8469. Savings Bank (Brunswick, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
November 14, 1910
Location
Brunswick, Maryland (39.314, -77.628)

Metadata

Model
gpt-5-mini
Short Digest
4682abb1

Response Measures

None

Description

State-ordered closure after discovery of a shortage in November 1910; receivers were appointed and the bank remained in receivership (hopelessly insolvent) with distributions to depositors over 1911. No run is described in the articles. 'Savings Bank' appears to be a state-chartered savings institution (closed by state bank commissioner).

Events (4)

1. November 14, 1910 Suspension
Cause
Government Action
Cause Details
State bank commissioner ordered the bank closed after discovery of a $10,000 shortage in the cashier William Schnauffer's accounts.
Newspaper Excerpt
The Savings Bank at Brunswick, Frederick County, Md., was to-day closed by order of State Commissioner J. Dukes Downes. This action was taken when a 'shortage of $10,000 was discovered in the accounts of William Schnauffer, the cashier of the bank.
Source
newspapers
2. January 14, 1911 Receivership
Newspaper Excerpt
That the Savings Bank of Brunswick is hopelessly insolvent is the report of John S. Newman and Millard Shafer, the receivers. According to their report the cashier, William Schnauffer, had overdrafts in his personal account to the extent of $26,075.78. Other overdrafts amounted to $12,780.99. (Jan. 14, 1911). (Note: snippet demonstrates receivership report and insolvency.)
Source
newspapers
3. April 8, 1911 Other
Newspaper Excerpt
It was planned to make a first payment of 25 cents on the dollar...the accountant estimated that the shortage will be $56,031.70...319 persons have filed their claims against the bank with the clerk of the Circuit Court for Frederick county. The total amount of the claims already filed reaches almost $140,000. (Apr. 8, 1911). (Note: snippet demonstrates claims filed and planned partial payments to depositors.)
Source
newspapers
4. August 25, 1911 Other
Newspaper Excerpt
For the first time since the Savings Bank of Brunswick went into the hands of receivers, the depositors are receiving part of their money...The assets in hand after deducting the expenses amounted to $80,000 which will be divided among the depositors at the rate of 3333 cents on the dollar. (Aug. 25, 1911).
Source
newspapers

Newspaper Articles (9)

Article from Norwich Bulletin, November 15, 1910

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Article Text

SHORTAGE OF OVER $10,000. Books of the Savings Bank of Brunswick, Md., Examined. Brunswiek, Md., Nov. 14.-A shortage of over $10,000 was revealed today by an examination of the books of the Savings Bank of Brunswick and the bank was ordered closed by the state bank commissioner. The bank was organized in 1892 and has no capital stock. The deposits amount to $200.000. made up mostly of the savings of railroad men and farmers. A. G. Horine is president, but the bank seems to have been run almost entirely by the cashier, William Schnauffer.


Article from The Washington Herald, November 15, 1910

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Article Text

FIND BANK SHORTAGE. State Officials Close Savings Institution Near Baltimore, Baltimore, Nov. 14.-The Savings Bank at Brunswick, Frederick County, Md., was to-day closed by order of State Commissioner J. Dukes Downes. This action was taken when a 'shortage of $10,000 was discovered in the accounts of William Schnauffer, the cashier of the bank. The bank was organized in 1892 and has no capital stock. The deposits amount to $200,000, made up mostly of the savings of railroad men and farmers. A. G. Horine is president, but it seems to have been run almost entirely by the cashier. It is said that there has not been a meeting of the board of directors in the last two years. When the examination was begun a few days ago the cashier disappeared and was not seen again for two or three days. When he returned home he declared he did not know where he had been, and he is now said to be under the care of two physicians.


Article from The Washington Times, November 15, 1910

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Article Text

BANK IS CLOSED BY $10,000 SHORTAGE Maryland Institution Sufferer From Cashier, Who Says "He Can't Remember." BALTIMORE, Nov. 15.-Following the discovery of a shortage of $10,000 in the accounts of William Schnauffer, cashier, the Savings Bank at Brunswick, Frederick county, Md., has been closed by order of State Commissioner J. Duke Downes. The bank was organized in 1892 and has no capital stock. A. G. Horine is president, but the institution, it is said, was run almost entirely by the cashier. Schnauffer disappeared for several days after the bank had begun an exan.ination of his books, and when he returned said be did not know where he had been.'


Article from The Washington Times, January 14, 1911

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Article Text

Hopelessly Insolvent. FREDERICK, Md., Jan. 14.-That the Savings Bank of Brunswick is hopelesslv insolvent is the report of John S. Newman and Millard Shafer. the receivers. According to their report the cashier, William Schnauffer, had overdrafts in his personal account to the extent of $26,075.78. Other overdrafts amounted to $12,780.99.


Article from Martinsburg Herald, January 21, 1911

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Article Text

BANK IS TOTAL WRECK Report Submitted to the Circuit Court at Frederick by Receivers Newman and Shafer. Frederick, Md., January 14.-John S Newman and Millard Shafer, receivers of the Savings Bank of Brunswick, submitted to the court here a report, in which they say that the examination which they have made has disclosed that the bank is hopelessly insolvent, and that its assets are considerably less than its liabilities; just how much less will depend very largely upon the amounts that can be realized upon the hundreds of notes which the bank holds. The receivers say that they have endeavored to ascertain the cause or causes of the shortage which exists and that they found that it is due in a great measure to bad loans, some of it to overdrafts, which were permitted, some of it to a failure to promptly collect notes and interest when the same became due and payable, but the receivers say that the principal causes seem ti be that the bank was being run at a loss. Very few of the notes held by the bank were discounted. Continuing in their report, the "yeceivers say: "The condition of the books at the bank was such that It was impossible to take off a true and correct statement of the amounts due depositors without calling in the passbooks. This was done. The amount SO verified by the special ac ountant was $229,880.07. The total amount not so verified was $4,281.26, thus making a total due depositors of $234,161.33. This does not take into account any interest on deposits, excepte such as had been paid depositors prior to the appointments of receivers." Against these liabilities there was found in the bank notes totaling $137,781.43, most of which are believed to to be collectible, and notes totaling $8,876.21, considered for the most part worthless. The accountant states the amount to be due depositors to be $234.161.33. Against this he puts the following items: Active paper, $136,781.43; 40 shares of the capital stock of the Frederick County National Bank, $600; banking house, etc., $12,000; cash in bank, $28,427.34; interest to January 1, $20,473.47. There were overdrafts in the personal account of William Schnauffer, the cashier, of $26,075.78, and other overdrafts amounting to $12,870.99. The receivers say that the overdrafts in the account of William Schnauffer was due to the fact that he paid certain expenses of the bank by his personal check and charged to his personel account. This account has been running since the bank opened 18 years ago, and the, receivers say that they are unable to say how much of the overdraft is due to this fact.


Article from Martinsburg Herald, April 8, 1911

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Article Text

# Brunswick Bank to Pay That Amount Despite $50,000.00 Shortage. In response to the notice given by John S. Newman and Millard F. Shaffer, receivers for the Savings Bank of Brunswick, Md., of which Wm. F. Schnauffer was the cashier, 319 persons have filed their claims against the bank with the clerk of the Circuit Court for Frederick county. Most, if not all, of these persons were depositors in the bank, and the claims run all the way from a few dollars up to nearly $5,000. The total amount of the claims already filed reaches almost $140,000. When the bank went into the hands of receivers an expert accountant was employed to go over the books of the bank. The accountant called in the passbooks, and from these verified accounts due depositors of $229.880.07. The amount not so verified is $4,281.28 making a total due depositors of $234,161.33. It was found that the assets of the bank consisted of $136,781.43 in notes believed to be good, $8,876.21 in notes believed to be worthless, and real estate in Brunswick worth about $12,000. With money in bank and everything in the way of assets, the accountant figured that the bank had about $198,282.24. This left a deficiency of $35,879.09. To this must be added the overdraft in the personal account of Schnauffer, which amounted to $26,075.78, and other overdrafts of $12.870.99. There was also an overdraft in the interest account. The accountant estimated that the shortage will be $56,031.70. The receivens have been collecting the notes as fast as possible, and already have collected a good portion of the money and have it in hand. Notice has been given the creditors to file their claims, and when this notice expires the first distribution will be made. It is planned to make a first payment of 25 cents on the dollar. The amount to be paid the creditors will be based upon the amount that can be collected on the outstanding notes. If all that is given as good assets by the accountant could be collected the amount depositors would receive would be about 80 cents on the dollar. This is not believed possible, and it is thought that from 60 to 70 cents on the dollar will be paid.


Article from Alexandria Gazette, April 10, 1911

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Article Text

RECEIVES A BLACK HAND LETTER. William Schnauffer, cashier of the Savings Bank of Brunswick, Md., which is now in the hands of receivers, it is said, has received two Black Hand letters. One threatened the destruction with dynamite of the house in which Mr. Schnauffer is now living and also threatened him with death. This letter it is said came through the mail. Another note is said to have been put under the door of Dr. Levin West, a brother-in-law of Schnauffer. with whom Mr. Schnauffer has been making his home since the bank failure. This note also contained a black hand, it is said, and demanded that a sum of money be put under the steps of the Catholic Church in Brunswick and threatened Mr. Schnauffer's life. if the terms of the note were not met. Mr. Schnauffer was the cashier of the Savings Bank of Erunswick from the time of its organization until its failure. He had practically absolute say in the management of the bank's affairs and enjoyed the confidence and respect of the entire population of Brunswick and vicinity.


Article from The Citizen, August 25, 1911

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Article Text

# Make First Payment. For the first time since the Savings Bank of Brunswick went into the hands of receivers, the depositors are receiving part of their money. For sometime past Receiver John S. Newman of Frederick has been busy making out the checks which numbered between eight hundred and nine hundred. The work was completed Tuesday and the checks were sent to the other receiver, Millard F. Shafer at Brunswick, who is busy paying off the claims. According to the audit which was filed during July, there were 814 claims against the bank, representing an aggregate amount of $217,700.41. The assets in hand after deducting the expenses amounted to $80,000 which will be divided among the depositors at the rate of 33⅓ cents on the dollar. As soon as additional notes are collected, another payment will be made but the receivers do not expect that this will be done soon. Receiver Newman still says that a conservative estimate of the amount which will finally be paid is 50 cents on the dollar. If things go right, the bank should ultimately pay more. The people of Brunswick who had money in the bank are delighted over the prospects of receiving some of their money. When the bank went into the hands of receivers last fall, many of the Brunswick people had all their money in the bank and some of them had a hard time during the winter as they were without means.


Article from The Citizen, February 23, 1912

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The sophomore class of the Woman's College, is contemplating an entertainment in the near future to be given for the benefit of the building fund of the college. The class promised a definite amount to the building fund. George Z. Best, the well known conductor of the Northern Central Railroad, whose run is between here and Key-Mar, and who formerly ran from here to Lancaster, will next week take a run between Baltimore and Harrisburg. Mrs. E. P. Gale gave a euchre party at her home, on Clarke Place, in honor of Mrs. Randolph A. Rau. The parlors were appropriately decorated for the occasion. The first prize was won by Miss Lou Potts, and the consolation prize by Mrs. Rau. Refreshments were served. John H. Frazier, proprietor of the Diamond Rink, sold to Owen D. Sherley, of Hagerstown, the piano and all the other equipment of the Diamond skating rink, this city. Mr. Sherley will install the goods purchased in a skating rink in Hagerstown which he has recently erected. A leap year dance was given by a number of young ladies' at Armory Hall. The ladies' acting as escorts, calling for the gentlemen and taking them to the hall. 60 couples participated. Committee on arrangements were: Mrs. F. K. Gilbert, Miss Margarete Dill, Elizabeth Woman and Elizabeth Craigmile. In accordance with their usual custom, Camps, 17 and 79, Patriotic Sons of America, of this city, will attend divine services at the Evangelical Lutheran church on Sunday morning, February 25, at 10.30 o'clock, at which time the pastor, Rev. Ulysses S. S. G. Rupp, will preach a sermon appropriate to the occasion. Contractor Lloyd Culler, of this city, has received the contract for the erection of a large mill for Bowman Brothers, at Germantown, Montgomery county. The mill was recently destroyed by fire. The new mill will be of brick and about four stories high. In all about 200,000 bricks will be required for its construction. H. A. Bitner, a brakeman on the Baltimore and Ohio Railroad, was killed by being struck by an overhead bridge at Shenandoah Junction. Mr. Bitner was a native of Hancock and had just recently taken a run on the Baltimore and Ohio. He was on his third trip out, when the accident that caused his death happened. The Maryland School for the Deaf and Dumb, located in this city, has just issued its 17th biennial report of the President and Board of Visitors to the Maryland Legislature. The report also constitutes the 42nd and 43rd annual of this well known school for the deaf of the State. The school asks $32,000 for each of the years 1913 and 1914, in order to conduct the institution. William Schnauffer, who was the cashier of the Savings Bank of Brunswick, which over a year ago went into the hands of receivers, is endeavoring to establish another bank at Brunswick. It is said Mr. Schnauffer has been asked by his friends at Brunswick to start a bank there in which he should take an active part, and after consulting a number of his friends he has agreed to do so. Residents along the old Lancaster or York road from this city to the Pennsylvania line, near Piney Creek, want the Good Roads Commission to take over the road, and repair the portion which is now piked, and to pike the road from New Midway on to the Pennsylvania line. The portion piked, is what is now commonly termed the Woodsboro pike. Petitions are being circulated asking that the road be purchased. At the Methodist Episcopal church, a meeting was held at which a delegate was elected to the Lay Electoral Conference to be held in the First Methodist Episcopal church, Baltimore, on March 29. Mr. Milton G. Urner was elected as delegate, and Mr. C. Albert Gilson as alternate to the conference. At the conference there will be elected five lay delegates to the General Conference which meets in May in Minneapolis, Minn. A special meeting of the Maryland Classis was held in Trinity Reformed Chapel. The principal item of business taken up was in regard to the reception of Rev. W. C. Sykes to the Jefferson charge, made vacant by the resignation of Rev Wayne H. Bowers. Rev. Sykes came to this classis from Somerset classis, having been pastor of Berlin, Pa., charge. A committee was appointed to provide for the installation of Rev. Sykes. Under the auspices of Rev. A. J. Conlon, a progressive 500 party was given in St. John's Hall, on Monday last, for the benefit of the church. The attendance was large. The following won handsome prizes: Rev. A. J. Conlon, Mrs. F. V. Staub, Misses Florence Schley, Anna Margaret Diffendal, Pauline Diffendal, Louise Schley, Etta Cramer, Margaret Elkins, Lucy Herring, Rose Kennedy; Messrs. Frank V. Staub, Lewis Sponseller and John A. Kennedy. Adam T. Welzenbach, of Baltimore, was elected president of the Maryland State Council Catholic Benevolent Legion at the twenty-ninth annual convention held recently at the Catholic Club Hall, North Charles street. Other officers elected were: Vice president, W. D. Wilson, Hagerstown; chancellor, judge Wm. M Dunn; orator. J. J. Geissler; secretary. E H. Trainor; treasurer. H. P. Goldsborough; marshal, Thos. J. Flanagan; guard, H. C. Rosendale; supreme representatives, Thomas S. Edgar, T. F. Hisky, and Peter Mulcahy; trustees. C. F. Hemelt, J. A. Muth, Jr., Samuel S Bennett, D. J. McGovern and J. J. Carroll. Bishop Corrigan was re-elected chaplain. ### Nation's Inherent Power.