Western Maryland Trust Company

Bank Information

Episode Type: Suspension → Reopening
Bank Type: trust company
Start Date: November 30, 1933
Location: FREDERICK, Maryland (39.414, -77.411)

Metadata

Model: gpt-5-mini
Short Digest: e4721784

Response Measures

None

Description

Western Maryland Trust Company was created as the reorganized replacement for the defunct Central Trust Company (which failed to open Sept 3, 1931). No run is described for the new institution; articles describe its formation (Nov 1933) and opening for unrestricted business (Aug 9, 1934). Classified as a suspension of the predecessor and reopening under a new bank.

Events (2)

1. November 30, 1933 Other

Newspaper Excerpt: The capital and surplus of the new institutions will be as follows: Western Maryland Trust Company, Frederick City, Capital, $100,000, surplus, $20,000; ... The reorganization will be effected by the Peoples Liquidating Corporation ... to which all assets of the Central Trust Company will be finally assigned
Source: newspapers

2. August 9, 1934 Reopening

Newspaper Excerpt: Five independent banks arose today from the wreckage of the Central Trust Company of Maryland and their doors opened for unrestricted business. The Western Maryland Trust Company replaced the main office of the Central Trust Company here
Source: newspapers

Newspaper Articles (3)

1. November 30, 1933 Montgomery County Sentinel Rockville, Gaithersburg, MD

Article from Montgomery County Sentinel, November 30, 1933

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Article Text

New Banks In 6 Towns To Replace Central Trust (Cnotinued from page 1) is believed to be the soundest and for the best interest of all concerned, according to its proponents. It provides that upon reorganization the Central Trust Company "discontinue all its branches" and that the six new banks under local management and control be opened for business. The capital and surplus of the new institutions will be as follows: Western Maryland Trust Company, Frederick City, Capital, $100,000, surplus, $20,000; The Walkersville State Bank, The Midletown State Bank, Sykesville State Bank, Poolesville State Bank and Monrovia State Bank, each to have capital of $50,000 and surplus of $10,000. All will be under entirely new management and it is hoped to have at least some of them reopened within six weeks. The reorganization will be effected by the Peoples Liquidating Corporation which was organized by a group of depositors of the Central Trust Company, and to which all assets of the Central Trust Company, will be finally assigned after a dividend in cash of approximately five per cent is paid to the depositors of the Central Trust Company at the time of the opening of the new institution. A cerificate of beneficial interest will afterwards be issued to each depositor, as shown on the books of the Central Trust, which shall entitle the holder to a pro rata share of all the assets as they are liquidated, to be distributed from time to time as the collections justify. The capital and surplus of the new institutions will be subscribed and paid for in good bankable assets of the former Central Trust Company to be sold by the Peoples Liquidating Corporation in exchange for the capital stock of the new institutions, which entire capital stock will be owned by the corporation except the directors' qualifying fees. The business of the Peoples Liquidating Corporation will be managed by twelve directors, one of whom is Arthur C. Brown, of Sykesville. The others named are W. Clinton McSherry, Ernest L. Shriv1 er, Claude Wilt, John W. Holter, Howard Spurrier, Upton Grossnickle, Albert S. Bitler, Walter Burrall, William J. Grove and Albert L. Hauver. They will serve until the third Monday in January, 1935. On that date, and annually thereafter, twelve directors will be elected by the holders of certificates of beneficial interest.

2. August 9, 1934 The Daily Times Salisbury, MD

Article from The Daily Times, August 9, 1934

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Article Text

5 NEW BANKS NOW REPLACE CENTRAL TRUST Institutions Are Opened In Western Maryland From Wreckage of 5-County Institution STOCKHOLDERS TO GET SIX PER CENT Another Sixteen Per Cent Will Be Paid By Defunct Bank On Order of The Court Frederick, Md., Aug. 9-(AP)Five independent banks arose today from the wreckage of the Central Trust Company of Maryland and their doors opened for unrestricted business The openings brought to seven the number of banks that have broken away from the defunct institution. The Western Maryland Trust Company replaced the main office of the Cantral Trust Company here while the Valley State Bank of Middletown, Poolesville Bank, Sykesville State Bank and Walkersville Bank replaced branches in those communities. Previously the mergers of the People's Bank of Smithsburg and the Washington Trust Company of Ellicott City with the Central Trust Company had been dissolved by orders of Circuit Court. Other branches of the defunct institution were located at Monrovia, Maersville, Thurmont, Union Bridge and Emmitsburg. With the opening of the five new Banks, dividends totaling about $600,000 were paid today on deposits in the Central Trust Company, by order of the court. Further dividends may be realized, it was intimated. Dividends totalling five dollars or less are being made to depositors in communities where new banks are not being opened, were paid by check. The other depositors in the former concern were credited with their dividends in the nearest new bank. Some 166 former depositors opposed the recorganization plans for the defunct bank. The court directed that these dissenters be paid their six per cent, today and that the remaining sixteen per cent. due them to close out their accounts be retained by the State Bank Commissioner, who acted as receiver, subject to the Court's further order. The central Trust Company, with its eleven branches in Montgomery, Carroll, Howard and Frederick counties, failed to open their doors for business on Sept. 3. 1931. The decision to close had been reached at meeting of the board of directors the previous afternoon for the purpose of protecting depositors and stackholders. The business depression was blamed for the closing by the bank's president, Emory L. Coblentz. He said the depression had affected the value of securities and real estate, placing a large proportion of the bank's assets in "frozen" condition. counties. He was acquitted in Fredas the "Miserable publicity' concerning Coblentz connection with the investigation of the affairs of a Washington banking concern. He said the connection served to disturb public confidence and cause a seepage of deposits. George W. Page, then State Bank Commissioner, who took over the affairs of the bank as receiver, said the institution's condition "was brought about by the institution's having a very large commitment in real estate outside of Maryland which is illiquid at the present time and cannot be realized upon." Coblentz, with four other officials of the bank, was subsequently indieted on banking charges in Frederick Montgomery, Howard and Carroll today in the family mausoleun in erick. The charges were guashed in Montgomery and a conviction on a Howard county charge was overruled by the Court of Appeals. Indictments are still pending in Howard and Carroll counties.

3. October 25, 1934 The Baltimore Sun Baltimore, MD

Article from The Baltimore Sun, October 25, 1934

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Article Text

NEW BANKS NOW FUNCTION COUNTIES organization Of Half Dozen Institutions OTHER CONCERNS STILL RESTRICTED Two Of These Are Expected To Reopen In Near Future This the second of three articles by Mr. Armstrong, financial editor of The Sun, dealing with the State banking situation. By Completing plans of reorganization the current fiscal year of the banking department which started February twelve reorganized banks located in the counties of Maryland again performing normal functions in their communities. These banks are outgrowths of the of the Baltimore County Bank, Towson: the Central Trust Company. Frederick: the Lonaconing Savings Bank. Lonaconing: the Citizens Bank, Keedysville; the Middletown Bank, Middletown, and the Parkville Parkville. Operated Under Restrictions Prior to reorganization. these banks, with the exception of the Central Trust, had been operating since the banking holiday March. 1933. under restrictions. provided under Chap46 of the Maryland emergency banking The Baltimore County Bank was reorganized and new banks were formed April 12. The three new banks are the Bank of Baltimore County, Towson; the Randallstown Bank, Randallstown. and the White Hall Bank, White Hall. The old Baltimore County Bank is being liquidated. Five New Banks Formed plan for reorganization of the Central Trust Company of Maryland, Frederick, was approved and made operative August Five banks were formed-the Western Maryland Trust Company, Frederick; Valley State Bank, Midthe Sykesville State Bank, the Walkersville Bank and the PoolesBank. The receiver for the Central Trust Company, time of reorganization, released six per cent. deposits to those assenting to the plan Continued on Page Column