed as follows: Effingham B. Morris Girard Trust Company. chairman: Rudolph Ellis. Fidelity Trust Company: C. S. W. Packard. Pennsylvania Company for Insurance on Lives and Granting Annuities: Asa S. Wing, Provident Life and Trust Company; William L. Dubois, Philadelphia Trust, Safe Deposit and Insurance Company: William R. Nicholson, Land Title and Trust Company; Richard Y. Cook. Guarantee Trust and Safe Deposit Company, and Horatio G. Lloyd, Commercial Trust Company. Chairman Morris said after the meeting that the situation in Philadelphia is in admirable shape. and that this action of the trust companies was taken merely for the purpose of co-operating with the national banks to prevent large withdrawals of cash either to other cities or its hoarding by depositors. It is one of the means adopted. he said. for the protection alike of both banks and trust companies and their depositors. Notice of the action taken by the large trust companies was sent to all the trust companies in the city. Trouble in Kansas City. KANSAS CITY, October 28.-The Bankers' Trust Company has asked aid of the clearing house. but it was declined because of the class of collateral offered. James F. Downing, president of the Clearing House Asociation, said that no other banking institution here had requested aid and he believed them in a safe condition. The Bankers' Trust Company was organized last year and had a capital of $500,000 and a surplus of $14,000. It took over the busines of the City National Bank which failed in July, 1905. The Bankers' T ust Company was not a member of the clearing house, and while no run was experienced at this bank at the opening of business this morning, it was decided temporarily to suspend business to protect depositors and stockholders. Cashier Hughes said that the bank had ample assets to meet all liabilities Its foreign correspondents are the Oriental Bank of New York and the Pratrie National Bank of Chicago. There was no appearance of anything like a run at any of the other local banks up to 10:30 o'clock. Members of the Clearing House Assoriation today advised their correspondents in the southwest by telephone to restrict payments to depositors until the present flurry had passed. and the indications were that this advice would generally be accepted. Providence Is Quiet. PROVIDENCE, R. I., October 28.-At the hour of opening today there was every indication that banking conditions in this city would be normal today. Previous to the beginning of business today there was no evidence that any of the savings institutions would be subjected to an unusual number of withdrawals. Pittsburg Still Comatose. PITTSBURG, October 28.-It was decided not to open the Pittsburg Stock Exchange at a meeting of the board of directors this morning. Just when the exchange will resume transactions is not known Another meeting of the directors will be held tomorrow morning. It is the belief in some quarters that the exchange will remain closed throughout the week. Aside from the suspension of the exchange there is nothing else worthy of mention in the local financial situation. Boston's Precaution. BOSTON October -The Boston Clearing House Association today decided to issue clearing house loan certificates bearing interest at 7.3 per cent. The high rate of interest is for the purpose of retiring the certificates at the earliest possible date. The New York rate is 6 per cent. The loan committee of the clearing house will pass upon collateral and approve the issue of the certificates at 75 per cent of the market value of the securities. Leading bank officials declared today that the adoption of the clearing house certificates for the settlement of bank balances was solely as a precaution against the withdrawal of money by persons desiring to hoard it or to take advantage of high currency rates in other cities. Maine State Bank Suspends. BATH. Me., October The Bath Trust Company. a small bank controlled of New York closed

2. October 28, 1907 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, October 28, 1907

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# The Financial Situation. New York, Oct. 28.-New York banks continued on an increasing scale the use of clearing house certificates today as authorized at a session of the clearing house association Saturday. So far as the public is concerned the certificates do not figure at all. They are used merely to settle clearing house debits. They will prevent the tieing up of large sums, however, and practically remove all possibility of the crippling of financial institutions by preventing the cutting off of cash needed to meet withdrawals. Most of the trust companies also resorted to the payment of depositors with certified checks on clearing house banks in preference to releasing currency. The crowds about the banks and trust companies on which there were heavy runs last week had dwindled to mere handfuls early today. At several institutions the bank watchmen opened the doors long before the regular opening hour that the waiting patrons might find shelter in the lobbies from the storm. Secretary of the Treasury Cortelyou sent word from Washington that he considered the situation so well in hand that he will not return to New York. State Superintendent of Banks Williams announced last night that several State banks which closed their doors under the pressure of withdrawals asked permission to reopen. He did not say what answer will be returned. The pool formed last week and headed by J. Pierpont Morgan, which raised about $25,000,000, and loaned it on the stock exchange, was dissolved today as it is not believed that such action is now needed. Bank presidents believe that all the call money needed in the transaction of business now may not be obtained by brokers through their regular banks. Chicago, Oct. 28. -Chicago banks opened today with no indication of anything resulting from the announcement yesterday that clearing house certificates would be used in the transaction of business. Before the doors opened there were quite a few heads of smaller business houses waiting to learn what method would be followed, but there was no indication or intention to withdraw accounts. Assistant Chief Schuettler had 100 plain clothes men in reserve for use at the banks, but it was found that there was no necessity for their presence, so only 11 men were used more than the ordinary detail. All the banks announced that regular customers and positively identified checks would be accomodated with cash and that business houses would have no trouble in getting currency to meet their pay rolls and other business necessities. St. Louis, Oct. 28-One hundred policemen were assigned to duty around the banks and trust companies of the city this morning to prevent any crush which might follow the announcement that 30 to 60 days' notice is necessary to withdraw savings funds. Pittsburg, Oct. 28-The Board of Directors of the Pittsburg stock exchange this forenoon decided to remain closed today. Secretary Charles J. Holman stated to the United Press that there was no official announcement of the action to be made other than the board considered it best to remain closed in view of the troublous condition of monetary affairs in New York. Cleveland, O., Oct. 28. The Cleveland Clearing House Association has decided to issue clearing house certificates, if such action is found necessary. At the suggestion of the association the Savings Banks and Trust Companies today put into effect the time notice clause on all withdrawals of savings accounts over $50. Checking accounts are not involved. Cincinnati, O., Oct. 28. The following statement was issued by Cincinnati bankers after a conference: "In the interests of depositors and the public and as a basis of immediate general assistance, the Clearing House resolved to issue Clearing House certificates, and also resolved that all banks of this city, whether state or national, having savings accounts, exercise their right to decline to honor withdrawals on savings accounts. Bath, Me., Oct. 28. A run on the Bath Trust Company forced the institution to close its doors today. Its paid-up capital is $100,000 and its deposits are estimated at $540,000. Chicago, Oct. 8.-A run has started on the Hibernian Bank. There are more than 200 people in line and the line extends out into the street. Most of the anxious ones are women. The Hibernian has been regarded as the strongest State institution in Chicago.

3. October 28, 1907 The Seattle Star Seattle, WA
Article from The Seattle Star, October 28, 1907

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Maine Bank Closes. BATH, Me., Oct. 28.-A run on the Bath Trust company this afternoon forced It to close Its doors. It has deposits of $500,000, and capItal of $100,000.

4. October 28, 1907 The News-Democrat Providence, RI
Article from The News-Democrat, October 28, 1907

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A Morse Bank Closed Bath, Me., Oct. 28.-The Bath Trust company, a small bank with deposits or about $500,000 and controlled by Charles W. Morse of New York, closed its doors today as the result of a run of depositors. State Bank Examiner W. D. Skelton immediately took charge of the affairs. President W. B. Maussendon stated that the institution is perfectly solvent; that its suspension of business temporarily is due to lack of currency and that no one will lose a cent because of it. The company was organized Oct. 23, 1902, with a capital of $100,000. Mr. Morse obtained enough stock to give him control of the institution a year ago last March. Since the financial difficulties started in New York during which Mr. Morse retired from the directorate of several New York banks, people have been drawing their money in small amounts from the trust company, but the situation did not assume the proportions of a run. The bank opened as usual this morning and began to respond to the demands of a score or more of depositors who were waiting. After 20 minutes it was decided to close the doors temporarily, and the announcement was made that the officials were unable to obtai nenough currency. President Mussendon, after emphasizing the soundness of the bank, complained that the difficulty was brought about entirely by the lack of currency and the scare produced by conditions in New York. According to the last Maine bank report the company's liabilities amounted to $665,822, of which amount $129,692 was owing to savings depositors, $223,088 to demand depositors and $171,000 on time and demand certificates. The assets included $447,625 in loans and discount, $125,638 in bonds and $25,682 cash on hand.

5. October 29, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 29, 1907

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winter quarters. The Bath Trust Co., a small bank with deposits of about $500,000 and controiled by Charles W. Morse of New York, closed its doors Monday as the result of a run of depositors. State Bank Examiner W. B. Skelton immediately tok chare of the bank's affairs. President W. B. Mussenden stated that the institution is perfectly solvent, that its suspension of business temporarily is due to tack of currency and that no one will lose a cent because of it. The company was organized Oct. 23, 1902, with a capital stock of $100,000 and Mr. Morse obtained stock which gave him a controlling interest a year ago last March.

6. October 29, 1907 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, October 29, 1907

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CLOSED MAINE BANK AS RESULT OF RUN The Eath Trust Company Declared to Be Perfectly Solvent, Was Con nected With Charles L. Morse of New York. Bath, Maine, Oct. 29.-The Bath Trust Co., a small bank with deposits of about half a million dollars and controlled by Charles L. Morse of New York, closed its doors yesterday as the result of a run of depositors. State Pank Examiner W. D. Skelton immediately took charge of the bank's affairs. President W. B. Maussendon stated the institution is perfectly solvent that its suspension of business temporarily is due to a lack of currency and that no one will lose a cent. State Bank Examiner Skelton said last night that he would probably be unable to complete the examination of the trust company's condition before Wednesday. Until the examination is completed, he said, he could give no idea of what his recommendation in the ezee would be. Depositors in other Bath institutions made no unusual demands for money yesterday.

7. October 29, 1907 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, October 29, 1907

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Controlled by c. W. Morse. Bath, Me., Oct. 29.-The Bath Trust company, a small bank controlled by Charles W. Morse of New York, closed its doors as the result of withdrawal of deposits. State Bank Examiner Skelton immediately took charge. President W. B. Maussendon stated that the suspension of business was due to lack of currency. The capital is $100,000 and deposits $500,000.

8. October 29, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 29, 1907

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THE NEWS THIS MORNING. POREIGN.-General Maximoffsky, director of the Department of Prisons, was shot six times and killed by a woman in his office at St. Petersburg. The Red Star liner Finland, entering Dover Harbor at night, struck the breakwater and was badly damaged; no passengers were injured. New York interests obtained $5,000,000 in bar gold at a sharp advance in London; it is considered certain that the Bank of England's rate will be raised; stocks were generally steady on foreign exchanges, Americans showing advances. Russian election results show that the next Douma will be overBarbara Lawhelmingly conservative. ponkhin, daughter of the former Governor of Reval, was kidnapped on going out of the Aldwych Theatre, and is held prisoner in a cellar in the Northwest of London. King Alfonso and Queen Victoria were warmly welcomed in Paris; after a dinner at the Elysée Palace the Leading sovereigns started for England. British authors signed a petition for the abolition of the office of censor of plays. DOMESTIC.-President Roosevelt set November 16 as the date for the admission of Oklahoma into the Union. Oklahoma banks closed their doors following a proclamation by Charles Filson, Acting Territorial Governor, ordering a legal holiday until November 2 because The Bankers' of the money stringency. Trust Company, of Kansas City, with deposits of $800,000. closed its doors, but otherwise the financial situation in that city was strong. Boston's District Attorney, because of constitutional questions, abandoned the prosecution of a number of public officials on indictments for soliciting or holding places with public service corporations. The United States Circuit Court of Appeals, at Montgomery, Ala., denied a rehearing in the case of Greene and Gay, nor. A deficit of $25,000 was found in the accounts of the Dollar Savings Bank, of Akron, Ohio, following the suicide of the cashier. There was a slight run on the Hibernian Savings Bank, in Chicago: the municipal payroll of that city was held up. Because of the withdrawal of deposits the Bath Trust Company, at Bath, Me., controlled by Charles W. Morse, suspended operations. CITY.-Stocks made general net gains. The financial situation showed steady improvement. The runs on uptown banks were practically over, Lindsay Russell was appointed receiver of the business of Otto Heinze & Co. The Public Service Commission issued its final order for improved transit on the Fourth avenue and Madison avenue line. Dr. W. R. Gillette, ex-vice-president of the Mutual Life Insurance Company, was sentenced to serve six months in the petitentiary. It was reported to the coroner that Charles R. Henderson, a banker, had been killed on Sunday by falling from the window of his home, at No. 27 East 65th street. A motion to hold the night court open till 3 a. m., as formerly, was defeated by the Board of Magistrates. The subject of milk and its relation to the spread of tuberculosis was the chief topic at the meeting of the State Medical Society. The Aeronautical Congress discussed airships as adjuncts to warfare. Two men confessed to illegal registration. THE WEATHER.-Indications for to-day: Rain. The temperature yesterday: Highest, 60 degrees; lowest, 51.

9. October 29, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 29, 1907

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BATH TRUST COMPANY SUSPENDS. Maine Institution Controlled by Charles W. Morse Ceases Operations. Bath, Me., Oct. 28.-The Bath Trust Company, a small bank controlled by Charles W. Morse, of New York, closed its doors to-day as the result of the withdrawal of deposits. W. B. Skelton, State Bank Examiner, immediately took charge. The company was organized October 23, 1902, with a capital of $100,000. Mr. Morse obtained enough stock to give him control a year ago last March. President W. B. Mussenden declares the company Is perfectly solvent and that its trouble is due entirely to lack of currency. According to the last Maine bank report the company's liabilities amounted to $665,822. of which amount $129,692 was owing to savings depositors, $223,088 to demand depositors and $171,000 on time and demand certificates. The assets included $447.625 in loans and discount, $125,638 in bonds and $25,682 cash on hand. Following the suspension of payments by the trust company, the Lincoln National Bank, in which Mr. Morse also holds a controlling interest, announced that thirty days' notice of the withdrawal of deposits, as provided by law, would be required on all demands for more than $100.

10. October 30, 1907 Ellsworth American Ellsworth, ME
Article from Ellsworth American, October 30, 1907

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KITTERY TO CARIBOU. The saw-mill of A B. Bates & Co., at Oakland, was burned last Wednesday. Loss, $6,000; insurance, $3,500. Alexander K. Weatherbee, a well-known resident and ship carpenter of Brewer, died Sunday, aged fifty-five years. Harry, aged four years, son of James McDonough, of Houlton, while stealing a ride on a loaded team wagon last Wednesday, fell under the wheels and was killed. The four-masted schooner, Dean E. Brown, built for the lumber trade for the Benedict-Manson Marine Co., of New Haven, was launched last Wednesday from the yard of Cobb, Butler & Co., at Rockland. The schooner is 207 feet over all, and of 719 tons gross. In the trial of Wallace G. Everett at South Paris, the jury disagreed after being out twenty-five hours. Everett was charged with the murder of Edgar L. Radcliffe at the Crockett Hill mine, on June 13, last, placing the body in the dynamite house and blowing it up to conceal the crime. Fire in Loveitt's field, a summer colony at South Portland, Friday burned the new Chase house; a summer boarding house and four cottages, owned by E. E. Brewer, Mrs. B. B. Farnsworth and L. B. Dennett, of Portland, and Dr. Houston, of Northampton, Mass. The total loss is estimated at $27,000. Three Italians were killed Saturday near East Millinocket when an engine and eleven flat cars loaded with sand were overturned and submerged by the washing out of the foundation of a trestle on the Schoodic railroad now being built. A dozen Italians were thrown into the water. One was drowned, and two were buried beneath the sand. The Bath Trust Co., a small bank with deposits of about $500,000, and controlled by Charles W. Morse, of New York, closed its doors Monday as the result of a run of depositors. State Bank Examiner W. B. Skelton immediately took charge of the bank's affairs. President W. B. Mussenden stated that the institution is perfectly solvent, that its suspending of business temporarily is due to lack of currency that no one will lose a cent because of it. Wallace E. Berry died Sunday at his home in Winthrop. Mr. Berry had been in the employ of the commission of inland fisheries and game about twenty years. He was formerly in charge of the Monmouth fish hatchery and the Carleton brook hatchery and feeding station, and for four years past had been general superintendent of the fish hatcheries of the State. He was one of the foremost fish culturists in Maine. The Palmer house at Patten, owned by the G. L. Foss Co., and the residence and millinery store of S. C. Leslie were burned Friday. The total loss is $18,000, partially covered by insurance. The whole basement of the hotel was ablaze when the fire was discovered, and some difficulty was experienced by the fifty sleeping people in getting out. All escaped safely. None of the furniture was saved. A large barn connected with the hotel also was burned. Angus Grant, formerly of Bangor, was shot and instantly killed at Millinocket Sunday afternoon by an unknown Italian, who escaped into the woods. Grant, with three companions, one of whom was the unknown Italian, called at Fred Peluso's place in "Little Italy". The Italian volunteered to get some beer, and left the house to go for it. Grant and the others were following him when he turned on them and asked what they were following him for. A quarrel followed, and the Italian drew a revolver and fired, killing Grant instantly.

11. October 31, 1907 The Somerset Reporter Skowhegan, ME
Article from The Somerset Reporter, October 31, 1907

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As one of the results of the financial upheaval in New York, each of the Morse Steamship Companies will return to its old management before the combine was made. The only bank in Maine seriously affected is the Bath Trust Company, a small bank controlled by C. W. Morse. This is only suspended temporarily, and no one will lose a cent by it. The Banks of Maine are on a sound and substantial basis.

12. November 1, 1907 Middlebury Register Middlebury, VT
Article from Middlebury Register, November 1, 1907

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Bath Trust Company Closes Bath, Me., Oct. 29.-A run started on the Bath Trust company of this city forced the institution to close. Its paid-up capital is $100,000 and its deposits are estimated at $540,000. State Bank Examiner Shelton says that he will be unable to complete the examination of the bank's condition probably before Wednesday.

13. November 22, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 22, 1907

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The Recent Panic Spirit. The Bath Trust company, which was forced to suspend business for a short time as the result of a run caused by the panicky feeling aroused in Bath people by the New York financial situation, is declared by the State bank examiner to be in a sound condition with assets sufficient to meet every obligation and will at once resume business again. This is what was expected, and it is a pity that Bath gave way to the panic spirit sufficiently to embarrass the institution. Any bank can be put in a very uncomfortable plight if a great part of its depositors rush in at the same time and demand their money. There is no question that our Maine banks are all perfectly sound and the savings of the people are infinitely safer in their keeping than when taken out and hoarded at home. Happily the panie spirit is no longer in the am but it is very fortunate, both for the banks and for the depositors. that the Bath experience was not duplicated elsewhere. Runs on banks are often caused by the merest and most absurd rumors, by intangible and untraceable whisperings in the air, and those who are stampeded by them and who rush to the bank for their money are sure to be ashamed of themselves later. By losing their heads they not only injure themselves by losing the interest on the money which they withdraw, but they also injure the safe and legitimate business of the community. It is fortunate that no other city than Bath had this unpleasant experience during the brief and unnecessary period of financial unrest from which the country is now recovering.

14. December 9, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 9, 1907

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The only Maine banking institution which was forced to suspend by the New York panic, the Bath Trust Company. opens for business again today stronger than ever before.

15. December 10, 1907 New-York Tribune New York, NY
Article from New-York Tribune, December 10, 1907

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BATH TRUST COMPANY RESUMES. Bath, Me., Dec. 9.-The Bath Trust Company, at one time controlled by Charles W. Morse, the steamship man, resumed business to-day after a suspension of several weeks. At the time of the financial trouble, in the latter part of October, the company closed its doors in order that the depositors and stockholders might be protected.

16. December 10, 1907 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 10, 1907

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Bath Trust Co. Resumes Business. Bath, Me., Dec. 9.-The Bath Trust Co., at one time controlled by C. W. Morse, the steamship man, resumed business today after a suspension of several weeks. During the financial trouble in the later part of October the Bath Trust Co. closed its doors, in order that the depositors and stockholders might be protected. Throughout the day considerable business was transacted at the institution.

17. December 10, 1907 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, December 10, 1907

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Trust Company Resumes. Bath, Me., Dec. 9.- The Bath Trust company, at one time controlled by Charles W. Morse, resumed business today after a suspension of several weeks.

18. December 10, 1907 Tonopah Daily Bonanza Tonopah, NV
Article from Tonopah Daily Bonanza, December 10, 1907

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WILL RESUME BUSINESS. (By Associated Press.) BATH, Maine, Dec. 9.-The Bath Trust Company resumed business today, after a suspension of several weeks.

19. December 10, 1907 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 10, 1907

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BUSINESS RESUMED. Bath, Me., Dec. 9.-The Bath Trust company, at one time controlled by Charles W. Morse, resumed business today after a suspension of several weeks.

20. December 13, 1907 The Wageworker Lincoln, NE
Article from The Wageworker, December 13, 1907

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Trust Company Resumes. The Bath, Me., Trust company, at one time controlled by Charles W. Morse, resumed business after a suspension of several weeks.