8420. Park Bank (Baltimore, MD)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: August 11, 1932
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: 8340e70c

Response Measures

Capital injected, Full suspension, Books examined

Other: Depositors formed a protective association and sought to examine books; plans to reopen with pledged capital were discussed but bank remained in receivership and did not reopen as an operating bank.

Description

Park Bank (Baltimore) experienced a deposit withdrawal episode ('silent run') in early August 1932; the Clearing House stopped carrying its debits and the directors placed the bank in the hands of the State Bank Commissioner (receiver) about Aug. 11–12, 1932. Deposit committees attempted to raise capital and considered reopening, but the bank remained closed and in receivership; later limited distributions were made and suits/prosecutions followed.

Events (3)

1. August 11, 1932 Run

Cause: Correspondent
Cause Details: A silent run (heavy withdrawals) occurred and the Clearing House/ correspondent banks, which had been carrying the Park Bank's debits, notified the bank on Aug. 11 they could no longer do so, precipitating loss of liquidity.
Measures: Directors sought new capital (estimated ~$250,000) and the Clearing House temporarily carried debits earlier; depositors later organized protective association to attempt reopening.
Newspaper Excerpt: He revealed that there had been silent run on the bank shortly after the death of John P. Baer, director, few weeks before the institution closed. The Clearing House had been taking care of the Park Bank's debits for some time before its officials notified the bank's officers on the afternoon of August 11 that could not continue to do so
Source: newspapers

2. August 12, 1932 Receivership

Newspaper Excerpt: the Park Bank, in Baltimore, which, it stated, has been closed by the Maryland Banking Department. ... the Park Bank closed August 12, 1932. ... Judge Charles F. Stein appointed him receiver the Park Bank. (refers to appointment of State Bank Commissioner/receiver.)
Source: newspapers

3. August 12, 1932 Suspension

Cause: Correspondent
Cause Details: The bank suspended/closed after the Clearing House withdrew support and the directors placed the institution in the hands of the State Bank Commissioner (receiver).
Newspaper Excerpt: being unable to do so, the directors voted to place the institution in the hands of the bank commissioner. ... the Park Bank closed August 12, 1932.
Source: newspapers

Newspaper Articles (19)

1. August 25, 1932 The Evening Sun Baltimore, MD

Article from The Evening Sun, August 25, 1932

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BUSINESS GAINS THIN BUT SEEN WIDELY SPREAD Basic Industries Lagging As Others Indicate Better Trend CAR LOADINGS, POWER INCREASE FOR WEEK By Rodney Crowther With the securities markets already having discounted decisively an upturn in autumn business, the financial district these days spends considerable time scanning reports from industry and business to discover definite justification for their hopes. Thus far the improvements that have been shown over the summer low points have been very small, but they have been fairly well distributed, and in few cases of more than seasonal proportions. Some of the larger basic industries, such as steel and automobile manufacturing, have as yet manifested no inclination to turn upward. On the other hand, considerable encouragement was derived from the report made yesterday by the National Electric Light Association on electric power output which, while it did not by any means approach the level of year ago, was up almost 1.2 per cent. from the preceding week. Eastern Car Loadings Up Car loadings also were being diligently for signs of business improvement. Some f the country' larger systems are showing substantial gains, particularly in the East. The New York Central Railroad for the week ended August 20 reported that its loadings increased 1,434 cars over the preceding week, whereas the corresponding week year ago gained only 1,267 cars over the like week of Central's lines for the week amounted to 35,355 cars of revenue freight as compared with 52,697 cars in the like 1931 week, decrease of 32.9 per cent. Up For The Week, Down For Year The Pennsylvania Railroad for the same week reported that its loadings amounted to 75,187 cars, as compared with 74,768 loaded in the preceding week and 114,581 in the like week of last year. This was decrease of 34.4 per cent. from last year. The loadings of the preceding week were off 34.5 per cent from 1931. Arguments On Rescinding Park Bank Order Begin Judge CharlesF Stein today changed his former court order SQ that State Bank George W. Page, receiver of the Park Bank, is not required to answer the petition through which group of depositors are seeking to have the court rescind the appointment of John E. Semmes as attorney in the After partial hearing on the petition today the hearing was adjourned until 9 A. M. Monday. Counsel for group of depositors appeared before Judge Stein today, seeking to rescind a court order appointing John E. Semmes attorney for the receiver. They argued that the law requires State Bank Commissioner George W. Page to be represented by the Attorney General's office in his capacity as receiver and provides for the naming of special assistant Attorney-General in case the regular staff of the State office could not handle the additional work arising from the receivership. was suggested that saving to the depositors of the bank might amount to as high as $94,000 during the several years before final liquidation of the bank is anticipated. The estimate was made on the basis of past experience, attorneys stated to the court Judge Stein, however, commented that "there possibility of lawyer or receiver getting $94,000 as fee in this case. He added that it was "inconceivable that any judge" should allow such fees. Representing the depositors seeking to rescind the order appointing special counsel for Mr. Page were Louis M. Silberstein, James J. Lindsay. Eldridge Hood Young, L. Wethered Barroll, John Y. Offutt and Emanuel Gorfine. General W. Preston Lane, Jr., and Deputy Attorney -General Willis R. Jones represented Mr Page at the hearing A new petition in the bank receivership case was filed today by Edward L. Ward. attorney representing eightytwo depositors of the bank seeking to have the court appoint an additional attorney as cocounsel with Mr. Semmes on behalf of the bank receiver. The new petition stated the naming of cocounsel would not impose any additional burden on the assets of the bank, since the for the receivers' could be divided between them. Judge Stein signed an order giving the receiver ten days to answer and show cause why the petition should not be granted. $34,000,000 Expansion In Currency Noted Keen interest was displayed today by all circles in the Treasury Department's report that National Bank notes outstanding have increased by approximately $34,000,000 since the Glass- 85 Borah curren endment 15 to the Home Loan bill became effective. Under the law national banks are permitted to issue their currency based on Government bonds bearing up to and including 3% per cent. interest. That this currency privilege, together 3% with the expansion in credit that has 13% been achieved by the Federal Reserve 31 System's open market operations. has played an important part in the sharp increases in security values was the belief of many today

2. August 29, 1932 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, August 29, 1932

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Park Bank Depositors Prepare To Organize Protective Association Will Be Formed By Committee-Attorneys Explain Efforts Seven hundred Park Bank depositors, meeting at the Polytechnic Institute last night, delegated to permanent committee of nine the task organizing depositors' protective sociation. Named to the committee were the three arranged for the meeting, William Bauer, Hartnett and Gibbs LaMotte and the following six: Eugene Blair, Howard S. Robertson, Frank Potthast, Thomas Sprague and Harry Ebitt. The meeting also heard an explanation of the efforts of group of six attorneys, including James LindDemocratic floor leader in House Delegates, Emanuel Gorfine, Fourth district member of that body, to halt the practice of having special counsel appointed for the State Bank Commissioner in receivership cases. They advocated having the Atoffice called upon provide the service. hearing their petition vacate the appointment of John Semmes special counsel for the Park Bank receiver will held before Judge Charles Stein in the Circuit Court today.

3. September 8, 1932 Evening Star Washington, DC

Article from Evening Star, September 8, 1932

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RECEIVERSHIP ASKED Baltimore Mortgage Firm Is Held Insolvent in Suit. WILMINGTON, Del., September 8 (AP). -A suit asking appointment of receivers for the Park Mortgage & Ground Rent Co., of Baltimore, has been filed in Chancery Court by Eugene F. Rodgers. The bill of complaint alleged the company was insolvent and that it had failed to pay interest due last August 10 on its notes. The bill also alleged officers and directors of the company are identical with the officers and directors of the Park Bank, in Baltimore, which, it stated, has been closed by the Maryland Banking Department. The business of the company, the complaint charged, has been "operated unsafely and unwisely."

4. October 25, 1932 The Evening Sun Baltimore, MD

Article from The Evening Sun, October 25, 1932

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REOPENING OF PARK BANK IS CONSIDERED Depositors' Group Gets Court Permission To Study Institution's Books [Continued From Page 32] ferred with the cour: today indicated that about $1,000,000 of new capital has been promised in case the protective association is successful in carrying out the plan. Approximately $1,000,000 more would be needed, it was said. Thorough Examination The committee pointed out that thorough examination and investigation of the bank's situation, including an appraisal of its accounts. would be necessary before definite and final proposals could be made toward the suggested opening of the bank. The committee that conferred with Judge Stein consisted of John P. Alberts, chairman; Frank Potthast and Louis Donovan. Judge Stein ganted them the right to examine the bank situation. Trust Company's Offer A trust company here is said, have considered making an offer to liquidate the bank and under certain agreements to make portion of the depositors' funds available to them The plan has not yet been formally or officially proposed or submitted to the court. State Bank Commissioner George W. Page, bank receiver, said today the protective group committee had not yet conferred with him since obtaining court authority to examine bank accounts.

5. October 25, 1932 The Evening Sun Baltimore, MD

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REOPENING OF PARK BANK CONSIDERED Depositors' Group Gets Court Permission To Study Institution's Books Contemplated plans toward the high value: opening of the Park Bank Superior Lump institution today brought to the Efficiency Egg attention of the Circuit Court when Domestic Lump the Park New River and Pocahontas Bank Depositors' Protective AssociaEgg tion obtained authority from Judge prices quoted above are cash. Charles Stein to scrutinize and Bagging 50c per ton additional. amine the bank accounts and records. ASK ABOUT AMBRICOAL The protective association, in which WOLFE large number the bank depositors has proposed that about $2,000,000 raised to take & Ziegler, the bank under agreement by the deMonument Street, at Gay positors that the institution be opened new bank. with the depositors SUPERIOR FUEL OIL to their deposits remaining the bank with withdrawals to be permitted at subsequent intervals, Park Bank Members of the committee that On Page

6. October 26, 1932 The Washington Times Washington, DC

Article from The Washington Times, October 26, 1932

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$1,000,000 Pledged For Bank Reopening BALTIMORE, Oct. 26.-Plans to reopen the Park Bank, which went into receivership last August, have been revealed after a committee representing the depositors secured permission from Judge Charles F. Stein in Circuit Court to examine the bank records. The committee indicated that $1,000,000 in new capital had been pledged to reopen the bank, although twice that amount is considered necessary to make a success of the venture.

7. December 8, 1932 The Evening Sun Baltimore, MD

Article from The Evening Sun, December 8, 1932

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Depositors Prepare Depositors of the Park Bank, special meeting their protective held today the Park Bank building, papers of be filed with the State for known the Park Bank DepositProtective Association, Inc. This taken preliminary step the presentation meeting of depositors be held next Monday night the Polytechnic stitute plan for the formation national bank take over the assets of the defunct Park Bank. The incorporathe association John Albert. Gibbs LaMotte and Howard Hyde. four will also the tion together with LeRoy James and Frederick Ryan. depositors named Arthuc Eby, Baltimore attorney, as general counsel for the organization.

8. December 9, 1932 The Evening Sun Baltimore, MD

Article from The Evening Sun, December 9, 1932

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PARK BANK JURY CALLS 5 MORE FOR TESTIMONY Catonsville Depositor Heard As Inquest Resumes ASSISTANT CASHIERS, DIRECTOR SUMMONED Petitioner Seeking Return $2,500 Deposit Also To Appear Calling five witnesses to appear today in the investigation of the affairs of the Park Bank, the heard the testimony of Howard Hyle, of Catonsville, depositor, when resumed the probe after disposing of routine work. director of the bank, two of its sistant cashiers and another depositor who had testified earlier this week other witnesses called. Mr. has been active in the fairs of the Depositor's Protective Committee which has sought to open the bank. The other depositor among today's witnesses was John Heath, who, in petition filed in the bank case, has sought the return of $2,500 deposit claimed made by him after regular banking hours on August 11, the last day the bank open. Indebted To Bank Frank M. Schofield was the bank director called to appear today. He indebted the bank the time of its closing in the amount of proximately $47,000. The assistant cashiers summoned for today were Carroll Jenkins and Henry Bush. When the bank closed Mr. Jenkins owed approximately secured by assigned life insurance policies and 250 shares of the bank's stock. His bank balance was $3.76, according report submitted by the bank ceiver. The receiver's report shows that Mr. Bush owed the bank approximately $3,300, insured by 90 shares of the bank's stock and that his bank balance was 95 cents when the institution closed.

9. February 26, 1933 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, February 26, 1933

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DEPOSITORS INJURIES WORSE SHE THOUGHT Orders Distribution Of $400,000 From Chesapeake Assets The receiver of the Chesapeake Bank has verbally ten per cent. distribution depositors, the payment of of the funds collected under the receivership the institution, was announced terday. Formal orders authorizing the ond distribution are expected signed this week Judge Eugene Circuit Court No. after arrangements for audit by Julian Jones, court auditor, have been com- pleted. Awaits Report On Cost Judge wanted exactly what the audit cost before signing the and that he wanted the to be low Cost of the accounting has estimated $5,000. The to be made is not expected to final one, was receiver will have $100,000 remaining his hands. ultimate percentage be paid creditors has not been determined. Although slightly larger distribution would be possible at this time, explained that the ten per cent. payment would simplify and reduce the cost the distribution. Officials estimated that the preparation of checks for mailing would require sixty days. The will bring the total amount paid creditors the Chesapeake Bank, including depositto 32.5 per cent., payment 22.5 per cent. having been made December 1931. The bank closed cember Ghingher Named Receiver An Ghingher, newly appointed Bank Commissioner, receiver of Chesapeake Bank and the Title Trust place of Page, former resigned because signed yesterday by Judge naming Ghingher receiver of the Commercial Savings Bank was signed Judge Arthur Stump the Circuit Court, Judge Charles Stein appointed him ceiver the Park Bank. Gives Value Of Assets report filed last month by Herattorney for the receiver the Chesapeake Bank, was vealed still was the book value of $290,764.44. the majority of representing the $190.412.04 book value of the main building Paul street In addition, the report showed that the book value stocks and bonds held by the receiver while present market value $229,712. Elizabeth Wilson, 28, Hospital As Result Of Traffic Accident struck by taxicab and taken home apparently not badly injured, Mrs. Elizabeth Wilson, was found be in serious condition yesterday her room 3708 Chestnut avenue. She taken to the Union Memorial Hospital municipal fering from internal injuries. It was said the hospital that she probably would require blood transfusion fore the night was over. Struck On Park Avenue Mrs. the home of Mr. Cohen. about Mrs. Cohen found Mrs Wilson suffering intense pain. According to Capt. Frank Gatch, the Northern district he and the Cohens were told by Mrs. Wilson that the accident occurred Park on avenue Lexington street. Doesn't Know Driver's Name When she was knocked down, Gatch said told. the driver the taxicab immediately got asked Mrs. Wilson she badly injured. She told the driver and placed her in the took her home. Neighbors said they saw her arrive the taxicab, not badly jured. Mrs. Wilson had been about an hour, she said, gan suffer She pain. she did not know name of the driver of the car which struck her.

10. March 16, 1933 The Evening Sun Baltimore, MD

Article from The Evening Sun, March 16, 1933

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RECKORD SAYS CUT BANK RECEIVERS SEEK WON'T THIN RANKS TO KEEP PREFERENCE No Members Of State Guard Have Resigned And He Expects None Will [Continued From Page 30] and unquestionably suffered diseases from that source after the armistice. "I was commissioned a short time before the armistice and was kept in the service until June. 1919 couldn't get ou t.I was in my fortyninth year. And having been accustomed to quiet pursuit of real estate all my life I came away from Fort McHenry in a state of complete ex- "Disabled Since 1921" "I have been totally disabled ever since 1921. I hadn't been out of uniform but a little over three weeks when I suffered a nervous breakdown and I have been under doctor's care almost ever since. If my pensation and my insurance were cut off I'd be absolutely dependent on charity. "I volunteered, I had sold by business and worked for year in the quartermaster department as civilian employe before was commissioned. had three minor children. was told that was too old for actual service in the army. But I wanted to do something." Matter Of Choice Uncertain The question as to whether the emergency economy bill eliminated the alternative of any member of the Maryland National Guard in choosing between remaining in the guard and staying on the Veterans' Administration pay roll was one which General Reckord was unable to answer Readjustments of benefits received by the veterans now rests upon regulations which will be drawn up by President Roosevelt, under the terms of the economy bill. These regulations will have the force of law. Just what the regulations will be is not known yet. 1.100 Officers On Original List The law which provided the retirement of emergency officers with pay was originally designed to take care of 1,100 officers who had received injuries in battle But as the result of ruling by former Attorney-General William D. Mitchell while Solicitor-General about 8,000 officers were granted pay. General Reckord said today that while he was still of the opinion that the economy bill was entirely too drastic, he was in favor of cutting down this list to the original 1.100 battle casualties and would heartily support any regulations issued by the President to that end. Pleas Filed To Intervene Suits Attacking Provision Of Law Seeking to uphold the preferences granted deposits of the receivers of the four Baltimore banks which are in receivership by provisions in Section 71-G of the Emergency Banking Law passed by the Legislature on March 4. attorneys representing the four receiverships today applied for permission to intervene in the pending injunction and mandamus suits attacking the validity of the new law. The action was taken by counsel for the receiver of the Chesapeake Bank, the Park Bank and Title Guarantee and Trust Company and the Commercial Savings Bank. Distribution At Stake The additional ten per cent. distribution to depositors of the Chesapeake scheduled to be made within little more than month, will depend largely upon the priority being upheld the courts, it was stated. While no distribution to depositors of the Park Bank is impending. the validation of the priorities granted by the new law will be necessary, it was said, to enable the receivership to act under recent authorization to pay off the remaining indebtedness of the bank to the Reconstruction Finance Corporation. City Intervenes The first hearings on the validity of the new banking law is expected to take place Saturday before Judge Eugene O'Dunne in the Circuit Court, No. 2. in connection with the injunction suit pending in that court. The suit sought to hold the banking law invalid and to enjoin any preferential payments under the new law by the Baltimore Trust Company. The mandamus suit, which also seeks to have the banking law declared unconstitutional and to prevent preferential payments by any bank under the new law. is pending in the Baltimore City Court, where hearings will be held shortly before Chief Judge Samuel K Dennis. An answer to the mandamus is due to be filed this week by State Bank Commissioner John Ghingher. Prior to the action of Herbert Levy, John E. Semmes, William L. Marbury,

11. April 3, 1933 The Evening Sun Baltimore, MD

Article from The Evening Sun, April 3, 1933

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CHAVANNES SAYS HE KNEW TOTAL LOANS Former Director Is First Witness Called Bell, By Richardson Defense BROKER AND AUDITOR TESTIFY FOR STATE pegged price on this stock State's Attorney's office. ought to the yes? arranged Judge Dennis' Comment about your compensation? Judge Dennis suggested that the know that there going which Mr. seeking be any compensation; not beyond should be let subject official salary. future ruling merits. He said the was done by office? was known Liberty bonds were selling and While Mr. Stewart the stand knew that did not represent Judge Dennis asked: State's Atof the but resulted torney, the count the the fact that there no "ready charges conspiracy allow Mr. Bell purchasers. to borrow amount excess of the Judge Frank asked the lawyers amounts legally allowed could what the pegged borrow. Has the Park Bank stock regard Mr. that "Mr. Stewart not the figures Mr. that started believe," responded State's and that the last pegging O'Conor. Price Of Stock And its Made By Officers Are Brought Up [Continued From Couldn't Mr. resumed his questionfixing exact date which apply August 10. what price the stock offered offered to possible for you to and attorneys consent of the directors, was both agreed. the Park stock had been "pegged restricted knew Mr. Bell stock trading in Baltimore last taking certain securities the bank? were "listed" September. The each instance done Park Bank had gone into receivership instance the commissioner that Insurance taking those known consented by the directors? other directors take securities? the price of the securities equal the the market price the time considerably less than the face note. anything. do you about insurance taken out by the borrowers agreed that the heavy should supply the bank and Mr. supplied the bank Didn't Know Bell's The witness the Bell and far (the knew. Mr. Richardthere. you write policy Mr. The witness answered that he did started explain that for policy written by Mr. Bell interrupted and did not finish explanation. and you the of the bor. rowing by Mr. Bell? you know about Mr knew from time time that for discount know the extent the director's 19317 "Syndicate Operations" Up what he about the "syndicate operations and These been referred constantly throughout the trial describing the securities with the proceeds notes the bank. has when securities sold profit these profits divided Bell Richardson parts. First the Then Bell and these profits being applied the reduction other obligations the statement that Park Bank stock offered him August, 1932, share and that not able that price, made William Horan. stock broker. testified today before the State closed agreed by the State and by defense lawyers that stock had pegged the Stock and then share. There has siderable about the chase of Park Bank by former president of the bank, who obtained loans bank for the purpose and posted the bank stock collateral. Later. closing the evidence prosecution. State Auditor Edmund and George former the bank. recalled the witness stand. They were among the main heard last Mr. Horan's admitted after by Curran and between him State's argument torney the fairness admitting this testimony evidence the value the stock that time. Judges Robert Stanton Frank and Chief Judge Samuel are presiding the without asked number questions argument admissibility the evidence. They decided the later what value they would during the 1932 you made of Park said Mr. "Supforced sale? Suppose some in sustained. there attempted sale Park Bank stock made by your Mr. Curran called the fact that the been pegged time. He said understood this committee the Baltimore Stock Exchange and the Clearing House Association. There discussion the the judges price: from the pegged price. Mr Curran market time. He said. "the prices offered below stocks stocks were Judge Stanton commented that, Other Stock Mentioned During his Mr. Horan asked: that the dropped share day before the first run that bank that preceded the new After attorneys and the court agreed that the trust stock had dropped sharply day before the pubhad general of that caused the capital subscriptions. can't testify," Judge Dennis that before fateful Sunday you couldn't give the Prices "Confidential" "And that," interjected Mr. Curran before millions in new capital interposed Judge Stanton and half here seven million and half from Defense just before Mr Horan the witness tried him explain bank stock prices and offers are no longer published reports financial Mr. Horan said such prices kept "confidential" adopted the Stock officials. When said adopted by "governors' of the changes the declined to defense continue him about the reasons for regulations. Stewart Recalled Mr Stewart the State recalled the witness stand Assistant Attorney Charles Evans. auditor statistics volving the profits closed loan stock loans from October the the bank, which said Bell had The figures which had been given Mr. Stewart's testimony last week showed net profits have been credited Bell and division profits. The figures Mr. Stewart that the profits had credited other loans. Mr. Stewart then asked was interest uring in the $99,565.90 Bell's the close the which the defense claims represented loans securities behalf The which admitted subject to exception was that the portion Bell's total debtedness unpaid interest which had been the notes. As to another portion than of total Mr. Stewart represented the The total in indebtedness the The amount interest included the outstanding notes Richardson, Contention Richardson's Stewart of actually paid Richardson The auditor said had not been able identify having given specifically payment During portion of the testimony Mr. Gans, Richardson, clared figures showed Richardson actually paying siderable money by way of interesthad. and that they tived the State's theory that he getting all from the bank Keep Notes Down" During stated: "We intend to show time there division, apparent division, of profits, really keep those notes asked the witness whether the records would reveal whether amounts have been divided had the interest charges. The said the records not most done profits credited While Stewart being examined Curran investigations the Park fall. the you this hesitated for answering: by the grand but first spoke to Dennis then said that Judge the court "could figure Interest Up Again Just before the auditor left the Richardson's resumed interest ing payments. Judge Dennis the man entitled ticular credit" because he paid Mr. Gans responded the other hand would show paid made his best efforts to pay obligations. least, am prepared admit my mind that he paid all he should have cept the figure testified still his responded was the the Park Bank closed. was recalled Mr. Belt asked he had not brought court Park Bank. He said he had. Mr. Curthem. there account the Company in 1932? there any Beck account Mr. objected. The witness the question. He there was closed out "after the Asks About Collateral Mr. asked to the lateral two loans Richardson. and of of date these loans having pledged with Reconstruction Corporation. Mr. Curran asked what done loans. The answer halted while the argued the of the trial Mr. stated that the Finance had demanded the loan. State's Attorney State's Attorney asked respect both the Park back them? argument. Judge finally interrupted Mr. Richardson had paid off owed the bank "There would be the Mr. Loss, No Indictment" the end needle. Judge know that there been there have no indict- commented Mr. any all of that collateral Mr. asked. This was objected "How Judge Stanton hands of the Reconstruction Finance said Mr. party the Objection Sustained This objected and the objecsustaine. witness testified that there balance owing on the had been his examinathe He asked about policy the life Mr. Bell which by the Park Bank the closed. policy lapsed? Mr. objected and Curran that he objected testimony which happened after the closed. State's Attorney question new form. the condition of the the closed? was force $2,000 been made The policy Dates Asked For Mr asked the witness he tell when the originally opened. He said he could He asked the second opened and the witness July Moses Kahn was when the stand Thursday, he had the Beck concern account with bank after the surprised the directors telling them that the bank's directotaled $1,000,000. Kahn said that the only person whom the (By error Dr. Kahn reported The Evening second He married once.) Mrs. Kahn's account after Mr. Kahn's resignaMr. Curran. whether brought the bank? Thurston Called Again Belt left the stand and William the State Bank Comoffice. who has been Park Bank to stand for Mr. Curran handed the witness this complete statement and liabilities the bank? find in The and items which included Mr. Curran asked witness the reserve admitted that did Mr. evidence another which did include the reserve. Asked About Examination The witness asked about semiexamination of the bank made by the staff the State Bank Commissioner Mr. Curran asked practice to loans and collateral pledged against The attempt made "pool the entire collateral against the Mr. Curran asked the witness what the valuation collatby the followed. He that securities which had defaulted interest failed pay dividends required bank commissioner charged down their market value Those paying interest dividends valued value. The lawyer asked bank exammaking handled the note. the note the replied. asked the examination and handling lateral. These were the Says Practice Varied in detail banks in Baltimore. conducted examinations State banks in Baltimore. number in the practice of the banks whose collateral reduced. the banks they easy about selling objected. Mr. Curran that the had held his assets "and that they have eled. Judge Dennis agreed that in the the Chesapeake Bank. usually, when the securities held declined value. What Gans Would Show Mr. Gans asked the witness the reports who the Bank. He He asked he had the worksheet the did the work. that Judge asked. Mr. Gans, "that the Bank into matters of here and made charge the Bank Commissioner force banks call adopted that be obtained the reduced. O'Conor Again Objects subsequent examinations found had not would he do? he "involves reference the Park O'Conor's objection tained. the practice the Bank Commissioner in selling listed held by him asked Curran Judge Dennis that free of any responsiafter closing the bank. The judge objections which had been previously the the of the Park Bank the theory the the conspiracy which and all. that date Judge Dennis you get hard Curran's Contention Mr Curran maintained that he could had not been the practice the Bank sell held by him He said that curities with Chesapeake had been depositors have about fifty per cent.

12. April 28, 1933 The Evening Sun Baltimore, MD

Article from The Evening Sun, April 28, 1933

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DEFENSE !S STARTED IN HARTMAN'S TRIAL Park Bank Officer And Director Among Witnesses Called [Continued From Page 46] the city pay some very high prices for property. The prosecution after the close of Mr. Ferguson's testimony introduced minutes of meetings of the bank's directors and executive committee, containing references to borrowers being required to maintain bank balances in proportion to the amount of their loans, requirement which the State contended was not enforced as to Hartman and certain other bank officials. George M. Belt, former vice-president of the Park Bank, resumed the witness stand today. Mr. Belt testified about details of involving stock purchases by the two men in which he had handled parts of the transactions. During his testimony Mr. Belt also referred to insurance policies on the lives of Hartman and two other men, connected with the Fidelity Motors Company, of which Hartman was an official. The policies had been among the collateral for Hartman's outstanding loans of $171.911 when the Park Bank closed last August 12. While the policies had a total face value of $125,000, the actual net cash surrender value at the close of the bank was only $1,899, the witness declared. Questioned by State's Attorney Herbert R. O'Conor, Mr. Belt said the amount represented the surplus cash surrender value over and above the amounts that had been borrowed on the policies from the insurance company, and thereby represented the unencumbered portion of larger cash surrender value. Prosecution Nears Finish Mr. Belt's testimony dealt with details which were not entirely cleared up during his testimony at earlier sessions of the trial. which began Tuesday under Judge Robert F. Stanton. Cross-questioned by Hartman's attorney today missing records as to Hartman's collateral on paid notes, Mr. Belt said that he knew some of the such records had been destroyed after being damaged during alterations to the bank building. The defense lawyer said there was claim that such records had been secreted or spirited away. After Mr. Belt spoke of destroying some of them himself Mr. Levin interjected: "Oh, yes. All of the records showing what Mr. Hartman owed are right here, but records showing what collateral he had up and which would help him missing. The defense lawyer asked Mr. Belt about the accuracy of estimates he gave earlier in the trial as to Hartman's average bank balances. He showed that the frequently were the actual average balance in one instance being twice the amount estimated by Mr. Belt: in another case less than the estimate. Mr. Belt kept insisting that he "tried to be fair,' and explained that he had given the estimates from quick glance at the liability ledgers showing daily balances. State's Attorney O'Conor then declared that, however, the actual average balance had been less than ten per cent. of Hartman's loan totals; proportion which rules of the bank were said to require. Letters Identified Miss Gracie A. Ortman, 3225 Abell former at the bank and now in the employ of the bank's was the second witness called today. She identified letters offered in evidence as written by her at Bell's dictation and also told how such letters were written and sent out from the bank. The State's Attorney, through Miss Ortman, attempted to introduce in evidence letter written by Bell to Pittsburgh man. He admitted that he did not contend that Hartman knew of the letter. Mr. Levin's objection to the letter was sustained in spite of Mr. O'Conor's contention that should be admitted to show that Bell, the alleged coconspirator, regarded of the stocks he and Hartman dealt in as speculative.

13. June 30, 1933 The Evening Sun Hanover, PA

Article from The Evening Sun, June 30, 1933

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SUITS FILED AGAINST BANK'S STOCKHOLDERS BALTIMORE JUNE 30. suits against stockholders of the closed Park Bank filed today the by bank's receiver to colthe liability of the stockholders. Of the $700,000 stockholders' rability, only about $63,000 has been paid attorneys said.

14. December 2, 1933 The Evening Sun Baltimore, MD

Article from The Evening Sun, December 2, 1933

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Public May See Jail Show By Arrest Only City Prisoners Object To Crowd. ing At Sign Out Last Year Inmates of the Baltimore City Jail will vote tonight whether their Christmas show this year will be by arrest only whether they will admit every Tom. Dick Harry. past years the was mitted. Last outsiders year tended and the entertainhall that many of the prisoners could not find even room had to go back their cells and having organized damned certain. jail that, for spacethis year will see their The will be held in chapel after the showing picture. The Christmas show consists moving pictures and vaudeville recruited from local talent and the professionals happen be playing at the theaters. Write And Call In Identification tim, Improving, Maintains Her Silence Although she able to converse the attendants and cheershe closes up like clam when fully, reference made to her identity any the circumstances which led to her attempt to her obviously under of age. Letters from worried parents Her nails carefully manicured and of their daughters' whereabouts, are ware her manner refined. messages from anxious grandmothers and from aunts even concerned about the fate of missing nieces have been pouring in Lomas, superintendent the University Hospital, since the arrival of poison patient. One letter from an elderly Clergymen Visit Her of the City inquiring grandchild had "married called her. She has listened unfortunate," begging for information courteously, but has given them "relieve grandma.' little satisfaction. The letter contained minute descrip- Women searching for missing of the relative. have dropped in to look her. Maintains Silence but none been able identify her. Another missive from the Meanwhile, doctors and nurses came forced admire the self-control South. from aunt who read of the who refused admit her identity has enabled her to keep up her it be her determined stand. thought might missing niece. Story May Stay Secret there many others. All that have been able Meanwhile, the of all the gather that her mother dead and her silence. Al- her father has shown any great though her condition had greatly her. her the Inasmuch expected that her pital after she will improve several tablets she to leave the drug store, refused pital in few days, her story will fastly give any information about probably never become known and herself. those really know her may never medium height and weight, learn of the effort she made with rather long, straight blond hair, herself. Receiver Proposes To Make Disbursement By Christmas COUNSEL SEES JUDGE ABOUT POSSIBILITY Arrangement With MortOf Building gagee ported Necessary Depositors of the Park Bank. if plans worked out by the receiver and Judge Charles Stein are carried through. may receive five per their claims by Christmas. William D. Macmillan. attorney acting for John Semmes, counsel the conferred with Judge Stein today concerning the possibility of the Circuit Court. in which the ceivership pending. ordering five per cent. payment first disbursement depositors and creditors of the bank. The it was said, has more than enough cash to make the disbursement. Whether the will be RITCHIE BILL dered in for distribution for being made the holders of the OKAY the Park Bank building. was indicated. During the the mortgage became due default payment, and Directors Oppose Any Change whereby the mortgagee would receive three In Excise months' notice before disburseUrge Bay Bridge ment depositors and creditors, said. hoped arrange the payment depositors by withholding funds cover any Members of the board of directors deficiency in case of foreclosure the Association of Commerce have unanimously indorsed the liquor bill Since the maximum deposits in the sponsored by Gov. Albert Ritchie the amount the special session of the needed for five per cent. disburseLegislature. Telegrams The receiver has indorsement have been was The Park Bank closed August Walter 1932. PresiSo far depositors dent of the and to Barton and creditors has been made. Harrington, Speaker the The members of the board also Walters Executor pressly oppose any change the cise feature the bill "which would Puts $500 Value On substitute manufacturers' tax tending discriminate against Anthem Manuscript liquor sold outside the State." Such tax. the board asserted, would prevent With third to beneunder the will the late the influx of capital investment Henry Walters today the and endanger investments Orphans' Court. the of already made. estate Again Urge Bay Bridge The board also manufacturers' tax and grain movements in the State seriously interfere the anticipated development of the new industry At the meeting at which the members the board adopted they also reaffirmed their stand in favor the the proposed Chesapeake bay bridge.

15. December 21, 1933 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, December 21, 1933

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PARK BANK PAYS 5% TO DEPOSITORS Checks Mailed Out In Time For Christmas By State Bank Commissioner 2,986 TRIALS THIS YEAR EXTRA HELP NECESSARY 1,189 Convictions Obtained And 544 Acquittals Returned, Dockets Disclose Of 3,986 cases assigned for trial in the criminal courts to date this year pleas of guilty have been entered in more than half, an investigation of the court dockets revealed yesterday. Furthermore, the records showed that more than sixty per cent. of the remaining cases resulted in convictions. 1,189 Convictions Obtained Docket entries show that pleas of guilty were entered in 2,104 cases; that convictions were obtained in 1,189; that verdicts of not guilty were returned in 544 cases, and that the State stetted 149. In the same period of 1932 219 more cases were disposed of than to date this year, it was disclosed. Wickersham Report Cited The average time between indictment and trial of criminal cases in Baltimore is seven days, according to a study of the records made some time ago by the Wickersham Commission on Law Observation. In addition, records show that most of the persons accused of crime here elect to have their cases tried before a judge without jury. Total Of $168,614 Distributed To 33,554 Persons Having Claims Against Institution Depositors of the defunct Park Bank yesterday were paid five per cent. of their claims against the institution by John J. Ghingher, Bank Commissioner, receiver, under an order signed early this month by Judge Charles F. Stein in the Circuit Court. In order to make the authorized distribution before Christmas, Mr. Ghingher retained an extra "office crew" and concentrated on the preparation of checks and the addressing of envelopes, it was said. Approximately 33,554 checks, totaling $168,614.77. were mailed according to officials connected with the commissioner's office. Attorneys Get $10,000 In addition, the receiver paid $10,000 in partial payment on account to attorneys representing him in the receivership proceedings. Judge Stein authorized the payment, which is for services rendered since August 12. 1932, the date the bank failed. Further legal proceedings resulting from the failure of the bank, formerly headed by Webster Bell, are scheduled for Tuesday when Judge Stein will hear claims of set-off of depositors of the institution. claims of preference, and other claims, attorneys announced yesterday. A few depositors did not receive checks yesterday, according to John E. Semmes, speaking through William D. Macmillan, of his office, because of questions concerning indebtedness of the depositors to the bank. Direct Accounting No auditor's account in connection with the distribution has been filed, because, it was said, under new law Bank Building. Later it was disclosed amount to $3,372,295.46, it was said. passed by the last Legislature the that arrangements had been made to Before making the five per cent. disBank is authorized to withhold sufficient funds to take care tribution, the receiver had on hand make such an accounting directly, of any deficiency in the event of a $281,296.80, according to figures rewithout employing outside uditors. mortgage foreclosure. leased early in December. Attorneys pointed out that yester- Three Months' Notice day's distribution, which was the first Completes Lecture Series After the mortgage became due paid by the receiver, was made without Chief Judge Samuel K. Dennis dethrough default, it was pointed out, a fear or prejudice to anyone's rights. livered the last of a series of lectures method of amortization was worked At the time Judge Stein authorized before the Young Men's and Young the distribution, it was revealed that out with the mortgagee whereby the Women's Hebrew Association at 8.30 although the receiver had sufficient mortgagee was to have three months' notice before any distribution to P. M. yesterday in Room at the orfunds to make the payment, arrangecreditors was made. ganization's building, at 305 West ments had to be made with the holdTotal deposits in the Park Bank Monument street. ers of $575,000 mortgage on the Park

16. January 4, 1934 The Evening Sun Baltimore, MD

Article from The Evening Sun, January 4, 1934

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BELL TESTIFIES IN PRISON GARB ON 25 CLAIMS Former Park Bank Head Guarded During Hearings REVIEWS ACTIVITIES PRECEDING CLOSING Plaintiffs Seek Preferences And Set-Offs In Suits Webster Bell, wearing the prison garb requisite during the three-year Penitentiary term he is serving, today was brought, under guard, the Courthouse, he testified before Judge Charles F. Stein in the Circuit Court at hearings on about twentyfive of and of the Park Bank, which Bell formerly for preferences and set-offs. The condition of the bank prior its final closing on August 11, 1932, and the difficulties which Bell and 'other officials met to prevent the necessity of the bank's closing and going into receivership, were discussed in his testimony. Bell revealed that heavy "silent" run had begun shortly after the death of John P. Baer, director, approximately two weeks before the bank closed. Support Withdrawn The Clearing House had been taking care of the Park Bank's debits for some time before its officials notified the bank's officers on the afternoon of August 11 that could not continue to do so, thereby causing the bank's officers to place the institution in the hands of the banking One of the cases which preferwas sought was the petition John F. Heath, through Bernard Flynn, attorney, for the return of the $2,500 with which he opened new count after banking hours on the last day the bank was open, but before the Clearing House took its final action. Heath's petition claimed the amount was accepted by Bell himself, and that the account was opened "upon the SOlicitation of an officer" of the bank. Widow's Claim Heard Another case involved preference claim of Mrs. Alta Barker, widow, through Hilary W. Gans, attorney, in connection with $14,000 trust check which she attempted to have cashed

17. January 5, 1934 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, January 5, 1934

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CONVICTED BANKER CALLED TO TESTIFY Webster Bell, Former Head Of Park Bank, Under Guard At Claims Hearing DRESSED IN PRISONGARB Court Hears Of Silent Run On Institution Following Death Of John P. Baer Webster Bell, former president of the defunct Park Bank, yesterday was brought under guard from the Penitentiary where he is serving a threeyear term, to the City Court to testify before Judge Charles F. Stein in connection with set-offs being claimed by depositors and customers of the bank. Dressed in the gray prison garb of the institution in which he is confined, Mr. Bell answered questions concerning the condition of the bank prior to its closing August 11. 1932, and of the steps he and other directors had taken to prevent it going into receivership. Reveals Story Of Run He revealed that there had been silent run on the bank shortly after the death of John P. Baer, director, few weeks before the institution closed. He indicated also that the Clearing House had taken care of the bank's debits for a while, but later had notified its officials that it could not do so longer. Bank Needed $250,000 If the officials of the Park Bank could have raised $250,000 before the bank closed, the Clearing House might have carried the bank's debits longer, it was said, but being unable to do so, the directors voted to place the institution in the hands of the bank commissioner. About twenty-five claims of set-off or of preference were assigned for hearing before Judge Stein yesterday When hearing cases in connection with the Park Bank receivership, he presides as of the Circuit Court. Chicago Artist Seriously III Charleston, S. C., Jan. (P)-John D. W. Norton, Chicago artist and winner of the New York Architectural League gold medal in 1932 for the best American mural, is seriously ill here Physicians hold little hope for his recovery.

18. November 2, 1934 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, November 2, 1934

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PLEDGES GOOD APPOINTEES FOR OFFICES Expects To Choose Men Of Only Highest Qualifications OBJECTS TO GIVING JOBS FOR FAVORS Candidate Wants Practical Insurance Man As Commissioner (Continued from Page 24) failure upon the part of the Bank Commissioner's office to meet the situation which confronted the country immediately after the Presidential election. "However, an examination of the record discloses that over period of years prior to that time, case after case arose which should not only have put the Bank Commissioner upon otice, but should have been warning to the Chief Executive of Maryland, that steps should be taken 'then and at once to protect and safeguard the depositors in the banks. Not Matter Of Politics "It can make no difference whether these banks were officered by gentlemen who are affiliated as Republicans or Democrats. That should not enter into the question. Futhermore, am not, in any sense of the word, condemning the management of all banks. am directing my remarks against certain banks which have heretofore termed the 'political banks. If it had not been for the dismal failure of these banks, the situation in Maryland would not and could not have been so disastrous to the general public. "On December 13. 1930, the Chesapeake Bank of Baltimore was placed in the hands of the State Bank Commissioner as receiver. The record of that proceeding shows the grossest sort of negligence on the part of the Bank Commissioner and bank examiners, in permitting that institution to continue in the manner in which had been conducted. According to the official examination which was reported in those proceedings in the Circuit Court No. of Baltimore city, it appears that the reserves of this bank, required by law, were exhausted." Bank Runs Are Cited "At that time great fear was entertained and wide disseminated that the Park Bank was in bad condition. So acute was this situation, you will that there were great runs on the Park Bank and some other banks in the city of Baltimore, including the Union Trust Company. "This condition itself should have been notice to the Chief Executive of this State that the office of the Bank Commissioner of Maryland was not functioning as it should. In spite, however, of these warnings and the repeated instances of remissness in the discharge of his duties as the Bank Commissioner of Maryland, he was, nevertheless, continued in office. "It must be remembere that shortly after the failure of this bank the Legislature Legislature by the present State Democratic machine, but there was no voice raised in protest, nor single line of remedial legislation enacted. Then came more rumors which involved the Union Trust Company and the Baltimore Trust Company, so that great runs were made upon both of these institutions. Unremedied, He Says "Still, the face of this, with knowledge which the Chief Executive must be charged with, of the inefficiency of the Bank Commissioner's office, the office was permitted to be carried on under the administration of the same

19. November 9, 1934 The Evening Sun Baltimore, MD

Article from The Evening Sun, November 9, 1934

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Broening, Others In Park Bank Suit Receiver Seeks To Collect $75,000 On Mortgage Given To Bank State Bank Commissioner John J. Ghingher, as receiver of the Park Bank, today filed suit in the Baltimore City Court, asking $75,000 from former Mayor William F. Broening, John T. Donohue, Thomas J. Donohue, William H. Gontrum, Lee B. Tucker and Margaret M. Donohue, in connection with a mortgage given to the bank. Mr. Broening and other defendants had signed mortgage agreement executed in 1930 from the Donohue Hilton Company as mortgagors to the Park Bank, was alleged. Mr. Broening was one of the directors of the company and Thomas J. Donohue was president, was said. The receiver's suit alleged that the mortgage debt matured in 1931 and remains unpaid. A statement filed with the proceedings gave the original of the mortgage debt at $40,000, plus interest of $9,980 up to last November