8530. First National Bank (Hagerstown, MD)

View Charter #1431 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
1431
Charter Number
1431
Start Date
September 29, 1921
Location
Hagerstown, Maryland (39.642, -77.720)

Metadata

Model
gpt-5-mini
Short Digest
49259468

Response Measures

None

Description

The bank was closed by U.S. District Court order and a federal receiver (Robert D. Garrett) was appointed on 1921-09-29 pending suit by the Comptroller to revoke its charter for violations of national banking laws. Control was transferred to new investors in early October and the receiver was discharged; the bank reopened mid-October 1921. No bank run or depositor panic is described in the articles.

Events (4)
1. September 29, 1921 Receivership
Newspaper Excerpt
Robert D. Garrett appointed temporary receiver in order to conserve the assets of the bank in the interest of the depositors and stockholders.
Source
newspapers
2. September 29, 1921 Suspension
Cause
Government Action
Cause Details
Federal suit filed by Comptroller seeking revocation of the bank's charter for persistent violation of the national banking laws; court ordered closure and receiver appointed.
Newspaper Excerpt
This bank is closed by order of the United States District Court for the District of Maryland and Robert D. Garrett appointed receiver.
Source
newspapers
3. October 6, 1921 Other
Newspaper Excerpt
Control of the First National Bank of Hagerstown ... passed from the Wingert family to Cyrus F. Flook ... representing W. Bladen Lowndes ... Application for the discharge of the receivorship was granted by Judge Rose ... and the suit was discontinued.
Source
newspapers
4. October 15, 1921 Reopening
Newspaper Excerpt
FIRST NATIONAL OF HAGERSTOWN REOPENS DOORS ... The bank has reopened for business. Judge John C. Rose ... has signed an order withdrawing Robert D. Garrett as temporary receiver.
Source
newspapers

Newspaper Articles (11)
1. September 29, 1921 The Washington Herald Washington, DC
Article from The Washington Herald, September 29, 1921

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Article Text

CAPITAL TRACTION NETS $98,097 FOR MONTH OF AUGUST July's Profits Amount to $113,984 and $102,147 Last Year. OU L OTHER LOCAL NOTES Hagerstown Bank's Charter Threatened in Suit Entered In Baltimore. Capital Traction lines operated at a net income of $95,007 during the month.of August, according to rereceived by the Public Utillties Commission for the period ports receipts yesterday. in question Total amounted to $433,698, while expenses totaled $335,601. These figures compare with $102.147 for the corresponding period one year ago, and with $113,984, which represents the net income for July of the present year. Bank May Lose Charter. A suit was entered in the United States Court at Baltimore yesterday by the United States attorney, in the name of the Comptroller of the Currency, to forfeit the charter of the First National Bank of Hagerstown, Md., for violations of the national banking laws. Pending a hearing of the case, the court appointed Robert D. Garrett as temporary receiver in order to conserve the assets of the bank in the interest of the depositors and stockholders. Acting Comptroller T. P. Kane stated that this bank has been a most persistent violator of the banking laws for the past several years. Its management not only deliberately ignored the intructions of the national bank examiners at each examiantion, but has openly defied the admonitions and warnings of the Comptroller until nothing remained for the Comptroller to to to for revocation the is Kane do but further of apply states bank's the that charter. court this only the second case in the history of the national banking system in which forfeiture proceedings have been instituted by the Comptroller for violations of law. In addition to the agricultural loan agencies previously announced by the War Finance Corporation, the following committee, with headquarters at Atlanta, has been appointed to receive applications from Sanks in its district for advances under the recently enacted Section 24 of the War Finance Corporation act, and to make recommendations as to these advances to the War Finance Corporation: Chairman. John K. Ottley; L. R. Adams, C. W. Skinner, Mills B. Lane, Augustus E. Young. W. F. Coachman, D. M. Lowry and T. L. Wilson. Personal. William D. Hoover, president of the National Savings and Trust Company, returned to his desk yesterday morning after an extended vacation spent in the mountains of West Virginia. Local Securities. Trading on the Washington Stock Exchange failed to emerge from the slump which has been prevalent for the past several days in yesterday's listless period. Washington Gas 5s showed considerable strength, $1.00. face value. selling at 82 and 821/4. Capital Traction 5s failed to change their position, $500 selling at 87% In the stock list 25 shares of Capital Traction sold at 86% Call money ruled at 7 per cent asked, with brokers bidding 5 1/2 per cent. .

2. September 29, 1921 The New York Herald New York, NY
Article from The New York Herald, September 29, 1921

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Article Text

CRISSINGER WOULD TAKE AWAY BANK'S CHARTER Second Case in History of a National Institution. WASHINGTON, Sept. 28.-Revocation of the charter of the First National Bank of Hagerstown, Md., is sought in a suit filed against the bank to-day in the United States Court at Baltimore by Comptroller Crissinger, who alleges "persistent violation of the national banking laws." The action was declared by the Comptroller to be only the second in the history of the national banking system in which revocation of charter had been asked. Pending a hearing Robert D. Garrett was appointed temporary receiver.

3. September 29, 1921 Evening Capital and Maryland Gazette Annapolis, MD
Article from Evening Capital and Maryland Gazette, September 29, 1921

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Article Text

HAGERSTOWN BANK CLOSES ITS DOORS First National Forced To Shut Down By Direction Of Federal Officials (By The Associated Press.) HAGERSTOWN, MD., Sept. 29.--The First National Bank. of Hagerstown, did not open for business this morning, a notice posted on the door of the bank reading as follows: "This bank is closed by order of the United States District Court for the District of Maryland and Robert- D. Garrett appointed receiver." "(Signed) "ROBERT D. GARRETT, "Receiver." Another notice, signed by Mr. Garrett, directed all of those having obligations due or about to become due to the bank to get in touch with him at once. The closing of the bank followed action in the Federal Court of Baltimore City, by Federal Comptroller Crissinger, seeking revocation of the bank's charter. Charges of "mismanagement and persistent violation of banking laws" are the basis, of the suit. Pending a hearing of the case, Judge Rose appointed Robert D. Garrett, of the Comptroller's office at Washington, temporary receiver. No charge of insolvency is made, nor is there the slightest intimation of dishonesty on the part of the officers or employees of the bank. All the county and State tax money collected in this (Washington) county last fall, amounting to $200,000, is in the bank. Some days ago the Board of County Commissioners, through its clerks, notified the bank that $150,000 of this sum would be withdrawn on or about October 1. Receiver Garrett said today that he expected the bank would remain closed until next October 18, the date for the hearing before Judge Rose.

4. September 29, 1921 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, September 29, 1921

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Article Text

Moves to Take Away Charter Maryland Bank Washington, Sept. 28.-Revocation of the charter of the First National Bank of Hagerstown, Md., is sought in a suit filed against the bank today by Comptroller Crissinger, who alleges "persistent violation of the national banking laws." The action, filed in the United States court at Baltimore. was declared by the comptroller only the second in history of the national banking system where it had been necessary to ask revocation of charter. Pending a hearing of the case, Robert D. Garrett was appointed temporary receiver.

5. September 30, 1921 Pueblo Chieftain Pueblo, CO
Article from Pueblo Chieftain, September 30, 1921

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Article Text

FINANCIAL NEWS Pittsburg, Pa., Sept. 29.-Directors of the Pittsburg coal company today announced that the regularly quarterly dividends of 1 1-4. per cent on the preferred stock and 1 1-4 per cent on the common stock hard been declared. Hagerstown. Md., Sept. 29. The First National of Hagerstown did not open for business today. a. notice posted on its doors reading: "This bank is closed by orders of the United States court for the district of Maryland and Rober: D. Garrett appointed receiver is now in charge. Columbus, a Sept. 29. .-Effective October 20. Oble railroads must reduce freight rates on sand. gravel. crushed stone and paving brick approximate. ly 28.5 per cent the Ohio public utilities commission ruled today. Resides the percentage reduction ordered, an additional reduction of ten cents per ton is ordered on paving bricks

6. September 30, 1921 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, September 30, 1921

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Article Text

RECEIVER APPOINTED FOR NATIONAL BANK IN HAGERSTOWN, MD. (By The Associated Press.) Hagerstown, Md., Sept. 29.-The First National bank of Hagerstown did not open for business today, a notice posted on its doors reading: "This bank is closed by order of the United States district court for the district of Maryland and Robert D. Garrett. appointed receiver, is now in charge."

7. September 30, 1921 Arizona Republican Phoenix, AZ
Article from Arizona Republican, September 30, 1921

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Article Text

U. S. Court Closes Bank Of Hagerstown [Republican A. P. Leased Wire] HAGERSTOWN, Hd., Sept. 29. The First National of Hagerstown did not open for business today, a notice posted on its doors reading: "This bank is closed by order of the United States district court for the district of Maryland and Robert D. Garrett appointed receiver, is now in charge."

8. September 30, 1921 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, September 30, 1921

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Article Text

RECEIVER TAKES BANK HAGERTOWN, Md., Sept. 29. -The First National Bank of Havertown did not open for business today, a notice posted on its doors reading: "This bank is closed by order of the United States district court for the district of Maryland, and Robert D. Garrett, appointed receiver, is now in charge."

9. October 6, 1921 Evening Capital and Maryland Gazette Annapolis, MD
Article from Evening Capital and Maryland Gazette, October 6, 1921

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Article Text

HAGERSTOWN BANK HAS PASSED UNDER CONTROL OF OTHER INTERESTS (By The Associated Press.) HAGERSTOWN, MD., Oct. 6.-Control of the First National Bank of Hagerstown in a contract signed late last night, passed from the Wingert family to Cyrus F. Flook. of Myersville, Md., representing W. Bladen Lowndes of the Fidelity Trust and Deposit Company, of Baltimore: John P. Baer, of Hambleton and Company, bankers, Baltimore; Emory L. Coblentz, of the Central Trust Company, of Frederick. Md.: Attorney-General Alexander Armstrong. of Hagerstown, and others. In all the Wingert family held 5,384 shares and the holdings of some of their friends will bring the total of the stock transferred up to about 5500 shares. The bank's capital consists of 10,000 shares. The new owners of the bank will meet this afternoon in this city to elect officers and plan for the re-opening of the bank. Present indications are that Mr. Armstrong will be the president of the bank. The deal must be approved by the Federal Comptroller of the Currency as the bank is now in the hands of a receiver. pending disposition of a suit for the revocation of its charter and alleged violations of the banking laws. Application for the discharge of the receivorship was granted by Judge Rose in the United States District Court here today and the suit was discontinued.

10. October 16, 1921 The Washington Times Washington, DC
Article from The Washington Times, October 16, 1921

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Article Text

FIRST NATIONAL OF HAGERSTOWN REOPENSDOORS Reorganization of Bank Completed by Transfer of Henry Wingert Holdings. HAGERSTOWN, Md., Oct. 15.Reorganization of the First National Bank of Hagerstown, suit for revocation af whose charter was filed recently by Federal authorities. has been completed with transfer of control to Baltimore and Western Maryland interests and the naming of officers and directors. The bank has reopened for business. The officers selected are AttorneyGeneral Alexander Armstrong, president: Cyrus F. Flook, vice-president, and Robert H. McCauley. acting cashier. Mr. Armstrong will continue as Attorney-General until his term expires. . Judge John C. Rose, in the United States District Court, ha3 signed an order withdrawing Robert D. Garrett as temporary receiver. In the transfer of control the shares owned by Henry F. Wingst retiring president, and other members of the Wingert family, estimated at 5,384, were sold to Hambleton and Company and associates. These are W. Bladen Lowndes, Mr. Armstrong and Emory L. Coblentz. The price, which will he fixed by appraisal, is estimated at between $180,000 and $200,000. The directors named are Mr. Armstrong, Mr. Lowndes, Mr. Baer, Mr. McCauley, B. M. Horst, of Hagerstown, and Mr. Flook, who is vice-president of the Central Trust Company of Frederick County.

11. March 2, 1922 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, March 2, 1922

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Article Text

BANK PLEA DISMISSED BY U. S. CIRCUIT COURT Judge Waddill Hands Down Opinion in Case from Hagerstown, Md. Judge Rose Named Receiver. Judge Edmund Waddill, Jr., filed an opinion in the United States Circuit Court of Appeals yesterday, dismissing the appeal of the First National Bank of Hagerstown. Md. from an order by United States District Court Judge John C. Rose. appointing a receiver to preserve the assets of the bank. Dismissal of the appeal was the final step in the bill of equity proceeding begun by Daniel R. Criss. inger, United States Comptroller of Currency, alleging violations of the national banking laws and mismanagement of the bank's affairs by its officials and directors.