8468. Brunswick Savings Bank (Brunswick, MD)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 18, 1910
Location: Brunswick, Maryland (39.314, -77.628)

Metadata

Model: gpt-5-mini
Short Digest: bea31618

Response Measures

None

Description

Bank was closed by the Deputy State Banking Commissioner after an examination revealed discrepancies and irregular bookkeeping. Receivers were appointed and the bank remained closed with distributions made by receivers; later legal actions and sales of the building followed. No contemporaneous run is described in the articles.

Events (6)

1. November 18, 1910 Receivership

Newspaper Excerpt: Following the examination ... made application to Judge John C. Motter for the appointment of receivers pending an investigation ... John C. Motter ... and John S. Newman have been appointed receivers by the Court under bond of $50,000.
Source: newspapers

2. November 18, 1910 Suspension

Cause: Government Action
Cause Details: Deputy State Banking Commissioner ordered discontinuance after a recent examination revealed irregularities, discrepancies and loose bookkeeping.
Newspaper Excerpt: Brunswick Savings Bank Closes Doors. Deputy State Banking Commissioner ... ordered a discontinuance of business of that institution, until a full examination of its affairs could be made
Source: newspapers

3. December 24, 1910 Other

Newspaper Excerpt: BRUNSWICK BANK IS $70,000 SHORT ... difference of $70,000 between liabilities and assets. ... liabilities consist of about $235,000 in deposits; assets about $165,000 ... loose bookkeeping methods and neglect to call in notes long overdue ... responsible for the trouble -- receivers' accounting and insolvency estimation
Source: newspapers

4. August 18, 1911 Other

Newspaper Excerpt: The court has granted permission to the receivers of the Brunswick (Md.) Savings Bank to make a distribution of 33 1-8 per cent to depositors.
Source: newspapers

5. December 15, 1911 Other

Newspaper Excerpt: Another Payment to Brunswick Depositors ... Receivers ... announced that another distribution will be made to depositors after Dec. 19 ... creditos will then receive a payment of 25 per cent., which with the 33 1/3 per cent., distributed some weeks ago, makes a total of 58 1/3 per cent.
Source: newspapers

6. July 5, 1912 Other

Newspaper Excerpt: The closed Brunswick Savings Bank was leased by Government officials and will be the town's new postoffice. It ... was recently sold by receivers for $8,150.
Source: newspapers

Newspaper Articles (12)

1. November 18, 1910 The Citizen Frederick, MD

Article from The Citizen, November 18, 1910

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Brunswick Savings Bank Closes Doors. Deputy State Banking Commissioner of Motter the as affairs a result of the of a Brunswick recent examination Savings Bank, ordered a discontinuance of business of that institution, until a full examination of its affairs could be made; when interviewed relative to the matter he said: He was unable to give the amount of loss or precisely when the discrepancy occured. Mr. William Schuaufler, who has been no could cashier give since the idea organization how the irregularities of the bank, crept into the accounts. He was under the care of a physician. Besides Mr. Schnauffer there are employed in the bank two girls and one bookkeeper. The closing of the bank comes as a great surprise in banking circles. The Brunswick bank was organized in 1892 with nine directors. Although no statement has ever been issued it has always been thought the bank was accumulating a surplus along with the healthy growth of deposits. It IS known that the business of the bank has grown considerably. The directors of the bank at present are Dr. A. G. Horine, Messrs, F. E. Alder and William Schnauffer, and it is said they have never held a meeting. The bank was organized when there was no banking law and it is said the methods used in bookkeeping were very loose. There were no stockholders or weekly deposits. The closing of the bank is the result of the new banking law, passed at the recent legislature. The savings banks under it are required to be examined the same as national banks which formerly was not required. Following the examination of the assistant Bank Examiner. Messrs: A. G. Horine, F. G. Alder and wife, and Wm. L. Gross made application to Judge John C. Motter for the appointment of receivers pending an investigation of complications in the bank's accounts, and Messrs. John C. Motter, of I., and John S. Newman have been appointed receivers by the Court under bond of $50,000. The applicants for the appointment of receivers, Messrs. Arlington G. Horne, Frank G. Alder and wife, and William L. Gross, have the following sums deposited in the bank respectively: about $500 non-interest-bearing deposits; about $3300 interest-bearing and between $600 and $700 non-interest bearing deposits; and about $750 of non-interest bearing deposits.

2. December 24, 1910 Martinsburg Herald Martinsburg, WV

Article from Martinsburg Herald, December 24, 1910

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BRUNSWICK BANK IS $70,000 SHORT Business of Financial Institution Run in a Haphazard Way-May Pay Fifty Cents on Dollar. John S. Newman, one of the receivers of the closed Brunswick Savings Bank, approximated a statement showing a difference of $70,000 between liabilities and assets. The approximation was based upon a month's hard work by two receivers and an expert acountant, the final statement, Mr. Newman thinks which will be made public in a few days, will practically make no change. Delay in making a statement was beginning to cause tension in the town. The jiabilities consist of about $235,000 in deposits. The assets are about $165,000, as follows: Notes, $139,300; cash on hand, $14,000; bank ing house and adjoining building, about $12,000. Of the notes, about $32,00 is secured by mortages. The bank owned on bonds, but had a certificate for several shares of stock in a Frederick bank. About $20,000 is due the bank in back interest, some of which has been running since it organized 18 years ago. This, it is estimated will keep the assets within the approximation, as some of the notes will be difficult to realize upon. The bank carried about 750 notes, a very large majority being under seal. Apparently doing business at a loss, loose bookkeeping methods and neglect to call in notes long overdue with interest unpaid are declared responsible for the trouble. No one in Brunswick suspects Cashier Schnauffer and not a trace has been discovered of speculation on his part. It had been the opinion of many, especially the largest depositors, that conditions would probably right them selves, but with the past two days the fact has become generally known that the bank is heavily involved, and many will lose. Mr. Newman thinks it will pay about 50 cents on the dollar, with a possibility of 60 to 70 per cent. All, he says, depends upon what can be realized upon the notes.

3. January 7, 1911 Martinsburg Herald Martinsburg, WV

Article from Martinsburg Herald, January 7, 1911

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# TO END BANK Permanent Receivers Asked By Firm There-Smith And Carlisle Wants Action In Court. From The World of Friday: A new turn among creditors of the Brunswick Savings Bank took place yesterday, when the firm of Smith & Carlisle and others filed a bill in court asking that the bank be dissolved as a corporation and that permanent receivers be appointed to take charge of its affairs and liquidate its assets. The attorney named in the bill is former chief Judge Glenn H. Worthington. Following the closing the bank by Deputy State Bank Examiner John C. Motter the Court appointed Mr. John S. Newman and Millard F. Shafer temporary receivers. Under their direction the affairs of the bank were gone over by an expert accountant and found to be involved to the amount of about $70,000. No statement has yet been sent to the receivers from the figures submitted by the accountant, though it is expected at any time. As soon as it arrives it will be submitted to the Court, along with a petition asking for permission to turn the assets into cash to make a pro rata distribution to depositors. The new petition, however, alleges that the bank in insolvent and asks to have its charter dissolved, the appointment of permanent trustees and points out methods of procedure. The firm of Carlisle & Smith, whose names appear in the bill, have deposits amounting to $4,000 in the bank.

4. April 7, 1911 The Citizen Frederick, MD

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Brunswick Savings Bank Depositors File Claims. Claims of nearly $150,000, running from small amounts to $9,000, have been filed in the Clerk's office against the defunct Brunswick Savings Bank. In many cases the amounts represent the life savings of hard-working persons. Since notice from the receivers that all claims must be filed at the Court House before the first distribution of the 25 per cent. can be made about 37° depositors out of à total of more than 1,000 have-filed their claims. As everyone in town is anxious to get what is coming to him as soon as possible it is expected that there will be a rush to file claims this week.

5. May 13, 1911 Martinsburg Herald Martinsburg, WV

Article from Martinsburg Herald, May 13, 1911

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DEPOSITORS DISAPPOINTED. Expected First Payment By Brunswick Bank Postponed. Brunswick, Md., May 11.-Hundreda of depositors of the defunct Brucaswick Savings Bank are dismayed over the prospect of long proceedings in court before the first distribution of deposits. It was hoped that the initial payment of 25 per cent. was close at hand, but proceedings were begun which, it is understood here, will delay matters for am indefinite time. Since last December more than $230,000, chiefly belonging to residents of this place, has been tied up. Nearly two months ago announcement was made that sufficient funds had been collected by the receivers to pay depositors 25 per cent. of their accounts. This crumb of comfort was looked forward to with expectation, and many thought the first payment would be made in a few days. Last right, however, the situation seems changed. Those who appeared in court yesterday seem to think the matter will eventually be taken to the Court of Appeals.

6. August 18, 1911 Evening Star Washington, DC

Article from Evening Star, August 18, 1911

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The court has granted permission to the receivers of the Brunswick (Md.) Savings Bank to make a distribution of 33 1-8 per cent to depositors.

7. September 29, 1911 The Citizen Frederick, MD

Article from The Citizen, September 29, 1911

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Treasurer Schnauffer Under $5,000 Bail. William Schnauffer, treasurer and head of the closed Brunswick Savings Bank, was arrested at his home on Saturday last charged with embezzlement and exhibiting false and fraudulent papers to Deputy Bank Examiner John C. Motter, of 1. He was brought to this city, taken before the court and released by Judge Urner on $5,000 bail, $2,500 in each case. His brother-in-law, Dr. Levin West, became his bondsman. The arrest was the outcome of an investigation by the late grand jury. An indictment was returned and a warrant was issued by the clerk of the court for his arrest It was served by Deputy Sheriff Myers, of Brunswick, who found him at home. The arrest became known soon after the warrant was served. Mr. Schnauffer immediately notified his family and Dr. West and the deputy came to Frederick. During the proceedings Schnauffer was nervous and seemed under a heavy strain. After being released he returned to Brunswick The arrest involves Schnauffer in the failure of the bank. which closed its doors last December. It is charged that upon being confronted by Examiner Motter with irregularities he exhibited a paper and made statements purporting that the bank was solvent, and that the irregulariAt ties could be corrected in a few days. his request the bank examiner allowed him a week to correct the trouble. and in the meantime a number of large deposits are said to have been made. The irregularities, however, could not be corrected, but became more serious as the investigation progressed. The charge of embezzlement is based upon overdrafts which Schnauffer is said to have allowed It. is understood that the amount specified is $30. His friends say he is innocent and that he will be able to clear himself of the charges. They ascribe the failure entirely to careless business methods and overconfidence in lending cash on notes. It is known that his own family lost with other depositors and since the failure he has made over to the trustees what little property he had in his own name. At the time the bank closed there were deposits amounting to $230,000. Receivers John S. Newman and Millard F. Shafer have made a distribution of 33 1/3 per cent. to depositors, with prospects of finally paying 50 per cent. Following the failure an expert accountant was several weeks untangling the bank's affairs. Between 700 and 800 notes were found where money had been loaned and no attempt made to collect the interest. In some cases the notes were out of date. Schnauffer's personal account was overdrawn to a large extent. This was due to having given checks under his own indorsement for all expenses connected with the business. Nothing has ever been found to judicate that he misappropriated a cent. The careless method f conducting the bank was disclosed by the new savings bank law. Much sympathy is expressed for Schnauffer. He came to Brunswick from Baltimore 18 or 20 years ago and established the bank. He took a prominent part in the advancement of the town and was generous to its citizens. Last year mention was made of his name as a candidate for Congress, but he declined to run. He is a member of the Episcopal Church, is married and has four children. Montgomery County Matters. The will of Col. Augustus W. Dorsey, the Confederate soldier who died recently at his home, near Brookeville. this county. It has been admitted to probate here. disposes of an estate valued at about $10,000, the beneficiaries being relatives of the testator's wife, who died several years ago. It gives $1,000 each to Margaret Dorsey Brightwell, Mary Brightwell. John Brightwell and Ruth Owens, of Washington; Lucy Dorsey. of Baltimore, and Margaret O. Magruder. of this county. The sword and pistol used by Colonel Dorsey during the war are left to Frank Dorsey, of Baltimore. The resi due is bequeathed to Margaret Dorsey Brightwell and Mary Brightwell. Leonard I. Weer. of Brookeville, is made executor. King's Distillery, at King's Valley, this county. was destroyed by fire abont IO o'clock Friday night, entailing a loss of about $5,000, only one third of which was covered by insurance. By hard work the flames were kept from spreading to warehouses 50 yards away, containing nearly of 1,000 barrels of whiskey. The cause be the fire is not known. The distillery longed to John R. Lewis, a grandson of the late Luther King, who conducted the business for many years.

8. September 29, 1911 The Citizen Frederick, MD

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# CIRCUIT COURT. Court convened on Monday morning, the 25th inst., and the criminal docket was taken up, Judges Motter and Urner presiding. The criminal docket for this term is comparatively short, and as many of them charged with the more serious offenses have pleaded guilty, the trial of the cases on the docket promises to take much less time than was expected a week ago. Indicted and brought into court to anawer a charge of gambling and betting on races at the age of 83, was the fate of J. C. Meddinger, who appeared in court here, and plead guilty, to the charges against him, and was fined $200 and costs. He was unable to pay the fine, and upon the request of his counsel, Mr. William P. Maulsby, was given 30 days in which to raise the money. Lawrence Gray, charged with passing a forged check on Victor Kaplon, of Brunswick, this county, was taken before the court and plead guilty. He was at once sentenced to three years in the penitentiary. Charles M. R. L. Mokomes, a Russian, aged about 24 years, charged with the larceny of some clothing from a porter on a Pullman car, while in the railroad yards in Brunswick, was tried before the court. The testimony showed that after taking the clothing the Russian at once put it on and was wearing it when he was arrested. He was given three years in the House of Correction. Twenty years in the Maryland penitentiary was the sentence imposed upon Hanson Dorsey on Saturday afternoon, who pleaded guilty to the charge of attempting to assault Mrs. Della Stephens, residing a short distance east of this city. The attempted assault took place on August 15th, and a few days afterwards Dorsey was taken to Baltimore by Sheriff Grimes, who feared an attempt might be made to lynch the negro. When Sheriff Grimes returned from Baltimore, to which place he took Edgar Shawen, who had escaped from him two days before, he brought Dorsey along back. The matter was kept very quiet, only the court, State's Attorney, and the few persons around the jail, knew of Dorsey's presence in the city. He was taken into the Judge's chamber, on Saturday afternoon, pleaded guilty and was given 20 years in the penitentiary. Sheriff Grimes left at once with his prisoner. On the way down Dorsey remarked to Sheriff Grimes that he thought that he had been given an awfully long term. George R. Keefer was tried before the court upon the charge of stealing a stove and a quantity of brass from the Baltimore and Ohio Railroad. He was found guilty upon the charge of stealing the stove, and not guilty of the larceny of the brass. He was given six months in the House of Correction. Wm. Kerns, who was indicted for house breaking, was found guilty and sentenced to the penitentiary for four years. Samuel Lee, colored, who was indicted for the larceny of, a coat from Wm. Diggs, was found not guilty. H. Dorsey Etchison appeared for the traverser. The Brunswick Furniture Company must pay an over draft of $8,696.22, to the receivers of the Brunswick Savings Bank. James Abrecht, who was indicted for indecent exposure, was found guilty. He was declared insane. S. A. Lewis appeared for Abrecht. Wm. Philips, indicted for killing John Johnson, colored, during the past summer. Johnson came here from Baltimore an excursion. He was acquitted by a jury. Manantha Hoover pleaded guilty to the larceny of a bicycle. He was paroled on the promise of good behavior. Attention Central Committee. Registration is October 3 and 10. Look up your new voters, those who should have removal certfi-cates, also those who are stricken off and are entitled to vote in other parts of the county or State. Duvall-Ritchie Wedding.

9. September 29, 1911 The Citizen Frederick, MD

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Treasurer Schnauffer Under $5,000 Bail. William Schnauffer, treasurer and head of the closed Brunswick Savings Bank, was arrested at his home on Saturday last charged with embezzlement and exhibiting false and fraudulent papers to Deputy Bank Examiner John C. Motter, of I. He was brought to this city, taken before the court and released by Judge Urner on $5,000 bail. $2,500 in each case. His brother-in-law, Dr. Levin West, became his bondsman. The arrest was the outcome of an investigation by the late grand jury. An indictment was returned and a warrant was issued by the clerk of the court for his arrest It was served by Deputy Sheriff Myers, of Brunswick, who found him at home. The arrest became known soon after the warrant was served Mr. Schnauffer immediately notified his family and Dr. West and the deputy came to Frederick. During the proceedings Schnauffer was nervous and seemed under a heavy strain. After being released he returned to Brunswick The arrest involves Schnauffer in the failure of the bank. which closed its doors last December. It is charged that upon being confronted by Examiner Motter with irregularities he exhibited a paper and made statements purporting that the bank was solvent, and that the irregularities could be corrected in a few days. At his request the bank examiner allowed him a week to correct the trouble. and in the meantime a number of large deposits are said to have been made. The irregularities, however, could not be corrected, but became more serious as the investigation progressed. The charge of embezzlement is based upon overdrafts which Schnauffer is said to have allowed It is understood that the amount specified is $30. His friends say he is innocent and that he will be able to clear himself of the charges. They ascribe the failure entirely to careless business methods and overconfidence in lending cash on notes. It is known that his own family lost with other depositors and since the failure he has made over to the trustees what little property he had in his own name. At the time the bank closed there were deposits amounting to $230,000. Receivers John S. Newman and Millard F. Shafer have made a distribution of 33½ per cent. to depositors, with prospects of finally paying 50 per cent. Following the failure an expert accountant was several weeks untangling the bank's affairs. Between 700 and 800 notes were found where money had been loaned and no attempt made to collect the interest. In some cases the notes were out of date. Schnauffer's personal account was overdrawn to a large extent. This was due to having given checks under his own in dorsement for all expenses connected with the business. Nothing has ever been found to iudicate that be misappropriated a cent. The careless method f conducting the bank was disclosed by the new savings bank law. Much sympathy is expressed for Schnauffer. He came to Brunswick from Baltimore 18 or 20 years ago and established the bank. He took a prominent part in the advancement of the town and was generous to its citizens. Last year mention was made of his name as a candidate for Congress, but he declined to run. He is a member of the Episcopal Church, is married and has four children. Montgomery County Matters. The will of Col. Augustus W. Dorsey, the Confederate soldier who died recently at his home, near Brookeville. this county. has been admitted to probate here. It disposes of an estate valued at about $10,000, the beneficiaries being relatives of the testator's wife, who died several years ago. It gives $1,000 each to Margaret Dorsey Brightwell, Mary Brightwell, John Brightwell and Ruth Owens, of Washington; Lucy Dorsey. of Baltimore, and Margaret O. Magruder. of this county. The sword and pistol used by Colonel Dorsey during the war are left to Frank Dorsey, of Baltimore. The residue is bequeathed to Margaret Dorsey Brightwell and Mary Brightwell. Leonand I. Weer, of Brookeville, is made executor. King's Distillery, at King's Valley, this county, was destroyed by fire abont 10 o'clock Friday night, entailing a loss of about $5,000, only one third of which was covered by insurance. By hard work the flames were kept from spreading to warehouses 50 yards away, containing nearly 1,000 barrels of whiskey. The cause of the fire is not known. The distillery be longed to John R. Lewis, a grandson of the late Luther King, who conducted the business for many years. Erederic's

10. December 15, 1911 The Citizen Frederick, MD

Article from The Citizen, December 15, 1911

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Another Payment to Brunswick Depositors Receivers John S. Newman and Millard F. Shafer, of the closed Brunswick Savings Bank, announced that another distribution will be made to depositors after Dec. 19. Dreditors will then receive a payment of 25 per cent., which with the 33 1/3 per cent., distributed some weeks ago. makes a total of 581/3 per cent., of their deposits. At the first distribution, $80,070.04 was paid out. The receivers have since collected $58,618.03 making a total of $138,688.07. When the bank was closed 823 depositors had combined accounts of $218,366.93. The receivers expect to collect enough funds to make another distribution, of perhaps 6 or 8 per cent. I he bank building, said to be worth $8.000 or $10,000 has not been sold. and the question of further collection on notes cannot be estimated. Some are barred by limitation. but in most cases holders have shown a disposition to pay their indebtedness without resorting to law.

11. July 5, 1912 The Citizen Frederick, MD

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Postoffice Building Leased. The closed Brunswick Savings Bank was leased by Government officials and will be the town's new postoffice. It is situated on High street and was recently sold by receivers for $8,150. The new building will increase facilities for hand ling the town's growing volume of mail

12. January 14, 1913 Evening Star Washington, DC

Article from Evening Star, January 14, 1913

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Receivers of the closed Brunswick, Md., Savings Bank were given a verdict Monday of $4,200 by a jury against Victor A. Kapan, a Brunswick merchant. The latter was sued on a number of overdue notes and pleaded limitation.