8127. Lancaster National Bank (Lancaster, MA)

View Charter #583 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
583
Charter Number
583
Start Date
January 2, 1886
Location
Lancaster, Massachusetts (42.456, -71.673)

Metadata

Model
gpt-5-mini
Short Digest
d212d206

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1886-01-20
Date receivership terminated
1891-09-14
OCC cause of failure
Fraud
Share of assets assessed as good
49.7%
Share of assets assessed as doubtful
47.6%
Share of assets assessed as worthless
2.8%

Description

Bank suspended Jan 2, 1886 after President W. H. McNeil absconded with funds (defalcation). Examiner took charge and the bank was turned over to a receiver later in January 1886; ultimately wound up under receiver. No explicit run described in the articles—cause is bank-specific malfeasance leading to suspension and receivership.

Events (4)
1. November 22, 1864 Chartered
Source
historical_nic
2. January 2, 1886 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President W. H. McNeil (president) absconded with funds (defalcation), taking cash and securities, precipitating suspension.
Newspaper Excerpt
A notice that the bank had suspended business was posted on the door this morning. Bank Examiner Gatchell received orders from the comptroller of the currency at Washington to take full charge of the Lancaster National bank and examine into its affairs.
Source
newspapers
3. January 20, 1886 Receivership
Source
historical_nic
4. January 20, 1886 Receivership
Newspaper Excerpt
Bank Examiner Gatchell has turned the wrecked Lancaster National Bank over to the receiver. Mr. Gatchell says the bank is the worst skinned institution he has ever had anything to do with. He and the receiver both say that it is barely possible that the stockholders may escape an assessment.
Source
newspapers

Newspaper Articles (8)
1. January 3, 1886 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, January 3, 1886

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Article Text

Of Course He's in Canada. CLINTON, Mass., Jan. 2.-This morning Bank Examiner Gatchell received orders from the comptroller of the currency at Washington to take full charge of the Lancaster National bank and examine into its affairs. A notice that the bank had suspended business was posted on the door this morning. President McNeil's whereabouts is as yet unknown, but the indications point to his being in Canada. The defaulting president of the Lancaster bank, McNeil, secured but few available assets from the institution just previous to his flight. the whole amount being $7,000. The following is a list of the valuables he took from the vault on the eve of his flight:

2. January 3, 1886 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, January 3, 1886

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Article Text

Bank Suspension. [By telegraph to the Dispatch.] CLINTON, Mass., January 2.-This morning Bank-Examiner Gatchell received a telegram from the Comptroller of Currency at Washington authorizing him to take full charge of the Lancaster National Bank and examine into its affairs. A notice that the bank had suspended business was posted on the door this morning. President Mc-

3. January 7, 1886 The Austin Weekly Statesman Austin, TX
Article from The Austin Weekly Statesman, January 7, 1886

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Article Text

INVESTIGATING A BANK. CLINTON, Mass., January 2.-This morning Bank Examiner Gatchell received orders from the comptroller of currency at Washington to take full charge of the Lancaster National bank and examine into its affairs. Notice that the bank had suspended business was posted on the doors this morning. President McNeil's whereabouts are unknown, but all indications point to his being in Canada.

4. January 8, 1886 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, January 8, 1886

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Article Text

PRESIDENT M'NEIL FLED. Decamped with $7000 in Gold, and Some Rutland Marble Stock. CLINTON, Mass., Jan. 3.-There is now but little doubt that W. H. McNeil, president of the Lancaster National Bank, is a defaulter. An honored man, universally regarded as above reproach. has gone off, and so has a goodly amount of other people's money. The investment committee of one of the Lowell banks called upon him the first of the week relative to some of its money, but he talked in such a suave manner and made affairs appear in so safe a light that all suspicion was swept aside. Early Tuesday morning he took a train for Boston. What he did there is not known. His arrival here was not long after the bank closed and he went to that institution soon after Cashier Forrester had gone to his home. That official had, during the day, been looking into the bank's affairs, and left with the intention of returning later to prosecute his labors, and in view of this intent he did not put on the time-lock. The theory is that President McNeil profited by the nonusage of that safeguard and secured the money. Just how much he is alleged to to have secured is not given out, but it is authoritatively affirmed that he took $6000 in bills, $1000 in gold, and about $35,000 worth of stock in a marble quarry at Rutland, Vermont. Then he went out unseen, reached the station, and from there was driven to Lancaster by a hackman. Mr. McNeil was accompanied by a person unknown to the driver of the hack, but possibly known to the directors, who claim to be able to guess quite well upon the identity of the stranger. The companion of the fleeing bank president went to the latter's house and got his bag, which was handed to him for that gentleman, who did not leave the team. He then took a hurried drive to Fitchburg, from which point he went no one knows just where. While waiting at the station in that city he was accosted by an intimate acquaintaince, but he ignored his friend. Since that moment he has not been heard from. Mr. McNeil was one of the three receivers of the Lancaster Savings bank. The affairs of that institution were about ready to be settled up, and it is thought that the near approach to the time when a final dividend was to be paid the depositors compelled McNeil to go by a fast express, as he had tangled up the receiver's deposits with his schemes in such a manner that they could not secure their funds and close up the business of the bank, SO long partially defunct.

5. January 23, 1886 National Republican Washington, DC
Article from National Republican, January 23, 1886

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Article Text

The Worst Skinned Institution. BOSTON, MASS., Jan. - Bank Examiner Gatchell has turned the wrecked Lancaster National Bank over to the receiver. Mr. Gatchell says the bank is the worst skinned institution he has ever had anything to do with. He and the receiver both say that it is barely possible that the stockholders may escape an assessment. It will depend upon the amount realized from doubtful assets. Most of the notes to the bank have been rediscounted, and in one case a mortgage has been sold three or four times, the note being kept at the bank as a convenience in collecting the interest. Gen. Butler has been retained by the directors of the bank to go to Washington and secure the removal of Receiver Corcoran if possible.

6. November 18, 1887 New-York Tribune New York, NY
Article from New-York Tribune, November 18, 1887

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Article Text

SUIT BY A BANK RECEIVER. FITCHBURG, Mass., Nov. 17.-AD interesting case was begun in the Supreme Court this afternoon before Judge Mason. The plaintiff is John W. Corceran, receiver of the Lancaster National Bank, and the defendant is Wesley R. Batchelder, of Lowell, General P. A. Collius is counsel for Mr. Corcoran, and General B. F. Butler and Frank L. Washburn, of Boston, for the defendant. The Built is to recover on three promissory notes amonting to $6,000. The defendant claims that he owed the bank about $15,000 and that he paid $9,000 and then refused to pay the remaining $6,000 until the receiver returned 173 shares of Erie Telegraph and Telephone stock deposited with the bank as collateral. The receiver dentes that he ev or saw or knew of any collateral. Batchelder showed a receipt for the collateral signed by W. H. McNeil, the abscouding president of the bank. General Butler read the statute stating that a bank could loan to a single firm not over one-tenth of its capital stock. The Lancaster Bank, however, with $100, 000 capital. loaned $15,000 to Bachelder, who was a director 11 the bank.

7. November 24, 1887 New-York Tribune New York, NY
Article from New-York Tribune, November 24, 1887

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Article Text

RECEIVER CORCORAN GETS A VERDIOT. FITCHBURG, Mass., Nov. 23.-The jury in the case of Receiver Corcoran, of the wrecked Lancaster National Bank, against Wesley R. Bateholder, a directorin that institution.to-day returned a verdict of $6,682 for the plaintiff. The suit was to recover on three promissory notes amounting to $6,000. Batchelder claimed that he was owing the bank $15,000, and paid $9,000, but refused to pay the remainder until the receiver returned 173 shares of Erie Telegraph and Telephone stock deposited with the bank as collateral. The case will ROW go to the Supreme Court on exceptions. General P. A. Collins is counsel for the plaintiff, and General Butler for the defendant.

8. November 12, 1890 Pittsburg Dispatch Pittsburgh, PA
Article from Pittsburg Dispatch, November 12, 1890

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Article Text

# BANK AFFAIR WOUND UP. Interest Dividend Declared for the Lancaster National Bank. BOSTON, November 11.-Receiver John W. Corcoran, of the Lancaster National Bank, has declared an interest dividend of 6 per cent on all proved claims against the bank from the time he assumed the receivership, January 20, 1886, until November 20, 1890. This marks a practical wind up of matters resulting from the defalcation of President McNeill, who in 1885 absconded with most of the bank's funds.