Merchants National Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 506
Charter Number: 506
Start Date: October 19, 1901
Location: Lowell, Massachusetts (42.633, -71.316)

Metadata

Model: gpt-5-mini
Short Digest: 3fe105d3

Response Measures

None

Description

October 1901 articles describe disappearance of the teller and bookkeeper and an alleged embezzlement ($90k–$115k). Early reports (Oct 19–22, 1901) state the bank opened normally and there was no run. A Washington Times items list (Jan 1, 1902) states the Merchants' National Bank of Lowell 'suspends after disappearance of teller and cashier.' The sources do not report a run, nor do they describe a reopening or a receiver appointment; I classify this as a suspension that likely led to closure (no evidence of reopening).

Events (5)

1. August 30, 1864 Chartered

Source: historical_nic

2. October 19, 1901 Other

Newspaper Excerpt: The directors ... made a statement to the effect that the bank's interests are not affected. The bank is absolutely sound. Directors prepared for a brisk demand for money in the morning and the president ... said the bank will be able to pay out $500,000 or more if it becomes necessary.
Source: newspapers

3. October 20, 1901 Other

Newspaper Excerpt: The Merchants' National Bank opened and closed its doors at the usual hours today ... a slight depression in business was noticed, and inquiries respecting balances were more numerous, but the run for which the directors had prepared did not materialize.
Source: newspapers

4. January 1, 1902 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Disappearance of teller and bookkeeper and discovery of large shortage/embezzlement (reported $90,000–$115,000) led to suspension.
Newspaper Excerpt: The Merchants' National Bank, of Lowell, Mass., suspends after disappearance of teller and cashier.
Source: newspapers

5. January 4, 1902 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (6)

1. October 19, 1901 The Daily Morning Journal and Courier New Haven, CT

Article from The Daily Morning Journal and Courier, October 19, 1901

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HEAVY BANK DEFAICATION THE MERCHANTS' NATIONAL OF e S LOWELL, MASS., ROBBED. 3 Teller and Bookkeeper Both MissingEellef That $90,000 in Silver Certificates Has Been Taken-Bank Officials Issue a Statement-Institution Perfectly Sound-Prepared for a RunExperts at Work. Lowell, Mase., Oct. 19.-Albert G. Smith, teller, and Lewis K. Swift, bookkeeper of the Merchants' National bank, have been missing since Thursday night and their absence has led to an examination of their accounts. The story most credited is that $90,000 in silver certificates has been taken. The directors of the bank held a meeting that lasted till early this morning and as a result made a statement to the effect that the bank's interests are not affected. The statement is as follows: "The bank is absolutely sound. The first knowledge that we had of any trouble was the failure of the men to appear at the bank this morning at the usual time. That fact alone in a bank wolud call for an examination. We don't know what the examination has revealed. It has not been completed as yet and will not be until to-morrow. A final statement will be made at that time." The teller and bookkeeeper were in Lowell Thursday night. They left their respective homes early in the evening, and, so far as is known, said nothing to their wiyes as to their intentions of leaving the city. The missing men have held positions in the Merchants' National bank for a number of years. They are among the best known men here. Their disappearance was not known to the public until after the bank had closed. The directors are prepared for a brisk demand for money in the morning and the president, A. R. Pollard, is authority for the statement that the bank will be able to pay out $500,000 or more If it becomes necessary. The officers of the bank are: President, Arthur G. Pollard; vice president, Charles F. Ayers; cashier, Walter W. Johnson; directors, William H. Anderson, Amasa Pratt, William Shepard, Albert F. Nichols, Michael Colline, Joseph L. Chalfoux, Charles F. Ayer, Arthur G. Pollard, Henry Runels, Charles S. Lilley. t Experts have been working on the o books all day and night and will cont tinue to do so until the last account ( t has been examined. Private detectives o have been placed on the case.

2. October 20, 1901 The Montgomery Advertiser Montgomery, AL

Article from The Montgomery Advertiser, October 20, 1901

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Run Did Not Materialize Lowell, Mass., Oct. 19.-The Merchants' National Bank opened and closed its doors at the usual hours today and nothing out of the ordinary occurred to interfere with its business, despite the surprising absence of the teller, Albert G. Smith. and the bookkeeper. Louis K. Swift. A slight depression in business was noticed. and inquirits respecting balances were more numerous, but the "run" for which the directors had prepared did not materialize.

3. October 20, 1901 The Saint Paul Globe Saint Paul, MN

Article from The Saint Paul Globe, October 20, 1901

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MISSING BANK OFFICIALS Thought to Have Robbed Merchants' Bank of Lowell of a Large Sum. LOWELL, Mass., Oct. 19.-The Merchants' National bank opened and closed its doors at the usual hours today and nothing out of the ordinary occurred to interfere with its business, despite the surprising absence of the teller, Albert G. Smith, and the bookkeeper, Louis K. Swift. A slight depression in business was noticed, and inquiries respecting balances were more numerous, but the "run" for which the directors had prepared did not materialize. The bank had money enough to square accounts with all depositors. The most interesting development of the day was the engagement of counsel to represent the interests of the missing men. This information leads to the conclusion that terms in the direction of a settlement are soon to be submitted to the directors. The only information of the probable loss was given this morning by one of the dierctors, Charles J. Lilley, who, when asked as to whether or not the re_ port that the loss was $90,000 was likely to be an exaggeration, replied that he believed it would turn out to be an exaggeration. Tonight the loss is thought to be even greater than that amount. however, the continued silence of the directors being construed as an unfavorable indication. The whereabouts of Smith and Swift may be known to their wives, their lawyers and the directors of the bank, but all efforts upon the part of others to trace them have proved unavailing: The cities of Boston and Montreal are the places most mentioned in this connection, but nothing of a definite nature has been found. The houses of the two men in Lowell are under constant surveillance by the police. At a meeting of the bank directors tonight the affair was fully discussed, but at the close of the meeting the directors were unwilling to make any statement.

4. October 20, 1901 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, October 20, 1901

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HOLDING UPA BANK . DISHONEST EMPLOYES TRYING TO ESCAPE PUNISHMENT. . Embezzled, Speculated and Lost, Then Deliberately Stole All the Money in the Institution. TAKEN POSSIBLY $100,000 . BY TELLER SMITH AND BOOKKEEPER SWIFT, OF LOWELL, Who Are Said to Have Committed the Theft for the Purpose of Forcing the Bank to Make Terms. OF ARMITAGE CONFESSION MESSENGER WHO ROBBED THE BANK OF NEW AMSTERDAM. Woman Named Marie, a Roadhouse Frequenter, Alleged to Have Stolen His Stealings. . LOWELL, Mass., Oct. 19.--Business at the Merchants' National Bank, from which Teller Alfred G. Smith and Bookkeeper Lewis K. Swift are missing, opened briskly a to-day, but there was no indication of run. President A. J. Pollard said this morning that there was no change in the situation and experts are still working on the books, but the officials decline to state the amount missing from the funds. President Pollard, when asked about the missing men, would only say that they were still absent. Mrs. Smith, wife of the teller, admitted to-day that she had recelved a message stating that her husband would not return home. She refused to tell where the message came from. It was stated during the day that lawyers have been retained as counsel for the missing men, with power to negotiate a settlement, provided there shall be no prosecution for any deficiency in the funds of the bank. As to this matter the bank officials refused to make any statement. The information leaked out later in the day that the young men had been speculating and had lost heavily. Realizing that detection must come, and in order possibly to secure immunity from punishment, it is claimed that on Thursday night the men went to the bank vault and took all the money there deposited. This, it is said, placed them in a position to compel the bank to make terms. This seems to resemble a former bank defalcation here in which the deliquent took all the money he could find in the bank, and, with the late B. F. Butler as counsel, made a settlement and escaped punishment. The bank officials would not express themselves when told the shortage was reported to be between $90,000 and bank $100,000. opened and closed its doors at the The usual hours to-day and nothing out of occurred to interfere with A slight depression its the business. ordinary and inquiries in business was noticed, however, numerous, respecting balance were more had but the "run' for which the directors prepared did not materialize. The bank with enough to square accounts The only had all depositors. money information this morning of the probable loss was given by one of the directors, Charles J. Lilley, the who, when asked as to whether or not that the loss was $90,000 was likely report to be an exaggeration, replied that he belleved it would turn out to be so. To-night the loss is thought to be even greater than that amount, however, the continued silence of the directors being construed as an unfavorable indication. The whereabouts of Smith and Swift may be known to their wives, their lawyers and the directors of the bank, but all efforts upon the part of others to trace them have proved unavailing. The' cities of Boston and Montreal are the places most mentioned in this connection, but nothing of The a definite character has been found. under houses of the two men in Lowell are constant surveillance by the police. At a meeting of the banks directors tonight the affair was fully discussed, but at the close of the meeting the directors were unwilling to make any statement.

5. October 23, 1901 Wheeling Register Wheeling, WV

Article from Wheeling Register, October 23, 1901

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for divorce which he brought against the countess in February last. NEW YORK, October 22.-Sir Thomas Lipton sailed for home to-day on the steamer Celtic. His steam yacht, the Erin, will sail at noon to-morrow. NEWARK. O,, October 22.-Wm. Moore to-day shot and killed his wife and then committed suicide. Domestic difficulties are supposed to have been the cause. BUFFALO. October 22.-The praise meeting of the Universalist general convention was led by Rev. L. Ward Brigham, of Rochester, Minn. A business session followed. LONDON, October 22.-Bord Cromer, the British diplomatic agent and consul general in Egypt, was married to-day to Lady Katherine Thynne, sister of the Marquis of Bath. DOVER. Del., October 22.-A certificate of incorporation was filed here by the St. Croix Copper Mining & Milling Company, of Titusville. Pa to mine for ores of all kinds. Capital $1,000,000. BOONEVILLE Ind., October 22.-W. B. Wheeler, who murdered Elias Burns, his son-in-law. was to-day sentenced to be hanged February 8. He is the first prisoner to get the death penalty in Warrick county. BERLIN, October 22.-It is announced in a dispatch received here from Swatow that one hundred and forty rebels have been executed and that order has been restored in the Hsing-Ning district, where several missions were recently destroyed. PUEBLO, Col., October 22-A courier to the Star-Journal brings news of excitement over a gold discovery at Beulah, 38 miles west of this city. Five hundred claims have been located in the past 24 hours. A ledge of free gold returns nearly $2,000 a ton. TOLEDO. O., October 22.-The executive board of the American League of Civic Improvement was held here to-day. and It was decided to hold the next annual convention at St. Paul. Minn. in September, 1902. It was also decided to establish the national headquarters in Springfield, Ohio. WASHINGTON, October 22.-The comptroller of the currency to-day received a telegram from Alfred Ewer. bank examiner. regarding the Merchants' National Bank of Lowell. He reports that the bank's loss is about $115,000. that the bank is fully solvent and that there was no run upon it. NEW YORK, October 22. Vice Chancellor Stevens, of Newark. N. J., to-day appointed Samuel F. Leever receiver for the New Jersey Automobile Company. The receiver was appointed on the application of Frederic C. Hedge, president of the company. on the ground that the company is insolvent. DALLAS. Texas, October 22.-Private telegrams received here from Palestine, Texas, state that Judge J. B. Reagan, chairman of the Texas State Railway Commission and the only survivor of the Confederate cabinet of Jefferson Davis, is dangerously 111 at his home in Palestine. Judge Reagan is 85 years of age. BERLIN, October 22.-To-day is the birthday of Empress Augusta Victoria and flags were displayed on all public buildings and many private buildings. There were no court festivities owing to her majesty's indisposition and to the fact that the imperial family is in mourning for the late Queen Victoria. BERLIN, October 22.-A semi-official statement published by the North German Gazette to-day, concerning the existing commercial treatles and the proposed tariff, says notice of the former's termination depends on the passage of the new tariff bill. The paper believes the treaties will not be denounced beforehand. NEW YORK, October 22.-Jewelry valued at $10,000. as well as $300 in gold, has disappeared from the residence of Harris Mandelbaum. a real estate dealer of this city. The money and valuables were stored in a safe in the house. One of the servants who slept in a room adjoining the one in which the safe was kept, is also missing. MONTCEAU LES MINES France. October 22 -The prefect has issued a proclamation prohibiting the sale or transportation of arms or ammunition, and ordering all persons possessed of arms or ammunition to deposit them in the town hall, or at police headquarters, within three days. Otherwise they will be seized and confiscated. READING, Pa., October 22.-The officials of the Boyertown National Bank now admit that there is a shortage of $30,000 in the funds of the institution. Bank Examiner McDougall is investigating the affairs of the bank. The bank officials say the depositors of the bank will not lose a dollar. Nothing has been heard from former Cashier Mory. MINNEAPOLIS. Minn., October 22 -No will was left by the late John S. Pillsbury, former governor of Minnesota. He was content to give to any institution or movement which he deemed worthy of aid. and was also content to let the laws of Minnesota determine the final disposition of his estate. He said so in as many words. His estate is estimated to be worth $5,000,000. LANCASTER, Pa. October 22.-Mrs. Harriet Conter, of this city, was using benzine to clean out a eloset in her home to-day when it was ignited by a lamp. The explosion that followed blew out all the windows in the front of the house. Mrs. Conter was horribly burned. She was removed to a hospital where she died a few hours later. She was 38 years of age and is the mother of six children. LONDON. October 22.-Marie Josephine Eastwick the young Philadelphia woman who was committed October 1st in the Guild Hall police court for trial at the Old Bailey on charge of having forged a railroad certificate to the value of $100.000. was arraigned to-day and pleaded guilty. Sentence was postponed to the next session of the court in order to atlow an examination to be made as to the prisoner's sanity. PHILADELPHIA, October 22.-The superior court to-day admitted to bail H. F. Hasse. C. J. Schramm and Nelson H. Lund. of Elk county, who were convicted in the criminal court of that county of conspiracy and sentenced to an imprisonment in the western penitentiary at Pittsburg. The ball in each case was placed at $1,500 and the order of the court was made a supersedeas returnable for argument in this city on December 9.

6. January 1, 1902 The Washington Times Washington, DC

Article from The Washington Times, January 1, 1902

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9. The Pittsburg and Western Railroad bought by the Baltimore and Ohio Company. 11. The Pocahontas Coal and Coke Company chartered. 18. The Merchants' National Bank, of Lowell, Mass., suspends after disappearance of teller and cashier.-The Industrial Commission issues a report on labor arbitration.