Article Text
Peabody Bank Suspends. Peabody. Mass., Sept 19. - -By order of the board of directors the South Daners National bank closed its doors today. A receiver was appointed.
8197. South Danvers National Bank (Peabody, MA)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 958
- Charter Number
- 958
- Start Date
- September 19, 1900
- Location
- Peabody, Massachusetts (42.528, -70.929)
Metadata
- Model
- gpt-5-mini
- Short Digest
43fe1140
Response Measures
None
Receivership Details
- Depositor recovery rate
- 81.0%
- Date receivership started
- 1900-09-19
- Date receivership terminated
- 1910-06-30
- OCC cause of failure
- Excessive lending
- Share of assets assessed as good
- 18.0%
- Share of assets assessed as doubtful
- 74.6%
- Share of assets assessed as worthless
- 7.4%
Description
Bank was closed by order of its board of directors on Sept 19, 1900 and a receiver (bank examiner Irwin/Irvin B. Sayles) appointed. Coverage describes heavy loan losses and later arrests/charges of embezzlement and large debtor exposures; receivership proceeded and dividends were paid to creditors in 1901. No article describes a depositor run or reopening of the bank.
Events (8)
1.
March 31, 1865
Chartered
- Source
- historical_nic
2.
September 19, 1900
Receivership
- Source
- historical_nic
3.
September 19, 1900
Receivership
- Newspaper Excerpt
- Bank Examiner Irwin B. Sayles has been appointed receiver for the bank. No reason is given for the failure.
- Source
- newspapers
4.
September 19, 1900
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank closed by directors and placed in receivership after heavy loan losses and alleged unsound loans; subsequent reporting cites embezzlement and large loans to insiders and promoter debtors.
- Newspaper Excerpt
- by order of the board of directors the South Danvers National bank closed its doors today. A receiver was appointed.
- Source
- newspapers
5.
January 25, 1901
Other
- Newspaper Excerpt
- The assessment of $100 a share, which the new receiver of the South Danvers National bank is levying upon stockholders has caused something like consternation among them.
- Source
- newspapers
6.
February 9, 1901
Other
- Newspaper Excerpt
- Former Cashier George M. Foster was arrested ... charged with embezzlement ... called upon for an assessment of 100 per cent. ... the deeper the receivers probe into the affairs of the bank the worse they seem.
- Source
- newspapers
7.
February 13, 1901
Other
- Newspaper Excerpt
- Within thirty days ... I hope and expect to pay a dividend of 20 per cent. to depositors ... the stockholders, who have been assessed 100 per cent., are paying the assessments as well as expected.
- Source
- newspapers
8.
April 8, 1901
Other
- Newspaper Excerpt
- Major George F. Hampton, receiver of the South Danvers National bank ... has been instructed by the comptroller of the currency to pay a dividend of 30 per cent on all approved claims.
- Source
- newspapers
Newspaper Articles (13)
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Article Text
Bank at Penbody, Mass., Closex. The controller of the currency this morning received a telegram stating that, by order of its board of directors, the South Danvers National Bank of Peabody, Mass., had closed its doors. The capital of the bank is $150,000; surplus and undivided profits, $70,463; individual deposits, $233,529; due to other national banks, $15,449; borrowed money, $106,276. Bank Examiner Irwin B. Sayles has been appointed receiver for the bank. No reason is given for the failure.
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Bank Closes Its Doors. WASHINGTON, D. C., Sept. 19.-The comptroller of the currency this morning received a telegram stating that, by order of its board of directors, the South Danvers National Bank, of Peabody, Mass., had closed its doors. The capital of the bank is $150,000; surplus and undivided profits, $70,463; Individual deposits, $233,529; due to other national banks, $15,449; borrowed money, $106,276. Bank Examiner Irvin B. Sayles has been appointed receiver for the bank.
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New England Bank Fails. Washington, Sept. 10.-The comptroller of the currency has received a telegram stating that. by order of its board of directors, the South Danvers National bank of Peabody, Mass.. has closed its doors. The capital of the bank is $150,000; surplus and undivided profits, $70,463; individual deposits. $233,529; due to other national banks, $15,449; borrowed money, 8106276. Bank Examiner Irvin B. Sayles has been appointed receiver for the bank. No reason is given for the failure.
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A PEABODY BANK CLOSED. SOUTH DANVERS NATIONAL CLOSES ITS DOORS. Washington, Sept. 19.-The Controller of the Currency this morning received a telegram stating that, by order of its Board of Directors, the South Danvers National Bank, of Peabody, Mass., had closed its doors. The capital of the bank is $150,000; surplus and undivided profits, $70,463: individual deposits. $233,529; due to other National banks, $15,449; borrowed money. $106,276. Irvin B. Sayles, Bank Examiner. has been appointed receiver. Peabody, Mass., Sept. 19.-Mr. Sayles, assisted by the bank officials. began an examination of the books of the bank to-day, and until the task is completed no official statement by the officers of the concern is expected. It is understood that the institution has been a heavy loser on loans made to various persons and companies in this section. The officials worked hard, but vainly, to prevent the collapse. The South Danvers Bank was incorporated as a State bank in 1825. For years it did a flourishing business, and after it became a National bank it handled a large part of the funds of local tradesmen and manufacturers. Of late, however, the business became more limited. William P. Clark is the bank's president.
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LATEST NEWS NOTES, Stokes' planing mill at Altoona, Pa., Loss, $5,000. Titusville, Pa., will have free rural delivery October I. Washington county (Pa.) farmers are iffering from a water famine. The war department reports health onditions at Cape Nome much improvPittsburg, Pa., contributions for the alveston relief fund have reached $49,35.67. Short water supply forced the closing of several Cambria mills at JohnsPa. Owing to a water famine at LonaconMd., trains are hauling water into town. Colored Baptists of Butler, Pa., laid cornerstone for their new church Sunday. Butler county, Pa., is stirred up by onflicting claims of auditors and overof the poor. Grasshoppers are destroying the over the Captain Generalcy of Esemadura, Spain. A fire in the Hass Keui district, Turhas destroyed 150 houses, 40 shops a synagogue. The grand jury at Steubenville, O., nearly 70 indictments for alleged liquor selling. It is acknowledged in England that Conservatives will be victorious in coming election. Connellsville (Pa.) region operators nticipate a coke boom in consequence the anthracite strike. James Radeliffe. fire boss at the Braz(Pa.) mine when the explosion ochas been arrested. Two steamers and six lives were lost a collision at entrance to Lake St. lair. Michigan, Friday. An effort to smuggle 1,400 kilos of pium into Havana was frustrated by authorities Saturday. Mrs. George Smith was burned to eath at Huntingdon, Pa., Saturday, making grape butter. Efforts of the Portuguese to disarm entering Portuguese territory has esulted in several clashes. Lord Methuen routed a Boer convoy captured a gun lost at Colenso, cattle and much ammunition. Belle Archer, the actress, who died Warren. Pa., left a fortune of about 10,000, which will go to her parents. The Argentine Republic has appro$30,000 for a building and exibit at the Pan-American exposition. Anthracite operators are raising and taking other means to disourage the panicky demand for coal. Fire Saturday destroyed the grain varehouses and elevators on the Atlandock, Brooklyn. Loss, $100,000. The Presbytery of Buffalo, N. Y., voted 32 to 19 in favor of a change the Westminster confession of faith. Mrs. Almira Bruden, of Ashtabula, from hydrophobia caused by the of a dog received two weeks ago. At Texarkana, Ark., the plant of the Inion Compress Company burned, 2,000 bales of cotton. Loss, $150,The South Danvers bank, of Peabody, has closed its doors, being unto meet its outstanding obligaThe presidents of two great anthracompanies have agreed to confer Archbishop Ryan on the strike sitFather Ducey, of New York, who inestigated the strike on the spot, dethe miners and declares their quarjust. Two burglars at Punxsutawney, Pa., up Father Weinker, Catholic in his bed, securing a gold watch $30 cash. President Mitchell proposes the biuminous method of settling labor trouand does not insist upon recogniof union. Fire destroyed the main plant of the independent Lakeside oatmeal mills at oliet, III. Estimated loss, $50,000; in$41,000. The story of the massacre by Rusof the entire Chinese population Blagovestchensk, 5,000 in all, seems be confirmed. Two more regiments of the national are on waiting orders. Troops atrolled thoroughfares in and around Shenandoah, Pa. At Canal Dover, O., Laura Baxter, heiress about to obtain her majority, been abducted from the home of foster parents. An edict issued by the Chinese imgovernment shows that Prince Tuan, the anti-foreign leader, is again the ascendant. The St. Louis presbytery, composed the churches of Fastern
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BUSINESS FAILURES. Jan. 3-Wabasha, Minn., People's bank. 6-Rahway, N. J., Union county bank New York, Hulbert H. Warner, patent medicine manf.; $2,319,027. 9-Plankinton, S. D., State bank. 17-Chicago, Francis P. Owings, real estate: $5,364,977. Feb. 7-New Bedford, Mass., Henry E. Holcomb, manf.; $1,351,438 Boston, Miner, Beal & Co., clothing firm, $450,000. 26-United States milling combine (flour trust); $15,000,000. Mar. 3-Port Jervis (N. Y.) Nat. bank resumes; had suspended payment in December. 6-J. F. Seiberling, formerly manufacturer at Akron, O., files bankruptcy petition; $800,000, assets, $30. 19-John Kehoe, builder of New York, files bankruptcy petition; $1,520,085; no assets. 22-D. Appleton & Co., New York, publishers; $3,000,000. 26-Rutland, Vt., Merchants' Nat. bank Keene, N. H., Five Cent savings bank for $1,449,058; $718,873. and Guarantee savings bank for Apr. 000. 3-Cambridge (Neb.) State bank; $40,10-Columbus, $140,000. O., Reinhard & Co.'s bank; 12-Yates Center, Kan., Citizens' state bank. 27-Adolph Landauer, dry goods dealer of Milwaukee; $391,945.31. May 11-Frank L. Fuller's private banks at Rockford and Cedar Springs, Mich. 21-Pentwater, Mich., Neilson & Co.'s bank. 26-Price, McCormick & Co., of New York, cotton brokers and shippers; $13,000,000. 28-Seymour, Johnson & Co., stock and cotton brokers of New York; $500,000. Jun. 5-W. C. Shields' bank at Mulberry Grove, Ill. 15-McNair & Alexander, cattlemen at Ashland, Kan.; $542,000. ug. 13-Henry J. "Neill, the "barley king," files petition in bankruptcy; $500,000.... Kingfisher (Col.) bank: $61,000. 17-Somerset (Ky.) Nat. bank. Sep. 6-Lamont (III.) state bank; $12,000. 7-Fifth Avenue Savings & Loan Ass'n., of McKeesport, Pa.; $500,000. 18-Hatch 000,000. & Foote, New York brokers; $2,19-South Mass. Danvers Nat. bank, at Peabody, Nov. 17-German Nat. bank, at Newport, Ky. Dec. 12-Bank at Brillion, Wis. 13-Order of Chosen Friends, large fraternal insurance association. 21-American nat. bank of Baltimore, Md. 25-Isaac Robinson, at Baltimore, Md., manufacturer; $800,000.
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BUSINESS FAILURES. Jan. 3-Wabasha. Minn., People's bank. 6-Rahway. N. J., Union county bank.... New York, Hulbert H. Warner, patent medicine mant.: $2,319,027. Piankington. S. D., State bank. 17-Chiengo, Francis P. Owings, real estate: $5,364,977. Feb. 7-New Bedford, Mass., Henry E. Holcomb. mant: $1,361,438.... Boston, Miner, Beal & Co., clothing firm, $450,000. 26-United States milling combine (flour trust); $15,000,000. Mar. 3-Port Jarvis (N. Y.) Nat. bank resumes; had suspended payment in December. 6-J. F. Seiberling. formerly manufacturer at Akron, O., files bankruptcy petition; $800,000. assets, $30. 19-John Kehoe, builder of New York, files bankruptcy petition: $1,520,085; no assets. 22-D. Appleton & Co., New York, publishCTS: $3,000,000. 26-Rutland, Vt., Merchanis' Nat. bank.... Keene, N. H., Five Cent savings bank for $1.449,058; and Guarantee savings bank for $718,873. Apr. 3-Cambridge (Neb.) State bank; $40,000. 10-Columbus, O., Reinhard & Co.'s bank; $140,000. 12-Yates Center. Kan., Citizens' state bank. 27-Anolph Landauer, dry goods dealer of Milwaukee: $391,945.31. May 11-Frank L. Fuller's private banks at Rockford and Cedar Springs, Mich. 21-Pentwater, Mich., Neilson & Co.'s bank. 26-Price, McCormick & Co., of New York, cotton brokers and shippers; $13,000,000. 28-Seymour, Johnson & Co., stock and cotton brokers of New York; $500,000. Jun. 5-W. C. Shields' bank at Mulberry Grove, III. 15-McNair & Alexander, cattlemen at Ashland. Kan.; $542,000. Aug. 13-Henry J. Neill. the "barley king," files petition in bankruptcy; $500,000.... Kingfisher (Col.) bank: $61,000. 17-Somerset (Ky.) Nat. bank. Sep. 6-Lamont (III.) state bank; $12,000. 7-Fifth Avenue Savings & Loan Ass'n., of McKeesport, Pa.; $500,000. 18-Hatch & Foote, New York brokers: $2,000,000. 19-South Danvers Nat. bank, at Peabody, Mass. Nov. 17-German Nat. bank. at Newport, Ky. Dec. 12-Bank at Brillion, Wis. 13-Order of Chosen Friends, large fraternal insurance association.
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$100 A SHARE. Assessment Levied on Stockholders Causes Consternation Peabody, Mass., Jan. 25.-The assessment of $100 a share, which the new receiver of the South Danvers National bank is levying upon stockholders has caused something like consternation among them. Some of the stockholders are not very well situated financially, and may.lose their all. When the bank failed 2 months ago, some thought it could pay its debts in full eventually, and an assessment was not dreamed of. It is said that as a result of the developments, the Wallis school fund, which was invested in stock of the bank will be a total loss.
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A NATIONAL BANK WRECKED SOUTHDANVERS OF PEABODY, MASS., IN BAD SHAPE. Developments of a Day, Resulting from an Investigation, Astound Salem and Peabody-Former Cashier Arrested-Stockholders Called Upon for an Assessment of One Hundred Per Cent. Salem, Mass., Feb. 8.-This city, with its neighbor, Peabody, is thoroughly astounded at the developments of to-day, which have gone to show an almost complete wreck of the South Danvers National bank, of Peabody. Ex-Cashier George M. Foster was arrested in Boston to-day, charged with embezzlement of $3,690 of the funds of the bank. His friends do not wholly blame him and claim that the directors must have known, if they knew anything about the bank at all, that Foster was borrowing money from the bank and loading the institution up with paper of the United Tanners' Glue company, of Peabody. It is said that the directors were borrowers to a considerable extent from their own bank, and a Boston promoter of various enterprises also is said to be a debtor of the bank to the extent of $100,000. The stockholders, having been called upon for an assessment of 100 per cent., are wondering whether to pay or to organize and fight. The deeper the receivers probe into the affairs of the bank the worse they seem. Some bank men do not believe that over 50 per cent. can be cleaned up for the depositors out of the wreck. Second only in interest to the criminal proceedings against the ex-cashier is the civil action brought against George M. Foster and his surviving bondsman, Jacob Young, of Salem, to recover money alleged to have been wrongfully taken from the funds of the bank by Fostor for his own use. On December 15, 1900, an attachment in the sum of $20,000 was filed against Young in an action of contract brought by the bank. Five days later another attachment in the sum of $20,000 was filed against Young and Foster. Since then the declaration in the second of these suits has been filed and the first one has been abandoned. This declaration is made by Irving R. Sayles, bank commissioner. In the suit against George M. Foster alone for $20,000, in an action of contract, the declaration of Sayles, through his counsel, alleges that the defendant made a certain promissory note payable to himself on order and that the defendant endorsed the came to the plaintiff. This note is dated April 3, 1900, and is for the sum of $1,172.50. It is drawn to "myself on order," and signed George M. Foster. The bond upon which suit is thus brought to recover is signed by Foster himself, then by Young and Ira Foster, of Peabody, as bondsmen. Foster is dead and Young is dangerously ill. This ti bond is dated January 6, 1882, and is for $20,000. Young is Foster's father-inlaw, and was formerly a music dealer, now retired. to
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THE DANVERS BANK. People Indiguant Against Men Who Milked It. Peabody, Mass., February 9.-There is on lessening of the indignation at the manner in which the people believe the officers of the South Danvers National bank have milked that institution On the other hand as each new development appears there is an even tirmer determination on the part of the shareholders and depositors to see (omebody punished If possible. Ex-Cashier Foster comes in for a good share of the execration but he is not the only one who Is condemned. The directors and managers of the Institution are blamed almost equ ally, while the syst of examination is declared to have been faulty in that it permitted the affairs to reach the state they apparently did reach. The announcement that the bank ex aminer, Irving B. Sayles, had brought suit against John W. Dickinson t 0 recover $40,000 which It is claimed he secured from the bank on his personal notes, brings out a new storm of indignation The capital stock of the South Danvers bank was $150,000, and the bank examiner is suing Dickinson for almost three times the amount permitted by law for the bank to loan to any one person. There has been considerable talk today about the value of the bond which Foster furnished as treasurar of the bank. It was for $20,000 and was drawn in 1882. It was claimed by some who pretend to have inside information that this bond had never been renewed since it was first given almost twenty years ago, and on that account, it was worth no more than the paper on which It was written. Others are of the opinion that Foster's bond for $20,300. signed by himself, Ira Foster and Jacob Young,is perfectly good -If the men on it or any one of them was good for the amount involved. Arrests were being predicted tonight, but nobody seemed to know who It was that might be arrested. None of the several other institutions and enterprises with which Foster was identified are believed to have suffered. Charles H. F1field of Salem, a director of the Monson, Me., Slate company of which company Foster was treasurer, was seen this atternoon. He said that his company had suffered nothing at Foster's hands. The South Danvers Mutual Fire Insurance company, of which Foster was treasurer, has had its accounts examined and they are perfectly straight. The company, however, loses $32,000 through having 111 shares of the bank stock. The Sutton Home for Aged People also lost some money through holding several shares of the stock, but its finances, of which Foster was the custodian in the capacity of treasurer, are properly aocounted for. All the other many enterprises in which he had a part announce that they have not suffered any loss through Foster. Persons who have known Foster intimately for many years say that they do not believe he has taken a cent for his own use. His habits were not expensive, If he is an embezzier, it 18 believed that it was purely technical and done through his over-willingness to help out his friends and business acquaintsnces by permitting over-drafts and accepting notes of questionable value. FOSTER STILL IN JAIL. Boston, February 9,-George H. Foster, formerly cashier of the South Danvers National bank of Peabody, who was arrested yesterday on the charge of embezzling $3600 of the funds of the bank, was still at the Charles street jail today, as he had failed to secure ball. Interest in the case is still lively here, but developments today were meagre. Mr Foster still is hopeful of securing ball, and he stoutly denies that he is quilty of embezzlement He says If he had committed the crime he bad plen ty of chance to have gone away months ago. Among other things that have come to ight since Foster's arrest is the mention of the name of J. W. Dickinson of Boston, as a debtor of the South Danvers bank. Mr. Dickinson, when asked about the matter, said sharply: "Suppose I do owe the bank, what then? If I owe it, I in tend to pay." "Have you floated anything like $100,000 worth of paper through the bank" "I cannot say; I have nothing at all to say about my dealings with the bank. The directors or the receiver will tell you." It is believed by those interested that other arrests are to follow that of Mr. Foster. Who the persons are is not certain. A full report of the aff airs has been forwarded to the comptroller of the ourrenoy, and it is understood all action taken will be by his direction. Receiver Hampton says he cannot tell how much will be paid to the depositors. Former Cashier Foster was treasurer of the Monson State Company of Monson, Me., treasurer of the National Flax and Fibre Company of Boston, treasurer of the United Tanners Glue Company,secretary and acting treasurer of the South Danvers Fire Insurance Company of Peabody, and other concerns. He is also assignee of A. F. Walsh of Attleboro. The Wallis school fund, of which he invested in stock
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IN THIRTY DAYS. Depositors of Broken Danvers Bank to Receive Dividend Peabody, Mass., Feb. 13.-"Within thirty days," said Receiver Hampton of the South Danvers National Bank today, "I hope and expect to pay a dividend of 20 per cent. to depositors, and I have no doubt that the excitement which now seems to prevail over the failure of the bank will subside and that a better feeling will exist. The stockholders, who have been assessed 100 per cent., are paying the assessments as well as expected." Receiver Hampton also stated that although the first payment of the assessment will not be due until Feb. 21, the money was coming in rapidly. Only a few shareholders had notified him that they would be unable to pay and these were small holders. The receiver is not disposed to be hard upon those who cannot meet the call. He will make an investigation in each case and if he finds that hardship and destitution will follow, the assessment will not be enforced. The terms for the payments by all stockholders have been made reasonable. The money is payable in four installments, the last of which will not be due until May 21. Mr. Hampton desires to settle up the affairs of the defunct institution as rapidly as possible, and while he makes no definite estimate of the time it will take, he is quite sure that the bank's affairs will be fully settled at the end of two years. The receiver has the bank building on his hands, and this will be sold. It is thought that a new trust company may be organized to take the place of the bank. although some of the business men do not think this step advisable. It has been intimated that should Geo. H. Foster, the ex-cashier of the bank be released on ball. he would be rearrested on further charges of the embezzleemnt. This morning John H. Casey, assistant United States district attorney. who is handling the case, said that such would not be a fact, as far as he was concerned. 'We intend to protect the public In all cases." said Mr. Casey, "but we do not intend to become prosecutors of Individuals." Mr. Casey thought the present amount of bail. $10,000. was sufficient to insure the presence of Mr. Foster in court should a a bond be furnished for his release.
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Money For a Bank's Creditors. Peabody, Mass., April 8. - Major George F. Hampton, receiver of the South Danvers National bank of this town, has been instructed by the comptroller of the currency to pay a dividend of 30 per cent on all approved claims. The payment will be the first to be made to depositors since the fail. ure of the bank last year.